Peale v. Marian Coal Co.

190 F. 376, 1911 U.S. App. LEXIS 5369
CourtU.S. Circuit Court for the District of Middle Pennsylvania
DecidedAugust 24, 1911
DocketNo. 55
StatusPublished
Cited by4 cases

This text of 190 F. 376 (Peale v. Marian Coal Co.) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the District of Middle Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Peale v. Marian Coal Co., 190 F. 376, 1911 U.S. App. LEXIS 5369 (circtmdpa 1911).

Opinion

WITHER, District Judge.

The plaintiff, by bill in equity, here seeks relief for an alleged breach of the defendant’s agreement to deliver to him coal from its washery at the Holden Culm Dump, which it undertook to do, in return for money advanced by the plaintiff to lift defendant’s obligations and to enable it to make necessary improvements and developments for the successful operation of its washery.

The complaint sets forth:

That on the 11th day of April, 1907, a contract was entered into, between the plaintiff and the defendant, which, in so far as is considered pertinent, provides as follows:

Now therefore, in consideration of the premisos and of the mutual covenants herein contained, the parlies hereto respectively agree as follows:
The party of the first part agrees to use Ms best efforts to procure a lease from the Hoysradt Estate of its interest in said Holden Bank upon terms as to rate of royalty similar to those contained in said leases from Isaac B. [378]*378Felts now owned' by the party of the second part, and in ease he succeeds in obtaining such ■ lease to transfer the same to the party of the second part in consideration of the issue of twenty-five thousand ($25,000) dollars full-paid and nonassessable capital stock of said party of the second part; it being understood that the capital stock of the party of the second part shall be increased from fifty thousand ($50,000) dollars to seventy-five thousand ($75,-000) dollars for that purpose. The party of the first part further agrees to advance,from timé to time as the same may be required as aforesaid to meet outstanding obligations of the party of the second part twenty-five thousand ($25,000) dollars, and in addition thereto a sum not to exceed ten thousand ($10,0001 dollars to defray the expense of making improvements in said plant and to defray the expense of taking such steps as may seem advisable to protect said bank from destruction by fire by cutting off the portion of said bank that is already on fire.
The party of the second part agrees to accept an assignment of said proposed lease of the Hoysradt interest, provided the terms thereof are satisfactory to it, and to issue to the party of the first part twenty-five thousand ($25,000) dollars of its full-paid and nonassessable capital stock as a consideration for said transfer; to deliver to the party of the first i>art or his assigns the entire output of the culm bank and washery above referred to, not only until the repayment, of the moneys to be advanced hereunder, with interest, but also until the entire exhaustion of said culm bank, including materials deposited hereafter by the Delaware, Lackawanna & Western Railroad Company or its successors or assigns in connection with the operation of the Holden Colliery, except such part thereof as may be sold by the party of the second part under provisions hereinafter contained.
The party of the second part agrees to prepare all the coal to be delivered to the party of the first part as to the sizes, the percentage of impurities and the merchantability and appearance thereof according to the standard of the Delaware, Lackawanna & Western Railroad prevailing in the region where said washery is situated. Railroad weights taken at the scales nearest said washery are to be conclusive between the parties, but upon such weights the usual allowance for water is to be made. The party of the first part shall not, however, be charged for -weight of coal shipped to tide water in excess of the weight of coal found upon the cars as determined by the railroad company’s scales at tide, nor upon line shipments for weights in excess of the weight charged for by the railroad company in their freight bills. All weights shall be taken in tons of 2,240 lbs. The coal may be inspected at the colliery by a competent inspector appointed by the party of the first part, but satisfactory to the party of the second part, who shall be the agent of both parties and whose wages shall be paid by the party of the first part and one-half thereof shall be charged against the party of the second part and deducted from the price realized by the party of the first part upon the sale of said coal. Whenever possible the coal shall be inspected as it comes from the chutes. In ease of disagreement, a test shall be made by taking a bucketful of coal from each end and each side of the ear in dispute and if the coal thus taken shall be found fully up to the standard of the railroad company aforesaid, then said car is to be deemed to have passed the inspection. The party of the first part is not authorized to sell coal that is up to said standard for less than the average tide water price paid by the railroad coal companies under the so-called “sixty-five per cent, contracts.” After the inspection of the coal the party of the second part shall deliver the same to the party of the first part on board ears to be placed at the colliery by the party of the second part, and said deliveries shall be made in approximately equal monthly proportions. The party of the first part shall not be held responsible for failure on the part of the railroad or transportation companies to furnish facilities for transporting the coal, nor for failure to sell the entire output when prevented from so doing by causes beyond his control. The party of the first part agrees, however, to render such assistance as is in his power to have- cars placed to receive the coal. For the purpose of this agreement, the respective sizes of the coal shipped from said washery shall conform to the standard, and be made over meshes corresponding in size to the meshes [379]*379used by tbc Delaware, Lackawanna & Western Railroad Company in the Lackawanna region.
Tlie party of tbe first part agrees to use due diligence to market the coal delivered to him hereunder so as not to cause suspension of operation by reason of any embargoes by tlie railroad company on account of accumulation of coal in cars beyond the proper allowance to the party of the second part
The party of the first part shall be responsible to the party of the second part for the payment of the agreed price at which all coal shipped to his customers shall have been sold, less the freight thereon paid by the party of the first part, and he agrees to pay to the party of the second part on the 20th of each month the aggregate selling price on board cars at the washery of all coal delivered during the preceding month to customers upon sales made by him, except that from the proceeds of such sales the party of the first part is hereby authorized to deduct the reserve hereinafter referred to, and apply the same toward tlie payment of said advances, and a commission of ten (10c) cents a ton»on each ton of pea and smaller sizes and of twenty (20?) cents a ton on each ton of sizes larger than pea shipped from said washery or culm bank, * * *
The moneys to be so advanced by the party of the first part shall be repaid, with interest thereon at the rate of six ((>%) per cent, per annum, as follows: Out of 1he proceeds of coal sold by the party of the first part under the terms of this agreement, or out.

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Related

Kelley v. United States
30 F.2d 193 (Ninth Circuit, 1929)
Puget Sound Power & Light Co. v. Asia
2 F.2d 491 (W.D. Washington, 1921)
Marian Coal Co. v. Peale
204 F. 161 (Third Circuit, 1913)
Texas Co. v. Central Fuel Oil Co.
194 F. 1 (Eighth Circuit, 1912)

Cite This Page — Counsel Stack

Bluebook (online)
190 F. 376, 1911 U.S. App. LEXIS 5369, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peale-v-marian-coal-co-circtmdpa-1911.