Webster Lumber Co. v. Keystone Lumber & Mining Co.

66 L.R.A. 33, 42 S.E. 632, 51 W. Va. 545, 1902 W. Va. LEXIS 125
CourtWest Virginia Supreme Court
DecidedMarch 15, 1902
StatusPublished
Cited by7 cases

This text of 66 L.R.A. 33 (Webster Lumber Co. v. Keystone Lumber & Mining Co.) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Webster Lumber Co. v. Keystone Lumber & Mining Co., 66 L.R.A. 33, 42 S.E. 632, 51 W. Va. 545, 1902 W. Va. LEXIS 125 (W. Va. 1902).

Opinion

POEEENBARGER, JüDGE :

The Webster Lumber Company, a West Virginia corporation, being the owner of a tract of land situated in Webster Courity and containing about four thousand acres, having upon it a large [547]*547amount of timber, contracted with one person or firm to saw this timber, and on the 22nd day of October, 1895, entered into a- contract with Joseph L. Wheeler and Harry A. Miller, by which said Wheeler and Miller agreed to construct a standard guage railroad from a point near Glade Station, on the West Virginia Central and Pittsburg Eailroad, up to the timber standing on the company’s land, at their proper cost and expense, and all roads and tramways through said tract of land necessary to the removal of the timber therefrom, and also to furnish at their own expense all necessary appliances, locomotives, tools, tracks, etc., needed to operate said railroad. They were to have, .free of charge, all rights and privileges necessary to construct and operate the railroad in delivering the timber at the mill. They agreed to cut, fell and deliver all the timber on that tract of land to the mill-dam to be located near Glade Kun Station, cleaning up all the saw timber as they should go. They were thus to deliver logs to make not less than thirty thousand feet of lumber for each working day, for at least eight months in the year, ■ or a total of not less than five million feet annually, until the timber should all be taken off the land, unless prevented by accident, strikes among men or other causes over which they could have no control. For this service Wheeler and Miller were to receive four dollars and fifty cents for each one thousand feet of timber, except the beech, birch and maple and, for each one thousand feet of beech, birch and maple that they should cut and deliver as aforesaid, they were to have four dollars. The contract contained a provision by which in case the Webster Lumber Company should fail to find a market for the sale of their timber and thus render it impossible for Wheeler and Miller to continue their operations under the contract and they should desire it, the Webster Lumber Company might purchase the railroad, its equipments, appliances and all the improvements necessary for the cutting and removal of said timber in the manner and upon the terms set forth in the contract. It also contained a clause by which the lumber company bound itself to furnish enough timber to make thirty-five million feet of timber. If so much could not be found upon the tract of land mentioned they were to make up the timber from other lands near said tract.

Under this contract Wheeler and Miller began the construction of the railroad soon after the contract was made. Along in [548]*548December, 1895, as stated by tbe president of the Lumber Company, Miller, whose deposition is not taken in the canse, began writing letters to the president of the company, who was also vice-president of a National Bank at Connellsville, Pennsylvania, wanting to know if Wheeler and Miller could not borrow some money from - that bank. The bank refused to make thejoan, and Miller went to Connellsville and told the officials of the company that, unless the company would buy the rails, splice bai-s, spikes and ties and p-ut them in the road, it would be impossible for them to go on with their contract. Mr. Kilpatrick, president of the company, says they told Mr. Miller they would not buy the rails and the material for them, and that, if they did buy them at all, -the purchase would be made for the company, and that finally it was agreed between Miller and the company that the company would buy the material, necessary to complete the road, at its own cost, and would own the material until such time as Wheeler and Miller would be able to buy it from them. Wheeler and Miller wore to pay a rental of fifty cents per thousand feet on the timber they should deliver and also to pay the interest on the money to be invested in the materials, the rental to be deducted from the money to become due them for the timber cut and delivered at the contract price. This occurred in January, 1896, and, at the time of the making of this arrangement and agreement, the company gave Mr. Miller four hundred dollars to be used in the purchase of ties for the road, the receipt for the payment of the ties to be taken by Wheeler and Miller in the name of the'Webster Lumber Company, and the money was- so expended and the receipts taken. Afterwards five hundred dollars more was paid by the company to them and used in the same way. These two items are carried into the accounts between the lumber company and Wheeler and Miller in such way as to leave it uncertain as to the exact nature of the transaction. Kilpatrick and J. B. Balsley, secretary of the company, attribute that to the carelessness or incompetence of their bookkeeper. There is no doubt whatever that the money was paid and handled in the manner stated by Kilpatrick. Wheeler was-put upon the stand as a witness against the company and admitted, that the money was received and expended in that way. All the rails and other materials that went into the road ■\vere purchased by and in the name of the Webster‘Lumber Company. They were consigned to the company. The com[549]*549pany purchased them, but Kilpatrick gave his personal guarantee that they would be paid ior by the company. They were paid for by the company. These materials were all placed in the road by Wheeler and Miller by February 15, 1896.

The rolling stock of tire road consisting of a locomotive, some log trucks or cars, and all the other tools used by Wheeler and Miller, were purchased by them. The company furnished nd money for that purpose. The engine and cars cost five thousand six hundred dollars, on which Wheeler and Miller paid' one thousand five hundred dollars. or two thousand dollars cash, and the balance of the purchase-money was secured, by articles of agreement reserving title to the property until the performance of the conditions, in respect to payment of the purchase-money, in the form or nature of rental rates.

On the 19th day of August, 1896, a new contract was made, reciting the inability of Wheeler and Miller to -comply with their agreement of October 22, 1895, in respect to the purchase of the rails, ties, and other materials for the construction of the rail-' road, and the investment by the Webster Lumber Company of seven thousand eight hundred and seventy-four dollars and fifty-two cents in said materials, in consideration of which it was understood and agreed that Wheeler and Miller should be paid only the sum of four dollars per thousand feet for the timber stocked, except beech, birch and maple, and three dollars and fifty cents per thousand feet for the beech, birch and maple, being fifty cents less on the thousand for each kind than was provided by the original contract; that no part of the track should be removed from the section in which it was until the lumber company should be satisfied that their interests there had been fully developed; and that Wheeler and Miller were to pay to the lumber company six per cent, interest on the sum of money so invested and when the total amount of timber at fifty cents per thousand and the interest paid should amount to the money invested by the lumber company, a good and sufficient bill of sale for the railroad should be made to Wheeler and Miller.

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Bluebook (online)
66 L.R.A. 33, 42 S.E. 632, 51 W. Va. 545, 1902 W. Va. LEXIS 125, Counsel Stack Legal Research, https://law.counselstack.com/opinion/webster-lumber-co-v-keystone-lumber-mining-co-wva-1902.