Copper Belt Railroad, Lease
This page was last updated on July 13, 2011.
Lease, Bingham Tramway, RGW to J. G. Jacobs
This lease made the thirteenth day of November, A. D. 1900, between The Rio Grande Western Railway Company, lessor, and J. G. Jacobs of Salt Lake City, Utah, lessee,
WITNESSETH: The lessor, in consideration of the sum of one dollar and of the covenants of the lessee, hereby leases to the lessee, for the term of ten years from this date, unless the lease is sooner terminated as herein provided, all that line of narrow gauge road known as the Bingham tramway, commencing at or near, Bingham station in Salt Lake County, Utah, and extending up the canyon three and one half miles, more or less, and such extensions thereof as may be made during the term of the lease; The lessor reserves the right to modify or cancel and terminate the lease after three years on thirty days notice, and if modifications are not accepted the lease shall terminate after thirty days. The lease is also on and subject to the following terms and conditions which are mutually agreed upon, to-wit:
The lessee agrees at his own expenses to do the widening, grading and bridging of the tramway road bed, and required extensions thereof, suitable for a standard gauge railroad; and the lessor agrees to furnish material for, and lay the track of the railroad and its extensions and put the same in condition for operation at its expense.
All the work for widening and extending the tramway is to be done under the supervision and to the satisfaction of the Chief Engineer of the lessor.
The lessee shall pay to the lessor, as rental, during the existence of the lease, a sum equal to ten percent per annum on the cost incurred by the lessor in furnishing labor and materials for laying the track and placing, the railroad in condition for operation, the payments to be made monthly for each calendar month, within fifteen days after bills are rendered, and in case of default in the payment of any monthly rental for fifteen days, the lessor may terminate the lease andre-enter.
In case the lessor terminate the lease, before the full expiration of the term, by notice as provided above, the lessor shall take the cars, engines and operating equipment put on by the lessee at a valuation be agreed upon, and in case the parties cannot agree, the values shall be fixed by three arbitrators or a majority of them, one of whom shall be chosen by each party, and the two thus chosen shall choose the third.
In the event also of this lease terminating by notice of lessor as above, then said lesser shall refund to lessee the amount paid by him for labor and materials furnished for widening, grading and bridging of the tramway road bed and required extensions thereof, but no such refund shall be made to lessee if lease is terminated through default on his part.
The lessee shall keep the railroad and any extensions in repair, and maintain and operate the same at his own cost and expense, and he shall furnish sufficient equipment and power to operate the railroad and properly transport and deliver all ores and freight offered for carriage, and all freight carried must be interchanged at Bingham station exclusively with the line of railroad of the lessor.
All rates for transportation charged by the lessee shall be reasonable and such as to promote the mining and other business interests of the district, and no rates shall be higher, proportionate to mileage and tonnage, than those covered by the first contract which the lessee may enter into with the Bingham Copper & Gold Mining Company, except by written consent of the Traffic Manager of the lessor, and a copy of such contract must be filed with said Traffic Manager within ten days after the same shall be executed.
The lessee shall not assign or sub-let the lease without the written consent of the lessor.
The lessee agrees to indemnify and save the lessor from all loss, cost, and damage of every kind to persons or property incurred by negligence or otherwise in operating the railroad.
In witness whereof, the parties have executed this lease, the day and year aforesaid.
The Rio Grande Western Railway Company,
By D. C. Dodge, 2nd Vice President & General Manager
J. G. Jacobs.