Bullfrog Goldfield Railroad
1913 Lease Agreement
courtesy of the Wm. J. Metscher Collection

Taken from what may be a late draft (unsigned) of the lease.
Portions in red appear to be intended to be removed.

 

THIS INDENTURE OF LEASE, Made and entered into at Tonopah, Nevada, this First day of July, 1913, by and between the BULLFROG GOLDFIELD RAILROAD COMPANY, a corporation, organized and existing under and by virtue of the laws of the State of Nevada, as Lessor, party of the first part, and the TONOPAH AND GOLDFIELD RAILROAD COMPANY, a corporation, organized and existing under and by virtue of the laws of the State of Nevada, as Lessee, the party of the second part.
 
- W I T N E S S E T H -
 
-RECITALS-
 
1. The Lessor owns a line of railroad having its southern terminus at Rhyolite, Navada, and its northern terminus at Goldfield, Nevada.
2. The Lessee owns a line of railroad having its southern terminus at Goldfield, Navada, and its northern terminus at Mina, Nevada.
3. The joint lines of the Lessor and Lessee form one continuous line from Mina on the north to Rhyolite on the south. At Mina the Lessee Company's lines joins the line of the Nevada and California Railroad Company. At Gold Center, a point near Rhyolite, on the line of the Bullfrog Goldfield Railroad Company, the last named line joins the Tonopah & Tidewater Railroad.
4. Negotiations have been pending by and between the parties hereto contemplating the making and execution of a lease of the line and whole property and corporate assets of the Bullfrog Goldfield Railroad Company to the Tonopah & Goldfield Railroad Company for a period of five (5) years upon certain particular terms, stipulations and conditions herinafter set forth.
 
NOW THEREFORE, in consideration of the premises and the sum of Ten Dollars lawful money of the United States paid to the Lessor by the Lessee, receipt whereof is hereby acknowledged, and other good and valuable considerations and the mutual promises, covenants and stipulations hereinafter set forth, the parties hereto have promised, covenented and agreed, and do herebypromise, covenant and agree as follows:
1. The first party, as Lessor, has leased, demised and let, and by these presents does lease, demise and let to the second party, as Lessee, all and singular the lands, plant, property and the whole corporate assets of the Bullfrog Goldfield Railroad Company upon those certain particular terms and conditions hereinafter set forth.
2. The life of this lease shall be for a period of five (5) years beginning July 1st, 1913, and continuing to and ending on July 1st, 1918.
3. On July 1st, 1913 the Lessee shall take full, complete and exclusive possession of the whole premises, plant, property and corporate assets referred to in paragraph (1) above, with full power and authority to demand, collect, receive and take possession of all moneys and credits then due to the Lessor, or thereafter due to the Lessor during the life of this lease, and to use, apply and treat the same as part and parcel of the current revenues of the lessor company.
4. The Lessee will operate the said leased line and premises, and will maintain the same paying all operating expenses, including taxes, out of the income derived from such operation, and in the event that such income is insufficient for the purposes stated in this paragraph, then the Lessee will advance sufficient funds for the payment thereof during the terms of this lease.
5. The Lessee, during the life of this lease, will add no further debts to the corporate property of the Lessor Company.
6. The Lessee will guarantee the payment of the interest on the first-mortgage bonds of the Lessor Company to the extent of One Hundred and Ninety-Nine Thousand Dollars ($199,000), which is the gross amount of said bonds issued and outstanding at the present time; and will further guarantee (for) the payment of the sinking fund requirements on said bonds during the term of this lease; provided, that the payment of the interest installments first falling due under this paragraph, namely on July 1st, 1913, shall not be required to be made until the Lessee has consumated the change in personnel of the directors and staff of officers of the Lessee Company (as hereinafter particularily specified).
7. The Lessor Company will refund to the Lessee Company, the sum of $50,357.75 or such other sum as shall have been shown to have been paid by the Lessee Company in that behalf, to the Tonopah & Tidewater Railroad Company, (as a reimbursement to said Tonopah & Tidewater Railroad Company for moneys heretofor advanced by the Lessee named, for the payment of taxes levied and assessed against the Lessor Company), and the Lessor will also refund to the Lessee Company, any and all other sums advanced by the Lessee Company for the payment of operating expenses, taxes, interest and sinking fund charges now due ot to become due, such part thereof as it may be able to pay out of any amount earned over and above the operating expenses of the Lessor Company, during the term of this lease.
8. After the operating expenses, cost of maintenance, taxes, interest and sinking fund requirements have been paid or set aside out of the income of the Bullfrog Goldfield Railroad Company, any moneys remaining thereafter shall be the sole and separate property of the Lessee Company and may be appropriated to its exclusive use and benefit.
9. If the Lessor shall fail, refuse or neglect to perform or fulfill any of the stipulations hereinabove (sic) specified to be performed, or fulfilled on the part of the Lessor, than and in that event, the Lessee may, at the option of the Lessee, forthwith terminate this present agreement, and no liability or contractual obligation shall arise or exists against the Lessee under this present agreement.
10. It is expressly understood and agreed that the Lessee shall not be liable for any debts, obligations, liabilities, claims or demands incurred or matured or arising by or against the Lessor prior to July 1st, 1913.
 
IN WITNESS THEREOF the parties have hereunto set their corporate names and seals by their respective accredited officers thereunto duly authorized, acting under the authorization of corporate resolutions duly and regularily adopted in that behalf, the day and year first above written.
 
BULLFROG GOLDFIELD RAILROAD COMPANY,

BY ____________________________
AS ITS

BY ____________________________
AS ITS
 
TONOPAH & GOLDFIELD RAILROAD COMPANY,

BY ____________________________
AS ITS

BY ____________________________
AS ITS

Intended Notarization of the Lease

 

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12/20/2003