Illinois Starch Co. v. Ottawa Hydraulic Co.

Citations

• 125 Ill. 237
• 17 N.E. 486

Syllabus

<p>1. Lease—duration of term—a lease construed, in connection with a prior lease. The trustees of the Illinois and Michigan Canal leased to a hydraulic company certain land and water power, for twenty years, with the right to renew the lease in periods of twenty years each, on the same terms, or at such higher terms as might be offered by the highest responsible bidder. The hydraulic company leased the water power and premises to a starch company for nine hundred and ninety-nine years, which latter company, in and by its lease, covenanted to pay rent quarterly, and to keep and perform all the covenants of its lessor to the canal board, and such lease contained a clause that “it is understood and agreed between the parties, that all the conditions, limitations and restrictions contained in the lease of the trustees * * * to the hydraulic company, bearing date * * * are to apply to and constitute a part of this lease, and that the starch company, its lessees and assigns, are to be governed, limited and restricted by them,” etc.: Held, that the two leases were to be taken and construed together, and that it was not intended that the leasehold interest granted by the second lease was for nine hundred and ninety-nine years absolutely, but for that term in the event the first leasehold interest was not terminated prior to the expiration of that period.</p> <p>2. Strict foreclosure—whether allowable. As a general rule, a strict foreclosure of a mortgage or other lien will not be permitted where there are other creditors, or other incumbrances upon the property, or purchasers of the equity of redemption; but there are exceptions to such rule.</p> <p>3. A starch company leased certain premises and water power at a certain rental per annum, payable quarterly, and the lease made its covenants to pay, etc., a lien on the demised premises and improvements thereon. The company allowed the improvements to run down and become almost valueless, ceased to occupy and use the premises,