Flemming v. Taylor Fuel, Light & Power Co.

Citations

• 90 Kan. 763
• 136 P. 228
• 1913 Kan. LEXIS 303

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>1. Gas Company — Mortgage Sale — Liability of Purchaser Operating Plant under Same Franchise. Where a mortgagee of a gas-distributing company took possession of the mortgaged plant and franchises, together with its records, books and business, and carried on the same business with the same property under the same franchise, it will be presumed', in the absence of evidence to the contrary, that the mortgagee intended to respond to corresponding obligations imposed by the franchise, or incidental to the rates it collected.</p> <p>2. New Corporation — Operating under Same Franchise as Old Corporation — Agent of Parent Corporation. Where a corporation, organized by the officers of an investment company for the purpose of purchasing property and franchises of a gas-distributing company mortgaged to the investment company, purchased the property at a mortgage sale without consideration except the interest its incorporators might own in the mortgage as shareholders in the investment company, and thereafter the new company carried on the business first conducted by the mortgagor, and afterwards by the mortgagee, it is held that the new company should be considered as an agent of the parent company in the purchase and operation of the plant.</p> <p>3. Gas Company — Franchise — Discontinuing Business — Conditions Imposed by Court Reasonable. While in possession and carrying on the business the investment company and the new company enjoyed the franchises and privileges granted by ordinance of the city to the mortgagor, collected rates and settled outstanding accounts with customers upon the books, and otherwise continued the business as their predecessor, the mortgagor, had done. The new company desired to discontinue the business and remove the property. The district court permitted this to be done, but required that it should first give thirty days’ notice of its intended withdrawal and repay to consumers deposits which had been made with th