Gas & Water Co. v. Corporation of Borough of Downingtown

Citations

• 175 Pa. 341
• 34 A. 799
• 1896 Pa. LEXIS 1254

Syllabus

<p>Municipalities— Water companies — Boroughs.</p> <p>A borough is a mere agency of the state for governmental purposes. Its charter is not a contract within the protection of the prohibition against laws impairing the obligation of contracts, and it has no vested right to its powers and franchises.</p> <p>The legislature has the power to take away the right of a borough incorporated under the general borough act of April 3, 1851, to construct water works, and it may exercise this power by creating a corporation and conferring upon the corporation the power which had been previously conferred upon the borough.</p> <p>All grants of exclusive privileges should be strictly construed, but when there is no ambiguity there is no occasion for the application of the rule that a grant for a public use cannot be created by implication or extended by construction.</p> <p>The borough of Downingtown was incorporated on May 20, 1859, under the general borough act of April 3,1851, by which it was empowered “ to provide a supply of water for the use of the inhabitants.” This power was not exercised by the borough, and on March 22, 1867, an act was passed incorporating a company with “exclusive authority to supply with gas light and water the borough of Downingtown and its vicinity, and such persons, partnerships and corporations residing therein as may desire the same.” Works were erected and water was supplied in the borough of Downingtown until the company’s property and franchises were sold by the sheriff in 1878. The purchaser organized a new company which accepted the provision of article XVI. of the constitution. Held, (1) that the new company had the exclusive right to furnish water in the borough of Downingtown and vicinity; (2) that the exclusive rights and privileges conferred upon the original company which became vested in the new company wTere not affected by the latter’s acceptance of the provisions of article XVI. of the constitution.</p>