Greensburg Borough v. Westmoreland Water Co.

Citations

• 240 Pa. 481
• 87 A. 995
• 1913 Pa. LEXIS 701

Syllabus

<p>Water companies — Purchase of rights and franchises of other companies — Boroughs—Bight to purchase property of water company — Equity—Injunction—Corporations.</p> <p>1. Under the Act of April 17, 1876, P. L. 30, amending the Act of April 29, 1874, P. L. 73, it is lawful for any corporation, created under the Act of 1874, to sell, assign, dispose of and convey to any other corporation created under said act, its franchises and all its property, real, personal and mixed. This act is express legislative authority for one water company to purchase the franchises and property of another.</p> <p>2. The purchasing company in such case must exercise the franchises and discharge the public obligations imposed upon the several companies whose properties and franchises are purchased by it. It cannot be contended, therefore, that it is acquiring property in excess of that required for the purposes of its organization and business, on the theory that its function^ must be limited to the territory originally covered by its charter.</p> <p>3. Tbe purchase by a water company of the franchises and property of other companies serving other- municipalities, does not affect the status of the works and property which a borough, in which the original company is located, has a right to acquire at the net cost of erecting and maintaining the same, with interest at the rate of ten per cent, per annum, deducting dividends theretofore declared. The fact that the water company owns property outside of the borough is not material, if the borough chooses to purchase the property located in the borough under the act of assembly.</p> <p>4. Where a water company is proposing to purchase the franchises. and properties of eight other companies, serving other municipalities in the same neighborhood, equity will not restrain the consummation of the proposed purchase, at the suit of the borough in which the original water company is located, either on the ground of lack of corporate power to make th