Greensburg Fuel Co. v. Irwin Natural Gas Co.

Citations

• 162 Pa. 78
• 29 A. 274
• 1894 Pa. LEXIS 944

Syllabus

<p>Natural gas companies — “ Land held in fee ” — Act of April 7,1870— Execution — Mortgage.</p> <p>A right to take natural gas from land, and rights of way and appliances required in obtaining the gas, and transporting it to consumers, is not “ land held in fee,” within the meaning of the act of April 7, 1870, P. L. 58, which provides a special fi. fa. for the sale of the franchises, rights and property (excepting lands held in fee) of an insolvent corporation.</p> <p>The exception in the act of April 7,1870, P. L. 58, is limited to the land which the corporation holds in fee and which is not dedicated to corporate purposes or essential to the exercise of the corporate franchises. It was the purpose of the act to allow the creditors of the corporation to sell its franchises and property dedicated and essential to the purposes for which it was chartered, and not to disintegrate such property and thus defeat such purposes and prevent the performance of the duties which the corporation owes to the public. By Mr. Justice McCollum.</p> <p>A natural gas company owning the natural gas underlying a tract of land, and the rights and privileges necessary or useful in the production 'or transportation of the same therefrom, executed a mortgage for the unpaid balance of the purchase money of the same. The mortgagee obtained judgment upon a note accompanying the mortgage and subsequently secured control of two junior judgments. On one of these it issued a special execution under the act of April 7,1870, and levied and advertised all the property, franchises and rights of the gas company (except lands held in fee), subject to any mortgage existing upon it. The mortgagee purchased the same at the sheriff’s sale. Held, that the mortgagee was not entitled to participate with other creditors in the fund realized by the sale.</p>