In re the Philadelphia & Merion Railway Co.

Citations

• 187 Pa. 123
• 40 A. 967
• 1898 Pa. LEXIS 779

Syllabus

<p>Corporations — Collateral attach upon charter — Forfeiture — Turnpike road companies — Street railway companies.</p> <p>Where a turnpike road company has a franchise under an old charter to construct and operate a street railway upon its roadbed, but has never exercised such right, the franchise can be forfeited only in a direct proceeding by tiie commonwealth; not in a proceeding by a street railway company organized under the Act oí May 14, 1889, P. L. 211, to condemn a right of way over the roadbed.</p> <p>Where a turnpike road company lias a right under its charter to construct a street railway on its roadbed, a street railway company subsequently organized has no power to lay its structure on the same roadbed.</p> <p>It seems that article 16, section 1, of the constitution, relating to the forfeiture of existing charters, or grants of special or exclusive privileges, does not apply to an active existing corporation, fully organized, and doing business in good faith at the time of the adoption of the constitution, although such corporation has an additional privilege or franchise which it lias not exorcised.</p> <p>A turnpike company which has a right to lay railway tracks on its roadbed may, in condemnation proceedings instituted against it by a street railway company organized under the act of May 14, 1889, deny the latter company’s right to lay tracks, although it is expressed in the charter of the street railway company that it has the right to lay tracks upon the turnpike road. Such a right is not essential to the validity of the street railway company’s charter, and therefore its adverse determination in a collateral proceeding does not affect the charter.</p>