Manheim Borough v. Manheim Water Co.

Citations

• 229 Pa. 177
• 78 A. 93
• 1910 Pa. LEXIS 568

Syllabus

<p>Municipal corporations — Boroughs—Water company — Acts of May 81, 1907, P. L. 355, and April 29, 1874 — Constitutional prohibition — Impairment of contracts.</p> <p>1. The Act of May 31, 1907, P. L. 355, providing “for the acquiring of water plants or systems by municipalities” is not applicable to the purchase by a borough of the property of a water company incorporated in 1884, under the general corporation Act of April 29, 1874, P. L. 73, inasmuch as it would be contrary to the constitutional provision prohibiting the violation of a contract.</p> <p>2. Where a water company’s property may, under its charter, be taken by a municipality at a sum equal to the net cost with interest at ten per centum per annum, deducting dividends, the legislature cannot thereafter pass an act providing for the appointment of appraisers to fix a price which the company is bound to accept under the penalty of losing the exclusive privileges conferred upon it by its charter.</p> <p>3. Where the legislature is given the constitutional power to alter, revoke or annul a charter, the charter is still accounted a quasi contract; and if the legislature undertakes to exercise the power, it must act in such manner that no injustice shall be done to the corporators.</p>