Punxsutawney Borough v. T. W. Phillips Gas & Oil Co.

Citations

• 238 Pa. 23
• 85 A. 1003
• 1913 Pa. LEXIS 919

Syllabus

<p>Corporations — Gas companies — Natural gas companies — Merger and consolidation — Limitation on price — Acts of May 29, 1885, P. L. 29, and May 29, 1901, P. L. 849.</p> <p>1. Where a gas company organized in 1883 under the Act of April 29,1874, P. L. 73, supplies a particular borough with natural gas, and in 1886 accepts the provisions of the Natural Gas Act of May 29, 1885, P. L. 29, and continues to supply the borough with natural gas, and in 1904, it is consolidated under the Act of May 29, 1901, P. L. 349, with another natural gas company which had a right to serve the borough, but with restriction as to the price of gas, the consolidated company may serve the borough with gas under the franchises of the first company without any restrictions imposed by the franchises of the second company, if it appears that the second company had never in fact availed itself of its right to furnish the borough with gas.</p> <p>2. In such a case the fact that the stock of the first company was acquired by owners of the stock of the second company, and that the net proceeds from the sale of its product, after the payment of all its proper corporate expenses were turned into the treasury of the second company, will not serve to extinguish the first company’s individual franchise or rights.</p> <p>3. When an act for the merger and consolidation of corporations gives to the consolidated company the rights and privileges of the constituent companies, or makes the consolidated company subject to the obligations of the constituent company, the generally accepted rule is that the rights and obligations are not extended by the act to all of the property of the consolidated company, but only apply severally to the property of each constituent company taken over by the consolidated company.</p>