Scranton Elec. L. & H. Co. v. Scranton Ill. H. & P. Co.

Citations

• 122 Pa. 154
• 15 A. 446
• 1888 Pa. LEXIS 603

Syllabus

<p>1. As the primary object of the institution of a corporation is the public welfare, and the interest of the stockholders but secondary, the wilful frustration of that intention by the act of the company is a fraud upon the rights of the public.</p> <p>2. A corporation guilty of such a fraud cannot appeal to a court of equity to suppress for its own benefit an interference with exclusive privileges, claimed under its charter, by a competition which has arisen from its own neglect of a charter duty.</p> <p>3. A legislative grant of exclusive privileges to a corporation, is to be construed most strictly, and every intendment not obviously in favor of the grant claimed must be construed against it: Emerson v. Commonwealth, 108 Pa. 111.</p> <p>4. Clause 3, § 34 of the corporation act of April 29, 1874, P. L. 94, does not extend the exclusive privilege conferred, to companies incorporated under said act for the purpose of furnishing. light by electricity to consumers.</p> <p>5. Monopolies operate in restraint of competition and are detrimental to the public; welfare, and are not allowable at all except where the resultant advantage is in favor of the public; as, for instance, when a water or gas company could not exist except as a monopoly: per Mr. Chief Justice Gobdon.</p> <p>■6. It seems: The corporation act of April 29, 1874, P. L. 73, providing for the incorporation of companies for “ the manufacture and supply of gas, or the supply of light or heat to the public by any other means,” does not authorize the incorporation of companies for the supply of electric light to consumers.</p>