State v. New Orleans Water Works Co.

Citations

• 107 La. 1

Syllabus

<p>Syllabus.</p> <p>1. Where a private corporation, created under State law, misuses the franchises conferred upon it, with respect to matters which are of the essence of the contract between such corporation and the State, and the acts, or omissions, complained of, are wilful and repeated, and inflict injury upon me public, generally, they constitute just ground for the forfeiture of such franchises and the dissolution of the corporation.</p> <p>2. The charter of the defendant company, being Act No. 33 of 1877, Extra Session, as amended by Act No. 43 of 1878, prohibits said company, in express terms, from charging higher rates for the- water to be supplied by it than were charged by the City of New Orleans at the date of the passage of said act of 1877; and, as the evidence adduced in this case shows that the defendant has wilfully and persistently disregarded this prohibition, its charter and franchises are declared forfeited.</p> <p>On Application foe Reheaeinq.</p> <p>1. A private corporation, upon which has been conferred the exclusive privilege of supplying water to a large community for a number of years, upon condition that its charges shall not exceed those paid to the municipal corporation which preceded it in control of the works, and which is vested with possession and control of the books of the municipal corporation in which those charges are recorded, should preserve such books in safety, and failing, satisfactorily, to account for them, must be held guilty of negligence, and can derive no advantage from their loss.</p> <p>2. In a suit by the State to have decreed forfeited the charter of such corporation for the violation of its prohibitions and the non-fulfillment of its obligations, records in suits, litigated between the corporation and members of the community affected, in which such violations and non-fulfillment, quoad the individual litigating, have been judicially ascertained and determined, are admissible in evidence as against the defendant