The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1902-01-29

contract right would not perhaps have been
| effected by the act OF 1850. But here the cost
is fixed one, the net cost with interest at ten
| per cent. per annum, deductng dividends. The
| result is one of computation. There is no room
for discretion or judgment which may be exer-
cised under one form of proceeding as we'll as
another. Both the contracting parties must be
conclusvely presumed to have lad in view the
law which empowered them to contract and
which became part OF the contract. At the end
OF twenty years, the defendants have right
to take the works ut a price fixed by the law
and that is one of computation True as TO the
city, the taking Of the works is only pcilnissive.
1t ia not bound 10 take them while ii the city
demands, plaintiffs are bound to surrender them,
but If the city does not choose to become the
owner of the works in the mode pointed out in
the act, it has no power to destroy their value
by duplicating them at the expense of the tan
payers"
This ruling, in Judgment, controls and
directs our action with relation to the obliga-
tions in the form Of contracts existing between
the Crystal Lake Water company and the city
of Carbondale.
TAKING OF RANSOM TRACT.
Fifth--The taking OF the Ransom tract by the
city in the erection OF its plant, would he
taking a part OF the franchise of the Jernyn
Water company. With the estimate of the engi-
neer OF tue city. together with the undispued
damage that would result to the Jermyn Water
company, namely, S250,o00 would place tho in
debtedness to be incurred by the city of Car
bondale in the erection OF the water works
beyond the seven per cent. limitation upon the
last assessed valuation for taxable purposes in
the city of Carbondale. However, in our judy
ment, the grant TO the .Iernyn Water conf
pany Of its franchise being older than the grant
TO the city OF Carbondalc, the younger cannot
infringe on the older grant. White ct al. VS..
Zt rl,.,I 10 Thnrns
damage would arise to the city OF Carbondale
in the exercise OF its right OF eminent domain
in the taking of the Ransom tract, because it
could not be taken without the assent OF the
Jermyn Water company; and as this indebted
ness has not been incurred by the contract of
purchase and it cannot be incurred by condem-
nation proceedings, we conclude that the in
debtedneSs is not in excess of the constitu
tional and statutory limitations
Sixth-As to the corporate existence or life
under the law OF the Consolidated Water Supply
company. we cannot, in this collateral proceeding
adjudicate. Spahr VS.. Farmers Bank "a Pa. 434
A corporation is the mere creature OF the law.
1t can exercise no powers which are not ex'
pressly conferred or necessarily implied in the
furtherancc of the object OF its creation. Dill.
gent Fire Co. VS.. Com, o5 p. +. Smith 205
When, however, charter has actually been
granted TO certain persons TO act as II corpora
tion and they are actually in possession and
enjoyment OF the corporate rights granted, such
possession and enjoyment will be held valid
against one who has dealt with them in their
corporate character. Angel & Ames on Corp
Section So lie cannot be permitted to prove in
n collateral proceeding that condition preced-
ent to its full corporate existence, has not been
complied with. As against him the charter and
"A user OF the rights claimed to have been
conferred by it are sufficient. When there is a
de facto corporation and the state does not in
to contract cannot be questioned in n suit
brought upon evidence OF debt given to it.
1t is well settled that although charter may
he declared null and void by the proper author
ity, vet the violation thereof cannot be deter
mined In collateral suit. Irvine VS.. Lumber
mans Bank, W. g. S. 100.
WOULD NOT BE BENEFIT
Seyenth--It would not benefit the defendants
for us to find that the water supplied by the
plaintiff water companies was not supplied at a
reasonable rate in sufficient quantity and OF pure
quality, because all of these inquiries regu.
lated by the statute and cannot be inquired in
this colaera, proceeding, Brymer vs. Butlgr
Co., l72 Pa. 4S9; Com. vs.. Towanda, % W.
N. G. i20; Dubois borough vs. Water Works
Co.. 176 Pa 4So. We have stated our own fnd-
ings of fact and OF law and have filed with our
findings the requests OF both plaintiffs aud de.
PENDANTS in order that they may become part
OF the record Of the court in the case.
Now, the 2Sth day OF January, 1902, decree
nisi is entered continuing the preliminary in-
junction heretofore granted restraining the city
OF Carbondale and its officers and agents. the
other defendants herein named and their success.
sors from creating the proposed Indebtedness of
$4,000 and from issuing bonds TO secure the
same or any part thereof for the construction
OF such water works or any part thereof; like.
wise restraining the defendants and their sue
cessors from executing any contract for the con-
part thereof and In like manner restraining the
city and its officers, the defendants herein named
and their successors from passing any ordinance
or doing any other act. matter or thing in
mrtherance OF their purpose TO increase the in
or their purpose to erect said water works