New Brighton Borough v. New Brighton Water Co.

93 A. 327, 247 Pa. 232, 1915 Pa. LEXIS 814
CourtSupreme Court of Pennsylvania
DecidedJanuary 2, 1915
DocketAppeal, No. 97
StatusPublished
Cited by28 cases

This text of 93 A. 327 (New Brighton Borough v. New Brighton Water Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
New Brighton Borough v. New Brighton Water Co., 93 A. 327, 247 Pa. 232, 1915 Pa. LEXIS 814 (Pa. 1915).

Opinion

Opinion by

Mr. Justice Mosoi-iziskee,

This is an appeal from a judgment granting a peremptory writ of mandamus against the two defendant corporations, commanding them “to furnish to The Borough of New Brighton, the plaintiff, a statement of the net cost of constructing and maintaining the plant of the New Brighton Water Company and the dividends heretofore declared by said New Brighton Water Company or its lessee and grantee, and to open the books, papers, and vouchers of said defendants so that the said plaintiff can check and verify said statement.”

The New Brighton Water Company was incorporated May 29, 1879, to supply water in the plaintiff borough, and from 1880 to 1902 this company performed directly its corporate duties. In May, 1902, under the provisions of the Act of June 26, 1895, P. L. 369, the company granted a lease of its plant to the Beaver Valley Water Company, the other defendant, and since that date the latter concern has furnished water in the territory for[235]*235merly supplied by its lessor. The lessee company took over this plant for the purpose of operating it in connection with several other water works owned or controlled by it, “as one system”; but the lease particularly stipulates that “the lessor reserves unto itself its franchise to be a corporation, its right and powers of condemnation, and its power and authority to establish and regulate rates for the supply of water,” and it provides that “the lessee covenants......to keep and maintain the plant and works of the lessor in good order and condition and to make all such extensions and betterments thereto as may be necessary or proper......provided that the lessee shall have the right to be reimbursed for all extensions and betterments made to the plant or works of the lessor”; another condition is that the lessee shall “account for and pay over to the lessor” one-half of the income from the demised plant.

In January, 1913, the council of the plaintiff borough passed a resolution to the effect that it “desires to become the owner of the plant of the New Brighton Water Company provided the people......approve an issue of bonds to pay for the same, should such issue of bonds become necessary, and provided the cost of such plant comes within the limit of the borrowing power of the borough.” A demand was made upon the defendant companies for a statement of the net cost of constructing and maintaining the New Brighton water plant and of dividends declared; when this demand was not complied with, on April 10, 1913, the plaintiff borough caused an alternative writ of mandamus to issue. After a motion to quash was overruled and exceptions taken by the defendants, they filed a return; subsequently a demurrer to this return was sustained and a judgment for a peremptory mandamus entered. The two assignments of error complain of the refusal to quash the alternative writ and the judgment on the demurrer granting the peremptory writ.

Where a municipality desires to acquire water works, [236]*236and proceedings for.that purpose have been correctly instituted and duly prosecuted, it is only in instances where the lack of sufficient borrowing capacity to effect the purchase plainly appears (as in Williamsport v. Citizens’ Gas & Water Co., 232 Pa. 232), that a mandamus will not be granted to compel a company properly named as defendant'to permit an examination of its records and plant. Mandamus is the appropriate remedy (Williamsport v. Citizens’ Co., supra), and the Mandamus Act of June 8, 1893, P. L. 345 (Sections 2 and 13), merely requires a petition to “present the substance of a case,” and in the return “certainty to a certain intent in general” is all that is called for, the act expressly stating that an opportunity “for the correction thereof” shall be afforded if the return is lacking in that respect. When the petition and the return meet the statutory requirements the plaintiff should traverse all alleged facts in the latter pleading upon which he takes issue, so that trial may be had thereon; but in the case at bar the appellants question the adequacy of the petition to support the judgment, and the appellee criticizes the return. It is not essential, however, to go into the matter of the technical adequacy of the petition or to discuss the alleged insufficiency of the return, for, aside from those points, on the conceded facts, there are two fatal defects shown by this record which necessitate a reversal of the judgment for the peremptory mandamus.

In Williamsport v. Citizens’ Co., supra, we took occasion to lay down the proper practice in cases of this character, and. we there stated: “Under no circumstances would the defendant company be bound to render to the city a detailed and itemized statement,” adding, “While we agree that this (Sec. 34, Clause 7, Act of April 29, 1874, P. L. 73), is sufficient to give the city such a special interest that under proper circumstances it would have the right to investigate the books and plant of the defendant......we see nothing in the statute [237]*237which......would fix the company with the onerous obligation......to furnish at its own expense such a statement” ; yet, notwithstanding this plain ruling that the only obligation upon water companies is to permit a municipal investigation of their books, records and plant, the court below ordered the defendants to furnish a written statement of the very character that we there said water companies were under no circumstances obliged to render. Moreover, the order was not only upon the New Brighton Company, to whom the municipal franchise was granted, but also upon the Beaver Valley Company, its lessee, and the latter is peremptorily directed to disclose information concerning all dividends declared and generally to open its “books, papers and vouchers.”

Again, in Williamsport v. Citizens’ Co., supra, we point out that in cases of this character two mandamus proceedings may be necessary. The second, if required, is to compel a transfer of the plant in question for a price to be then and there determined; but “the first......concerns the right of the city to have access to the books and records of the water company for the purpose of securing the data of cost and maintenance of the defendant’s plant and the dates and amounts of dividends by it theretofore declared, and, also, if desired, to make a physical examination of its works and property”; and it is to be borne in mind that we are now reviewing a proceeding of that kind. Under our established practice the first mandamus is the initial step in the taking over of water works by a municipality, and its office is simply to get at the sources of information required to enable the borough to act intelligently and finally to determine whether or not it will make the purchase; after securing this information, however, if the municipal authorities see fit, they may abandon entirely their expressed desire to acquire the property under consideration. Sec. 9, of the Act of 1893, supra, makes ample provision for a lessee company, in a “proper case,” to be granted leave to come in as a de[238]

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Cite This Page — Counsel Stack

Bluebook (online)
93 A. 327, 247 Pa. 232, 1915 Pa. LEXIS 814, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-brighton-borough-v-new-brighton-water-co-pa-1915.