118 Pa. 436 | Pa. | 1888
Opinion,
The Hite Natural Gas Company, Limited, was organized under the provisions of the act of June 2,1874, with a capital of $250,000, divided into twenty-five hundred shares of one hundred dollars each. The business contemplated was the production of natural gas from wells near Tarentum, and its transportation to the ,city of Allegheny for sale as a fuel. The company contracted with P. Y. Hite, one of its members, to furnish the right of way for its line, the pipe and other mate
The first question, therefore, is whether the plaintiffs below had a just claim against the appellant for the value of the stock withheld by it. Hite had contracted to deliver it to the tube and iron company, and the gas company had undertaken to make the delivery for him subject to its contract with him for the construction of the pipe line. The tube and iron company had a right to insist upon its delivery, unless there was some valid reason set up as an excuse for its non-delivery.
Our next question relates to the extent of the liability of the defendants. They claim to be regularly organized under the act of 1874, and to have no liability beyond that which attaches to the Hite Natural Gas Company, Limited. The plaintiffs below insist that the members of this company are liable as partners. On turning to the certificate of the stockholders, filed under act of 1874, we find it clearly stated that the subscription of $85,000 for eight hundred and fifty shares subscribed for by P. Y. Hite is paid for in property, viz.: “the right of way and privileges for laying and maintaining an eight-inch pipe line upon and over the lands and highways intervening” between the wells and the city of Allegheny. This was false. The answer of the defendants in this case fully justifies the finding of the master, that Hite did not have, and was unable to procure, the right of way and that the change of terminus was made necessary by this fact. This was calculated to give a false credit to the company. It had no right of entry by virtue of a grant of eminent domain, but was compelled to procure by private contract with each individual and each pri
But it is also urged that it was error to direct an injunction in this case. The facts found by the master on which this question depends are as follows: The enterprise of the Hite Natural Gas Company has proved a failure. Its wells have become practically worthless. Its stock is now worthless. The company is insolvent and its only valuable property is the pipe in its line. Most of its members have united in organizing a new company, called the Chicopee Gas Company, to which the old company is about to transfer its pipe line, thus placing its property beyond reach of its creditors. These findings which were concurred in by the court below, and which seem to be well supported by the evidence, made a sufficient foundation for the injunction awarded and for the appointment of a receiver.
On an examination of the whole case we are satisfied with the decree of the court below, and it is accordingly affirmed.
Appeal dismissed at the costs of the appellants.