58 W. Va. 22 | W. Va. | 1905
The Charleston Natural Gas Company is a corporation chartered to furnish natural gas, having a supply field in Boone county, from which it piped gas for consumption in Charleston. The Kanawha Natural Gas, Light and Fuel Company is also a corporation for the production and sale of natural gas. It had a supply field in a territory partly in Roane county, partly in Kanawha county, and had laid pipes from that field to the city of Charleston, and was about to lay pipes in its streets to furnish gas for public use. The Charleston Company already occupied the streets with its distributing pipes. The latter company had also leased some territory in Roane county, and its Boone county field fur-' nishing a poor supply of gas, it was boring wells in Roane county and was about to run a pipe line from its Roane county field to Charleston to aid its supply from Boone county. In this state of things, 20th January, 1903, the two corporations made a written agreement. It gave the Charleston Company “exclusive right to sell natural gas in” a certain section comprising the main city of Charleston and a large area besides, and gave to the Kanawha Com'panv exclusive right to sell gas in another section adjoining Charleston, also quite a large area. The agreement contained these provisions: “Second. The parties hereto mutually agree that neither of them will, during the life of this agreement, sell or distribute gas in the territory hereby allotted to the other; nor will either party permit any other person or corporation to operate or sell gas under its ordinances in the territory of the other. Third. The Charleston Company agrees that it will not operate for gas, drill wells or acquire territory for gas \iurposes within the territory now occupied by the Kanawha Company, and described as follows: Big Sandy district of Kanawha county, West Yirginia, and the Geary and Walton Districts of Roane county, West Yirginia, during the term of this agreement. Fourth. The Charleston Company agrees to take all the gas required for its business under this agreement, from the Kanawha Company, at all times during the period of this
The plaintiff's bill for relief rests on the contract between the two gas companies. That contract is challenged as void and not a valid ground of action in a court of justice, because an unlawful agreement contrary to public policy as creating a monopoly in an article necessary for public use for fuel and illumination and tending to suppress competition and impose on the public inordinate prices for it. At one time monopoly meant a grant from King or State of an exclusive right to manufacture or sell certain things; but now it means “any combination the tendency of which is to prevent competition, in its broad and general sense, and to control prices to the detriment of the public.” 20 Am. & Eng. Ency. L. (2d Ed.), 846; 4 Bl. Com. 159. In the days of Elizabeth monopoly grants were as numerous as flies. Hume’s History of England, 335. When a list was being read in Parliament a member exclaimed, ‘ ‘Is not 1)read in the number ? ” ‘ ‘Bread, ’ ’ said some one. “Yes, I assure you, if affairs go on at this rate, we shall have bread reduced to a monopoly before next parliament.” It has come to that pass verily in our day. The courts have always condemned monopoly when brought before them. They must continue to do so. They are the bulwark of the public safety. Other branches of government may indulge monopolies, the courts cannot. They are leaning more and more against it in every form. These two corporations were chartered by the State for public service and benefit. “The supply of illuminating gas is a business of a public nature to meet a public necessity. It is not a business like that of an ordinary corporation engaged in the manufacture of articles that may be furnished by individual effort. Hence, while it is justly urged that those public rules which say that a given contract is against public policy, should not be arbitrarily extended so as to interfere with the freedom of contract, yet in the instance of business of such character that it presumably cannot be restrained to any extent whatever, without prejudice to the public interest, courts decline to enforce or sustain contracts imposing such restraint, hoioever partial, because in contravention of public policy. The subject is much considered and the authorities
r Here are two corporations licensed by the state to serve the city of Charleston, each having oil territory and appliances. The Charleston Company had been supplying the city with a main line, from Boone county, with pipes ramifying through the city. Its supply is inadequate. It acquires a gas field in Roane county intending to develop gas and pipe it to its city lines. Then comes the Kanawha Company. It has a gas field in Roane and Kanawha counties. It develops and lays a lino to Charleston; but though it got a franchise to do so, it had not yet laid pipes in the streets, but was about to do so. The two competing companies confront each other in competition. Then they overcome this crisis by the ag'reement. For what? To avoid competition. Ho other
It is suggested that though some of the clauses of the agreement may be obnoxious to the vice of monopoly, yet those clauses are separable from the rest, and are not involved in this case. They are involved. They affect and poison the whole. The trouble is, the whole spirit, drift, object, effect of the contract promotes monopoly. It works a combine, an union against public policy. As an entirety it does so. Its warp and woof are made of monopoly. We are as a Court asked to enforce a contract with these hurtful features and consequences inwoven in its frame. We cannot do so consistently with law.
We affirm the decree.
A-ffb'med.