by John Marshall Harlan

“ By constructing water-works of its own, the borough will not destroy the franchises of the plaintiff company. It may impair their value, and probably will do so; but of this the company have no legal cause of complaint. The granting of a new charter to a new corporation may sometimes render valueless the franchises of an existing corporation; but, unless the state by contract has precluded itself from such new grant, the incidental injury can constitute no obstacle. ”

“ It is equally clear that the law of the state to which the constitution refers in that clause must be one enacted after the making of the contract, the obligation of which is claimed to be impaired. Neither the Lehigh Water Company nor its predecessor had, under any statute enacted prior to 1874, an exclusive right to maintain water-works in the borough of Easton for supplying its inhabitants with water. ”

“ For many years prior to June 21, 1880, the Lehigh Water Company, a corporation organized under the laws of Pennsylvania, by the purchase at judicial sale of the rights, powers, privileges, and franchises of the West Ward Company, also a Pennsylvania corporation, maintained a system of waterworks whereby the inhabitants of the borough of Easton, in that commonwealth, were supplied with water for domestic and business purposes. ”