EESTEAINING   0E6ANIZATI0N.  273

by  such  new  corporation  of  the  property  and  concerns  of
another  corporation  at  a  foreclosure  sale.^

Where  a  new  corporation  is  formed  by  the  union  of  two  or
more  existing  corporations  the  new  corporation  must  pay  the
taxes  on  the  property  of  the  consolidating  corporations,  which
is  not  exempt  from  taxation,  there  being  no  provision  to  the
contrary  in  the  act  of  consolidation.  ^  Where  there  is  an
exemption  from  taxation  on  the  part  of  one  of  the  consolidat-
ing companies  this  exemption  is  carried  to  the  new  company
in  those  cases  where  the  act  authorizing  the  consolidation
declares  that  the  new  company  shall  have  the  powers  and
franchises  of  the  former  companies.^

It  is  said  by  the  supreme  court  of  Louisiana  in  the  case  of
Board  of  Administrators  of  the  Charity  Hospital  v.  New
Orleans,  Gas-Light  Co.*  that  the  legal  effect  of  the  consolidation
of  two  corporations  under  the  provisions  of  Louisiana  act  No.
157  of  1874  is  a  perfect  amalgamation  which  terminates  the
existence  of  the  consolidating  companies  as  separate  autono-
mies, and  operates  the  creation  of  a  new  one  thus  concentrated
in  one  corporation,  the  members,  the  property  and  the  capital
stock  of  both.  The  consolidating  corporation  not  only  assumes
duties  and  obligations  similar  to  those  of  the  former  corpora-
tion, but  it  will  be  held  on  the  very  identical  liabilities  and
obligations  incurred  by  either  of  the  other  companies.
Sec.  112b.    Same— Suit  to  restrain.— Where  the   directors  or

1  See  Houston  &  T.  C.  K.  Co.  v.  (2  Otto,)  677  (1875);  bk.  23  L.  ed.
