New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1872-06-25
THE LAW OF INJUNCTIONs AGAINST COE-
PORATIONs.
PACIFIC MAIL IITIGATION-AN IMPORTANT DE-
CIsION BY JUDGE TAPPEN.

PACIFIC MAIL LITIGATION-AN IMPORTANT DE-
CIsION BY JUDGE TAPPEN.
In the decision rendered last Saturday in
the Supreme Court of Kings County, dssoying the in
junction granted the suit Of James D. Bach 20 restrain
the Pacific Mail steamship Company from reducing S
capital stock. Judge Happen says;
The chief questions presented are whether the Court should BY To-
Junction interfere to prevent certain mcaes Of investment
others whether in nc absence o. prohibition Or mon Of ~
reeresenstyes Of tie soekbos for the purposes Of
aging the sa. o. e cGapay AID al 81 nj. ,r. i. os
a power without being expressly authorized b. tiiuie
II quy 5oSer. u ny c5q are 70 g sserei VT srs'
snd particularly s IBIS ihe case "a re.Pee' to IN, no
doubt law and the sloai BE- order % justly
Afforded BY the law either " an e on for damages or 81 change ia
the Board Of officers by removal Suspension under The pro7ons II
AeoTontion created ard franchise ere granted 70 promote hs
and bri Of th business And herein there Is some dfaes
recognized between corporation, and Their capital or assets embarked
wherein the primary object is y and secondary object pos
Ss1seeiy or f9ly T. IA iol i b pros essd
upon Their management Of their aasr although where Their
S SSs az Of av Of embark IA as Tao foreign % he Object.
q the ncoFpGraSn' ls Go0 w. IN 80. sR'n e. enforce s
planning stakeholder invoke tho action Of the State through ia
directors flaws Of 1870 chap ISL AID corporations private
person. engaged IN iI1ls mus. T,a sns ~ Pc ts .
rules which obtain IN equity. IN tAs case u rs nos
Of The company trrnsaciei in the complained Of
the plaintiff the contrary appears that large profit has been
realized during the period Of three months embraced IN TIE state
submitted and although alleged yet does not that any
express proyis0n Of law Is violated.
III fraudulent alleged against officers dreors
damages be maintained agn them by st1ckl0Acf
addition the proceedings for suspension required 81 statute u ho"
ard r. 10.
Where directors committed breach Of rs or by making con-
guaranty behalf Of the corporation which they we're nos
powered charter committed other clear stcs on
powers they have been restrained by Injunction bfadt
Eastern Counties Railway, Hare ia hauders ag Commercial
Bank, % Penn. 3l9
In the defendants private corporation and h
officers and directors thereof The charter
by for the purpose Of enabling the grantee to engage in e ana
commerce. Like all corporations the creature OF public poy
OF tstute and although private be termed
prbc corporation stock Owned by individuals. bat ue
franchise pubIc-tle Of corporation With view
the interests Shareholder but they ao expected 20
mote the public lAnge Cooperation Sec o. Aud iva
great purposes are led 10 aided In these Tespec.,
Irsig the active snl useful employment Of capital and
Secondly the promotion Of trade commerce. manufactures ana other
The Proposition Of part the plaintiff be asserted TO
without touching be found where The general
management corporate property been subject 70 the
power; indeed in the Of clear violation Of
vide departure from Chartered powers out scn ~ u
The very dclY Of Appropriate remedy
Injunction time suecrg the corporation q
and losses which would terminate It's career must be appafent
to all. ,c,
Tie plaintiff has the Intervention o. the Court
and II damages the Illegal Of the directors lie 2 a.
before shoWu sdquae remedy Let Be entered dcuy
ing continue the temporary Injunction and dss0l'ng aeh
VI