, 1875-10-21
hF69-h. j. KnI-ty VI. ithrI.tinn Stein, sI7G..-'.
f',7.lI-1irrn,An Weller II Al. W. Haur, S4IU4d.


o0F WE AONH Ai3IQH.
HoUi4t vi. TilE CouK COUNTY LAND COMPANY
The suprems Court Monday flied an opinion
In tin casa OF Uramel 4. uongh W.. Tho Cook
County Lanl Company. TWAS by scloli!e!d, !.
Th,s was Lii In equity tllot1 by 1inngh in tho
Superior Court Of Cook County to nct aside
conveyance of certain 1ansla mado by linn to
tho Company. and to cancel tho stock III tho
Company isnuca tu hin In payment for .ho
Hamc. 4 demurrer wns intorpohod to tho bill by
thu Company. and II waa sustained by the lower
court, wl4lr dHIniaHetl tho bill.
Tho transactions out Of which tho caee grow
arc nnbatantlalIy AZ follows: Tho COMPANY
claimed to lie a corporation with power to lend
nnti borrow munoy, to purchaso lands, aud make
improvements On them. 1Iouell, believing that
tho Company waB empowered by It's chhrtor to
Luy land and nstlo stuck IN payment, contracted
with II u May, 1879, 10 Hcll 1t coltan lauds. in
consideration, Of tho insl,o Of 3y5 shares Of its
4tnck t0 l4Itn, t(1o Company at tho namo tule
agreeing to loan him NJ Pnr cont of tie vano ol
tho Stock and to hu1d tho stock al collateral.
Tho agreement was carried out. and tho trane-
fera OF land nt,d stocl< made; hut aftrrwartl
JIoug1i waH Informed by cout,Fo! That tho f:unl-
paty had no right to take tho land and issto the
stock: that the Company was fnrinel lnIder a
charter to iho Land improvement and Irrigation
Company granted IN 1dG7; tAat tho change Of
name and increase Of stock wc1o void aud tlut
tho ony power tho Company l,a1 wna to rur-
cthae lands for irrigation, mil hetl tho samo
when improved for tho rsssinG Of crops: II
pany llaB been eRagcd III various acts
not authorized by iss carter suci, aB ptIrcl,ss-
ing and improving city lots, and tho like.
llougl, insists that the purchase Of tllo land AMI
tho loantnR Of tn9ney "ero contrary to btatuto,
aud therefore VOID,
Tho deciaton then quotes tho several Laws
bearing upon tho holding OF real estate by this
and other corporations The Act under which
HAL TfH HFrTAb b$rkS f1szr I...A
powers it "to have, hold. osc.. lands, toneuents,
=. and effects of every kind, and the eatno
to grant and SELL" Tho fourth section OF tle act
aet8 forth tho chof Objects OF the Company 10
10 the purchase Of land and watar-courses aud
"to facilitate tho growth Of crops in dry soahons.
and to cnitlyato the sAme for such crops chlofy
aR requito irrigation to produce tho largest re-
turna.' The aoctton OF tho general law under
which the Company changed ita name provided
that any CORPORATION which awaited ltset Of tue
benettA Of tho act should thereRfter be subject
to the general laws Of tho State. Now, one Of
tho general laws then ard still In forcn
prosides IN effect, that no corporation ca
stockholders aball hoil moro land than is necea-
sary for tllo ttanractlon OF its business, and il
any company shall becomo possessed Of more
lapds than arc necessary to tho trausactlou Of
their business, then thosa lands should bo BoId
ut auction at leaBt once year. And it In made
tho duty Of tho Statu's Attorney Of tho prop9r
courta 20 proceed against suck company by In
formation to enforce thB Bnle provided for
Tho hret section OF the Bame law authorizes
corporations to be formed for any lawful pur-
poso " except banking, :. :. rcal-estaso bro~
kcrago, a.. Hnd tle business OF loanlug
npncy."
Tho Court then passes to consider whethor
{concedfng that thu Company had power only as
aboyo) the title to landa conveyed to 1t for other
purposes ia void. Tho authorities ctod BY
liough, tho appellant, bear on tho decision that
contracts prohibited by the statute arc void.
Tho Court makes this important distinction
hero. that In tho caees Quoted tho party is abso-
Htcly deniod tho power to acquire sny rights
though tho contract, whe IN tho case OF the
Land Company, the appellee, there ia power to
purchase aud receive title to lands. but only for
a particular PURPOSE In tho tirnt case, tho priu-
ciplc aGects tue power to acquire; III the other,
simply tho use to which the acquisition shall be
tut.
The Company having rowor to purchase and
hold lands, aud uougl llasin6 caI,nc!ty to co,,-
voy tho title. tho UUurt decides that tho title
wna vested In tho Company by tic delivery OF
tho deed, aud tAat tho question WhotEor the
Company had by the purchaao and uBe oxcecded
ita charter poWota wab ops simply between tho
Stato and tho Company With which liuugl as
Erantor had nothing to do.
The decree was accordingly affirmed.
Walker, Ch. j., hold that tie Company ox-
cocdod their powcsB IN purchasing tho lnnda,
nnd should DO held to have taken tito by Tho
Purchase.
Lrman Trumbnl for Hough; George ".
6uittl for the Company.