The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1892-07-21

jersey is composed OF two companies, the
powers granted to which are set ouc
in the Information. That has not been
contr ldicted. The object and purposes
of the Bound Brook Railroad are also set
out IN the public laws OF the State. The
whole case from beginning to end sd mits
that he Port Rea lug Railroad WAS
chartered for IA specific purpose, and That
the whole power coufided t. them BY the
sovereign was q power to do the work,
which was simply to be a spur and outlet
to the Pniladelphia aud Reading Rail-
road, which they were authorized aud
chartered to do, n | know of no law or
any combination by which u creature
can assume more power than the creator
has given 1t Now it is admitted that
this sinai road of twenty miles was
built but for one purpose.
at is avowed by Mr.. Mcleod In his re-
port that they promoted and intended TO
control the Port Reading road: that they
bought q terminal OF many hundred acres
for the purpose of making 1t an outlet. ir-
respective of other railroads, for their coal
to the w tiers of New York. IL was for
that purpose, and that alone, so nv
friends have argued, SO the W state,
so the atfidavl.s say, so Mr.. Mcleod re-
ports, and to that every fact in the case
points. This railroad then has but one
! object given to it by Its creator; and yet
the fact is, that that little vermilion line,
| Philadelphia and Rsadtug dog, but
ways all three logs. The fact
stands here admitted hat the Port
Reading Ratlroa | Company. without con-
siderinR ut this moment who built 1t, Is
| the controller of the Whole combination,
is The master of he situation. Although
chartered for SO small a purpose 1t has
become the controller of all the coal roads
that cross New Jersey. aud all the coal
companies they own. Railroad compan-
les that disclaim responsibility for the
acts of the coal companies who stand out
side of the State. defy ths power OF the
State aud its Courts. This little Port
Reading road is the link which binds the
combination, hat controls the great coal
roads and the coal companies.
THE STATE H SOURCE.
where does the power come from? 1t
cannot rise higher than It's source. Thu
fundamental law OF corporations is that
they can exercise no power but that
which is expi City granted. and that
they cannot violate either their duty to
the public or the stockholders. They
cannot assume duties with (which they
are not charged. A power to lease can
only be to lease in accordance with the
law of its existence; 1t cannot be claimed
that the WORT lease Is a cabalistic word,
which authorizes corpor ttions to change
the whole character of their enterprises.
| and do acts which ihsy have not power
to do separately, or when united to-
gether."
The Attorney General then called the
attention of the court to the points upon
VIII Gu he based his argument, as fol-
lows:-
First. A court of equity has jurisdic-
ton at he suit OF the State TO enjoin q
wrong common to the whole public, and
the Attorney General may institute pro-
ceadinRs, whenever a corr GRAFTON Is GO
ing beyond It's snectal powers, even
though no direct Injury has been done to
the pub ie.
"Secoud. The courts will interfere by
Injunction to prevent railroad companies
from leasing their roa IS without author
lty of law.
"Third. The doctrine of the cases bad
baen acknowledged by the courts of New
Jersey and applied to the Central Rail
road Company.
ULTRA WIRES.
Fourth. The contract between the
Central Railroad Company and the Port
Reading is ultra wires.
cit Bis without authority OF law. be-
cause, first, there is no power under the
amendment of 1880 to lease branches
leased roads, ferries and telegraph lines.
Second. The lease is illeg Il because it
has not the approval of the Stockholders.
Third. The philade piia and Reading
has no right to operate the Cent,a', be-
N1kA9S kAs.@ ksS
ment Of 1880 to a lessee.
Fourth. The amendment of 1880 can
not be construed to authorize foreign
corporations 10 lease railroads in this
State, because the object IL not express d
in the title of the General Railroad
Law.
The P~hiladelphia and Reading is the
party in interest MS we'll as the guarantor
aud will be considered In equity as the
lessee, and the contract treated MS a lease
to q foreign corporation and in violation
Of the It of May 2. 1885. which forbids
the leasing OF roads to foreign corpora
tions.
Neither the answer nor afidavits ira
verse the substance OF the charges III tie
Information.
"Tbe contract is void, because In unrea-
son able restraint of trale, aud therefore
contrary to public policy.
1.-The lease is Invalid because not &C.
knowie ige and filed as required by the
statute.
"The State need not prove injury If the
act is Illegal and tends to the Injury of the
public.
Fifth. The measure of relief to which
the State is entitled is sucn as will i'm
medialely prevent the continuance of the
illegal acts complained of and protect the
public from existing wrong ana impend-
ing danger"
The ATTORNEY Generals argument will
be concluded this morning.