Condon globe. (Condon, Gilliam Co., Or.) 189?-1919, 1895-06-14
PULLMAN SUIT ENDED
Decision Regarded as a Very
Important Victory.
is FAVORABLE TO THE COMPANY
Sustained in Every Particular,
Excepting One.

Chicago, June 4.--Several months
ago Attorney General Maloney began
quo warfanto proceedings against the
Pullman Palace Car Company, for the
purpose Of taking away the company's
charter and terminating its corporate
existence. In his information the at
torney general set up that the company
had violated its charter by buying
real estate and building the town of
Pullman, by erecting and operating the
Pullman building in this city, by man
ufacturing brick, and in other ways.
Judge Baker handed down a decision
today favorable to the company and
all its interests, but one.
The opinion is long and exhaustive
one, fully considering each of the usur-
pations charged and discussing the law
applicable to them. He lays down that
under its implied powers, the company
had full authority to do all that it was
claimed that it had done, except as to
the stock in small subsidy company.
As to the fundamental question of the
right OF the company to build and own
the town of Pullman, for the purpose
for which it was built and owned, the
position of the company was fully sus-
tanned in every particular.
The decision is regarded by the Pull
man officials as very important vic
tory for the company, and complete
justification of its action in the estab-
hshment and ownership of the we'll
known town which bears the name Of
its founder.
Incidentally, Judge Baker has in
structed that the company exceeded the
power granted by its charter in buy
ing twenty-three acres of land which it
has not used in its business. The COM
pany, however, had and has the right,
Judge Baker decided, to construct the
big office building at Adams street and
Michigan avenue; to sell liquor to its
patrons in dining-cars; to supply water
and gas to its tenants in the towns of
Pullman; to build houses and rent
them to its employees; to erect churches
and school buildings in Pullman and
to own land for switching and car pur-
poses.
The ruling of the court does not
affect the company to any material ex-
tent The interests touched are said
to be worth no more than $4,000,
which is an Insignificant sum to cor
poration with $50, 900, 600 capital and
S95 hhh 000 surnluS
The decision is, in effect, declara-
tion that a corporation may engage in
any business which may be considered
an advantageous or necessary adjunct
to the business specifically set out in
its charter, without violating the law
or exceeding its corporate powers.
Thus the court holds that the company
had the right to erect an office build
ing which would be large enough to
accommodate its business for years to
come, no matter how considerably the
increase, and had the right to rent in
the meantime such portions of the
building as were not required for the
company's own use. The sale of liu-
nor in the dining.cars was declared to
be desirable and necessary accommo-
dation for the comfort and convenience
of persons travelling in the cars. The
construction of the town of Pullman is
said to be a part of a general plan of
operations implied in the company
charter, and therefore falls within the
power and province of the corporation.
The case will be taken to the Illinois
supreme court If that tribunal sus-
tains Judge Baker the company will
go on with its business undisturbed,
and with its methods of business prac-
tically unchanged by the suit of the at
torney general.