The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1895-06-02
PULLMAN COMPANY WINS.
The Proceeding Instituted to Revoke
the COmpany's Charter.

the COmpanys Charter.
Chicago, June 1.-Several months ago
Attorney General Maloney began quo
warranto proceedings against the Pull
man Palace Car company for the purpose
of taking away the company's charter
and terminating its corporate existence.
In his information the encouragement
set up that the company violated the
charter by buying real estate and build
ing the town of Pullman; by erecting and
operating the Pullman building in this
city; by manufacturing brick, and in
other ways. Judge Baker handed down
his decision today, favorable to the COM
pany in all the points but one. The court
held the company had no right to own
the Pullman iron and steel stock. 1t Ia
understood the company will dispose Of
the iron and steel company stock.
Judge Bakers opinion is a long and
exhaustive one, fully considering each
of the usurpationS charged and dis
cussing the law applicable TO them:
He lays down that under its implied
powers the company held full author
ity to do all it was claimed it had
done except as to the stock in the
small subsidiary company. AS TO the
fundamental question of the right OF
the company to build and own the
town of Pullman, for the purpose for
sition of the company was fully sus-
tanned in every particular. The de-
cision is regarded by the Pullman Of
ficials as a very important victory for
the company and a complete juStifica-
ton of it's action in the establishment
and ownership of the well-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
buying twenty-three acres of land
which it has not used in its business.
The company 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 town of Pullman; to
build houses and rent them to its en-
ployees; to erect church and school
buildings in Pullman and to own land
for switching and car purposes.
The ruling of the court does not af-
feet the company to any material eX-
tent. The interests touched are said
to be worth no more than $50 900,
which is an insignificant sum to a
corporation with $50, 900, 900 capital and
$4,000 surplus.
The decision is, IN effect, a declara-
ton that a corporation may engage in
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 it's corporate powers. Thus
the court holds that the company had
the right to erect an office building
which would be large enough to &C
commodate its business for years to
come, no matter how considera BILE the
increase. and had the right to rent
out, in the meantime, such portions of
the building as were not required for
the company'S own use.
The sale Of liquors in dining-cars
was declared to be q. desirable and
necessary accommodation for the COM
fort and convenience of the persons
travelling in the cars. The construc-
ton of the town of Pullman is said to
be part of the general plan of opera
tons implied in the company's 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 it's methods of business prac-
tically unchanged by the suit Of the
attorney general.