Omaha daily bee., 1895-06-02
BIG VICTORY FOR PULLMAN
Suit to Annul the Charter Ends by q
Friendly Decision.
WON EVERY POINT AT ISSUE BUT ONE
Company Has Right ito Own Its once
building In Chicago and to Maintain
Its Town Nearthe Big City
on the Lake.

CHICAGO, June 1.-Several months ago
Attorney General Moloney began quo war
ranto proceedings against Pullmans Palace
Car company for the purpose OF taking away
the company's charter and terminating its
corporate existence In his Information the
attorney general set up that the car COM
pany had violated its charter by buying real
estate ana building the town of Pullman by
erecting and operating the Pullman building
in this city; by manufacturing brick and in
other ways The case has been pending in
the courts ever since. 1t was elaborately
argued some time ago, and Judge Baker
handed down his decision today. The deci-
sion was favorable to the company in all
points but one. The court held that the
company had the right to own the Pullman
building, the brick yard and to sell liquor on
cars, but had no right to own Pullman Iron
and Steel company stock No judgment was
entered against the company.
1t is under itOod that the company will ac-
cept the finding Of the court in the matter of
the stock in the iron and steel company and
will at once dispose OF it.
Judge Bakers opinion is a long and ex-
haustive one. fully considering each of the
usurpations charged and discussing the law
applicable to them. He lays down that
under its implied powers the company had
full authority to do all it was claimed that
1t had done, except as to the stock in the
small subsidiary company. As to the funda-
mental question of the right of the company
to build and own the town OF Pullman for
the purposes for which it was built and
owned, the position Of the company was fully
sustained in every particular. The decision
is regarded by the Pullman officials as very
important victory for the company and a
complete justification OF its action in the es-
tablishment and ownership of the well
known town which bears the name of its
founder.
incidentally Judge Baker held that the
company exceeded the power granted by its
charter in buying twenty-three acres of land
which IL 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
the right to build houses and sell to its
employees: to erect churches and school build
ings in Pullman and to own land for switch
ing and car storage purposes.
The ruling of the court does not affect the
company to any material extent. The inter
ests touched are said to be worth not more
than $50, 900, which is an insignificant sum
to a corporation with $50 900 900 capital and
s25, 100000 surplus. The decision is, In ef-
feet, a declaration that "a corporation may
engage in any business which may be con-
sdered as advantageous or merely an ad-
junct to the business specifically set out in
its charter without violating the law or eN-
ceeding its corporate powers Thus the
court holds that the company had to erect an
Office building which would be large enough
to accommodate it's, business for years to
come, no matter how considerable the in
crease, 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.
Tho sale OF liquor In dining cars was de-
clared to be desirable and necessary accom-
mediation for the comfort and convenience of
the persons travelling in the cars. The con-
struction of the town Of Pullman is said TO
be part Of the general plan of operations Inn
piled in the leompany's charter. and therefore
falls within the power and province of the
corporation.