Cottonwood report. [volume] (Cottonwood, Idaho) 1893-1901, 1895-06-14
PULLMAN SUIT ENDED.
Decision Regarded as a Very
Important Victory.
EsFORABLE TO THE g0MPANY
The Position of the Company Was Fully
Sustained in Every Particular,
Excepting One.

Chicago, June 4.-Several months
ago Attorney General Maloney began
quo warranto 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
chad violated it's 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 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-
lishment 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 it's charter in buy
ing twenty three acres of land which il
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 it's tenants in the towns Of
Pullman; to build houses and rent
them to it's employees; to erect churches
and school buildings in Pullman an6
to own land for switching and car pur
poses.
The ruling of the court does MOI
affect the company to any material ex
tent. The interests touched are sale
to be worth no more than $50, 200
which is an insignificant sum to cor
poration with $36, OO0,O 900 capital ant
$25, 300, 900 surplus.
The decision is, in effect, declara
ton that corporation may engage il
any business which may be considered
an advantageous or necessary adjunct
to the business specifically set out il
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 t.
accommodate its business for years tt
come, no matter how considerably thu
increase, and had the right to rent il
the meantime such portions of tn,
building as were not required for tn,
company's own use. The sale of liz
uor in the dining-cars was declared tt
be desirable and necessary accommo
dation for the comfort and convenienc,
of persons travelling in the cars. TIL
construction of the town of Pullman i
said to be part of a general plan o
operations implied in the compan,
charter, and therefore falls within tn
power and province of the corporation
The case will be taken to the Illinoi
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.