The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-06-02
The Corporation Can Own the
Town and Operate 1t
Regardless.
WINS ALL BUT ONE POINT
In One Instance the Power Con-
ferred In the Charter Is
Exceeded.


months ago Attorney General Maloney be-
gan quo warranto proceedings against the
Pullman Palace-car Company for the pur-
pose of taking away the company's charter
and terminating its corporate existence.
In his information the Attorney General
set up that the company violated its char
ter by buying real estate and building the
town of Pullman, by erecting and operat-
ing the Pullman building in this city, by
manufacturing brick, and in other ways.
Judge Baker handed down a decision to-
day favorable TO the company in all points
but one. The court held that the company
had the right to own Pullman iron and
steel stock.
Judge Bakers opinion is 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 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 purposes for
which it was built and owned the position
of the company was fully sustained in
every pdAtACuldA'
The decision is regarded by the Pullman
officials as very important victory for the
company and complete justification of its
action in the establishment and ownership
OF the well-known town which bears the
name of its founder.
incidentally Judge Baker has instructed
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 de-
cided, 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 employees; to erect church and
school buildings in Pullman and to own
land for switching and car purposes.
The ruling of the court does not affect
the company to any material extent. The
interests touched are said to be worth not
more than $4,000, which is an insignificant
sum to a corporation with $50, 600, 900 CAP
ital and $25, 900, 600 surplus.
The decision is, in effect, declaration
that corporation may engage in any bust
ness which may be considered an adj
VantageouS or necessary adlunct 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 accommo-
date its business for years to come, no
matter how considerable 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 liquor in dining-cars was de-
clared to be a desirable and necessary
accommodation for the comfort and con-
venience of the persons travelling in the
cars.
The construction of the town of Pullman
is said to be part of the general plan OF
operations implied in the companys char
ter, and therefore falls within the power
and province of the corporation.
The case will be taken to the Illinois
Supreme Court. If that tribunal sustains
Judge Baker the company will go on with
its business undisturbed and with its
methods of business practically unchanged
by the suit of the Attorney General.