The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1898-11-25

Car wheel company, the Pullman Iron
and Steel company and the Pullman
Palace Car company OF Atlanta. Ca
II ~manipulates and controls the az
fairs OF Pullman. and exercises powers
and privileges Incident TO a municipal
corporation organized under the laws
Of the state rather than those rights
and privileges OF a private corporation
conferred upon II by its charter.
All this In spite of the fact that the
courts Of Illinois have defined the ex-
press and incidental powers OF coroor-
ations as follows:
Corporations can only exercise such
powers as may be conferred by the leg
islative body creating them. either in
express terms or by necessary mph-
cation. and the implied powers are pre-
sumed to exist to enable such bodies
to carry put he express powers grant,
ed and to accomplish the purpose OF
their creation"
Chief Justice Marshall. the sage OF
the United States supreme court, ju-
dicially described a corporation as IAN
artificial being, invisible, Intangible.
and existing only In contemplation OF
the aw. 1t possesses only those powers
which h charter OF Its creation con-
fers upon IL. either expressly or as IN
cidentai to its very existence"
Under the laws OF Illinois II IL con-
tended on the part OF the state that
no more land may be owned by a cor
porat1on than IL necessary for carry
ing out the express powers granted,
or those necessarily implied.
In his assault upon the Pullman COM
pany the ex-attorney general main
tanned that the violation OF the re-
strictions placed upon IL were so man.
fest n far reaching that Its charter
should be declared forfeited.
Already foul years W. passed since
the action was instituted before Judge
Baker. The company came into court
with a set of pleas, against which a
demurrer was hled. and this was sus-
tanned by the lower court. except as
to the control by the Pullman company
of side companies. The case was
t%hereupon moved up to the supreme
court. where the holding OF Judge Ba-
ker was overruled and the issue re-
manded to the circuit court for trial.
The majority OF the members held
that the Pullman company was "ex-
ercising poweers and performing acts
not authorized. either by the express
grant of the charter or any Implication
OF law. and further, that by some OF
such unauthorized acts the corporation
assumes and exercises powers and
functions which the general law OF
l III Eldlt toIttlflDlAltE Ehail bt Rtr-to"
sed and exercised only by municipal
authorities OF cities and towns and the
public school authorities, and that 9Th
er OF Its Unauthorized acts tend to re-
strain competition In various branches
OF trade. to remove real estate from
the operation OF u statute of descent
and place the title thereto I'm a corpor-
alton having perpetual succession and
amending existence. and thereby with
draw IL from the chanel OF trade and
commerce.; to create monopolies In the
bushes OF selling the necessities and
concerns OF life. and that its acts and
doings are opposed to good public pol
ICY"
The defense OF the company rests
mainly on the fact that the rights Of
the state are asserted at rather a late
day, and on the claim hat acauies-
cence has confirmed the legality OF
these muitifarious Investments and OPP
erations.
As to this. the ex-state attorney
contended that mere acquiescence on
the part OF the state Is no defense to
that III the state merely neglects TO
institute proceedings h corporation
will. of course. continue to hold its
franchise until the state may choose
to enforce q dissolution"
The supreme court held. on this
point: w do not think the demand
OF the sovereign people that usurpa-
ton SO clearly antagonistic to good
public policy shall be restrained. can
be defeated by any imputation Of lach-
es or upon the ground h q acquies-
cence Is to be inferred from the fall
ure TO invoke the aid of the courts at
an earlier day"
The effect OF the decision OF the SUI
preme court, IL Is a~scertained. may be
suspended or defeated. Nothing can
come OF. the action. 50 long as the at
torney general remains Indifferent or
inert.
on the other hand. any ultimate de-
cision-and this Il a remote and Wis
ionary neutrality-suspicious. a disposal
of any part OF the Pullman estate
would result In the stockholders bid
ding IL in and the probable secret
manipulation OF the town by anoth-
err system. IL In altogether likely that
the subject viii receive considerable at
tention from the next legislature
Chicago Chronicle.