Pittsburgh Library Ass'n v. Mercantile Library Hall Co.

Citations

• 189 Pa. 479
• 42 A. 142
• 1899 Pa. LEXIS 674

Syllabus

<p>Corporations—Trusts and trustees—Pittsburgh Library Association—Mercantile Library Hall Company—Acts of March 18, 1859 and February 3, 1870.</p> <p>The Pittsburgh Library Association was incorporated on February 12, 1849, under the name of the Young Men’s Mercantile Library and Mechanics’ Institute, “ for the purpose of promoting and encouraging general information upon commerce, manufactures and the mechanic and useful arts.” The Mercantile Library Hall Company was incorporated by the Act of March 18, 1859, P. L. 811, which provided that it should be the duty of the corporation as soon as a sufficient amount of stock had been subscribed to purchase ground and to erect thereon a library building suitable for the use of the Young Men’s Mercantile Library and the Mechanics’ Institute, and that when this building was ready for use it should be perpetually leased to the Young Men’s Mercantile Library and Mechanics’ Institute on certain terms. The Hall Company erected the building, but the Library Association did not lease it. On February 3,1870, an act was passed which provided that the Hall Company might lease its grounds and 'buildingto the Library Association on such terms and conditions as might be agreed upon between the respective corporations. In 1871, an agreement was entered into by which the Hall Company was to retain possession and control of the building, and rent to other parties the portion of the building not occupied by the Library Association. This agreement recited that the Library Association was not able to assume the obligations of the lease contemplated in the charter of the Hall Company. It was provided that the agreement should be ratified by the stockholders of the Hall Company, but such ratification was never obtained. A large debt was incurred by the Hall Company in the erection of the building. In 1890 this debt was refunded, and shortly thereafter one B. obtained a controlling interest in the stock of the Hall Company. The Library Associa