227 F. 494 | D.N.J. | 1915
Clearly part of these activities by the lessor went beyond such as were reasonably necessary for the protection and preservation of the property included in the lease as existing at the time of the execution thereof, and farther than was requisite only to enable the lessor to live up to the covenants of the lease with respect to such then existing property and yet refrain from engaging in business. Buying and selling pieces of real estate, applying for and obtaining valuable franchise rights, and so substantially extending routes, meant changes in the quantity and value of the property owned and in existence when the lease was made. They represent the exercise of vital, active, corporate forces by the lessor in effectually, at the instance of the lessee, adding to or changing its properties which had been leased. Thus the attitude of the owner became, not that of an investor, who leases all its property and does nothing except to preserve the property leased, guard its titles, collect its rents, and distribute them, but rather that of one who, alive to business opportunities, adds to its principal properties, exerts itself to dispose of some investments, to make others, and in co-operation with or at the request of the lessee, does all with a view to enhancing the value of the leased estate. The case is, therefore, outside of the rule in McCoach v. Minehill Railway Co., 228 U. S. 295, 33 Sup. Ct. 419, 57 L. Ed. 842, in that such a lessor is doing business. A lessor corporation, which transfers its business as it exists to-day, yet in doing so preserves a right to ex
Defendant is entitled to judgment.
<&wkey; For other cases see same topic & KEY-NUMBER in all Key-Numbered Digests & Indexes