Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1819-11-09
MAIL ARTICLES.
s..s.s s..s.s.
From ihe heRLnchn Rep0rier.

/
| Richard NJ. johnson, and by said johnson as
sisu"d 10 the President, Directors aud Com
| pany of the Bank OF the United States. This
| corporation commenced an action against The
H. fendant on petitionan summons, In thc
| tayette Circuit Court, retuTnable To the pre-
sent term. demurrer was flied by The lie.
fenddnt. under the ninth section Of the charter,
! which br0ush t before the court the question
whether or not the Institution las "a right 10
! deal IN promissory notes; and other ninis were
treated of, which are tully exhibited in the u
p'nion OF the Hon Benjamin Mills, as given in
This paper. Blair and Butler were of council
tor the bank. Bledsoe. Eaygu and Ham
phrey Sfer the defendant
Ii is proper here TO observe that the defen-
dabt ouid not have suffered snit TO be brought
a. lnst him, bat for a bank Teuuisition which
lie deemed unreasonable, unjust and without
the pale OF the powers of the bdnk directory
And tle defendant does not intend 10 avail
himse,f, as we believe, of amy legal advantage
he has obtained.
The President Directors and Company of the
BaaA OF the NlaieS rs Joshua Norvell.
! lie cuurt BEING how sufficiently advised of.
ana coutrFt'hg The demurrer OF the defendant
to Tie petition, delivered the following Opn-
ion, TO wit:
The plaintiffs set out uote made by the
defendant in favor of John L. Sidson, aud by
nun assigned lei Richard NJ. Johnson, aud by
Johnson assigned TO the plaintiffs, in their
corporate capacity Thus they shew their til
| tie 10 support the legal averment in the petit
ngnDri-
| etOrs thereof. The note, on its face, Is made
| payable at their Office of discount and depo-
! SIT in Lexington From thiS statement. Ia
| ken as the records presents IL, the pianti.ls
| have become the purchasers of the note in
! question, and the following questions have
! been made aud debated al the bar Are the
| plaintiffs allowed by their charter to pun chase
tile noteG and II they are uoi, as they possess
| II, can they hold such property therein as will
/ authorize thiS sUii TO recover tne amount, aud
| they remain subject IN the penalties inflicted
by their charter! Or in other words, have
| they acquired title which must remain uu-
! InpeaChed, not being eA presSly declared void
! While the only redress is an infection OF the
| penalty Tor the breach of the charter? The
| court " VI proceed to anSwerfthese queries. 1t
| l. d sound rule with resp'c ct to corporations
created BY statute, land none III this country
Can be created IN any other way) that they
can only ACT III the manner prescribed By law.
| Ihey are the mere creatures OF the acts To
winch they owe their existence. They must
be pIec tSs what the incorpo ting &C Is ma Sc
| them, y deIive all their powers from these =,
ana De Incapable Of eAcrIlug their functions
I In ANY other manner, than The acts al
! low. Inis principle is strongly recOg Missed by
| Htgh autLorIty-Isec z Ctanct i27 lead and
| Armory VS. Prov. Ins. CO.. Johnson's rep. iU9
Beatty " Marine Ins. Co Taking This rule
| TOR guide. The court will proceed TO examine
tue incorporating act OF the United States
| bank. lis powers delegated and capacities
| granted III the It'll SectiOn, are indeed ample
! II Is made" able and capable in law. TO have,
| purchase, receive, possess enjoy. aud retain,
| lands, rents, tenemeutS, Entertainments, goods,
| chattels and effects OF whatsoever kind nature
| aud quality" But these powers are in the
| close OF the section made subject 10 the rules
regulations restrictions, ana provisions
therein after prescribed and declared, OF
! course, what follows must form the de-
| NARRATION OF power and capacity. If this
| section, with such AN ample grant, TO
| have no restriction, the corporation with such
| ample means instead OF bein. the Handmade
nnInh. hac ,Nf
| me sovereignty which created it. Tie debts
| payaDIe III property of every embarrassed iii-
| dNlunai might be procured at fearful dis
| count. Estates sold under execution might
| soon be engfossed by the bank DIT large sacrI-
| hceS, and disposed of at large advances. The
| evils OF such a corporation existing. may be
| more easily conceived than expressed. The
court then wHl take what follows as the true
limits of powe>. The 9Th article of The IIlh
| section declares, that the lands IL shall hold
arc ouiy such a. shall be requisite for lis Rmedi-
/ ate accommodation IN ret'ifiOn 10 The C0Hrtuiem
| TdnSdctt1S Of its business and suck shat be
| MOI gagged 10 II by Cdy gt security, or cORreypd
an tie Satisfaction Of debts previously contracted
ca the course Of its Dealings, or purchased ut SaleS
| uToH judgments Whick shat hure been obtained
for such DEBTS" II the bauk should acquire
! lands IN any Other mode. or for any other par
pose, than this article allows, would its lille
| be Ndlid! lhe court pIeSumes not. COnse-
| Iuehtly among the same articles adopted for
| lis government Tie court will look fUr its pow
|
tate Accordingly, in the 9th article of tie
same sccuoH, this emphatic restriction is
found " The said corporation shall not d.
Tecfy nor indirectly deal OT trade az dHy thing,
except blls OF exchange, gold or silver bull
lion, or III the sale of goods really and truly
pledged tor TnOlPy lent, and not redeemed in
due tune, CT goods which shall be the proceeds
Oiilts lands" " Ow the note in question is not
| DiIO exchange, nor indeed a qHusi bill. Pro-
missofy notes IN this state are made assgna-
pie shiJect 10 the enquiry or defence attach
ed TO item 10 The hands of the original pay
ees. Only those dctnatiy discounted by tie
| bank of Kentucky, or other banks whose
charters contain the same express provision
are placed Ou the footing Of foreign bulls OF eX-
! change. Their consideration, aud The con-
SideraiiJn supposed 10 pass between each
d>SiSuOr aud assignee, Is Contestibie and
40 person is eSiopped by ihe application
OF tie law merchants 10 set up defence
against the validity OF the uOle or the endorse.
mcni thereof, as lie would be in the case of a
bill OF exchange. The charter under cOnsi-
deration gives not tile notes held by the cor
poraiiOn the dignity of bills Of exchange
OF course, they are subject 10 The of ;the
| place where the contract is made. = ne note 10
question cannot come under the other deDOmi-
! nations OF Chdttels described in the article
last reciied, to wit gold or silver bullion or
goods really and truly pledged tor InoneS lent
aud not redeemed in due time for no pledge
Is. alleged or pretended. On The contrary,
| absolute ownership - averred and relied OH.
On course, tie court concludes that the
bank was not permitted to purchase the note
IN question. Nor will any construction put
upon the words deal or trade, authorize them
To do so. These words II il true, mean bayiag
and selling these articles; and If the bank Is
prohibited from doing both either must be IN
, cimdedln the same prohibition. Nor will the
. concluding expressions " for or upon lis ioaHs
or discounts" give tie authUrity-tor they age
authorized TO loan the articles which u Is A.
, owed TO hold, aud TO issue bills of credit in
= ! another part OF tie chatter-and as 10 It's dis
. | counts ii IS peculiarly applicable % bills OF *
| ChMnEe NLiclI N my laNalnllA LnA and III =