The Yazoo City Whig. [volume] (Yazoo, Miss.) 1844-1851, 1845-09-05


urantOr Without their giving any remunera>
tion for it; and hence the Law. 70 prevent
from abusing the geneross
i,v Of their patrons-and TO make il obli
aatory upon them TO apply the property sole
" to the purposes for which Il was given,
annexed a condition TO every such grant.
that if the grantees did not act bona fide, and
appropriated the property to any other use
than that for which It was given, they should
forfeit all right and title to it, and il should
revert to the origiuOl grantor. And is this
not Just and equitable2 For we repeat il
that ii is an indispulable fact, that the cor
oorations were endowed Of most of their
real estate, and that the rule Of The common
law resulted as natural consequence from
this state of things, TO prevent fraud and in
Justice. The law affixed this forfeiture as
penalty for the misconduct of the corpora
tons, and 10 insure to the grantor, that his
generous and phllanthropic views should be
carried out. Here no one is injured, nor
is any one enriched by the misconduct Of
the corporations the grantor merely receives
back what he gave, and that which in equi-
ty and justice belongs 10 him. That "the
personally should escheat TO the king, is ais
so right and proper. and is made a penalty
for the misuse Of those exclusive rights and
privileges which the king had granted
10 the corporation; rights and privileges
which were part Of his own prerogatiye
and which he alone could grant. The ses
cond part Of the rule sage: "The debts Of
corporation, either to or from it, are total.
| ly extinguished by its dissolution, SO that
the members thereof, cannot recover or be
charged with them in their natural capaci.
ty." This also is right and proper: and we
say it should apply TO every corporation, be
it banking Of Of any other descriptions But
that 'the debts to andsfrom corporation
are totally ertinguisked by its dissolulion,a
as the Briscoeites contend, We shall endoa
vor 10 prove 10 be false, and principle
which was not known to the commonl law.
In Wood vs. Dummer. g. Mason's Rep 3Oss)
Judge Sorry laid il dewn ps a principle of
the common law, 'sthat the apital stock was a
trust fund forthe payment Of banks notes,
and thatupOn the dissolution Of the corpora
ton, the holders Of The notes might follow
This fund into the hands Of the stockholders
or Of any person having notice Of the trust
ATTACHED TO it, Does not this decision
fully explodesihe doctrine of these thew
light - teachers Of the common law, the
Briscoeites9 That the debts TO and from a
corporation are totally extingIished by its
dissolution, so that the members thereof
cannot recover or be charged with them in
their natural capdcitics,' = is a true PROPOSE.
ton; for the very object of their incorpora.
lion is to free themselves from all individual
liability for the debts Of the corporation, and
this freedom from individual liability is one
of the privileges and franchises granted L
them in their charter. Ii is a rule founded
in good policy: for We know that corpora
sions, as a general thing, greatly assist il
building up end sustaining The commercial
and political prosperity of a nation, but wis
would become stakeholder in one, If h
knew that all his private property would b.
bound for its debts
Now let us see how the common law doc
irine of forfeiture would operate If apple,
f 10 the banking corporations in this country
As applied TO the corporations Of England ",
found il 10 be saIutary measure, dictate,
by principles Of sound policy, and used on
ly as a preventative against fraud aud dis
honesty; there might have been some case
! in which il operated as hardship, but ihes
were only exceptions TO the general rule
which we found 10 be equitable and Just il
all its consequences. But the rule as ap
/ piled 10 banking corporations in this conn
) try is marked with fraud and dishonesty,
ruinous, disastrous and inequitable in il
consequences. According to The rule whic
the Briscoeites contend for, Il bank pul
) chases plantation Of A. and pays him fC
il in her notes, which serves the purpose
/ of a. as we'll IS gold Or silver, and som
time after. the bank forfeits her charter, th
plantation TeyeFts % A. sOithoat his payin
/ one cent for e, whilst ihe innocent holder
Of tbe notes which A Teceivee for lis plal
II fation. lose af T.his evamnle rnffieientl