Southport telegraph. [volume] (Southport, W.T. [i.e. Kenosha, Wis.]) 1840-1850, 1846-02-10
REPORT
Of the Judiciary Committee on Bill No. %
House file.
REPORT

In Council = January "a, 1916 - Read
and 500 copies ordered TO be printed.
THE Committee on the judiciary TO whom
was referred bill No. %, of the House OF
Representatives file, entitled ga bill 10 re-
peal an act entitled 'an act to incorporate
the Wisconsin Marine and Fire Insurance
Company" approved February %. 1899,
REPORT:
That the committee have considered the
subject referred to them with an anxious
desire to do justice to the company to be af-
fected by the passage Of the bill, and do not
intend TO express any opinion as TO the pro-
priety ofrepealing the charter of the compa-
ny; but supposng that IN referring the bill
TO the committee,it was the intention Of the
Council to obtain an opinion as to the right
and power of the legislature to pass it, or in
other words to ascertain the opinion of the
committee as to IFS eflect,E it should become
a law, they have confined their invesGga-
tons to this point, without at all enquiring
whether the operations of the company
are beneficial or injurious TO the public.
The objection to the right Or power of
the Legislature TO pass the bill and give it
the force and effect of law, is, that it impairs
the obligation ola contract entered into by
the legislature, and contained in the act
sought 10 be repealed. That an act OF a
legislature containing grant of certain
| franchises, to one or more persons, and re-
quring ofsuch person or persons, the per.
formance Of certain acts in case they accept
ofthe grant of the franchise, is contract,
the committee think is too we'll settled to
admit ola doubt. The committee think it
equally certain that when such an act has
been passed by State Legislature, and in
dvduals have entered into possession Of
the franchise granted, and performed the
acts required Of them, such legislature can
not take away the franchise granted without
the consent of the grantees, unless the pow
er to do so is reserved by the leg stature in
the act granting the franchise. The grant
of the franchise upon certain conditions is
in such case contract, and law which
would take away the franchise, would be a
law imparing the obligation of a contract
which no state legislature has power to
make.
The committee have not attempted to
discover whether the legislature the Ter
riory stands in different position in re.
gard to this subject than that occupied by
the legislaturee ola state, it might be plaus-
ably argued, that as the prohibition upon
the Legislature OF Safe is contained in The
constitution of the United States, and is by
It's terms applied only TO states forming he
Union, the lesislatnra Of the territory has
the power to pass law impgiring the obi.
CATION Of contract, and that such law
would have the same effect as though the
constitution Of the United States had been
silent on the subject; but as Congress in de-
fnlng the power Of the Legislature of the
territory has confined it to rightful subjects
of legisiation,it may we'll be doubled wheth,
er considering that courts and elementary
writer's condemn such laws as violations Of
the moral code as we'll as of the constitu-
ton ofthe United States, they would be
considered as among those which we have
the power TO enact.
The committee express no opinion on
the subject, as in their opinion the legisla-
ture has the power 10 pass the bill referred
to them Cor other reasons, and on other
grounds.
The act TO incorporate The company,
which is sought TO be repealed, was passed
on the 2Stb of February, 1899, and that
part Of it which defines the powers Of the
corporation contains the following provis-
ons-after giving 10 it the general power
TO insure, the following language is used
50 This corporation may likewise receive
money on deposit, and loan the same on
bottomry, respondcnla or other satisfactory
security, at such rates of interest as NAV be
done by individuals, by the laws Of this Ter
ritory, il may also make insurance upon
life or lives. and employ ali such capital as
may belong or accrue to the SAID company
in the purchase ofpublic or other stock, or
in any other monied transactions, or opera
tons for the sole benefit of the .lid compa-
nv, and in general the said company may
transact all business usually performed by
insurance companies: provided nothing here
in contained shall give the said company
banking privileges :"
The committee are of the opinion that
the words contained in the above extract
| from Tic act Incorporating tuC company
would contain grant of banking powers, if
the legislature had possessed the power TO
make the grant, wthstanding the pro-
viso.
Ii will be perceived that among the pow.
ers given TO the company is the power 'to
receive money on deposit and loan the
same" These words would invest the COM
pany with all the powers of modern bank
excep, that of issuing their own notes; the
ant of these powers is specific, and no
language could be used more appropriate 10
convey banking powers than those employ
ed by the legislature. ToreceiVe money
on deposite, loan it and invest the capital
ofthe company in ''public or other Stock"
BY an incorporated company, is performing
| all The functions which any Of the banking
institutions ofthe country now exercise. with
the exception above stated, and is quite all
attempted. to be performed by savings banks.
The proviso TO The section of the act in
which the powers Of the company are de-
fined, is repugnant to the section, if taken
to mean, that all banking powers are with
held from the company,a and is therefore void.
EoruaarIy II was held that If a Droviso was re-