Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1859-05-28


trustees of that Institution had acquired real snt
personal estate by donation and otherwise after the
gcaatOy the crown; that the grant was contract be-
tween the crown and the trustees the consideration
Of which contract was the public good and that nc
State had the right to pass any law impairing the
obligation Of contract 1t vas also declared
that the legislatures OF the States co1ld repeal the
charter Of towns, such as Nashville New York, New
Orleans, reservng the property acquired for those
entitled to it.
in consequence Of the construction which has
been placed on tais clause of the constitution, il
has become usual for legislatures" says Angel &
Ames, in their standard work on corporations page
ESQ., fn acts of Incorporation for private purposes
II reserve to themselves power to alter, modify,
repeal at their pleasure, the charter and as the
| power of modification and repeal is thus made a
qualifying part of the grant of franchises the ex-
ercise of that power cannot, of course, impair the
obligation of the grant Sometimes this power is
reserved by general act, applicable all corpora
tions, in which case it msy be exercised upon any
corporation whose chatter has been granted since
the passage of the general act, although no special
clause abiding to such reserved power he inserted
ntaries, says it is nov usual to insert in charters
Of incorporation, power to alter, modify or repeal
them. Vol 2, page 30
This course has been forced upon many of the
States by the injurious consequences resulting from
the aggregate influence and power of privileged cor
psrations representing wealth in its most dangerous
form, beyon all legislative control.
We shall COW notice the legislation of some of the
States which have capital invested in corporate
bodies
Rhode Island The revised statutes of this State
adopted. in 1883 page 2S4, provides as follows:
GAN acts of incorporation hereafter granted may
be amended repealed at the will of the legisla-
ture, unless express provision be made to the con-
Iary." So the general act in regard t.. manuf4c
turing corporations auth9rises " amendment or re-
peal for any which the General Assembly may
deem sufficient"
The session acts have not been examined further
than for the year 1853. No act of Incorporation
for any purpose whatever was passed in that year
exempted from the operation of the general law.
There is, perhaps, more banking capital and manu-
featuring capital invested under charters, in proper
ton to population iG that State than probably any
little disposed to the adoption of hazardous expert
ments in legislation, and where corporate wealth
has as much influence and Isolated Individuals as
little as in any other State. Yet quiet public
policy has forced the adoption of this measure to
enable the legislative power to correct the abuses
which time and experience will develops in any
system which may be adopted.
Nsno Jerssy.-The act of 1916 concerning corpo-
ratiOns contains the following "The charter of any
corporation which shall hereafter be granted shall
be subject to alteration suspension, and repeal, in
the discretion Of the legislature" Revised Statutes
p. 139. The 10th section of The Bank act of 1850,
subjects banks to this power of the legislative de-
psrtment Of the government to correct abuses anil
amend defects" Revised Statutes 50. So of insu-
rance interpretations; 50 of manu- curing incor-
poraiions; religious and educational interpretations
In the acts OF 1858, We find charters of Fire com
psuies, Dock Yard companies, Locomotive compa-
MES, Bridge, Hotel and Iron Manufacturing com
Panes all subject to legislative repeal, whenever in
the judgment Of the legislature of New Jersey the
public good may require it Cemeary company,
l42, 1O2; Ferry company, 149; Turnpike company,
l58, Turnpikes, 1856, 233, 249; Grain Huling com.
paDy, 254 So of Benevolent associations, 65. So
The charter of the Perth Amboy Railroad Company,
the legislature Lay alter amend, or repeal it when
.he public good may require it." P. 28s.
Net single charter was granted in the legisla-
i've session of 1858, which was not subject to alter
atiOn repeal at the discretion of the legislature
The remedies against the corporation, its officers
and stockholders, and the validity of all preexist-
ng contracts, are, Of course, preserved.
The people Of the States of New Jersey are Of the
opinion that they ought not to surrender the power
# controlling the great of the stae ought
lot to surrender the power of selfgovernment, and
hat there is infinitely more danger that these priv.
eyed corporations will abuse their privileges, to
he injury Of the people, than that the legislative
department Of the government will commit outrages
n them. They know that the worst the legislature
an do will be TO place them upon footing Of equal
y in right and privilege ViM the mass of their coun-
'ymsH. We have not heard that this course of
oicy has driven capital out Of the State or injured
be great interests Of the country On the contrary
here seems to be as much avidity manifested for
epealable charters now as at any time heretofore (
n irrePealsble charters. Charters which enable
lousand men to sue and De sued, as one man with
ut making it secures for the whole thousand to e
one into court as plaintiffs or defendants, as in
lse partners and prevent dissoutioas by death
c. are necessary useful and proper and ought be
-antedto any body that wanted them, leaving the t
dividual subject to responsibility, as partners. it
Id subject to the correcting hand of the legisla-
re. See Statute, Is: Victoria; Angel Ames, IS. P
D this We shall come at last, as to almost every L
,scriptOn Of investment n
Virginia.-Ths constitution of Virginia has notb-
In regard to corporations in it except the follow
g: CT
" The General assembly shall not grant a charter b
incorporation to any church or religious denomi 81
ton, but may secure the title to church property
an extent to be limited by law"
John Marshall and James Madison were in the ar
INVENTION which adopted this provision. That to
INVENTION no doubt knew that the British Parlis- a.
mt was engaged for centuries in attempting by L,
statut's Of Mo1tmain to prevent the accumuls- Ii
Of property in church corporations and that in la
te Of their efforts One-twentieth of the real es-
e was locked up in the hands of monasteries elk nj
ndred in number, in England, and that it was ! af
ipped from them by act of confscation by the of
tsh Parliament. They knew that property grew co.
The hands of the churches in many of the States ne
Europe, till 1t was overihrown in some. as in M
Ince, by revolutionary measures and in others az e
Of the Germanic States by the stringent meas rat
NF Z w~ITz