The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1893-04-29
PATHRSON'S s. ]. NJ.
Some Passages from the
History of the Greatest
Fake of the Age.
OWNERSHIP In WATER.
Manufactures That Never Existed.
and Claims That Courts Have
Repeatedly Knocked Out.

The people of Paterson are proposing
TO erect a monument in honor of Alex
ander Hamilton, a proceeding which they
deem especially appropriate, because he
was the author of the charter of "The
Society for Establishing Useful Man u.
fac,ures.' Probably not one in a thou
sand of the Inhabitants Of Paterson has
ever read that historic document. and ii
is with a view TO the enlightenment Of
the public of New Jersey hat a true sum :
mary Of the charter itself and a brief his
tory of the society are here published.
They can thus learn the utter hollow
ness of that gigantic bubble. and fully
comprehend the gaseous foundation on
which the pretensions of the rs. U. M"
are constructed.
The entire instrument is a lot of rub
bish, which. within four years after the
organization of the society, was thrown
aside as useless for any practical purpose.
Not one of the declared objects OF the
charter has been carried out by the
society. The only business pursued by
the society for nearly a century has been
that which any private individual could
have pursued as well without any COR
porate powers. In fact, the whole BUSH
ness of the society has been carried on In
direct violation of its charter.
The sole use TO which their charter has
been applied has been to dress it up from
time to time with tinselled urappings u
use it as a spook TO shake over Gne neads
OF timid Jerseymen. while proclaming In
blatant tones "prOcuI este, this Is the De-
mon that dominates all the valuable
yyQtars 0f NQrtharn New ,l0rSBV."
MANUFACTURES, INDEED.
1t will be seen that the only purpose
recognized or authorized by the Legisla-
ture was that of "manufactures" and
such business as properly pertained
thereto.
Under this charter the society erected a
mill In 1898 and commenced work, but in
1896 dismissed all its workmen u dis
continued manufacturing and never
again resumed the business for which l5
was organized. The 'navigable canals"
which 1t was authorized to construct to
connect with its works were never built,
and the contemplated municipal govern
ment OF the prospective community was
superseded by a new charter from the
Legislature for the city of Paterson.
Thus all the chartered rights of the So
cfety as defined by the Legislature be-
came extinct and all its business for
nearly q century has been conducted
aura ULfGS OI uuQEf HAUL al 4Sabt
fully held as owners of property.
Tine charter is comprised in twenty
eight sections of which the first sixteen
provide ''for carrying on the business OF
manufactures in this State" with the
usual prescribed forms of organization
aud management. but with the extra
ordinary restriction in section 3, "that
the said corporation shall not deal, nor
trade, except IL such articles as itself
shall mRDufaeture."
The next eight Sections empower the
society to construct "navigable canals to
connect with its mandatory" and con-
tain the ordinary provisions for accomp-
fishing such work. Section % authorizes
raising S1o0, 600 by lottery and the next
ten sections relate to the municipal
government of the community where the
works are to Dedicated. The remaining
two sections are Insignificant formalities.
By his description the whole charter is
fairly summarized and shows clearly That
the society acquired no chartered rig hts
for the control of any water. Their pur-
chase of property at the Great Falls was
subject to the same restrictions u privi-
lsges as pertain to any private owner OF
property on the Passaic River; nothing
more or less. In all their unfortunate
law suits the society never dared TO claim
from the courts any right OF control of
the water by virtue of its charter, but
only as riparian owners of property, con-
Tossing thereby that its charter was OF no
avail in the vital question at issue.
SOME HISTORICAL FACTS.
The following interesting chronicles
are compiled from the various New Jer-
sey law and equity reports
1850 Stewart 1~45-note) Chancellor Isaac H.
porated 10 1871. The object Of the Legislature
In granting the charter is clearly expressed on
the face of it; it was for the purpose of estab-
fishing a company for carrying on the business
of manufactures of this State
In 1898 the society erected buildings
and established q cotton factory, and in
1T94 they established a printing, bleach
ing and dye shop. Soon after they found
it necessary to discharge their numerous
hands, n entirely to discontinue the
business of manufactures. and instead of
leased out to individuals and companies
upon rent, sites with water privileges for
manufacturing establishments"
In 1929. the Morris Canal and Banking
Company had proceeded with the con-
~struction OF its canal, n was about to
divert tine water above the soeiety's prop
erty, when the society applied to the
Chancellor for An injunction, claiming
'.the right to all the waters OF the Passaic.
at Paterson - The Canal Company main
tanned that the Paterson Society q for
feited its charter by abandoning the OBJ
iect of les Incorporation, and had no legal
existence. Chancellor Williamson de-
clined co consider that point as not being
within his Jurisdiction, but a question Tor
q Court OF Law at the suit of the State.
This question is still in allegiance, but
in certain contingencies may De revived,
aud unless the society can prove that the
water which It is supplying TO its lessees
is water sof its Owl manufacture" 1t
must be held that the society Is acting In
positive violation of Sec. 8 of its charter,
which distinctly forbids 1t dealing lin
any article except such as Itself shall
manufacture"
In the above named suit the society
claimed that the Norris Canal Company
was about to deprive 1t of q portion of the
water of the Passaic River, TO which the
society ia q prior right. The Canal
Company admitted that it was diyertlng
the water, but claimed that the society
was not injured thereby
The Chancellor decided that the society
Sustained no actual injury" and refused
to grant the injunction.
In 1880 the 8. u. NJ. came again into
the Court of Chancery. 1t had new proof
of diversion of large quantities of tits
water" by the Canal Company, and again
asks for an injunction in the hope that
the new Chancellor. Vroonr, would adj
nit its claim. It vas proved that the
Canal Company had taken out water
from one stream, but had substituted for
it water from another stream. The Chan-
ceiIor savs:-"There is no such thing as
actual roperty in running water. 10
say that a person entitled TO the How OF q
stream of water through his land is en-
tirled TO the flow of the very Identical