Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1893-11-20
N THE SUPREME COURT.
.,s of Decisions Rendered BY
,ne Highest Civil Court of the
state, sitting at Austin.

., a. :eertiiied questions from La
ri, opestions submitted are:
~ NY q. NOT , nreferentioi
1 fist W hethe' Va -.
II a AZ trust executed D! prlNhic truu-
4 ..,,otatinn chartered in July. 1854,
''r,i tov,1 after il has become
plff gehe',' - - -, q, al,
E,atent aud consequently 'V''a'' ~
Il an Nd business, without any intention
zig tbe entcrnrise, Is void as
lss''u's ,,,,,,,1 ,r,djtors az such
|,ahst the uusecuieu N'''''''9
rsntion."
n s.,,d-,If a private corporation under
'.,.....,,.,,,teos b,s the same noycr
fc ulVuuis'''''' t-1i,',,,,,i
"a rer It's creuitorS US an 'uu'' iuu'ii'
Il al such preferential deed is void in
II t..arso If the fact TINT the stock
~ directors and other officers Of
n n,,oo,s,lon are liable MS sureties and
4 se.,s on The preferred claimsT'
~ 5s'' ssor ny Was one having no
-. n,ke- tlnn those given by the
~. VI laws AVA Of tlle state and those neces-
II IN isc;Gent thereto.
KY. Soatendej MAT such corporations
IA m M movers TO rive preferences
;sh = nsrs6n Lns So long as tbe cor.
w, w s,j.irnro continues unless such
| ,ser 4 denied nv tho common law or
SANTA Ricbo W, Ashbury railway
,r;sgs eomnapv. q l.. n Exch.. 963l
~ eanr.s Of TINT oninion. refcrring
n M c,sp of Suttou's l6spitnl 40 Coke.
In h vas said that n corpOrntion had
nsuar Ia do bv nse of rs spnl thnt
|bi.b 4 natural person could do and TO
al with rs propern- as natural per-
n MIGHT The question In Ills case
Il whether a certain transaction was
\, rires. and h. decision dqnends mon
| e,hnr corporations under the general
4 had the same power MS whit may
termed common law cornorotions. on
|peal Il was led In tbe NEGATIVE and
IA they were limited to the nowprs
|suted by the law under which they
arporated. RAILWAY carriage COM
| Is vi Richie. I Eng. and irish an
| Ma G53.l The English law prnscribes
powers corporations NAV exercise MS
| H. laws Of his state. That they can
hftber than this onght 10 be deemed
'nlAl law 1n7 II 4 ion, 1O1 III i
g C i ~ io7. a. e. hVC, III II, -,
|rDany. IN Ninss oSp1 II 10 nrnl,,-
| Nm tbe Ergiieh ,o mis- 1, s,dsl lno ~
uorailons bv tho rotnmon law" r,-
to those only which baya a az"
ren from tiinp imnemoriol and II
h sofcy ass,n,n1 Ie', nv anr ~
' Ing eompnitv tvas pvor fins classified
Revised Stntntns article gSo nrn'
| n tie use of cornorntn oqeets for INV
HI turpose tbon fn nccon,niisb tho niI.
| q Of its creation. nnd No al
q Of iis creation must Ln cor ort In
charter. 4 nnfrr1i norson ,n ~ Ia
| 4 his property everytbing ~ fcrhiI,
| ty law. A cnrnorStion NAV IA onlv
sc things sneciGed The enImera tio1
| he powers of eornnraiion orc ~ H.
| ID In article 575 Revised statutes
powers mentinned nrn ontbnri,oJ 20
exercised In relation 10 sneh nronst,tv
| The purposes of Tho cornorotinn shall
| gin," ana they ore noU,ars o,Ii,ariiv
essary TO be exercised while a bnsi.
obtaining tbe rasuits c M,t
n O corporation Il rrcnted A corno-
IN with power TO mnnurncture cation
woolen goods ms nowor 10
and hold raw material while tho
ness Is being carried on. but snnpose
eased business and did NOT intend 10
me, Il could not be conteuded that il
id have the power TO buy and Lold
On or wool for speculntion. Some Of
powers may be ndy1ntorcouslv ex-
| 'ed in winding nm n business as In
Iylng II on and those are the powers
|uy1 sell mortgage and otherwise con-
pnt the exercise Of those mowers Is
parted only in reference 10 such iron
a. tLe purposes of the corporation
-'le 70 he sold. mortgaged or other
eonVeyed. IL these powers stood
II might he held that they could
lsleisel whenever necessary, but Il
'lusht that the statute has applica-
ouy 70 powers 10 be used willie the
rs Tor which the corporation was
n, sAlslence is carried on. The stat
rNslsed Statutes, article 800 en-
y, corporations to enter INTO any
~ 't winch is essential TO the trans
VI the corporations authorized
eulporltion making the convey
Nv, question was a private trading
| ed yl, ne business Of which con
AZ, uuFlhg and selling for profit in
MY course of mercantile bust.
c. Anas was the business, and when
IN ia without intenaion of resum-
49,. business no longer existed and
| I'm thereafter made could he
N ~, me transaction of the do
I'M ,aat business. The mere act of
| Il M ~ securing an indebtedness can
|, AZ n. le business. No part Of the
|vos,s,,.sa,e legislature affecting private
|iS tauons carried into the revised
IL y, eNcep chapter ., title xxl
o. ~ Ne appEcation TO the winding
|atona e business of an insolvent cor.
v.,. slilef II has ceased to do busi-
IL WIN no intentlon ~ ,oO,,,,,i,,,.
| rlnei ~ ~. Nv powers must be de.
appAeable u ~ Esheral prnciples Of
not contsdloS me NE creditors 4 they
tile II re g,ieo py statute. Chapter
,srs Of en ,7sr AN, sita.utes' makes the
SOLUTION trn inn, ot"s s Al TIE time Of
..,aglders nniss, Tor , creditors and