In re Carpenters' & Joiners' Union

17 Abb. N. Cas. 109
CourtNew York Supreme Court
DecidedDecember 15, 1885
StatusPublished

This text of 17 Abb. N. Cas. 109 (In re Carpenters' & Joiners' Union) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Carpenters' & Joiners' Union, 17 Abb. N. Cas. 109 (N.Y. Super. Ct. 1885).

Opinion

Fish, J.

—Chapter 287 of the Laws of 1875 provides for the incorporation of societies for certain lawful purposes.

Section 1 authorizes any five persons of full age.....to sign and acknowledge . . and file in the office of the secretary of state, and in the office of the clerk of the county in which the office of such society or club shall be situated, a certificate in writing. . .

But such certificate shall not be filed unless by the written consent and approbation of one of the justices of the supreme court of the district in which the principal office of such society or club shall be located, to be indorsed on such certificate, &c.

Section 2 declares the effect of the making and filing of the certificate, and among other things, the persons who-shall have signed the certificate shall be a body politic and corporate, and shall be capable of suing and being sued as such body corporate.

Section 9, after declaring that the corporations so formed shall be subject to the visitation and inspection of the justices of the supreme court or any persons appointed by the court for that purpose, also provides t„hat it shall be the duty of the trustees in the month of December in each year, to make and file a certificate with an inventory of the property and effects and liabilities of the corporation, &c.

[111]*111Without assuming here, to criticise the policy of the act in question, as to how and in what manner it may subserve the public good, or as to its lack of certainty and definiteness in detail, it, nevertheless, seems to me quite clear that the act intended something more than a private partnership.

The legislature could scarcely have intended that any and every five persons who chose, anywhere in the State, without capital or substance, should be capable of being formed into a corporation, having no cohesive or substantial power to secure its permanence, or to protect the public from imposition in dealing with it.

The act is silent on the question of capital forming any part of the basis of the corporation. The legislature seems to have depended upon the judgment of any justice of the supreme court to whom a certificate might be presented, to see to it that no certificate should be filed that did not combine and provide for such ingredients as are usually provided in the formation of corporations, and as may be necessary to give it solvency and liability, so that the outside world would have something substantial to deal with. The very idea that such a corporation is liable to be sued as such, contemplates a possibility of a recovery against it, and something to pay the judgment with in case of recovery.

The direction that it shall each December make and file an inventory of its property and effects, contemplates that it is always to have something to report.

The certificate offered in this case provides nothing except that the persons who sign it seek the improvement and advancement of the members in the art of carpentering and joining, and the mutual protection of the interests, and labor of said members.

If it simply means a combination of their genius and labor to give increased force to. their efforts, that can be accomplished by a partnership as well as by a [112]*112corporation. The proposed corporation would be insolvent ab initio. If it hired a room for an office and agreed to pay rent, it would at once become indebted for the rent, and have no property or means whatever with which to pay. It could not supply itself with a journal-book except by running in debt.

I do not think the statute contemplated such a class of corporations.

I must, therefore, decline giving my approval of this certificate of association, and upon the following grounds:

1st. ■ The articles of association do not provide any capital or means with which to operate the association or to give it solvency.
2nd. The declared purpose of the association is not one of those named in the first section of this act.
3rd. It does not appear where the office or place of business of the society is to be situated, or that it is intended to keep any office anywhere, or for any purpose. ■

The provision requiring the approval of a justice of the supreme court is addressed to his judicial discretion. It ought to be cautiously exercised and upon conservative principles. Applications for approval under the statute have become very frequent, and many of them by entirely irresponsible persons. Some general rule on the subject on the part of the justices of the supreme court ought to be adopted, so that there may, as far as possible, be harmony of action in granting approvals.

Note on Organization or Social and other Clubs.

The formation of corporations for manufacturing, mining and various other business purposes, is provided for by the act of 1848, and its amendments and supplements, known as the Manufacturing Companies' Act. The formation of corporations for these and other business purposes generally, is provided for by the general act of [113]*113' 1875, c. 611, p. 755, and its amendments, known as the Business Corporations' Act. The latter act provides for two classes of companies —the limited liability, and the full liability companies. In practice, the former act is generally preferred for the basis of organization for businesses within its scope, for several reasons, among which is the facility with which the stockholders’ exemption from liability under the business act may be lost by incidental neglects on the part of officers, &c.

The formation of clubs for social and recreative purposes, is provided for by the general act of 1865, p. 692, c. 368, and its amendments, and by the independent act referred to in the text, L. 1875, p. 264, c. 267.

By § 1 of the act of 1865 (c. 368), as amended by L. 1865, c. 668, and L. 1871, c. 705: “Any five or more persons of full age, citizens of the United States, a majority of whom shall be also citizens of this State, who shall desire to associate themselves for social, gymnastic, (esthetic), temperance, benefit, athletic, military drill, musical, yachting, hunting, fishing, bathing or lawful sporting purposes,” may become incorporated; and by § 1 of the later act of 1875 (c. 267), as amended by L. 1876, c.

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Cite This Page — Counsel Stack

Bluebook (online)
17 Abb. N. Cas. 109, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-carpenters-joiners-union-nysupct-1885.