New Central Coal Co. v. George's Creek Coal & Iron Co.

37 Md. 537, 1873 Md. LEXIS 27
CourtCourt of Appeals of Maryland
DecidedFebruary 21, 1873
StatusPublished
Cited by68 cases

This text of 37 Md. 537 (New Central Coal Co. v. George's Creek Coal & Iron Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
New Central Coal Co. v. George's Creek Coal & Iron Co., 37 Md. 537, 1873 Md. LEXIS 27 (Md. 1873).

Opinion

Alvey, J.,

delivered the opinion of the Court.

The bill in this case was filed by tbe appellees to have the appellants restrained by injunction, from prosecuting proceedings of condemnation of a right of way for a railroad, through the lands of the appellees. The inquisition had been taken and returned into Court for ratification, before the bill was filed; and by the injunction that was granted, the appellants were restrained “from doing or causing or permitting to be done, any act, matter or thing, in or towards, or for the purpose of obtaining possession of any part of tbe lands of said company, and from, in any way, entering thereon, or on any part thereof, or in any way interfering with said company’s possession of said lands, and the said company’s free and uninterrupted use thereof,” until the further order of the Court.

After the granting of this injunction the inquisition that had been returned to the Circuit Court for Allegany County was set aside for cause shewn; and, upon motion to dissolve the injunction, the Judges in the Court below-being divided in opinion, the motion was overruled; and it is from the order overruling the motion to dissolve, in consequence of the division in opinion of the Judges, that this appeal is taken.

There are several questions presented by the record, some of whieh are of considerable interest and importance; and, without unnecessary detail of fact, we shall take them up and consider them in their order.

1. The first among the questions seriously urged is, whether the appellants ever acquired corporate franchises from the State to enable them to do what they attempted to do, and which was restrained by the injunction?

The appellants were chartered by the Act of 1865, chapter 206, by the name of the Lincoln Coal, Iron, Fire[554]*554Brick, and Oil Company, of Allegany -County. By the Act', it was declared that the three persons therein named, and such other persons as might be associated with them in the manner therein provided, should be and were thereby incorporated and made a body politic by the name jand style of, &c., “and the said company shall have all the privileges and rights necessary for carrying on the mining of coal and ores, and the manufacture of iron and fire-brick, and for transporting to market the produce of their mines, land, and manufactories, and shall also have power to lease or purchase lands, mines, and furnaces, with their appurtenances, and to hold all such property, personal, real and mixed, as they may require for the purposes aforesaid,” &c., and by the second section of the Act for the purpose of enabling the Company to transport the produce of their mines and manufactories to market, they are invested “with all and singular the rights, profits, powers, authorities, immunities and advantages for the surveying, locating and constructing a railroad, with the necessary appurtenances, from their mines or works to connect at any convenient point or points with other existing railroads in Allegany County, or with the Chesapeake and Ohio Canal, at Cumberland,” in the same manner as have been given and delegated to the Baltimore and Ohio Railroad Company, which includes the full and ample power of condemnation for right of way. By the same section, it is made the duty of the appellants to carry “all persons and propert}’’ at the same rates of tolls and prices of transportation as the Baltimore and Ohio Railroad Company are, or shall be by law, allowed to charge and receive.” It is further provided, by the fourth section of the Act, that until the first election of directors should be held, as therein provided, the- three persons named in the first section as corporators, or a majority of them, should have full power and authority to exercise all the corporate power *of the Company. [555]*555There is no time limited for accepting the charter, or for organizing the corporation under it.

The books for subscription to the capital stock were first opened on the 1st of September, 1871, and, upon subscriptions being taken, the stockholders, on-the same day, held a general meeting, and elected president and directors of the Company.

Afterwards, by the Act of 1872, chapter 50, the name of the appellants was changed from their first corporate name to that of the “ISTew Central Coal Company,” and it is by the latter name that the appellants have answered the bill in this case. The Act authorizing the change of name also authorized an increase of capital stock from two and a half millions to five millions of dollars, and also provided for an additional number of directors to manage the affairs of the corporation.

The Act of incorporation in this case is almost identical in its provisions with that of the Frostburg Coal Company, also a Maryland Act of Incorporation, which came under consideration of the Supreme Court of the United States, in the case of Frost’s Lessee vs. Frostburg Coal Co., 24 How., 278. In that case, in reference to the question of the corporate existence, the Court held that the persons named in the Act of incorporation constituted the corporate body, and were clothed with all the powers and privileges conferred by the charter, and that the latter took effect immediately on its acceptance by the persons named in the Act; and the subsequent steps, such as the subscription of the stock, procurement of the coal lands, election of the directors, of the president and secretary, passing by-laws, &c., were steps taken in perfecting the organization, and to enable it to use its powers and privileges for the purpose for which they were granted. The principle of this case in 24 Howard is unquestionably correct, and, as such, has been recognised by this Court, in the case of the Franklin Fire Ins. Co. vs. Hart, 31 Md., 59.

[556]*556In this case, however, it is alleged and contended, that before the charter was accepted by the corporators therein named, and before any rights had been acquired thereunder, the charter itself had become abrogated and annulled by force and effect of the 48th section of the 3rd Article of the Constitution, adopted in 1867.

What is sufficient evidence of acceptance of the charter by the corporators, is often a question depending upon the circumstances under which the charter itself was procured. It is not necessary that the Act of acceptance be evidenced by writing, nor even by the vote of the corpora-tors. Acceptance of the charter may generally be inferred from the exercise of the corporate powers granted. “If a peculiar charter is applied for, and it is given, there can be no reasonable ground to doubt of its immediate acceptance. It has, indeed, been held that grants beneficial to corporations, may be presumed to have been accepted, and an express acceptance is not necessary.” Ang. & Am. on Corp., sec. 83; Charles River Bridge vs. Warren Bridge, 7 Pick. Rep., 344. Here, there is express proof by one of the corporators, that the Act of incorporation was immediately accepted, though nothing appears to have been-done under it until September, 1871.

But, apart from the question whether the charter had been accepted before the adoption of the Constitution of 1867, and conceding that it had not been, does the provision of the Constitution relied on by the appellees, apply to or affect this charter in the manner supposed ?

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Remson v. Krausen
47 A.3d 613 (Court of Special Appeals of Maryland, 2012)
Abrams v. Lamone
919 A.2d 1223 (Court of Appeals of Maryland, 2007)
Mayor of Baltimore City v. Valsamaki
916 A.2d 324 (Court of Appeals of Maryland, 2007)
Bienkowski v. Brooks
873 A.2d 1122 (Court of Appeals of Maryland, 2005)
Herzinger v. Mayor of Baltimore
96 A.2d 3 (Court of Appeals of Maryland, 2001)
Green v. HIGH RIDGE ASS'N, INC.
695 A.2d 125 (Court of Appeals of Maryland, 1997)
High Ridge Ass'n v. County Commissioners
660 A.2d 951 (Court of Special Appeals of Maryland, 1995)
Mayor of Baltimore v. Chertkof
441 A.2d 1044 (Court of Appeals of Maryland, 1982)
Messitte v. Colonial Mortgage Service Co. Associates, Inc.
411 A.2d 1051 (Court of Appeals of Maryland, 1980)
Brown v. Brown
412 A.2d 396 (Court of Appeals of Maryland, 1980)
Johnson v. Safeway Stores, Inc.
568 P.2d 908 (Wyoming Supreme Court, 1977)
Prince George's County v. Collington Crossroads, Inc.
339 A.2d 278 (Court of Appeals of Maryland, 1975)
Kadan v. Board of Supervisors of Elections
329 A.2d 702 (Court of Appeals of Maryland, 1974)
Prince George's County v. Beard
291 A.2d 636 (Court of Appeals of Maryland, 1972)
Sollins v. Baltimore County
252 A.2d 819 (Court of Appeals of Maryland, 1969)
Potomac Electric Power Co. v. Birkett
143 A.2d 485 (Court of Appeals of Maryland, 1958)
Perellis v. Mayor of Baltimore
57 A.2d 341 (Court of Appeals of Maryland, 1948)
Johnson v. Consolidated Gas, Electric Light & Power Co.
50 A.2d 918 (Court of Appeals of Maryland, 1947)
Riden v. Philadelphia, Baltimore & Washington R. R.
35 A.2d 99 (Court of Appeals of Maryland, 1943)
Matthaei v. Housing Authority
9 A.2d 835 (Court of Appeals of Maryland, 1939)

Cite This Page — Counsel Stack

Bluebook (online)
37 Md. 537, 1873 Md. LEXIS 27, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-central-coal-co-v-georges-creek-coal-iron-co-md-1873.