People ex rel. Hillel Lodge No. 72 v. Rose

69 N.E. 762, 207 Ill. 352
CourtIllinois Supreme Court
DecidedFebruary 17, 1904
StatusPublished
Cited by30 cases

This text of 69 N.E. 762 (People ex rel. Hillel Lodge No. 72 v. Rose) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
People ex rel. Hillel Lodge No. 72 v. Rose, 69 N.E. 762, 207 Ill. 352 (Ill. 1904).

Opinions

Mr. Justice Scott

delivered the opinion of the court:

The first and second sections of the statute under ■consideration are as follows:

“Sec. 1. Be it enacted by the People of the State of Illinois, represented in the General Assembly: That every corporation hereafter organized under the laws of this State shall, before receiving a certificate of complete organization, file with the Secretary of State a statement setting forth the post-office address of its business office, giving street and number.

“Sec. 2. Every incorporated company, other than railroad, banking, building and loan and insurance companies, existing by virtue of any general or special law of this State, or hereafter organized by virtue of any law of this State, shall annually, between the first day of February and the first day of March, report to the Secretary of State the location of its principal office in this State, with town, street and number; the name of its officers, with their residence, stating the town, street and number, with the date of the expiration of their respective terms of office; whether or not the corporation is pursuing an active*business under its charter and the kind of business engaged in, if any, which said report shall be made under the seal of the corporation and shall be signed and sworn to by the president, secretary or other officer of the corporation, and in cáse said corporation is in the hands of an assignee or receiver, then such report shall be signed and sworn to by such assignee or receiver, which said report, together with a fee of one dollar for filing the same, shall be sent to the Secretary of State, in whose office it shall be filed. The Secretary of State shall in no case receive or file said report until said fee is paid, and a failure to make said report and pay said fee shall be prima facie evidence that said corporation is out of business, and shall work a forfeiture of the charter of such corporation. And it is hereby made the duty of the Secretary of State to enter upon the records of his office, as soon as practicable after default in making such report, the cancellation of the charters of all corporations failing to make said report at the time and in the manner herein provided.”

Section 3 provides that the Secretary of State shall furnish blanks for making the report contemplated by section 2, to each corporation whose address is disclosed by the records of his office, with a notice stating the effect of a failure to make the report, and provides for notice by publication to corporations whose addresses are not so disclosed.

Sections 4 and 5 provide for proof of publication, and fix the rate of compensation for publication of such notice.

Section 6 provides for filing with the recorder of deeds in each county a list of the corporations complying with section 2 of the statute, together with the names and addresses of their principal officers and the location of the principal business office of the corporation in this State, and a list of those failing to comply with section 2 after having in one or more years made the report required by that section.

Section 7 is as follows:' “It is further provided, that any corporation which is pursuing an active business under its charter, failing to make said report at the time provided by law may, at any time, within one year from such default, be re-instated upon the records in the office of the Secretary of State upon the payment of a fee in the sum of $20 for such re-instatement and filing in said office an affidavit stating all the facts required in section 3 (2) of this act, and in addition thereto, the fact that it was at the time of such default, and still is, engaged in active business under its charter.”

The remaining sections provide for the payment of expenses of publication and repeal an earlier act.

The language of this act is broad enough to include corporations not for pecuniary profit. The first section applies to “every corporation.” The second is in reference to “every incorporated company,” other than railroad, banking, building and loan and insurance companies, now existing or hereafter organized under the laws of this State. It is conceded that these general terms include corporations of the class to which the petitioner belongs, but it is argued that they are restrained by the general context and by the spirit of the law, and that the act, when considered as a whole, indicates that the legislature meant only business corporations, and in support of this position, attention is called to the fact that in section 2 the corporation is required to report whether it “is pursuing an active business under its charter,” and by section 7, when it desires re-instatement, it is required to show, by affidavit, that at the time of its default it was, and still is, “engaged in active business under its charter,” and it is said that corporations not for pecuniary profit ordinarily are not engaged in active business, whence the conclusion that the act was not intended to apply to them. The term “active business,” as used in this statute, means the exercise of corporate powers,— the doing of those things which the corporation is by its charter authorized to do. We are confirmed in this view of the meaning of these words by the fact that in section 29 of chapter 32, persons desiring to organize a corporation not for pecuniary profit are required to file with the Secretary of State a certificate stating “the particular business and objects for which it is formed,” and by the succeeding section it is provided, “upon complying with the foregoing conditions, the corporation, society or association shall be deemed fully organized, and may proceed to business.” It is apparent that the word “business,” as used by the legislature in the statute of 1901 under consideration, refers not alone to those things which the corporation for pecuniary profit may do.

The constitutionality of the act is attacked upon the ground that the legislature has no power to dissolve a corporation or to declare a forfeiture of its franchise, nor has the legislature the power to prescribe a state of facts under which this may be done through an administrative officer, because such an act is the exercise of judicial power, which, under the constitutions of the State and of the United States, is vested in the judicial and denied, by implication, to the legislative department, and as petitioner was organized prior to the passage of the act of 1901, we are cited to the Dartmouth College case, and to other cases of like character, holding that a franchise of a corporation is property in the law, and is protected by the constitutions of the State and of the United States as a contract, which cannot be impaired by the legislature. The accuracy oh petitioner’s propositions, as abstract statements of the law, is beyond question, but we think them inapplicable here because based upon a misconstruction of the statute now before us. One of the purposes of the present statute evidently was to facilitate the taxation of corporations, and to provide information for the taxing officers in reference to the existence and location of corporations organized under the laws of the State and owning property in the State. The purpose of this statute further is to require evidence once each year that the corporation is exercising the powers granted, and its failure to make such proof is made prima facie evidence of non-user.

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Cite This Page — Counsel Stack

Bluebook (online)
69 N.E. 762, 207 Ill. 352, Counsel Stack Legal Research, https://law.counselstack.com/opinion/people-ex-rel-hillel-lodge-no-72-v-rose-ill-1904.