Putnam v. Ruch

54 F. 216, 1893 U.S. App. LEXIS 2460
CourtU.S. Circuit Court for the District of Eastern Louisiana
DecidedFebruary 21, 1893
DocketNo. 12,169
StatusPublished
Cited by2 cases

This text of 54 F. 216 (Putnam v. Ruch) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the District of Eastern Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Putnam v. Ruch, 54 F. 216, 1893 U.S. App. LEXIS 2460 (circtedla 1893).

Opinion

BILLINGS, District Judge.

This case has been heard upon an application for the appointment of a receiver, and for an injunction pendente lite on hill of complaint, exhibits, and numerous affidavits. 'The defendants are officers and stockholders of a corporation known as the Crescent City Live-Stock Landing & Slaughterhouse Company. The corporation has not been made a party to the suit. The questions presented in this case are almost purely legal. They are two: First, if articles 248 and 258 of the constitution of 1879 avoided and annulled the charter of the corporation, will this bill Me? and, second, did these articles annul the charter?

As to the first question: The bill of complaint is founded upon the now familiar doctrine that a charter of a corporation created by the legislature, which is embraced within the subject-matter of the public health or public morals, lacks an element of a contract, in that it is with reference to a thing over which legislatures lack power or authority to bind their successors, and is only continued at the will of the state, and may be abrogated at any time by either the legislature or the constitution, (Northwestern Fertilizing Co. v. Hyde Park, 97 U. S. 659,) although, where the charter is in terms recognized by the state constitution, it is beyond legist lative repeal or recall, (New Orleans v. Houston, 139 U. S. 265, 7 Sup. Ct. Rep. 198.) The next proposition of the solicitor for the complainant cannot' be controverted, and is that this recall may be express or by necessary implication. Upon this conceded law he stands, and next affirms that in case there has been a recall or repeal of the charter of the slaughterhouse company by the constitution of 1879, his bill of complaint will lie. A careful consideration of this question leads me to the conclusion that he is correct. Such an abrogation is not like the liability which a corporation incurs to forfeiture of its charter by reason of some act or omission of the corporation. The constitution is supreme, and, in respect to this matter, enforces and executes itself. Without the intervention of any instrumentality, [218]*218or the doing of any act, it immediately destroys and sweeps away the inconsistent charter to the extent of its inconsistencies. But where a_ liability to a forfeiture of a charter has been incurred by a corporation, the corporation and its charter continue in existence till, at the instance of the state, either by a decree of a competent court or a legislative act, the forfeiture has been made operative to the extinction of the corporation. If the corporation had become extinct, it seems to me this suit, which is that of a stockholder to recover his share of the corporation assets in the hands of the defendants, would clearly be maintainable. '

This brings me to the question, which is seriously debated, whether the article annulled the charter. Act 118 of the acts of 1869 creates the corporation, and invests it with its powers and rights which are to be found in the 1st, 2d, and 3d sections, and are as follows:

“Section 1. Be it enacted by the senate and house of representatives of the state of Louisiana in general assembly convened, that from and after the first day of June, A. D. (1869,) eighteen hundred and sixty-nine, it shall not be lawful to land, keep, or slaughter any cattle, beeves, calves, sheep, swine, or other animals, or to have, keep, or establish any stock landing, yards, pens, slaughterhouses, or abbatoirs at any point or place within the city of New Orleans or the parishes of Orleans, Jefferson, and St. Bernard, or at any point or place on the east bank of the Mississippi river, above the present depot of the New Orleans, Opelousas and Great Western Railroad Company, except that the ‘Crescent City Stock-Landing and Slaughterhouse Company’’ may establish themselves at any point or place, as hereinafter provided. Any person or persons or corporation or company carrying on any business or doing any act in contravention of this act, or landing, slaughtering, or keeping any animal or animals in violation of this act, shall be liable to a fine of two hundred and fifty dollars ($260) for each and every violation, the same to be recoverable, with costs of suit, before any court of competent jurisdiction. Sec. 2. Be it further enacted,” etc., “that Wm. D. Sanger, Joseph H. Pearson, J. R. Irwin, John Wharton, Franklin J. Pratt, R. T. Packwood, N. W. Travis, Henry V. Barringer, L. P. Sanger, W. S. Mudgett,. Oliver D. Russell, J. Viosca, S. P. Griffin, L. H. Crippen, Wm. McKénna, A. J. Oliver, P. G. Clark, and their successors, be and are hereby created a body politic and corporate to be known and designated- as the Crescent City Live-Stock Landing and Slaughterhouse Company, and by that name and style shall sue and be sued, purchase, hold, sell, contract, lease and release, grant and transfer, and may do all things necessary for the purposes hereinafter mentioned, and perform all other acts, and exercise and enjoy all other rights and privileges, incident to corporations, adopt and use a common seal, make, publish, and alter at pleasure by-laws, rules, and regulations for the government of the company or corporation and the carrying on of its business, shall determine and appoint their officers, and fix their compensation and term of office, and shall fix the amount of the capital stock of the said company or corporation and the number of shares thereof. The domicile of the company or corporation shall be in the city of New Orleans, and the president shall be the proper' officer on whom to serve citations, notices, and other legal process wherein this company or corporation may be interested. Sec. 3. Be it further enacted,” etc., “that said company or corporation is hereby authorized to establish and erect at its own expense, at any point or place on the east bank of the Mississippi river within the parish of St. Bernard, or in the corporate limits of the city of New Orleans, below the United States barracks, or at any point or place on the west bank of the Mississippi river below the present depot of the New Orleans, Opelousas and Great Western Railroad Company, wharves, stables, sheds, yards, and buildings necessary to land, stable, shelter, protect, and preserve all kinds of horses, mules, cattle, and other animals, from and after the time such buildings, yards, [219]

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Bluebook (online)
54 F. 216, 1893 U.S. App. LEXIS 2460, Counsel Stack Legal Research, https://law.counselstack.com/opinion/putnam-v-ruch-circtedla-1893.