State ex rel. Walker v. Corkins

27 S.W. 363, 123 Mo. 56, 1894 Mo. LEXIS 219
Supreme Court of Missouri·Decided June 18, 1894·Published·Cited by 9 cases

Opinion

Macearlane, J.

— This is an original proceeding in the nature of a quo warranto against respondents as the officers who assume to manage the affairs of what they claim, to be a corporation organized under the laws of the state of Missouri. The petition or information is as. follows:

“Now comes R. F. Walker, attorney general for the state of Missouri and states that the above named defendants on the first day of November, 1892, deposited articles of agreement with the secretary [61] of state for the purpose of securing a certificate of incorporation for a company to he named and styled the Pettis County Investment Company, city of Sedalia, Missouri. The said certificate was sought to he obtained under the provisions of subdivision 11, section 2771, article 8, chapter 42, Revised Statutes 1889; that said article 8 provides for the incorporation of manufacturing and business companies; that said company so sought to be incorporated by defendants was not sought for a manufacturing or business purpose, but for the purpose of issuing bonds to be paid for by purchasers thereof in monthly installments and to be redeemed by said corporation so sought to be formed in such order and at such times as might be prescribed by it; that on the said first day of November, 1892, articles of incorporation were issued by said secretary of state to said defendants'for the incorporation of said company under the name and style of the Pettis County Investment Company, city of Sedalia, Missouri, as aforesaid; that the issue of said articles for the incorporation of said company for the purpose stated was without any authority of law; that from and since the first of day of November, 1892, the above named defendants have claimed and held themselves out to the public as a corporation under the name and style of the Pettis County Investment Company, city of Sedalia, Missouri; and as such have claimed and exercised the right and privilege of issuing bonds and selling and disposing of the same in the state of Missouri; that such issue and sale of bonds under the name, style and pretended authority aforesaid is without any legal warrant, franchises, charter or grant.
“The attorney general for the plaintiff further' states that he has no knowledge or belief nor means of information sufficient to form a belief as to whether or not other parties to plaintiff unknown are under the [62] name of the Pettis County Investment Company, city of Sedalia, Missouri, usurping the franchise of a corporation by issuing bonds as aforesaid; plaintiff therefore asks that any and all persons who are, under the pretended authority of said company, issuing bonds as aforesaid be prohibited by a proper writ from this court from so doing.
“Wherefore, the attorney general, who prosecutes in this behalf for the state of Missouri, prays the consideration of the court here in the premises and that proceedings of law may be issued against said defendants that they, as well as parties to plaintiff unknown, may be ousted of their usurped authority and that the pretended corporation, to wit, the Pettis County Investment Company, city of Sedalia, Missouri, may be declared a nullity.

To this information a general demurrer was interposed by respondents.

Argument was heard and briefs are furnished on the demurrer, and the only question for our consideration is whether the information states facts which show that the articles of incorporation are without authority of law and that respondents are usurping the franchises of a corporation.

As will be seen there is no charge in the information that respondents, Or the corporation they claim to manage, are doing an unlawful business, and for the purposes of the question, as presented by the demurrer, we must assume that they are doing a business authorized by law. The question involves alone the legality of the incorporation.

The constitution of the state declares that “no corporation * * * shall be created by special laws; nor shall any existing charter be extended, changed or amended by special laws, except those for charitable, penal or reformatory purposes, which are under the [63] patronage and control of the state.” Const, of Mo. art. 12, sec. 2. Corporations, then, since the adoption of the constitution, must be created under the general laws of the state, and can have no valid existence unless authorized by general law.

The general statute authorizing the organization of corporations for manufacturing and business purposes, and under which respondents claim an effective incorporation, reads as follows:

"Sec. 2771. May incorporate, for what purposes.— Corporations may be created under this article for any of the following purposes: First, to carry on any kind of mining, mechanical, chemical, manufacturing, smelting, printing, coal oil or petroleum business; second, to encourage and promote agriculture and the improvement of stock, and for these purposes may establish fair grounds; third, to construct toll bridges; fourth, to erect hotels, halls, market houses, warehouses, exchange and other buildings, and for the purpose of purchasing, owning, and renting buildings already erected; fifth, to build wharves, docks, grain elevators, levees, and to construct canals and embankments for the reclaiming of landp; sixth, to convey and transport persons and freights on land or water by any mode of conveyance whatever; seventh, to construct and operate horse railroads; eighth, to purchase and use fire engines, hose, hooks and ladders, and all other apparatus necessary or useful to prevent and extinguish fires; ninth, to supply any town, city, district, neighborhood or village with gas or water; tenth, to establish steam or other ferries; eleventh, for any other purpose intended for pecuniary profit or gain not otherwise especially provided for, and not inconsistent with the constitution and laws of this state.”

Respondents claim that subdivision eleven of said section gives ample authority to" incorporate for the [64] purpose of issuing bonds to be paid for by purchasers thereof in monthly installments and to be redeemed in such order, and at such time, as might be prescribed, and of selling and disposing of such bonds in the state of Missouri. On the other hand, relator claims that under a proper construction of said section no authority for incorporation for such purposes is given.

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State ex rel. Walker v. Corkins, 27 S.W. 363, 123 Mo. 56, 1894 Mo. LEXIS 219 (Mo. 1894).

27 S.W. 363 (State ex rel. Walker v. Corkins) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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