Thorpe v. Rutland & Burlington Railroad

27 Vt. 140
CourtSupreme Court of Vermont
DecidedDecember 15, 1854
StatusPublished
Cited by232 cases

This text of 27 Vt. 140 (Thorpe v. Rutland & Burlington Railroad) is published on Counsel Stack Legal Research, covering Supreme Court of Vermont primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Thorpe v. Rutland & Burlington Railroad, 27 Vt. 140 (Vt. 1854).

Opinion

The opinion of the court was delivered, at the circuit session, in September, 1855, by

Redfield, Ch. J.

I. The present case involves the question of the right of the legislature to require existing railways to respond in damages for all cattle killed or injured by their trains until they erect suitable cattle-guards at farm-crossings. No question could be made where such a requisition was contained in the charter of the corporation, or in the general laws of the state at the date of the charter. But where neither is the case, it is claimed that it is incompetent for the legislature to impose such an obligation by statute, subsequent to the date of the charter.

It has never been questioned, so far as I know, that the American legislatures have the same unlimited power in regard to logislation which resides in the British parliament, except where they are restrained by written constitutions. That must be conceded, I think, to be a fundamental principle in the political organizations of the American states. "We cannot well comprehend how, upon principle, it should be otherwise. The people must of course, possess [143]*143all legislative power originally. They have committed this in the most general and unlimited manner to the several state lgislatures, saving only such restrictions as are imposed by the constitution of the United States, or of the particular state in question. I am not aware that the constitution of this state contains any restriction upon the legislature in regard to corporations, unless it be that where any person’s property is taken for the use of the public, the owner ought to receive an equivalent in moneyor that there is any such restriction in the United States constitution, except that prohibiting the states from “ passing any law impairing the obligation of contracts.”

It is a conceded point, upon all hands, that the parliament of Great Britain is competent to make any law binding upon corporations, however much it may increase their burdens or restrict their powers, whether general or organic, even to the repeal of their charters.

This extent of power is recognized in the case of Dartmouth College v. Woodward, 4 Wheaton 518, and the leading authorities are there referred to. Any requisite amount of authority, giving this unlimited power over corporations to the British parliament, may readily be found. And if, as we have shown, the several state legislatures have the same extent of legislative power, with the limitations named, the inviolability of these artificial bodies rests upon the same basis in the American states with that of natural persons, and there are, no doubt, many of the rights, powers, and functions of natural persons which do not come within legislative control. Such, for instance, as are purely and exclusively of private concern, and in which the body politic, as such, have no special interest.

IT. It being assumed then, that the legislature may control the action, prescribe the functions and duties of corporations, and impose restraints upon them to the same extent as upon natural persons, that is, in all matters coming within the general range of legislative authority, subject to the limitation of not impairing the obligation of contracts, provided the essential franchise is not taken without compensation, it becomes of primary importance to determine the extent to which the charter of a corporation may fairly be regarded as a contract within the meaning of the United States constitution.

Upon this subject, the decisions of the United States supreme [144]*144court must bo regarded as of paramout authority. And the ease of Dartmouth College v. Woodward, being so much upon the very point now under consideration, and the leading case, and authoritative exposition of the court of last resort upon that subject, must bo considered as the common starting point, the point of divergence, so to speak, of all the contrariety of opinion in regard to it.

Mr. Chief Justice Marshall there says, “ a corporation is an atificial being — the mere creature of the law — it possesses only those properties which the charter of its creation confers upon it, either expressly or as incidental to its very existence.” The decision throughout treats this as the fundamental idea, the pivot upon which the case turns. The charter of a corporation is thus regarded as a contract, inasmuch as it is an implied undertaking on the part of the state, that the corporation, as such, and for the purposes therein named or implied, shall enjoy the powers and franchises by it charter conferred. And any statute essentially modifying these corporate franchises is there regarded as a violation of the charter. But when we come to inquire what is meant hy the franchises of a corporation, the principal difficulty arises. Certain things, it is agreed are essential to the beneficial existence and successful operation of a corporation, such as individuality and perpetuity, when the grant is unlimited; the power to sue and to be sued, to have a common seal and to contract; and in the case of a railroad, to hare a common stock to construct and maintain its road, and to operate the same for the common benefit of the corporators. Certain other things, as incident to the beneficial use of these franchises, are necessarily implied. But there is a wide field of debateable ground outside of all these. It is conceded that the powers expressly, or by necessary implication, conferred by the charter, and which are essential to the successful operation of the coi*porations are inviolable.

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

Related

Wadsworth v. KSL GRANT WAILEA RESORT, INC.
818 F. Supp. 2d 1240 (D. Hawaii, 2010)
Paige v. Henry J. Kaiser Co.
826 F.2d 857 (Ninth Circuit, 1987)
Metropolitan Life Insurance v. Massachusetts
471 U.S. 724 (Supreme Court, 1985)
Vermont Woolen Corporation v. Wackerman
167 A.2d 533 (Supreme Court of Vermont, 1961)
Gangemi v. Berry
134 A.2d 1 (Supreme Court of New Jersey, 1957)
McGrew v. Industrial Commission
85 P.2d 608 (Utah Supreme Court, 1938)
State v. Langley
84 P.2d 767 (Wyoming Supreme Court, 1938)
Ford v. Easterling
184 So. 153 (Mississippi Supreme Court, 1938)
Katsafaros v. Agathakos
3 N.E.2d 810 (Ohio Court of Appeals, 1935)
Rafus v. Daley
154 A. 695 (Supreme Court of Vermont, 1931)
State Ex Rel. Davis v. Rose
122 So. 225 (Supreme Court of Florida, 1929)
City of Welch v. Norfolk & Western Railway Co.
140 S.E. 839 (West Virginia Supreme Court, 1927)
The People v. Alfano
153 N.E. 729 (Illinois Supreme Court, 1926)
Sims v. State
1921 OK 68 (Supreme Court of Oklahoma, 1921)
Hanzal v. City of San Antonio
221 S.W. 237 (Court of Appeals of Texas, 1920)

Cite This Page — Counsel Stack

Bluebook (online)
27 Vt. 140, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thorpe-v-rutland-burlington-railroad-vt-1854.