Opinion
January 23, 1880.
Under the General Statutes of Rhode Island, which went into effect in 1872, a charter previously granted is valid, notwithstanding the failure of the chartered corporation to make the payment required by Public Laws R.I. cap. 475, of May 29, 1863.
EXCEPTIONS to the Court of Common Pleas.
This action was assumpsit brought July 26, 1878, in the Justice Court of Johnston, appealed by the defendant to the Court of Common Pleas, and brought into this court by the defendant's exceptions. The defendant gave the plaintiff notice to prove its legal corporate existence. The plaintiff's treasurer produced a certified copy of its charter, testified that it was organized August 16, 1871, and that he gave to its attorney one hundred dollars, to be paid to the general treasurer of the State, pursuant to Pub. Laws R.I. cap. 475, Act of May 29, 1863, but could not say whether the money was actually paid or not. The general treasurer testified that no entry of any such payment appeared on the books of his office. The defendant thereupon asked the presiding judge in the Court of Common Pleas to rule that the plaintiff was not a legal corporate body. This ruling was refused and the defendant excepted.
Pub. Laws, cap. 475, of May 29, 1863, provided: "No act of incorporation hereafter granted for any other than for religious, literary, charitable, or cemetery purposes, or for a military or fire company, shall take effect until the persons therein incorporated shall have paid to the general treasurer the sum of one hundred dollars." . . . .
This act was repealed by Gen. Stat. R.I. cap. 261, § 12, December 2, 1872; but Gen. Stat. R.I. cap. 25, § 10, provides: "No corporation shall be organized under a charter, until the petitioners for the same, or some one in their behalf, shall pay into the general treasury, for the use of the State, one hundred dollars." . . . .
Marquis D.L. Mowry, for plaintiff.
Andrew B. Patton, for defendant.
On the repeal of the Statute of May 29, 1863, by the General Statutes in 1872, the charter of the Hughesdale Manufacturing Company went into effect, notwithstanding its failure to make the payment prescribed by the Statute of 1863; the payment prescribed by the Gen. Stat. R.I. cap. 25, § 10, not being like that prescribed by the Statute of 1863, a condition precedent to the existence of the corporation, the omission of which could be taken advantage of collaterally, but something required to be done after the charter has gone into effect, and if the charter is in the usual form, after the corporation has been created; the neglect to do which can be taken advantage of by the State alone in a direct proceeding. The exceptions are overruled and the judgment of the court below affirmed with costs.
Exceptions overruled.