Commonwealth v. Reliance Safe Deposit & Trust Co.

Citations

• 242 Pa. 177
• 88 A. 1004
• 1913 Pa. LEXIS 860

Syllabus

<p>Constitutional law — Titles of acts — Act of April %8, 1909, P. L. llfS — Corporations—Banicing corporations — Forfeiture of charters.</p> <p>1. The Act of April 23, 1909, P. L. 143, providing for proceedings against certain coiporations to have their charter rights declared null and void, is constitutional. Notice given in the title of an act, that corporations which have not commenced business within two years of the date of their letters patent shall be proceeded against for the purpose of having their charters forfeited, is sufficient notice of a provision in the enacting part of the statute that corporations “which have not paid in the capital required by law, and have not in any manner exercised the powers conferred upon them by their letters patent,” will also be proceeded against. A corporation which has not paid in its capital as required by law, and which has not in any manner exercised the powers conferred upon it by its letters patent, cannot in any proper sense of the word be said to have commenced business.</p> <p>2. The assignee of a bank which, after a change of name, had been operated under a special charter granted to another banking company, sold the charter for $10. The purchaser and his associates undertook to reorganize the company, and without the payment of any cash into the treasury, issued to themselves paid up capital stock to the amount of $200,000. It was conceded that the bank had been liquidated. Held, the attempt of the reorganizers to capitalize the franchise or to do business in the manner indicated was a mere farce and their action was a nullity. The fact that they had held annual meetings and elected officers made no difference, and a judgment of ouster entered at tbe suit of the Commonwealth was sustained.</p>