A Treatise On State And Federal Control of Persons And Property in the United St

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A Treatise On State And Federal Control of Persons And Property in the United St
Christopher Gustavus Tiedeman
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V. Hench, 76 F. 667. It seems to be a well- settled proposition of American corporation law, that it is ultra vires for an ordinary corporation, without express authority, to purchase and hold the stock of other corporations. Franklin Co. V. Lewiston Sav. Bank, 68 Me. 43; Pierson v. McCurdy, 33 Hun, 520; Central R. R. Co. V. Penn. Ry. Co. , 31 N. J. Eq. 475; Central R. R. Co. V. Collins, 40 Ga. 582; Buckeye Marble & Freestone Co. V. Harvey, 92 Tenn. 115; New Orleans F. & H. S.
HI INDUSTRIAL AND
... CORPORATE TRUSTS. 391 other property of a rival corporation. And this has been the conclusion of the courts. 1 Indeed, the strength of the demand for restrictions upon the creation of virtual mo- nopolies is not more strikingly demonstrated than in the proposition laid down by a number of our courts, that, while a private corporation, whose business is not affected with a public interest, without express authority from the legislature, may sell all its property and plant to another corporation, and the sale be in every way valid ; 2 it is not so, if the business is affected with a public interest, which is interpreted to mean that the business is such in its pro- portions and its control over some article of necessity, that a grievous monopoly may thereby be created.

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