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Cases citing this case: Supreme Court
Cases citing this case: Circuit Courts
U.S. Supreme Court
TRUSTEES OF DARTMOUTH COLLEGE v. WOODWARD, 17 U.S. 518 (1819)
17 U.S. 518 (Wheat.)
TRUSTEES OF DARTMOUTH COLLEGE
v.
WOODWARD.
February 2, 1819
ERROR to the Superior Court of the State of New-Hampshire. This was
an action of trover, brought in the state court, in which the
plaintiffs in error declared for
[17 U.S. 518, 519] two books of records,
purporting to contain the records of all the doings and proceedings of
the trustees of Dartmouth College, from the establishment of the
corporation until the 7th day of October 1816; the original charter or
letters-patent, constituting the college; the common seal; and four
volumes or books of account, purporting to contain the charges and
accounts in favor of the college. The defendant pleaded the general
issue, and at the trial, the following special verdict was found:
The said jurors, upon their oath, say, that his Majesty George
III., king of Great Britain, &c., issued his letters-patent, under the
public seal of the province, now state, of New Hampshire, bearing the
13th day of December, in the 10th year of his reign, and in the year
of our Lord 1769, in the words following:
George the Third, by the grace of God, of Great Britain, France and
Ireland, King, Defender of the Faith, and so forth, To all to whom
these presents shall come, greeting:
Whereas, it hath been represented to our trusty and well-beloved
John Wentworth, Esq., governor and commander-in-chief, in and over our
province of New Hampshire, in New England, in America, that the
Reverend Eleazar Wheelock, of Lebanon, in the colony of Connecticut,
in New England, aforesaid, now doctor in divinity, did, on or about
the year of our Lord 1754,
[17 U.S. 518, 520] at his own expense, on
his own estate and plantation, set on foot an Indian charity school,
and for several years, through the assistance of well-disposed persons
in America, clothed, maintained and educated a number of the children
of the Indian natives, with a view to their carrying the Gospel, in
their own language, and spreading the knowledge of the great Redeemer,
among their savage tribes, and hath actually employed a number of them
as missionaries and school-masters in the wilderness, for that
purpose: and by the blessing of God upon the endeavors of said
Wheelock, the design became reputable among the Indians, insomuch that
a large number desired the education of their children in said school,
and were also disposed to receive missionaries and school-masters, in
the wilderness, more than could be supported by the charitable
contributions in these American colonies. Whereupon, the said Eleazar
Wheelock thought it expedient, that endeavors should be used to raise
contributions from well-disposed persons in England, for the carrying
on and extending said undertaking; and for that purpose the said
Eleazar Wheelock requested the Rev. Nathaniel Whitaker, now doctor in
divinity to go over to England for that purpose, and sent over with
him the Rev. Samson Occom, an Indian minister, who had been educated
by the said Wheelock. And to enable the said Whitaker to the more
successful performance of said work, on which he was sent, said
Wheelock gave him a full power of attorney, by which said Whitaker
solicited those worthy and generous contributors to the charity, viz.,
[17 U.S. 518, 521]
The Right Honorable William, Earl of Dartmouth, the Honorable
Sir Sidney Stafford Smythe, Knight, one of the barons of his Majesty's
court of exchequer, John Thornton, of Clapham, in the county of
Surrey, Esquire, Samuel Roffey, of Lincoln's Inn Fields, in the county
of Middlesex, Esquire, Charles Hardy, of the parish of Saint Mary-le-bonne,
in said county, Esquire, Daniel West, of Christ's church, Spitalfields,
in the county aforesaid, Esquire, Samuel Savage, of the same place,
gentleman, Josiah Roberts, of the parish of St. Edmund the King,
Lombard Street, London, gentleman, and Robert Keen, of the parish of
Saint Botolph, Aldgate, London, gentleman, to receive the several sums
of money, which should be contributed, and to be trustees for the
contributors to such charity, which they cheerfully agreed to.
Whereupon, the said Whitaker did, by virtue of said power of attorney,
constitute and appoint the said Earl of Dartmouth, Sir Sidney Stafford
Smythe, John Thornton, Samuel Roffey, Charles Hardy and Daniel West,
Esquires, and Samuel Savage, Josiah Roberts and Robert Keen,
gentlemen, to be trustees of the money which had then been
contributed, and which should, by his means, be contributed for said
purpose; which trust they have accepted, as by their engrossed
declaration of the same, under their hands and seals, well executed,
fully appears, and the same has also been ratified, by a deed of
trust, well executed by the said Wheelock.
And the said Wheelock further represents, that he has, by power of
attorney, for many weighty reasons,
[17 U.S. 518, 522] given full power to the
said trustees, to fix upon and determine the place for said school,
most subservient to the great end in view; and to enable them
understandingly, to give the preference, the said Wheelock has laid
before the said trustees, the several offers which have been
generously made in the several governments in America, to encourage
and invite the settlement of said school among them, for their own
private emolument, and the increase of learning in their respective
places, as well as for the furtherance of the general design in view.
And whereas, a large number of the proprietors of lands in the western
part of this our province of New Hampshire, animated and excited
thereto, by the generous example of his excellency, their governor,
and by the liberal contributions of many noblemen and gentlemen in
England, and especially by the consideration, that such a situation
would be as convenient as any for carrying on the great design among
the Indians; and also, considering, that without the least impediment
to the said design, the same school may be enlarged and improved to
promote learning among the English, and be a means to supply a great
number of churches and congregations, which are likely soon to be
formed in that new country, with a learned and orthodox ministry;
they, the said proprietors, have promised large tracts of land, for
the uses aforesaid, provided the school shall be settled in the
western part of our said province. And they, the said right honorable,
honorable and worthy trustees, before mentioned, having maturely
considered the reasons and arguments, in favor of the several places
[17 U.S. 518, 523]
proposed, have given the preference to the western part of our
said province, lying on Connecticut river, as a situation most
convenient for said school.
And the said Wheelock has further represented a necessity of a
legal incorporation, in order to the safety and well-being of said
seminary, and its being capable of the tenure and disposal of lands
and bequests for the use of the same. And the said Wheelock has also
represented, that for many weighty reasons, it will be expedient, at
least, in the infancy of said institution, or till it can be
accommodated in that new country, and he and his friends be able to
remove and settle, by and round about it, that the gentlemen, whom he
has already nominated in his last will (which he has transmitted to
the aforesaid gentlemen of the trust in England), to be trustees in
America, should be of the corporation now proposed. And also, as there
are already large collections for said school, in the hands of the
aforesaid gentlemen of the trust, in England, and all reasons to
believe, from their singular wisdom, piety and zeal to promote the
Redeemer's cause (which has already procured for them the utmost
confidence of the kingdom), we may expect they will appoint successors
in time to come, who will be men of the same spirit, whereby great
good may and will accrue many ways to the institution, and much be
done, by their example and influence, to encourage and facilitate the
whole design in view; for which reason, said Wheelock desires, that
the trustees aforesaid may be vested with all that power therein,
which can consist with their distance from the same.
[17 U.S. 518, 524]
KNOW YE, THEREFORE, that We, considering the premises, and
being willing to encourage the laudable and charitable design of
spreading Christian knowledge among the savages of our American
wilderness, and also that the best means of education be established
in our province of New Hampshire, for the benefit of said province,
do, of our special grace, certain knowledge and mere motion, by and
with the advice of our counsel for said province, by these presents,
will, ordain, grant and constitute, that there be a college erected in
our said province of New Hampshire, by the name of Dartmouth College,
for the education and instruction of youth of the Indian tribes in
this land, in reading, writing and all parts of learning, which shall
appear necessary and expedient, for civilizing and christianizing
children of pagans, as well as in all liberal arts and sciences, and
also of English youth and any others. And the trustees of said college
may and shall be one body corporate and politic, in deed, action and
name, and shall be called, named and distinguished by the name of the
Trustees of Dartmouth College.
And further, we have willed, given, granted, constituted and
ordained, and by this our present charter, of our special grace,
certain knowledge and mere motion, with the advice aforesaid, do, for
us, our heirs and successors for ever, will, give, grant, constitute
and ordain, that there shall be in the said Dartmouth College, from
henceforth and for ever, a body politic, consisting of trustees of
said Dartmouth College. And for the more full and perfect erection of
said corporation and body politic, consisting of trustees of Dartmouth
College, we, of our special grace, certain
[17 U.S. 518, 525]
knowledge and mere motion, do, by these presents, for us, our
heirs and successors, make, ordain, constitute and appoint our trusty
and well- beloved John Wentworth, Esq., governor of our said province,
and the governor of our said province of New Hampshire for the time
being, and our trusty and well-beloved Theodore Atkinson, Esq., now
president of our council of our said province, George Jaffrey and
Daniel Peirce, Esq'rs, both or our said council, and Peter Gilman,
Esq., now speaker of our house of representatives in said province,
and William Pitkin, Esq., one of the assistants of our colony of
Connecticut, and our said trusty and well- beloved Eleazar Wheelock,
of Lebanon, doctor in divinity, Benjamin Pomroy, of Hebroe, James
Lockwood, of Weathersfield, Timothy Pitkin and John Smalley, of
Farmington, and William Patten, of Hartford, all of our said colony of
Connecticut, ministers of the gospel (the whole number of said
trustees consisting, and hereafter for ever to consist, of twelve and
no more) to be trustees of said Dartmouth College, in this our
province of New Hampshire.
And we do further, of our special grace, certain knowledge and mere
motion, for us, our heirs and successors, will, give, grant and
appoint, that the said trustees and their successors shall for ever
hereafter be, in deed, act and name, a body corporate and politic, and
that they, the said body corporate and politic, shall be known and
distinguished, in all deeds, grants, bargains, sales, writings,
evidences or otherwise howsoever, and in all courts for ever
hereafter, plea and be impleaded by the name of the Trustees of
Dartmouth College; and that the said corporation,
[17 U.S. 518, 526]
by the name aforesaid, shall be able, and in law capable, for
the use of said Dartmouth College, to have, get, acquire, purchase,
receive, hold, possess and enjoy, tenements, hereditaments,
jurisdictions and franchises, for themselves and their successors, in
fee-simple, or otherwise howsoever, and to purchase, receive or build
any house or houses, or any other buildings, as they shall think
needful and convenient, for the use of said Dartmouth College, and in
such town in the western part of our said province of New Hampshire,
as shall, by said trustees, or the major part of them, he agreed on;
their said agreement to be evidenced by an instrument in writing,
under their hands, ascertaining the same: And also to receive and
dispose of any lands, goods, chattels and other things, of what nature
soever, for the use aforesaid: And also to have, accept and receive
any rents, profits, annuities, gifts, legacies, donations or bequests
of any kind whatsoever, for the use aforesaid; so, nevertheless, that
the yearly value of the premises do not exceed the sum of 6000l.
sterling; and therewith, or otherwise, to support and pay, as the said
trustees, or the major part of such of them as are regularly convened
for the purpose, shall agree, the president, tutors and other officers
and ministers of said Dartmouth College; and also to pay all such
missionaries and school-masters as shall be authorized, appointed and
employed by them, for civilizing and christianizing, and instructing
the Indian natives of this land, their several allowances; and also
their respective annual salaries or allowances, and all such necessary
and [17 U.S. 518, 527]
contingent charges, as from time to time shall arise and
accrue, relating to the said Dartmouth College: And also, to bargain,
sell, let or assign, lands, tenements or hereditaments, goods or
chattels, and all other things whatsoever, by the name aforesaid in as
full and ample a manner, to all intents and purposes, as a natural
person, or other body politic or corporate, is able to do, by the laws
or our realm of Great Britain, or of said province of New Hampshire.
And further, of our special grace, certain knowledge and mere
motion, to the intent that our said corporation and body politic may
answer the end of their erection and constitution, and may have
perpetual succession and continuance for ever, we do, for us, our
heirs and successors, will, give and grant unto the Trustees of
Dartmouth College, and to their successors for ever, that there shall
be, once a year, and every year, a meeting of said trustees, held at
said Dartmouth College, at such time as by said trustees, or the major
part of them, at any legal meeting of said trustees, shall be agreed
on; the first meeting to be called by the said Eleazar Wheelock, as
soon as conveniently may be, within one year next after the enrolment
of these our letters-patent, at such time and place as he shall judge
proper. And the said trustees, or the major part of any seven or more
of them, shall then determine on the time for holding the annual
meeting aforesaid, which may be altered as they shall hereafter find
most convenient. And we further order and direct, that the said
Eleazar Wheelock shall notify the time for holding said first meeting,
to be called as aforesaid, by sending a letter
[17 U.S. 518, 528]
to each of said trustees, and causing an advertisement thereof
to be printed in the New Hampshire Gazette, and in some public
newspaper printed in the colony of Connecticut. But in case of the
death or incapacity of the said Wheelock, then such meeting to be
notified in manner aforesaid, by the governor or commander-in-chief of
our said province for the time being. And we do also, for us, our
heirs and successors, hereby will, give and grant unto the said
Trustees of Dartmouth College, aforesaid, and to their successors for
ever, that when any seven or more of the said trustees, or their
successors, are convened and met together, for the service of said
Dartmouth College, at any time or times, such seven or more shall be
capable to act as fully and amply, to all intents and purposes, as if
all the trustees of said college were personally present- and all
affairs and actions whatsoever, under the care of said trustees, shall
be determined by the majority or greater number of those seven or more
trustees so convened and met together.
And we do further will, ordain and direct, that the president,
trustees, professors, tutors and all such officers as shall be
appointed for the public instruction and government of said college,
shall, before they undertake the execution of their offices or trusts,
or within one year after, take the oaths and subscribe the declaration
provided by an act of parliament made in the grst year of King George
the First, entitled 'an act for the further security of his majesty's
person and government, and the succession of the crown in the heirs of
the late Princess Sophia, being
[17 U.S. 518, 529] Protestants, and for the
extinguishing the hopes of the pretended Prince of Wales, and his open
and secret abettors;' that is to say, the president, before the
governor of our said province for the time being, or by one by him
empowered to that service, or by the president of our said council,
and the trustees, professors, tutors and other officers, before the
president of said college for the time being, who is hereby empowered
to administer the same; an entry of all which shall be made in the
records of said college.
And we do, for us, our heirs, and successors, hereby will, give and
grant full power and authority to the president hereafter by us named,
and to his successors, or, in case of his failure, to any three or
more of the said trustees, to appoint other occasional meetings, from
time to time, of the said seven trustees, or any greater number of
them, to transact any matter or thing necessary to be done before the
next annual meeting, and to order notice to the said seven, or any
greater number of them, of the times and places of meeting for the
service aforesaid, by a letter under his or their hands, of the same,
one month before said meeting: provided always, that no standing rule
or order be made or altered, for the regulation of said college, nor
any president or professor be chosen or displaced, nor any other
matter or thing transacted or done, which shall continue in force
after the then next annual meeting of the said trustees, as aforesaid.
And further, we do, by these presents, for us, our heirs and
successors, create, make, constitute, nominate and appoint our trusty
and well-beloved Eleazar Wheelock, doctor in divinity, the founder of
said [17 U.S. 518, 530]
college, to be president of said Dartmouth College, and
to have the immediate care of the education and government of such
students as shall be admitted into said Dartmouth College for
instruction and education; and do will, give and grant to him, in said
office, full power, authority and right, to nominate, appoint,
constitute and ordain, by his last will, such suitable and meet person
or persons as he shall choose to succeed him in the presidency of said
Dartmouth College; and the person so appointed, by his last will, to
continue in office, vested with all the powers, privileges,
jurisdiction and authority of a president of said Dartmouth College;
that is to say, so long and until such appointment by said last will
shall be disapproved by the trustees of said Dartmouth College.
And we do also, for us, our heirs and successors, will, give and
grant to the said trustees of said Dartmouth College, and to their
successors for ever, or any seven or more of them, convened as
aforesaid, that in the case of the ceasing or failure of a president,
by any means whatsoever, that the said trustees do elect, nominate and
appoint such qualified person as they, or the major part of any seven
or more of them, convened for that purpose as above directed, shall
think fit, to be president of said Dartmouth College, and to have the
care of the education and government of the students as aforesaid; and
in case of the ceasing of a president as aforesaid, the senior
professor or tutor, being one of the trustees, shall exercise the
office of a president, until the trustees shall make choice of and
appoint, a president as aforesaid;
[17 U.S. 518, 531] and such professor or
tutor, or any three or more of the trustees, shall immediately appoint
a meeting of the body of the trustees for the purpose aforesaid. And
also we do will, give and grant to the said trustees, convened as
aforesaid, that they elect, nominate and appoint so many tutors and
professors to assist the president in the education and government of
the students belonging thereto, as they the said trustees shall, from
time to time, think needful and serviceable to the interests of said
Dartmouth College. And also, that the said trustees or their
successors, or the major part of any seven or more of them, convened
for that purpose as above directed, shall, at any time, displace and
discharge from the service of said Dartmouth College, any or all such
officers, and elect others in their room and stead, as before
directed. And also, that the said trustees, or their successors, or
the major part of any seven of them which shall convene for that
purpose, as above directed, do, from time to time, as occasion shall
require, elect, constitute and appoint a treasurer, a clerk, an usher
and a steward for the said Dartmouth College, and appoint to them, and
each of them, their respective businesses and trust; and displace and
discharge from the service of said college, such treasurer, clerk,
usher or steward, and to elect others in their room and stead; which
officers so elected, as before directed, we do for us, our heirs and
successors, by these presents, constitute and establish in their
respective offices, and do give to each and every of them full power
and authority to exercise the same in said Dartmouth College,
according to the [17
U.S. 518, 532] directions, and during the pleasure of
said trustees, as fully and freely as any like officers in any of our
universities, colleges or seminaries of learning in our realm of Great
Britain, lawfully may or ought to do. And also, that the said trustees
and their successors, or the major part of any seven or more of them,
which shall convene for that purpose, as is above directed, as often
as one or more of said trustees shall die, or by removal or otherwise
shall, according to their judgment, become unfit or incapable to serve
the interests of said college, do, as soon as may be after the death,
removal or such unfitness or incapacity of such trustee or trustees,
elect and appoint such trustee or trustees as shall supply the place
of him or them so dying, or becoming incapable to serve the interests
of said college; and every trustee so elected and appointed shall, by
virtue of these presents, and such election and appointment, be vested
with all the powers and privileges which any of the other trustees of
said college are hereby vested with. And we do further will, ordain
and direct, that from and after the expiration of two years from the
enrolment of these presents, such vacancy or vacancies as may or shall
happen, by death or otherwise, in the aforesaid number of trustees,
shall be filled up by election as aforesaid, so that when such
vacancies shall be filled up unto the complete number of twelve
trustees, eight of the aforesaid whole number of the body of trustees
shall be resident, and respectable freeholders of our said province of
New Hampshire, and seven of said whole number shall be laymen.
[17 U.S. 518, 533]
And we do further, of our special grace, certain knowledge and
mere motion, will, give and grant unto the said trustees of Dartmouth
College, that they, and their successors, or the major part of any
seven of them, which shall convene for that purpose, as is above
directed, may make, and they are hereby fully empowered, from time to
time, fully and lawfully to make and establish such ordinances, orders
and laws, as may tend to the good and wholesome government of the said
college, and all the students and the several officers and ministers
thereof, and to the public benefit of the same, not repugnant to the
laws and statutes of our realm of Great Britain, or of this our
province of New Hampshire, and not excluding any person of any
religious denomination whatsoever, from free and equal liberty and
advantage of education, or from any of the liberties and privileges or
immunities of the said college, on account of his or their speculative
sentiments in religion, and of his or their being of a religious
profession different from the said trustees of the said Dartmouth
College. And such ordinances, orders and laws, which shall as
aforesaid be made, we do, for us, our heirs and successors, by these
presents, ratify, allow of, and confirm, as good and effectual to
oblige and bind all the students, and the several officers and
ministers of the said college. And we do hereby authorize and empower
the said trustees of Dartmouth College, and the president, tutors and
professors by them elected and appointed as aforesaid, to put such
ordinances, orders and laws in execution, to all proper intents and
purposes. [17 U.S. 518,
534] And we do further, of our special grace, certain
knowledge and mere motion, will, give, and grant unto the said
trustees of said Dartmouth College, for the encouragement of learning,
and animating the students of said college to diligence and industry,
and a laudable progress in literature, that they, and their
successors, or the major part of any seven or more of them, convened
for that purpose, as above directed, do, by the president of said
college, for the time being, or any other deputed by them, give and
grant any such degree or degrees to any of the students of the said
college, or any others by them thought worthy thereof, as are usually
granted in either of the universities, or any other college in our
realm of Great Britain; and that they sign and seal diplomas or
certificates of such graduations, to be kept by the graduates as
perpetual memorials and testimonials thereof.
And we do further, of our special grace, certain knowledge and mere
motion, by these presents, for us, our heirs and successors, give and
grant unto the trustees of said Dartmouth College, and to their
successors, that they and their successors shall have a common seal,
under which they may pass all diplomas or certificates of degrees, and
all other affairs and business of, and concerning the said college;
which shall be engraven in such a form and with such an inscription as
shall be devised by the said trustees, for the time being, or by the
major part of any seven or more of them, convened for the service of
the said college, as is above directed.
[17 U.S. 518, 535]
And we do further, for us, our heirs and successors, give and
grant unto the said trustees of the said Dartmouth College, and their
successors, or to the major part of any seven or more of them,
convened for the service of the said college, full power and
authority, from time to time, to nominate and appoint all other
officers and ministers, which they shall think convenient and
necessary for the service of the said college, not herein particularly
named or mentioned; which officers and ministers we do hereby empower
to execute their offices and trusts, as fully and freely as any of the
officers and ministers in our universities or colleges in our realm of
Great Britain lawfully may or ought to do.
And further, that the generous contributors to the support of this
design of spreading the knowledge of the only true God and Saviour
among the American savages, may, from time to time, be satisfied that
their liberalities are faithfully disposed of, in the best manner, for
that purpose, and that others may, in future time, be encouraged in
the exercise of the like liberality, for promoting the same pious
design, it shall be the duty of the president of said Dartmouth
College, and of his successors, annually, or as often as he shall be
thereunto desired or required, to transmit to the right honorable,
honorable, and worthy gentlemen of the trust, in England, before
mentioned, a faithful account of the improvements and disbursements of
the several sums he shall receive from the donations and bequests made
in England, through the hands of said trustees, and also advise them
of the general plans laid, and prospects exhibited, as well as a
faithful [17 U.S. 518,
536] account of all remarkable occurrences, in order, if
they shall think expedient, that they may be published. And this to
continue so long as they shall perpetuate their board of trust, and
there shall be any of the Indian natives remaining to be proper
objects of that charity. And lastly, our express will and pleasure is,
and we do, by these presents, for us, our heirs and successors, give
and grant unto the said trustees of Dartmouth College, and to their
successors for ever, that these our letters-patent, on the enrolment
thereof in the secretary's office of our province of New Hampshire
aforesaid, shall be good and effectual in the law, to all intents and
purposes, against us, our heirs and successors, without any other
license, grant or confirmation from us, our heirs and successors,
hereafter by the said trustees to be had and obtained, notwithstanding
the not writing or misrecital, not naming or misnaming the aforesaid
offices, franchises, privileges, immunities or other the premises, or
any of them, and notwithstanding a writ of ad quod damnum hath not
issued forth to inquire of the premises, or any of them, before the
ensealing hereof, any statute, act, ordinance, or provision, or any
other matter or thing, to the contrary notwithstanding. To have and to
hold, all and singular the privileges, advantages, liberties,
immunities, and all other the premises herein and hereby granted, or
which are meant, mentioned or intended to be herein and hereby given
and granted, unto them, the said trustees of Dartmouth College, and to
their successors for ever. In testimony whereof, we have caused these
our letters to be made patent, and the public seal of
[17 U.S. 518, 537]
our said province of New Hampshire to be hereunto affixed.
Witness our trusty and well-beloved John Wentworth, Esquire, governor
and commander-in- chief in and over our said province, &c., this
thirteenth day of December, in the tenth year of our reign, and in the
year of our Lord 1769.
N.B. The words 'and such professor or tutor, or any three or more
of the trustees, shall immediately appoint a meeting of the body of
the trustees, for the purpose aforesaid,' between the first and second
lines, also the words 'or more,' between the 27th and 28th lines, also
the words 'or more,' between the 28th and 29th lines, and also the
words 'to all intents and purposes,' between the 37th and 38th lines
of this sheet, were respectively interlined, before signing and
sealing.
And the said jurors, upon their oath, further say, that afterwards,
upon the 18th day of the same December, the said letters-patent were
duly enrolled and recorded in the secretary's office of said province,
now state, of New Hampshire; and afterwards, and within one year from
the issuing of the same letters-patent, all the persons named as
trustees in the same accepted the said letters-patent, and assented
thereunto, and the corporation therein and thereby created and erected
was duly organized, and has, until the passing of the act of the
legislature of the state of New Hampshire, of the 27th of June, A. D.
1816, and ever since (unless prevented by said act and the
[17 U.S. 518, 538]
doings under the same) continued to be a corporation.
And the said jurors, upon their oath, further say, that immediately
after its erection and organization as aforesaid, the said corporation
had, took, acquired and received, by gift, donation, devise and
otherwise, lands, goods, chattels and moneys of great value; and from
time to time since, have had, taken, received and acquired, in manner
aforesaid, and otherwise, lands, goods, chattels and moneys of great
value; and on the same 27th day of June, A. D. 1816, the said
corporation, erected and organized as aforesaid, had, held and
enjoyed, and ever since have had, held and enjoyed, divers lands,
tenements, hereditaments, goods, chattels and moneys, acquired in
manner aforesaid, the yearly income of the same, not exceeding the sum
of $26,666, for the use of said Dartmouth College, as specified in
said letters-patent. And the said jurors, upon their oath, further
say, that part of the said lands, so acquired and holden by the said
trustees as aforesaid, were granted by (and are situate in) the state
of Vermont, A. D. 1785, and are of great value; and other part of said
lands, so acquired and holden as aforesaid, were granted by (and are
situate in) the state of New Hampshire, in the years 1789 and 1807,
and are of great value. And the said jurors, upon their oath, further
say, that the said trustees of Dartmonth College, so constituted as
aforesaid, on the same 27th day of June, A. D. 1816, were possessed of
the goods and chattels in the declaration of the said trustees
specified, [17 U.S. 518,
539] and at the place therein mentioned, as of their own
proper goods and chattels, and continued so possessed until, and at
the time of the demand and refusal of the same, as hereinafter
mentioned, unless divested thereof, and their title thereto defeated
and rendered invalid, by the provisions of the act of the state of New
Hampshire, made and passed on the same 27th day of June, A. D. 1816,
and the doings under the same, as hereinafter mentioned and recited.
And the said jurors, upon their oath, further say, that on the 27th
day of June, A. D. 1816, the legislature of said state of New
Hampshire made and passed a certain act, entitled, 'an act to amend
the charter, and enlarge and improve the corporation of Dartmouth
College,' in the words following:
An act to amend the charter, and enlarge and improve the
corporation of Dartmouth College.
Whereas, knowledge and learning generally diffused through a
community, are essential to the preservation of a free government, and
extending the opportunities and advantages of education is highly
conducive to promote this end, and by the constitution it is made the
duty of the legislators and magistrates, to cherish the interests of
literature, and the sciences, and all seminaries established for their
advancement; and as the college of the state may, in the opinion of
the legislature, be rendered more extensively useful: therefore--
1. Be it enacted, &c., that the
[17 U.S. 518, 540] corporation, heretofore
called and known by the name of the Trustees of Dartmouth College,
shall ever hereafter be called and known by the name of the Trustees
of Dartmouth University; and the whole number of said trustees shall
be twenty-one, a majority of whom shall form a quorum for the
transaction of business; and they and their successors in that
capacity, as hereby constituted, shall respectively for ever have,
hold, use, exercise and enjoy all the powers, authorities, rights,
property, liberties, privileges and immunities which have hitherto
been possessed, enjoyed and used by the Trustees of Dartmouth College,
except so far as the same may be varied or limited by the provisions
of this act. And they shall have power to determine the times and
places of their meetings, and manner of notifying the same; to
organize colleges in the university; to establish an institute, and
elect fellows and members thereof: to appoint such officers as they
may deem proper, and determine their duties and compensation, and also
to displace them; to delegate the power of supplying vacancies in any
of the offices of the university, for any term of time not extending
beyond their next meeting: to pass ordinances for the government of
the students, with reasonable penalties, not inconsistent with the
constitution and laws of this state; to prescribe the course of
education, and confer degrees; and to arrange, invest and employ the
funds of the university.
2. And be it further enacted, that there shall be a board of
overseers, who shall have perpetual succession, and whose number shall
be twenty-five, [17 U.S.
518, 541] fifteen of whom shall constitute a quorum for
the transaction of business. The president of the senate, and the
speaker of the house of representatives of New Hampshire, the governor
and lientenant-governor of Vermont, for the time being, shall be
members of said board, ex officio. The board of overseers shall have
power to determine the times and places of their meetings, and manner
of notifying the same; to inspect and confirm, or disapprove and
negative, such votes and proceedings of the board of trustees as shall
relate to the appointment and removal of president, professors and
other permanent officers of the university, and determine their
salaries; to the establishment of colleges and professorships, and the
erection of new college buildings: provided always, that the said
negative shall be expressed within sixty days from the time of said
overseers being furnished with copies of such acts: provided also,
that all votes and proceedings of the board of trustees shall be valid
and effectual, to all intents and purposes, until such negative of the
board of overseers be expressed, according to the provisions of this
act.
3. Be it further enacted, that there shall be a treasurer of said
corporation, who shall be duly sworn, and who, before he enters upon
the duties of his office, shall give bonds, with sureties, to the
satisfaction of the corporation, for the faithful performance thereof;
and also a secretary to each of the boards of trustees and overseers,
to be elected by the said boards, respectively, who shall keep a just
and true record of the proceedings of the board for
[17 U.S. 518, 542]
which he was chosen. And it shall furthermore be the duty of
the secretary of the board of trustees to furnish, as soon as may be,
to the said board of overseers, copies of the records of such votes
and proceedings, as by the provisions of this act are made subject to
their revision and control.
4. Be it further enacted, that the president of Dartmouth
University, and his successors in office, shall have the
superintendence of the government and instruction of the students, and
may preside at all meetings of the trustees, and do and execute all
the duties devolving by usage on the president of a university. He
shall render annually to the governor of this state an account of the
number of students, and of the state of the funds of the university;
and likewise copies of all important votes and proceedings of the
corporation and overseers, which shall be made out by the secretaries
of the respective boards.
5. Be it further enacted, that the president and professors of the
university shall be nominated by the trustees, and approved by the
overseers: and shall be liable to be suspended or removed from office
in manner as before provided. And each of the two boards of trustees
and overseers shall have power to suspend and remove any member of
their respective boards.
6. Be it further enacted, that the governor and counsel are hereby
authorized to fill all vacancies in the board of overseers, whether
the same be original vacancies, or are occasioned by the death,
resignation or removal of any member. And
[17 U.S. 518, 543]
the governor and counsel in like manner shall, by appointments,
as soon as may be, complete the present board of trustees to the
number of twenty-one, as provided for by this act, and shall have
power also to fill all vacancies that may occur previous to, or during
the first meeting of the said board of trustees. But the president of
said university for the time being, shall, nevertheless, be a member
of said board of trustees, ex officio. And the governor and council
shall have power to inspect the doings and proceedings of the
corporation, and of all the officers of the university, whenever they
deem it expedient; and they are hereby required to make such
inspection, and report the same to the legislature of this state, as
often as once in every five years. And the governor is hereby
authorized and requested to summon the first meeting of the said
trustees and overseers, to be held at Hanover, on the 26th day of
August next.
7. Be it further enacted, that the president and professors of the
university, before entering upon the duties of their offices, shall
take the oath to support the constitution of the United States and of
this state; certificates of which shall be in the office of the
secretary of this state, within sixty days from their entering on
their offices respectively.
8. Be it further enacted, that perfect freedom of religious opinion
shall be enjoyed by all the officers and students of the university;
and no officer or student shall be deprived of any honors, privileges
or benefits of the institution, on account of his religious creed or
belief. The theological colleges which
[17 U.S. 518, 544] may be established in
the university shall be founded on the same principles of religious
freedom; and any man, or body of men, shall have a right to endow
colleges or professorships of any sect of the Protestant Christian
religion: and the trustees shall be held and obliged to appoint
professors of learning and piety of such sects, according to the will
of the donors.
Approved, June 27th, 1816.
And the said jurors, upon their oath, further say, that, at the
annual meeting of the trustees of Dartmouth College, constituted
agreeably to the letters-patent aforesaid, and in no other way or
manner, holden at said college, on the 28th day of August, A. D. 1816,
the said trustees voted and resolved, and caused the said vote and
resolve to be entered on their records, that they do not accept the
provisions of the said act of the legislature of New Hampshire of the
27th of June 1816, above recited, but do, by the said vote and
resolve, expressly refuse to accept or act under the same. And the
said jurors, upon their oath, further say, that the said trustees of
Dartmouth College have never accepted, assented to, or acted under,
the said act of the 27th of June, A. D. 1816, or any act passed in
addition thereto, or in amendment thereof, but have continued to act,
and still claim the right of acting, under the said letters-patent.
And the said jurors, upon their oath, further say, that on the 7th
day of October, A. D. 1816, and before the commencement of this suit,
the said trustees of Dartmouth College demanded of the said
[17 U.S. 518, 545]
William H. Woodward the property, goods and chattels in the
said declaration specified, and requested the said William H.
Woodward, who then had the same in his hands and possession, to
deliver the same to them, which the said William H. Woodward then and
there refused to do, and has ever since neglected and refused to do,
but converted the same to his own use, if the said trustees of
Dartmouth College could, after the passing of the said act of the 27th
day of June, lawfully demand the same, and if the said William H.
Woodward was not, by law, authorized to retain the same in his
possession after such demand.
And the said jurors, upon their oath, further say, that on the 18th
day of December, A. D. 1816, the legislature of the said state of New
Hampshire made and passed a certain other act, entitled, 'an act in
addition to, and in amendment of, an act, entitled, an act to amend
the charter, and enlarge and improve the corporation of Dartmouth
College,' in the words following:
An act in addition to, and in amendment of, an act, entitled, 'an
act to amend the charter, and enlarge and improve the Corporation of
Dartmouth College.'
Whereas, the meetings of the trustees and overseers of Dartmouth
University, which were summoned agreeably to the provisions of said
act, failed of being duly holden, in consequence of a quorum of
neither said trustees nor overseers attending at the
[17 U.S. 518, 546]
time and place appointed, whereby the proceedings of said
corporation have hitherto been, and still are delayed:
1. Be it enacted, &c., that the governor be, and he is hereby
authorized and requested to summon a meeting of the trustees of
Dartmouth University, at such time and place as he may deem expedient.
And the said trustees, at such meeting, may do and transact any matter
or thing, within the limits of their jurisdiction and power, as such
trustees, to every intent and purpose, and as fully and completely as
if the same were transacted at any annual or other meeting. And the
governer, with advice of council, is authorized to fill all vacancies
that have happened, or may happen in the board of said trustees,
previous to their next annual meeting. And the governor is hereby
authorized to summon a meeting of the overseers of said university, at
such time and place as he may consider proper. And provided, a less
number than a quorum of said board of overseers convene at the time
and place appointed for such meeting of their board, they shall have
power to adjourn, from time to time, until a quorum shall have
convened.
2. And be it further enacted, that so much of the act, to which
this is an addition, as makes necessary any particular number of
trustees or overseers of said university, to constitute a quorum for
the transaction of business, be, and the same hereby is repealed; and
that hereafter, nine of said trustees, convened agreeably to the
provisions of this act, or
[17 U.S. 518, 547] to those of that to
which this is an addition, shall be a quorum for transacting business;
and that in the board of trustees, six votes at least shall be
necessary for the passage of any act or resolution. And provided also,
that any smaller number than nine of said trustees, convened at the
time and place appointed for any meeting of their board, according to
the provisions of this act, or that to which this is an addition,
shall have power to adjourn from time to time, until a quorum shall
have convened.
3. And be it further enacted, that each member of said board of
trustees, already appointed or chosen, or hereafter to be appointed or
chosen, shall, before entering on the duties of his office, make and
subscribe an oath for the faithful discharge of the duties aforesaid;
which oath shall be returned to, and filed in the office of the
secretary of state, previous to the next regular meeting of said
board, after said member enters on the duties of his office, as
aforesaid.
Approved, December 18th, 1816.
And the said jurors, upon their oath, further say, that on the 26th
day of December, A. D. 1816, the legislature of said state of New
Hampshire made and passed a certain other act, entitled, 'an act in
addition to an act, entitled, an act in addition to, and in amendment
of an act, entitled, an act to amend the charter and enlarge and
improve the corporation of Dartmouth College,' in the words following:
[17 U.S. 518, 548]
An act in addition to an act, entitled, 'an act in addition to,
and in amendment of, an act, entitled, an act to amend the charter and
enlarge and improve the corporation of Dartmouth College.'
Be it enacted &c., that if any person or persons shall assume the
office of president, trustee, professor, secretary, treasurer,
librarian or other officer of Dartmouth University; or by any name, or
under any pretext, shall, directly or indirectly, take upon himself or
themselves the discharge of any of the duties of either of those
offices, except it be pursuant to, and in conformity with, the
provisions of an act, entitled, 'an act to amend the charter and
enlarge and improve the corporation of Dartmouth College,' or, of the
'act, in addition to and in amendment of an act, entitled, an act to
amend the charter and enlarge and improve the corporation of Dartmouth
College,' or shall in any way, directly or indirectly, wilfully impede
or hinder any such officer or officers already existing, or hereafter
to be appointed agreeably to the provisions of the acts aforesaid, in
the free and entire discharge of the duties of their respective
offices, conformably to the provisions of said acts, the person or
persons so offending shall, for each offence, forfeit and pay the sum
of five hundred dollars, to be recovered by any person who shall sue
therefor, one-half thereof to the use of the prosecutor, and the other
half to the use of said university.
And be it further enacted, that the person or persons who sustained
the offices of secretary and treasurer
[17 U.S. 518, 549] of the trustees of
Dartmouth College, next before the passage of the act, entitled, 'an
act to amend the charter and enlarge and improve the corporation of
Dartmouth College,' shall continue to hold and discharge the duties of
those offices, as secretary and treasurer of the trustees of Dartmouth
University, until another person or persons be appointed, in his or
their stead, by the trustees of said university. And that the
treasurer of said university, so existing, shall, in his office, have
the care, management, direction and superintendence of the property of
said corporation, whether real or personal, until a quorum of said
trustees shall have convened in a regular meeting.
Approved, December 26th, 1816.
And the said jurors, upon their oath, further say, that the said
William H. Woodward, before the said 27th day of June, had been duly
appointed by the said trustees of Dartmouth College, secretary and
treasurer of the said corporation, and was duly qualified to exercise,
and did exercise the said offices, and perform the duties of the same;
and as such secretary and treasurer, rightfully had, while he so
continued secretary and treasurer as aforesaid, the custody and
keeping of the several goods, chattels and property, in said
declaration specified.
And the said jurors, upon their oath, further say, that the said
William H. Woodward was removed by said trustees of Dartmouth College
(if the said trustees could, by law, do the said acts) from said
office of secretary, on the 27th day of August, A. D. 1816, and from
said office of treasurer, on the 27th day of
[17 U.S. 518, 550]
September, then next following, of which said removals he, the
said William H. Woodward, had due notice on each of said days last
mentioned.
And the said jurors, upon their oath, further say, that the
corporation called the Trustees of Dartmouth University, was duly
organized on the 4th day of February, A. D. 1817, pursuant to, and
under, the said recited acts of the 27th day of June, and of the 18th
and 26th days of December, A. D. 1816; and the said William H.
Woodward was, on the said 4th day of February, A. D. 1817, duly
appointed by the said Trustees of Dartmouth University, secretary and
treasurer of the said Trustees of Dartmouth University, and then and
there accepted both said offices.
And the said jurors, upon their oath, further say, that this suit
was commenced on the 8th day of February, A. D. 1817. But whether upon
the whole matter aforesaid, by the jurors aforesaid, in manner and
form aforesaid found, the said acts of the 27th of June, 18th and 26th
of December, A. D. 1816, are valid in law, and binding on the said
trustees of Dartmouth College, without acceptance thereof and assent
thereunto by them, so as to render the plaintiffs incapable of
maintaining this action, or whether the same acts are repugnant to the
constitution of the United States, and so void, the said jurors are
wholly ignorant, and pray the advice of the court upon the premises.
And if, upon the said matter, it shall seem to the court here, that
the said acts last mentioned are valid in law, and binding on said
trustees of Dartmouth College,
[17 U.S. 518, 551] without acceptance
thereof, and assent thereto, by them, so as to render the plaintiffs
incapable of maintaining this action, and are not repugnant to the
constitution of the United States, then the said jurors, upon their
oath, say, that the said William H. Woodward is not guilty of the
premises above laid to his charge, by the declaration aforesaid, as
the said William H. Woodward hath above in pleading alleged. But if,
upon the whole matter aforesaid, it shall seem to the court here, that
the said acts last mentioned are not valid in law, and are not binding
on the said trustees of Dartmouth College, without acceptance thereof,
and assent thereto, by them, so as to render them incapable of
maintaining this action, and that the said acts are repugnant to the
constitution of the United States and void, then the said jurors, upon
their oath, say that the said William H. Woodward is guilty of the
premises above laid to his charge, by the declaration aforesaid, and
in that case, they assess the damages of them, the said trustees of
Dartmouth College, by occasion thereof, at $20,000.
Judgment having been afterwards rendered upon the said special
verdict, by the superior court of the state of New Hampshire, being
the highest court of law or equity of said state, for the plaintiff
below, the cause was brought before this court by writ of error.
March 10th and 11th, 1818.
Webster, for the plaintiffs in error.-The general question is,
whether the acts of the 27th of June, and of the 18th and 26th of
December 1816, are [17
U.S. 518, 552] valid and binding on the rights of the
plaintiffs, without their acceptance or assent.
The substance of the facts recited in the preamble to the charter,
is, that Dr. Wheelock had founded a charity, on funds owned and
procured by himself; that he was at that time, the sole dispenser and
sole administrator, as well as the legal owner of these funds; that he
had made his will devising this property in trust, to continue the
existence and uses of the school, and appointed trustees; that, in
this state of things, he had been invited to fix his school
permanently in New Hampshire, and to extend the design of it to the
education of the youth of that province; that before he removed his
school, or accepted this invitation, which his friends in England had
advised him to accept, he applied for a charter, to be granted, not to
whomsoever the king or government of the province should please, but
to such persons as he named and appointed, viz., the persons whom he
had already appointed to be the future trustees of his charity, by his
will. The charter, or letters-patent, then proceed to create such a
corporation, and to appoint twelve persons to constitute it, by the
name of the 'Trustees of Dartmouth College;' to have perpetual
existence, as such corporation, and with power to hold and dispose of
lands and goods for the use of the college, with all the ordinary
powers of corporations. They are, in their discretion, to apply the
funds and property of the college to the support of the president,
tutors, ministers and other officers of the college, and such
missionaries and school- masters as they may see fit to employ among
[17 U.S. 518, 553]
the Indians. There are to be twelve trustees for ever, and no
more; and they are to have the right of filling vacancies occurring in
their own body. The Rev. Mr. Wheelock is declared to be the founder of
the college, and is, by the charter, appointed first president, with
power to appoint a successor, by his last will. All proper powers of
government, superintendence and visitation, are vested in the
trustees. They are to appoint and remove all officers, at their
discretion; to fix their salaries, and assign their duties; and to
make all ordinances, orders and laws, for the government of the
students. And to the end that the persons who had acted as
depositaries of the contributions in England, and who had also been
contributors themselves, might be satisfied of the good use of their
contributions, the president was, annually, or when required, to
transmit to them an account of the progress of the institution, and
the disbursements of its funds, so long as they should continue to act
in that trust. These letters-patent are to be good and effectual in
law, against the king, his heirs and successors for ever, without
further grant or confirmation; and the trustees are to hold all and
singular these privileges, advantages, liberties and immunities, to
them and to their successors for ever. No funds are given to the
college by this charter. A corporate existence and capacity are given
to the trustees, with the privileges and immunities which have been
mentioned, to enable the founder and his associates the better to
manage the funds which they themselves had contributed, and such
others as they might afterwards obtain.
[17 U.S. 518, 554]
After the institution, thus created and constituted, had
existed, uninterruptedly and usefully, nearly fifty years, the
legislature of New Hampshire passed the acts in question. The first
act makes the twelve trustees under the charter, and nine other
individuals to be appointed by the governor and council, a
corporation, by a new name; and to this new corporation transfers all
the property, rights, powers, liberties and privileges of the old
corporation; with further power to establish new colleges and an
institute, and to apply all or any part of the funds to these
purposes, subject to the power and control of a board of twenty-five
overseers, to be appointed by the governor and council. The second act
makes further provisions for executing the objects of the first, and
the last act authorizes the defendant, the treasurer of the
plaintiffs, to retain and hold their property, against their will.
If these acts are valid, the old corporation is abolished, and a
new one created. The first act does, in fact, if it can have effect,
create a new corporation, and transfer to it all the property and
franchises of the old. The two corporations are not the same, in
anything which essentially belongs to the existence of a corporation.
They have different names, and different powers, rights and duties;
their organization is wholly different; the powers of the corporation
are not vested in the same or similar hands. In one, the trustees are
twelve, and no more; in the other, they are twenty-one. In one, the
power is a single board; in the other, it is divided between two
boards. Although the act professes to
[17 U.S. 518, 555] include the old trustees
in the new corporation, yet that was without their assent, and against
their remonstrance; and no person can be compelled to be a member of
such a corporation against his will. It was neither expected nor
intended, that they should be members of the new corporation. The act
itself treats the old corporation as at an end, and going on the
ground, that all its functions have ceased, it provides for the first
meeting and organization of the new corporation. It expressly provides
also, that the new corporation shall have and hold all the property of
the old; a provision which would be quite unnecessary, upon any other
ground, than that the old corporation was dissolved. But if it could
be contended, that the effect of these acts was not entirely to
abolish the old corporation, yet it is manifest, that they impair and
invade the rights, property and powers of the trustees, under the
charter, as a corporation, and the legal rights, privileges and
immunities which belong to them, as individual members of the
corporation. The twelve trustees were the sole legal owners of all the
property acquired under the charter; by the acts, others are admitted,
against their will, to be joint owners. The twelve individuals, who
are trustees, were possessed of all the franchises and immunities
conferred by the charter; by the acts, nine other teustees, and
twenty-five overseers, are admitted, against their will, to divide
these franchises and immunities with them. If, either as a
corporation, or as individuals, they have any legal rights, this
forcible intrusion of others violates those rights, as manifestly as
an entire and complete ouster
[17 U.S. 518, 556] and dispossession. These
acts alter the whole constitution of the corporation; they affect the
rights of the whole body, as a corporation, and the rights of the
individuals who compose it; they revoke corporate powers and
franchises; they alienate and transfer the property of the college to
others. By the charter, the trustees had a right to fill vacancies in
their own number; this is now taken away. They were to consist of
twelve, and by express provision, of no more; this is altered. They
and their successors, appointed by themselves, were for ever to hold
the property; the legislature has found successors for them, before
their seats are vacant. The powers and privileges, which the twelve
were to exercise exclusively, are now to be exercised by others. By
one of the acts, they are subjected to heavy penalties, if they
exercise their offices, or any of those powers and privileges granted
them by charter, and which they had exercised for fifty years; they
are to be punished for not accepting the new grant, and taking its
benefits. This, it must be confessed, is rather a summary mode of
settling a question of constitutional right. Not only are new trustees
forced into the corporation, but new trusts and uses are created. The
college is turned into a university; power is given to create new
colleges, and to authorize any diversion of the funds, which may be
agreeable to the new boards, sufficient latitude in given, by the
undefined power of establishing an institute. To these new colleges,
and this institute, the funds contributed by the founder, Dr. Wheelock,
and by the original donors, the Earl of Dartmouth
[17 U.S. 518, 557]
and others, are to be applied, in plain and manifest disregard
of the uses to which they were given. The president, one of the old
trustees, had a right to his office, salary and emoluments, subject to
the twelve trustees alone; his title to these is now changed, and he
is made accountable to new masters; so also, all the professors and
tutors. If the legislature can, at pleasure, make these alterations
and changes in the rights and privileges of the plaintiffs, it may,
with equal propriety, abolish these rights and privileges altogether;
the same power which can do any part of this work, can accomplish the
whole. And, indeed, the argument, on which these acts have been
hitherto defended, goes altogether on the ground, that this is such a
corporation as the legislature may abolish at pleasure; and that its
members have no rights, liberties, franchises, property or privileges,
which the legislature may not revoke, annul, alienate or transfer to
others, whenever it sees fit.
It will be contended by the plaintiffs, that these acts are not
valid and binding on them without their assent. 1. Because they are
against common right, and the constitution of New Hampshire. 2.
Because they are repugnant to the constitution of the United States. I
am aware of the limits which bound the jurisdiction of the court in
this case; and that on this record, nothing can be decided, but the
single question, whether these acts are repugnant to the constitution
of the United States. Yet it may assist in forming an opinion of their
true nature and character, to compare them with those fundamental
principles, introduced into the state governments
[17 U.S. 518, 558]
for the purpose of limiting the exercise of the legislative
power, and which the constitution of New Hampshire expresses with
great fullness and accuracy.
It is not too much to assert, that the legislature of New Hampshire
would not have been competent to pass the acts in question, and to
make them binding on the plaintiffs, without their assent, even if
there had been, in the constitution of New Hampshire, or of the United
States, no special restriction on their power; because these acts are
not the exercise of a power properly legislative. Calder v. Bull, 3
Dall. 386. Their object and effect is, to take away from one, rights,
property and franchises, and to grant them to another. This is not the
exercise of a legislative power. To justify the taking away of vested
rights, there must be a forfeiture; to adjudge upon and declare which,
is the proper province of the judiciary. Attainder and confiscation
are acts of sovereign power, not acts of legislation. The British
parliament, among other unlimited powers, claims that of altering and
vacating charters; not as an act of ordinary legislation, but of
uncontrolled authority. It is, theoretically, omnipotent; yet, in
modern times, it has attempted the exercise of this power, very
rarely. In a celebrated instance, those who asserted this power in
parliament, vindicated its exercise only in a case, in which it could
be shown, 1st. That the charter in question was a charter of political
power. 2d. That there was a great and overruling state necessity,
justifying the [17 U.S.
518, 559] violation of the charter. 3. That the charter
had been abused, and justly forfeited. (Annual Register 1784, p. 160;
Parl. Reg. 1783; Mr. Burke's Speech on Mr. Fox's East India Bill,
Burke's Works, vol. 3, p. 414, 417, 467, 468, 486.) The bill affecting
this charter did not pass; its history is well known. The act which
afterwards did pass, passed with the assent of the corporation. Even
in the worst times, this power of parliament to repeal and rescind
charters has not often been exercised. The illegal proceedings in the
reign of Charles II. were under color of law. Judgments of forfeiture
were obtained in the courts. Such was the case of the quo warranto
against the city of London, and the proceedings by which the charter
of Massachusetts was vacated. The legislature of New Hampshire has no
more power over the rights of the plaintiffs than existed, somewhere,
in some department of government, before the revolution. The British
parliament could not have annulled or revoked this grant, as an act of
ordinary legislation. If it had done it at all, it could only have
been, in virtue of that sovereign power, called omnipotent, which does
not belong to any legislature in the United States. The legislature of
New Hampshire has the same power over this charter, which belonged to
the king, who granted it, and no more. By the law of England, the
power to create corporations is a part of the royal prerogative. 1 Bl.
Com. 472. By the revolution, this power may be considered as having
devolved on the legislature of
[17 U.S. 518, 560] the state, and it has,
accordingly, been exercised by the legislature. But the king cannot
abolish a corporation, or new model it, or alter its powers, without
its assent. This is the acknowledged and well-known doctrine of the
common law. 'Whatever might have been the notion in former times,'
says Lord MANSFIELD, 'it is most certain, now, that the corporations
of the universities are lay corporations; and that the crown cannot
take away from them any rights that have been formerly subsisting in
them, under old charters or prescriptive usage.' 3 Burr. 1656. After
forfeiture duly found, the king may regrant the franchises; but a
grant of franchises, already granted, and of which no forfeiture has
been found, is void. Corporate franchises can only be forfeited by
trial and judgment. King v. Pasmore, 3 T. R. 244. In case of a new
charter or grant to an existing corporation, it may accept or reject
it as it pleases. King v. Vice-Chancellor of Cambridge, 3 Burr. 1656;
3 T. R. 240, per Lord KENYON. It may accept such part of the grant as
it chooses, and reject the rest. 3 Burr. 1661. In the very nature of
things a charter cannot be forced upon any body; no one can be
compelled to accept a grant; and without acceptance, the grant is
necessarily void. Ellis v. Marshall, 2 Mass. 277; Kyd on Corp. 65-6.
It cannot be pretended, that the legislature, as successor to the king
in this part of his prerogative, has any power to revoke, vacate or
alter this charter. If, therefore, the legislature has not this power,
by any [17 U.S. 518,
561] specific grant contained in the constitution; nor as
included in its ordinary legislative powers; nor by reason of its
succession to the prerogatives of the crown in this particular; on
what ground would the authority to pass these acts rest, even if there
were no special prohibitory clauses in the constitution, and the bill
of rights?
But there are prohibitions in the constitution and bill of rights
of New Hampshire, introduced for the purpose of limiting the
legislative power, and of protecting the rights and property of the
citizens. One prohibition is, 'that no person shall be deprived of his
property, immunities or privileges, put out of the protection of the
law, or deprived of his life, liberty or estate, but by judgment of
his peers, or the law of the land.' In the opinion, however, which was
given in the court below, it is denied, that the trustees, under the
charter, had any property, immunity, liberty or privilege, in this
corporation, within the meaning of this prohibition in the bill of
rights. It is said, that it is a public corporation and public
property. That the trustees have no greater interest in it than any
other individuals. That it is not private property, which they can
sell, or transmit to their heirs; and that, therefore, they have no
interest in it. That their office is a public trust, like that of the
governor, or a judge; and that they have no more concern in the
property of the college, than the governor in the property of the
state, or than the judges in the fines which they impose on the
culprits at their bar. That it is nothing to them, whether their
powers shall be extended or lessened, any more than it is
[17 U.S. 518, 562]
to the courts, whether their jurisdiction shall be enlarged or
diminished. It is necessary, therefore, to inquire into the true
nature and character of the corporation which was created by the
charter of 1769.
There are divers sorts of corporations; and it may be safely
admitted that the legislature has more power over some, than over
others. 1 Wooddes. 474; 1 Bl. Com. 467. Some corporations are for
government and political arrangement; such, for example, as cities,
counties and the towns in New England. These may be changed and
modified, as public convenience may require, due regard being always
had to the rights of property. Of such corporations, all who live
within the limits are, of course, obliged to be members, and to submit
to the duties which the law imposes on them as such. Other civil
corporations are for the advancement of trade and business, such as
banks, insurance companies, and the like. These are created, not by
general law, but usually by grant; their constitution is special; it
is such as the legislature sees fit to give, and the grantees to
accept.
The corporation in question is not a civil, although it is a lay
corporation. It is an eleemosynary corporation. It is a private
charity, originally founded and endowed by an individual, with a
charter obtained for it at his request, for the better administration
of his charity. 'The eleemosynary sort of corporations are such as are
constituted for the perpetual distributions of the free-alms or bounty
of the founder of them, to such persons as he has directed. Of this
[17 U.S. 518, 563]
are all hospitals for the maintenance of the poor, sick and
impotent; and all colleges both in our universities and out of them.'
1 Bl. Com. 471. Eleemosynary corporations are for the management of
private property, according to the will of the donors; they are
private corporations. A college is as much a private corporation as an
hospital; especially, a college founded as this was, by private
bounty. A college is a charity. 'The establishment of learning,' says
Lord HARDWICKE, 'is a charity, and so considered in the statute of
Elizabeth. A devise to a college, for their benefit, is a laudable
charity, and deserves encouragement.' 1 Ves. 537. The legal
signification of a charity is derived chiefly from the statute 43
Eliz., c. 4. 'Those purposes,' says Sir. W. GRANT, 'are considered
charitable, which that statute enumerates.' 9 Ves. 405. Colleges are
enumerated as charities in that statute. The government, in these
cases, lends its aid to perpetuate the beneficient intention of the
donor, by granting a charter, under which his private charity shall
continue to be dispensed, after his death. This is done, either by
incorporating the objects of the charity, as, for instance, the
scholars in a college, or the poor in a hospital; or by incorporating
those who are to be governors or trustees of the charity. 1 Wooddes.
474.
In cases of the first sort, the founder is, by the common law,
visitor. In early times, it became a maxim, that he who gave the
property might regulate it in future. Cujus est dare, ejus est
disponere. This right of visitation descended from the founder to his
heir, as [17 U.S. 518,
564] a right of property, and precisely as his other
property went to his heir; and in default of heirs, it went to the
king, as all other property goes to the king, for the want of heirs.
The right of visitation arises from the property; it grows out of the
endowment. The founder may, if he please, part with it, at the time
when he establishes the charity, and may vest it in others. Therefore,
if he chooses that governors, trustees or overseers should be
appointed in the charter, he may cause it to be done, and his power of
visitation will be transferred to them, instead of descending to his
heirs. The persons thus assigned or appointed by the founder will be
visitors, with all the powers of the founder, in exclusion of his
heir. 1 Bl. Com. 472. The right of visitation then accrues to them, as
a matter of property, by the gift, transfer or appointment of the
founder. This is a private right, which they can assert in all legal
modes, and in which they have the same protection of the law as in all
other rights. As visitors, they may make rules, ordinances and
statutes, and alter and repeal them, so far as permitted so to do by
the charter. 2 T. R. 350-51. Although the charter proceeds from the
crown, or the government, it is considered as the will of the donor.
It is obtained at his request. He imposes it as the rule which is to
prevail in the dispensation of his bounty, in all future times. The
king, or government, which grants the charter, is not thereby the
founder, but he who furnishes the funds. The gift of the revenues is
the foundation. 1 Bl. Com. 480. The leading
[17 U.S. 518, 565]
case on this subject is Phillips v. Bury.
3 This was an ejectment brought to recover the rectory-house, &c.,
of Exeter college, in Oxford. The question was, whether the plaintiff
or defendant was legal rector. Exeter college was founded by an
individual, and incorporated by a charter granted by Queen Elizabeth.
The controversy turned upon the power of the visitor, and in the
discussion of the cause, the nature of college charters and
corporations was very fully considered; and it was determined, that
the college was a private corporation, and that the founder had a
right to appoint a visitor, and give him such power as he thought fit.
4 The learned Bishop Stillingfleet's argument in the same cause,
as a member of the House of Lords, when it was there heard, exhibits
very clearly the nature of colleges and similiar corporations.
5 These opinions received the sanction of the House of Lords, and
they seem to be settled and undoubted law. Where there is a charter,
vesting proper powers of government in trustees or governors, they are
visitors; and there is no control in anybody else; except only that
the courts of equity or of law will interfere so far as to preserve
the revenues, and prevent the perversion of the funds, and to keep the
visitors within their prescribed bounds. Green v. Rutherford, 1 Ves.
472; Attorney-General v. Foundling Hospital, 2 Ves. Jr. 47; Kyd on
Corp. 195; Coop. Eq. Pl. 292.
[17 U.S. 518, 566] 'The foundations of
colleges,' says Lord MANSFIELD, 'are to be considered in two views,
viz., as they are corporations, and as they are eleemosynary. As
eleemosynary, they are the creatures of the founder; he may delegate
his power, either generally or specially; he may prescribe particular
modes and manners, as to the exercise of part of it. If he makes a
general visitor (as by the general words, visitator sit), the person
so constituted has all incidental power; but he may be restrained as
to particular instances. The founder may appoint a special visitor,
for a particular purpose, and no further. The founder may make a
general visitor; and yet appoint an inferior particular power, to be
executed without going to the visitor in the first instance.' St.
John's College, Cambridge v. Todington, 1 Burr. 200. And even if the
king be founder, if he grant a charter incorporating trustees and
governors, they are visitors, and the king cannot visit.
Attorney-General v. Middleton, 2 Ves. 328. A subsequent donation, or
engrafted fellowship, falls under the same general visitatorial power,
if not otherwise specially provided. Green v. Rutherford; St. John's
College v. Todington.
In New England, and perhaps throughout the United States,
eleemosynary corporations have been generally established in the later
mode, that is by incorporating governors or trustees, and vesting in
them the right of visitation. Small variations may have been in some
instances adopted; as in the case of Harvard College, where some power
of inspection is given to the overseers, but
[17 U.S. 518, 567]
not, strictly speaking, a visitatorial power, which still
belongs, it is apprehended, to the fellows or members of the
corporation. In general, there are many donors. A charter is obtained,
comprising them all, or some of them, and such others as they choose
to include, with the right of appointing their successors. They are
thus the visitors of their own charity, and appoint others, such as
they may see fit, to exercise the same office in time to come. All
such corporations are private. The case before the court is clearly
that of an eleemosynary corporation. It is, in the strictest legal
sense, a private charity. In King v. St. Catharine's Hall, 4 T. R.
233, that college is called a private, eleemosynary, lay corporation.
It was endowed by a private founder, and incorporated by
letters-patent. And in the same manner was Dartmouth College founded
and incorporated. Dr. Wheelock is declared by the charter to be its
founder. It was established by him, on funds contributed and collected
by himself. As such founder, he had a right of visitation, which he
assigned to the trustees, and they received it, by his consent and
appointment, and held it under the charter. 1 Bl. Com. ubi supra. He
appointed these trustees visitors, and in that respect to take place
of his heir; as he might have appointed devisees to take his estate,
instead of his heir. Little, probably, did he think, at that time,
that the legislature would ever take away this property and these
privileges, and give them to others; little did he suppose, that this
charter secured to him and his successors no legal rights; little did
[17 U.S. 518, 568]
the other donors think so. If they had, the college would have
been, what the university is now, a thing upon paper, existing only in
name. The numerous academies in New England have been established
substantially in the same manner. They hold their property by the same
tenure, and no other. Nor has Harvard College any surer title than
Dartmouth College; it may, to- day, have more friends; but to-morrow,
it may have more enemies; its legal rights are the same. So also of
Yale College; and indeed of all the others. When the legislature gives
to these institutions, it may, and does, accompany its grants with
such conditions as it pleases. The grant of lands by the legislature
of New Hampshire to Dartmouth College, in 1789, was accompanied with
various conditions. When donations are made, by the legislature or
others, to a charity, already existing, without any condition, or the
specification of any new use, the donation follows the nature of the
charity. Hence the doctrine, that all eleemosynary corporations are
private bodies. They are founded by private persons, and on private
property. The public cannot be charitable in these institutions. It is
not the money of the public, but of private persons which is
dispensed. It may be public, that is, general, in its uses and
advantages; and the state may very laudably add contributions of its
own to the funds; but it is still private in the tenure of the
property, and in the right of administering the funds.
If the doctrine laid down by Lord HOLT, and the House of Lords, in
Phillips v. Bury, and recognised and established in all the other
cases, be correct, [17
U.S. 518, 569] the property of this college was private
property; it was vested in the trustees by the charter, and to be
administered by them, according to the will of the founder and donors,
as expressed in the charter; they were also visitors of the charity,
in the most ample sense. They had, therefore, as they contend,
privileges, property and immunities, within the true meaning of the
bill of rights. They had rights, and still have them, which they can
assert against the legislature, as well as against other wrongdoers.
It makes no difference, that the estate is holden for certain trusts;
the legal estate is still theirs. They have a right in the property,
and they have a right of visiting and superintending the trust; and
this is an object, of legal protection, as much as any other right.
The charter declares that the powers conferred on the trustees, are
'privileges, advantages, liberties and immunities;' and that they
shall be for ever holden by them and their successors. The New
Hampshire bill of rights declares that no one shall be deprived of his
'property, privileges or immunities,' but by judgment of his peers, or
the law of the land.
The argument on the other side is, that although these terms may
mean something in the bill of rights, they mean nothing in this
charter. But they are terms of legal signification, and very properly
used in the charter; they are equivalent with franchises. Blackstone
says, that franchise and liberty are used as synonymous terms. And
after enumerating other liberties and franchises, he says, 'it is
likewise, a franchise, for a number of persons to be incorporated and
subsist as a body politic, with a power to maintain
[17 U.S. 518, 570]
perpetual succession, and do other corporate acts; and each
individual member of such corporation is also said to have a franchise
or freedom.' 2 Bl. Com. 37. Liberties is the term used in magna charta,
as including franchises, privileges, immunities and all the rights
which belong to that class. Professor Sullivan says, the term
signifies the 'privileges that some of the subjects, whether single
persons or bodies corporate, have above others by the lawful grant of
the king; as the chattels of felons or outlaws, and the lands and
privilegs of corporations.' Sullivan's Lect, 41st Lect. The privilege,
then, of being a member of a corporation, under a lawful grant, and of
exercising the rights and powers of such member, is such a privilege,
liberty or franchise, as has been the object of legal protection, and
the subject of a legal interest, from the time of magna charta to the
present moment. The plaintiffs have such an interest in this
corporation, individually, as they could assert and maintain in a
court of law, not as agents of the public, but in their own right.
Each trustee has a franchise, and if he be disturbed in the enjoyment
of it, he would have redress, on appealing to the law, as promptly as
for any other injury. If the other trustees should conspire against
any one of them, to prevent his equal right and voice in the
appointment of a president or professor, or in the passing of any
statute or ordinance of the college, he would be entitled to his
action, for depriving him of his franchise. It makes no difference,
that this property is to be holden and administered, and these
franchises exercised,
[17 U.S. 518, 571] for the purpose of diffusing learning.
No principle and no case establishes any such distinction. The public
may be benefited by the use of this property; but this does not change
the nature of the property, or the rights of the owners. The object of
the charter may be public good; so it is in all other corporations;
and this would as well justify the resumption or violation of the
grant in any other case as in this. In the case of an advowson, the
use is public, and the right cannot be turned to any private benefit
or emolument. It is, nevertheless, a legal private right, and the
property of the owner, as emphatically as his freehold. The rights and
privileges of trustees, visitors or governors of incorporated
colleges, stand on the same foundation. They are so considered, both
by Lord HOLT and Lord HARDWICKE. Phillips v. Bury; Green v.
Rutherforth. See also 2 Bl. Com. 21.
To contend, that the rights of the plaintiffs may be taken away,
because they derive from them no pecuniary benefit, or private
emolument, or because they cannot be transmitted to their heirs, or
would not be assets to pay their debts, is taking an extremely narrow
view of the subject. According to this notion, the case would be
different, if, in the charter, they had stipulated for a commission on
the disbursement of the funds; and they have ceased to have any
interest in the property, because they have undertaken to administer
it gratuitously. It cannot be necessary to say much in refutation of
the idea, that there cannot be a legal interest, or
[17 U.S. 518, 572]
ownership, in anything which does not yield a pecuniary profit;
as if the law regarded no rights but the rights of money, and of
visible tangible property: Of what nature are all rights of suffrage?
No elector has a particular personal interest; but each has a legal
right, to be exercised at his own discretion, and it cannot be taken
away from him.
The exercise of this right, directly and very materially affects
the public; much more so than the exercise of the privileges of a
trustee of this college. Consequences of the utmost magnitude may
sometimes depend on the exercise of the right of suffrage by one or a
few electors. Nobody was ever yet heard to contend, however, that on
that account the public might take away the right or impair it. This
notion appears to be borrowed from no better source than the
repudiated doctrine of the three judges in the Aylesbury Case.
6 That was an action against a returning officer, for refusing the
plaintiff's vote, in the election of a member of parliament. Three of
the judges of the king's bench held, that the action could not be
maintained, because, among other objections, 'it was not any matter of
profit, either in praesenti or in futuro.' It would not enrich the
plaintiff, in praesenti, nor would it, in futuro, go to his heirs, or
answer to pay his debts. But Lord HOLT and the House of Lords were of
another opinion. The judgment of the three judges was reversed, and
the doctrine they held, having been exploded for a century, seems now
for the first time to be revived. Individuals have a right
[17 U.S. 518, 573]
to use their own property for purposes of benevolence, either
towards the public, or towards other individuals. They have a right to
exercise this benevolence in such lawful manner as they may choose;
and when the government has induced and excited it, by contracting to
give perpetuity to the stipulated manner of exercising it, to rescind
this contract, and seize on the property, is not law, but violence.
Whether the state will grant these franchises, and under what
conditions it will grant them, it decides for itself. But when once
granted, the constitution holds them to be sacred, till forfeited for
just cause. That all property, of which the use may be beneficial to
the public, belongs, therefore, to the public, is quite a new
doctrine. It has no precedent, and is supported by no known principle.
Dr. Wheelock might have answered his purposes, in this case, by
executing a private deed of trust. He might have conveyed his property
to trustees, for precisely such uses as are described in this charter.
Indeed, it appears, that he had contemplated the establishment of his
school in that manner, and had made his will, and devised the property
to the same persons who were afterwards appointed trustees in the
charter. Many literary and other charitable institutions are founded
in that manner, and the trust is renewed, and conferred on other
persons, from time to time, as occasion may require. In such a case,
no lawyer would or could say, that the legislature might divest the
trustees, constituted by deed or will, seize upon the property, and
give it to other persons, for other purposes. And does the granting of
a charter, which is only done to perpetuate the trust
[17 U.S. 518, 574]
in a more convenient manner, make any difference? Does or can
this change the nature of the charity, and turn it into a public,
political corporation? Happily, we are not without authority on this
point. It has been considered and adjudged.
Lord HARDWICKE says, in so many words, 'The charter of the crown
cannot make a charity more or less public, but only more permanent
than it would otherwise be.' Attorney-General v. Pearce, 2 Atk. 87.
The granting of the corporation is but making the trust perpetual, and
does not alter the nature of the charity. The very object sought in
obtaining such charter, and in giving property to such a corporation,
is to make and keep it private property, and to clothe it with all the
security and inviolability of private property. The intent is, that
there shall be a legal private ownership, and that the legal owners
shall maintain and protect the property, for the benefit of those for
whose use it was designed. Who ever endowed the public? Who ever
appointed a legislature to administer his charity? Or who ever heard,
before, that a gift to a college, or hospital, or an asylum, was, in
reality, nothing but a gift to the state? The state of Vermont is a
principal donor to Dartmouth College. The lands given lie in that
state. This appears in the special verdict. Is Vermont to be
considered as having intended a gift to the state of New Hampshire in
this case; as it has been said is to be the reasonable construction of
all donations to the college? The legislature of New Hampshire affects
to represent the public, and therefore, claims a right to control
[17 U.S. 518, 575]
all property destined to public use.
What hinders Vermont from considering herself equally the
representative of the public, and from resuming her grants, at her own
pleasure? Her right to do so is less doubtful, than the power of New
Hampshire to pass the laws in question. In University v. Foy, 2 Hayw.
310, the supreme court of North Carolina pronounced unconstitutional
and void, a law repealing a grant to the University of North Carolina;
although that university was originally erected and endowed by a
statute of the state. That case was a grant of lands, and the court
decided, that it could not be resumed. This is the grant of a power
and capacity to hold lands. Where is the difference of the cases, upon
principle? In Terrett v. Taylor, 9 Cranch 43, this court decided, that
a legislative grant or confirmation of lands, for the purposes of
moral and religious instruction, could no more be rescinded than other
grants. The nature of the use was not holden to make any difference. A
grant to a parish or church, for the purposes which have been
mentioned, cannot be distinguished, in respect to the title it
confers, from a grant to a college for the promotion of piety and
learning. To the same purpose may be cited, the case of Pawlet v.
Clark. The state of Vermont, by statute, in 1794, granted to the
respective towns in that state, certain glebe lands, lying within
those towns, for the sole use and support of religious worship. In
1799, an act was passed, to repeal the act of 1794; but this court
declared that the act of 1794, 'so far as it
[17 U.S. 518, 576]
granted the glebes to the towns, could not afterwards be
repealed by the legislature, so as to divest the rights of the towns
under the grant.' 9 Cranch 292. It will be for the other side to show,
that the nature of the use decides the question, whether the
legislature has power to resume its grants. It will be for those who
maintain such a doctrine, to show the principles and cases upon which
it rests. It will be for them also, to fix the limits and boundaries
of their doctrine, and to show what are, and what are not, such uses
as to give the legislature this power of resumption and revocation.
And to furnish an answer to the cases cited, it will be for them
further to show, that a grant for the use and support of religious
worship, stands on other ground than a grant for the promotion of
piety and learning.
I hope enough has been said, to show, that the trustees possessed
vested liberties, privileges and immunities, under this charter; and
that such liberties, privileges and immunities, being once lawfully
obtained and vested, are as inviolable as any vested rights of
property whatever. Rights to do certain acts, such, for instance, as
the visitation and superintendence of a college, and the appointment
of its officers, may surely be vested rights, to all legal intents, as
completely as the right to posses property. A late learned judge of
this court has said, when I say, that a right is vested in a citizen,
I mean, that he has the power to do certain actions, or to possess
certain things, according to the law of the land. 3 Dall. 394.
[17 U.S. 518, 577]
If such be the true nature of the plaintiffs' interests under
this charter, what are the articles in the New Hampshire bill of
rights which these acts infringe? They infringe the second article;
which says, that the citizens of the state have a right to hold and
possess property. The plaintiffs had a legal property in this charter;
and they had acquired property under it. The acts deprive them of
both; they impair and take away the charter; and they appropriate the
property to new uses, against their consent. The plaintiffs cannot now
hold the property acquired by themselves, and which this article says,
they have a right to hold. They infringe the twentieth article. By
that article it is declared, that in questions of property, there is a
right to trial; the plaintiffs are divested, without trial or
judgment. They infringe the twenty-third article. It is therein
declared, that no retrospective laws shall be passed; the article
bears directly on the case; these acts must be deemed retrospective,
within the settled construction of that term. What a retrospective law
is, has been decided, on the construction of this very article, in the
circuit court for the first circuit. The learned judge of that
circuit, says, 'every statute which takes away or impairs vested
rights, acquired under existing laws, must be deemed retrospective.'
Society v. Wheeler, 2 Gallis. 103. That all such laws are
retrospective, was decided also in the case of Dash v. Van Kleeck, 7
Johns. 477, where a most learned
[17 U.S. 518, 578] judge quotes this
article from the constitution of New Hampshire, with manifest
approbation, as a plain and clear expression of those fundamental and
unalterable principles of justice, which must lie at the foundation of
every free and just system of laws. Can any man deny, that the
plaintiffs had rights, under the charter, which were legally vested,
and that by these acts, those rights are impaired?7 These
[17 U.S. 518, 579]
acts infringe also, the thirty-seventh article of the
constitution of New Hampshire; which says, that the powers of
government shall be kept separate. By these acts, the legislature
assumes to exercise a judicial power; it declares a forfeiture, and
resumes franchises, once granted, without trial or hearing. If the
constitution be not altogether waste paper, it has restrained the
power of the legislature in these particulars, If it has any meaning,
it is, that the legislature shall pass no act, directly and manifestly
impairing private property, and private privileges. It shall not
judge, by act; it shall not decide, by act; it shall not deprive, by
act. But it shall leave all these things to be tried and adjudged by
the law of the land.
The fifteenth article has been referred
[17 U.S. 518, 580]
to before. It declares, that no one shall be 'deprived of his
property, immunities or privileges, but by the judgment of his peers,
or the law of the land.' Notwithstanding the light in which the
learned judges in New Hampshire viewed the rights of the plaintiffs
under the charter, and which has been before adverted to, it is found
to be admitted, in their opinion, that those rights are privileges,
within the meaning of this fifteenth article of the bill of rights.
Having quoted that article, they say, 'that the right to manage the
affairs of this college is a privilege, within the meaning of this
clause of the bill of rights, is not to be doubted.' In my humble
opinion, this surrenders the point. To resist the effect of this
admission, however, the learned judges add, 'but how a privilege can
be protected from the operation of the law of the land, by a clause in
the constitution, declaring that it shall not be taken away, but by
the law of the land, is not very easily understood.' This answer goes
on the ground, that the acts in question are laws of the land, within
the meaning of the constitution. If they be so, the argument drawn
from this article is fully answered. If they be not so, it being
admitted that the plaintiffs' rights are 'privileges,' within the
meaning of the article, the argument is not answered, and the article
is infringed by the acts. Are then these acts of the legislature,
which affect only particular persons and their particular privileges,
laws of the land? Let this question be answered by the text of
Blackstone: 'And first, it (i. e., law) is a rule; not a transient
sudden order from a superior, to or concerning a particular
[17 U.S. 518, 581]
person; but something permanent, uniform and universal.
Therefore, a particular act of the legislature, to confiscate the
goods of Titius, or to attaint him of high treason, does not enter
into the idea of a municipal law; for the operation of this act is
spent upon Titlus only, and has no relation to the community in
general; it is rather a sentence than a law.' 1 Bl. Com. 44. Lord Coke
is equally decisive and emphatic. Citing and commenting on the
celebrated 29th chap. of magna charta, he says, 'no man shall be
disseised, &c., unless it be by the lawful judgment, that is, verdict
of equals, or by the law of the land, that is (to speak it once for
all), by the due course and process of law.' 2 Inst. 46. Have the
plaintiffs lost their franchises by 'due course and process of law?'
On the contrary, are not these acts 'particular acts of the
legislature, which have no relation to the community in general, and
which are rather sentences than laws?' By the law of the land, is most
clearly intended, the general law; a law, which hears before it
condemns; which proceeds upon inquiry, and renders judgment only after
trial. The meaning is, that every citizen shall hold his life,
liberty, property and immunities, under the protection of the general
rules which govern society. Everything which may pass under the form
of an enactment, is not, therefore, to be considered the law of the
land. If this were so, acts of attainder, bills of pains and
penalties, acts of confiscation, acts reversing judgments, and acts
directly transferring one man's
[17 U.S. 518, 582] estate to another,
legislative judgments, decrees and forfeitures, in all possible forms,
would be the law of the land. Such a strange construction would render
constitutional provisions, of the highest importance, completely
inoperative and void. It would tend directly to establish the union of
all powers in the legislature. There would be no general permanent law
for courts to administer, or for men to live under. The administration
of justice would be an empty form, an idle ceremony. Judges would sit
to execute legislative judgments and decrees; not to declare the law,
or to administer the justice of the country. 'Is that the law of the
land,' said Mr. Burke, 'upon which, if a man go to Westminster Hall,
and ask counsel by what title or tenure he holds his privilege or
estate, according to the law of the land, he should be told, that the
law of the land is not yet known; that no decision or decree has been
made in his case; that when a decree shall be passed, he will then
know what the law of the land is? Will this he said to be the law of
the land, by any lawyer who has a rag of a gown left upon his back, or
a wig with one tie upon his head?' That the power of electing and
appointing the officers of this college is not only a right of the
trustees, as a corporation, generally, and in the aggregate, but that
each individual trustee has also his own individual franchise in such
right of election and appointment, is according to the language of all
the authorities. Lord HOLT says, 'it is agreeable to reason and the
rules of law, that a franchise should be vested in the corporation
aggregate, and yet the benefit of it to redound to the
[17 U.S. 518, 583]
particular members, and to be enjoyed by them in their private
capacity. Where the privilege of election is used by particular
persons, it is a particular right, vested in every particular man.' 2
Ld. Raym. 952.
It is also to be considered, that the president and professors of
this college have rights to be affected by these acts. Their interest
is similar to that of fellows in the English colleges; because they
derive their living wholly, or in part, from the founder's bounty. The
president is one of the trustees or corporators. The professors are
not necessarily members of the corporation; but they are appointed by
the trustees, are removable only by them, and have fixed salaries,
payable out of the general funds of the college. Both president and
professors have freeholds in their offices; subject only to be removed
by the trustees, as their legal visitors, for good cause. All the
authorities speak of fellowships in colleges as freeholds,
notwithstanding the fellows may be liable to be suspended or removed,
for misbehavior, by their constituted visitors. Nothing could have
been less expected, in this age, than that there should have been an
attempt, by acts of the legislature, to take away these college
livings, the inadequate, but the only support of literary men, who
have devoted their lives to the instruction of youth. The president
and professors were appointed by the twelve trustees. They were
accountable to nobody else, and could be removed by nobody else. They
accepted their offices on this tenure. Yet the legislature has
appointed [17 U.S. 518,
584] other persons, with power to remove these officers,
and to deprive them of their livings; and those other persons have
exercised that power. No description of private property has been
regarded as more sacred than college livings. They are the estates and
freeholds of a most deserving class of men; of scholars who have
consented to forego the advantages of professional and public
employments, and to devote themselves to science and literature, and
the instruction of youth, in the quiet retreats of academic life.
Whether to dispossess and oust them; to deprive them of their office,
and turn them out of their livings; to do this, not by the power of
their legal visitors, or governors, but by acts of the legislature;
and to do it, without forfeiture, and without fault; whether all this
be not in the highest degree an indefensible and arbitrary proceeding,
is a question, of which there would seem to be but one side fit for a
lawyer or a scholar to espouse. Of all the attempts of James II. to
overturn the law, and the rights of his subjects, none was esteemed
more arbitrary or tyrannical, than his attack on Magdalen college,
Oxford: and yet, that attempt was nothing but to put out one president
and put in another. The president of that college, according to the
charter and statutes, is to be chosen by the fellows, who are the
corporators. There being a vacancy, the king chose to take the
appointment out of the hands of the fellows, the legal electors of a
president, into his own hands. He, therefore, sent down his mandate,
commanding the fellows to admit, for president, a person of his
nomination; and inasmuch as this was directly against
[17 U.S. 518, 585]
the charter and constitution of the college, he was pleased to
add a non obstante clause, of sufficiently comprehensive import. The
fellows were commanded to admit the person mentioned in the mandate,
'any statute, custom or constitution to the contrary notwithstanding,
wherewith we are graciously pleased to dispense, in this behalf.' The
fellows refused obedience to this mandate, and Dr. Hough, a man of
independence and character, was chosen president by the fellows,
according to the charter and statutes. The king then assumed the
power, in virtue of his prerogative, to send down certain
commissioners to turn him out; which was done accordingly; and Parker,
a creature suited to the times, put in his place. And because the
president, who was rightfully and legally elected, would not deliver
the keys, the doors were broken open. 'The nation, as well as the
university,' says Bishop Burnet,8 'looked on all these proceedings
with just indignation. It was thought an open piece of robbery and
burglary, when men, authorized by no legal commission, came and
forcibly turned men out of their possession and freehold.' Mr. Hume,
although a man of different temper, and of other sentiments, in some
respects, than Dr. Burnet, speaks of this arbitrary attempt of
prerogative, in terms not less decisive. 'The president, and all the
fellows,' says he, 'except two, who complied, were expelled the
college: and Parker was put in possession of the office. This act of
violence, of all those which were committed during
[17 U.S. 518, 586]
the reign of James, is perhaps the most illegal and arbitrary.
When the dispensing power was the most strenuously insisted on by
court lawyers, it had still been allowed, that the statutes which
regard private property could not legally be infringed by that
prorogative. Yet, in this instance, it appeared, that even these were
not now secure from invasion. The privileges of a college are
attacked; men are illegally dispossessed of their property for
adhering to their duty, to their oaths, and to their religion.' This
measure king James lived to repent, after repentance was too late.
When the charter of London was restored, and other measured of
violence retracted, to avert the impending revolution, the expelled
president and fellows of Magdalen college were permitted to resume
their rights. It is evident, that this was regarded as an arbitrary
interference with private property. Yet private property was no
otherwise attacked, than as a person was appointed to administer and
enjoy the revenues of a college, in a manner and by persons not
authorized by the constitution of the college. A majority of the
members of the corporation would not comply with the king's wishes; a
minority would; the object was, therefore, to make this minority, a
majority. To this end, the king's commissioners were directed to
interfere in the case, and they united with the two complying fellows,
and expelled the rest; and thus effected a change in the government of
the college. The language in which Mr. Hume, and all other writers,
speak of this abortive attempt of oppression, shows, that colleges
were esteemed to be, as
[17 U.S. 518, 587] they truly are, private corporations,
and the property and privileges which belong to them, private
property, and private privileges. Court lawyers were found to justify
the king in dispensing with the laws; that is, in assuming and
exercising a legislative authority. But no lawyer, not even a court
lawyer, in the reign of king James the second, so far as appears, was
found to say, that even by this high authority, he could infringe the
franchises of the fellows of a college, and take away their livings.
Mr. Hume gives the reason; it is, that such franchises were regarded,
in a most emphatic sense, as private property.
9 If it could be made to appear, that the trustees and the
president and professors held their offices and franchises during the
pleasure of the legislature, and that the property holden belonged to
the state, then, indeed, the legislature have done no more than they
had a right to do. But this is not so. The charter is a charter of
privileges and immunities; and these are holden by the trustees,
expressly against the state, for ever. It is admitted, that the state,
by its courts of law, can enforce the will of the donor, and compel a
faithful execution of the trust. The plaintiffs claim no exemption
from legal responsibility. They hold themselves at all times
answerable to the law of the land, for their conduct in the trust
committed to them. They ask only to hold the property of which they
are owners, and the franchises which belong to them, until they shall
be found by due course and process of law to have forfeited them. It
can make no difference,
[17 U.S. 518, 588] whether the legislature exercise the
power it has assumed, by removing the trustees and the president and
professors, directly, and by name, or by appointing others to expel
them. The principle is the same, and in point of fact, the result has
been the same. If the entire franchise cannot be taken away, neither
can it be essentially impaired. If the trustees are legal owners of
the property, they are sole owners. If they are visitors, they are
sole visitors. No one will be found to say, that if the legislature
may do what it has done, it may not do anything and everything which
it may choose to do, relative to the property of the corporation, and
the privileges of its members and officers.
If the view which has been taken of this question be at all
correct, this was an eleemosynary corporation-a private charity. The
property was private property. The trustees were visitors, and their
right to hold the charter, administer the funds, and visit and govern
the college, was a franchise and privilege, solemnly granted to them.
The use being public, in no way diminishes their legal estate in the
property, or their title to the franchise. There is no principle, nor
any case, which declares that a gift to such a corporation is a gift
to the public. The acts in question violate property; they take away
privileges, immunities and franchises; they deny to the trustees the
protection of the law; and they are retrospective in their operation.
In all which respects, they are against the constitution of New
Hampshire.
2. The plaintiffs contend, in the second place, that the
acts in question are repugnant to the 10th section
[17 U.S. 518, 589]
of the 1st article of the constitution of the United States.
The material words of that section are, 'no state shall pass any bill
of attainder, ex post facto law, or law impairing the obligation of
contracts.' The object of these most important provisions in the
national constitution has often been discussed, both here and
elsewhere. It is exhibited with great clearness and force by one of
the distinguished persons who framed that instrument. 'Bills of
attainder, ex post facto laws, and laws impairing the obligation of
contracts, are contrary to the first principles of the social compact,
and to every principle of sound legislation. The two former are
expressly prohibited by the declarations prefixed to some of the state
constitutions, and all of them are prohibited by the spirit and scope
of these fundamental charters. Our own experience has taught us,
nevertheless, that additional fences against these dangers ought not
to be omitted. Very properly, therefore, have the convention added
this constitutional bulwark in favor of personal security and private
rights; and I am much deceived, if they have not, in so doing, as
faithfully consulted the genuine sentiments as the undoubted interests
of their constituents. The sober people of America are weary of the
fluctuating policy which has directed the public councils. They have
seen with regret, and with indignation, that sudden changes, and
legislative interferences, in cases affecting personal rights, become
jobs in the hands of enterprising and influential speculators; and
snares to the more industrious and less informed part of the
[17 U.S. 518, 590]
community. They have seen, too, that one legislative
interference is but the link of a long chain of repetitions; every
subsequent interference being naturally produced by the effects of the
preceding.'
10 It has already been decided in this court, that a grant is a
contract, within the meaning of this provision; and that a grant by a
state is also a contract, as much as the grant of an individual.
11 [17 U.S. 518,
591] It has also been decided, that a grant by a state
before the revolution, is as much to be protected as a grant since.
New Jersey v. Wilson, 7 Cranch 264. But the case of Terrett v. Taylor,
before cited, is of all others most pertinent to the present argument.
Indeed, the judgment of the court in that case seems to leave little
to be argued or decided in this. 12 This court, then, does not admit
the doctrine, [17 U.S.
518, 592] that a legislature can repeal statutes creating
private corporations. If it cannot repeal them altogether, of course,
it cannot repeal any part of them, or impair them, or essentially
alter them, without the consent of the corporators. If, therefore, it
has been shown, that this college is to be regarded as a private
charity, this case is embraced within the very terms of that decision.
A grant of corporate powers and privileges is as much a contract, as a
grant of land. What proves all charters of this sort to be contracts,
is, that they must be accepted, to give them force and effect. If they
are not accepted, they are void. And in the case of an existing
corporation, if a new charter is given it, it may even accept part,
and reject the rest. In Rex v. Vice-Chancellor of Cambridge, 3 Burr.
1656, Lord MANSFIELD says, 'there is a vast deal of difference between
a new charter granted to a new corporation (who must take it as it is
given), and a new charter given to a corporation already in being, and
acting either under a former charter, or under prescriptive usage. The
latter, a corporation already existing, are not obliged to accept the
new charter in toto, and to receive either all or none of it; they may
act partly under it, and
[17 U.S. 518, 593] partly under their old
charter, or prescription. The validity of these new charters must turn
upon the acceptance of them.' In the same case, Mr. Justice WILMOT
says, 'it is the concurrence and acceptance of the university, that
gives the force to the charter of the crown.' In the King v. Pasmore,
3 T. R. 240, Lord KENYON observes, 'some things are clear: when a
corporation exists, capable of discharging its functions, the crown
cannot obtrude another charter upon them; they may either accept or
reject it.'
13 In all cases relative to charters, the acceptance of them is
uniformly alleged in the pleadings. This shows the general
understanding of the law, that they are grants, or contracts; and that
parties are necessary to give them force and validity. In King v. Dr.
Askew, 4 Burr. 2200, it is said, 'the crown cannot oblige a man to be
a corporator, without his consent; he shall not be subject to the
inconveniences of it, without accepting it and assenting to it.' These
terms, 'acceptance,' and 'assent,' are the very language of contract.
In Ellis v. Marshall, 2 Mass. 279, it was expressly adjudged, that the
naming of the defendant, among others, in an act of incorporation, did
not, of itself, make him a corporator; and that his assent was
necessary to that end. The court speak of the act of incorporation as
a grant, and observe, 'that a man may refuse a grant, whether from the
government or an individual, seems to be a principle too clear to
require the support of authorities.' But Mr. Justice BULLER, in King
v. Pasmore, [17 U.S.
518, 594] furnishes, if possible, a still more direct and
explicit authority. Speaking of a corporation for government, he says,
'I do not know how to reason on this point better than in the manner
urged by one of the relator's counsel, who considered the grant of
incorporation to be a compact between the crown and a certain number
of the subjects, the latter of whom undertake, in consideration of the
privileges which are bestowed, to exert themselves for the good
government of the place.'
This language applies, with peculiar propriety and force, to the
case before the court. It was in consequence of the 'privileges
bestowed,' that Dr. Wheelock and his associates undertook to exert
themselves for the instruction and education of youth in this college;
and it was on the same consideration, that the founder endowed it with
his property. And because charters of incorporation are of the nature
of contracts, they cannot be altered or varied, but by consent of the
original parties. If a charter be granted by the king, it may be
altered by a new charter, granted by the king, and accepted by the
corporators. But if the first charter be granted by parliament, the
consent of parliament must be obtained to any alteration. In King v.
Miller, 6 T. R. 277, Lord KENYON says, 'where a corporation takes its
rise from the king's charter, the king, by granting, and the
corporation, by accepting, another charter, may alter it, because it
is done with the consent of all the parties who are competent to
consent to the alteration.'
14 There are, in this
[17 U.S. 518, 595] case, all the essential
constituent parts of a contract. There is something to be contracted
about; there are parties, and there are plain terms in which the
agreement of the parties, on the subject of the contract, is
expressed; there are mutual considerations and inducements. The
charter recites, that the founder, on his part, has agreed to
establish his seminary in New Hampshire, and to enlarge it, beyond its
original design, among other things, for the benefit of that province;
and thereupon, a charter is given to him and his associates,
desiguated by himself, promising and assuring to them, under the
plighted faith of the state, the right of governing the college, and
administering its concerns, in the manner provided in the charter.
There is a complete and perfect grant to them of all the power of
superintendence, visitation and government. Is not this a contract? If
lands or money had been granted to him and his associates, for the
same purposes, such grant could not be rescinded. And is there any
difference, in legal contemplation, between a grant of corporate
franchises, and a grant of tangible property? No such difference is
recognised in any decided case, nor does it exist in the common
apprehension of mankind.
It is, therefore, contended, that this case falls within the true
meaning of this provision of the constitution, as expounded in the
decisions of this court; that the charter of 1769 is a contract, a
stipulation or agreement: mutual in its considerations, express and
formal in its terms, and of a most binding and solemn nature. That the
acts in question impair this contract,
[17 U.S. 518, 596] has already been
sufficiently shown. They repeal and abrogate its most essential parts.
Much has heretofore been said on the necessity of admitting such a
power in the legislature as has been assumed in this case. Many cases
of possible evil have been imagined, which might otherwise be without
remedy. Abuses, it is contended, might arise in the management of such
institutions, which the ordinary courts of law would be unable to
correct. But this is only another instance of that habit of supposing
extreme cases, and then of reasoning from them, which is the constant
refuge of those who are obliged to defend a cause which, upon its
merits, is indefensible. It would be sufficient to say, in answer,
that it is not pretended, that there was here any such case of
necessity. But a still more satisfactory answer is, that the
apprehension of danger is groundless, and therefore, the whole
argument fails. Experience has not taught us, that there is danger of
great evils, or of great inconvenience, from this source. Hitherto,
neither in our own country nor elsewhere, have such cases of necessity
occurred. The judicial establishments of the state are presumed to be
competent to prevent abuses and violations of trust, in cases of this
kind, as well as in all others. If they be not, they are imperfect,
and their amendment would be a most proper subject for legislative
wisdom. Under the government and protection of the general laws of the
land, those institutions have always been found safe, as well as
useful. They go on with the progress of society, accommodating
themselves easily, without sudden change or
[17 U.S. 518, 597]
violence, to the alterations, which take place in its
condition; and in the knowledge, the habits and pursuits of men. The
English colleges were founded in Catholic ages. Their religion was
reformed with the general reformation of the nation; and they are
suited perfectly well to the purpose of educating the Protestant youth
of modern times. Dartmouth College was established under a charter
granted by the provincial government; but a better constitution for a
college, or one more adapted to the condition of things under the
present government, in all material respects, could not now be framed.
Nothing in it was found to need alteration at the revolution. The wise
men of that day saw in it one of the best hopes of future times, and
commended it, as it was, with parental care, to the protection and
guardianship of the government of the state. A charter of more liberal
sentiments, or wiser provisions, drawn with more care, or in a better
spirit, could not be expected at any time, or from any source. The
college needed no change in its organization or government. That which
it did need was the kindness, the patronage, the bounty of the
legislature; not a mock elevation to the character of a university,
without the solid benefit of a shilling's donation, to sustain the
character; not the swelling and empty authority of establishing
institutes and other colleges. This unsubstantial pageantry would seem
to have been in derision of the scanty endowment and limited means of
an unobtrusive, but useful and growing seminary. Least of all, was
there a necessity, or pretence of necessity, to infringe its legal
rights, violate its franchises
[17 U.S. 518, 598] and privileges, and pour
upon it these overwhelming streams of litigation.
But this argument, from necessity, would equally apply in all other
cases. If it be well founded, it would prove, that whenever any
inconvenience or evil should be experienced from the restrictions
imposed on the legislature by the constitution, these restrictions
ought to be disregarded. It is enough to say, that the people have
thought otherwise. They have, most wisely, chosen to take the risk of
occasional inconvenience, from the want of power, in order that there
might be a settled limit to its exercise, and a permanent security
against its abuse. They have imposed prohibitions and restrains; and
they have not rendered these altogether vain and nugatory, by
conferring the power of dispensation. If inconvenience should arise,
which the legislature cannot remedy under the power conferred upon it,
it is not answerable for such inconvenience. That which it cannot do
within the limits prescribed to it, it cannot do at all. No
legislature in this country is able, and may the time never come, when
it shall be able, to apply to itself the memorable expression of a
Roman pontiff: 'Licet hoc de jure non possumus, volumus tamen de
plenitudine potestatis.'
The case before the court is not of ordinary importance, nor of
every- day occurrence. It affects not this college only, but every
college, and all the literary institutions of the country. They have
flourished, hitherto, and have become in a high degree respectable and
useful to the community. They have all a common principle of
existence, the inviolability
[17 U.S. 518, 599] of their charters. It
will be a dangerous, a most dangerous, experiment, to hold these
institutions subject to the rise and fall of popular parties, and the
fluctuation of political opinions. If the franchise may be, at any
time, taken away or impaired, the property also may be taken away, or
its use perverted. Benefactors will have no certainty of effecting the
object of their bounty; and learned men will be deterred from devoting
themselves to the service of such institutions, from the precarious
title of their offices. Colleges and halls will be deserted by all
better spirits, and become a theatre for the contention of politics;
party and faction will be cherished in the places consecrated to piety
and learning. These consequences are neither remote nor possible only;
they are certain and immediate.
When the court in North Carolina declared the law of the state,
which repealed a grant to its university, unconstitutional and void,
the legislature had the candor and the wisdom to repeal the law. This
example, so honorable to the state which exhibited it, is most fit to
be followed on this occasion. And there is good reason to hope, that a
state which has hitherto been so much distinguished for temperate
councils, cautious legislation, and regard to law, will not fail to
adopt a course which will accord with her highest and best interest,
and in no small degree, elevate her reputation. It was, for many
obvious reasons, most anxiously desired, that the question of the
power of the legislature over this charter should have been finally
decided in the state court. An earnest hope was entertained,
[17 U.S. 518, 600]
that the judges of that court might have viewed the case in a
light favorable to the rights of the trustees. That hope has failed.
It is here that those rights are now to be maintained, or they are
prostrated for ever. Omnia alia perfugia bonorum, subsidia, consilia,
auxilia jura ceciderunt. Quem enim alium appellem? quem obtestor? quem
implorem? Nisi hoc loco, nisi apud vos, nisi per vos, judices, salutem
nostram, quoe spe exigua extremaque pendet, temerimus; nihil est
proeterea quo confugere possimus.
Holmes, for the defendant in error, argued, that the prohibition in
the constitution of the United States, which alone gives the court
jurisdiction in this case, did not extend to grants of political
power; to contracts concerning the internal government and police of a
sovereign state. Nor does it extend to contracts which relate merely
to matters of civil institution, even of a private nature. Thus,
marriage is a contract, and a private contract; but relating merely to
a matter of civil institution, which every society has an inherent
right to regulate as its own wisdom may dictate, it cannot be
considered as within the spirit of this prohibitory clause. Divorces
unquestionably impair the obligation of the nuptial contract; they
change the relations of the marriage state, without the consent of
both the parties, and thus come clearly within the letter of the
prohibition. But surely, no one will contend, that there is locked up
in this mystical clause of the constitution a prohibition to the
states to grant divorces, a power
[17 U.S. 518, 601] peculiarly appropriate
to domestic legislation, and which has been exercised in every age and
nation where civilization has produced that corruption of manners,
which, unfortunately, requires this remedy. Still less can a contract
concerning a public office to be exercised, or duty to be performed,
be included within this prohibition. The convention who framed the
coustitution, did not intend to interfere in the exercise of the
political powers reserved to the state governments. That was left to
be regulated by their own local laws and constitutions; with this
exception only, that the Union should guaranty to each state a
republican form of government, and defend it against domestic
insurrection and rebellion. Beyond this, the authorities of the Union
have no right to interfere in the exercise of the powers reserved to
the state. They are sovereign and independent in their own sphere. If,
for example, the legislature of a particular state should attempt to
deprive the judges of its courts (who, by the state constitution, held
their places during good behavior) of their offices, without a trial
by impeachment; or should arbitrarily and capriciously increase the
number of the judges, so as to give the preponderancy in judicature to
the prevailing political faction, would it be pretended, that the
minority could resist such a law, upon the ground of its impairing the
obligation of a contract? Must not the remedy, if anywhere existing,
be found in the interposition of some state authority to enforce the
provisions of the state constitution?
The education of youth, and the encouragement of the arts and
sciences, is one of the most
[17 U.S. 518, 602] important objects of
civil government. Vattel, lib. 1, c. 11, 112-13. By our constitutions,
it is left exclusively to the states, with the exception of copyrights
and patents. It was in the exercise of this duty of government, that
this charter was originally granted to Dartmouth College. Even when
first granted, under the colonial government, it was subject to the
notorious authority of the British parliament over all charters
containing grants of political power. It might have been revoked or
modified by act of parliament. 1 Bl. Com. 485. The revolution, which
separated the colony from the parent county, dissolved all connection
between this corporation and the crown of Great Britain. But it did
not destroy that supreme authority which every political society has
over its public institutions; that still remained, and was transferred
to the people of New Hampshire. They have not relinquished it to the
government of the United States, or to any department of that
government. Neither does the constitution of New Hampshire confirm the
charter of Dartmouth College, so as to give it the immutability of the
fundamental law. On the contrary, the constitution of the state
admonishes the legislature of the duty of encouraging science and
literature, and thus seems to suppose its power of control over the
scientific and literary institutions of the state. The legislature
had, therefore, a right to modify this trust, the original object of
which, was the education of the Indian and English youth of the
province. It is not necessary to contend, that it had the right of
wholly diverting [17
U.S. 518, 603] the fund from the original object of its
pious and benevolent founders. Still, it must be insisted, that a
regal grant, with a regal and colonial policy, necessarily became
subject to the modification of a republican legislature, whose right,
and whose duty, it was, to adapt the education of the youth of the
country to the change in its political institutions. It is a corollary
from the right of self-government. The ordinary remedies which are
furnished in the court for a misuser of the corporate franchises, are
not adapted to the great exigencies of are volution in government.
They presuppose a permanently-established order of things, and are
intended only to correct occasional deviations and minor mischiefs.
But neither a reformation in religion, nor a revolution in government,
can be accomplished or confirmed by a writ of quo warranto or
mandamus. We do not say, that the corporation has forfeited its
charter for misuser; but that it has become unfit for use, by a change
of circumstances. Nor does the lapse of time from 1776 to 1816, infer
an acquiescence on the part of the legislature, or a renunciation of
its right to abolish or reform an institution, which being of a public
nature, cannot hold its privileges by prescription. Our argument is,
that it is, at all times, liable to be new modelled by the legislative
wisdom, instructed by the lights of the age.
The conclusion then is, that this charter is not such a contract as
is contemplated by the constitution of the United States; that it is
not a contract of a private nature, concerning property or other
private interests: but that it is a grant of a public nature,
[17 U.S. 518, 604]
for public purposes, relative to the internal government and
police of a state, and therefore, liable to be revoked or modified by
the supreme power of that state.
Supposing, however, this to be a contract such as was meant to be
included in the constitutional prohibition, is its obligation impaired
by these acts of the legislature of New Hampshire? The title of the
acts of the 27th of June, and the 18th of December 1816, shows that
the legislative will and intention was to amend the charter, and
enlarge and improve the corporation. If, by a technical fiction, the
grant of the charter can be considered as a contract between the king
(or the state) and the corporators, the obligation of that contract is
not impaired; but is rather enforced, by these acts, which continue
the same corporation, for the same objects, under a new name. It is
well settled, that a mere change of the name of a corporation will not
affect its identity. An addition to the number of the colleges, the
creation of new fellowships, or an increase of the number of the
trustees, do not impair the franchises of the corporate body. Nor is
the franchise of any individual corporator impaired. In the words of
Mr. Justice ASHHURST, in the case of the King v. Pasmore, 3 T. R. 244,
'the members of the old body have no injury or injustice to commplain
of, for they are all included in the new charter of incorporation; and
if any of them do not become members of the new incorporation, but
refuse to accept, it is their own
[17 U.S. 518, 605] fault.' What rights,
which are secured by this alleged contract, are invaded by the acts of
the legislature? Is it the right of property, or of privileges? It is
not the former, because the corporate body is not deprived of the
least portion of its property. If it be the personal privileges of the
corporators that are attacked, these must be either a common and
universal privilege, such as the right of suffrage, for interrupting
the exercise of which an action would lie; or they must be monopolies
and exclusive privileges, which are always subject to be regulated and
modified by the supreme power of the state. Where a private
proprietary interest is coupled with the exercise of political power,
or a public trust, the charters of corporations have frequently been
amended by legislative authority. Gray v. Portland Bank, 3 Mass. 364;
Commonwealth v. Bird, 12 Ibid. 443. In charters creating artificial
persons, for purposes exclusively private, and not interfering with
the common rights of the citizens, it may be admitted, that the
legislature cannot interfere to amend, without the consent of the
grantees. The grant of such a charter might, perhaps, be considered as
analogous to a contract between the state and private individuals,
affecting their private rights, and might thus be regarded as within
the spirit of the constitutional prohibition. But this charter is
merely a mode of exercising one of the great powers of civil
government. Its amendment, or even repeal, can no more be considered
as the breach of a contract, than the amendment or repeal of any other
law.
Such repeal or amendment is an ordinary act of publie
[17 U.S. 518, 606]
legislation, and not an act impairing the obligation of a
contract between the government and private citizens, under which
personal immunities or proprietary interests are vested in them.
The Attorney-General, on the same side, stated, that the only
question properly before court was, whether the several acts of the
logislature of New Hampshire, mentioned in the special verdict, are
repugnant to that clause of the constitution of the United States,
which provides, that no state shall 'pass any bill of attainder, ex
post facto law, or law impairing the obligation of contracts?'
Beside its intrinsic difficulty, the extreme delicacy of this
question is evinced by the sentiments expressed by the court, whenever
it has been called to act on such a question. Calder v. Bull, 3 Dall.
392, 394, 395; Fletcher v. Peck, 6 Cranch 87; New Jersey v. Wilson, 7
Ibid. 164; Terrett v. Taylor, 9 Ibid. 43. In the case of Fletcher v.
Peck, the court says, 'The question whether a law be void for its
repugnancy to the constitution, is, at all times, a question of much
delicacy, which ought seldom, if ever, to be decided in the
affirmative, in a doubtful case. The court, when impelled by duty to
render such a judgment, would be unworthy of its station, could it be
unmindful of the solemn obligation which that station imposes. But it
is not on slight implication, and vague conjecture, that the
legislature is to be pronounced to have transcended its powers, and
its acts are to be considered as void. The opposition between the
constitution and the law should be such
[17 U.S. 518, 607]
that the judge feels a clear and strong conviction of their
incompatibility with each other.' 6 Cranch 128. In Calder v. Bull, 3
Dall. 395, Mr. Justice CHASE expressed himself with his usual emphatic
energy, and said, 'I will not decide any law to be void, but in a very
clear case.' It is, then, a very clear case, that these acts of New
Hampshire are repugnant to the constitution of the United States?
1. Are they bills of attainder? The elementary writers
inform us, that an attainder is 'the stain or corruption of the blood
of the criminal capitally condemned.' 4 Bl. Com. 380. True it is, that
the Chief Justice says, in Fletcher v. Peck, 6 Cranch 138, that a bill
of attainder may affect the life of an individual, or may confiscate
his estate, or both. But the cause did not turn upon this point, and
the Chief Justice was not called upon to weigh, with critical
accuracy, his expressions in this part of the case. In England, most
certainly, the first idea presented is that of corruption of blood,
and consequent forfeiture of the entire property of the criminal, as
the regular and inevitable consequences of a capital conviction at
common law. Statutes sometimes pardon the attainder, and merely
forfeit the estate; but this forfeiture is always complete and entire.
In the present case, however, it cannot be pretended, that any part of
the estate of the trustees is forfeited, and, if a part, certainly not
the whole.
2. Are these acts 'laws impairing the obligation
[17 U.S. 518, 608]
of contracts?' The mischiefs actually existing at the time the
constitution was established, and which were intended to be remedied
by this prohibitory clause, will show the nature of the contracts
contemplated by its authors. It was the inviolability of private
contracts, and private rights acquired under them, which was intended
to be protected; 15 and not contracts which are, in their nature,
matters of civil police, nor grants by a state, of power, and even
property, to individuals, in trust to be administered for purposes
merely public. 'The prohibitions not to make anything but gold and
silver coin a tender in payment of debts, and not to pass any law
impairing the obligation of contracts,' says Mr. Justice CHASE, 'were
inserted to secure private rights.' Calder v. Bull, 3 Dall. 390. The
cases determined in this court, illustrate the same construction of
this clause of the constitution. Fletcher v. Peck was a case where a
state legislature attempted to revoke its grant, so as to divest a
beneficial estate in lands; a vested estate; an actual conveyance to
individuals as their private property. 6 Cranch 87. In the case of New
Jersey v. Wilson, there was an express contract, contained in a public
treaty of cession with the Indians, by which the privilege of
perpetual exemption from taxation was indelibly impressed upon the
lands, and could not be taken away, without a violation of the public
faith [17 U.S. 518, 609]
solemnly pledged. 7 Cranch 164. Terrett v. Taylor was
also a case of an attempt to divest an interest in lands actually
vested under an act amounting to a contract. 9 Ibid. 43. In all those
instances, the property was held by the grantees, and those to whom
they had conveyed, beneficially, and under the sanction of contracts,
in the ordinary and popular signification of that term. But this is an
attempt to extend its obvious and natural meaning, and to apply it, by
a species of legal fiction, to a class of cases which have always been
supposed to be within the control of the sovereign power. Charters to
public corporations, for purposes of public policy, are necessarily
subject to the legislative discretion, which may revoke or modify
them, as the continually fluctuating exigencies of the society may
require. Incorporations for the purposes of education and other
literary objects, in one age, or under one form of government, may
become unfit for their office in another age, or under another
government.
This charter is said to be a contract between Doctor Wheelock and
the King; a contract founded on a donation of private property by
Doctor Wheelock. It is hence inferred, that it is a private
eleemosynary corporation; and the right of visitation is said to be in
the founder and heirs; and that the state can have no right to
interfere, because it is neither the founder of this charity, nor
contributor to it. But if the basis of this argument is removed, what
becomes of the superstructure? The fact that Doctor Wheelock was a
contributor, is not found by the
[17 U.S. 518, 610] special verdict; and not
having been such, in truth, it cannot be added, under the agreement to
amend the special verdict. The jury find the charter, and that does
not recite that the college was a private foundation by Doctor
Wheelock. On the contrary, the real state of the case is, that he was
the projector; that he had a school, on his own plantation, for the
education of Indians; and through the assistance of others, had been
employed for several years, in clothing, maintaining and educating
them. He solicited contributions, and appointed others to solicit. At
the foundation of the college, the institution was removed from his
estate. The honors paid to him by the charter were the reward of past
services, and of the boldness, as well as piety, of the project. The
state has been a contributor of funds, and this fact is found. It is,
therefore, not a private charity, but a public institution; subject to
be modified, altered and regulated by the supreme power of the state.
This charter is not a contract, within the true intent of the
constitution. The acts of New Hampshire, varying in some degree the
forms of the charter, do not impair the abligation of a contract. In a
case which is really one of contract, there is no difficulty in
ascertaining who are the contracting parties. But here they cannot be
fixed. Doctor Wheelock can only be said to be a party, on the ground
of his contributing funds, and thus being the founder and visitor.
That ground being removed, he ceases to be a party to the contract.
Are the other contributors, alluded to in the charter, and enumerated
[17 U.S. 518, 611]
by Belknap in his history of New Hampshire, are they
contracting parties? They are not before the court; and even if they
were, with whom did they contract? With the King of Great Britain? He,
too, is not before the court; and has declared, by his chancellor, in
the case of the Attorney-General v. The City of London (3 Bro. C. C.
171; 1 Ves. jr. 243), that he has no longer any connection with these
corporations in America. Has the state of New Hampshire taken his
place? Neither is that state before the court, nor can it be, as a
party, originally defendant. But suppose this to be a contract between
the trustees, and the people of New Hampshire. A contract is always
for the benefit and advantage of some person. This contract cannot be
for the benefit of the trustees: it is for the use of the people. The
cestui que use is always the contracting party; the trustee has
nothing to do with stipulating the terms. The people then grant powers
for their own use; it is a contract with themselves!
But if the trustees are parties on one side, what do they give, and
what do they receive? They give their time and labor. Every society
has a right to the services of its members, in places of public trust
and duty. A town appoints, under the authority of the state, an
overseer of the poor, or of the highways. He gives, reluctantly, his
labor and services; he receives nothing in return, but the privilege
of giving his labor and services. Such appointments to offices of
public trust have never been considered
[17 U.S. 518, 612]
as contracts which the sovereign authority was not competent to
rescind or modify. There can be no contract in which the party does
not receive some personal, private, individual benefit. To make this
charter a contract, and a private contract, there must be a private
beneficial interest vested in the party who pays the consideration.
What is the private beneficial interest vested in the party, in the
present case? The right of appointing the president and professors of
the college, and of establishing ordinances for its government, &c.
But to make these rights an interest which will constitute the end and
object of a contract, the exercise of these rights must be for the
private individual advantage of the trustees. Here, however, so far
from that being the fact, it is solely for the advantage of the
public; for the interests of piety and learning. It was upon these
principles, that Lord KENYON determined, in the case of Weller v.
Foundling Hospital, 1 Peake 154, that the governor and members of the
corporation were competent witnesses, because they were trustees of a
public charity, and had no private personal interest. It is not meant
to deny, that mere right, a franchise, an incorporeal hereditament,
may be the subject of a contract; but it must always be a direct,
individual, beneficial interest to the party whe takes that right. The
rights of municipal corporators are of this nature. The right of
suffrage, there, belongs beneficially to the individual elector, and
is to be exercised for his own exclusive advantage. It is in relation
to these town [17 U.S.
518, 613] corporations, that Lord KENYON speaks, when he
says, that the king cannot force a new charter upon them. Rex v.
Pasmore, 3 T. R. 244. This principle is established for the benefit of
all the corporators. It is accompanied by another principle, without
which it would never have been adopted; the power of proposing
amendments, at the desire of those for whose benefit the charter was
granted. These two principles work together for the good of the whole.
By the one, these municipal corporations are saved from the tyranny of
the crown; and by the other, they are preserved from the infinite
perpetuity of inveterate errors. But in the present case, there is no
similar qualification of the immutability of the charter, which is
contended for in the argument on the other side. But in truth, neither
the original principle, nor its qualification, apply to this case; for
there is here no such beneficial interest and individual property as
are enjoyed by town corporators.
3. But even admitting it to be a case of contract, its
obligation is not impaired by these legislative acts. What vested
right has been divested? None! The former trustees are continued. It
is true, that new trustees are added, but this affords no reasonable
ground of complaint. The privileges of the House of Lords, in England,
are not impaired by the introduction of new members. The old
corporation is not abolished, for the foundation, as now regulated, is
substantially the same. It is identical in all its essential
constituent parts, and all its former rights are
[17 U.S. 518, 614]
preserved and confirmed. See Mayor of Colchester v. Seaber, 3
Burr. 1866. The change of name does not change its original rights and
franchises. 1 Saund. 344, n. 1; Luttrel's Case, 4 Co. 87. By the
revolution which separated this country from the British empire, all
the powers of the British government devolved on the states. The
legislature of New Hampshire then became clothed with all the powers,
both of the king and parliament, over these public institutions. On
whom, then, did the title to the property of this college fall? If,
before the revolution, it was beneficially vested in any private
individuals, or corporate body, I do not contend, that the revolution
divested it, and gave it to the state. But it was not before vested
beneficially in the trustees. The use unquestionably belonged to the
people of New Hampshire, who were the cestuis que trust. The legal
estate was, indeed, vested in the trustees, before the revolution, by
virtue of the royal charter of 1769. But that charter was destroyed by
the revolution (Attorney-General v. City of London, 3 Bro. C. C. 171;
s. c. 1 Ves. jr. 143), and the legal estate, of course, fell upon
those who held the equitable estate-upon the people. If those who were
trustees carried on the duties of the trust, after the revolution, it
must have been subject to the power of the people. If it be said, that
the state gave its implied assent to the terms of the old charter,
then it must be subject to all the terms on which it was granted; and
among these, to the oath of allegiance to the king. But if, to avoid
[17 U.S. 518, 615]
this concession, it be said, that the charter must have been so
far modified as to adapt it to the character of the new government,
and to the change in our civil institutions; that is precisely what we
contend for. These civil institutions must be modified, and adapted to
the mutations of society and manners. They belong to the people, are
established for their benefit, and ought to be subject to their
authority.
Hopkinson, in reply, insisted, that the whole argument on the other
side proceeded on an assumption which was not warranted, and could not
be maintained. The corporation created by this charter is called a
public corporation; its members are said to be public officers, and
agents of government. They were officers of the king, it is said,
before the revolution, and they are officers of the state since. But
upon what authority is all this taken? What is the acknowledged
principle, which decides thus of this corporation? Where are the cases
in which such a doctrine has ever prevailed? No case, no book of
authority, has been, or can be, cited to this purpose. Every writer on
the law of corporations, all the cases in law and equity, instruct us,
that colleges are regarded in law as private eleemosynary
corporations, especially, colleges founded, as this was, by a private
founder. If this settled principle be not overthrown, there is no
foundation for the defendant's argument. We contend, that this charter
is a contract between the government and the members of the
corporation created by it. It is a contract, because it is a grant of
valuable rights and privileges; and every grant implies
[17 U.S. 518, 616]
a contract not to resume the thing granted. Public offices are
not created by contract or by charter; they are provided for by
general laws. Judges and magistrates do not hold their offices under
charters; these offices are created by public laws, for public
political purposes, and filled by appointments made in the exercise of
political power. There is nothing like this in the origin of the
powers of the plaintiffs. Nor is there, in their duties, any more than
in their origin, anything which likens them to public political
agents. Their duties are such as they themselves have chosen to
assume, in relation to a fund created by private benefaction, for
charitable uses. These duties relate to the instruction of youth; but
instructors of youth are not public officers.
The argument on the other side, if it proves anything, will prove
that professors, masters, preceptors and tutors, are all political
persons and public officers; and that all education is necessarily and
exclusively the business of the state.
16 The confutation of such an argument lies in stating it. The
trustees of this college perform no duties, and have no responsibility
in any way connected with the civil government of the state. They
derive no compensation for their services from the public treasury.
They are the gratuitous administrators of a private bounty; the
trustees of a literary establishment, standing, in contemplation of
law, on the same foundation as hospitals are other charities. It is
true, that a college, in a popular sense, is a public institution,
because its uses are public, and its benefits may be enjoyed by all
who choose to enjoy them.
[17 U.S. 518, 617] But in a legal and
technical sense, they are not public institutions, but private
charities. Corporations may, therefore, be very well said to be for
public use, of which the property and privileges are yet private.
Indeed, there may be supposed to be an ultimate reference to the
public good, in granting all charters of incorporation; but this does
not change the property from private to public. If the property of
this corporation be public property, that is, property belonging to
the state, when did it become so? It was once private property; when
was it surrendered to the public? The object in obtaining the charter,
was not, surely, to transfer the property to the public, but to secure
it for ever in the hands of those with whom the original owners saw
fit to intrust it. Whence then, that right of ownership and control
over this property, which the legislature of New Hampshire has
undertaken to exercise? The distinction between public, political or
civil corporations, and corporations for the distribution of private
charity, is fully explained, and broadly marked, in the cases which
have been cited, and to which no answer has been given. The hospital
of Pennsylvania is quite as much a public corporation, as this
college. It has great funds, most wisely and beneficently
administered. Is it to be supposed, that the legislature might
rightfully lay its hands on this institution, violate its charter, and
direct its funds to any purpose which its pleasure might prescribe?
The property of this college was private property, before the
charter; and the charter has wrought no change in the nature or title
of this property. The school had existed as a charity school,
[17 U.S. 518, 618]
for years before the charter was granted. During this time, it
was manifestly a private charity. The case cited from Atkyns, shows,
that a charter does not make a charity more public, but only more
permanent. Before he accepted the charter, the founder of this college
possessed an absolute right to the property with which it was endowed,
and also the right flowing from that, of administering and applying it
to the purposes of the charity by him established. By taking the
charter, he assented, that the right to the property, and the power of
administering it, should go to the corporation of which he and others
were members. The beneficial purpose to which the property was to be
used, was the consideration on the part of the government for granting
the charter. The perpetuity which it was calculated to give to the
charity, was the founder's inducement to solicit it. By this charter,
the public faith is solemnly pledged, that the arrangement thus made
shall be perpetual. In consideration that the founder would devote his
property to the purposes beneficial to the public, the government has
solemnly covenanted with him, to secure the administration of that
property in the hands of trustees appointed in the charter. And yet
the argment now is, that because he so devoted his property to uses
beneficial to the public, the government may, for that reason, assume
the control of it, and take it out of those hands to which it was
confided by the charter. In other words, because the founder has
strictly performed the contract on his part, the government, on its
part, is at liberty to violate it. This argument is equally unsound in
morality and in law. [17
U.S. 518, 619] The founder proposed to appropriate his
property, and to render his services, upon condition of receiving a
charter which should secure to him and his associates certain
privileges and immunities. He undertook the discharge of certain
duties, in consideration of obtaining certain rights. There are rights
and duties on both sides. On the part of the founder, there is the
duty of appropriating the property, and of rendering the services
imposed on him by the charter, and the right of having secured to him
and his associates the administration of the charity, according to the
terms of the charter, for ever. On the part of the government, there
is the duty of maintaining and protecting all the rights and
privileges conferred by the charter, and the right of insisting on the
compliance of the trustees with the obligations undertaken by them,
and of enforcing that compliance by all due and regular means. There
is a plain, manifest, reasonable stipulation, mixed up of rights and
duties, which cannot be separated but by the hand of injustice and
violence. Yet the attempt now is, to break the mutuality of this
stipulation; to hold the founder's property, and yet take away that
which was given him as the consideration upon which he parted with his
property. The charter was a grant of valuable powers and privileges.
The state now claims the right of revoking this grant, without
restoring the consideration which it received for making the grant.
Such a pretence may suit despotic power. It may succeed, where the
authority of the legislature is limited by no rule, and bounded only
by its will. It may prevail in those systems in which injustice is
[17 U.S. 518, 620]
not always unlawful, and where neither the fundamental
constitution of the government sets and limits to power, nor any just
sentiment or moral feeling affords a practical restraint against a
power which in its theory is unlimited. But it cannot prevail in the
United States, where power is restrained by constitutional barriers,
and where no legislature is, even in theory, invested with all
sovereign powers. Suppose, Dr. Wheelock had chosen to establish and
perpetuate this charity, by his last will, or by a deed, in which he
had given the property, appointed the trustees, provided for their
succession, and prescribed their duties. Could the legislature of New
Hampshire have broken in upon this gift, changed its parties, assumed
the appointment of the trustees, abolished its stipulations and
regulations, or imposed others? This will hardly be pretended, even in
this bold and hardy argument-and why not? Because the gift, with all
its restrictions and provisions, would be under the general and
implied protection of the law. How is it, in our case? Why, in
addition to the general and implied protection afforded to all rights
and all property, it has an express, specific, covenanted assurance of
protection and inviolability, given on good and sufficient
considerations, in the usual manner of contracts between individuals.
There can be no doubt that, in contemplation of law, a charter, such
as this, is a contract. It takes effect only with the assent of those
to whom it is granted. Laws enjoin duties, without or against the will
of those who are to perform them. But the duties of the trustees,
under this charter, are binding upon them
[17 U.S. 518, 621]
only because they have accepted the charter, and assented to
its terms.
But taking this to be a contract, the argument of the defendant is,
that it is not such a contract as the constitution of the United
States protects. But why not? The constitution speaks of contracts,
and ought to include all contracts for property or valuable
privileges. There is no distinction or discrimination made by the
constitution itself, which will exclude this case from its protection.
The decisions which have already been made in this court are a
complete answer to the defendant's argument.
The attorney-general has insisted, that Dr. Wheelock was not the
founder of this college; that other donors have better title to that
character; and, that therefore, the plaintiff's argument, so far as it
rests on the supposed fact of Dr. Wheelock's being the founder, fails.
The first answer to this is, that the charter declares Dr. Wheelock to
be the founder in express terms. It also recites facts, which would
show him to be the founder, and on which the law would invest him with
that character, if the charter itself had not declared him so. But if
all this were otherwise, it would not help the defendant's argument.
The foundation was still private; and whether Dr. Wheelock, or Lord
Dartmouth, or any other person, possessed the greatest share of merit
in establishing the college, the result is the same, so far as it
bears on the present question. Whoever was founder, the visitatorial
power was assigned to the trustees, by the charter, and it, therefore,
is of no importance whether the founder was one individual or another.
It [17 U.S. 518, 622]
is narrowing the ground of our argument to suppose, that
we rest it on the particular facts of Dr. Wheelock's being founder;
although the fact is fully established by the charter itself. Our
argument is, that this is a private corporation; that the founder of
the charity, before the charter, had a right of visiting and governing
it, a right growing out of the property of the endowment; that by the
charter, this visitatorial power is vested in the trustees, as
assignees of the founder; and that it is a privilege, right and
immunity, originally springing from property, and which the law
regards and protects, as much as it regards and protects property and
privileges of any other description. By the charter, all proper powers
of government are given to the trustees, and this makes them visitors;
and from the time of the acceptance of the charter, no visitatorial
power remained in the founder or his heirs. This is the clear doctrine
of the case of Green v. Rutherforth, which has been cited, and which
is supported by all the other cases. Indeed, we need not stop here in
the argument. We might go further, and contend, that if there were no
private founder, the trustees would pass the visitatorial power. Where
there are charters, vesting the usual and proper powers of government
in the trustees, they thereby become the visitors, and the founder
retains no visitatorial power, although that founder be the king. 2
Ves. 328; 1 Ibid. 78. Even, then, if this college had originated with
the government, and been founded by it; still, if the government had
given a charter to [17
U.S. 518, 623] trustees, and conferred on them the powers
of visitation and control, which this charter contains, it would by no
means follow, that the government might revoke the grant, merely
because it had itself established the institution. Such would not be
the legal consequence. If the grant be of privileges and immunities,
which are to be esteemed objects of value, it cannot be revoked. But
this case is much stronger than that. Nothing is plainer than that Dr.
Wheelock, from the recitals of this charter, was the founder of that
institution. It is true, that others contributed; but it is to be
remembered, that they contributed to Dr. Wheelock, and to the funds
while under his private administration and control, and before the
idea of a charter had been suggested. These contributions were
obtained on his solicitation, and confided to his trust.
If we have satisfied the court that this charter must be regarded
as a contract, and such a contract as is protected by the constitution
of the United States, it will hardly be seriously denied, that the
acts of the legislature of New Hampshire impair this contract. They
impair the rights of the corporation as an aggregate body, and the
rights and privileges of individual members. New duties are imposed on
the corporation; the funds are directed to new purposes; a controlling
power over all the proceedings of the trustees, is vested in a board
of overseers unknown to the charter. Nine new trustees are added to
the original number, in direct hostility with the provision of the
charter. There are radical and essential alterations,
[17 U.S. 518, 624]
which go to alter the whole organization and frame of the
corporation.
If we are right in the view which we have taken of this case, the
result is, that before, and at the time of, the granting of this
charter, Dr. Wheelock had a legal interest in the funds with which the
institution was founded; that he made a contract with the then
existing government of the state, in relation to that interest, by
which he devoted to uses beneficial to the public, the funds which he
had collected, in consideration of the stipulations and covenants, on
the part of the government, contained in the charter; and that these
stipulations are violated, and the contract impaired, by the acts of
the legislature of New Hampshire.
February 2d, 1819.
The opinion of the court was delivered by MARSHALL, Ch. J.
This is an action of trover, brought by the Trustees of Dartmouth
College against William H. Woodward, in the state court of New
Hampshire, for the book of records, corporate seal, and other
corporate property, to which the plaintiffs allege themselves to be
entitled. A special verdict, after setting out the rights of the
parties, finds for the defendant, if certain acts of the legislature
of New Hampshire, passed on the 27th of June, and on the 18th of
December 1816, be valid, and binding on the trustees, without their
assent, and not repugnant to the constitution of the United States;
otherwise, it finds for the plaintiffs.
[17 U.S. 518, 625]
The superior court of judicature of New Hampshire rendered a
judgment upon this verdict for the defendant, which judgment has been
brought before this court by writ of error. The single question now to
be considered is, do the acts to which the verdict refers violate the
constitution of the United States?
This court can be insensible neither to the magnitude nor delicacy
of this question. The validity of a legislative act is to be examined;
and the opinion of the highest law tribunal of a state is to be
revised-an opinion which carries with it intrinsic evidence of the
diligence, of the ability, and the integrity, with which it was
formed. On more than one occasion, this court has expressed the
cautious circumspection with which it approaches the consideration of
such questions; and has declared, that in no doubtful case, would it
pronounce a legislative act to be contrary to the constitution. But
the American people have said, in the constitution of the United
States, that 'no state shall pass any bill of attainder, ex post facto
law, or law impairing the obligation of contracts.' In the same
instrument, they have also said, 'that the judicial power shall extend
to all cases in law and equity arising under the constitution.' On the
judges of this court, then, is imposed the high and solemn duty of
protecting, from even legislative violation, those contracts which the
constitution of our country has placed beyond legislative control;
and, however irksome the task may be, this is a duty from which we
dare not shrink. [17
U.S. 518, 626] The title of the plaintiffs originates in
a charter dated the 13th day of December, in the year 1769,
incorporating twelve persons therein mentioned, by the name of 'The
Trustees of Dartmouth College,' granting to them and their successors
the usual corporate privileges and powers, and authorizing the
trustees, who are to govern the college, to fill up all vacancies
which may be created in their own body.
The defendant claims under three acts of the legislature of New
Hampshire, the most material of which was passed on the 27th of June
1816, and is entitled, 'an act to amend the charter, and enlarge and
improve the corporation of Dartmouth College.' Among other alterations
in the charter, this act increases the number of trustees to
twenty-one, gives the appointment of the additional members to the
executive of the state, and creates a board of overseers, with power
to inspect and control the most important acts of the trustees. This
board consists of twenty-five persons. The president of the senate,
the speaker of the house of representatives, of New Hampshire, and the
governor and lieutenant-governor of Vermont, for the time being, are
to be members ex officio. The board is to be completed by the governor
and council of New Hampshire, who are also empowered to fill all
vacancies which may occur. The acts of the 18th and 26th of December
are supplemental to that of the 27th of June, and are principally
intended to carry that act into effect. The majority of the trustees
of the college have refused to accept this amended charter, and have
[17 U.S. 518, 627]
brought this suit for the corporate property, which is in
possession of a person holding by virtue of the acts which have been
stated.
It can require no argument to prove, that the circumstances of this
case constitute a contract. An application is made to the crown for a
charter to incorporate a religious and literary institution. In the
application, it is stated, that large contributions have been made for
the object, which will be conferred on the corporation, as soon as it
shall be created. The charter is granted, and on its faith the
property is conveyed. Surely, in this transaction every ingredient of
a complete and legitimate contract is to be found. The points for
consideration are, 1. Is this contract protected by the constitution
of the United States? 2. Is it impaired by the acts under which the
defendant holds?
1. On the first point, is has been argued, that the word
'contract,' in its broadest sense, would comprehend the political
relations between the government and its citizens, would extend to
offices held within a state, for state purposes, and to many of those
laws concerning civil institutions, which must change with
circumstances, and be modified by ordinary legislation; which deeply
concern the public, and which, to preserve good government, the public
judgment must control. That even marriage is a contract, and its
obligations are affected by the laws respecting divorces. That the
clause in the constitution, if construed in its greatest latitude,
[17 U.S. 518, 628]
would prohibit these laws. Taken in its broad, unlimited sense,
the clause would be an unprofitable and vexatious interference with
the internal concerns of a state, would unnecessarily and unwisely
embarrass its legislation, and render immutable those civil
institutions, which are established for purposes of internal
government, and which, to subserve those purposes, ought to vary with
varying circumstances. That as the framers of the constitution could
never have intended to insert in that instrument, a provision so
unnecessary, so mischievous, and so repugnant to its general spirit,
the term 'contract' must be understood in a more limited sense. That
it must be understood as intended to guard against a power, of at
least doubtful utility, the abuse of which had been extensively felt;
and to restrain the legislature in future from violating the right to
property. That, anterior to the formation of the constitution, a
course of legislation had prevailed in many, if not in all, of the
states, which weakened the confidence of man in man, and embarrassed
all transactions between individuals, by dispensing with a faithful
performance of engagements. To correct this mischief, by restraining
the power which produced it, the state legislatures were forbidden 'to
pass any law impairing the obligation of contracts,' that is, of
contracts respecting property, under which some individual could claim
a right to something beneficial to himself; and that, since the clause
in the constitution must in construction receive some limitation, it
may be confined, and ought to be confined, to cases of this
[17 U.S. 518, 629]
description; to cases within the mischief it was intended to
remedy.
The general correctness of these observations cannot be
controverted. That the framers of the constitution did not intend to
restrain the states in the regulation of their civil institutions,
adopted for internal government, and that the instrument they have
given us, is not to be so construed, may be admitted. The provision of
the constitution never has been understood to embrace other contracts,
than those which respect property, or some object of value, and confer
rights which may be asserted in a court of justice. It never has been
understood to restrict the general right of the legislature to
legislate on the subject of divorces. 18 Those acts enable some
tribunals, not to impair a marriage contract, but to liberate one of
the parties, because it has been broken by the other. When any state
legislature shall pass an act annulling all marriage contracts, or
allowing either party to annul it, without the consent of the other,
it will be time enough to inquire, whether such an act be
constitutional.
The parties in this case differ less on general principles, less on
the true construction of the constitution in the abstract, than on the
application of those principles to this case, and on the true
construction of the charter of 1769. This is the point on which the
cause essentially depends. If the act of incorporation be a grant of
political power, if it create a civil institution, to be employed in
the administration of the government, or if the funds of the college
be
[17 U.S. 518, 630]
public property, or if the state of New Hampshire, as a
government, be alone interested in its transactions, the subject is
one in which the legislature of the state may act according to its own
judgment, unrestrained by any limitation of its power imposed by the
constitution of the United States.
But if this be a private eleemosynary institution, endowed with a
capacity to take property, for objects unconnected with government,
whose funds are bestowed by individuals, on the faith of the charter;
if the donors have stipulated for the future disposition and
management of those funds, in the manner prescribed by themselves;
there may be more difficulty in the case, although neither the persons
who have made these stipulations, nor those for whose benefit they
were made, should be parties to the cause. Those who are no longer
interested in the property, may yet retain such an interest in the
preservation of their own arrangements, as to have a right to insist,
that those arrangements shall be held sacred. Or, if they have
themselves disappeared, it becomes a subject of serious and anxious
inquiry, whether those whom they have legally empowered to represent
them for ever, may not assert all the rights which they possessed,
while in being; whether, if they be without personal representatives,
who may feel injured by a violation of the compact, the trustees be
not so completely their representatives, in the eye of the law, as to
stand in their place, not only as respects the government of the
college, but also as respects the maintenance of the college charter.
It becomes then the duty of the court, most
[17 U.S. 518, 631]
seriously to examine this charter, and to ascertain its true
character.
From the instrument itself, it appears, that about the year 1754,
the Rev. Eleazer Wheelock established, at his own expense, and on his
own estate, a charity school for the instruction of Indians in the
Christian religion. The success of this institution inspired him with
the design of soliciting contributions in England, for carrying on and
extending his undertaking. In this pious work, he employed the Rev.
Nathaniel Whitaker, who, by virtue of a power of attorney from Dr.
Wheelock, appointed the Earl of Dartmouth and others, trustees of the
money, which had been, and should be, contributed; which appointment
Dr. Wheelock confirmed by a deed of trust, authorizing the trustees to
fix on a site for the college. They determined to establish the school
on Connecticut river, in the western part of New Hampshire; that
situation being supposed favorable for carrying on the original design
among the Indians, and also for promoting learning among the English;
and the proprietors in the neighborhood having made large offers of
land, on condition, that the college should there be placed. Dr.
Wheelock then applied to the crown for an act of incorporation; and
represented the expediency of appointing those whom he had, by his
last will, named as trustees in America, to be members of the proposed
corporation. 'In consideration of the premises,' 'for the education
and instruction of the youth of the Indian tribes,' &c., 'and also of
English youth, and any others,' the charter was granted, and the
trustees of Dartmouth College were, by that name, created a body
[17 U.S. 518, 632]
corporate, with power, for the use of the said college, to
acquire real and personal property, and to pay the president, tutors
and other officers of the college, such salaries as they shall allow.
The charter proceeds to appoint Eleazer Wheelock, 'the founder of
said college,' president thereof, with power, by his last will, to
appoint a successor, who is to continue in office, until disapproved
by the trustees. In case of vacancy, the trustees may appoint a
president, and in case of the ceasing of a president, the senior
professor or tutor, being one of the trustees, shall exercise the
office, until an appointment shall be made. The trustees have power to
appoint and displace professors, tutors and other officers, and to
supply any vacancies which may be created in their own body, by death,
resignation, removal or disability; and also to make orders,
ordinances and laws for the government of the college, the same not
being repugnant to the laws of Great Britain, or of New Hampshire, and
not excluding any person on account of his speculative sentiments in
religion, or his being of a religious profession different from that
of the trustees. This charter was accepted, and the property, both
real and personal, which had been contributed for the benefit of the
college, was conveyed to, and vested in, the corporate body.
From this brief review of the most essential parts of the charter,
it is apparent, that the funds of the college consisted entirely of
private donations. It is, perhaps, not very important, who were the
donors. The probability is, that the Earl of Dartmouth, and the other
trustees in England, were, in fact, the largest
[17 U.S. 518, 633]
contributors. Yet the legal conclusion, from the facts recited
in the charter, would probably be, that Dr. Wheelock was the founder
of the college. The origin of the institution was, undoubtedly, the
Indian charity school, established by Dr. Wheelock, at his own
expense. It was at his instance, and to enlarge this school, that
contributions were solicited in England. The person soliciting these
contributions was his agent; and the trustees, who received the money,
were appointed by, and act under, his authority. It is not too much to
say, that the funds were obtained by him, in trust, to be applied by
him to the purposes of his enlarged school. The charter of
incorporation was granted at his instance. The persons named by him,
in his last will, as the trustees of his charity- school, compose a
part of the corporation, and he is declared to be the founder of the
college, and its president for life. Were the inquiry material, we
should feel some hesitation in saying, that Dr. Wheelock was not, in
law, to be considered as the founder (1 Bl. Com. 481) of this
institution, and as possessing all the rights appertaining to that
character. But be this as it may, Dartmouth College is really endowed
by private individuals, who have bestowed their funds for the
propagation of the Christian religion among the Indians, and for the
promotion of piety and learning generally. From these funds, the
salaries of the tutors are drawn; and these salaries lessen the
expense of education to the students. It
[17 U.S. 518, 634]
is then an eleemosynary (1 Bl. Com. 471), and so far as
respects its funds, a private corporation.
Do its objects stamp on it a different character? Are the trustees
and professors public officers, invested with any portion of political
power, partaking in any degree in the administration of civil
government, and performing duties which flow from the sovereign
authority? That education is an object of national concern, and a
proper subject of legislation, all admit. That there may be an
institution, founded by government, and placed entirely under its
immediate control, the officers of which would be public officers,
amenable exclusively to government, none will deny. But is Dartmouth
College such an institution? Is education altogether in the hands of
government? Does every teacher of youth become a public officer, and
do donations for the purpose of education necessarily become public
property, so far that the will of the legislature, not the will of the
donor, becomes the law of the donation? These questions are of serious
moment to society, and deserve to be well considered.
Doctor Wheelock, as the keeper of his charity-school, instructing
the Indians in the art of reading, and in our holy religion;
sustaining them at his own expense, and on the voluntary contributions
of the charitable, could scarcely be considered as a public officer,
exercising any portion of those duties which belong to government; nor
could the legislature have
[17 U.S. 518, 635] supposed, that his
private funds, or those given by others, were subject to legislative
management, because they were applied to the purposes of education.
When, afterwards, his school was enlarged, and the liberal
contributions made in England, and in America, enabled him to extend
his care to the education of the youth of his own country, no change
was wrought in his own character, or in the nature of his duties. Had
he employed assistant-tutors with the funds contributed by others, or
had the trustees in England established a school, with Dr. Wheelock at
its head, and paid salaries to him and his assistants, they would
still have been private tutors; and the fact, that they were employed
in the education of youth, could not have converted them into public
officers, concerned in the administration of public duties, or have
given the legislature a right to interfere in the management of the
fund. The trustees, in whose care that fund was placed by the
contributors, would have been permitted to execute their trust,
uncontrolled by legislative authority.
Whence, then, can be derived the idea, that Dartmouth College has
become a public institution, and its trustees public officers,
exercising powers conferred by the public for public objects? Not from
the source whence its funds were drawn; for its foundation is purely
private and eleemosynary-not from the application of those funds; for
money may be given for education, and the persons receiving it do not,
by being employed in the education of youth, become members of the
civil government. Is it from
[17 U.S. 518, 636] the act of
incorporation? Let this subject be considered.
A corporation is an artificial being, invisible, intangible, and
existing only in contemplation of law. Being the mere creature of law,
it possesses only those properties which the charter of its creation
confers upon it, either expressly, or as incidental to its very
existence. These are such as are supposed best calculated to effect
the object for which it was created. Among the most important are
immortality, and, if the expression may be allowed, individuality;
properties, by which a perpetual succession of many persons are
considered as the same, and may act as a single individual. They
enable a corporation to manage its own affairs, and to hold property,
without the perplexing intricacies, the hazardous and endless
necessity, of perpetual conveyances for the purpose of transmitting it
from hand to hand. It is chiefly for the purpose of clothing bodies of
men, in succession, with these qualities and capacities, that
corporations were invented, and are in use. By these means, a
perpetual succession of individuals are capable of acting for the
promotion of the particular object, like one immortal being. But this
being does not share in the civil government of the country, unless
that be the purpose for which it was created. Its immortality no more
confers on it political power, or a political character, than
immortality would confer such power or character on a natural person.
It is no more a state instrument, than a natural person exercising the
same powers would be. If, then, a natural person, employed
[17 U.S. 518, 637]
by individuals in the education of youth, or for the government
of a seminary in which youth is educated, would not become a public
officer, or be considered as a member of the civil government, how is
it, that this artificial being, created by law, for the purpose of
being employed by the same individuals, for the same purposes, should
become a part of the civil government of the country? Is it because
its existence, its capacities, its powers, are given by law? Because
the government has given it the power to take and to hold property, in
a particular form, and for particular purposes, has the government a
consequent right substantially to change that form, or to vary the
purposes to which the property is to be applied? This principle has
never been asserted or recognised, and is supported by no authority.
Can it derive aid from reason?
The objects for which a corporation is created are universally such
as the government wishes to promote. They are deemed beneficial to the
country; and this benefit consitutes the consideration, and in most
cases, the sole consideration of the grant. In most eleemosynary
institutions, the object would be difficult, perhaps unattainable,
without the aid of a charter of incorporation. Charitable or
public-spirited individuals, desirous of making permanent
appropriations for charitable or other useful purposes, find it
impossible to effect their design securely and certainly, without an
incorporating act. They apply to the government, state their
beneficent object, and offer to advance the money necessary for its
accomplishment, [17 U.S.
518, 638] provided the government will confer on the
instrument which is to execute their designs the capacity to execute
them. The proposition is considered and approved. The benefit to the
public is considered as an ample compensation for the faculty it
confers, and the corporation is created. If the advantages to the
public constitute a full compensation for the faculty it gives, there
can be no reason for exacting a further compensation, by claiming a
right to exercise over this artificial being, a power which changes
its nature, and touches the fund, for the security and application of
which it was created. There can be no reason for implying in a
charter, given for a valuable consideration, a power which is not only
not expressed, but is in direct contradiction to its express
stipulations.
From the fact, then, that a charter of incorporation has been
granted, nothing can be inferred, which changes the character of the
institution, or transfers to the government any new power over it. The
character of civil institutions does not grow out of their
incorporation, but out of the manner in which they are formed, and the
objects for which they are created. The right to change them is not
founded on their being incorporated, but on their being the
instruments of government, created for its purposes. The same
institutions, created for the same objects, though not incorporated,
would be public institutions, and, of course, be controllable by the
legislature. The incorporating act neither gives nor prevents this
control. Neither, in reason, can the incorporating act
[17 U.S. 518, 639]
change the character of a private eleemosynary institution.
We are next led to the inquiry, for whose benefit the property
given to Dartmouth College was secured? The counsel for the defendant
have insisted, that the beneficial interest is in the people of New
Hampshire. The charter, after reciting the preliminary measures which
had been taken, and the application for an act of incorporation,
proceeds thus: 'Know ye, therefore, that we, considering the premises,
and being willing to encourage the laudable and charitable design of
spreading Christian knowledge among the savages of our American
wilderness, and also that the best means of education be established
in our province of New Hampshire, for the benefit of said province,
do, of our special grace,' &c. Do these expressions bestow on New
Hampshire any exclusive right to the property of the college, any
exclusive interest in the labors of the professors? Or do they merely
indicate a willingness that New Hampshire should enjoy those
advantages which result to all from the establishment of a seminary of
learning in the neighborhood? On this point, we think it impossible to
entertain a serious doubt. The words themselves, unexplained by the
context, indicate, that the 'benefit intended for the province' is
that which is derived from 'establishing the best means of education
therein;' that is, from establishing in the province, Dartmouth
College, as constituted by the charter. But, if these words,
considered alone, could admit of doubt, that
[17 U.S. 518, 640]
doubt is completely removed, by an inspection of the entire
instrument.
The particular interests of New Hampshire never entered into the
mind of the donors, never constituted a motive for their donation. The
propagation of the Christian religion among the savages, and the
dissemination of useful knowledge among the youth of the country, were
the avowed and the sole objects of their contributions. In these, New
Hampshire would participate; but nothing particular or exclusive was
intended for her. Even the site of the college was selected, not for
the sake of New Hampshire, but because it was 'most subservient to the
great ends in view,' and because liberal donations of land were
offered by the proprietors, on condition that the institution should
be there established. The real advantages from the location of the
college, are, perhaps, not less considerable to those on the west,
than to those on the east side of Connecticut river. The clause which
constitutes the incorporation, and expresses the objects for which it
was made, declares those objects to be the instruction of the Indians,
'and also of English youth, and any others.' So that the objects of
the contributors, and the incorporating act, were the same; the
promotion of Christianity, and of education generally, not the
interests of New Hampshire particularly.
From this review of the charter, it appears, that Dartmouth College
is an eleemosynary institution, incorporated for the purpose of
perpetuating the application of the bounty of the donors, to the
specified objects of that bounty; that its trustees or governors
[17 U.S. 518, 641]
were originally named by the founder, and invested with the
power of perpetuating themselves; that they are not public officers,
nor is it a civil institution, participating in the administration of
government; but a charity-school, or a seminary of education,
incorporated for the preservation of its property, and the perpetual
application of that property to the objects of its creation.
Yet a question remains to be considered, of more real difficulty,
on which more doubt has been entertained, than on all that have been
discussed. The founders of the college, at least, those whose
contributions were in money, have parted with the property bestowed
upon it, and their representatives have no interest in that property.
The donors of land are equally without interest, so long as the
corporation shall exist. Could they be found, they are unaffected by
any alteration in its constitution, and probably regardless of its
form, or even of its existence. The students are fluctuating, and no
individual among our youth has a vested interest in the institution,
which can be asserted in a court of justice. Neither the founders of
the college, nor the youth for whose benefit it was founded, complain
of the alteration made in its charter, or think themselves injured by
it. The trustees alone complain, and the trustees have no beneficial
interest to be protected. Can this be such a contract, as the
constitution intended to withdraw from the power of state legislation?
Contracts, the parties to which have a vested beneficial interest, and
those only, it has been said, are the objects about
[17 U.S. 518, 642]
which the constitution is solicitous, and to which its
protection is extended.
The court has bestowed on this argument the most deliberate
consideration, and the result will be stated. Dr. Wheelock, acting for
himself, and for those who, at his solicitation, had made
contributions to his school, applied for this charter, as the
instrument which should enable him, and them, to perpetuate their
beneficent intention. It was granted. An artificial, immortal being,
was created by the crown, capable of receiving and distributing for
ever, according to the will of the donors, the donations which should
be made to it. On this being, the contributions which had been
collected were immediately bestowed. These gifts were made, not indeed
to make a profit for the donors, or their posterity, but for
something, in their opinion, of inestimable value; for something which
they deemed a full equivalent for the money with which it was
purchased. The consideration for which they stipulated, is the
perpetual application of the fund to its object, in the mode
prescribed by themselves. Their descendants may take no interest in
the preservation of this consideration. But in this respect their
descendants are not their representatives; they are represented by the
corporation. The corporation is the assignee of their rights, stands
in their place, and distributes their bounty, as they would themselves
have distributed it, had they been immortal. So, with respect to the
students who are to derive learning from this source; the corporation
is a trustee for them also. Their potential rights, which, taken
distributively, [17 U.S.
518, 643] are imperceptible, amount collectively to a
most important interest. These are, in the aggregate, to be exercised,
asserted and protected, by the corporation. They were as completely
out of the donors, at the instant of their being vested in the
corporation, and as incapable of being asserted by the students, as at
present.
According to the theory of the British constitution, their
parliament is omnipotent. To annul corporate rights might give a shock
to public opinion, which that government has chosen to avoid; but its
power is not questioned. Had parliament, immediately after the
emanation of this charter, and the execution of those conveyances
which followed it, annulled the instrument, so that the living donors
would have witnessed the disappointment of their hopes, the perfidy of
the transaction would have been universally acknowledged. Yet, then,
as now, the donors would have no interest in the property; then, as
now, those who might be students would have had no rights to be
violated; then, as now, it might be said, that the trustees, in whom
the rights of all were combined, possessed no private, individual,
beneficial interests in the property confided to their protection. Yet
the contract would, at that time, have been deemed sacred by all. What
has since occurred, to strip it of its inviolability? Circumstances
have not changed it. In reason, in justice, and in law, it is now,
what is was in 1769.
This is plainly a contract to which the donors, the trustees and
the crown (to whose rights and obligations New Hampshire succeeds)
were the original [17
U.S. 518, 644] parties. It is a contract made on a
valuable consideration. It is a contract for the security and
disposition of property. It is a contract, on the faith of which, real
and personal estate has been conveyed to the corporation. It is, then,
a contract within the letter of the constitution, and within its
spirit also, unless the fact, that the property is invested by the
donors in trustees, for the promotion of religion and education, for
the benefit of persons who are perpetually changing, though the
objects remain the same, shall create a particular exception, taking
this case out of the prohibition contained in the constitution.
It is more than possible, that the preservation of rights of this
description was not particularly in the view of the framers of the
constitution, when the clause under consideration was introduced into
that instrument. It is probable, that interferences of more frequent
occurrence, to which the temptation was stronger, and of which the
mischief was more extensive, constituted the great motive for imposing
this restriction on the state legislatures. But although a particular
and a rare case may not, in itself, be of sufficient magnitude to
induce a rule, yet it must be governed by the rule, when established,
unless some plain and strong reason for excluding it can be given. It
is not enough to say, that this particular case was not in the mind of
the convention, when the article was framed, nor of the American
people, when it was adopted. It is necessary to go further, and to say
that, had this particular case been suggested, the language would have
been so varied, as to exclude it, or it would have been made a special
exception. The [17 U.S.
518, 645] case being within the words of the rule, must
be within its operation likewise, unless there be something in the
literal construction, so obviously absurd or mischievous, or repugnant
to the general spirit of the instrument, as to justify those who
expound the constitution in making it an exception.
On what safe and intelligible ground, can this exception stand?
There is no expression in the constitution, no sentiment delivered by
its contemporaneous expounders, which would justify us in making it.
In the absence of all authority of this kind, is there, in the nature
and reason of the case itself, that which would sustain a construction
of the constitution, not warranted by its words? Are contracts of this
description of a character to excite so little interest, that we must
exclude them from the provisions of the constitution, as being
unworthy of the attention of those who framed the instrument? Or does
public policy so imperiously demand their remaining exposed to
legislative alteration, as to compel us, or rather permit us, to say,
that these words, which were introduced to give stability to
contracts, and which in their plain import comprehend this contract,
must yet be so construed as to exclude it?
Almost all eleemosynary corporations, those which are created for
the promotion of religion, of charity or of education, are of the same
character. The law of this case is the law of all. In every literary
or charitable institution, unless the objects of the bounty be
themselves incorporated, the whole legal interest is in trustees, and
can be asserted only by them. The donors, or claimants of the bounty,
if [17 U.S. 518, 646]
they can appear in court at all, can appear only to
complain of the trustees. In all other situations, they are identified
with, and personated by, the trustees; and their rights are to be
defended and maintained by them. Religion, charity and education are,
in the law of England, legatees or donees, capable of receiving
bequests or donations in this form. They appear in court, and claim or
defend by the corporation. Are they of so little estimation in the
United States, that contracts for their benefit must be excluded from
the protection of words, which in their natural import include them?
Or do such contracts so necessarily require new modelling by the
authority of the legislature, that the ordinary rules of construction
must be disregarded, in order to leave them exposed to legislative
alteration?
All feel, that these objects are not deemed unimportant in the
United States. The interest which this case has excited, proves that
they are not. The framers of the constitution did not deem them
unworthy of its care and protection. They have, though in a different
mode, manifested their respect for science, by reserving to the
government of the Union the power 'to promote the progress of science
and useful arts, by securing for limited times, to authors and
inventors, the exclusive right to their respective writings and
discoveries.' They have, so far, withdrawn science, and the useful
arts, from the action of the state governments. Why then should they
be supposed so regardless of contracts made for the advancement of
literature, as to intend to exclude them from provisions, made for the
security [17 U.S. 518,
647] of ordinary contracts between man and man? No reason
for making this supposition is perceived.
If the insignificance of the object does not require that we should
exclude contracts respecting it from the protection of the
constitution; neither, as we conceive, is the policy of leaving them
subject to legislative alteration so apparent, as to require a forced
construction of that instrument, in order to effect it. These
eleemosynary institutions do not fill the place, which would otherwise
be occupied by government, but that which would otherwise remain
vacant. They are complete acquisitions to literature. They are
donations to education; donations, which any government must be
disposed rather to encourage than to discountenance. It requires no
very critical examination of the human mind, to enable us to
determine, that one great inducement to these gifts is the conviction
felt by the giver, that the disposition he makes of them is immutable.
It is probable, that no man ever was, and that no man ever will be,
the founder of a college, believing at the time, that an act of
incorporation constitutes no security for the institution; believing,
that it is immediately to be deemed a public institution, whose funds
are to be governed and applied, not by the will of the donor, but by
the will of the legislature. All such gifts are made in the pleasing,
perhaps, delusive hope, that the charity will flow for ever in the
channel which the givers have marked out for it. If every man finds in
his own bosom strong evidence of the universality of this sentiment,
there can be but little reason to imagine, that the framers of our
constitution were [17
U.S. 518, 648] strangers to it, and that, feeling the
necessity and policy of giving permanence and security to contracts,
of withdrawing them from the influence of legislative bodies, whose
fluctuating policy, and repeated interferences, produced the most
perplexing and injurious embarrassments, they still deemed it
necessary to leave these contracts subject to those interferences. The
motives for such an exception must be very powerful, to justify the
construction which makes it.
The motives suggested at the bar grow out of the original
appointment of the trustees, which is supposed to have been in a
spirit hostile to the genius of our government, and the presumption,
that if allowed to continue themselves, they now are, and must remain
for ever, what they originally were. Hence is inferred the necessity
of applying to this corporation, and to other similar corporations,
the correcting and improving hand of the legislature. It has been
urged repeatedly, and certainly with a degree of earnestness which
attracted attention, that the trustees, deriving their power from a
regal source, must, necessarily, partake of the spirit of their
origin; and that their first principles, unimproved by that
resplendent light which has been shed around them, must continue to
govern the college, and to guide the students.
Before we inquire into the influence which this argument ought to
have on the constitutional question, it may not be amiss to examine
the fact on which it rests. The first trustees were undoubtedly named
in the charter, by the crown; but at whose suggestion were they named?
By whom were they [17
U.S. 518, 649] selected? The charter informs us. Dr.
Wheelock had represented, 'that for many weightly reasons, it would be
expedients, that the gentlemen whom he had already nominated, in his
last will, to be trustees in America, should be of the corporation now
proposed.' When, afterwards, the trustees are named in the charter,
can it be doubted, that the persons mentioned by Dr. Wheelock in his
will were appointed? Some were probably added by the crown, with the
approbation of Dr. Wheelock. Among these, is the doctor himself. If
any others were appointed, at the instance of the crown, they are the
governor, three members of the council, and the speaker of the house
of representatives of the colony of New Hampshire. The stations filled
by these persons ought to rescue them from any other imputation than
too great a dependence on the crown. If, in the revolution that
followed, they acted under the influence of this sentiment, they must
have ceased to be trustees; if they took part with their countrymen,
the imputation, which suspicion might excite, would no longer attach
to them. The original trustees, then, or most of them, were named by
Dr. Wheelock, and those who were added to his nomination, most
probably, with his approbation, were among the most eminent and
respectable individuals in New Hampshire.
The only evidence which we possess of the character of Dr. Wheelock
is furnished by this charter. The judicious means employed for the
accomplishment of his object, and the success which attended his
endeavors, would lead to the opinion, that he united a sound
understanding to that humanity
[17 U.S. 518, 650] benevolence which
suggested his undertaking. It surely cannot be assumed, that his
trustees were selected without judgment. With as little probability
can it be assumed, that while the light of science, and of liberal
principles, pervades the whole community, these originally benighted
trustees remain in utter darkness, incapable of participating in the
general improvement; that while the human race is rapidly advancing,
they are stationary. Reasoning a priori, we should believe, that
learned and intelligent men, selected by its patrons for the
government of a literary institution, would select learned and
intelligent men for their successors; men as well fitted for the
government of a college as those who might be chosen by other means.
Should this reasoning ever prove erroneous, in a particular case,
public opinion, as has been stated at the bar, would correct the
institution. The mere possibility of the contrary would not justify a
construction of the constitution, which should exclude these contracts
from the protection of a provision whose terms comprehend them.
The opinion of the court, after mature deliberation, is, that this
is a contract, the obligation of which cannot be impaired, without
violating the constitution of the United States. This opinion appears
to us to be equally supported by reason, and by the former decisions
of this court.
2. We next proceed to the inquiry, whether its obligation
has been impaired by those acts of the legislature of New Hampshire,
to which the special verdict refers?
[17 U.S. 518, 651] From the review of this
charter, which has been taken, it appears that the whole power of
governing the college, of appointing and removing tutors, of fixing
their salaries, of directing the course of study to be pursued by the
students, and of filling up vacancies created in their own body, was
vested in the trustees. On the part of the crown, it was expressly
stipulated, that this corporation, thus constituted, should continue
for ever; and that the number of trustees should for ever consist of
twelve, and no more. By this contract, the crown was bound, and could
have made no violent alteration in its essential terms, without
impairing its obligation.
By the revolution, the duties, as well as the powers, of government
devolved on the people of New Hampshire. It is admitted, that among
the latter was comprehended the transcendent power of parliament, as
well as that of the executive department. It is too clear, to require
the support of argument, that all contracts and rights respecting
property, remained unchanged by the revolution. The obligations, then,
which were created by the charter to Dartmouth College, were the same
in the new, that they had been in the old government. The power of the
government was also the same. A repeal of this charter, at any time
prior to the adoption of the present constitution of the United
States, would have been an extraordinary and unprecedented act of
power, but one which could have been contested only by the
restrictions upon the legislature, to be found in the constitution of
the state. But the constitution of the United States has imposed this
additional limitation,
[17 U.S. 518, 652] that the legislature of a state shall
pass no act 'impairing the obligation of contracts.'
It has been already stated, that the act 'to amend the charter, and
enlarge and improve the corporation of Dartmouth College,' increases
the number of trustees to twenty-one, gives the appointment of the
additional members to the executive of the state, and creates a board
of overseers, to consist of twenty-five persons, of whom twenty-one
are also appointed by the executive of New Hampshire, who have power
to inspect and control the most important acts of the trustees.
On the effect of this law, two opinions cannot be entertained.
Between acting directly, and acting through the agency of trustees and
overseers, no essential difference is perceived. The whole power of
governing the college is transferred from trustees, appointed
according to the will of the founder, expressed in the charter, to the
executive of New Hampshire. The management and application of the
funds of this eleemosynary institution, which are placed by the donors
in the hands of trustees named in the charter, and empowered to
perpetuate themselves, are placed by this act under the control of the
government of the state. The will of the state is substituted for the
will of the donors, in every essential operation of the college. This
is not an immaterial change. The founders of the college contracted,
not merely for the perpetual application of the funds which they gave,
to the objects for which those funds were given; they contracted also,
to secure that application by the constitution of the corporation.
[17 U.S. 518, 653]
They contracted for a system, which should, so far as human
foresight can provide, retain for ever the government of the literary
institution they had formed, in the hands of persons approved by
themselves. This system is totally changed. The charter of 1769 exists
no longer. It is re-organized; and re-organized in such a manner, as
to convert a literary institution, moulded according to the will of
its founders, and placed under the control of private literary men,
into a machine entirely subservient to the will of government. This
may be for the advantage of this college in particular, and may be for
the advantage of literature in general; but it is not according to the
will of the donors, and is subversive of that contract, on the faith
of which their property was given.
In the view which has been taken of this interesting case, the
court has confined itself to the rights possessed by the trustees, as
the assignees and representatives of the donors and founders, for the
benefit of religion and literature. Yet, it is not clear, that the
trustees ought to be considered as destitute of such beneficial
interest in themselves, as the law may respect. In addition to their
being the legal owners of the property, and to their having a freehold
right in the powers confided to them, the charter itself countenances
the idea, that trustees may also be tutors, with salaries. The first
president was one of the original trustees; and the charter provides,
that in case of vacancy in that office, 'the senior professor or
tutor, being one of the trustees, shall exercise the office of
president, until the trustees shall make choice
[17 U.S. 518, 654]
of, and appoint a president.' According to the tenor of the
charter, then, the trustees might, without impropriety, appoint a
president and other professors from their own body. This is a power
not entirely unconnected with an interest. Even if the proposition of
the counsel for the defendant were sustained; if it were admitted,
that those contracts only are protected by the constitution, a
beneficial interest in which is vested in the party, who appears in
court to assert that interest; yet it is by no means clear, that the
trustees of Dartmouth College have no beneficial interest in
themselves. But the court has deemed it unnecessary to investigate
this partieular point, being of opinion, on general principles, that
in these private eleemosynary institutions, the body corporate, as
possessing the whole legal and equitable interest, and completely
representing the donors, for the purpose of executing the trust, has
rights which are protected by the constitution.
It results from this opinion, that the acts of the legislature of
New Hampshire, which are stated in the special verdict found in this
cause, are repugnant to the constitution of the United States; and
that the judgment on this special verdict ought to have been for the
plaintiffs. The judgment of the state court must, therefore, be
reversed.
WASHINGTON, Justice.
This cause turns upon the validity of certain laws of the state of
New Hampshire, which have been stated in the case, and which, it is
contended by the counsel for the plaintiffs
[17 U.S. 518, 655]
in error, are void, being repugnant to the constitution of that
state, and also to the constitution of the United States. Whether the
first objection to these laws be well founded or not, is a question
with which this court, in this case, has nothing to do: because it has
no jurisdiction, as an appellate court, over the decisions of a state
court, except in cases where is drawn in question the validity of a
treaty, or statute of, or an authority exercised under, the United
States, and the decision is against their validity; or where is drawn
in question the validity of a statute of, or an authority exercised
under, any state, on the ground of their being repugnant to the
constitution, treaties or laws of the United States, and the decision
is in favor of their validity; or where is drawn in question the
construction of any clause of the constitution, or of a treaty, or
statute of, or commission held under, the United States, and the
decision is against the title, right, privilege or exemption specially
set up or claimed by either party, under such clause of the said
constitution, treaty, statute or commission.
The clause in the constitution of the United States which was drawn
in question in the court from whence this transcript has been sent, is
that part of the tenth section of the first article, which declares,
that 'no state shall pass any bill of attainder, ex post facto law, or
any law impairing the obligation of contracts.' The decision of the
state court is against the title specially claimed by the plaintiffs
in error, under the above clause, because they contend, that the laws
of New Hampshire, above referred to,
[17 U.S. 518, 656] impair the obligation of
a contract, and are, consequently, repugnant to the above clause of
the constitution of the United States, and void. There are, then, two
questions for this court to decide: 1st. Is the charter granted to
Dartmouth College on the 13th of December 1769, to be considered as a
contract? If it be, then, 2d. Do the laws in question impair its
obligation?
1. What is a contract? It may be defined to be a transaction
between two or more persons, in which each party comes under an
obligation to the other, and each reciprocally acquires a right to
whatever is promised by the other. Powell on Cont. 6. Under this
definition, says Mr. Powell, it is obvious, that every feoffment,
gift, grant, agreement, promise, &c., may be included, because in all
there is a mutual consent of the minds of the parties concerned in
them, upon an agreement between them respecting some property or right
that is the object of the stipulation. He adds, that the ingredients
requisite to form a contract, are, parties, consent, and an obligation
to be created or dissolved: these must all concur, because the regular
effect of all contracts is, on one side, to acquire, and on the other,
to part with, some property or rights; or to abridge, or to restrain
natural liberty, by binding the parties to do, or restraining them
from doing, something which before they might have done, or omitted.
If a doubt could exist that a grant is a contract, the point was
decided in the case of Fletcher v. Peck, 6 Cranch 87,
[17 U.S. 518, 657]
in which it was laid down, that a contract is either executory
or executed; by the former, a party binds himself to do, or not to do,
a particular thing; the latter is one in which the object of the
contract is performed, and this differs in nothing from a grant; but
whether executed or executory, they both contain obligations binding
on the parties, and both are equally within the provisions of the
constitution of the United States, which forbids the state governments
to pass laws impairing the obligation of contracts.
If, then, a grant be a contract, within the meaning of the
constitution of the United States, the next inquiry is, whether the
creation of a corporation by charter, be such a grant, as includes an
obligation of the nature of a contract, which no state legislature can
pass laws to impair? A corporation is defined by Mr. Justice
Blackstone (2 Bl. Com. 37) to be a franchise. It is, says he, 'a
franchise for a number of persons, to be incorporated and exist as a
body politic, with a power to maintain perpetual succession, and to do
corporate acts, and each individual of such corporation is also said
to have a franchise or freedom.' This franchise, like other
franchises, is an incorporeal hereditament, issuing out of something
real or personal, or concerning or annexed to, and exercisable within
a thing corporate. To this grant, or this franchise, the parties are
the king and the persons for whose benefit it is created, or trustees
for them. The assent of both is necessary.
[17 U.S. 518, 658]
The subjects of the grant are not only privileges and
immunities, but property, or, which is the same thing, a capacity to
acquire and to hold property in perpetuity. Certain obligations are
created, binding both on the grantor and the grantees. On the part of
the former, it amounts to an extinguishment of the king's prerogative
to bestow the same identical franchise on another corporate body,
because it would prejudice his prior grant. (2 Bl. Com. 37.) It
implies, therefore, a contract not to re-assert the right to grant the
franchise to another, or to impair it. There is also an implied
contract, that the founder of a private charity, or his heirs, or
other persons appointed by him for that purpose, shall have the right
to visit, and to govern the corporation, of which he is the
acknowledged founder and patron, and also, that in case of its
dissolution, the reversionary right of the founder to the property,
with which he had endowed it, should be preserved inviolate.
The rights acquired by the other contracting party are those of
having perpetual succession, of suing and being sued, of purchasing
lands for the benefit of themselves and their successors, and of
having a common seal, and of making by-laws. The obligation imposed
upon them, and which forms the consideration of the grant is that of
acting up to the end or design for which they were created by their
founder. Mr. Justice BULLER, in the case of the King v. Pasmore, 3 T.
R. 246, says, that the grant of incorporation is a compact between the
crown and a number of persons, the latter of whom undertake, in
consideration [17 U.S.
518, 659] of the privileges bestowed, to exert themselves
for the good government of the place. If they fail to perform their
part of it, there is an end of the compact. The charter of a
corporation, says Mr. Justice Blackstone (2 Bl. Com. 484), may be
forfeited through negligence, or abuse of its franchises, in which
case, the law judges, that the body politic has broken the condition
upon which it was incorporated, and thereupon the corporation is void.
It appears to me, upon the whole, that these principles and
authorities prove, incontrovertibly, that a charter of incorporation
is a contract.
2. The next question is, do the acts of the legislature of
New Hampshire of the 27th of June, and 18th and 26th of December 1816,
impair this contract, within the true intent and meaning of the
constitution of the United States? Previous to the examination of this
question, it will be proper clearly to mark the distinction between
the different kinds of lay aggregate corporations, in order to prevent
any implied decision by this court of any other case, than the one
immediately before it.
We are informed, by the case of Philips v. Bury, 1 Ld. Raym. 5; s.
c. 2 T. R. 346, which contains all the doctrine of corporations
connected with this point, that there are two kinds of corporations
aggregate, viz., such as are for public government, and such as are
for private charity. The first are those for the government of a town,
city or the like; and being for public advantage, are
[17 U.S. 518, 660]
to be governed according to the law of the land. The validity
and justice of their private laws and constitutions are examinable in
the king's courts. Of these, there are no particular founders, and
consequently, no particular visitor; there are no patrons of these
corporations. But private and particular corporations for charity,
founded and endowed by private persons, are subject to the private
government of those who erect them, and are to be visited by them or
their heirs, or such other persons as they may appoint. The only rules
for the government of these private corporations are the laws and
constitutions assigned by the founder. This right of government and
visitation arises from the property which the founder had in the lands
assigned to support the charity; and as he is the author of the
charity, the law invests him with the necessary power of inspecting
and regulating it. The authorities are full, to prove, that a college
is a private charity, as well as an hospital, and that there is, in
reality, no difference between them, except in degree; but they are
within the same reason, and both eleemosynary.
These corporations, civil and eleemosynary, which differ from each
other so especially in their nature and constitution, may very well
differ in matters which concern their rights and privileges, and their
existence and subjection to public control. The one is the mere
creature of public institution, created exclusively for the public
advantage, without other endowments than such as the king, or
government, may bestow upon it, and having no other founder or visitor
than the king or government, the fundator incipiens.
[17 U.S. 518, 661]
The validity and justice of its laws and constitution are
examinable by the courts having jurisdiction over them; and they are
subject to the general law of the land. It would seem reasonable, that
such a corporation may be controlled, and its constitution altered and
amended by the government, in such manner as the public interest may
require. Such legislative interferences cannot be said to impair the
contract by which the corporation was formed, because there is, in
reality, but one party to it, the trustees or governors of the
corporation being merely the trustees for the public, the cestui que
trust of the foundation. These trustees or governors have no interest,
no privileges or immunities, which are violated by such interference,
and can have no more right to complain of them, than an ordinary
trustee, who is called upon in a court of equity to execute the trust.
They accepted the charter, for the public benefit alone, and there
would seem to be no reason, why the government, under proper
limitations, should not alter or modify such a grant, at pleasure. But
the case of a private corporation is entirely different. That is the
creature of private benefaction, for a charity or private purpose. It
is endowed and founded by private persons, and subject to their
control, laws and visitation, and not to the general control of the
government; and all these powers, rights and privileges flow from the
property of the founder in the funds assigned for the support of the
charity. Although the king, by the grant of the charter, is, in some
sense, the founder of all eleemosynary corporations, because, without
his grant, they cannot exist; yet the patron or endower is the
perficient founder, to whom belongs, as of
[17 U.S. 518, 662]
right, all the powers and privileges, which have been
described. With such a corporation, it is not competent for the
legislature to interfere. It is a franchise, or incorporeal
hereditament, founded upon private property, devoted by its patron to
a private charity, of a peculiar kind, the offspring of his own will
and pleasure, to be managed and visited by persons of his own
appointment, according to such laws and regulations as he, or the
persons so selected, may ordain.
It has been shown, that the charter is a contract on the part of
the government, that the property with which the charity is endowed,
shall be for ever vested in a certain number of persons, and their
successors, to subserve the particular purposes designated by the
founder, and to be managed in a particular way. If a law increases or
diminishes the number of the trustees, they are not the persons which
the grantor agreed should be the managers of the fund. If it
appropriate the fund intended for the support of a particular charity,
to that of some other charity, or to an entirely different charity,
the grant is in effect set aside, and a new contract substitued in its
place; thus disappointing completely the intentions of the founder, by
changing the objects of his bounty. And can it be seriously contended,
that a law, which changes so materially the terms of a contract, does
not impair it? In short, does not every alteration of a contract,
however unimportant, even though it be manifestly for the interest of
the party objecting to it, impair its obligation? If the assent of all
the parties to be bound by a contract, be of its essence, how
[17 U.S. 518, 663]
is it possible, that a new contract, substituted for, or
engrafted on another, without such assent, should not violate the old
charter?
This course of reasoning, which appears to be perfectly manifest,
is not without authority to support it. Mr. Justice Blackstone lays it
down ( 2 Bl. Com. 37), that the same identical franchise, that has
been before granted to one, cannot be bestowed on another; and the
reason assigned is, that it would prejudice the former grant. In the
King v. Pasmore, 3 T. R. 246, Lord KENYON says, that an existing
corporation cannot have another charter obtruded upon it by the crown.
It may reject it, or accept the whole, or any part of the new charter.
The reason is obvious; a charter is a contract, to the validity of
which the consent of both parties is essential, and therefore, it
cannot be altered or added to without such consent.
But the case of Terrett v. Taylor, 9 Cranch 43, fully supports the
distinction above stated, between civil and private corporations, and
is entirely in point. It was decided in that case, that a private
corporation, created by the legislature, may lose its franchises by
misuser, or non- user, and may be resumed by the government, under a
judicial judgment of forfeiture. In respect to public corporations,
which exist only for public purposes, such as towns, cities, &c., the
legislature may, under proper limitations, change, modify, enlarge or
restrain them, securing, however, the property for the use of those
for whom, and at whose expense, it was purchased. But it is denied,
that it has power to repeal
[17 U.S. 518, 664] statutes creating
private corporations, or confirming to them property already acquired
under the faith of previous laws; and that it can, by such repeal,
vest the property of such corporations in the state, or dispose of the
same to such purposes as it may please, without the consent or default
of the corporators. Such a law, it is declared, would be repugnant
both to the spirit and the letter of the constitution of the United
States.
If these principles, before laid down, be correct, it cannot be
denied, that the obligations of, the charter to Dartmouth College are
impaired by the laws under consideration. The name of the corporation,
its constitution and government, and the objects of the founder, and
of the grantor of the charter, are totally changed. By the charter,
the property of this founder was vested in twelve trustees, and no
more, to be disposed of by them, or a majority, for the support of a
college, for the education and instruction of the Indians, and also of
English youth, and others. Under the late acts, the trustees and
visitors are different; and the property and franchises of the college
are transferred to different and new uses, not contemplated by the
founder. In short, it is most obvious, that the effect of these laws
is to abolish the old corporation, and to create a new one in its
stead. The laws of Virginia, referred to in the case of Terrett v.
Taylor, authorized the overseers of the poor to sell the glebes
belonging to the Protestant Episcopal Church, and to appropriate the
proceeds to other uses. The laws in question divest, the trustees of
Dartmouth College of the property vested in them
[17 U.S. 518, 665]
by the founder, and vest it in other trustees, for the support
of a different institution, called Dartmouth University. In what
respects do they differ? Would the difference have been greater in
principle, if the law had appropriated the funds of the college to the
making of turnpike roads, or to any other purpose of a public nature?
In all respects, in which the contract has been altered, without the
assent of the corporation, its obligations have been impaired; and the
degree can make no difference in the construction of the above
provision of the constitution.
It has been insisted, in the argument at the bar, that Dartmouth
College was a mere civil corporation, created for a public purpose,
the public being deeply interested in the education of its youth; and
that, consequently, the charter was as much under the control of the
government of New Hampshire, as if the corporation had concerned the
government of a town or city. But it has been shown, that the
authorities are all the other way. There is not a case to be found
which contradicts the doctrine laid down in the case of Philips v.
Bury, viz., that a college, founded by an individual, or individuals,
is a private charity, subject to the government and visitation of the
founder, and not to the unlimited control of the government.
It is objected, in this case, that Dr. Wheelock is not the founder
of Dartmouth College. Admit, he is not. How would this alter the case?
Neither the king, nor the province of New Hampshire was the founder;
and if the contributions made by the governor of New Hampshire, by
those persons who [17
U.S. 518, 666] granted lands for the college, in order to
induce its location in a particular part of the state, by the other
liberal contributors in England and America, bestow upon them claims
equal with Dr. Wheelock, still it would not alter the nature of the
corporation, and convert it into one for public government. It would
still be a private eleemosynary corporation, a private charity,
endowed by a number of persons, instead of a single individual. But
the fact is, that whoever may mediately have contributed to swell the
funds of this charity, they were bestowed at the solicitation of Dr.
Wheelock, and vested in persons appointed by him, for the use of a
charity, of which he was the immediate founder, and is so styled in
the charter.
Upon the whole, I am of opinion, that the above acts of New
Hampshire, not having received the assent of the corporate body of
Dartmouth College, are not binding on them, and, consequently, that
the judgment of the state court ought to be reserved.
JOHNSON, Justice, concurred, for the reasons stated by the Chief
Justice.
LIVINGSTON, Justice, concurred, for the reasons stated by the Chief
Justice, and Justices WASHINGTON and STORY.
STORY, Justice.
This is a cause of great importance, and as the very learned
discussions, as well here, as in the state court, show, of no
inconsiderable difficulty. There are two questions, to which the
appellate jurisdicdiction of this court properly applies.
[17 U.S. 518, 667]
1. Whether the original charter of Dartmouth College is a
contract, within the prohibitory clause of the constitution of the
United States, which declares, that no state shall pass any 'law
impairing the obligation of contracts?' 2. If so, whether the
legislative acts of New Hampshire of the 27th of June, and of the 18th
and 27th of December 1816, or any of them, impair the obligations of
that charter?
It will be necessary, however, before we proceed to discuss these
questions, to institute an inquiry into the nature, rights and duties
of aggregate corporations, at common law; that we may apply the
principles, drawn from this source, to the exposition of this charter,
which was granted emphatically with reference to that law.
An aggregate corporation, at common law, is a collection of
individuals, united into one collective body, under a special name,
and possessing certain immunities, privileges and capacities, in its
collective character, which do not belong to the natural persons
composing it. Among other things, it possesses the capacity of
perpetual succession, and of acting by the collected vote or will of
its component members, and of suing and being sued in all things
touching its corporate rights and duties. It is, in short, an
artificial person, existing in contemplation of law, and endowed with
certain powers and franchises which, though they must be exercised
through the medium of its natural members, are yet considered as
subsisting in the corporation itself, as distinctly as if it were a
real personage. Hence, such a corporation may sue and be sued by its
own members, and [17
U.S. 518, 668] may contract with them in the same manner,
as with any strangers. 1 Bl. Com. 469, 475; 1 Kyd on Corp. 13, 69,
189; 1 Wooddes. 471, &c. A great variety of these corporations exist,
in every country governed by the common law; in some of which, the
corporate existence is perpetuated by new elections, made from time to
time; and in others, by a continual accession of new members, without
any corporate act. Some of these corporations are, from the particular
purposes to which they are devoted, denominated spiritual, and some
lay; and the latter are again divided into civil and eleemosynary
corporations. It is unnecessary, in this place, to enter into any
examination of civil corporations. Eleemosynary corporations are such
as are constituted for the perpetual distribution of the free-alms and
bounty of the founder, in such manner as he has directed; and in this
class, are ranked hospitals for the relief of poor and impotent
persons, and colleges for the promotion of learning and piety, and the
support of persons engaged in literary pursuits. 1 Bl. Com. 469, 470,
471, 482. 1 Kyd on Corp. 25; 1 Wooddes. 474; Attorney-General v.
Whorwood, 1 Ves. 534; St. John's College v. Todington, 1 W. Bl. 84; s.
c. 1 Burr. 200; Philips v. Bury, 1 Ld. Raym. 5; S. C. 2 T. R. 346;
Porter's Case, 1 Co. 22 b, 23.
Another division of corporations is into public and private. Public
corporations are generally esteemed such as exist for public political
purposes only, such as towns, cities, parishes and counties; and in
many repects, they are so, although they involve some private
interests; but strictly speaking, public corporations
[17 U.S. 518, 669]
are such only as are founded by the government, for public
purposes, where the whole interests belong also to the government. If,
therefore, the foundation be private, though under the charter of the
government, the corporation is private, however extensive the uses may
be to which it is devoted, either by the bounty of the founder, or the
nature and objects of the institution. For instance, a bank created by
the government for its own uses, whose stock is exclusively owned by
the government, is, in the strictest sense, public corporation. So, an
hospital created and endowed by the government for general charity.
But a bank, whose stock is owned by private persons, is a private
corporation, although it is erected by the government, and its objects
and operations partake of a public nature. The same doctrine may be
affirmed of insurance, canal, bridge and turnpike companies. In all
these cases, the uses may, in a certain sense, be called public, but
the corporations are private; as much so, indeed, as if the franchises
were vested in a single person.
This reasoning applies in its full force to eleemosynary
corporations. An hospital, founded by a private benefactor, is, in
point of law, a private corporation, although dedicated by its charter
to general charity. So, a college, founded and endowed in the same
manner, although, being for the promotion of learning and piety, it
may extend its charity to scholars from every class in the community,
and thus acquire the character of a public institution.
This is the unequivocal doctrine of the authorities; and cannot be
[17 U.S. 518, 670]
shaken but by undermining the most solid foundations of the
common law. Philips v. Bury, 1 Ld. Raym. 5, 9; s. c. 2 T. R. 346.
It was, indeed, supposed at the argument, that if the uses of an
eleemosynary corporation be for general charity, this alone would
constitute it a public corporation. But the law is certainly not so.
To be sure, in a certain sense, every charity, which is extensive in
its reach, may be called a public charity, in contradistinction to a
charity embracing but a few definite objects. In this sense, the
language was unquestionably used by Lord HARDWICKE in the case cited
at the argument; Attorney-General v. Pearce, 2 Atk. 87; 1 Bac. Abr.
tit. Charitable Uses, E, 589; and in this sense, a private corporation
may well enough be denominated a public charity. So it would be, if
the endowment, instead of being vested in a corporation, were assigned
to a private trustee; yet, in such a case, no one would imagine, that
the trust ceased to be private, or the funds became public property.
That the mere act of incorporation will not change the charity from a
private to a public one, is most distinctly asserted in the
authorities. Lord HARDWICKE, in the case already alluded to, says,
'the charter of the crown cannot make a charity more or less public,
but only more permanent than it would otherwise be; but it is the
extensiveness which will constitute it a public one. A devise to the
poor of the parish is a public charity. Where testators leave it to
the discretion of a trustee to choose out the objects, though each
particular [17 U.S. 518,
671] object may be said to be private, yet in the
extensiveness of the benefit accruing from them, they may properly be
called public charities. A sum to be disposed of by A. B., and his
executors, at their discretion, among poor house-keepers, is of this
kind.' The charity, then, may, in this sense, be public, although it
may be administered by private trustees; and for the same reason, it
may thus be public, though administered by a private corporation. The
fact, then, that the charity is public, affords no proof that the
corporation is also public; and consequently, the argument, so far as
it is built on this foundation, falls to the ground. If, indeed, the
argument were correct, it would follow, that almost every hospital and
college would be a public corporation; a doctrine utterly
irreconcilable with the whole current of decisions since the time of
Lord COKE.
19
When, then, the argument assumes, that because the charity is
public, the corporation is public, it manifestly confounds the
popular, with the strictly legal, sense of the terms. And if it
stopped here, it would not be very material to correct the error. But
it is on this foundation, that a superstructure is erected, which is
to compel a surrender of the cause. When the corporation is said, at
the bar, to be public, it is not merely meant, that the whole
community may be the proper objects of the bounty, but that the
government have the sole right, as trustees of the public interests,
to regulate, control and direct the corporation, and its funds and its
franchises, at its own good will and pleasure. Now, such
[17 U.S. 518, 672]
an authority does not exist in the government, except where the
corporation, is in the strictest sense, public; that is, where its
whole interests and franchises are the exclusive property and domain
of the government itself. If it had been otherwise, courts of law
would have been spared many laborious adjudications in respect to
eleemosynary corporations, and the visitatorial powers over them, from
the time of Lord HOLT down to the present day. Rex v. Bury, 1 Ld. Raym.
5; s. c. Comb. 265; Holt 715; 1 Show. 360; 4 Mod. 106; Skin. 447, and
Ld. HOLT's opinion from his own MS., in 2 T. R. 346. Nay, more,
private trustees for charitable purposes would have been liable to
have the property confided to their care taken away from them, without
any assent or default on their part, and the administration submitted,
not to the control of law and equity, but to the arbitrary, discretion
of the government. Yet, who ever thought before, that the munificient
gifts of private donors for general charity became instantaneously the
property of the government; and that the trustees appointed by the
donors, whether corporate or unincorporated, might be compelled to
yield up their rights to whomsoever the government might appoint to
administer them? If we were to establish such a principle, it would
extinguish all future eleemosynary endowments; and we should find as
little of public policy, as we now find of law to sustain it.
An eleemosynary corporation, then, upon a private foundation, being
a private corporation, it is next to be considered, what is deemed a
foundation, [17 U.S.
518, 673] and who is the founder. This cannot be stated
with more brevity and exactness, than in the language of the elegant
commentator upon the laws of England: 'The founder of all corporations
(says Sir William Blackstone), in the strictest and original sense, is
the king alone, for he only can incorporate a society; and in civil
corporations, such as mayor, commonalty, &c., where there are no
possessions or endowments given to the body, there is no other founder
but the king; but in eleemysonary foundations, such as colleges and
hospitals, where there is an endowment of lands, the law distinguishes
and makes two species of foundation, the one fundatio incipiens, or
the incorporation, in which sense the king is the general founder of
all colleges and hospitals; the other fundatio perficiens, or the
dotation of it, in which sense, the first gift of the revenues is the
foundation, and he who gives them is, in the law, the founder; and it
is in this last sense, we generally call a man the founder of a
college or hospital.' 1 Bl. Com. 480; 10 Co. 33.
To all eleemosynary corporations, a visitatorial power attaches, as
a necessary incident; for these corporations being composed of
individuals, subject to human infirmities, are liable, as well as
private persons, to deviate from the end of their institution. The
law, therefore, has provided, that there shall somewhere exist a power
to visit, inquire into, and correct all irregularities and abuses in
such corporations, and to compel the original purposes of the charity
to be faithfully fulfilled. 1 Bl. Com. 480. The nature and extent of
this visitatorial power has been expounded
[17 U.S. 518, 674]
with admirable fulness and accuracy by Lord HOLT in one of his
most celebrated judgments. Phillips v. Bury, 1 Ld. Raym. 5; s. c. 2 T.
R. 346. And of common right, by the dotation, the founder and his
heirs are the legal visitors, unless the founder has appointed and
assigned another person to be visitor. For the founder may, if he
please, at the time of the endowment, part with his visitatorial
power, and the person to whom it is assigned will, in that case,
possess it in exclusion of the founder's heirs. 1 Bl. Com. 482. This
visitatorial power is, therefore, an hereditament founded in property,
and valuable, in intendment of law; and stands upon the maxim, that he
who gives his property, has a right to regulate it in future. It
includes also the legal right of patronage, for as Lord HOLT justly
observes, 'patronage and visitation are necessary consequents one upon
another.' No technical terms are necessary to assign or vest the
visitatorial power; it is sufficient if, from the nature of the duties
to be performed by particular persons, under the charter, it can be
inferred, that the founder meant to part with it in their favor; and
he may divide it among various persons, or subject it to any
modifications or control, by the fundamental statutes of the
corporation. But where the appointment is given in general terms, the
whole power vests in the appointee. Eden v. Foster, 2 P. Wms. 325;
Attorney-General v. Middleton, 2 Ves. 327; St. Johns College v.
Todington, 1 W. Bl. 84.; s. c. 2 Burr. 200; Attorney-General v. Clare
College, 3 Atk. 662; s. c. 1 Ves. 78. In the construction
[17 U.S. 518, 675]
of charters, too, it is a general rule, that if the objects of
the charity are incorporated, as for instance, the master and fellows
of a college, or the master and poor of a hospital, the visitatorial
power, in the absence of any special appointment, silently vests in
the founder and his heirs. But where trustees or governors are
incorporated to manage the charity, the visitatorial power is deemed
to belong to them in their corporate character. Philips v. Bury, 1 Ld.
Raym. 5; s. c. 2 T. R. 346; Green v. Rutherforth, 1 Ves. 472;
Attorney-General v. Middleton, 2 Ibid. 327; Case of Sutton Hospital,
Co. 23, 31.
When a private eleemosynary corporation is thus created, by the
charter of the crown, it is subject to no other control on the part of
the crown, than what is expressly or implicitly reserved by the
charter itself. Unless a power be reserved for this purpose, the crown
cannot, in virtue of its prerogative, without the consent of the
corporation, alter or amend the charter, or divest the corporation of
any of its franchises, or add to them, or add to, or diminish, the
number of the trustees, or remove any of the members, or change or
control the administration of the charity, or compel the corporation
to receive a new charter. This is the uniform language of the
authorities, and forms one of the most stubborn, and well settled
doctrines of the common law.
20
But an eleemosynary, like every other corporation, is subject to
the general law of the land. It may forfeit its corporate franchises,
by misuser or non-user
[17 U.S. 518, 676] of them. It is subject to the
controling authority of its legal visitor, who, unless restrained by
the terms of the charter, may amend and repeal its statutes, remove
its officers, correct abuses, and generally superintend the management
of the trusts. Where, indeed, the visitatorial power is vested in the
trustees of the charity, in virtue of their incorporation, there can
be no amotion of them from their corporate capacity. But they are not,
therefore, placed beyond the reach of the law. As managers of the
revenues of the corporation, they are subject to the general
superintending power of the court of chancery, not as itself
possessing a visitatorial power, or a right to control the charity,
but as possessing a general jurisdiction, in all cases of an abuse of
trust, to redress grievances and suppress frauds. 2 Fonbl. Eq., B. 2,
pt. 2, ch. 1, 1, note a; Coop. Eq. Pl. 292; 2 Kyd on Corp. 195; Green
v. Rutherforth, 1 Ves. 462; Attorney-General v. Foundling Hospital, 4
Bro. C. C. 165; s. c. 2 Ves. jr. 42; Eden v. Foster, 2 P. Wms. 325; 1
Wooddes. 476; Attorney- General v. Price, 3 Atk. 108; Attorney-General
v. Lock, 3 Ibid. 164; Attorney-General v. Dixie, 13 Ves. 519; Ex parte
Kirby Ravensworth Hospital, 15 Ibid. 304, 314; Attorney-General v.
Earl of Clarendon, 17 Ibid. 491, 499; Berkhamstead Free School, 2 Ves.
& B. 134; Attorney- General v. Corporation of Carmarthen, Cooper 30;
Mayor, &c., of Colchester v. Lowten, 1 Ves. & B. 226; Rex v. Watson, 2
T. R. 199; Attorney-General v. Utica Ins. Co., 2 Johns. Ch. 371;
Attorney-General v. Middleton, 2 Ves. 327. And where a corporation is
a mere trustee of a charity, a court of equity will go yet further;
and though it cannot appoint or remove a corporator, it will, yet, in
a case of [17 U.S. 518,
677] gross fraud, or abuse of trust, take away the trust
from the corporation, and vest it in other hands. Mayor, &c., of
Coventry v. Attorney-General, 7 Bro. P. C. 235; Attorney-General v.
Earl of Clarendon, 17 Ves. 491, 499.
Thus much it has been thought proper to premise respecting the
nature, rights, and duties of eleemosynary corporations, growing out
of the common law. We may now proceed to an examination of the
original charter of Dartmouth College.
It begins, by a recital, among other things, that the Rev. Eleazer
Wheelock, of Lebanon, in Connecticut, about the year 1754, at his own
expense, on his own estate, set on foot an Indian charity-school; and
by the assistance of other persons, educated a number of the children
of the Indians, and employed them as missionaries and school-masters
among the savage tribes; that the design became reputable among the
Indians, so that more desired the education of their children at the
school, than the contributions in the American colonies would support;
that the said Wheelock thought it expedient to endeavor to procure
contributions in England, and requested the Rev. Nathaniel Whitaker to
go to England, as his attorney, to solicit contribution, and also
solicited the Earl of Dartmouth and others, to receive the
contributions and become trustees thereof, which they cheerfully
agreed to, and he constituted them trustees accordingly, by a power of
attorney, and they testified their acceptance by a sealed instrument;
that the said
Wheelock also authorized the trustees to fix and determine
[17 U.S. 518, 678]
upon the place for the said school; and to enable them
understandingly to give the preference, laid before them, the several
offers of the governments in America, inviting the settlement of the
school among them; that a large number of the proprietors of lands, in
the western parts of New Hampshire, to aid the design, and considering
that the same school might be enlarged and improved to promote
learning among the English, and to supply the churches there with an
orthodox ministry, promised large tracts of land for the uses
aforesaid, provided the school should be settled in the western part
of said province; that the trustees, thereupon, gave a preference to
the western part of said province, lying on Connecticut river, as a
situation most convenient for said school: That the said Wheelock
further represented the necessity for a legal incorporation, in order
to the safety and well-being of said seminary, and its being capable
of the tenure and disposal of lands and bequests for the use of the
same; that in the infancy of said institution, certain gentlemen whom
he had already nominated in his last will (which he had transmitted to
the trustees in England), to be trustees in America, should be the
corporation now proposed; and lastly, that there were already large
contributions for said school in the hands of the trustees in England,
and further success might be expected; for which reason, the said
Wheelock desired they might be invested with all that power therein,
which could consist with their distance from the same. The charter,
after these recitals, declares, that the king, considering the
premises, and being willing to
[17 U.S. 518, 679] encourage the charitable
design, and that the best means of education might be established in
New Hampshire for the benefit thereof, does, of his special grace,
certain knowledge and mere motion, ordain and grant, that there be a
college erected in New Hampshire, by the name of Dartmouth College,
for the education and instruction of youth of the Indian tribes, and
also of English youth and others; that the trustees of said college
shall be a corporation for ever, by the name of the Trustees of
Dartmouth College: that the then governor of New Hampshire, the said
Wheelock, and ten other persons, specially named in the charter, shall
be trustees of the said college, and that the whole number of trustees
shall for ever thereafter consist of twelve, and no more; that the
said corporation shall have power to sue and to be sued by their
corporate name, and to acquire and hold for the use of the said
Dartmouth College, lands, tenements, hereditaments and franchises; to
receive, purchase and build any houses for the use of said college, in
such town in the western part of New Hampshire, as the trustees, or a
major part of them, shall, by a written instrument, agree on; and to
receive, accept and dispose of any lands, goods, chattels, rents,
gifts, legacies, &c., not exceeding the yearly value of 6000l. It
further declares, that the trustees, or a major part of them,
regularly convened (for which purpose seven shall form a quorum),
shall have authority to appoint and remove the professors, tutors and
other officers of the college, and to pay them, and also such
missionaries and school-masters as shall be employed by the trustees
for instructing the Indians, salaries and
[17 U.S. 518, 680]
allowances, as well as other corporate expenses, out of the
corporate funds. It further declares, that, the said trustees, as
often as one or more of the trustees shall die, or by removal or
otherwise, shall, according to their judgment, become unfit or
incapable to serve the interests of the college, shall have power to
elect and appoint other trustees in their stead, so that when the
whole number shall be complete of twelve trustees, eight shall be
resident freeholders of New Hampshire, and seven of the whole number,
laymen. It further declares, that the trustees shall have power, from
time to time, to make and establish rules, ordinances and laws, for
the government of the college, not repugnant to the laws of the land,
and to confer collegiate degrees. It further appoints the said
Wheelock, whom it denominates 'the founder of the college,' to be
president of the college, with authority to appoint his successor, who
shall be president, until disapproved of by the trustees. It then
concludes with a direction, that it shall be the duty of the president
to transmit to the trustees in England, so long as they should
perpetuate their board, and as there should be Indian natives
remaining to be proper objects of the bounty, an annual account of all
the disbursements from the donations in England, and of the general
plans and prosperity of the institution.
Such are the most material clauses of the charter. It is
observable, in the first place, that no endowment whatever is given by
the crown; and no power is reserved to the crown or government in any
manner to alter, amend or control the charter. It is also apparent,
[17 U.S. 518, 681]
from the very terms of the charter, that Dr. Wheelock is
recognised as the founder of the college, and that the charter is
granted upon his application, and that the trustees were in fact
nominated by him. In the next place, it is apparent, that the objects
of the institution are purely charitable, for the distribution of the
private contributions of private benefactors. The charity was, in the
sense already explained, a public charity, that is, for the general
promotion of learning and piety; but in this respect, it was just as
much public before, as after the incorporation. The only effect of the
charter was to give permanency to the design, by enlarging the sphere
of its action, and granting a perpetuity of corporate powers and
franchises, the better to secure the administration of the benevolent
donations. As founder, too, Dr. Wheelock and his heirs would have been
completely clothed with the visitatorial power: but the whole
government and control, as well of the officers as of the revenues of
the college, being with his consent assigned to the trustees in then
corporate character, the visitatorial power, which is included in this
authority, rightfully devolved on the trustees. As managers of the
property and revenues of the corporation, they were amenable to the
jurisdiction of the judicial tribunals of the state; but as visitors,
their discretion was limited only by the charter, and liable to no
supervision or control, at least, unless it was fraudulently
misapplied.
From this summary examination it follows, that Dartmouth College
was, under its original charter, a private eleemosynary corporation,
endowed with [17 U.S.
518, 682] the usual privileges and franchises of such
corporations, and among others, with a legal perpetuity, and was
exclusively under the government and control of twelve trustees, who
were to be elected and appointed, from time to time, by the existing
board, as vacancies or removals should occur.
We are now led to the consideration of the first question in the
cause, whether this charter is a contract, within the clause of the
constitution prohibiting the states from passing any law impairing the
obligation of contracts. In the case of Fletcher v. Peck, 6 Cranch 87,
136, this court laid down its exposition of the word 'contract' in
this clause, in the following manner: 'A contract is a compact between
two or more persons, and is either executory or executed. An executory
contract is one, in which a party binds himself to do, or not to do, a
particular thing. A contract executed is one in which the object of
the contract is performed; and this, says Blackstone, differs in
nothing from a grant. A contract executed, as well as one that is
executory, contains obligations binding on the parties. A grant, in
its own nature, amounts to an extinguishment of the right of the
grantor, and implies a contract not to re-assert that right. A party
is always estopped by his own grant.' This language is perfectly
unambiguous, and was used in reference to a grant of land by the
governor of a state, under a legislative act. It determines, in the
most unequivocal manner, that the grant of a state is a contract,
within the clause of [17
U.S. 518, 683] the constitution now in question, and that
it implies a contract not to re- assume the rights granted; a
fortiori, the doctrine applies to a charter or grant from the king.
But it is objected, that the charter of Dartmouth College is not a
contract contemplated by the constitution, because no valuable
consideration passed to the king, as an equivalent for the grant, it
purporting to be granted ex mcro motu, and further, that no contracts,
merely voluntary, are within the prohibitory clause. It must be
admitted, that mere executory contracts cannot be enforced at law,
unless there be a valuable consideration to sustain them; and the
constitution certainly did not mean to create any new obligations, or
give any new efficacy to nude pacts. But it must, on the other hand,
be also admitted, that the constitution did intend to preserve all the
obligatory force of contracts, which they have by the general
principles of law. Now, when a contract has once passed, bona fide,
into grant, neither the king, nor any private person, who may be the
grantor, can recall the grant of the property, although the conveyance
may have been purely voluntary. A gift, completely executed, is
irrevocable. The property conveyed by it becomes, as against the
donor, the absolute property of the donee; and no subsequent change of
intention of the donor can change the rights of the donee. 2 Bl. Com.
441; Jenk. Cent. 104. And a gift by the crown of incorporeal
hereditaments, such as corporate franchises, when executed, comes
completely [17 U.S. 518,
684] within the principle, and is, in the strictest sense
of the terms, a grant. 2 Bl. Com. 317, 346; Shep. Touch. ch. 12, p.
227. Was it ever imagined, that land, voluntarily granted to any
person by a state, was liable to be resumed, at its own good pleasure?
Such a pretension would, under any circumstances, be truly alarming;
but in a country like ours, where thousands of land-titles had their
origin in gratuitous grants of the states, it would go far to shake
the foundations of the best settled estates. And a grant of franchises
is not, in point of principle, distinguishable from a grant of any
other property. If, therefore, this charter were a pure donation, when
the grant was complete, and accepted by the grantees, it involved a
contract, that the grantees should hold, and the grantor should not
re-assume the grant, as much as if it had been founded on the most
valuable consideration.
But it is not admitted, that this charter was not granted for what
the law deems a valuable consideration. For this purpose, it matters
not how trifling the consideration may be; a pepper-corn is as good as
a thousand dollars. Nor is it necessary, that the consideration should
be a benefit to the grantor. It is sufficient, if it import damage or
loss, or forbearance of benefit, or any act done or to be done, on the
part of the grantee. It is unnecessary to state cases; they are
familiar to the mind of every lawyer. Pillans v. Van Mierop, per
Yates, J., 3 Burr. 1663; Forth v. Stanton, 1 Saund. 211, Williams'
note 2, and the cases there cited.
With these principles in view, let us now examine
[17 U.S. 518, 685]
the terms of this charter. It purports, indeed, on its face, to
be granted 'of the special grace, certain knowledge and mere motion'
of the king; but these words were introduced for a very different
purpose from that now contended for. It is a general rule of the
common law (the reverse of that applied in ordinary cases), that a
grant of the king, at the suit of the grantee, is to be construed most
beneficially for the king, and most strictly against the grantee.
Wherefore, it is usual to insert in the king's grants, a clause, that
they are made, not at the suit of the grantee, but of the special
grace, certain knowledge and mere motion of the king; and then they
receive a more liberal construction. This is the true object of the
clause in question, as we are informed by the most accurate
authorities. 2 Bl. Com. 347; Finch's Law 100; 10 Rep. 112; 1 Shep.
Abr. 136; Bull. N. P. 136. But the charter also, on its face, purports
to be granted, in consideration of the premises in the introductory
recitals.
Now, among these recitals, it appears, that Dr. Wheelock had
founded a charity-school at his own expense, on his own estate; that
divers contributions had been made in the colonies, by others, for its
support; that new contributions had been made, and were making, in
England, for this purpose, and were in the hands of trustees appointed
by Dr. Wheelock to act in his behalf; that Dr. Wheelock had consented
to have the school established at such other place as the trustees
should select; that offers had been made by several of the governments
in America, inviting the
[17 U.S. 518, 686] establishment of the
school among them; that offers of land had also been made by divers
proprietors of lands in the western parts of New Hampshire, if the
school should be established there; that the trustees had finally
consented to establish it in New Hampshire; and that Dr. Wheelock
represented that, to effectuate the purposes of all parties, an
incorporation was necessary. Can it be truly said, that these recitals
contain no legal consideration of benefit to the crown, or of
forbearance of benefit on the other side? Is there not an implied
contract by Dr. Wheelock, if a charter is granted, that the school
shall be removed from his estate to New Hampshire? and that he will
relinquish all his control over the funds collected, and to be
collected, in England, under his auspices, and subject to his
authority? that he will yield up the management of his charity-school
to the trustees of the college? that he will relinquish all the offers
made by other American governments, and devote his patronage to this
institution? It will scarcely be denied, that he gave up the right any
longer to maintain the charity-school already established on his own
estate; and that the funds collected for its use, and subject to his
management, were yielded up by him, as an endowment of the college.
The very language of the charter supposes him to be the legal owner of
the funds of the charity-school, and in virtue of this endowment,
declares him the founder of the college. It matters not, whether the
funds were great or small; Dr. Wheelock had procured them, by his own
influence, and they were under his control, to be applied to the
[17 U.S. 518, 687]
support of his charity-school; and when he relinquished this
control, he relinquished a right founded in property acquired by his
labors. Besides, Dr. Wheelock impliedly agreed to devote his future
services to the college, when erected, by becoming president thereof,
at a period when sacrifices must necessarily be made to accomplish the
great design in view. If, indeed, a pepper-corn be, in the eye of the
law, of sufficient value to found a contract, as upon a valuable
consideration, are these implied agreements, and these relinquishments
of right and benefit, to be deemed wholly worthless? It has never been
doubted, that an agreement not to exercise a trade in a particular
place was a sufficient consideration to sustain a contract for the
payment of money; a fortiori, the relinquishment of property which a
person holds, or controls the use of, as a trust, is a sufficient
consideration; for it is parting with a legal right. Even a right of
patronage (jus patronatus) is of great value in intendment of law.
Nobody doubts, that an advowson is a valuable hereditament; and yet,
in fact, it is but a mere trust, or right of nomination to a benefice,
which cannot be legally sold to the intended incumbent. 2 Bl. Com. 22,
Christian's note. In respect to Dr. Wheelock, then, if a consideration
be necessary to support the charter as a contract, it is to be found
in the implied stipulations on his part in the charter itself. He
relinquished valuable rights, and undertook a laborious office, in
consideration of the grant of the incorporation.
[17 U.S. 518, 688]
This is not all. A charter may be granted upon an executory, as
well as an executed or present consideration. When it is granted to
persons who have not made application for it, until their acceptance
thereof, the grant is yet in fieri. Upon the acceptance, there is an
implied contract on the part of the grantees, in consideration of the
charter, that they will perform the duties, and exercise the
authorities conferred by it. This was the doctrine asserted by the
late learned Mr. Justice BULLER, in a modern case. Rex v. Pasmore, 3
T. R. 199, 239, 246. He there said, 'I do not know how to reason on
this point better than in the manner urged by one of the relator's
counsel, who considered the grant of incorporation to be a compact
between the crown, and a certain number of the subjects, the latter of
whom undertake, in consideration of the privileges which are bestowed,
to exert themselves for the good government of the place,' (i. e. ,
the place incorporated). It will not be pretended, that if a charter
be granted for a bank, and the stockholders pay in their own funds,
the charter is to be deemed a grant, without consideration, and
therefore, revocable at the pleasure of the grantor. Yet, here, the
funds are to be managed, and the services performed exclusively for
the use and benefit of the stockholders themselves. And where the
grantees are mere trustees to perform services, without reward,
exclusively for the benefit of others, for public charity, can it be
reasonably argued, that these services are less valuable to the
government, than if performed for the private emolument of
[17 U.S. 518, 689]
the trustees themselves? In respect then to the trustees also,
there was a valuable consideration for the charter, the consideration
of services agreed to be rendered by them, in execution of a charity,
from which they could receive no private remuneration.
There is yet another view of this part of the case, which deserves
the most weighty consideration. The corporation was expressly created
for the purpose of distributing in perpetuity the charitable donations
of private benefactors. By the terms of the charter, the trustees, and
their successors, in their corporate capacity, were to receive, hold
and exclusively manage all the funds so contributed. The crown, then,
upon the face of the charter, pledged its faith that the donations of
private benefactors should be perpetually devoted to their original
purposes, without any interference on its own part, and should be for
ever administered by the trustees of the corporation, unless its
corporate franchises should be taken away by due process of law. From
the very nature of the case, therefore, there was an implied contract
on the part of the crown, with every benefactor, that if he would give
his money, it should be deemed a charity protected by the charter, and
be administered by the corporation, according to the general law of
the land. As, soon, then, as a donation was made to the corporation,
there was an implied contract, springing up, and founded on a valuable
consideration, that the crown would not revoke or alter the charter,
or change its administration, without the consent of the corporation.
There was also an implied contract between the corporation itself, and
every benefactor, [17
U.S. 518, 690] upon a like consideration, that it would
administer his bounty according to the terms, and for the objects
stipulated in the charter.
In every view of the case, if a consideration were necessary (which
I utterly deny) to make the charter a valid contract, a valuable
consideration did exist, as to the founder, the trustees, and the
benefactors. And upon the soundest legal principles, the charter may
be properly deemed, according to the various aspects in which it is
viewed, as a several contract with each of these parties, in virtue of
the foundation, or the endowment of the college, or the acceptance of
the charter, or the donations to the charity.
And here we might pause: but there is yet remaining another view of
the subject, which cannot consistently be passed over without notice.
It seems to be assumed by the argument of the defendant's counsel,
that there is no contract whatsoever, in virtue of the charter,
between the crown and the corporation itself. But it deserves
consideration, whether this assumption can be sustained upon a solid
foundation.
If this had been a new charter, granted to an existing corporation,
or a grant of lands to an existing corporation, there could not have
been a doubt, that the grant would have been an executed contract with
the corporation; as much so, as if it had been to any private person.
But it is supposed, that as this corporation was not then in
existence, but was created and its franchises bestowed, uno flatu, the
charter cannot be construed a contract, because there was no person in
rerum naturce, with whom it might be made.
Is this, however, a just and legal view of the
[17 U.S. 518, 691]
subject? If the corporation had no existence, so as to become a
contracting party, neither had it, for the purpose of receiving a
grant of the franchises. The truth is, that there may be a priority of
operation of things in the same grant; and the law distinguishes and
gives such priority, wherever it is necessary to effectuate the
objects of the grant. Case of Sutton Hospital, 10 Co. 23; Buckland v.
Fowcher, cited, Ibid. 27-8, and recognised in Attorney-General v.
Bowyer, 3 Ves. Jr. 714, 726-7; S. P. Highmore on Mort. 200, &c. From
the nature of things, the artificial person called a corporation, must
be created, before it can be capable of taking anything. When,
therefore, a charter is granted, and it brings the corporation into
existence, without any act of the natural persons who compose it, and
gives such corporation any privileges, franchises or property, the law
deems the corporation to be first brought into existence, and then
clothes it with the granted liberties and property. When, on the other
hand, the corporation is to be brought into existence, by some future
acts of the corporators, the franchises remain in abeyance, until such
acts are done, and when the corporation is brought into life, the
franchises instantaneously attach to it. There may be, in intendment
of law, a priority of time, even in an instant, for this purpose.
Ibid. And if the corporation have an existence, before the grant of
its other franchises attaches, what more difficulty is there in
deeming the grant of these franchises a contract with it, than if
granted by another instrument, at a subsequent period?
It behooves those also, who hold, that a grant to a corporation,
not then in existence, is incapable
[17 U.S. 518, 692] of being deemed a
contract, on that account, to consider, whether they do not, at the
same time, establish, that the grant itself is a nullity, for
precisely the same reason. Yet such a doctrine would strike us all, as
pregnant with absurdity, since it would prove that an act of
incorporation could never confer any authorities, or rights or
property on the corporation it created. It may be admitted, that two
parties are necessary to form a perfect contract; but it is denied,
that it is necessary, that the assent of both parties must be at the
same time. If the legislature were voluntarily to grant land in fee,
to the first child of A., to be hereafter born; as soon as such child
should be born, the estate would vest in it. Would it be contended,
that such grant, when it took effect, was revocable, and not an
executed contract, upon the acceptance of the estate? The same
question might be asked, in a case of a gratuitous grant by the king,
or the legislature, to A. for life, and afterwards, to the heirs of
B., who is then living. Take the case of a bank, incorporated for a
limited period, upon the express condition that it shall pay out of
its corporate funds, a certain sum, as the consideration for the
charter, and after the corporation is organized, a payment duly made
of the sum, out of the corporate funds; will it be contended, that
there is not a subsisting contract between the government and the
corporation, by the matters thus arising ex post facto, that the
charter shall not be revoked, during the stipulated period? Suppose,
an act declaring that all persons, who should thereafter pay into the
public treasury a stipulated sum, should be tenants in common of
certain [17 U.S. 518,
693] lands belonging to the state, in certain
proportions; if a person, afterwards born, pays the stipulated sum
into the treasury, is it less a contract with him, than it would be
with a person in esse at the time the act passed? We must admit, that
there may be future springing contracts, in respect to persons not now
in esse, or we shall involve ourselves in inextricable difficulties.
And if there may be, in respect to natural persons, why not also in
respect to artificial persons, created by the law, for the very
purpose of being clothed with corporate powers? I am unable to
distinguish between the case of a grant of land or of franchises to an
existing corporation, and a like grant to a corporation brought into
life for the very purpose of receiving the grant. As soon as it is in
esse, and the franchises and property become vested and executed in
it, the grant is just as much an executed contract, as if its prior
existence had been established for a century.
Supposing, however, that in either of the views which have been
suggested, the charter of Dartmouth College is to be deemed a
contract, we are yet met with several objections of another nature. It
is, in the first place, contended, that it is not a contract, within
the prohibitory clause of the constitution, because that clause was
never intended to apply to mere contracts of civil institution, such
as the contract of marriage, or to grants of power to state officers,
or to contracts relative to their offices, or to grants of trust to be
exercised for purposes merely public, where the grantees take no
beneficial interest.
It is admitted, that the state legislatures have
[17 U.S. 518, 694]
power to enlarge, repeal and limit the authorities of public
officers, in their official capacities, in all cases, where the
constitutions of the states respectively do not prohibit them; and
this, among others, for the very reason, that there is no express or
implied contract, that they shall always, during their continuance in
office, exercise such authorities; they are to exercise them only
during the good pleasure of the legislature. But when the legislature
makes a contract with a public officer, as in the case of a stipulated
salary for his services, during a limited period, this, during the
limited period, is just as much a contract, within the purview of the
constitutional prohibition, as a like contract would be between two
private citizens. Will it be contended, that the legislature of a
state can diminish the salary of a judge, holding his office during
good behavior? Such an authority has never yet been asserted, to our
knowledge. It may also be admitted, that corporations for mere public
government, such as towns, cities and counties, may in many respects
be subject to legislative control. But it will hardly be contended,
that even in respect to such corporations, the legislative power is so
transcendent, that it may at its will take away the private property
of the corporation, or change the uses of its private funds, acquired
under the public faith. Can the legislature confiscate to its own use
the private funds which a municipal corporation holds under its
charter, without any default or consent of the corporators? If a
municipal corporation be capable of holding devises and legacies to
charitable uses (as may municipal corporations
[17 U.S. 518, 695]
are), does the legislature, under our forms of limited
government, possess the authority to seize upon those funds, and
appropriate them to other uses, at its own arbitrary pleasure, against
the will of the donors and donees? From the very nature of our
governments, the public faith is pledged the other way; and that
pledge constitutes a valid compact; and that compact is subject only
to judicial inquiry, construction and abrogation. This court have
already had occasion, in other causes, to express their opinion on
this subject; and there is not the slightest inclination to retract
it. Terrett v. Taylor, 9 Cranch 43; Town of Pawlet v. Clark, Ibid.
292.
As to the case of the contract of marriage, which the argument
supposes not to be within the reach of the prohibitory clause, because
it is matter of civil institution, I profess not to feel the weight of
the reason assigned for the exception. In a legal sense, all
contracts, recognised as valid in any country, may be properly said to
be matters of civil institution, since they obtain their obligation
and construction jure loci contractus. Titles to land, constituting
part of the public domain, acquired by grants under the provisions of
existing laws by private persons, are certainly contracts of civil
institution. Yet no one ever supposed, that when acquired bona fide,
they were not beyond the reach of legislative revocation. And so,
certainly, is the established doctrine of this court. Ibid. A general
law, regulating divorces from the contract of marriage, like a law
regulating [17 U.S. 518,
696] remedies in other cases of breaches of contracts, is
not necessarily a law impairing the obligation of such a contract.
21 It may be the only effectual mode of enforcing the obligations
of the contract on both sides. A law punishing a breach of a contract,
by imposing a forfeiture of the rights acquired under it, or
dissolving it, because the mutual obligations were no longer observed,
is, in no correct sense, a law impairing the obligations of the
contract. Could a law, compelling a specific performance, by giving a
new remedy, be justly deemed an excess of legislative power? Thus far
the contract of marriage has been considered with reference to general
laws regulating divorces upon breaches of that contract. But if the
argument means to assert, that the legislative power to dissolve such
a contract, without such a breach on either side, against the wishes
of the parties, and without any judicial inquiry to ascertain a
breach, I certainly am not prepared to admit such a power, or that its
exercise would not entrench upon the prohibition of the constitution.
If, under the faith of existing laws, a contract of marriage be duly
solemnized, or a marriage settlement be made (and marriage is always
in law a valuable consideration for a contract), it is not easy to
perceive, why a dissolution of its obligations, without any default or
assent of the parties, may not as well fall within the prohibition, as
any other contract for a valuable consideration. A man has just as
good a right to his wife, as to the property acquired under a marriage
[17 U.S. 518, 697]
contract.
He has a legal right to her society and her fortune; and to divest
such right, without his default, and against his will, would be as
flagrant a violation of the principles of justice, as the confiscation
of his own estate. I leave this case, however, to be settled, when it
shall arise. I have gone into it, because it was urged with great
earnestness upon us, and required a reply. It is sufficient now to
say, that as at present advised, the argument derived from this
source, does not press my mind with any new and insurmountable
difficulty.
In respect also to grants and contracts, it would be far too narrow
a construction of the constitution, to limit the prohibitory clause to
such only where the parties take for their own private benefit. A
grant to a private trustee, for the benefit of a particular cestui que
trust, or for any special, private or public charity, cannot be the
less a contract, because the trustee takes nothing for his own
benefit. A grant of the next presentation to a church is still a
contract, although it limit the grantee to a mere right of nomination
or patronage. 2 Bl. Com. 21. The fallacy of the argument consists, in
assuming the very ground in controversy. It is not admitted, that a
contract with a trustee is, in its own nature, revocable, whether it
be for special or general purposes, for public charity or particular
beneficence. A private donation, vested in a trustee, for objects of a
general nature, does not thereby become a public trust, which the
government may, at its pleasure, take from the trustee, and administer
[17 U.S. 518, 698]
in its own way. The truth is, that the government has no power
to revoke a grant, even of its own funds, when given to a private
person, or a corporation, for special uses It cannot recall its own
endowments, granted to any hospital or college, or city or town, for
the use of such corporations. The only authority remaining to the
government is judicial, to ascertain the validity of the grant, to
enforce its proper uses, to suppress frauds, and, if the uses are
charitable, to secure their regular administration, through the means
of equitable tribunals, in cases where there would otherwise be a
failure of justice.
Another objection growing out of, and connected with that which we
have been considering, is, that no grants are within the
constitutional prohibition, except such as respect property in the
strict sense of the term; that is to say, beneficial interests in
lands, tenements and hereditaments, &c., which may be sold by the
grantees, for their own benefit: and that grants of franchises,
immunities and authorities not valuable to the parties, as property,
are excluded from its purview. No authority has been cited to sustain
this distinction, and no reason is perceived to justify its adoption.
There are many rights, franchises and authorities, which are valuable
in contemplation of law, where no beneficial interest can accrue to
the possessor. A grant of the next presentation to a church, limited
to the grantee alone, has been already mentioned. A power of
appointment, reserved in a marriage settlement, either to a party or a
stranger, to appoint uses in favor of third persons, without
compensation, is another instance.
[17 U.S. 518, 699] A grant of lands to a
trustee, to raise portions or pay debts, is, in law, a valuable grant,
and conveys a legal estate. Even a power, given by will, to executors,
to sell an estate for payment of debts is, by the better opinions and
authority, coupled with a trust, and capable of survivorship. Co. Litt.
113 a, Harg. & Butler's note 2; Sugden on Powers 140; Jackson v.
Jansen, 6 Johns. 73; Franklin v. Osgood, 2 Johns. Cas. 1; S. C. 14
Johns. 527; Zebach v. Smith, 3 Binn. 69; Lessee of Moody v. Vandyke, 4
Ibid. 7, 31; Attorney-General v. Gley, 1 Atk. 356; 1 Bac. Abr. 586 (Gwillim's
edit .). Many dignities and offices, existing at common law, are
merely honorary, and without profit, and sometimes are onerous. Yet a
grant of them has never been supposed the less a contract on that
account. In respect to franchises, whether corporate or not, which
include a pernancy of profits, such as a right of fishery, or to hold
a ferry, a market or a fair, or to erect a turnpike, bank or bridge,
there is no pretence to say, that grants of them are not within the
constitution. Yet they may, in point of fact, be of no exchangeable
value to the owners. They may be worthless in the market. The truth,
however, is, that all incorporeal hereditaments, whether they be
immunities, dignities, offices or franchises, or other rights, are
deemed valuable in law. The owners have a legal estate and property in
them, and legal remedies to support and recover them, in case of any
injury, obstruction or disseisin of them. Whenever they are the
subjects of a contract or grant, they are just as much within the
reach of the constitution as any other grant.
[17 U.S. 518, 700]
Nor is there any solid reason why a contract for the exercise
of a mere authority should not be just as much guarded, as a contract
for the use and dominion of property. Mere naked powers, which are to
be exercised for the exclusive benefit of the grantor, are revocable
by him, for that very reason. But it is otherwise, where a power is to
be exercised in aid of a right vested in the grantee. We all know,
that a power of attorney, forming a part of a security upon the
assignment of a chose in action, is not revocable by the grantor. For
it then sounds in contract, and is coupled with an interest. Walsh v.
Whitcomb, 2 Esp. 565; Bergen v. Bennett, 1 Caines' Cas. 1, 15; Raymond
v. Squire, 11 Johns. 47. So, if an estate be conveyed in trust for the
grantor, the estate is irrevocable in the grantee, although he can
take no beneficial interest for himself. Many of the best settled
estates stand upon conveyances of this nature; and there can be no
doubt, that such grants are contracts within the prohibition in
question.
In respect to corporate franchises, they are, properly speaking,
legal estates, vested in the corporation itself, as soon as it is in
esse. They are not mere naked powers, granted to the corporation; but
powers coupled with an interest. The property of the corporation rests
upon the possession of its franchises; and whatever may be thought, as
to the corporators, it cannot be denied, that the corporation itself
has a legal interest in them. It may sue and be sued for them. Nay,
more, this very right is one of its ordinary
[17 U.S. 518, 701]
franchises. 'It is likewise a franchise,' says Mr. Justice
Blackstone, 'for a number of persons to be incorporated and subsist as
a body politic, with power to maintain perpetual succession, and do
other corporate acts; and each individual member of such corporation
is also said to have a franchise or freedom.' 2 Bl. Com. 37; 1 Kyd on
Corp. 14, 16. In order to get rid of the legal difficulty of these
franchises being considered as valuable hereditaments or property, the
counsel for the defendant are driven to contend, that the corporators
or trustees are mere agents of the corporation, in whom no beneficial
interest subsists; and so nothing but a naked power is touched, by
removing them from the trust; and then to hold the corporation itself
a mere ideal being, capable indeed of holding property or franchises,
but having no interest in them which can be the subject of contract.
Neither of these positions is admissible. The former has been already
sufficiently considered, and the latter may be disposed of in a few
words. The corporators are not mere agents, but have vested rights, in
their character, as corporators. The right to be a freeman of a
corporation, is a valuable temporal right. It is a right of voting and
acting in the corporate concerns, which the law recognises and
enforces, and for a violation of which it provides a remedy. It is
founded on the same basis as the right of voting in public elections;
it is as sacred a right; and whatever might have been the prevalence
of former doubts, since the time of Lord HOLT, such a right has always
been deemed a valuable franchise or privilege. Ashby v. White, 2 Ld.
Raym. 938; 1 Kyd on Corp. 16.
[17 U.S. 518, 702] This reasoning, which
has been thus far urged, applies with full force to the case of
Dartmouth College. The franchises granted by the charter were vested
in the trustees, in their corporate character. The lands and other
property, subsequently acquired, were held by them in the same manner.
They were the private demesnes of the corporation, held by it, not, as
the argument supposes, for the use and benefit of the people of New
Hampshire, but, as the charter itself declares, 'for the use of
Dartmouth College.' There were not, and in the nature of things, could
not be, any other cestui que use, entitled to claim those funds. They
were, indeed, to be devoted to the promotion of piety and learning,
not at large, but in that college and the establishments connected
with it: and the mode in which the charity was to be applied, and the
objects of it, were left solely to the trustees, who were the legal
governors and administrators of it. No particular person in New
Hampshire possessed a vested right in the bounty; nor could he force
himself upon the trustees as a proper object. The legislature itself
could not deprive the trustees of the corporate funds, nor annul their
discretion in the application of them, nor distribute them among its
its own favorites. Could the legislature of New Hampshire have seized
the land given by the state of Vermont to the corporation, and
appropriated it to uses distinct from those intended by the charity,
against the will of the trustees? This question cannot be answered in
the affirmative, until it is established that the legislature may
lawfully take the property of A. and give it to B.; and if it
[17 U.S. 518, 703]
could not take away or restrain the corporate funds, upon what
pretence can it take away or restrain the corporate franchises?
Without the franchises, the funds could not be used for corporate
purposes; but without the funds, the possession of the franchises
might still be of inestimable value to the college, and to the cause
of religion and learning.
Thus far, the rights of the corporation itself, in respect to its
property and franchises, have been more immediately considered. But
there are other rights and privileges, belonging to the trustees,
collectively and severally, which are deserving of notice. They are
intrusted with the exclusive power to manage the funds, to choose the
officers, and to regulate the corporate concerns, according to their
own discretion. The jus patronatus is vested in them. The visitatorial
power, in its most enlarged extent, also belongs to them. When this
power devolves upon the founder of a charity, it is an hereditament,
descendible in perpetuity to his heirs, and in default of heirs, it
escheats to the government. Rex v. St. Catherine's Hall, 4 T. R. 233.
It is a valuable right, founded in property, as much so as the right
of patronage in any other case. It is a right which partakes of a
judicial nature. May not the founder as justly contract for the
possession of this right, in return for his endowment, as for any
other equivalent? and if, instead of holding it as an hereditament, he
assigns it in perpetuity to the trustees of the corporation, is it
less a valuable hereditament in their hands? The right is not merely a
collective right in all the trustees;
[17 U.S. 518, 704] each of them also has a
franchise in it. Lord HOLT says, 'it is agreeable to reason, and the
rules of law, that a franchise should be vested in the corporation
aggregate, and yet the benefit redound to the particular members, and
be enjoyed by them in their private capacities. Where the privilege of
election is used by particular persons, it is a particular right
vested in each particular man.' Ashby v. White, 2 Ld. Raym. 938, 952;
Attorney-General v. Dixie, 13 Ves. 519. Each of the trustees had a
right to vote in all elections. If obstructed in the exercise of it,
the law furnished him with an adequate recompense in damages. If
ousted unlawfully from his office, the law would, by a mandamus,
compel a restoration.
It is attempted, however, to establish that the trustees have no
interest in the corporate franchises, because it is said, that they
may be witnesses, in a suit brought against the corporation. The case
cited at the bar certainly goes the length of asserting, that in a
suit brought against a charitable corporation, for a recompence for
services performed for the corporation, the governors, constituting
the corporation (but whether intrusted with its funds or not by the
act of incorporation does not appear), are competent witnesses against
the plaintiff. Weller v. Governor of the Foundling Hospital, 1 Peake's
Cas. 153. But assuming this case to have been rightly decided (as to
which, upon the authorities, there may be room to doubt), the
corporators [17 U.S.
518, 705] being technically parties to the record
(Attorney-General v. City of London, 3 Bro. C. C. 171; s. c. 1 Ves.
jr. 243; Burton v. Hinde, 5 T. R. 174; Nason v. Thatcher, 7 Mass. 398;
Phillips on Evid. 42, 52, 57 and notes; 1 Kyd on Corp. 304, &c.;
Highmore on Mortm. 514), it does not establish, that in a suit for the
corporate property vested in the trustees in their corporate capacity,
the trustees are competent witnesses. At all events, it does not
establish, that in a suit for the corporate franchises to be exercised
by the trustees, or to enforce their visitatorial power, the trustees
would be competent witnesses. On a mandamus to restore a trustee to
his corporate or visitatorial power, it will not be contended, that
the trustee is himself a competent witness, to establish his own
rights, or the corporate rights. Yet, why not, if the law deems that a
trustee has no interest in the franchise? The test of interest assumed
in the argument proves nothing in this case. It is not enough, to
establish, that the trustees are sometimes competent witnesses; it is
necessary to show, that they are always so, in respect to the
corporate franchises, and their own. It will not be pretended, that in
a suit for damages for obstruction in the exercise of his official
powers, a trustee is a disinterested witness. Such an obstruction is
not a damnum absque injurid. Each trustee has a vested right, and
legal interest, in his office, and it cannot be divested but by due
course of law. The illustration, therefore, lends no new force to the
argument, for it does not establish, that when their own rights
[17 U.S. 518, 706]
are in controversy, the trustees have no legal interest in
their offices.
The principal objections having been thus answered, satisfactorily,
at least, to my own mind, it remains only to declare, that my opinion,
after the most mature deliberation is, that the charter of Dartmouth
College, granted in 1969, is a contract within the purview of the
constitutional prohibition.
I might now proceed to the discussion of the second question; but
it is necessary previously to dispose of a doctrine which has been
very seriously urged at the bar, viz., that the charter of Dartmouth
College was dissolved at the revolution, and is, therefore, a mere
nullity. A case before Lord THURLOW has been cited in support of this
doctrine. Attorney- General v. City of London, 3 Bro. C. C. 171; S. C.
1 Ves. jr. 243. The principal question in that case was, whether the
corporation of William & Mary College, in Virginia (which had received
its charter from King William and Queen Mary), should still be
permitted to administer the charity, under Mr. Boyle's will, no
interest having passed to the college, under the will, but it acting
as an agent or trustee, under a decree in chancery, or whether a new
scheme for the administration of the charity should be laid before the
court. Lord THURLOW directed a new scheme, because the college,
belonging to an independent government, was no longer within the reach
of the court. And he very unnecessarily added, that he could not now
consider the college as a corporation, or as another report ( 1 Ves.
jr. 243) states, [17
U.S. 518, 707] that he could not take notice of it, as a
corporation, it not having proved its existence, as a corporation, at
all. If, by this, Lord THURLOW meant to declare, that all charters
acquired in America from the crown, were destroyed by the revolution,
his doctrine is not law; and if it had been true, it would equally
apply to all other grants from the crown, which would be monstrous. It
is a principle of the common law, which has been recognised as well in
this, as in other courts, that the division of an empire works no
forfeiture of previously-vested rights of property. And this maxim is
equally consonant with the common sense of mankind, and the maxims of
eternal justice. Terrett v. Taylor, 9 Cranch 43, 50; Kelly v.
Harrison, 5 Johns. Cas. 29; Jackson v. Lunn, 3 Ibid. 109; Calvin's
Case, 7 Co. 27. This objection, therefore, may be safely dismissed
without further comment.
The remaining inquiry is, whether the acts of the legislature of
New Hampshire, now in question, or any of them, impair the obligations
of the charter of Dartmouth College. The attempt certainly is to force
upon the corporation a new charter, against the will of the
corporators. Nothing seems better settled, at the common law, than the
doctrine, that the crown cannot force upon a private corporation a new
charter; or compel the old members to give up their own franchises, or
to admit new members into the corporation. Rex v. Vice-Chancellor of
Cambridge, 3 Burr. 1656; Rex v. Pasmore, 3 T. R. 240; 1 Kyd on Corp.
65; Rex v. Larwood, Comb. 316. Neither can the crown compel a man
[17 U.S. 518, 708]
to become a member of such corporation, against his will. Rex
v. Dr. Askew, 4 Burr. 2200. As little has it been supposed, that under
our limited governments, the legislature possessed such transcendent
authority. On one occasion, a very able court held, that the state
legislature had no authority to compel a person to become a member of
a mere private corporation, created for the promotion of a private
enterprise, because every man had a right to refuse a grant. Ellis v.
Marshall, 2 Mass. 269. On another occasion, the same learned court
declared, that they were all satisfied, that the rights legally vested
in a corporation cannot be controlled or destroyed by any subsequent
statute, unless a power for that purpose be reserved to the
legislature in the act of incorporation. Wales v. Stetson, 2 Mass.
143, 146. These principles are so consonant with justice, sound policy
and legal reasoning, that it is difficult to resist the impression of
their perfect correctness. The application of them, however, does not,
from our limited authority, properly belong to the appellate
jurisdiction of this court in this case.
A very summary examination of the acts of New Hampshire will
abundantly show, that in many material respects they change the
charter of Dartmouth College. The act of the 27th of June 1816,
declares that the corporation known by the name of the Trustees of
Dartmouth College shall be called the Trustees of Dartmouth
University. That the whole number of trustees shall be twenty-one, a
majority [17 U.S. 518,
709] of whom shall form a quorum; that they and their
successors shall hold, use, and enjoy for ever, all the powers,
authorities, rights, property, liberties, privileges and immunities,
heretofore held, &c., by the trustees of Dartmouth College, except
where the act otherwise provides; that they shall also have power to
determine the times and places of their meetings, and manner of
notifying the same; to organize colleges in the university; to
establish an institute, and elect fellows and members thereof; to
appoint and displace officers, and determine their duties and
compensation; to delegate the power of supplying vacancies in any of
the offices of the university for a limited term; to pass ordinances
for the government of the students; to prescribe the course of
education; and to arrange, invest and employ the funds of the
university. The act then provides for the appointment of a board of
twenty-five oversers, fifteen of whom shall form a quorum, of whom
five are to be such ex officio, and the residue of the overseers, as
well as the new trustees, are to be appointed by the governor and
council. The board of overseers are, among other things, to have
power, 'to inspect and confirm, or disapprove and negative, such votes
and proceedings of the board of trustees as shall relate to the
appointment and removal of president, professors, and other permanent
officers of the university, and determine their salaries; to the
establishment of colleges and professorships, and the erection of new
college buildings.' The act then provides, that the president and
professors shall be nominated by the trustees, and appointed by the
overseers, [17 U.S. 518,
710] and shall be liable to be suspended and removed in
the same manner; and that each of the two boards of trustees and
overseers shall have power to suspend and remove any member of their
respective boards. The supplementary act of the 18th of December 1816,
declares, that nine trustees shall form a quorum, and that six votes
at least shall be necessary for the passage of any act or resolution.
The act of the 26th of December 1816, contains other provisions, not
very material to the question before us.
From this short analysis, it is apparent, that, in substance, a new
corporation is created, including the old corporators, with new
powers, and subject to a new control; or that the old corporation is
newly organized and enlarged, and placed under an authority hitherto
unknown to it. The board of trustees are increased from twelve to
twenty-one. The college becomes a university. The property vested in
the old trustees is transferred to the new board of trustees, in their
corporate capacities. The quorum is no longer seven, but nine. The old
trustees have no longer the sole right to perpetuate their succession,
by electing other trustees, but the nine new trustees are, in the
first instance, to be appointed by the governor and council, and the
new board are then to elect other trustees, from time to time, as
vacancies occur. The new board, too, have the power to suspend or
remove any member, so that a minority of the old board, co-operating
with the new trustees, possess the unlimited power to remove the
majority of the old board. The powers, too, of the corporation are
varied. It has authority to organize new colleges in
[17 U.S. 518, 711]
'the university, and to establish an institute, and elect
fellows and members thereof.' A board of overseers is created (a board
utterly unknown to the old charter), and is invested with a general
supervision and negative upon all the most important acts and
proceedings of the trustees. And to give complete effect to this new
authority, instead of the right to appoint, the trnstees are in future
only to nominate, and the overseers are to approve, the president and
professors of the university.
If these are not essential changes, impairing the rights and
authorities of the trustees, and vitally affecting the interests and
organization of Dartmouth College, under its old charter, it is
difficult to conceive what acts, short of an unconditional repeal of
the charter, could have that effect. If a grant of land or franchises
be made to A., in trust for special purposes, can the grant be
revoked, and a new grant thereof be made to A., B. and C., in trust
for the same purposes, without violating the obligation of the first
grant? If property be vested by grant in A. and B., for the use of a
college, or an hospital, of private foundation, is not the obligation
of that grant impaired, when the estate is taken from their exclusive
management, and vested in them in common with ten other persons? If a
power of appointment be given to A. and B., is it no violation of
their right, to annul the appointment, unless it be assented to by
five other persons, and then confirmed by a distinct body? If a bank
or insurance company, by the terms of its charter, be under the
management of directors, elected by the stockholders, would not the
[17 U.S. 518, 712]
rights acquired by the charter be impaired, if the legislature
should take the right of election from the stockholders, and appoint
directors unconnected with the corporation? These questions carry
their own answers along with them. The common sense of mankind will
teach us, that all these cases would be direct infringements of the
legal obligations of the grants to which they refer; and yet they are,
with no essential distinction, the same as the case now at the bar.
In my judgment, it is perfectly clear, that any act of a
legislature which takes away any powers or franchises vested by its
charter in a private corporation, or its corporate officers, or which
restrains or controls the legitimate exercise of them, or transfers
them to other persons, without its assent, is a violation of the
obligations of that charter. If the legislature mean to claim such an
authority, it must be reserved in the grant. The charter of Dartmouth
College contains no such reservation; and I am, therefore, bound to
declare, that the acts of the legislature of New Hampshire, now in
question, do impair the obligations of that charter, and are,
consequently, unconstitutional and void.
In pronouncing this judgment, it has not for one moment escaped me,
how delicate, difficult and ungracious is the task devolved upon us.
The predicament in which this court stands in relation to the nation
at large, is full of perplexities and embarrassments. It is called to
decide on causes between citizens of different states, between a state
and its citizens, and between different states. It stands, therefore
in the midst of [17 U.S.
518, 713] jealousies and rivalries of conflicting
parties, with the most momentous interests confided to its care. Under
such circumstances, it never can have a motive to do more than its
duty; and I trust, it will always be found to possess firmness enough
to do that.
Under these impressions, I have pondered on the case before us with
the most anxious deliberation. I entertain great respect for the
legislature, whose acts are in question. I entertain no less respect
for the enlightened tribunal whose decision we are called upon to
review. In the examination, I have endeavored to keep my steps super
antiquas vias of the law, under the guidance of authority and
principle. It is not for judges to listen to the voice of persuasive
eloquence, or popular appeal. We have nothing to do, but to pronounce
the law as we find it; and having done this, our justification must be
left to the impartial judgment of our country.
DUVALL, Justice, dissented.
22 [17 U.S. 518,
714] Upon the suggestion of the plaintiff's counsel, that
the defendant had died since the last term, the court ordered the
judgment to be entered nunc pro tunc as of that term, as follows:--
JUDGMENT.-This cause came on to be heard, on the transcript of the
record, and was argued by counsel: And thereupon, all and singular the
premises being seen, and by the court now here fully understood, and
mature deliberation being thereupon had,
___ that it was but a renewal and confirmation of the charter of
the old company, which had been suspended in 1769, in consequence of
the immense losses of capital sustained in the calamitous war of 1756
(but which suspension was at the time solemnly protested against by
the parliament of Paris as illegal); that their new grant might still
be perfected by letters-patent, which the faith of the king was
pledged to issue; and that the privileges thus granted to them were
irrevocably vested, as a right of property, of which they could not be
deprived by any authority in the kingdom. 'En effet, quand le roi
accorde un privilege exclusif, ce privilege est le prix d'une mise de
fonds, dans un commerce hazardeux, dont l'entreprize est jugee
avantageuse a l'etat. Dela nait par consequent un contrat
synallagmatique, qui se forme entre le souverain et les actionnaires.
Dela nait un droit de propriete qui devient inebranlable pour le
souverain lui-meme.' And of this opinion were the advocates (MM.
HARDOIN, GERBIER and DE BONNIERES) consulted by the company. See a
Collection of Tracts on the French East India company, Paris, 1788. in
the Library of Congress.
[17 U.S. 518, 715] it appears to this
court, that the said acts of the legislature of New Hampshire, of the
27th of June and of the 18th and 26th of December, Anno Domini 1816,
in the record mentioned, are repugnant to the constitution of the
United States, and so not valid; and therefore, that the said superior
court of judicature of the state of New Hampshire erred, in rendering
judgment on the said special verdict in favor of the said plaintiffs;
and that the said court ought to have rendered judgment thereon, that
the said trustees recover against the said Woodward, the amount of
damages found and assessed, in and by the verdict aforesaid, viz., the
sum of $20,000: Whereupon, it is considered, ordered and adjudged by
this court, now here, that the aforesaid judgment of the said superior
court of judicature of the state of New Hampshire be, and the same
hereby is, reversed and annulled: And this court, proceeding to render
such judgment in the premises as the said superior court of judicature
ought to have rendered, it is further considered by this court, now
here, that the said trustees of Dartmouth College do recover against
the said William Woodward the aforesaid sum of $20,000, with costs of
suit; and it is by this court, now here, further ordered, that a
special mandate do go from this court to the said superior court of
judicature, to carry this judgment into execution.
Footnotes
[
Footnote 3 ] Reported in 1 Ld. Raym. 5; Comb. 265; Holt 715; 1
Show. 360; 4 Mod. 106; Skin. 447.
[
Footnote 4 ] Lord HOLT's judgment, copied from his own manuscript,
is in 2 T. R. 346.
[
Footnote 5 ] 1 Burn's Eccl. Law 443.
[
Footnote 6 ] Ashby v. White, 2 Ld. Raym. 938.
[
Footnote 7 ] 'It is a principle in the English law, as ancient as
the law itself,' says Chief Justice KENT, in the case last cited,
'that a statute, even of its omnipotent parliament, is not to have a
retrospective effect. Nova constitutio futuris formam imponere debet,
et non praeteritis. (Bracton, lib. 4, fol. 228; 2 Inst. 292.) The
maxim in Bracton was probably taken from the civil law, for we find in
that system the same principle, that the law-giver cannot alter his
mind, to the prejudice of a vested right. Nemo potest mutare consilium
suum in alterius injuriam. (Dig. 50, 17, 75.) This maxim of Papinian
is general in its terms; but Dr. Taylor (Elements of the Civil Law
168) applies it directly as a restriction upon the law- giver; and a
declaration in the code leaves no doubt as to the sense of the civil
law. Leges et constitutiones futuris certum est dare formam negotiis,
non ad facta praeterita revocari nisi nominatim, et de praeterito
tempore, et adhue pendentibus negotiis cautum sit. (Cod. 1, 14, 7.)
This passage, according to the best interpretation of the civilians,
relates not merely to future suits, but to future, as
contradistinguished from past, contracts and vested rights. (Perezii,
Praelec. hit.) It is, indeed, admitted, that the prince may enact a
retrospective law, provided it be done expressly; for the will of the
prince, under the despotism of the Roman emperors, was paramount to
every obligation. Great latitude was anciently allowed to legislative
expositions of statutes; for the separation of the judicial, from the
legislative, power, was not then distinctly known or prescribed. The
prince was in the habit of interpreting his own laws for particular
occasions.
This was called the interlocutio principis; and this, according to
Huber's definition, was, quando principes inter partes loquuntur, et
jus dicunt. ( Praelec. Juris. Rom., vol. 2, 545.) No correct civilian,
and especially, no proud admirer of the ancient republic (if any such
then existed), could have reflected on this interference with private
rights, and pending suits without disgust and indignation; and we are
rather surprised to find, that under the violent and irregular genius
of the Roman government, the principle before us should have been
acknowledged and obeyed to the extent in which we find it. The fact
shows, that it must be founded in the clearest justice. Our case is
happily very different from that of the subjects of Justinian. With
us, the power of the law-giver is limited and defined; the judicial is
regarded as a distinct, independent power; private rights have been
better understood, and more exalted in public estimation, as well as
secured by provisions dictated by the spirit of freedom, and unknown
to the civil law. Our constitutions do not admit the power assumed by
the Roman prince; and the principle we are considering, is now to be
regarded as sacred.'
[
Footnote 8 ] History of his Own Times, vol. 3, p. 119.1
[
Footnote 1 ] Burnet is, notoriously, an unreliable historian. Dr.
Johnson said of him, and this work, 'I do not believe, that Burnet
intentionally lied; but he was so much prejudiced, that he took no
pains to find out the truth. He was like a man who resolves to
regulate his time by a certain watch; but will not inquire whether the
watch is right or not.'
[
Footnote 9 ] See a full account of this, in State Trials, 4th ed.,
vol. 4, p. 262.
[
Footnote 10 ] Letters of Publius, or The Federalist (No. 44., by
Mr. Madison).
[
Footnote 11 ] In Fletcher v. Peck, 6 Cranch 87, the court says, 'a
contract is a compact between two or more parties, and is either
executory or executed. An executory contract is one in which a party
binds himself to do, or not to do, a particular thing; such was the
law under which the conveyance was made by the government. A contract
executed is one in which the object of contract is performed; and
this, says Blackstone, differs in nothing from a grant. The contract
between Georgia and the purchasers was executed by the grant. A
contract executed, as well as one which is executory, contains
obligations binding on the parties. A grant, in its own nature,
amounts to an extinguishment of the right of the grantor, and implies
a contract not to re-assert that right. If, under a fair construction
of the constitution, grants are comprehended under the term contracts,
is a grant from the state excluded from the operation of the
provision? Is the clause to be considered as inhibiting the state from
impairing the obligation of contracts between two individuals, but as
excluding from that inhibition, contracts made with itself? The words
themselves contain no such distinction. They are general, and are
applicable to contracts of every description. If contracts made with
the state are to be exempted from their operation, the exception must
arise from the character of the contracting party, not from the words
which are employed. Whatever respect might have been felt for the
state sovereignties, it is not be disguised, that the framers of the
constitution viewed, with some apprehension, the violent acts which
might grow out of the feelings of the moment; and that the people of
the United States, in adopting that instrument, have manifested a
determination to shield themselves, and their property, from the
effects of those sudden and strong passions to which men are exposed.
The restrictions on the legislative power of the states, are obviously
founded on this sentiment; and the constitution of the United States
contains what may be deemed a bill of rights, for the people of each
state.'
[
Footnote 12 ] 'A private corporation,' says the court, 'created by
the legislature, may lose its franchises by a misuser or non-user of
them; and they may be resumed by the government, under a judicial
judgment, upon a quo warranto to ascertain and enforce the forfeiture.
This is the common law of the land, and is a tacit condition annexed
to the creation of every such corporation. Upon a change of
government, too, it may be admitted, that such exclusive privileges
attached to a private corporation as are inconsistent with the new
government, may be abolished. In respect, also, to public corporations
which exist only for public purposes, such as counties, towns, cities,
&c., the legislature may, under proper limitations, have a right to
charge, modify, enlarge or restrain them, securing, however, the
property for the use of those for whom and at whose expense it was
originally purchased. But that the legislature can repeal statutes
creating private corporations, or confirming to them property already
acquired under the faith of previous laws, and by such repeal, can
vest the property of such corporations exclusively in the state, or
dispose of the same to such purposes as they please, without the
consent or default of the corporators, we are not prepared to admit;
and we think ourselves standing upon the principles of natural
justice, upon the fundamental laws of every free government, upon the
spirit and letter of the constitution of the United States, and upon
the decisions of most respectable judicial tribunals, in resisting
such a doctrine.'
[
Footnote 13 ] See also 1 Kyd on Corp. 65.
[
Footnote 14 ] See Ex parte Bolton School, 2 Bro. C. C. 662.
[
Footnote 15 ] The Federalist, No. 44; 1 Tucker's Bl. Com. part 1,
Appendix, 312.
[
Footnote 16 ] This appears to be the prevailing idea of the
present day; the people are taxed for the support of state schools,
and the payment of state school-masters, as state officers, whether
they can, in conscience, make use of these state institutions, or not.
What would have been thought of this in 1819?
[
Footnote 17 ] See Newton v. Commissioners,
100 U.S. 557 .
[
Footnote 18 ] Starr v. Hamilton, 1 Deady 268.
[
Footnote 19 ] The case of Sutton Hospital, 10 Co. 23.
[
Footnote 20 ] See Rex v. Pasmore, 3 T. R. 199, and the cases there
cited.
[
Footnote 21 ] See Holmes v. Lansing, 3 Johns. Cas. 73.
[
Footnote 22 ] In the discussions which arose in France, in 1786,
upon the new charter then recently granted to the French East India
company, it seems to have been taken for granted, by the lawyers on
both sides, to whom the questions in controversy were submitted by the
company, and by the merchants who considered themselves injured by its
establishment, that if the charter had regularly issued according to
the forms of the French law, it was irrevocable, unless forfeited for
non-user or misuser. The advocates (MM. LACRETELLE and BLONDE) who
were consulted by the merchants of the kingdom opposed to the
establishment of the company, denied its legal existence, on the
ground, that the king had been surprised in his grant; that it was not
yet perfected by the issuing of letters-patent, nor duly registered by
the parliaments; and that it both might and ought to be suppressed, as
an illegal grant of exclusive privileges, contrary to the true
principles of commercial philosophy. On the other hand, it was
contended by the company, that their grant was irrevocable;
|