Lyles v. McCown
Lyles v. McCown
Opinion of the Court
The opinion of the Court was delivered by
The petitioners, William H. Lyles and Archer A. Phlegar, have applied to this Court for a writ of mandamus to require Honorable R. M. McCown, Secretary of State, to issue to them a charter of incorporation for the Carolina, Clinchfield and Ohio Railway Company as a corporation of the State of South Caro *128 lina. This company, as is represented in the petition, is a corporation duly organized under the laws of the State of Virginia, has built and now owns a line of railway running partly through the States of Tennessee, Virginia, and North Carolina, and “desires to build and operate a line of railway into the State of South Carolina, and to own said railway, and to carry on business and to exercise all corporate franchises in this State.” It is further alleged in the petition “that the owners and stockholders of said railroad company so created and organized, under and by virtue of the laws of the State of Virginia, at a meeting duly held, did designate and appoint your, petitioners, William H. Lyles and Archer A. Phlegar, and George L. Carter, for the purpose of applying for a charter and becoming incorporated as a corporation of this State, under and by virtue of the authority conferred by the Act of the Legislature, of this State, approved the twenty-fifth day of February, A. D. 1902.” The compliance by the petitioners as proposed corporators with all the requirements of the statute law of this State necessary to incorporation of the Carolina, Clinchfield and Ohio Railway Company is alleged and the steps taken are set out in detail.
The respondent has demurred to the petition on the grounds that the petition does not state facts sufficient to constitute a cause of action in that: (a) “no books of subscription have been opened and nothing whatever has been subscribed, paid into, or secured to the said proposed corporation as its capital stock as required by Chapter XLVIII, Article IV, sections 1918, 1919, 1920, 1921, Code of Laws, 1902, Volume I. (b) That petitioners have not tendered your respondent a sufficient sum of money to pay the charges prescribed by law for issuing the said charter; the said charges being prescribed by section 1888, Code of Laws, 1902, Volume I; the amount required under said section being the sum of seven thousand eight hundred ($7,800.00) dollars, and the petitioners have tendered only *129 the sum of three thousand ($3,000.00') dollars in payment thereof.”
Among the steps so required is the opening of books of subscription, the taking of subscriptions to the amount of at least five hundred dollars per mile and the organization of the company by election of officers. These steps are not required or authorized under a commission o.r charter *130 received from another State, but under the commission which the Secretary of State is required by section 1918 of the Civil Code of South Carolina to issue to the board of corporators. The requirements of the statute are plain, and the Secretary of State cannot dispense with them. It is hardly nécessary to say that the case of the State v. Tomkins, 48 S. C., 49, 25 S. E., 982, holding constitutional the Act of 1896, providing for the domestication of foreign railroad corporations by the filing of an authenticated copy of the charter, has no application, for the reason that the Act of 1896 has been supplanted by the Act of 25th February, 1902. The first ground of demurrer is sustained.
The first ground of respondent’s demurrer having been sustained, the judgment of this Court is that the petition be dismissed.
Reference
- Full Case Name
- Lyles v. McCown, Secretary of State.
- Cited By
- 5 cases
- Status
- Published
- Syllabus
- 1. Incorporation of Railroads. — The owners or projectors of a railroad company, already incorporated in another State, in order to extend its road into this State must become incorporated here, and for that purpose must open books of subscription in this State, obtain subscriptions to the amount of five hundred dollars per mile, elect officers and take the other steps for incorporation set out in sections 1918-1921, of Code of 1902. State v. Tompkins, 48 S. C., 49, distinguished from this. 2. Ibed. — Corporations—Statutes—Fees.—The General Assembly may fix the fees which a corporation must pay for a charter by reference to and the adoption of the terms of a repealed statute which for that purpose is thereby reenacted.