ON THE RIGHTS AND POWERS OP • \ ' ■ . \ \ ' CORF ORATIONS. A NOTICE OF THE PAMPHLET BY A CITIZEN OF BOSTON. BY HIS FELLOW CITIZEN. BOSTON; PRINTED FOR THE AUTHOR. 1837. 4 on this subject, which we cannot get over, under, or round.^' The same thing was said in the British Parliament — “I defy you, Gentlemen, said Lord to make a law on this subject, through which I cannot drive my coach and four. Will any one deny that Bank charters have been obtained in other States than Massachusetts, when the public exigencies did not require them, and that more may be had without any known limit by the same means ? Can it be disputed, that the same power which is able to inflict on the community a new Bank Charter, is also able to give it privileges not consistent with public good, and to prevent such changes and modifications in its charter, as the public good may require? Does not the resistance in this State to the suppression of small Bills, answer this question victoriously? Have manufacturing Corporations no influence over legislation, beyond that of the fair votes of the Stock-Holders? Ask any candid, honest man, whether he believes that all the operatives vote according to their own sense of right, or even their own remote interest? Have the Railway and Bridge Corporations never obtained privileges in the Legislature, inconsistent with public good, and sometimes exercised them to the unlawful injury of private rights? Have they not ob- tained, and retained, in spite of all opposition, superior and partial privileges, to the prejudice of each other 1 There are now in Court, several cases of conflicting rights between these great aspirants to public favor. Did not Charlestown Bridge Corporation obtain an extension of its charter for forty years, without any just claim on the public be- yond its original grant ? How shall we account for such favors, but by supposing some undue influence by the chartered power? What did Charlestown Bridge Corporation for the public, to entitle it to a prolonged right of raising a heavy tax on travel ? Banks are said to pay for their privileges by the tax of one per centum on their capital ; but the public will learn one of these days this is an Indiaii gift — give one, and take ten. In fact, how can any institution aflbrd to give, unless it take back in some indirect way more than it gave? Before I look into the facts stated, and the arguments of the pamphlet before me, I will draw a hasty inference from the remarks above, in anticipation of the conclusion I may come to, after a more mature consideration of our author’s facts and conclusions. If a few corporations, interaiding each other, on the Log-rolling system, have obtained charters, which experience shows to be prejudi- cial to the public and private interest, certainly less advantageous to the public than was expected ; if they have in this feeble state been able to frustrate the eflbrts of the Legislature to correct their abuses, what rea- sonable hope remains of correcting by legislation future abuses, when the number and power of these corporations are yearly increasing? Would it be an unnatural or a forced position, to anticipate the time, and that not distant, when the whole power of this State will be held and exercised by the stockholders of Corporations ? If they can control the Legislature now, so much as we must acknowledge they k do, must not their power increase with their wealth and numbers? If these conclusions be just, and the anticipations well-founded, we have in prospect a Government very different from that which our forefathers intended to establish ; a Government, not of the majority, but of the minority; not of the people, but of money. The very thing which our wise ancestors so much dreaded, and labored so much to guard against, by what seemed to them sufficient security. This is one of those cases as demonstrable as the simplest problem in mathematics. If w’e admit that there has been any undue influence heretofore, by Corporations, in their former weak state, that influence must increase with their numbers. If they have possessed an undue share of the legislative power heretofore, that share of power must also increase until it check itself, or some violent commotion bring it to a violent end. Check itself, it will not ; for it is not in the nature of man or Corporations, to put bounds to their own wealth or power. Thence I conclude that the increase of Corporations, or the augmentation even of the capital and powers of those now extant, will very soon establish a Government of Corporations in the State; although those who thus get possession of the power, will at first prudently content themselves with the substance and leave the shadow ; that is, the forms of leg- islation, as they now exist. Can we remain as we now are ? I doubt it. Can we recede; that is, curtail the present corporate power? I doubt that. But what I do not doubt is, that we shall continue in this vicious course, until the Corporate Government becomes so oppressive, that some sudden burst of public indignation will overturn the whole system, to the consterna- tion and ruin of thousands, both innocent and guilty, with the accom- paniment, perhaps, of civil war. Civil w^ar would probably be the consequence, if the same blind infatuation pervaded the Corporations, which their partizans have sometimes exhibited ; and in this case, they would have the Laws on their side; Laws of their own making; and their own expounders and commentators on the Bench, most of whom w'ould have unfortunately a deep pecuniary interest in the issue. But where would be the force to put these laws in execution, or the sanguinary laws which the occasion might call for ? Our author has gone far back into the history of corporations ; so far, indeed, as those corporations which the laboring and trading people in the feudal times of Europe, obtained from the barons, their lords, and masters, who were poor in money, and were willing to con- cede much to their vassals, slaves, and semi-slaves to obtain money to defray their expenses going to the wars of the crusaders. These Corporations were monopolies, on a small scale, among men of the same craft, to exclude foreign competition, and thus to keep up prices. When Boston was about to be incorporated as a city, there wms an opinion prevalent among some of our mechanics, that their trades would be protected from the competition of similar trades from the neighboring towms ; and many voted for the change, probably, in this expectation. Such corporations exist, at the present time, in various 6 parts of Europe, and do not prevent the wares produced by the corpo- rators 'from being sold at the lowest living price ; or the corporators, who are all workmen, laboring in their own shops or houses, individ- ually for their customers, as they do here, from being miserably poor. These corporations I admit, however, contributed much to emanci- pate the wmrkingmen, w'ho were slaves, or semi-slaves to the Barons; for they enabled them to combine their forces. They acquired riches and’power, and used them both to acquire more, as our great corpo- rators are now doing. But the sum total of the riches and power thus acquired, w^as not enough to prevent their being plundered by their chivalrous barons, w^hen they returned from the East, where they had learned the useful arts of Government. Thus these corpo- rations gave liberty to the Covipanions, it is true, but it gave the prin- cipal part of their increased products, the fruit of emancipation, to their Law-making masters. Corporations with us, are now found in other hands, and for other purposes ; not for emancipation, or to enrich the laborers, but to en- slave them, and keep them poor ; to deprive them openly and effectu- ally of their civil rights, and make them instrumental in forging chains for their own and their children’s hands, through their con- trolled votes at the polls. Our author informs us, that Adam Smith reprobates these Corpo- rations, because ‘‘The exclusive privileges of Corporations and all those laws which restrain, in any particular employments, the competition to a smaller number than might otherwise go into them, have a tendency to make the price of articles of labor, in that particular trade, the highest which can possibly be obtained.” Our author concludes this quotation, by remarking “ That these historical facts show the great change which time has wrought, even in Europe, in the nature and objects of Corporations ; but much greater changes (he says) have been made in them in this country.” It does not appear to me that Adam Smith’s objections to little corporations, whose members all work separately and remain poor, is at all inapplicable to large corporations, which are rich, and combined in one powerful mass in our Legislative Halls, where they cause laws to be framed for their own protection, against all foreign competition ; and, sometimes, against a fair share of domestic taxes. The poor corporations against which Adam Smith objects, certainly never had the power to protect themselves against foreign competition, or against the unequal taxes at home. In fine, these little corporations are not to be tolerated, although all their members toil incessantly, but remain poor; because, forsooth, they check a competition wanted to make them poorer ; while large modern corporations are to be encouraged, because their members, forsooth, do not work at all, but grow rich with a little legislative aid. make laws to protect themselves against competition, and want to grow richer. 4 7 “ In England (says our author) many corporations are monopolies; here, they have only particular powers.” I confess that I cannot understand the difference between the monop- oly of things, and the particular special power to produce things. If our corporations have particular powers, which powers are not com- mon to all citizens, they have so far a monopoly of power, which is available for profit, or they would not ask for it. Again ; “In England (he informs us) corporations are created for individual benefit; but here, for the common good.” If our author can make out this last position, he will have estab- lished his main position, namely ; that all corporations are under the absolute control of the Government, to alter, modify, or annul them ■ for he justly remarks, “ That the interest of corporations, as well as individuals, must yield to the common good, when they stand in its way.” But the question will always recur; What is the Government, and who controls it ? If the elections were as free and unbiassed as our ancestors here and in England have often attempted to make them, there might be some hope of seeing created or retained, no corpora- tions or other institutions, but such as were really beneficial to the public. “ In Europe, (the pamphlet says,) to grant exclusive privileges to favored individuals, to allow, and encourage the accumulation of prop- erty in large masses, by means of primogeniture laws, and hereditary entails, owned, and controlled by the elder branches of families, is ac- cording to the genius of their institutions. By these means, most of the works which a civilized condition demands, and, which can only be effected by a concentrated money power, can thus be carried on in Europe by individual wealth.” Our author continues ; “Here, the reverse is the case; our ancestors came here poor; the fundamental principles of their institutions, were to elevate the char- acter, and improve the condition of the whole mass, by diffusing among all the citizens an equality of wealth, as well as of political rights and privileges. The laws of primogeniture and entail, were not recog- nized; monopolies, except for new inventions that were profitable to the country, and those for a short time, were forbidden by a colonial law, as early as 1611. Our ancestors, however, were fully aware of the value and importance of associated and concentrated wealth, in carrying forward great works, which an advanced and improved civil- ization demands. They gave charters of incorporation, but they gave them neither as monopolies nor perpetuities.” Our author goes on to state, that these corporations were for the public good, and never beyond the reach of legislative action; and, considering the minute division of property among the mass of citi- zens, that they are jjecnliarly adapted to benefit persons of small means and limited knowlege of business, who, by a concentration of their wealth, and a union of councils, can come into fair and safe com- petition with the skilful and the wealthy. By way of illustrating the advantage of corporations to men of small means, he brings to view the Corporation for constructing a Breakwater at Sandy Bay ; which, he tells us, “Was the means of raising forty thousand dollars, in labor and mon- ey, and has accomplished that useful work.” This is a fair and a favorable sample of associated labors in new countries; and many such were those probably of our ancestors, al- luded to by our author, and called Charters. No one can object to such works being undertaken and accomplished in some given, but short time, with as little of legislation as possible, and none, if it could be done without. The making wharves at South Boston, and land at South Cove, are works of pubUc utility ; yet I should be unwilling to see them held, for an indefinite period, as joint stock property ; and as soon as the pub- lic has derived all the advantage it can expect from the enterprize, by its completion, such property should be sold, and come under the general laws in regard to Real Estates. But there is a wide difference between such temporary associations, whose end and object are visible and limited, and Manufacturing Cor- porations with their millions, building Cities, and controlling the political action of their inhabitants ; in fact, disfranchising the country, and bringing tHe whole power of the State into the city, which holds and controls the capital. The united labors of our forefathers, alluded to, were the indispensa- ble consequence of their physical weakness. It was the true, legiti- mate, neighborly, and praise-worthy system of hog-rollings still prac- tised in our new settlements. A sloop might be wanting by the Pil- grims at Plymouth, to survey the bay, or to catch fish ; it became then highly expedient that the whole colony of forty-four, should unite and build one. This was labor for the common good. But if three or four of the Pilgrims had, by telling a specious story about public goods obtained rights and privileges exempting their fishing labors from an equal share of the public burthens, compared with agricultural and mechanic labors, or any other advantages, which would make their dollars or their labors more productive of profit than the dollars and labors of the other colonists, then it would have been better the sloop had not been built, and that they should have eaten clams, until some enterprizing individuals should see fit to build a sloop for their own account. Our author has high authority for saying that Corporations are ben- eficial to men of small means. Governor Everett, in his first official message, says the same thing in relation to Banks. He said more, indeed ; he said they were injurious to men of capital. This was an 9 attempt to prove too much ; because we know, that without the aid of men of capital, in and out of the Legislature, and with their superfluous wealth, great works would not be achieved by Corporations, or great Banks be instituted. Considering that the pamphlet I have in review is supposed to pro- ceed from a Democratic writer, and is widely circulated among that class of citizens, it is a subject of regret to find the favorite engine of the high federal party taken into favor, and eulogized, even with all the deductions of power, independence of future legislation, and per- petuity, which the federalists claim for Corporations, but which our author denies to them. Grant them the thing in sufficient quantities, and if they do not bring all legislation to coincide with their wildest pretensions, there is no truth in the saying of Hume, who said, — “ Where the Constitution allows any share oj power, though small, to an order of men who possess a large share of property, it is easy for them, gradually, to stretch their authority, and bring the balance: of power to coincide with that of property ^ Another English writer remarks,— “ That it is a principle of human nature, when men possess the pow- er, they will pursue their own interest at the expense of others. The wealthy classes in this country, (England,) by influencing the poor, or dependent electors, possess the real power of making the laws, and im- posing taxes, and, consequently, the richer classes plunder the people.” In Europe, as our author justly remarks, the rights of the people are assailed by the privileged by birthright, and the wealthy classes. I will add that the people there are poor and ignorant, and of course are an easy prey to their oppressors. But in America, the people are neither poor or ignorant, yet they are grievously wronged. They have to Contend with the wealthy, (old and new,) who constitute the elite of the op- posing army. This is a permanent undying mass, although its members are shifting daily ; it is a corporation, in fact, ruled by the same tacit principles and by-laws. But this body is not the most nu- merous or the least scrupulous. The expectants of wealth, and hon- ors to be obtained without much labor or much merit, through the law-making power, constitute the main body, and the activity and mobility of the grand army of abuses. They have nothing to lose, and all to hope for; and are ready to do many things in ward meet- ings, in caucuses, at the polls, and afterwards in the Legislatures, which men of wealth and good standing in society, would not do openly themselves. Add to this power that proceeding from the forced control which wealthy corporations have over numerous un- willing victims, remote from their immediate power, and we shall find that the remainder of the people, although perhaps more nume- rous, are too much scattered, divided, and enthralled by the specious arguments of the first talents of the country, which are unfortunately enlisted in this unholy crusade against principles, to resist it. Whatever good may have come from the ancient Corpoiations, to 2 10 which our author alludes, it appears to me evident, that the increase of Corporations, such as we now have, must infallibly lead to a crisis, not to be wished for by prudent men \vho have something to lose. Safety is not to be found here for wealth, obtained by classes, through unjust means. In old countries, where these systems have thrived, and arrived to such a degree of maturity, as to be now too heavy for the tree that bore them, and are threatening destruction to their pos- sessors, there have been formerly means of safety, which grew, in part out of the very system ; namely, an army of armed paupers, al- ways ready to awe into submission the unarmed laboring paupers. But that source of safety for usurped powers, and wealth, acquired by legal frauds, is wanting in our country. The armed, physical force is yet on the side of popular rights. And if the wrongs already perpetrated have not yet enlightened the industrious and honest part of the community, a little more of the same sort of knowledge, from that same source, icill enlighten and unite them. What one hun- dred Corporations may have failed to accomplish, one thousand may. Although thirty Banks in this City, have not yet taught its inhab- itants, their secret and progressive effects, a few more of them may do it. The incorporation of Aveavers and spinners, may not yet have alarm- ed the agriculturalists, and mechanics. But when Land Corpora- tions, and a few more mechanic Corporations make their appearance, an alarm will be the consequence, unless printing and speaking be- come also monopolies. I have looked in vain over the pamphlet before me, for some check to the indefinite extension of the system of Corporations, which it ad- vocates. But the writer seems not to have considered numbers or objects of any importance, and is inclined to trust too implicitly, to the salutary checks which legislation may devise to prevent abuses. I will repeat again ; If legislation have not yet shown that it possessed the power to correct the most flagrant abuses and infractions of statute laws by Corporations, in their comparatively feeble state, what hope have we of a remedy, when the disorder, will be found, ten-fold in- creased ? Let us admit, that which our author wishes to establish ; namely, that Corporations, in ancient feudal times, have rendered good service, by balancing, and then breaking down the tyranny of steel-clad, ig- norant, and titled ruffians. Then indeed did mechanical and com- mercial Corporations, by the force of their combined skill and wealth, break the chains of baronical slavery. It was then, the many against the /cM’, who had usurped unnatural powers. The few were van- quished ; but a compromise took place, something like our amalga- mations, when federalists become suple, after castigation ; and like them, too, did the descendants of the Old Barons, by amalgamation of blood, — marrying the richest heiresses, of the new and rising no- bility, recover their power, and improve their condition. And their new allies taught them easier and safer ways of fleecing the working classes, than by open and violent plunder. II But, how stands the contest now? It is not wealth against pre- scriptive privilege, as in the times alluded to ; it is wealth against la- bor. It is wealth, as a great body Corporate, throughout this Union, striving to arm itself with something like the privileges, which wealth in former times had broken down. When wealth was fighting the battles of the oppressed many, against the tyrannical jew, it was proper enough that it should avail itself of all advantages, and obtain privileges if it could ; and being then possessed of knowledge, too, superior to the Lordly Nobles, who made a boast of their ignorance of Letters, they had this advantage over their oppressors. Money has assumed the place of titles. Ou r nobles count not their armorial quartering^, but their dollars^ and those who have the most, have the most nobility, w^hether they come from the lap-stone, or the dung-hill; whether got by wholesale fraud in the Legislature, or by petty fraud in the grog-shop. The wealthy are no longer classed among the vulgar people, by a proud aristocracy of birthright, who kicked, plundered, and hanged them as Jewish dogs. The wealthy, at various times since our Revolution, have attempted to obtain a separate and superior representation of wealth, which is, in fact, the first step towards form- ing a distinct class. In the small degrees, in which it has been at- tained, it is a monopoly of power, over the laws, the very worst of monopolies. Who will deny, that there is a contest for power in this country, between two classes ? It will not do to say, that it is not a contest between classes, because some of each class may be found in the opposite class, and that is a mere difference in principle, a polit- ical contest between a few men. That question may be settled by a glance over the composition of the parties ; one consists of rich men, and their sycophants; and the other, of the farmers and mechanics principally. One class is the producer of wealth, and the other, the monopolizer of wealth, by fair means, or foul ; by industry, and economy, or by public and private frauds. The wealthy class, now called the Conservatives; because they wish to perpetuate the abuses through which they have grown, and are still growing rich. This class assumes the rank, and awkwardly apes the manners of the con- servative, and noble classes in Europe ; and is striving for privileges, which give profits without labor ; to degrade the laborer, and elevate the successful intriguer. These new invaders of popular rights think to escape detection, because they cannot yet be designated by a name, or traced to a location, or confined to a determined number of families and cannot entail their wealth on their children. But the oppression of a combination of Corporations, whose members might be the sons of rich men, or of poor men ; men of yesterday, or of to- day; taught, or untaught; mechanical or professional men; I sav the oppression would be the same ; and perhaps more galling than that which afflicts the humble poor of Europe, who are accustomed to a conventional superiority of the gentry and nobility. They, in fact, would be more refined and civil in their oppression — and more graceful. If a war of opinion exist in our country, there must be 12 two parties to it. Now, who are they ? They are, labor, and capital. The latter contending for privileges and exemptions, through legis- lative Charters, which, they contend, do give to the public a fair equivalent for these favors, and do really benefit the other complain- ing party more than they injure it. The former deny these advantages, and contend that they are inju- rious to their interest ; that they throw an unequal share of the bur- thens of state upon them, by indirect means, ^nd increase the inequal- ity in society, which is already too great. Here are two parties, as distinct as ever were those of former times ; and the distance between them will increase, yearly, if the system of corporations be continued, f Now, shall legislation lend its aid to accel- erate the catastrophe, Avhich must terminate this unequal and unjust system ? Shall we legislate to make slaves of our fellow-citizens, because history and our author tell us that, legislation and Corpo- .rations, once aided to emancipate the oppressed ancestors of these same fellow-citizens ? However little similarity there is between the circumstances of the old and the new world, there are some points of history where they approach. “ Until the reign of Servius Tullius, the people of Rome were in possession of the highest power. By the establishment of universal suffrage (all votes being equal) they held in their hand the supreme au- thority, and they may fearlessly challenge their adversaries to show where that authority was abused or misused. Nothing is heard of those fierce contests between the different orders of the state, which were presented afterwards. The people, satisfied with the possession of power, cared not to exert it, except when the welfare of the state re- quired it, and readily concurred in the wishes of those whose rank and wealth gave strength to their recommendations. Under Servius, a new era commenced. He formed the design of transferring the chief au- thority to the nobility and Patricians ; but fearing the resentment of the people, if he openly avowed his object, he artfully held out a bait of considerable allurement to divert their attention from his real ob- ject. Under the specious pretext of diverting the burthen of taxation from the poorer classes to the richer ones, he introduced the Census, whereby the wealth, or rank of each individual, was for the future to be the measure of his political privilege. He then proceeded to a new mode of collecting the votes, which was destructive to majorities, and thus threw the power into the hands of the Patricians.’’ Who cannot discover symptoms of the same officious, fostering care, of the good, and too confiding people in this country, by the Tulliuses of America ; less polished, to be sure, but not less cunning. Sixteen years ago, they promised, not only to give us cloths and calicoes, not only cheaper than we then paid for them, but cheaper than we could get them any where else ; and that, in a few years. The great master of these promising Tulliuses, Alexander Hamil- ton, laid it down as a fundamental maxim, that small duties alone should be granted by way of protection ; and that they even could not be continued with justice, beyond the time necessary to a fair 13 experiment. Duties ten times higher than he considered sufficient, have now existed more than sixteen years, and we are threatened with a civil war, if we attempt to relieve the people of this burthen. ■ Banks were to make money plenty, for every body ; and our hon- est friends in the country were to be relieved of the state tax, by a tax on Bank Capital, which was wholly paid by the Capitalists of the city, out of their good will to the people; and no advantage to the Capitalists. Our Governor says, to their disadvantage ; and our Au- thor says, that Corporations benefit men of small means. We shall learn, *in a few years, whether the relative wealth and importance of the farmers and mechanics, compared with that of professional men, bankers. Corporators and merchants, remain the same. But we may learn it too late. Although these remarks have taken a wider range than I expected, I should not dismiss this pamphlet without noticing, more particularly, the hopes, deceptive hopes, it appears to me, of the author, to establish the authority of the Legislature over all Corporations, as effectually as it exists over all other objects of its creation. I have no doubt of the power being in that body; or of the propriety of its constant exer- cise. But I fear that the influence of Corporations is already too great for any successful attempt to control them. The recent at- tempts in the case of the Lowell Railway, and others, before, show that the plainest principles of equal legislation, even between these institutions, with a view to put them on an equal footing with each other, in their depredations on the public, is not within the power of the Legislature, as it is now constituted. Can we hope, then, with these growing elements of Corporate influence and power, to see our Legislature more favorably constituted for a return to sound princi- ples ? I am happy to find the following strong sentence in the pamphlet, which should settle the minds of the public on the inexpediency of Corporations, if the fears I have already expressed on their omnipo- tence should be confirmed. Our author says, — “ If they are to he placed beyond legislative control^ and are to become monopolies^ and perpetuities, they become alarming excres- cences upon the body politick Now, let us see if our author himself do not furnish some reason to apprehend a power in certain Corporations out of the reach of leg- islative action, without looking to our late records for corporate opera- tion, and successful resistance, where abundant proofs may be found, of a disposition to deny legislative authority. I will notice one in- stance, however, before I look into the pamphlet. It is the prevalent opinion, among the candid of all parties, that the suppression of small bills is very desirable. Several states have acted on this opinion, and derive great benefit from the change. It has been proposed here, also, but in vain. The influence of Banks, 14 in the Legislature, now deprives us of this much-desired, and benefi- cial change. Would the banks consent to leave this question to a vote in the towns and cities, and abide the issue ? If they would not, (which I doubt) it shows that legislation, whatever may be its con- stitutional powers, has not an effective power over these Corporations. They therefore, are above the legislature, independent of the constitu- tion, being its keepers, and expounders ; they are, in fact, the State, Now let us see what are the difficulties of controlling Corporations by legislative action, furnished by our author, and inquire, seriously, what are the chances of returning to correct principles ; which are the only hopes that we can rely on, for our future peace and pros- perity. On the subject of Dartmouth College, our author informs us, that the United States Court, under the charge of Judge Marshal, and with only one dissenting voice decided; that this ancient Corpora- tion held its privileges independently of the State of New Hampshire, where it is located, where it had its physical being, (its charter com- ing from England,) where it has received additional aliment from the colony, and the state ; and at most, the adopted child of the state ; necessarily condemned to a perpetual minority ; or destined to become the rival of its mother. To use the forcable language of our author : “ Thus the authority to regulate some of the most important civil institutions, and particularly that of education, in the higher branches of literature, and the sciences, — the control over those seminaries, where the citizens are educated, who are destined to till what are termed the liberal professions, and as ministers, lawyers, physicians, and men of letters, are to enter every city, town, hamlet, and family in the state, an I directly to influence the condition of society — is wrested from the states, and confided to irresponsible perpetuities, and thus made inde- pendent, within the limits of the state. With such latitudinous, and far-fetched constructions, the federal constitution is, whatever the fed- eral judiciary may please to make it ; and the states are, in fact, in pos- session of little more power than the bailiffs, who officiated in the fed- eral courts.” Here then we find a reason for dreading the power of chartered Corporations, somewhat stronger than any that I have suggested be- fore, in the control they now have over our legislatures ; for, after all, the Corporators who would become our masters, would be our fellow citizens. But the power claimed, and exercised over us by the fed- eral court, is a foreign power, which comes within ouf borders, to ex- ercise domiciliary visits, at the call, perhaps, of political traitors, or enemies to our religion, to support them in their nefarious efforts to poison the minds,' and corrupt the morals of the rising generation. All this we must see and suffer, but cannot remedy, because, in the opinion of the court, it would be the violation of a contract. It is surprising, that, during the agitation of the states-right ques- tions, a few years ago, the gentlemen of the South did not discover this weak side of state sovereignty. What, in fact, is a small tribute to 15 the Yankees, in a little extra duty on Negro cloths, when compared with the right claimed, and exercised by the federal court at Wash- ington; to support any institution, eleemosynary, or pecuniary, in the state of South Carolina, or any other state, which may see fit to ab- stract itself, — its moral agency, its political influence, its jurisdiction ; its demoralizing, anti-religious doctrines, its anti-republican doctrines, perhaps, against all state supervision and authority? and this under the plea, of such independent rights having been chartered, and a charter being a contract. Some alarm has occasionally been expressed, at the evident dispo- sition among a certain class of politicians, to convert this government from a federative to a consolidated form. And we seem not to be aware, how near they have come to the accomplishment of their de- sign. Their plan of campaign was admirably well projected. The United States Court constituted the grand staff, the chief justice the general; the bar of the states, the cavalry ; the bench, the artillery ; and banks and other Corporations, the line. The strategistical movements of this very intellectual and well- appointed army, have entirely escaped the observation of their oppo- nents; wuth the exception of one old soldier, who must have pen- etrated their designs, as we now learn by his counter movements. The plan was, by the irresistible agency of the U. S. Bank, when so chartered, to govern domestic and foreign exchange ; control, and finally destroy the state banks, when their aid might be no longer useful ; to multiply Corporations, through bank facilities,* as some of their latest acts evinced, by the favors granted them, to the prejudice of commerce; and thus command the whole capital, and rule the whole trading community. When all this should have been accomplished, the central pow- er of this innocent member of our government, the federal court, to which some of us have looked up to, as the palladium of our state rights, and of the federal union would have proved to us, that the states were subordinate to the multiplied institutions of their own cre- ation; and that they were all amenable to this omnipotent tribunal. The seat of government would have been removed to Philadelphia, (this the writer heard hinted at, three winters ago, in that city,) it being important to have the congress under the influence of fashion, and fear, to be found only in a large city. That city, already populous, would have soon become the rival of New York. I will not pre- tend to pry farther into the mysteries of this revolutionary campaign, which would probably, like other campaigns, have been governed, in some degree, by circumstances. Most of our civil acts, whether corporate, or individual, have some^ thing of the nature of contracts in them ; and this, alone, is enough to draw all such from the control of state authority to that of the U. S. court. Chief Justice Marshal had doubts, whether even the sacred contract of matrimony may not be made amenable to his court, in de- spite of state authority; and Judge Story has no doubts that such is the power of that court. 16 Our author concludes his remarks, by exhibiting a picture of con-' flicting powers in the state of New Hampshire, which is well calcu- lated to prove to the enemies of republican governments, the weak- ness, and uncertainty of this, the fairest experiment that has yet been tried. He shows us an existing and powerful Corporation in that state, of paramount influence over its destinies, moral, physical, and religious; exercising its independent functions, according to the ca- price, or private interest, of its trustees, however repugnant they may be to the interest and moral welfare of the state. And all this great sovereign power it derives from the decision of a foreign court, five hundred miles off. Now, I would humbly ask in case of dijffi- culty, to what power would this institution (Dartmouth College) lean ; to the central power in Washington, or the local power in New Hampshire ? Is it not the sworn vassal of the lord paramount in the capital ? is it not bound, in interest and in honor, to do homage to that power, under which it holds its feudal authority ? If this position be correct, in regard to this Corporation, that it nat- urally owes allegiance to its liege lord ; must it not follow that every Corporation, which pretends to hold its franchise as a contract, and a vested right, is in the same category of vassalage, as Dartmouth Col- lege. Now, the inference I would draw from these premises is, that we have unwittingly created a new order of things, never contempla- ted by the framers of our constitutions, by the introduction of this new power of corporations combined. They have called on the states, humbly, but treacherously, for arms, and ammunition, for the state ser- vice, and then enlisted in a foreign service. T hCorporations will and must cling to the U. S. conrt fof the maintenance of their privileges, be they beneficial to the states, of not ; their sympathies must be there. The principle of Corporations will not be denied ; it is based on privileges and exemptions. Money is the moving power ; but that must move, and act in masses ; other- wise it would be like scattered military forces without a plan of ope- rations. To move and act in masses, with an effective and success- ful design a head is necessary, I am aware ; and that head is yet want- ing. It is a power, strong and permanent to control the money and credit of the country. The conspiracy against the equal rights and liberties of the people is here defective. The hero of two wars, and theHercules, who cleansed the Augea of America from the contamina- tion of a bank, and banished its first groom, retires from his impor- tant and invaluable labors. It remains to be seen whether this same moving hank spirit will not return ; or some other leader of the mon- ey-power, duly authorized, will not force his way into the citadel, by dint of Gold. If this ever occur, I humbly ask leave to record here my opin- ion — nay, my prophecy, — that we shall then exhibit to the world a government, such as the world never saw before. What will follow it no man can tell, for history is dumb on this subject, and offers noth-^ ing analogous. But it will not be a government of majorities. IT But very probably would be a goyernment composed of a successioif of individuals brought up amid all the little degrading tricks, prevarica" tions, and artifices, which are the common means of acquiring riches. Such a state of society would almost lead even democrats, to wish for a restoration of the laws of entail and primogeniture; for an aris- tocracy by birthright, would at least be free from the little grovelling vices of a class of men without a liberal notion, or an idea beyond dollars and cents, or tare and tret. It would be a government of vul- gar aristocracy, in place of a refined aristocracy. It would have none of the redeeming qualities which individual human sympathies allow of, even in despotic governments ; all the channels of the natural and kind impulses of humanity would be closed to it; for the very essence of its constitution Avould be found the cardinal mriue of Corporations, They, it is well known, are heartless, devoid of sympathies; and, moreover, ought to be so, and have no right or lawful power to be otherwise. Chivalry and a nice sense of honor, have often proved to be useful checks to some of the worst passions of man. But how could chivalry and refined honor he expected in bodies where their exercise would be a crime against the constitution of those bodies, and where chivalry and refinement of any sort, would be things unknown to the constitu- ent parts of those bodies ? I know of but two durable governments possible for this or any other country ; the one is a Despotism, and the other is the Goveriir ment of the whole people, fairly and honestly represented.. 3 ^