Smith v. Eureka Flour Mills Co.
California Supreme Court
Appeal from the District Court of the Twelfth Judicial District. This was an action brought on a promissory note, of which the following is a copy: $5,000 00. San Francisco, Aug. 5th, 1854. On the fifth day of January, 1855, the Eureka Flour Mills Company promises to pay to the order of R. Chenery Five Thousand Dollars, for value received, with interest of three per cent, per month.
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Appeal from the District Court of the Twelfth Judicial District. This was an action brought on a promissory note, of which the following is a copy: $5,000 00. San Francisco, Aug. 5th, 1854. On the fifth day of January, 1855, the Eureka Flour Mills Company promises to pay to the order of R. Chenery Five Thousand Dollars, for value received, with interest of three per cent, per month. The property of the Company only is pledged for the payment of this note, without recourse in any event to the private assets of the stockholders. (Signed) I. Friedlander, President. Charles L. Case, Secretary.…
1Opinion of the Court
The opinion of the Court was delivered by Mr. Justice Heydenfeldt.
Mr. Chief Justice Murray concurred.
1. The policy of this State has altered the rigidness of the Common Law which disabled a corporation from making a contract except under its corporate seal. The act of incorporation, instead of being as form*7erly a favor granted by the sovereign to the subject, has under our system become a matter of right available under general laws. Under those laws the power of corporations to create debts is treated as an incident to the express powers, and not as in itself one of the express powers. This…
2Cases cited1 opinion
- Magee v. Mokelumne Hill CanalCalifornia Supreme Court · 1855
3Cited by6 opinions
- Union Water Co. v. Murphy's Flat Fluming Co.California Supreme Court · 1863
- Hunt v. City of San FranciscoCalifornia Supreme Court · 1858
- Eckel v. Springfield Tunnel & Development Co.California Court of Appeal · 1927
- Alabama & C. R. v. JonesUnited States Circuit Court · 1871
- Millard v. St. Francis Xavier Female AcademyAppellate Court of Illinois · 1881
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