personal property not held in trust, and use her realty while he
lived. Except for necessaries or for her separate estate, she could
not contract. Her emancipation began in 1839, in Mississippi, and now
her property, under the statutory interests secured to her by laws
generally prevailing, is hers free from control or interference. This
statutory estate includes property inherited, or derived by purchase
or gift, or in some States by labor. The wife’s power to contract has
been extended, and in some States has little restriction beyond perhaps
inability to become surety. Before this era, some States, acting on
a London custom, had allowed feme sole traders in cases of mariners’
wives, or of desertion or neglect.
X. CHILDREN.—Regulation of the labor of children in hours and
employments is usual, debarring them from workshops and factories at
certain ages and from occupations dangerous to their morals, as in
theatricals, circuses, rag picking, mendicancy, street music. Laws
prohibit their entrance into gambling, or worse, houses, into pool
rooms, or unaccompanied into dance or concert halls, roller rinks,
vaudeville theatres. Minnesota excludes them from criminal trials. Sale
of liquor to minors is prohibited. Numerous recent statutes prohibit
sales of cigarettes, cigars, or tobacco, and Utah and West Virginia
forbid sales of opium. Oregon and Rhode Island prohibit their public
use of tobacco. New Hampshire, Indiana, and Connecticut forbid children
over three in almshouses. North Carolina makes it a misdemeanor to
leave a child under seven, and unattended, exposed to fire. Prohibiting
employment inconsistent with school attendance is usual. Compulsory
education exists in twenty-nine States and two Territories, and largely
throughout Europe and the colonies. Fourteen is the more frequent limit
of age. Children’s welfare now determines their custody, rather than
the rights of either parent. Laws in some States protect children more
or less from wills made before their birth by parents. Many States
provide that bastards may inherit from their mother or from each other,
and she from them, and that their parents’ marriage legitimates them.
XI. REAL ESTATE.—Ownership of land is no longer embarrassed by
joint tenancies, nor need conveyancing resort to cumbrous fine and
recovery; while transfer has been further lightened by title companies
pending the adoption, likely, of the Torrens system of registration
and certificate. Democracy has rejected distinctions of sex or age in
inheritance, and the half-blood may share in many States after certain
degrees. Disability of aliens to hold lands has been removed in some
States, in others there are limitations in acres, value, or time, while
in some disability ceases on declaration of intention to become a
citizen. The English doctrine of tacking, whereby ownership of earlier
and later incumbrances cut out intermediate titles, mortgages, etc., is
inconsistent with the American recording acts.
XII. COPYRIGHT.—After printing became general, the author received
some, if inadequate, protection, in England through the Stationers’
Company, or sometimes through particular privilege; in continental
countries, through such privilege. The statute of Anne confined him to
such years, etc., as it specified, and the courts have decided with
hesitation that there was no copyright at common law. The statutory
rights have varied. Since 1831 the copyright period in this country
is 28 years, with 14 more if author, widow, or children are living at
expiration of first term; and in England since 1842 it is 28 years or
author’s life, whichever is longer.
The first known copyright directed to an author was granted by Venice
in 1491. In 1791 France allowed copyright to all dramatists, extending
it in 1793 to authors in general. Countries in sympathy with France
adopted the policy. Prussia in 1794 extended copyright to authors
represented by publishers at the Frankfort and Leipzig book fairs.
General protection has now come about, aided by consolidation of
European states into great nations. International copyright began with
separate treaties; and the movement culminated in the Berne Convention
of 1887, participated in by Germany, Belgium, Spain, France, Hayti,
Italy, Switzerland, Tunis, Great Britain, Liberia. Authors resident
in any country which was a party to the Convention may have copyright
in the other countries. The United States did not join, although it
had and since has had treaties with a few nations exchanging such
protection. The International Copyright Law of 1891, however, protects
foreign authors but not foreign publishers, it being required that the
printing shall be done in this country.
XIII. ADMIRALTY.—The difference between the majestic rivers of
America and English streams was recognized in the case of “The Genesee
Chief,” wherein the Supreme Court rejected the English doctrine that
admiralty has no jurisdiction except on the seas or where the tides
ebb and flow. This has insured uniformity in the regulations of travel
and commerce, and has protected such waters from local interference.
International rules to prevent collisions at sea have been joined in
by the United States. By acts of 1851 and 1884, Congress relieved
innocent shipowners of liability for merchandise destroyed by fire, and
provided that liability in case of collision, embezzlement by crew,
etc., shall not exceed the owner’s interest. The Harter Act of 1893
provides that on due diligence neither owners nor charterers shall be
liable for faults in navigation or in management, nor for perils of the
sea, defects in goods, etc., but prohibits agreements relieving from
liability for injuries caused by neglect in fitting out, provisioning
and manning the vessel, stowing the cargo, or in caring for or delivery
of the same. Parliament, in 1890, protected seamen from commercial
greed by requiring load lines to be marked on vessels at a height fixed
by the Board of Trade.
XIV. CORPORATIONS.—The source of corporate life was formerly the king;
to-day, the charters are virtually the general corporation law, and
special incorporation is forbidden. For a season, minor amendments for
particular companies were tolerated, but constitutions are forbidding
even these. Applications for charters must state such particulars
as name, nature, and place of business, amount of stock, limit of
indebtedness, number and names of directors. Annual reports must be
lodged with the tax authorities.
Doctrines respecting corporations have wonderfully changed. The
Dartmouth College case held that charters were contracts and could
not be impaired; and thereafter, by constitution or otherwise, the
States provided that all new charters should be subject to alteration
or repeal, although even this does not authorize radical change
of corporate character. American law has recognized advantage of
freedom in execution of corporate affairs. It has dispensed with the
burdensome requirement of seal to contracts, and even in England the
corporate seal is unnecessary, unless in unusual transactions. The
American courts uphold negotiable notes and bonds given in authorized
business. The company is confined to the business for which it was
created, although a cautious tolerance exists in respect to related
enterprises; and mortgages may be acquired if for debts contracted
previously and not as a device. The old theory was that a company
could not be held for misfeasance, since it could not authorize its
agents to commit wrong; but corporations are now held for many torts
sanctioned by them, such as trespass, assault and battery, infringement
of patents, negligence, and even fraud and libel. Exemplary damages may
be awarded against them. One or another kind has even been subjected to
indictment, in cases of nuisance, violation of Sunday law, maintenance
of disorderly house, habitual omission of lights or signals, etc.
They may be guilty of contempt. They may be punished by penalties and
forfeitures.
A corporation outside its own State cannot exceed either its own
charter or the power granted like companies of the other State.
Connecting railways are sometimes adopted in each of several States,
but the parts remain foreign to each other as respects jurisdiction
in the federal courts. Foreign corporations are subject to the police
power, but not to interference by the State in their interstate
commerce, except Congress so authorizes. Companies not engaged in
interstate commerce nor in governmental service may have conditions
placed upon their entry into a State, and may be practically excluded
by taxation. Property within the foreign State is alone taxable there,
but the value of the franchise may be considered. Usually, statements
are required showing location of agent, names of officers, etc.
Contracts made before compliance are differently regarded, being void
in some States, and only until compliance in some others, and in some
not void at all where penalty is imposed. Some States seek revenue by
lax laws inviting outside companies. Thus, by Delaware law of 1899,
companies need not oblige themselves to keep their original books nor
hold their meetings there, assessment beyond subscription is forbidden,
and taxation is light.
[Illustration: STATE, WAR AND NAVY BUILDING, WASHINGTON, D. C.]
In 1825 and 1827 the free organization of trades-unions and banking
associations was authorized, and thus was introduced into English
jurisprudence the principle of free association familiar to the Roman
Republic. In 1838, but more especially in 1844, limited partnerships
with transferable shares were authorized by general law; and in 1862
freedom from liability beyond subscription was somewhat recognized.
A form of partnership, _société anonyme_, has been known in France
for six hundred years, and by law of 1867 may be organized without
special leave. The managers alone assume full responsibility, and the
association bears now a company name. Germany adopted the principle of
general incorporation in 1870, as have the greater nations, excepting
Russia and Austria.
So early as 1784 New York enacted a general incorporation law for
churches, and for libraries in 1796. In 1811, woolen, glass, and some
other manufactures were thus favored. The principle widened out, was
adopted elsewhere, and became quite general by 1850. Pennsylvania
adopted the policy in 1874, although its religious, library and
charitable organizations had enjoyed such law since 1791.
XV. RELIGION.—Scorned, lashed, thrown into prison, his tongue cut out,
banished to savage woods, such was the fate of the Massachusetts Quaker
among the first settlers, and Roger Williams shared little better. A
long stride had been taken when, in 1691, the Massachusetts charter
proclaimed liberty of conscience for all “except papists.” Then was
the brave and gentle Penn securing religious liberty to all confessing
one God. Yet much further progress was essential. Roman Catholics were
excluded from office except in New York and Maryland; while even in
Pennsylvania no Jew could sit in the legislature. Most of the States
required some religious test for higher offices; Massachusetts allowed
no voters or officials outside of the Congregational church; and church
membership was essential in Connecticut and New Hampshire. In 1776
Pennsylvania admitted to the legislature any who believed in God and
in a future state of rewards and punishments. Massachusetts threw down
the barriers to office in 1780, except that until 1821 the governor
should be of the Christian faith; but office-holding was limited to
Protestants in North Carolina until 1835, and in New Hampshire until
1877. Jews received the same rights as other sects in Connecticut in
1843, in Maryland in 1825. The Virginia Bill of Rights declared that
all are entitled to the free exercise of religion, and a few years
afterwards, in 1786, proclaimed further in words written by Jefferson
that religious opinions shall never affect civil capacities, and that
no man can be compelled to support religious worship. The Lake region
was secured from molestation for religious sentiments by the Northwest
Ordinance of 1787, and the Constitution not only secures all from such
interference by Congress, but prohibits religious test for federal
offices or establishment of religion by Congress. South Carolina made
the Episcopal the State church in 1776, but dropped establishment
in 1790. Support of religion was likewise abolished in Maryland in
1810, but continued in Massachusetts until 1833; and New Hampshire
authorizes public Protestant teachers of religion. Maryland, Kentucky,
and Tennessee exclude clergymen from office. Political hierarchies
and polygamy are not within constitutional protections. Courts have
declared Christianity part of the common law; but in present law its
force is in its principles. Christian institutions, in common with
other religious or charitable agencies, are favored in policies and
exemptions; and blasphemies, like railings in general, are forbidden.
Bible reading in public schools is generally discretionary with the
school board, although held illegal in Wisconsin; but religious garbs
may not be worn in such schools by teachers. A public hospital may not
be erected on sectarian ground.
The English corporation and test acts excluded from office all without
the established church, until 9 George IV.
XVI. SUMMARY OF ADVANCE.—Increased respect for the rights of others,
both individually and as nations, characterizes the law of this
century, and may be perceived in every direction. It has created a
new international law, developed democratic institutions at home and
abroad, almost revolutionized criminal jurisprudence, extended the
police power in every direction, and secured freedom of conscience
and separation of church and state. It has emancipated woman, thrown
a protecting care over children, and favored charities, asylums,
houses of refuge. Imprisonment for honest debts has been abolished,
and the wretched sight of debtors imprisoned for paltry sums no
longer reproaches society. Homestead and exemption laws preserve the
family. Honest bankrupts are again lifted up in hope. The legal means
of settlement and recovery of rights has been greatly expedited.
England has followed America in making lands assets for payment of
debts; and claims against the State have received recognition in some
of the States and under act of Congress, and likewise in England.
Barriers excluding persons as witnesses have been broken down, first
in Connecticut in 1848, next in England in 1851, and now there is
little exclusion unless the adversary has died. Something had been
done before in compelling answers to written interrogatories, but with
a weakness and lack of logic that should have ridiculed the whole
exclusion. Promotion of uniformity of laws has engaged the attention
of State commissioners, who have drafted a code concerning negotiable
instruments which has been adopted in four States. Constitutional
amendment has afforded an entire race opportunity to develop from
the low estate of slavery into such condition as the future shall
manifest. Questions of civil rights, due process of law, and of equal
protection and privilege, are constantly bringing State laws before the
federal courts, as do questions of interstate commerce. Anti-pool and
anti-trust enactments mark both federal and State law, and lately have
broken up the alliance of the trans-Missouri transportation companies.
Inheritance and succession taxes were imposed in Pennsylvania in 1826,
and now are found in some dozen States. The progressive feature, or
increase of rate with increase of estate, has been sustained by high
authority. Congress has imposed such taxes, but its power to do so is
in dispute before the United States Supreme Court.
[Illustration: PORTIA AND BASSANIO.
(Trial Scene from “Merchant of Venice.”)]
In the early days of the republic property requirements existed both
for office and for voting. New States came in with manhood suffrage
established either by law or custom. Original States threw open the
polls,—Maryland in 1810, Connecticut in 1818, New York in 1821,
Massachusetts in 1822. The white labor of Virginia was denied the
suffrage in 1830, but gained it in 1850. Similar movement in England
is marked by the Reform Bill of 1832; and now manhood suffrage is
universal in Germany, France, and Greece, and wellnigh so in England.
EVOLUTION OF BUILDING AND LOAN ASSOCIATIONS
BY MICHAEL J. BROWN,
_Secretary of Building Association League of Penna._
I. GENERAL PRINCIPLES.
“Do not forget to pay your dues to-night,” is an expression familiar
to the occupants of fifty thousand Philadelphia homes, one hundred and
fifty thousand Pennsylvania homes, and six hundred and fifty thousand
households in the United States. This means that nearly seven hundred
thousand families are contributing towards gaining homes of their own
through Building and Loan Associations. The entire membership is nearly
seventeen hundred thousand, of whom fully four hundred thousand are
women and children.
The picture “Paying their Dues” is a representative one, and in
Philadelphia there are four hundred and seventy-five such gatherings
every year. The Philadelphia associations generally meet once every
month, but in some parts of the State, and in other States, many
societies meet weekly, so there are fully ten thousand such gatherings
every twelve months in the United States.
The women have shares in their own right, and the children are either
paying dues for their parents or for themselves, the father or mother
acting as trustee. The boys and girls know exactly what nights the
associations meet, and are generally on hand with their money long
before the officers are ready to receive the funds and give receipts in
the pass books.
What is the meaning of these gatherings? To enable every member to
become his own landlord—to purchase homes for themselves, by paying
their money into a joint concern for a few years until each one has
saved enough, with gains added, to buy a home, and in the meantime the
entire receipts being loaned to the members to gain homes in advance of
the final reckoning or maturity of the shares.
The members have well learned the principle that money makes money if
well used, that if many pay rent for the benefit of the few, through
the building association the many may combine together so as to put the
rents into their own pockets.
II. THE SYSTEM.
For convenience, “a share” is the payment of $1.00 a month, five shares
$5.00, and so on. The final value of a share is arbitrarily fixed at
$200. The money received is promptly loaned to the members, on which
the borrowers pay $1.00 per month interest on every $200 borrowed,
until the final value of $200 is reached, which occurs in twelve years
or less.
Payments $144.00
Gains 56.00
-------
Final value $200.00
A member may have borrowed $2000 from the association on ten shares
of stock ($200 being the limit loaned on each share), and the shares
having matured, or become worth $2000, his loan of $2000 is canceled
and his home is free. The member who has not borrowed receives $200 in
cash for every share he holds.
The building association in its simplest form, and as it existed in
Philadelphia for many years, took all its members in at one time, and
the members paid from $2 to $20 each every month until the shares
matured. At maturity all the borrowers received canceled mortgages, and
the non-borrowers cash for their shares, and the society then closed
its affairs. Hundreds of such associations have wound up their affairs
successfully.
Very many associations are now working on the permanent plan; that is,
they admit new members every six months or every year, the first set
being the first to mature, and so on, one set going out every year and
a new batch coming in.
Each series is a separate association so far as the dues are concerned,
but the total gains are divided so as to give each dues dollar invested
a like rate per cent per annum for the time of investment. There is
really no positive or final division of profits. The gains are kept
in a lump sum, and the division is on paper only for the purpose of
showing the progress made towards maturity. When a set of shares
matures, its portion of the gain is taken from the accumulated profits
and divided to the stock that has reached its final value.
Some associations count all the loans as assets and all the dues and
gains as liabilities. In such societies the borrower pays interest on
his full loan until the end, and gets credit for profit on his dues
until one account cancels the other.
Other associations, at the end of each year, deduct the dues paid in
from the loans and charge interest on the net amount only of the loan.
By the latter system the borrowers’ payments decrease every year, but
it requires a longer time to finally cancel the loan than by the former
system.
When there is a demand for money, and more than one member is anxious
to secure it, the funds are offered at auction, and the member who bids
the highest premium secures the prize.
The bidding is generally done by offering so many cents per share per
month above the required interest. If a member secures $2000 at 10
cents per share premium on ten shares, his monthly payments are:—
Dues per month $10.00
Interest per month 10.00
Premium per month 1.00
------
Total $21.00
These payments continue until the shares mature. The dues are the
contributed capital, and the interest and premiums are the gains.
III. THEIR EARLY HISTORY.
Their early history in England seems to date back as far as 1781. In
Mr. Langford’s “Century of Birmingham Life” mention is made of certain
proposals for establishing a society for building on lands belonging to
William Jennings, Esq. The society was organized by rules or articles,
similar in some respects to those employed by the building societies of
to-day.
[Illustration: PAYING THEIR DUES.]
Dr. John Henry Gray, in his “History of the Laws, Manners, and Customs
of the People of China,” describes some money-lending societies
which seem to partake in some measure of the character of building
associations, at least in their coöperative and equitable features.
He tells us that these societies are called “Lee Woee,” and were
instituted by a person named Pong Koong, an official of great wealth,
who flourished 200 B.C. during the Han dynasty. The money was loaned to
members and returned in monthly installments with interest. Each member
was compelled to contribute to the fund a sum equal to that which he
contributed at the first meeting. One of the rules was, “Each member
shall deposit in a lottery box, placed on a table, a tender or bid for
the money, setting forth the rate of interest which he is disposed to
pay on the amount in question; that the tenders shall be taken out of
the box by the president, and the highest bidder takes the loan.” When
two bids were alike the first bidder took the loan. A fine was charged
for non-payment of dues.
IV. AMERICAN ASSOCIATIONS.
There is no evidence other than that Frankford, now a part of
Philadelphia proper, saw the first building society that was organized
in the United States. It was called the “Oxford Provident Building
Association,” and was started in 1831, sixty-eight years ago. It
closed its affairs in June, 1841. The second Frankford society, of the
same name, was organized in February of 1841, and ran out in August,
1852. Isaac Whitelock was president, Samuel Pilling treasurer, and
Isaac Shallcross secretary, of the first association; and Henry Taylor
president, Isaac Shallcross secretary, and William Overton treasurer,
of the second association.