Page:Henry Osborn Taylor, A Treatise on the Law of Private Corporations (5th ed, 1905).djvu/219

 PART II.] ACTS WITHIN THE CORPORATE POWERS. [§ 236. ity cannot borrow money and bind the corporation to repay it ; a nor can he mortgage corporate property, or confess judgment on behalf of the corporation ; 2 nor has he authority to begin an action in the name of the corporation, 3 or employ counsel. 4 Neither has the president of a railroad corporation power to appoint an agent to sell its lands ; and sales made by an agent appointed by the president will not bind the corporation ; 5 nor has the president authority himself to sell lands of the corpo- ration. 6 Likewise, the president of an insurance company has no authority ex officio to indorse and negotiate a note belonging to it. 7 And when by the charter the management is intrusted to the board of directors, the president and cashier, unless specially authorized, have no power to assign choses in action of the corporation in payment of an antecedent debt, or to do any act requiring the use of the corporate seal, 8 and the lack of authority in the affixing of the seal may be shown by the cor- Muller, 102 Wis. 525. But compare Hayiier v. Am. Popular Life Ins. Co., 3 J. & Sp. (X. Y.) 266; Eureka Iron Works v. Bresuaban, 60 Mich. 332. 1 Life and Fire Ins. Co. v. Mechanic Fire Ins. Co., 7 Wend. 31; Fifth Ward Savings Bk. v. First Nat. Bk., 47 N. J. L. 357. See City El. Ry. Co. v. Nat. Bk., 62 Ark. 33. In an action against an incorporated bank, decla- rations or admissions of its presi- dent are not admissible to establish liability against it. Henry v. North- ern Bank, 63 Ala. 527. See Hodge v. First Nat. Bk., 22 Gratt. 51. 2 Stokes v. New Jersey Pottery Co., 46 N. J. L. 237; Benuett v. Keen, 59 N. J. Eq. 634; England v. Dearborn, 141 Mass. 590; Alta Silver M'g Co. v. Mining Co., 78 Cal. 629; although he own most of the stock; same cases. 8 Ashuelot Mfg. Co. v. Marsh, 1 Cosh. 507. But see American Ins. Co. v. Oakley, 9 Paige, 496; Mumford v. Hawkins, 5 Denio, 355. 4 Brightly v. Metairie Cemetery Ass'n, 33 La. Ann. 58; see Bridge- port Savings Bk. v. Eldridge, 28 Conn. 556; Pacific Bank o. Stone, 121 Cal. 202; and cases in the last note. Contra, Coleman v. Oil Co., 25 W. Va. 148; Nat. Bk. v. Berry, 53 Kan. 696; Beebe v. Beebe Co., 64 N. J. L. 497. See Wetherbee v. Fitch, 117 111. 67. Later cases recognize the authority of a president to institute suit. Reno Water Co. v. Leete, 17 Nev. 203; Guernsey v. Coal Co., 99 Iowa, 471. 5 Chicago, etc., R. R. Co. v. James, 22 Wis. 194. 6 Bliss v. Kaweah Co., 65 Cal. 502; McKeag v. Collins, 87 Mo. 164. 7 Marine Bank v. Clements, 3 Bos. (N. Y.) 600. But see Clark v. Tit- comb, 42 Barb. 122; Scott v. John- son, 5 Bos. (N. Y.) 213. 8 Hoyt v. Thompson, 5 N. Y. 320; see England v. Dearborne, 141 Mass. 590; Norton v. Ala. Nat. Bk., 102 Ala. 420. Compare Hadden u. Linville, 86 Md. 210. But it is held that a president may satisfy a judgment in favor of the corporation. Booth v. Farmers and Mechanics 1 Nat. Bk., 50 N. Y. 396. 199