12 BULLETIN 110 6, U. S. DEPARTMENT OF AGRICULTURE 
lar facts was called the charter. At this time when corporations 
are created under general statutes, the paper (whether called articles 
of association or articles of incorporation or certificate of incor- 
poration) that is signed by those desirous of being incorporated, the 
incorporators, is commonly looked upon as the charter after its accept- 
ance and approval by the official of the State to whom application 
for incorporation is made. 
The charter is really much more than the articles of incorpora- 
tion. It '* consists of the provisions of the existing State constitu- 
tion, the particular statute under which it is formed and all other 
general laws which are made applicable to corporations formed 
thereunder, and of the articles of association or incorporation filed 
thereunder, or the charter or certificate of incorporation granted by 
the court or officer in compliance with its terms; and its powers, 
rights, duties and liabilities are determined accordingly.'' 46 The fore- 
going definition makes it clear that the rights, powers, and liabilities 
of a corporation can not be determined merely by reference to the 
articles of association and that the charter is something more than 
a paper. 
An association should confine its operations to those activities 
that are authorized by its charter. If an association, for instance, 
is incorporated to handle one kind of tobacco, it is without authority 
to handle another kind. 47 If an association under the statute under 
which it is formed may do business only with members, it is without 
authority to do business with nonmembers. 48 If an association 
engages in a business or activity not authorized by its charter, any 
member of the association who does not consent thereto can obtain 
an injunction restraining the directors and officers from such course 
of action. 49 In addition, the State can prevent the doing of the 
unauthorized business and in a proper case can revoke the charter 
of the association on account thereof. 50 
It is believed that all of the States have provisions in their statutes 
or constitutions relative to the revocation of charters of corporations. 
Independent of such provisions, it is generally held that if an associa- 
tion or other corporation violates the laws of the State in the conduct 
of its affairs, the State that granted the charter may revoke it. 51 
Those receiving the charter receive it on the implied condition that 
it will be used for lawful purposes only. It is apparent that a 
State would never create a corporation to violate its laws; hence 
revocation of a charter for the violation of such laws appears rea- 
sonable. 
BY-LAWS 
The adoption of by-laws is a matter which is taken up after the 
creation of an association. The power of a corporation to make by- 
laws exists at common law. Frequently, however, it is given by the 
charter or statutes. The statutes of some of the States require that 
«u c. J. 117. 
* 7 Brame et al. v. Dark Tobacco Growers' Co-op. Ass'n. 212 Kv. 18t>, 2TS S. W. 507. 
^American Live Stock Commission Co. v. United States. 28 F. (2d) 63, U S. 
, 49 S. Ct. 425. 
* 9 Arkansas Cotton Growers' Co-op. Ass'n v. Brown. 168 Ark. 504, 270 S. W 946 1119 
^People ex rel. Clark v. Milk Producers* Association of Central California. Inc., 60 
Cal. App. 439. 212 P. 957. 
51 Hadley, State ex. inf. r. Delmar Jockey Club. 200 Mo. 34, 92 S. W. 1S5, 98 S. W. 
639 ; State v. Thistle Down Jockey Club, 114 Ohio St. 5S2, 151 N. E. 709. 
