140 
Urdahl—Historical Survey of Fee Systems. . 
used equally well for any kind of a corporation . 1 When ob¬ 
tained, these franchises would be sold to anyone wishing to buy. 
In this way a bill might be passed without debate or delibera¬ 
tion which would be instrumental in creating corporations with 
powers and privileges dangerous to the general public. 
In the second place, it was a period of intense industrial 
activity. Corporations were needed everywhere to carry on the 
railroad and canal-building, shipping and other industrial en 
terprises. Finally, the decision of the Supreme Court in the 
Dartmouth College case, holding that the privileges granted 
away by means of these special charters could not be altered or 
resumed by subsequent legislation, led up to constitutional 
amendments reserving power to the state to alter and amend 
all charters. All these things may be said to have been the 
causes that brought about general incorporation laws prescrib¬ 
ing the method of procedure which a body of persons must follow 
in order to become incorporated. Comparatively few states, 
however, had reached this stage before the war . 2 
The significant part of most of these general incorporation 
laws is the fact, that a regular incorporation fee is charged, 
small in amount at first, but gradually increasing until it be¬ 
comes the fee which is at present known as franchise taxes, 
charter fees, incorporation charges, and by many other desig¬ 
nations. A little thought will convince anyone that the char¬ 
ters were not obtained for nothing, even when they were 
granted by special acts. Very often more than the amount at 
present paid as fees, had to be expended in one way or another 
to secure the passage of the special act. In one sense it may 
therefore be said that the general law took the fees out of the 
politician’s pocket, and turned them into those of some public 
officer and sometimes into the public treasury. 
1 The notorious Credit Mobilier owed its existence to a charter obtained 
in this way. 
2 Connecticut passed a general incorporation law in 1845. A New Jersey 
incorporation law dates back to 1811. 
