It was not until about the middle of the 16th cen tury that it was settled as a matter of positive law that the corporation must be created by the sover eign power, which rule arose simply from consid erations of political expediency. Recognizing that boroughs, organized communities and gilds might become dangerous, tbe king made them a source of revenue by selling the privilege to exist. In 1440 the first municipal charter was granted. The may or, burgesses and their successors, mayors and bur gesses of the town of Kingston-upon-Hull, were in corporated so as to form "one perpetual corporate commonalty." 19 Harv. L. Rev. 350.
"What we call a corporation was first called 'un corps' or a body, whence our 'body politic,' or 'body corporate'; or 'un gros' or something that had an existence in itself, apart from its constituents. Thus there was gradually evolved the idea of an abstract artificial individuality, composed of mem bers for the time being, to be succeeded by others after them, but continuing after their death. This became the persona 'Zeta of a later time." A. M. Eaton in 1902 Amer. Bar Assoc. Repts. 320. Refer ring to the earlier historical days, the same author says, (p. 322): "There was no intention on either Part to form a corporation, indeed neither knew what a corporation was; for the name did not exist, but the thing itself was being gradually evolved." For the history of corporations before 1800, see Williston, 2 Harv. L. Rev. 149 (3 Sel. Essays in An glo-Amer. L. H. 195); Baldwin, History of Private Corp., 3 Sel. Essays in Anglo-Amer. L. H. 236.
For centuries the leading case on corporations in England was the case of Sutton's Hospital, 10 Co. 1 (1612), where the king, on the petition of Sutton, bad granted a charter to a hospital. Sutton con veyed land to such corporation. Against the con tention of the heir that there was no corporation and that the conveyance was void, it was held that both the incorporation and the deed were valid and that the incorporation of the persons might pre cede the foundation of the hospital; 21 Hero. L. Rev. 305.
It was considered at that time that corporations aggregate could not commit treason, nor be out lawed nor excommunicated, for they have no souls. Neither can they appear in person, but by attor ney; they cannot do fealty, for an invisible body can neither be in person nor swear ; 10 Coke 32 b. Blackstone said it can neither maintain nor be de fendant to an action of battery or such like personal injuries, for a corporation can neither beat, nor be beaten, in its body politic ; 1 Bla. Com. 476. It could not be executor or administrator or perform any personal duties, for it could not take an oath ' for the due execution of the office; id.
The fiction that a corporation can do nothing but by an attorney, that it was an artificial being, guarded by the body of associates forming it, led to the theory that its administrative officers could exercise only a delegated authority; 21 Harv. L. Rev. 535. It is said that under the pressure of mod ern analysis this fiction tends to yield to more ra tional ideas, and corporate action is perceived more truly as simple group action; id. A corporation represents tbe most advanced attainment of the group idea; 19 id. 360.
The first business corporate charter in the United States was in 1768: "The Philadelphia Contribu tionship for Insuring Houses from Loss by Fire."
Aggregate corporations are those which are composed of two or more members at the same time.
Civil corporations are those which are created to facilitate the transaction of busi ness.
Ecclesiastical corporations are those which are created to secure the public worship of God.
Eleemosynary corporations are those which are created for the purposes of charities, such as schools, hospitals, and the like.
Lay corporations are those which exist for secular purposes.
Municipal corporations are those created for the purpose of administering some por tion of the government in a political sub division of the state, as a city, county, etc.
Private corporations are those which are created wholly or in part, for purposes of private emolument. Trustees of Dartmouth College v. Woodward, 4 Wheat. (U. S.) 668, 4 L. Ed. 629; Bank of United States v. Bank, 9 Wheat. (U. S.) 907, 6 L. Ed. 244.
Public corporations are those which are exclusively instruments of the public inter est.
Corporations sole are those which by law consist of but one member at any one time; as a bishop in England. But see infra; also supra.
In the Dartmouth College Case, 4 Wheat. (U. S.) 666, 4 L. Ed. 629, Mr. Justice Story defined the various kinds of corporations as follows : "An aggregate corporation at common law is a collection of individuals united into one collective body, under a special name, and possessing certain immunities, privi leges, and capacities in its collecti'v char acter, which do not belong to the natural persons composing it. . . . A great va riety of these corporations exist in every country governed by the common law ; . . some of, these corporations are, from the particular purposes to which they are de voted, denominated spiritual, and some law ; and the latter are again divided into civil and eleemosynary corporations. Eleemosy nary corporations are such as are constitut ed for the perpetual distribution of the free alms and bounty of the founder. . . . In this class are ranked hospitals, and col leges, etc. Another division of corporations is into public and private. Public corpora tions are generally esteemed such as exist for public and political purposes only, such as towns, cities, etc. Strictly speaking, pub lic corporations are such only as are found ed by the government for public purposes, where the whole interests belong also to the government. If, therefore, the foundation le private, though under the charter of the Government, the corporation is private. . . . For instance, a bank created by the Government for its own uses, whose stock is exclusively owned by the government, is, in the strictest sense, a public corporation. So a hospital created and endowed by the government for general charity. But a bank, whose stock is owned by private per sons, is a private corporation. . . . The same doctrine may be affirmed of insurance, canal, bridge, and turnpike companies. In all these cases, the uses may, in a certain sense, be called public, Nit 'the corporatidns are private. . . . This reasoning applies in its full force to eleemosynary corpora tions. . . . This is the unequivocal doc trine of the authorities; and cannot be shaken but by undermining the most solid foundations of the common law." Kent divides corporations into ecclesias tical and ]ay, and lay corporations into eleemosynary and civil; 2 Kent 274.