A corporation may lease a portion of its real estate to its directors subject to ratifica tion by the stockholders ; Nye v. Storer, su pra. See also Gamble v. Water Co., 123 N. Y. 91, 25 N. E. 201, 9 L. 11: A. 527; Bjorn gaard v. Bank, 49 Minn. 483, 52 N. W. 48.
As to the nature of the interest and lia bility for rent under gas and oil leases, see GAS; OIL. See generally LANDLORD AND TENANT.
Individuals who sign a lease to a fictitious corporation as officers of it are individually liable on the lease though it is under seal; Schenkberg v. Treadwell, 94 N. Y. Supp. 418.
Lease of railroad. A lease by a railroad company of all its road, rolling stock, and franchises, for which no authority is given in its charter, is ultra, vires and void; Thom as v. R. Co., 101 U. S. 71, 25 L. Ed. 950, the leading case. The decision is based upon the ground that such a company exercises its functions in a large measure for the pub lic good, and that it is forbidden by public policy to disable itself to perfdrm its duties to the public without the consent of the state ; id. The ordinary clause In a charter authorizing the company to contract with other transportation companies for the mutu al transfer of goods and passengers over each other's roads does not authorize a lease of the road and its franchises; id. Unless spe
cially authorized by its charter or some leg islative action, a railroad company cannot, by lease or other contract, turn over to an other company for a long period of time its road and appurtenances or the use of its franchises and the exercise of its powers, nor can any other railroad company make a con tract to run and operate such road, property, and franchises. Such a contract is not among the ordinary powers of a railroad company ; Pennsylvania R. Co. v. IL Co., 118 U. S. 290, 6 Sup. Ct. 1094, 30 L. Ed. 83 ; Mem phis & C. R. Co. v. Grayson, 88 Ala. 572, 7 South. 122, 16 Am. St. Rep. 69; Middlesex R. Co. v. R. Co., 115 Mass. 347; State v. R. Co., 24 Neb. 143, 38 N. W. 43, 8 Am. St. Rep. 164 ; Black v. Canal Co., 24 N. J. Eq. 455. "If it were otherwise, a railroad company, by leasing its road to irresponsible persons, might enjoy, all the benefits conferred by its charter and practically leave the public gen erally, as well as individuals, without any of the protection which the obligations im posed upon the company by its charter, as well as the general law of the state, were designed to afford;" Harmon v. R. Co., 28