OCTOBER 14TH, 1913.

IN RE INCORPORATION OF COMPANIES.

Constitutional Law-Incorporation of Companies-" Provincial Objects"- Limitation - Doing Business Beyond the Province-Insurance Company-" Insurance Act, 1910;" 9 & 10 Edw. VII. ch. 32, sec. 3 sub-sec. 3-Enlargement of Company's Powers-Federal Company-Provincial Licence-Trading Companies.

By sub-sec. 11, sec. 92, of "The British North America Act, 1867," the Legislature of any province of Canada has exclusive jurisdiction for "The Incorporation of Companies with Provincial Objects."

Held, per FITZPATRICK, C.J., and DAVIES, J., that the limitation defined in the expression "Provincial Objects" is territorial and also has regard to the character of the powers which may be conferred on companies locally incorporated.

Held, per IDINGTON, DUFF, ANGLIN, and BRODEur, JJ.: -That such limitation is not territorial but has regard to the character of the powers only.

Held, per FITZPATRICK and DAVIES, JJ.:-That a company incorporated by a provincial Legislature has no power or capacity to do business outside of the limits of the incorporating province, but it may contract with parties residing outside those limits, as to matters ancillary to the exercise of its powers.

Per IDINGTON, ANGLIN, and BRODEUR, JJ.:-Such company has, inherently, unless prohibited by its charter, the capacity to carry on the business for which it was created, in any foreign state or province whose laws permit it to do

So.

Per DUFF, J.-A provincial company may conduct its operations outside the limits of the province creating it, so long as its business, as a whole, remains provincial.

Held, per FITZPATRICK, C.J. and DAVIES, J., that a corporation constituted by a provincial Legislature with power to carry on a fire insurance business with no limitation as to locality has no power or capacity to make and execute contracts for insurance outside of the incorporating province, or for insuring property situate outside thereof.

Per IDINGTON, DUFF, ANGLIN, and BRODEUR, JJ.:Such a company has power to insure property situate within or without the incorporating province and to make contracts within or without, the same to effect any such insurance. In respect to all such contracts, it is not material whether the owner of the property insured is, or is not, a citizen or resident of the incorporating province.

Held, per FITZPATRICK, C.J. and DAVIES, J.:—A provincial fire insurance company may make contracts and insure property throughout Canada by availing itself of the provisions of sec. 3, sub-sec. 3, of 9 & 10 Edw. VII. ch. 32 (“The Insurance Act. 1910") which is intra vires of the Parliament of Canada.

Per DUFF, and BRODEUR, JJ.:-Such enactment is ultra vires of Parliament.

Per IDINGTON, J.:-Part of said sub-section may be intra vires, but the last part providing for a Dominion license to local companies is not.

Per ANGLIN, J.:-The said enactment is ultra vires, except in so far as it deals with companies incorporated by or under Acts of the Legislature of the late province of Canada.

Held, that the powers of a company incorporated by a provincial Legislature cannot be enlarged, either as to locality or objects, by the Dominion Parliament, nor by the Legislature of another province.

Held, per FITZPATRICK, C.J. and DAVIES. :-The Legislature of a province has no power to prohibit companies incorporated by the Parliament of Canada from carrying on business within the province, without obtaining a license so to do from the provincial authorities and paying fees therefor, unless such license is imposed in exercise of the taxing power of the province. And only in the same way can the Legislature restrict a company incorporated for the purpose of trading throughout the Dominion in the exercise of its special trading powers, or limit the exercise of such powers within the province. DUFF and BRODEUR, JJ. contra.

Per IDINGTON, J.-A company incorporated by the Dominion Parliament in carrying out any of the enumerated powers contained in sec. 91, and a company incorporated for the purpose of trading throughout the Dominion cannot be prohibited by a provincial Legislature from carrying on business, or restricted in the exercise of its powers, within the province, except by exercise of the exclusive jurisdiction to

make laws in relation to "direct taxation within the province." But a company incorporated under the general powers of Parliament must conform to all the laws of a province in which it seeks to do business.

Per ANGLIN, J.:-The provincial Legislature may impose a license and exact fees from any Dominion company, if the object be the raising of revenue, or obtaining of information, "for provincial, local or municipal purposes," but not if it is to require the company to obtain provincial sanction or authority for the exercise of its corporate powers. And the Legislature cannot restrict a company incorporated for the purpose of trading throughout the Dominion in the exercise of its special powers, nor limit the exercise of such powers within the province, nor subject such company to legislation limiting the nature or kind of business which corporations not incorporated by it may carry on or the powers which they may exercise within the province.

Newcombe, K.C., and Atwater, K.C., for AttorneyGeneral of Canada.

Nesbitt, K.C., Lafleur, K.C., Aimé Geoffrion, K.C., and Christopher C. Robinson, for Ontario, Quebec, Nova Scotia, New Brunswick, Prince Edward Island and Manitoba.

S. B. Woods, K.C., for Alberta and Saskatchewan.

Chrysler, K.C., for Manufacturers' Association of Canada.

The

Library &

"And what of this new book?"-Sterne.

Men disparage not antiquity who prudently exalt new enquiries.”
-Sir Thomas Browne.

Banks and Banking in Canada, 3-4 George V., chapter 9, with annotations, table of cases and copious index. By Walter Edwin Lear, of Osgoode Hall, Toronto: The Carswell Co., Ltd.

Mr. Lear has a peculiar faculty for work of this description, and the notes and index to the Bank Act will be found particularly useful to the profession. This handy little book should be in the hands of every practitioner.

Principles of the Law of Personal Property. By the late Joshua Williams, Esq., of Lincoln's Inn, sometime one of the Conveyancing Counsel to the Court of Chancery, and afterwards one of Her Late Majesty's Counsel. 17th edition, by his son, T. Cyprian Williams, of Lincoln's Inn, Barrister-at-Law, LL.B. London: Sweet & Maxwell, Ltd. Toronto: The Carswell Co., Ltd.

The seventeenth edition of this volume, most valuable to the student in conveyancing as well as the older practitioner, has been brought up to date by the editor, the main statutory changes since the issue of the last edition being embodied.

A particularly useful section of the book is that which Ideals with the liabilities of chattels in relation to distress and a table of articles privileged has been added to the present volume. The editor had a difficult task in taking up the work of his late father and how well he has carried out his work, the utility and helpfulness to the practitioner is able to attest.

The Law of Trade Marks and Trade Names, with chapters on trade secret and trade libel, and a full collection of statutes, rules, forms and precedents. By D. M. Kerly, M.A.,LL.B., sometime fellow and Macmahon law student of St. John's College, Cambridge, of the Inner Temple, Barrister-at-Law. Fourth edition by F. G. Underhay, M.A., of the Inner_Temple, Barrister-atLaw. London: Sweet & Maxwell, Ltd. Toronto: The Carswell Co., Ltd.

The care and thoroughness called for in the preparation of a work of so technical a nature as the present volume is stupendous, and when the value and prestige of a trade mark is considered in relation to large mercantile and other concerns a work like the present cannot fail to be appreciated by those members of the profession to whom merchants look for advice.

The fact that the various Acts of the United States, Australia, and other countries have been included in the present edition makes the work somewhat of an international one. The law as settled by the decisions of the Court of Appeal and the Privy Council is set out in the present volume, which will undoubtedly be appreciated by every member of the profession having occasion to use it.

Vol

Chitty's Statutes of Practical Utility, with notes and indexes. ume 17, part 3, containing statutes of practical utility passed in 1913. By W. H. Aggs, M.A., LL.M., of the Inner Temple, Barrister-at-Law. London: Sweet & Maxwell, Ltd., 3 Chancery Lane; Stevens & Sons, Ltd., 119-120 Chancery Lane.

Part 3 of Vol. 17, as the title would indicate, comprises those statutes of general use. The notes will be found very useful and the index is full enabling each subject to be easily found.

BOOKS RECEIVED.

A Treatise on the Law of Municipal Corporations. By Eugene McQuillan, author of Municipal Ordinances, and Judge of the eighth Judicial Circuit, Missouri, in six volumes. Callagan & Co., Chicago.

Commentaries on the Law of Master and Servant, including the modern laws on workmen's compensation, arbitration, employers' liability, &c., &c. By C. B. Labatt, B.A. (cantab.), M.A. (Toronto), of the Bar of San Francisco, Cal., in eight volumes. Rochester, N.Y.: The Lawyers Co-operative Pub. Co.