Mechanics & Farmers Sav. Bank v. Commonwealth
| Decision Date | 18 February 1908 |
| Citation | 128 Ky. 190 |
| Parties | Mechanics & Farmers Sav. Bank v. Commonwealth. |
| Court | Kentucky Court of Appeals |
Appeal from McCracken Circuit Court.
Defendant convicted and appeals — Reversed.
BRADSHAW & BRADSHAW for appellant.
JAMES BREATHITT, Attorney General, TOM B. McGREGOR, CHAS. H. MORRIS, JOHN LOVETT and A. W. BARKLEY for Commonwealth.
This appeal is prosecuted from a judgment convicting the appellant of failing to have printed on its place of business the word "Incorporated." The indictment was found under section 576 of the Kentucky Statutes of 1903, reading as follows: It is the contention of appellant that the exception of railroad companies, banks, trust companies, insurance companies, and building and loan associations applies to the entire section, and is not confined to that part of the section that relates to advertising matter. For appellee the argument is made that as the section is divided into two sentences, and the exception is contained in the second sentence, it relates exclusively to the matter contained in that sentence, and only excepts the corporations mentioned from the obligation of using upon printed or advertising matter the word "Incorporated;" that no corporations are excepted from the operation of the first sentence of the section.
It is a familiar rule in the construction of statutes that the intention of the lawmaking department in its enactment must be considered, and that the courts must look beyond the letter of the statute to ascertain its purpose. Brown v. Thompson, 14 Bush, 538, 29 Am. Rep. 416; Commonwealth v. Reynolds, 89 Ky. 147, 11 Ky. Law Rep. 445, 12 S. W. 132, 20 S. W. 167; Commonwealth's v. Davis, 12 Bush, 240; Sams v. Sams' Adm'r, 85 Ky. 396, 3 S. W. 593. Applying these rules of construction — which are fully supported by section 459 of the Kentucky Statutes of 1903, providing, in part, that "all statutes shall be construed with a view to carry out the intention of the Legislature" — to the statute before us, our conclusion is that it was the legislative intent, although not accurately expressed, to exempt railroad companies, banks, trust companies, insurance companies, and building and loan associations from the operation of the statute, as the purpose of the statute was. as said by this court, And as railroad companies, banks, trust companies, insurance companies, and building and loan associations cannot under the law be conducted or operated except by corporations, there is no reason why concerns that must be incorporated to carry on business should be required to have printed upon their place of business the word "Incorporated."
It is difficult to understand, what purpose the Legislature could have had in requiring the corporations mentioned to have printed in a conspicuous place at their place of business the word "Incorporated," and yet exempt them from using the word "Incorporated" upon all printed and advertising matter used by them. The public reasons that would require them to have the word "Incorporated" printed on their place of business would seem to demand that the same means be employed in the distribution of advertising matter; and the fact that they are exempted from one makes it reasonable to assume that it was the intention to exempt them from the other. This section, as originally enacted by the Legislature, was section 39 of article 1 of the act relating to corporations, found in Acts 1891-92-93, p. 627, c. 171. In this section all corporations were required to have the word "Incorporated" painted or printed in a conspicuous place on their place or places of business, and also upon all printed or advertising matter used. This act was amended by an act that may be found at page 1257, c. 243, Acts 1891-92,-93, sec. 576 Ky. Stat. 1903, by inserting the words "except railroad companies, banks, trust companies, insurance companies, and building and loan associations;" and it was evidently intended that this exception should apply to the entire section, and not to a particular part of it. It may also be noticed that in the original act there is a semicolon between the words "Incorporated" and "and," whilst in the statute they are separated by a period. We do not, however, regard this error in punctuation as essentially changing the intention of the act.
Wherefore the judgment of the lower court is reversed, with directions to sustain a demurrer to the indictment.
The opinion of the first-styled case was delivered the 22d day of November, 1907 (105 S. W. 399); in the second case, February 5, 1908 (108 S. W. 262); and in the third case the opinion was this day (February 18, 1908) delivered. The three opinions do not express my views for the following reasons:
The statute, under which the prosecutions were instituted is section 576 of the Kentucky Statutes of 1903, and is as follows: It will be observed that the section is divided into two parts. The first part requires all corporations to place on its principal place or places of business the word "Incorporated." The second part requires all corporations, except "railroad companies, banks, trust companies, insurance companies, and building and loan associations" to place the same word upon all printed or advertising matter used by such corporation. The purpose of this statute, as this court has repeatedly decided, is to protect the public and individuals from imposition by corporations, as the individual property of the stockholder is not liable for the corporate debts, and in many cases the corporation is insolvent and have solvent...
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