There is a lot of myth about the Founding Fathers. Did you know that our Founding Fathers imposed rather strong laws upon corporations? In fact, these laws continued, and were added to for nearly the first 100 years of our Republic.
When American colonists declared independence from England in 1776, they also freed themselves from control by English corporations that extracted their wealth and dominated trade. After fighting a revolution to end this exploitation, our country’s founders retained a healthy fear of corporate power and wisely limited corporations exclusively to a business role. Corporations were forbidden from attempting to influence elections, public policy, and other realms of civic society.
Initially, the privilege of incorporation was granted selectively to enable activities that benefited the public, such as construction of roads or canals. Here's an example of the kinds of laws that were on the books:
◾Corporate charters (licenses to exist) were granted for a limited time and could be revoked promptly for violating laws.
◾Corporations could engage only in activities necessary to fulfill their chartered purpose.
◾Corporations could not own stock in other corporations nor own any property that was not essential to fulfilling their chartered purpose.
◾Corporations were often terminated if they exceeded their authority or caused public harm.
◾Owners and managers were responsible for criminal acts committed on the job.
◾Corporations could not make any political or charitable contributions nor spend money to influence law-making.
Individual states regulated corporations even further.
For 100 years after the American Revolution, legislators maintained tight controll of the corporate chartering process. Because of widespread public opposition, early legislators granted very few corporate charters, and only after debate. Citizens governed corporations by detailing operating conditions not just in charters but also in state constitutions and state laws. Incorporated businesses were prohibited from taking any action that legislators did not specifically allow.
If these very same laws were to be proposed today, after the establishment of Corporate Personhood (which is one of the worst rulings in American history), everyone would be accusing the those proposing such measures of being for big government. They'd be screaming against government regulation, growth of government power, and labeling people supporting the measures "Socialist". This libertarian myth about our Founding Fathers and our early history is nothing but that, a myth.
One of the most severe blows to government authority over corporations arose out of the 1886 Supreme Court case of Santa Clara County v. Southern Pacific Railroad. Though the court did not make a ruling on the question of “corporate personhood,” thanks to misleading notes of a clerk, the decision subsequently was used as precedent to hold that a corporation was a “natural person.” This story was detailed in “The Theft of Human Rights,” a chapter in Thom Hartmann’s recommended book Unequal Protection.
From that point on, the 14th Amendment (enacted to protect rights of freed slaves) was used routinely to grant corporations constitutional “personhood.” Justices have since struck down hundreds of local, state and federal laws enacted to protect people from corporate harm based on this illegitimate premise. Armed with these “rights,” corporations increased control over resources, jobs, commerce, politicians, even judges and the law.
In actuality, those of us who are for limiting corporate power and regulating corporations are only following after the spirit of our Founding Fathers.
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