Whether corporations can use the word "trust" in their corporate name.

its default is not due to a wilfull disregard of the law, and there is no other ground of objection to such association doing busi- ness in this state, and it will promptly comply with the law, there is no good reason that I know of why the reports should not be accepted and license issued to it to continue business in this state. CORPORATIONS-USING WORD "TRUST" AS PART OF CORPORATE NAME. July' 2, 1907. Hon. John C. Billheimer, Auditor of State: Dear Sir-I have received your communication of June 26th, asking the following question: "Assuming that a corporation organized prior to March 4. 1893, under the Indiana law of February 7, 1873, con- cerning state banks, used in its original incorporation and still uses the word 'trust' as a portion of its corporate name, and that it conducts a banking business only, does such corporation violate the prohibition contained in the act of the Indiana general assembly, approved February 24, 1899, amending section 18 of the act approved March 4, 1893, concerning trust companies?" The prohibition above referred to is contained in §5015a Burns' Statutes 1901, and reads as follows: "All corporations not organized and transacting busi- ness under said act approved March 4, 1893, and whereto this is supplemental, and all persons or corporations doing the business of bankers, brokers, saving institutions, in- surance corporations, building and loan associations or other corporations engaged in business in this state under any other act than the one aforesaid, are prohibited from using the word 'trust' as a portion of the name or title of said bank, corporation, firm, partnership or association; and any violation of this prohibition committed by any person or corporation after the taking effect of this act, shall subject such party, person, corporation or association chargeable therewith to a penalty of fifty ($50) dollars for each day during which it is committed or repeated; said penalty to be recovered in the name of the state on a suit brought by the attorney-general, whose duty it shall be to enforce the provisions of this section." I am of the opinion that the above statute does not apply to such corporation as you mention. While its terms are general, and its purpose was to avoid confusion regarding the nature of busi- ness conducted by a particular concern, yet to construe it as in- cluding companies which have already acquired a reputation by the use of a name embracing the word "trust," might deprive them of a substantial property right. The name of a corporation though possibly not a part of its franchise, is nevertheless one of its most valuable assets, and to rennire it to forego the'use of an important word in a well known title would in many instances result in embarrassment and finan- cial loss. As said in Investor Publishing Co. v. Dobinson, 72 Fed. 603, 606: "That the name of a corporation is an essential part of its being, and that the courts, independent of statutory provision, will protect the corporation in the use of its name, seems to be well settled by the authorities, and the controlling principles in such a case are those applicable to trade marks." In Newly v. Railway Co., Fed. Cas. 10144, this language occurs: "The corporate name of a corporation is a trade mark from the necessity of the thing, and upon every considera- tion of private justice and public policy, deserves the same consideration and protection from a court of equity. Un- der the law, the corporate name is a necessary element of the corporation's existence. Without it a corporation can not exist. Any act which produces confusion or uncer- tainty concerning this name is well calculated to injur- iously affect the identity and business of a corporation." In Paulino v. Portuguese Assn., 20 L, R. A. 272, the court say: "The act of incorporation has fixed the name which the corporation is to bear, and its right to use that name is part of its franchise, conferred on it by law." Tn Grand Lodge v. Graham, 31. L. R. A, 131, 1,38, it is said: "It seems to be well settled that the name of a corpora- tion, while not a part of its franchise, is, to a certain extent. property, and that it will be protected in a proper case on principles somewhat analogous to those applied to trade In 1 Thompson on Corps., §296, it is stated: "The better view is that the right of an existing cor- poration to the use of its corporate name, which is in the nature of a trade mark, can not be infringed by a subse- quent act of incorporation by the legislature, either by the -direct grant of a charter to a corporation to be organized under a similar name, or through a ministerial officer of the state in granting a certificate of incorporation to a body of adventurers having a similar name. The right of doing wrong and of committing fraud can not, although thus conferred by or under a statute, be of such a sacred character as to be beyond the corrective power of the judi- cial courts." (See also, 7 Thomp. on Corps., §8192; and cases cited in Note 30.) i I Inasmuch as a contrary interpretation might lay the ab6ve statute open to the objection that it deprives citizens of property rights without due process of law, I consider it proper to place such a reasonable construction upon it as will save its constitu- tionality. This may be done by applying it to such corporations, firms, etc., as should thereafter adopt a business title containing the word "trust"; and 1iy excluding those which, prior to its enactment, had built up a business in connection with a corpor- ate name consisting, in part, of this word. If the legislature could thus deprive a banking company of its corporate name, under the guise of its police power, it could with equal propriety deprive the State Life Insurance Company, the State College of Physicians and Surgeons, the State House Build- ing & Loan Institution, and other corporations, of the right to use of the word "State" as an element of their corporate name,' though. this had become an integral part of their title and trade mark in the strictest sense. MEDICAL REGISTRATION AND EXAMINATION, STATE BOARD OF-"AFFILIATION" BETWEEN TWO COL- LEGES, ETC. July 9, 1907. Dr. W. A. Spurgeon, President, Indiana State Board of iMredical Registration and Examination, M tincie, Indiana: Dear Sir-In answer to your inquiry of June 22, 1907, in re- gard to rules of State Board of Medical Registration and Exam-