Section 8. All public corporations in the United States are the creatures of legislation and the power to create such corporations, both for the purpose of aiding the central government, and with the means of local self-government, is a legitimate exercise of sovereignty, belonging to the legislative power of the State. The legislature may, however, authorize their creation, but legislative sanction is absolutely essential to corporate existence.15

By Prescription - The existence of corporations by prescription has been recognized in the United States in some cases, when corporate powers have been exercised for a great many years.16

15 In England, corporations can be created only in one of two ways: 1. By the King's charter; 2, by act of Parliament. They exist there, however - 1, by the common law; 2, by prescription; 3, by royal charter; 4, by authority of Parliament. Corporations at common law are those which derive their existence and powers from immemorial usage, although they may have had their origin in an act of Parliament or royal grant, no longer discoverable. Those by prescription presuppose a grant by charter or act of Parliament, which has been lost. Into corporations created by regal or legislative grant may be resolved what have been styled corporations by implication, which is, where a body, lawfully constituted, cannot carry into effect its purposes without attributing to it a corporate character. Dillon Mun. Corp., Vol I, Par. 32. 16 Municipal corporations are created for the public good; are demanded by the wants of the community; and the law, after long continued use of corporate powers, and the public acquiescence, will indulge in presumptions in favor of their legal existence. Jameson et al. vs. People, 16 III., 257; United States Bank vs. Dand-ridge, 12 Wheat., 64.

By Implication - The rule is well settled in the United States, that Public Corporations may be established without any particular form of words, or technical mode of expression, as "where the legislature confers or imposes upon a certain community or body of persons, by a collective name, powers or liabilities of such a character that they can only be exercised by or attached to the place in a corporate capacity, it will be deemed to have created a corporation; in so far at least as is necessary to give effect to the legislative intention." 17

Manner of Creation - In the absence of constitutional inhibitions, the legislature may create public corporations by special act or general law, but by the constitution of many of the States, the legislatures are expressly forbidden to create municipal corporations by special act, and must provide for their organization by general law; the machinery for organizing them is not uniform, but is found variously modified in different States.18

17 Elliot on Mun. Corps., Chap. II, Par. 17.

18 Covington vs. East St. Louis, 78 III., 548.