The case occurred following the overthrow of the Dartmouth College president by the trustees at the time. New Hampshire sought to change Dartmouth's original charter so they could reinstate the deposed president and gain the power to appoint additional members on the board of trustees. The state also wished to create its own board of visitors which could veto any trustee decisions. If the state had its way it would change Dartmouth from a private to a public entity. The trustees of the college did not want this to happen so they hired Daniel Webster, an alumnus of the college, to represent their interests. Webster later became a Senator for Massachusetts and eventually the Secretary of State under President Millard Fillmore. The state was represented by William H. Woodward, secretary of the new trustees' board, to represent their interests. During the case, Webster gave a moving speech which many believe helped sway Chief Justice John Marshall to ruling in his favor.
The Supreme Court upheld the college's original charter granted by King George III in 1769. The charter provided land for the college, allowed it to be set up and allowed Dartmouth the ability to structure its own government. The college was allowed to retain its buildings; charter; and the Dartmouth seal. The college was allowed to retain its buildings, charter and the Dartmouth seal. The charter had been set in place prior to New Hampshire becoming a state and was ruled by Marshall as being a contract between private properties which could not be interfered with by the state. The Constitution says a state cannot pass legislature which harms a private contract. This became a landmark case as it effectively settled the public versus private charter issue and, therefore, allowed for the upsurge of American business corporations. The case was one of the most important rulings by the Supreme Court in maintain the Contract Clause and preventing the States from interfering with private contracts.
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