Virginian-pilot. (Norfolk, Va.) 1898-1911, 1899-08-13
THE NEWS OF NORFOLK ON PAGES TWO THREE AND FIVE

clared by the corporation next after the
death of one who held Il life estate in
shares OF it's stock apportionable be-
tween his executor and the remainder
men? We think not. The general rule
at common law was that fixed, period
lcal payments were not apportionable.
ana II therefore required positive par
ilaneniary enactments to make them
50 in England. Nothing in the way of
income would be more fixed as to
amount, or more certain OF realization.
than the income to be derived from
money invested in the public funds OF
Great Britain. and yet. at common law,
IL was not apportionable. Nor were
rents, annuties, pensions, etc.
1t is contended by the learned counsel
tor The eXecutriX that the money re-
ceived by each OF these corporations,
ana paid out in dividends to its stock
holders. was interest pure and simple
ON the investment of the property
earned day by day. but payable, in the
che case quarterly. in the other semi
annuaiiy.' 1t seems very clear to us
that the money which each of these cor
rorations receives upon Il lease of its
corporate property is not interest. 1t
certainly is not compensation received
Tor the loan or use of money. The mere
tact III the case of the Southwestern
taiirodd Company. that the lease con-
tract stipulates that the lessee shall pay
10 the lessor, during each and every
year of the continuance of the term of
the lease. sum equal to five per CEN
tlin upon the amount of the CAPITAL
stock of the Southwestern Railroad"
outstanding at the date Of the lease
does not change what would otherwise
De rent INTO interest. But il is imma-
terial whether what the corporation re-
ce!Nei Is interest or not, because the
stockhoider. when he receives his mon
cy from the corporation, Is not recciv-
lnE interest. but II dividend upon his
stock. Aside from the general common
law rule which we have been consider
ihS, lherc are principles applicable to
the ownership of stock in Incorporated
companies which we think would con-
troll the decision in this case. The pro-
MS and surplus funds of a corporation
Wihehs'eVer they may accrue. are, I'M
I'll separated from the capital bv the
declaration of Il dividend, Il part of the
stock Itself. ana Will pass with the
STOCK, under That name, in a transfer
or bequest. So when one person
transfers stock in a corporation to an
other, the transfer of the stock carries
with ii. as an incident TO its ownership.
All dividends thereafter declared. ire
srective of when such dividends may
nave been earned. and without regard
10 the source from which the funds
dlNided were acquired by the corpora
uon. This results from the principle
mat a stakeholder has no claim to n
dividend until ii is declared, and each
snare represents a present interest in
IL, ana that passes upon the transfer OF
me share. This general rule regulating
'he transfer of stock. giving the divi-
dend to the holder of the stock at the
time the dividend is declared. is ordi-
nAriiy followed when life tenancy in
shares of stock in a corporation expires
between dividend days. y shareholder
IN a corporation has no legal title to the
property or profits of the corpora ton
until a division is made, or n dividend
declared. Until then the fund upon
when the declaration of n dividend may
De based, and from which il NAV be
paid. is a part of the assets of the cor
poration, no shareholder having any IT,
tie To any part of it,
\ flir1ncd