Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-02-07

of any dividend a financial statement
showing the amount of net earnings must
be filed with the commissioners of cor
porations.
Must Be Bona Eide Residents.
Az least a ma jority OF the directors or
the corporation are required at all times
to be citizens OF the United States ana
bona fide residents therein.
Stock may be paid for in cash or IN
property but every certificate of stock
issued In payment for property must con-
tain a statement that II Is so issued ana
before any stock is so issued a full state
ment, sworn to by majority of the
board of directors. must be filed In the
bureau of corporations setting forth
full description of the property, the num-
her of shares to be issued in payment
therefor and whether such shares are to
have a par value or not; the names and
addresses Of the vendors of the property,
the statement Of their connection, IL any,
with the company: the terms OF any
agreement, verbal or written. with respect
to the transfer of the property; tuil De
tails as to price: all amounts paid or 10
be paid to each vendor. and If the Ven
doris are directors of the corporation or
stockholders, statement OF the prict
paid or agreed to be paid by them for the
property to be sold to the corporation. and
where the stock to be issued Tor such
payment has a par value there must te
filed in the bureau of corporations an ap
praisement of the value of the property
by two dsinterested appraisers. approved
in writing by the commissioner, who may
also appoint other appraisers.
Conformity to Appraisement.
No stock with q par value may he
issued i'm payment of property purchase
or acquired by the corporation to an
amount in par value exceeding the value
approved by the commissioner after such
appraisement.
Provisions are made for the increase or
decrease of the capital stock of "A cor
poration and for other amendments To
the articles of association by vote of
two-thirds of the stockholders of the
corporation. On similar vote the cor
poration may borrow money, issue
bonds and mortgage property or con-
fer upon the holder of any bond or
obligation the right TO convert the printi-
pal after five years from date of the
bonds into stock of the corporation of a
designated class
The approval of the commissioner of
corporations must be secured before the
capital stock can he increased to the
amount Necessary to provide for such
| conversion, and this right shall not he
given unless the bonds are issued or
sold at par, or upward, or If for less than
par. then for not less than their rea-
sonable market value as ascertained by
| the commissioner
Safeguard Provided.
Whenever a corporation shall fail to
pay any written obligation at ma
| turity, or if any execution against its
| property shall be returned unsatisfied.
| the commissioner of corporations shall
| appoint special agent to examine into
| it's condition. If this agent reports that
| the corporations condition is I'M
| sound as to make its continuance in
| business contrary to public welfare. the
| commissioner may appoint a receiver
| with the usual powers of chancery re-
| ceivers. Within thirty days the corpo-
| ration may apply to the nearest United
| States court to enjoin proceedings. and
| the court may discharge the receiver and
| enjoin the corporations interests from
! further proceedings.
The real and personal property of cor
porations are to be subject to state, coun-
! ty and municipal tax. Incorporation fees
| are to be paid amounting to one-tenth of
| l per cent of the total capital up to &c.
| 100000: one-twentieth Of / per cent from
s1.UOO.OO0 to S20.OGO,OOO, and $50 on
every million dollars of capital in excess
| of $20,00O,OO0.