of officers and stockholders, the statements
filed with the State authorities for the information of stockholders
or others as to their capitalization and the methods adopted of paying
in their stock, and the annual reports of condition required for
taxation purposes or otherwise. On the same principle a nominal
franchise tax is annually imposed corresponding to the tax imposed by
the State on its own corporations and made approximately proportional
in amount.

A few broad general principles are almost universal in American
legislation on the subject. Ordinary business corporations are now
almost universally created under general law, and indeed by the
constitutions of many States are forbidden to be created by special
charter.[1] There is generally, however, no limitation by constitution
on the size or capitalization, though the duration of corporations is
frequently limited to twenty, thirty, or fifty years; and there is
generally no limitation on the nature of the business that may be
done, except, in a large number of States, banking and insurance, and
except that there is in many States, as, notably, Massachusetts, a
prejudice against land companies, so that they may not be created
without a special charter.

[Footnote 1: See Stimson's "Federal and State Constitutions," pp. 295,
315, 316.]

The liability of stockholders is commonly limited to the shares of
stock actually held or such portion of them as may not have been paid
up by the stockholder in cash or property value. Massachusetts and the
more conservative States attempt to provide that the stock shall be
actually paid up in money or in property of the real value of money,
at par. New Jersey, New York, Maine, West Virginia, and the laxer
States, practically allow their directors to issue stock for anything
they choose--labor, contracts, property, or a patent right--and their
judgment on the value of such property is held to be final in the
absence of fraud. Corporations are usually taxed, like individuals,
on their tangible, visible property, real and personal, and in many
States there is also a franchise tax on their shares.[1] There is a
frequent limitation that the corporate indebtedness shall not exceed
the amount of the capital stock.[2] No States, except Vermont and
New Hampshire, seem now to have any limitation on the amount of the
capital stock, or if there be a limitation, as of one million dollars
at the time of formation, the corporation may s