ery nature of their deposits trust companies find it convenient
and profitable to make larger loans and at longer periods than do
ordinary banks. Trust companies not only receive moneys upon deposit
subject to cheque and for savings, and loan money on commercial paper
and other securities, as do commercial banks; but they also act as
agents, trustees, executors, administrators, assignees, receivers for
individual properties, and corporations. They frequently assist as
promoters or reorganisers of corporations and in the sale of stocks,
bonds, and securities. They act also as agents for the payment of
obligations maturing at future dates, such as the premiums on
insurance, interest on mortgages and bonds, etc. Trust companies are
organised under the laws of the State in which they exist and are
usually subject to all the supervision required in the case of State
banks.

III. CORPORATIONS AND STOCK COMPANIES[9]

CORPORATIONS

Stock companies are usually referred to as corporations, though all
corporations are not stock companies. A corporation is a body
consisting usually of several persons empowered by law to act as one
individual. There are two principal classes--(1) public corporations
and (2) private corporations. Public corporations are not stock
companies; private corporations usually are. Public corporations are
created for the public interest, such as cities, towns, universities,
hospitals, etc.; private corporations, such as railways, banks,
manufacturing companies, etc., are created usually for the profit of
the members. Corporate bodies whose members at discretion fill by
appointment all vacancies occurring in their membership are sometimes
called close corporations.

POWER TO BE A CORPORATION IS A FRANCHISE

In the United States the power to be a corporation is a franchise
which can only exist through the legislature. There are two distinct
methods in which corporations may be called into being: First, by a
specific grant of the franchise to the members, and, second, by a
general grant which becomes operative in favour of particular persons
when they organise for the purpose of availing themselves of its
provisions. When the specific grant is made it is called a charter. In
the case of private corporations the charter must be accepted by the
members, since corporate powers cannot be forced upon them against
their will; but the charter is sufficiently accepted by their acting
under it. When special cha