above
mentioned.

A dividend may be payable in cash or property or a stock dividend may
be made. Such a dividend, if the stock is issued only to the extent of
the surplus profits, is not a violation of the prohibition against
reducing or withdrawing the capital stock by distribution among the
stockholders.

During recent years some important questions have arisen about
dividends or income on stock given by will to the legatees or friends
of the testator. Dividends that are declared after a grant or bequest,
though earned before, go to the legatee as income. This is not the
rule everywhere. In some states the surplus profits accumulated during
the testator's life, though not divided until after his death, belong
to the estate, while the dividends or income earned and declared after
his death are paid to the legatee or beneficiary mentioned in the
will. Again, a somewhat different rule applies to stock dividends. In
some states these are regarded as an increase of capital and must be
kept as a part of the estate; in other states such stock is regarded
simply as another form of income and goes to the legatee like any
other income flowing from the investment. The highest federal court
has declared that when a distribution of earnings is made by a
corporation among its stockholders, the question whether such
distribution is an apportionment of additional stock representing
capital, or a division of profits and income, depends upon the
substance and intent of the action of the corporation, as manifested
by its vote or resolution; and ordinarily a dividend declared in stock
is to be deemed capital, and a dividend in money is to be deemed
income of each share.

A will bequeathed stock in a corporation in trust to pay the dividends
as they accrued to a daughter of the testator during her lifetime.
Stock dividends were declared by the corporation from time to time and
after the death of the testator, and these accumulated earnings were
invested by the company in permanent works. After the testator's death
the corporation was authorized by statute to increase its capital
stock. The dividends were held to be accretions to the capital, and
the income only was payable to the daughter for life.

WRONGS.

Passing from the action of directors in declaring dividends, the
wrongs done by corporations may be stated. As it is an impersonal,
artificial thing, a corporation cannot possibly commit a wrong or tort
like a natural perso