!! ! " I'll Mil i! Illili iiiili li!E fill mirrn niuinti "if!! IMIMIIIil IP Hi Hi I 11! A IP 11 III, lilili iiliil III! :n lift ii ifir til /iiiiiiiiiiiiiiiini iriil In MIMIIIIIIIKKIIi jrtiii itjiiimiiiuiiitiii IIIMIIH SI (JJMCflfUl'iniif I ililMi liilJIMifl : i ; : ' UNIVERSITY OF CALIFORNIA LOS ANGELES SCHOOL OF LAW LIBRARY CORPORATION LAWS OF THE STATE OF CALIFORNIA 1909 (Fifth Edition) Citations are taken from the California Reports up to and including Volume 153, and from the California Appellate Reports up to and includ- ing Volume 7 thereof, and are followed by later citations as they occur in cases reported in the "California Decisions" and the "California Appellate Decisions" (issued by "Recorder" Co., San Francisco) up to June, 1909. COMPILED BY CHARLES FORREST CURRY SECRETARY OF STATE SACRAMKN T O W.W.SHANNON ------ Supt. of State Printing lyo 9 s PREFACE. Department of State, Sacramento, California. The fifth edition of the Corporation Laws of California, as compiled by (his department, is herewith presented to the public. In the beginning, the design of this publication was simply to put forth a compilation of the laws concerning merely I he organization and government of private corporations, but as subsequent editions were issued and the demand for the book increased the scope of the work has been enlarged, and in addi- tion many matters have been included which are of general interest as relating to the conduct and control of corporation business and affairs. With the enormous growth in popularity and general use of the form of business organization known as the corporation, legislation concerning such organizations has increased in a cor- responding degree. Nearly .ill present business legislation is to some extent corporation legislation. While the scope of this work has been considerably enlarged, yet in order to keep it within reasonable bounds the subjects included have been con- fined to those matters of legislation in which corporations have been specifically named, or. where not named, yet the regula- tions enacted seem to have been especially directed at private corporations. Some subjects also have been omitted which are handled by other departments of the state government, such as regulations of dairy products or pure food laws which come within the province of the state dairy bureau or the state board of health. First of all are given those portions of the constitution of California which seem to have been taken as foundation stones upon which the superstructure of our corporation law has Keen erected by the various legislatures and sustained by the courts, anil which seem to have served as direction or authority for such legislative or judicial action. Next are given those por- lions of the codes of California which deal with corporation affairs, and after that the statutes at large which deal especially with corporation interests. IV PREFACE. The edition of the Corporation Laws of 1909 has been en- tirely revised and the subject-matter of corporation legislation thoroughly gone over from 1850, the date of the first enactments in this state, up to and including the present year. This has been done with the idea of giving to the public a reliable and complete compilation of the laws which are alive and in sound condition as to constitutionality at the present time, and of general interest to modern corporations. There has been a vast amount of corporation legislation enacted in the past which has been either specifically repealed or repealed by implication or superseded by later enactments. A large number of statutes have as to their provisions been completely transferred to the various codes by recent legislatures, notably during the sessions of 1905 and 1907, and these statutes so codified have been eliminated from the present edition as having served their pur- pose and being of no further general interest. Other statutes which have been repealed or superseded by subsequent acts, while their provisions are yet in force to a greater or less extent as to the particular corporations which were organized under their authority, yet these statutes have been printed in former editions for the benefit of such corporations, and it is not thought necessary to include them in the present volume. No attempt has been made at annotation in the nature of comment or analysis, as such work is considered outside the province of this publication and as encroaching upon the domain of private publishers. The proof sheets of this edition have been carefully read and compared in connection with the official statutes of the year in which each code section or statute was enacted or amended, and by the general arrangement of the compilation it has been designed to be, not alone of value and assistance to lawyers as a useful guide and an authority as to text, but it has also been especially intended for the use and understanding of the average non-professional reader who is interested in the subject of mod- ern corporation legislation in this state. Secretary of State. CONTENTS. CONSTITUTION OF CALIFORNIA. PORTIONS RELATING TO PRIVATE CORPORATIONS. ARTICLE I. Declaration of Rights. Page. § 11. Laws to be uniform 1 § 14. Rights of private property § 21. Special privileges, limitations on ARTICLE IV. Legislative Department. § 22. Money, how appropriated; how drawn 3 §25. Local and special legislation forbidden 4 § 26. Lotteries prohibited 5 S 31. Public credit to corporations prohibited 6 5 ::.;. Charges by certain corporations, regulation of 6 ARTICLE X. State Institutions and Public Buildings. § 6. Convict labor 7 ARTICLE XI. Counties, Cities, and Towns. S13. Municipal power not granted by legislature 7 § 10%. Deposit of moneys belonging to state, county, or muni- cipality 7 § 19. Use of streets for gas and water pipes 8 ARTICLE XII. Corporations. § 1. Corporations, how formed 1 " § 2. Corporations, dues from 11 § 3.. Corporation stockholders and directors, liability of.... 11 § 4. Corporations, what they include 12 § 5. Banking corporations 12 g 6. Existing charters, invalid in certain cases 12 § 7. Franchises or charters not to be extended by legisla- ture. Extension of corporate existence I -' vi contents. Page. § 8. Corporate property subject to eminent domain 13 § 9. Limitation on business of corporations 13 §10. Liabilities not released by transfer of franchise 13 § 11. Issuance of stock 14 § 12. Elections for directors 14 § 13. State credit not to be loaned 14 §14. Corporations must maintain a place of business 14 § 15. Foreign corporations 15 § 16. Corporations may be sued, where 15 § 17. Common carriers 15 § 18. Limit on interest of an officer or agent 16 § 19. Public officers not to receive passes 16 § 20. Earnings not to be shared. Rates not to be increased 16 § 21. Discrimination forbidden 17 § 22. Railroad commissioners. Number, election, term, quali- fications, powers and duties, how removed from office 17 § 23. Railroad districts 19 § 24. Legislature to enforce this article 19 ARTICLE XIII. Revenue and Taxation. § 1. Property to be taxed according to value — Exemptions. 19 § 1%. Churches exempt from taxation 20 S 4. Taxation of mortgages and securities 21 § 9. State and county boards of equalization 21 § 10. Property, where and by whom assessed 23 S 11. Income taxes 23 S 13. Legislature to pass laws to enforce taxation 23 ARTICLE XIV. Water and Water Rights. § 1. Subject to control of state 24 § 2. Right to collect rates is a franchise 25 ARTICLE XV. Harbor Frontage, etc. S 1. Right of the state to frontage 25 S 2. Access to navigable waters 25 § 3. Tide lands 25 ARTICLE XVII. Land and Homestead Exemption. § 2. Large land holdings discouraged 26 ARTICLE XIX. Chinese. § 2. Corporations not to employ Chinese 26 CIVIL CODE. VII CIVIL CODE. PORTIONS RELATING TO PRIVATE CORPORATIONS. Preliminary Provisions. Page. § 7. Holidays 27 § 14. Certain terms denned 28 Title I. II. III. IV. V. VI. VII. VIII. IX. X. XI. XIrt. XII. XHn. XIII. XIV. XV. XVI. XVII. XVIII. XIX. XX. XXI. XXII. DIVISION FIRST. PART IV. Corporations. General provisions applicable to all corporations. §§ 283-410. Insurance corporations. §§ 414-453p. Railroad corporations. §§ 454-494. Street railroad corporations. §§497-511. Wagon road corporations. §§ 512-524. Bridge, ferry, wharf, chute, and pier corporations. §§ 528-531. Telegraph and telephone corporations. §§536-540. Water and canal corporations. §§ 548-552. Homestead corporations. §§ 557-566. Savings and loan and banking corporations. §§ 571- 583b. Mining corporations. §§ 586-590. Chambers of commerce, boards of trade, mechan- ics' institutes, and other kindred associations. §§ 591-592e. Religious, social, and benevolent corporations, and other corporations not organized for pecuniary profit. §§ 593-605. Cruelty to children and animals. §§ 607-607#. Cemetery corporations. §§ 608-616. Agricultural fair corporations. §§ 620-622. Corporations to furnish light for public us.' §§ 629-632. Building and loan associations. 633-64 8«. Colleges and seminaries of learning. §§ 649-651. ■Consolidation of colleges, etc. §§ 652-653. Co-operative business corporations. § 653a. Co-operative business associations. §§ 653&-653Z. Non-profit co-operative agricultural, viticultuial, and horticultural associations. §§ 653m-653s. Non-profit co-operative corporations. §§ 653£-653«b. VIII CONTENTS. TITLE I. General Provisions Applicable to All Corporations. Chap. I. Formation of corporations. §§283-3216. II. Corporate stock. §§322-349. II r. Corporate powers. §§354-393. I V. Extension and dissolution of corporations. SS 399- 403. [Old section 103 ; repealed. | V. General provisions affecting corporations. SS 103 MM. VI. Foreign corporations. SS 105-410. CHAPTER I. Formation of Corporations. Art. I. Corporations defined and how organized. §§283- 30 Off. II. By-laws, directors, elections, and meetings. §§301- 321b. ARTICLE I. Corporations Defined and How Organized. Pace. § 283. Corporation defined 31 S 284. What are public and private corporations 31 § 285. Private corporations, how formed 31 §286. For what purpose private corporations arc formed.. 31 S 287. How corporations may continue their existence under this code :!^ § 288. Existing corporations not affected 32 S 289. Name of instrument creating corporation 33 § 290. Articles of incorporation, what to contain 33 S 290a. Certain corporations to file affidavit, showing what. . 35 § 290%. Corporations not to use the word "trust" in corporate name unless authorized 35 S 291. Certain corporations to state further facts in articles 36 § 292. Articles, how subscribed and acknowledged 36 § li'.Jo. Prerequisite to filing articles for certain corpora- tions ; amounts to be subscribed to be fixed :'*; §294. Prerequisite to rilins' articles of incorporation for railroad, telegraph, and wagon road corporations. . 36 §295. oath of officer to Subscription of stock and payment of ten per cent in case of such corporations :;'.' § 296. To file articles with county clerk and secretary of state, and receive certificate. Term of existence.. 37 § 297. Certified copy of certificate to be prima facie evidence 38 § 297a. Restoration of lost original articles of incorporation 38 § 298. Who are members and who stockholders of a, cor- poration 38 §299. Corporation to file articles in county where it holds property 38 § 300. Banking corporations may elect to have capital stock 10 § 300a. Change of name ; lilinj; copy of decree 11 CIVIL CODE. IX ARTICLE II. By-Laws, Directors, Elections, and Meetings. Page. §301. By-laws, when, how, and by whom adopted 4 2 § 302. Directors, election of, notice, etc 42 § 303. By-laws may provide for what 43 § 304. By-laws open for public inspection; how amended.. 43 § 305. Directors, how many and how elected ; powers 4 4 § 306. Directors must be elected and by-laws adopted at first meeting. [Repealed] 45 § 307. Elections, how conducted 4 5 § SOS. Organization of board of directors, etc 46 §309. Dividends to be made from surplus profits; increase and reduction of capital stock 16 § 310. Directors, removal from office of, etc 48 § 311. Justice of the peace may order meeting, when 4'-> § 312. Elections, how stock must be represented 49 § 313. Representation of minors, insane, or deceased persons 50 § 314. Election may be postponed 50 S3 15. Elections, complaints may be referred to superior court ; relief 51 § 316. False certificate, report, or notice to make officers liable 51 § 317. Meeting by consent to be valid 52 § 318. Proceedings at such meeting to be binding 52 § 319. Meetings, where held 52 § 320. Special meetings, how called 52 § 321. Banking corporations must keep certain books open for inspection 52 § 321o. Change of principal place of business, how effected. . 5 3 §321fr. Stockholders' meetings, who may vote, and use of proxies °" t CHAPTER II. Corporate Stock. Art. I. Stock and stockholders. §§ 322-32H. II. Assessments of stock. §§ 331-349. ARTICLE I. Stock and Stockholders. S 322. Liabilities of stockholders. They mas' be released. when 55 § 323. Certificates, how and when issued 57 §324. Shares are personal property; how transferred; water companies '■-' S § 325. Transfer of shares held by married women, etc. Divi- dends are individual properly 58 § 326. Non-resident stockholders. Bonds required before transfer 5 J §327. Contracl to relieve directors void *. • - r >9 § 328. New or duplicate certificates of shares of stock, courl may order issue ,; " § 329. Lost or destroyed bonds, how duplicates may be obtained. Summons. Judgment. Indemnity 61 X CONTENTS. ARTICLE II. Assessments of Stock. Page. § 331. Directors may levy assessments , 63 § 332. Limitation. How levied 63 § 333. Levy of assessment. Old assessment remaining un- paid 64 § 334. What order shall contain 64 § 335. Notice of assessment. Form 64 § 336. Publication and service of notice 65 § 337. Delinquent notice. Form 65 § 338. Contents of notice 66 § 339. How published 66 § 34*0. Jurisdiction acquired, how 66 §341. Sale to be by public auction 66 § 34 2. Highest bidder to be the purchaser 67 § 34 3. In default of bidders, corporation may purchase 67 §344. Disposition of stock purchased by corporation 67 § 345. Extension of time of delinquent sale 68 § 34G. Assessments shall not be invalidated 68 § 347. Action for recovery of stock, and limitation thereof. . 68 § 34 8. Affidavits of publication. Affidavits of sale. To be filed 69 § 34 9. Waiver of sale. Action to recover assessment 69 CHAPTER III. Corporate Powers. Art. I. General powers. §§ 354-365. II. Records. §§377-378. III. Examination of corporations. §§ 382-384. IV. Judgment against and sale of corporate property. §§ 388-393. ARTICLE I. General Powers. § 354. Powers of corporations 70 § 355. Limitation of powers 71 §356. Issuing or circulating paper money prohibited 71 § 357. Misnomer does not invalidate instrument 72 § 358. Corporation to organize within one year 72 § 359. Increasing and diminishing capital stock or bonded indebtedness, how 72 § 360. Corporations may acquire real property, and how much 76 § 361. Consolidation of mining companies owning adjoining claims. [Repealed] 77 § 361a. Sale, lease, or transfer of business or franchise 77 § 362. Articles of incorporation, how amended 78 § 363. Corporations may own their lots and buildings. [Re- pealed] 79 § 363. Erroneous filing of articles of incorporation, how cor- rected 79 § 364. Sale of concessions or property in foreign country. . . 80 § 365. Lost or destroyed records 80 CIVIL CODE. XI ARTICLE II. Records. Page. § 377. Records, of what, and how kept 83 § 378. Other records to be kept by corporations for profit, and others 83 ARTICLE III. Examination of Corporations, Etc. § 382. Examination into affairs of corporations, how made by officers of state 84 § 383. Examination made by the legislature 8 1 §384. Chapter and article may be repealed. [Repealed].. 85 ARTICLE IV. Judgment Against and Sale of Corporate Property. § 388. Franchise may be treated as property, and sold under execution s -' §389. Purchaser to transact business of corporation 86 § 39 0. Purchaser may recover penalties, etc 86 § 391. Corporation to retain powers after .sale 86 § 392. Redemption s, j § 393. Sale under execution, where made Sl1 CHAPTER IV. Extension and Dissolution of Corporations. § 399. Proceedings to disincorporate. [Repealed] 87 § 400. On dissolution, directors to be trustees for creditors. . 87 § 401. Extension of corporate existence, how made 88 S 402. How corporations may continue their existence. [Re- pealed] 89 S 103. Title one to apply to all corporations, with certain exceptions. [Old section 403 ; repealed] 8!) CHAPTER V. General Provisions Affecting Corporations. § 403. Title one to apply to all corporations, with certain exceptions !l " § 4 04. Power of the legislature to amend or repeal this part. or any title, chapter, article, or section thereof, and to dissolve all corporations created thereunder 90 CHAPTER VI. Foreign Corporations. § 405. Designation of person on whom process may !"• served. Service on the secretary of state, when valid 91 § 406. Foreign corporations, statute of limitations in favor of. Proof of corporate existence. Change of desig- nation 91 § 407. Foreign railway corporations, rights of, in this state 92 XI i CONTENTS. Page. § 108. Foreign corporations to file certified copies of articles of incorporation 93 §409. Foreign corporations, fees to be paid by, on filing certified copies of articles of incorporation 93 § 110. Foreign corporations, penalty for failure to file certi- fied copies Of articles of incorporation 93 TITLE II. Insurance Corporations. Chap. I. General provisions. SS 414-421. II. Fire and marine insurance corporations. §§ 424- k:2. III. Mutual life, health, and accident insurance cor- porations. §§ 437-452. IV. Mutual benefit and life associations. §§ 452a-453. V. To discover fire and save property and human life from destruction thereby. §§ 453a-453c. VI. Life, health, accident, and annuity or endowment insurance <>n tin' assessment plan. §§ 453d-453p. CHAPTER I. General Provisions. § 414. Subscriptions to capital stock opened, and how col- Lected 95 S 415. Purchase and conveyance of real estate 95 S 416. Policies, how issued and by whom signed 96 - pealed] L r >7 §551. Public highways not to be obstructed '. 157 § •"»"-!. Irrigation. Easemenl and water rales L5S CIVIL CODE. XVII TITLE IX. Homestead Corporations. Page. § 557. Time of corporate existence 158 § 55 S. By-laws must specify time for and amount of pay- ment of installments, and penalty for failure to pay. By-laws to be furnished to any member on demand 159 §559. Advertisement and sale of delinquent and forfeited -shares 159 §56<>. May borrow and loan funds — hew. and for what time 159 §561. Minor children, wards, and married women may own stock 160 § 562. Forfeiture for speculating in or owning lands exceed- ing two hundred thousand dollars 1 60 §563. When corporation is terminated, and how.. 161 § 564. Payment of premiums 161 § 565. Annual report to be published 161 § 566. Publication in certain cases 162 TITLE X. Savings and Loan and Banking Corporations. § 571. May loan money — on what terms, how, and to whom, and how long 162 § 572. Capital stock, and rights and privileges thereof 163 § 573. No dividends, except from surplus profits. To con- tract no liability, except for deposits 163 § 571. Property which may be owned by corporations, and how disposed of. Restrictions in purchases as pro- vided above 163 § 575. Married women and minors may own stock in their own right 164 § 576. May issue transferable certificates of deposit. Special certificates 165 § 5 7 7. To provide reserve fund for the payment of losses. . . 165 § 578. Prohibition on director and officer, and what vacates office 166 § 579. Definition of phrase "create debts" 166 § 580. Capital stock required. [Repealed] 1 66 § 581. Amount of money to be loaned on real estate, limited 166 §582. Persons not incorporated must show true names, etc. 166 § 583. Dividends, how and when declared 167 § 583a. Capital stock required to be advertised 167 § 5836. Unclaimed deposits. Statement required 168 TITLE XI. Mining Corporations. § 586. Transfer agencies 169 § 587. Stock issued at transfer agencies 170 § 587«. Consolidation of mining corporations 170 §588. Books and balance sheets to be kepi by secretary. Stockholders' right to inspect 171 S5.su. Right of stockholders to visit mine with expert 172 § 590. Liability of president and directors 173 XVin CONTENTS. TITLE Xla. Corporations for the Formation of Chambers of Commerce, Boards of Trade, Mechanics' Institutes, and Other Kindred Associations. Page. § 591. Formation, organization, and powers of 174 § 592. Capital stock and certificates of 175 § 592a. Powers which may be conferred on the trustees, directors, or the executive committee 175 § 5925. Power to acquire, sell, possess, and use property. ... 175 § 592c. The by-laws 176 § 5 9 2d. Power to levy and collect assessments 176 § 592e. Pre-existing corporations may become entitled to the benefit of this title 176 TITLE XII. Religious, Social, and Benevolent Corporations, and Other Corporations Not Organized for Pecuniary Profit. § 593. Formation of corporations not for profit — number of directors 177 § 594. Additional facts, articles of incorporation to set out. 178 § 595. Amount of real estate limited 178 § 596. Land held by friendly societies and pioneers 179 § 597. Directors to make verified report annually 179 § 598. Sale and mortgage of real estate 179 §599. What may be provided for in their by-laws, etc.... 180 § 600. Members admitted after incorporation 181 § 601. No member to transfer membership, etc 181 § 602. Religious societies may become sole corporations. . . . 181 § 602«. Corporations sole, continuous existence 183 § 603. Churches and religious societies, how incorporated. . . 183 §604. Same 184 § 605. Consolidation of like corporations organized for pur- poses other than profit 185 TITLE Xllre. Societies for the Prevention of Cruelty to Children and Animals. § 607. Formation of corporations 187 § 607a. Power of to receive and dispose of property 18* § 607b. Complaints for violating any law relating to children or animals "' § 607c. Magistrates and police officers to aid the corporation and its officers 188 § 607d. Pre-existing corporations I 88 § 607e. Fines, penalties, and forfeitures, and the disposition to be made thereof 188 § 607f. Members and agents may be authorized to act as police officers • 189 § 607a. Children who may be arrested and brought before a court or magistrate for examination 1»« CIVIL CODE. XIX TITLE XIII. Cemetery Corporations. Page. § 608. How much land may be held, and how disposed of . . 191 § 609. Who are members eligible to vote and hold office. ... 192 § 610. May hold personal property, to what amount. How disposed of 192 § 611. May issue bonds to pay for grounds. Proceeds of sales, how disposed of 192 § 612. May take and hold property or use income thereof, how 193 § 613. Interments in lot and effect thereof. Transfer of rights only made, how 193 § 614. Lot owners previous to purchase to be members of the corporation 194 § 615. May sell lands, how 194 § 616. May hold property. Income, how applied 194 TITLE XIV. Agricultural Fair Corporations. § 620. May acquire and hold real estate, how much 195 § 621. Shall not contract debts or liabilities exceeding amount in treasury 195 § 622. Not for profit. May fix fee, etc., for membership. . 196 TITLE XV. Corporations to Furnish Light for Public Use. § 629. Duty to furnish gas or electricity 196 § 630. When corporations may refuse to supply gas 197 § 630a. When corporations may refuse to supply electric cur- rent for light 197 § 631. Right to enter buildings for inspection 198 § 632. Right to shut off supply of gas or electricity 198 TITLE XVI. Building and Loan Associations. § 633. Formation, powers, and organization 199 S 634. Capital stock 200 § 635. Retiring free shares 201 § 636. Maturity of stock 202 S 637. Loans. Prohibitions. Penalties 202 § 63S. Interest. Securities. Repayment of loans 203 S 639. Arrears in payments. Default. Forfeitures 203 § 6 10. Purchase of real estate 204 § 641. Profits and losses 204 § 642. Withdrawals 205 § 643. Membership 205 § 644. State supervision and control 206 § 645. Annual report 206 § 64 6. Foreign corporations, deposit by 207 §647. Investment in and Loans upon bonds 207 S 64 8. Definition of building and loan associations 207 § 64 8a. Formation of building and loan associations. Rein- corporation of existing associations 208 XX CONTENTS. TITLE XVII. Colleges and Seminaries of Learning. Page. 8 64!). How incorporated 209 § 650. Term and power of trustees 209 § 651. Reincorporation of existing corporations 210 TITLE XVIII. Consolidation of Colleges and Institutions of Higher Education. § 652. Societies and organizations authorized to consolidate. Trustees. Annual reports 211 § 65:;. Transfer of property. Indebtedness. Specific grants. I Ussolul ion 2 12 TITLE XIX. Co-operative Business Corporations. § 65;!«. Purposes for which may be formed 213 TITLE XX. Co-operative Business Associations. § 653b. Formation and purposes of 214 § 653c. Rights, interests, and liabilities of members 214 8 653fZ. The articles of association 215 » 653e. The by-laws 215 § 653f. Execution against the association or its members. . . 217 § 653f/. Purposes of the association, how may be altered. . . . 217 § 653/i. Powers of the association 217 § 653i. Consolidation of associations 21S § 653.?'. Dissolution and winding up of association 219 >: 653fc. Quo warranto to inquire into the right of an associa- tion to do business 219 § 653/. What corporations or associations are not affected by this title 219 TITLE XXI. Non-Profit, Co-operative Agricultural, Viticultural and Horticultural Associations. § 653m. Formation and purposes of 220 § 653m. Membership 220 8 653o. Articles of incorporation 221 $ 653p. By-laws 222 § 653g. Powers of association 223 8 653?'. Amendment of articles of incorporation 224 § 653s. Quo warranto 225 TITLE XXII. Non-Profit Co-operative Corporations. 5 653£. Formation and purposes of § 653M. Membership 226 § 653v. Articles of incorporation 226 § 653w. By-laws 227 civit. code. xxi Page. § 653a;. Powers of corporation 228 § 6532/. Amendment of articles of incorporation 229 § 653#. Quo warranto 230 § 653«a.Particular corporations 230 § 6532b.Voting 230 DIVISION SECOND. PART I. Property in General. TITLE I. Nature of Property. § 654. Property, what 231 § 655. In what property may exist 231 PART III. Personal or Movable Property. TITLE II. Particular Kinds of Personal Property. CHAPTER IV. Other Kinds of Personal Property. § 991. Trade-marks 232 PART IV. Acquisition of Property. TITLE IV. Transfer. CHAPTER IV. Recording Transfers. ARTICLE I. What May Be Recorded. § 1161. Acknowledgment of instrument by a person ; by a corporation : 233 § 1163. Residence recorded for the purpose of service of summons. Pee. Index 234 ARTICLE III. Proof and Acknowledgment of Instruments. S 1185. Requisites for acknowledgment or proof of instru- ment 234 § 1190. Form of acknowledgment by corporation 235 XXII CONTEXTS. TITLE VI. Wills. CHAPTER I. Execution and Revocation of Wills. Pace. § 1275. Who may take by will 236 S 1313. Restriction on devise for charitable purposes 236 TITLE X. Location of Mining Claims, Tunnel Rights and Mill Sites. S 1426. Lode claims, how located 237 S 1}20«. Boundaries 238 S 1426b. Record of location, lode claim 238 § 1426c. Placer claim, location of 238 S 1426*?. Record of location, placer claim 239 § 1 I26e. Tunnel right, location of 239 S 1426/. Boundaries of tunnel location 239 § 1426fif. Record of location, tunnel claim 240 S 142G/*. Amended notice of mining claim 240 § 1426/. Surveyed claims 240 S 1426./. Mill site, location of 241 § 1426fc. Record of location, mill site 24 1 § 1426?. Yearly work required, mining claim 241 § 1426»*. Record of work 241 S 142G«. Recorder's fee 242 S !426o. Delinquent co-owners, notice to; payment by delin- quents 2 12 S 14 26p. Records to be received in evidence 243 S 1 4 26(/. Copies of records as evidence 2 4 2 S 1426/'. Effect on mining districts 244 S J 426s. Neglect to perform development work 2 11 DIVISION THIRD. PART IV. Obligations Arising from Particular Transactions. TITLE I. Sale. CHAPTER II. Rights and Obligations of the Seller. • ARTICLE III. Warranty. § 1772. Trade-marks S 1772. Other marks 2 17 TITLE III. Deposit. CHAPTER II. Deposit for Keeping. CIVIL CODE. XXIII CHAPTER [Article] Ilia. Warehousemen. Page. §1858. Warehouse receipts, when must not be issued 246 § 1858a. Property not to be removed without consent in writing - *6 §18586. Warehouse receipts, classification and effect of.... 247 § 1858c. Endorsement on negotiable receipt of property de- livered 247 § 18580". Negotiable receipts and their effect 247 § 1858e. Liability for loss by fire 248 § 1858/\ Penalties and liabilities 248 TITLE VII. Carriage. CHAPTER V. Common Carriers. Art. I. Common carriers in general. §5 2168-2177. II. Common carriers of persons. §§ 2180-2191. III. Common carriers of property. §§ 2194-2204. IV. Common carriers of messages. SS 2207-2209. ARTICLE I. Common Carriers in General. § 2168. Common carrier, what 249 § 2169. Obligation to accept freight 249 § 2170. Obligation not to give preference 249 S 2171. What preferences he must give 27>n § 2172. Starting 250 § 2173. Compensation 250 §2174. Obligations of carrier altered only by agreement.. 250 § 2175. Certain agreements void 250 § 2176. Effect of written contract 251 § 2177. Loss of valuable letters 251 ARTICLE II. Common Carriers of Persons. § 2180. Obligation to carry luggage 251 S 2 1 SI . Luggage, what. Bicycles 252 § 2182. Liability for luggage 252 §2183. Luggage, how carried and delivered 252 § 2184. Obligation to provide vehicles 253 § 2185. Seats for passengers 253 S 2186. Regulations for conduct of business 253 S 2187. Pare, when payable 253 S 2188. Ejection of passengers 2.".:: § 2189. Passi-ngi-r who has not paid fare 253 § 2190. Fare not payable a.fter ejection 25 ) § 2191. Carrier's lien 254 XXIV CONTENTS. ARTICLE III. Common Carriers of Property. Page. § 2194. Liability of inland carriers for loss 254 § 2195. When exemptions do not apply 255 § 2196. Liability for delay 255 § 2197. Liability of marine carriers 255 §2198. Same 255 § 2199. Perils of sea, what 255 § 2200. Consignor of valuables to declare their nature 256 § 2201. Delivery of freight beyond usual route 256 § 2202. Proof to be given in case of loss 256 § 2203. Carrier's services, other than carriage and delivery. 256 S 2204. Sale of perishable property for freight 256 ARTICLE IV. Common Carriers of Messages. § 2207. Order of transmission of telegraphic messages 257 § 2208. Order in other cases 257 § 2209. Damages when message is refused or postponed. . . . 257 POLITICAL CODE. PORTIONS RELATING TO PRIVATE CORPORATIONS. Preliminary Provisions. 10. Holidays 258 11. Same 259 17. Words and terms used in the Political Code, defini- tion of 259 PART III. Of the Government of the State. TITLE I. Public Officers. CHAPTER III. Executive Officers. ARTICLE III. Of the Governor. 380. General duties 260 ARTICLE V. Of the Secretary of State. 416. Fees 261 POLITICAL CODE. XXV ARTICLE XVI. Insurance Commissioner. Pack. § 588. Eligibility 265 § 589. Salary 265 § 591. Rooms. Expenses. Special fund 265 §592. Office 265 §593. Bond 266 § 594. Insurance classified 266 § 594a. Foreign companies, deposit of securities 269 § 595. General duties of commissioner. Companies may surrender certificate ; manner of 270 § 596. Certificate to do business. Licenses to procure in- surance in companies not authorized to do busi- ness. Affidavit required. Account of business. Bond of licensee. Examination of policies issued by licensee 272 § 596a. Attorney general to examine documents 274 § 597. Examination of companies alleged to be insolvent. Inspection of books 274 § 598. Policyholders may secure information about policies. Company must make statement. Lost policy, stay of rights 275 § 599. Subpoena 276 § 600. Records of commission 276 § 600a. Restoration of authority after revocation. I Re- pealed] 276 § 601. Employment of actuary 277 § H02. What constitutes insolvency 277 § 602a. How condition of company shall be estimated. How reserve to be computed 27S § 603. Insolvent companies, notice of revocation of certi- ficate 280 § 603a. Restoration of authority after revocation 281 § 604. Report to attorney general 281 § 60 i. Trade-mark on products 341 § 3197. Exclusive use of trade-mark, how secured 341 § 3198. Record of trade-marks 341 § 3199. Assignments. Injunctions 342 § ::200. Use of by labor union 342 S 3201. Infringement of trade-mark used by trade union. . . . 342 CHAPTER X. Hours of Labor. § 3246. Twelve hours on street cars 343 § 3250. Hours of labor on street cars. Penalty for violation 34 3 CHAPTER XV. Licenses. ARTICLE II. Classification and Taxes. S 3378. Bridge, ferry, wharf, chute, or pier license 344 § 3379. Brokers, trust companies, and others 344 POLITICAL CODE. XXXl TITLE IX. Revenue. CHAPTER I. Property Liable to Taxation. Page. § 3607. Property subject to taxation 345 § 3608. Shares of stock in corporations 346 § 3609. Shares of national banks 346 §3610. Same 347 § 3611. Exemption of church property 347 CHAPTER II. Definitions. § 3617. Definition of terms and words 34 S CHAPTER III. Assessment of Property. § 3627. Property, how assessed 350 § 3628. Franchises. Other taxable property 351 § 3629. Contents of statement required by assessor 353 § 3630. Blank forms of statement, and affidavit therefor. . . 354 § 3641. Property of firm or corporation assessed where situated 355 § 3643. Ferries and toll bridges, where assessed 355 § 3663. Assessment of water ditches, toll roads and tele- graph lines 355 § 3664. Agent of corporation, statement by to state board of equalization 356 § 3665. Assessment of railway franchises and properties. . . 357 § 3666. Record of assessment of railways 359 § 3667. County rate of taxation and notice to controller. ... 360 § 3668. Publication by controller 361 § 3669. Certain taxes to be paid state treasurer 362 § 3670. Controller to sue for delinquent taxes 364 § 3671. Basis of taxation for counties 365 CHAPTER IV. Equalization of Taxes. ARTICLE II. State Board of Equalization. § 3692. Powers and duties of board 365 XXXII CONTENTS. PART IV. Of the Government of Counties, Cities and Towns. TITLE II. The Government of Counties. CHAPTER I. Counties as Bodies Corporate. PAGE. § 1004. Restriction on loaning credit 369 CHAPTER IV. Legislative Department. ARTICLE IV. General Permanent Powers. S 4041. General powers of the board 369 ARTICLE V. Additional Powers and Duties. § 104 7. Franchises for construction of paths and roads for bicycles and other horseless vehicles 372 CHAPTER X. Salaries and Fees of Office. ARTICLE LX. Fees of Officers. S 4300. Fees of county, township and other officers 372 § 1300a. County clerk's fees 372 CHAPTER XII. Miscellaneous Provisions. S 4 323. When majority of supervisors interested in applica- tion, procedure 374 TITLE III. The Government of Cities. CHAPTER III. Legislative Powers. S 1110. Common council may grant authority to gas and water companies 375 S 4 111. Reservai ions by cities 3 7"> S 1 1 1 2. ( 'out racl for gas and water 376 S I 1 1 :;. Restrictions and conditions to be imposed 376 CODE OF CIVIL PROCEDURE. XXXIII CODE OF CIVIL PROCEDURE. PORTIONS RELATING TO PRIVATE CORPORATIONS- Preliminary Provisions. Page. § 10. Holidays 377 §11. Same 378 § 17. Certain terms used in this code defined 378 PART I. Of Courts of Justice. TITLE I. Organization and Jurisdiction. CHAPTER VII. General Provisions Respecting Courts of Justice. ARTICLE III. Judicial Days. § 133. Days on which courts, etc., may be held 379 § 134. Nonjudicial days 380 § 135. Appointments on nonjudicial days 380 PART II. Of Civil Actions. TITLE II. Of the Time of Commencing Civil Actions. CHAPTER III. The Time of Commencing Actions Other Than for the Recovery of Real Property. § 341. Within six months 381 § 348. No limitations where money deposited in bank 382 CHAPTER IV. General Provisions as to the Time of Commencing Actions. § 359. This title not applicable to actions against directors, etc. Limitations in such cases prescribed 382 TITLE IV. Of the Place of Trial of Civil Actions. § 395. Other actions according to the residence of the parties 383 XXXIV CONTENTS. TITLE V. Of the Manner of Commencing Civil Actions. Page. § 411. Summons, how served 384 § 412. Publication of summons, when defendant is absent from the state, concealed, or a foreign corporation having no agent, etc 384 TITLE VI. Of the Pleadings in Civil Actions. CHAPTER IV. The Answer. § 437«. Actions to recover insurance, what defendant claim- ing exemption must set up 386 CHAPTER VI. Verification of Pleadings. § 446. Verification of pleadings 386 TITLE VII. Of the Provisional Remedies in Civil Actions. CHAPTER III. Injunction. § 531. Injunctions to suspend business of a corporation, how granted 387 CHAPTER IV. Attachment. § 541. Shares of stock and debts due defendant, how at- tached and disposed of •": vs § 542. How real and personal property shall be attached . . 3SS CHAPTER V. Receivers. § 564. Appointment of receiver 3 ■') § 565. Appointment of receivers upon dissolution of cor- porations 391 TITLE IX. Of the Execution of the Judgment in Civil Actions. CHAPTER I. The Execution. § 688. What shall be liable to be seized in execution. Not to be affected till a levy is made 391 § 690. What exempt from execution 392 CODE OF CIVIL PROCEDURE. XXXV TITLE X. Actions in Particular Cases. CHAPTER V. Actions for the Usurpation of an Office or Franchise. Page. 803. Action may be brought against party usurping, etc., any office or franchise 393 TITLE XIV. Of Miscellaneous Provisions. CHAPTER VI. Of Costs. 1036. When plaintiff is a non-resident or a foreign cor- poration, defendant may require security for costs 394 1037. If such security is not given, the action may be dis- missed 395 CHAPTER VII. General Provisions. 1056. Corporations may become sureties on undertakings and bonds 395 1057. Undertakings or bonds, requisites of 396 PART III. Of Special Proceedings of a Civil Nature. TITLE VI. Of the Voluntary Dissolution of Corporations. § 1227. How dissolved 39S § 1228. Application, what to contain 398 § 1229. Application, how signed and verified 399 § 1230. Filing application and publication of notice 399 § 1231. Objections may be filed 399 § 1232. Hearing of application 399 § 1233. Judgment roll and appeals 399 § 1234. Application by savings and loan society 400 TITLE IX. Of Change of Names. § 1275. Jurisdiction 401 § 1276. Application for change of name, how made 401 § 1277. Order to show cause; publication; proof of publica- tion 402 § 1278. Hearing of application and remonstrance ; corpora- tions ; change of name 402 § 1279. County clerk to file copy of decree with secretary of state 403 XXXVI CONTENTS. TITLE XI. Of Proceedings in Probate Courts. CHAPTER III. Of Executors and Administrators, Etc. ARTICLE I. P AGE . Letters Testamentary and of Administration, Etc. § 134 8. Corporations as executors 403 PENAL CODE. PORTIONS RELATING TO PRIVATE CORPORATIONS. Preliminary Provisions. Page. S 7. Certain terms defined in the senses in which they are used in this code 405 PART I. Of Crimes and Punishments. TITLE VII. Of Crimes Against Public Justice. CHAPTER VII. Other Offenses Against Public Justice. S ITS. Officers of corporations not to employ Chinese. [Re- pealed] 408 S 179. Corporations not to employ Chinese. [Repealed]... 408 TITLE IX. Of Crimes Against the Person and Against Public Decency and Good Morals. CHAPTER II. Abandonment and Neglect of Children. § 273e. Minors not to deliver messages, etc., to certain places 408 5 273f. Sending children to immoral places 409 CHAPTER VII Of Crimes Against Religion and Conscience, and Other Offenses Against Good iviorals. 5:!l(i. Advertisements, etc., on flag prohibited. Penalty. Ex- ceptions 409 PENAL CODE. XXXVII CHAPTER XI. Pawnbrokers. Page. § 339. Failing to keep a register 410 § 343. Refusing to allow an officer with search-warrant to inspect register of pledged articles 411 CHAPTER XII. Other Injuries to Persons. § 349a. Frauds in stamping and labeling produce and manu- factured goods 411 § 350. Counterfeiting trade-marks 412 § 351. Selling goods which bear counterfeit trade-marks. . . 412 § 352. Definition of "counterfeited trade-marks," etc 413 § 353. "Trade-mark" defined 413 § 354. Refilling casks, etc., bearing trade-mark 413 § 354 %. Selling or refilling casks, etc., bearing trade-mark. . . 414 § 354%. Destroying or defacing trade-marks 414 § 365. Innkeepers and carriers refusing to receive guests. . . 414 TITLE X. Of Crimes Against the Public Health and Safety. § 369a. Street cars to have proper brakes and fenders 415 § 369b. Confining cattle, sheep, or swine in cars for longer than certain time 416 § 375a. Record of sale of explosives 416 § 383a. Sale of process or renovated butter 117 S 386. Maintaining bridge or ferry without authority 417 5 387. Violating condition of undertaking to keep ferry 118 S 388. Riding or driving faster than a walk on toll bridges. 418 § 389. Crossing toll bridges, etc., without paying toll 418 § 402c. Unsafe scaffolding, ladders, etc 418 TITLE XI. Of Crimes Against the Public Peace. §421. National Guard, discrimination against members of.. 419 TITLE XII. Of Crimes Against the Revenue and Property of This State. S 131. Refusing to give names of persons employed, etc, to tax or license collector I I 9 S 135. Carrying on business without license 420 S I 39. Effecting insurance on account of foreign rompanies that have not complied with the laws of this state. 120 TITLE XIII. Of Crimes Against Property. CHAPTER I. Embezzlement. § 504. When officer, etc., guilty of embezzlement 420 8 505. Carrier, when guilty of embezzlement 421 § 506. When trustee, banker, etc., guilty of embezzlement. . 421 XXXVIII CONTENTS. CHAPTER VII. Extortion. PAGE § 525. Officers of railroad company making overcharges. . . 421 CHAPTER XI. Fraudulent Destruction of Property Insured. § 548. Burning or destroying property insured 422 § 549. Presenting false proofs upon policy of insurance. . . . 422 CHAPTER XIII. Fraudulent Insolvencies by Corporations and Other Frauds in Their Management. § 557. Frauds in subscriptions for stock of corporations. ... 423 S 558. Frauds in organization or increasing capital 423 § 559. Unauthorized use of names in prospectus 424 § 560. Misconduct of directors of stock corporations 424 § 561. Officer of savings bank overdrawing account 425 § 562. Receiving deposits in insolvent banks 425 § 563. Frauds in keeping accounts in books of corporations. 425 § 564. Officer of corporation publishing false reports 426 § 565. Officer must permit inspection of books 426 § 566. Contracting debt of railway 426 § 567. Same .....'. 427 § 568. Director presumed to know condition of corporation. 427 § 569. Director present at meeting, when presumed to assent 407 § 570. Director when absent, when presumed to assent 427 § 571. Foreign, doing business in this state 428 § 572. Director defined 428 TITLE XV. Miscellaneous Crimes. CHAPTER I. Violation of the Laws for the Preservation of Fish and Game. § 627o. Unlawful carrying of deer and other game 428 § 6276. Limit as to shipment of certain game 429 § 629. Screen over canal, ditch, mill race, etc 429 § 6312 Cal. 55; 106 Cal. 116, 119; 114 Cal. 395; 120 Cal. 386; 121 Cal. 19; 123 Cal. 151; 126 Cal. 118; 139 Cal. 400; 144 Cal. 684; 151 Cal. S00; VII Cal. App. Dec. 109. 4 STATE CONSTITUTION. ART. IV, § 25 Local and special legislation forbidden. Sec. 25. The legislature shall not pass local or special laws in any of the following enumerated cases, that is to say : Sixth — Changing the names of persons or places. Subdivision G— 123 Cal. 527. Sixteenth — Releasing or extinguishing, in whole or in part, the indebtedness, liability, or obligation of any corporation or person to this state, or to any municipal corporation therein. Subdivision 16— 126 Cal. 117. 'Nineteenth — Granting to any corporation, association, or indi- vidual any special or exclusive right, privilege, or immunity. Subdivision 19—100 Cal. 120; 114 Cal. 490; US Cal. 306 ; 124 Cal. 60S ; 143 Cal. 414. Twenty-third — Regulating the rate of interest on money. Subdivision 23—67 Cal. 360. Twenty-fifth — Chartering or licensing ferries, bridges, or roads. Subdivision 25 — 114 Cal. 406. Twenty-sixth — Remitting fines, penalties, or forfeitures. Thirty-third — In all other cases where a general law can be made applicable. Subdivision 33—55 Cal. 490, 491, 495; 81 Cal. 49S ; 84 Cal. 76; 91 Cal. 249; 94 Cal. 620; 100 Cal. 120; 109 Cal. 497 ; 111 Cal. 371. 372, 569 ; 112 Cal. 471 ; 114 Cal. 410; 117 Cal. 363; 118 Cal. 306, 404; 119 Cal. 523; 124 Cal. 698; 126 Cal. 230; 127 Cal. 7. 684; 130 Cal. 134; 132 Cal. 221 ; 140 Cal. 4S7 ; 144 Cal. 269 ; 148 Cal. 14S ; 149 Cal. 399 ; 150 Cal. 322 ; 152 Cal. 231 ; 1 Cal. App. 573; 6 Cal. App. 240; VII Cal. App. Dec. 111. Citations to section 25 — General: 55 Cal. 490, 493 ; 552, 618 ; 57 Cal. 613 ; 58 Cal. 576 ; 59 Cal. 8 ; 60 Cal. 32, 1S9, 191 ; 61 Cal. 38, 267 ; 63 Cal. 382; 65 Cal. 123, 290; 67 Cal. 211, 360. 595; 72 Cal. 466; 73 Cal. 77; 81 Cal. 499; 83 Cal. 402, 405, 414; 84 Cal. 229; 85 Cal. 413; S7 Cal. 79; 91 Cal. 249; 93 Cal. 396, 400; 94 Cal. 620. 624; 9S Cal. 224; 103 Cal. 395; 104 Cal. 351, 614; 105 Cal. 016; 109 Cal. 335; 110 Cal. 31; 111 Cal. 102, 105, 569; 112 Cal. 471; 113 Cal. 514, 645 ; 114 Cal. 334, 410 ; 120 Cal. 401 ; 121 Cal. 262, Art. IV, § 25 state constitution. 5 267 ; 122 Cal. 148, 556 ; 123 Cal. 25. 527, 528 ; 124 Cal. 696, 698; 126 Cal. 117, 122, 123, 230: 127 Cal. 7; 132 Cal. 221 ; 135 Cal. 471, 518 ; 137 Cal. 518, 520 ; 138 Cal. 381; 139 Cal. 541 ; 140 Cal. 480; 142 Cal. 195: 143 Cal. 414 ; 144 Cal. 269 ; 1 Cal. App. 573 ; XXXVI Cal. Dec. 264, 312. Lotteries prohibited. Sec. 26. The legislature shall have no power to authorize lotteries or gift enterprises for any purpose and shall pass laws to prohibit the sale in this state of lottery or gift enterprise tickets or tickets in any scheme in the nature of a lottery. The legislature shall pass laws to prohibit the fictitious buying and selling of the shares of the capital stock of corporations in any stock board, stock exchange or stock market under the control of any corporation or association. All contracts for the purchase or sale of shares of the capital stock of any corporation or asso- ciation without any intention on the part of one party to deliver and of the other party to receive the shares, and contemplating merely the payment of differences between the contract and mar- ket prices on divers days, shall be void, and neither party to any such contract shall be entitled to recover any damages for failure to perform the same, or any money paid thereon, in any court of this state. [Amendment adopted November 3, 1908.] [Original section.] Sec. 26. The legislature shall have no power to authorize lotteries or gift enterprises for any purpose, and shall pass laws to prohibit the sale in this state of lottery or gift enterprise tickets, or tickets in any scheme in the nature of a lottery. The legislature shall pass laws to regulate or pro- hibit the buying and selling of the shares of the capital stock of corporations in any .stock board, stock exchange, or stock market under the control of any association. All contracts for the sale of shares of the capital stock of any corporation or association, on margin, or to be delivered at a future day, shall be void, and any money paid on such contracts may be recovered by the party paying it by suit in any court of competent jurisdiction. 67 Cal. 93 ; 68 Cal. 289 ; 87 Cal. 607 ; 89 Cal. 378 ; 103 Cal. 247, 328; 104 Cal. 599; 109 Cal. 692; 111 Cal. 372; 119 Cal. 465; 127 Cal. 118; 130 Cal. 326. 331; 14(i Cal. 65S; 150 Cal. 241. 6 STATE CONSTITUTION. ART. IV, § 31 Public credit to corporations prohibited. Sec. 31. The legislature shall have no power to give or to lend, or to authorize the giving or lending, of the credit of the state, or of any county, city and county, city, township, or other political corporation or subdivision of the state now existing, or that may be hereafter established, in aid of or to any person, association, or corporation, whether municipal or otherwise, or to pledge the credit thereof in any manner whatever, for the pay- ment of the liabilities of any individual, association, municipal or other corporation whatever ; nor shall it have power to make any gift, or authorize the making of any gift, of any public money or thing of value, to any individual, municipal or other corpora- tion whatever; provided, that nothing in this section shall pre- vent the legislature granting aid pursuant to section twenty-two of this article ; and it shall not have power to authorize the state, or any political subdivision thereof, to subscribe for stock, or to become a stockholder in any corporation whatever. 57 Cal. 170, 171, 176; 61 Cal. 43: 72 Cal. 473. 474, 475 73 Cal. 30: 74 Cal. 125: 77 Cal. 371. 475; SO Cal. 270 83 Cal. 205 ; 91 Cal. G51 ; 92 Cal. GOO ; 93 Cal. 320, 329 95 Cal. 150 : 97 Cal. 252 ; 98 Cal. 53 : 99 Cal. 21 ; 104 Cal. 090. 093; 106 Cal. 124; 109 Cal. 380, 580; 112 Cal. 315; 115 -Cal. 532, 533; 117 Cal. 170; 118 Cal. 540; 123 Cal. 498; 120 Cal. 118; 138 Cal. 273; 143 Cal. 331; 144 Cal. (192, 094; 149 Cal. 528: 151 Cal. 800; 152 Cal. 735; 1."!:; Cal. 22.".. 228: XXXVI Cal. Dec. 114; Cal. App. 747: VI Cal. App. Dec. 545; VII Cal. App. Dec. 112. Charges by certain corporations, regulation of. Sec. 33. The legislature shall pass laws for the regulation ami limitation of the charges for services performed and com- morlities furnished by telegraph and gas corporations, and the charges by corporations or individuals for storage and wharfage, in which there is a public use; and whore laws shall provide for !ii' selection of any person or officer to regulate and limit such rates, no such person or officer shall be selected by any corpora- tion or individual interested in the business to be regulated, and no person shall be selected who is an officer or stockholder in any such corporation. 145 Cal. 633, 634, <;::r>. 636. Art. X. § G state constitution. 7 Article X. STATE INSTITUTIONS AND PUBLIC BUILDINGS. Sec. 6. Convict labor. Convict labor. Sec. 6. After the first day of January, eighteen hundred and eighty-two. the labor of convicts shall not be let out by contract to any person, co-partnership, company, or corporation, and the legislature shall, by law, provide for the working of convicts for the benefit of the state. Article XI. COUNTIES, CITIES, AND TOWNS. Sec. 13. Municipal power not granted by legislature. 16 ^.Deposit of moneys belonging to state, county, or munici- pality. 19. Use of streets for gas and water pipes. Municipal power not granted by legislature. Sec. 13. The legislature shall not delegate to any special commission, private corporation, company, association, or indi- vidual, any power to make, control, appropriate, supervise, or in any way interfere with any county, city, town, or municipal improvement, money, property, or effects, whether held in trust or otherwise, or to levy taxes or assessments, or perform any municipal functions whatever. 55 Cal. 618 ; 59 Cal. 96 ; 60 Cal. 32 ; 61 Cal. 277 : 64 Cal. 507 ; 71 Cal. 311, 312, 313, 314, 630, 631 ; SO Cal. 270 ; 86 Cal. 48; 87 Cal. 007: SS Cal. 359, 412; 97 Cal. 21!); 99 Cal. 560 ; 112 Cal. 329, 564 ; 113 Cal. 399 ; 118 Cal. 308 ; 121 Cal. 552 ; 125 Cal. 193, 194 ; 126 Cal. 134 ; 133 Cal. 103; 144 Cal. 333; 148 Cal. 631; 150 Cal. 82, 86; 152 Cal. 234. Deposit of moneys belonging to state, county or municipality. Sec. 16%. All moneys belonging to the state, or to any county or municipality within this state, may be deposited in any national bank or banks within this state, or in any bank or banks organized under the laws of this state, in such manner 8 STATE CONSTITUTION. ART. X, § 16% and under such conditions as may be provided by law ; provided, that such bank or banks in which such moneys are deposited shall furnish as security for such deposits, bonds of the United States, or of this state or of any county, municipality or school district within this state, to be approved by the officer or officers designated by law, to an amount in value of at least ten per cent in excess of the amount of such deposit; and provided, that such bank or banks shall pay a reasonable rate of interest, not less than two per cent per annum on the daily balances therein deposited; and provided, that no deposit shall at any one time exceed fifty per cent of the paid-up capital stock of such deposi- tory bank or banks; and provided further, that no officer shall deposit at one time more than twenty per cent of such public moneys available for deposit in any bank while there are other qualified banks requesting such deposits. [New section; adopted 'November 6, 1906. 152 Cal. 8, 9. Use of streets for gas and water pipes. Sec. 19. In any city where there are no public works owned and controlled by the municipality for supplying the same with water or artificial light, any individual, or any company duly incorporated for such purpose under and by authority of the laws of this state, shall, under the direction of the superintendent of streets, or other officer in control thereof, and under such gen- eral regulations as the municipality may prescribe for damages and indemnity for damages, have the privilege of using the pub- lic streets and thoroughfares thereof, and of laying down pipes and conduits therein, and connections therewith, so far as may be necessary for introducing into and supplying such city and its inhabitants either with gaslight or other illuminating light, or with fresh water for domestic and all other purposes, upon the condition that the municipal government shall have the right to regulate the charges thereof. [Amendment adopted November J/, 188/,.] [Original section.] Sec. 19. No public work or improve- ment of any description whatsoever shall he done or made, in any city, in, upon or about the streets thereof, or otherwise, the cost and expense of which is made chargeable or may be assessed upon private property by special assessment, unless an estimate of such cost and expense shall be made, and an assessment, in Art. X, § 19 state constitution. 9 proportion to benefits, on the property to be affected or benefited, shall be levied, collected, and paid into the city treasury before such work or improvement shall be commenced, or any contract for letting or doing the same authorized or performed. In any city where there are no public works owned and controlled by the municipality, for supplying the same with water or artificial light, any individual, or any company duly incorporated for such purpose under and by authority of the laws of this state, shall, under the direction of the superintendent of streets, or other officer in control thereof, and under such general regulations as the municipality may prescribe for damages and indemnity for damages, have the privilege of using the public streets and thor- oughfares thereof, and of laying down pipes and conduits therein, and connections therewith, so far as may be necessary for intro- ducing into and supplying such city and its inhabitants either with gaslight or other illuminating light, or with fresh water for domestic and all other purposes, upon the condition that the municipal government shall have the right to regulate the charges thereof. 54 Cal. 246 ; 56 Cal. 054 ; 57 Cal. 016 ; 61 Cal. 24, 277 ; 62 Cal. 108, 209, 232 ; 09 Cal. 400, 481, 482, 515 ; 72 Cal. 5, ; 73 Cal. 75 ; 79 Cal. 2S1 ; 81 Cal. 497 ; 82 Cal. 307 ; 92 Cal. 342 ; 93 Cal. 161 ; 98 Cal. 618 ; 118 Cal. 5, 483, 584, 586 ; 129 Cal. 402, 403 ; 137 Cal. US, 119 ; 142 Cal. 287; 143 Cal. 371; 145' Cal. 032, 033, 034, 035, 039, 040; 148 Cal. 315, 327, 333, 370 ; 150 Cal. 55S, 559 ; 151 Cal. 428; 152 Cal. 580, 594; 153 Cal. 27; 1 Cal. App. 073, 677, 678 ; 2 Cal. App. 500, 722. 10 STATE CONSTITUTION. AET. XII, § 1 Article XII. CORPORATIONS. Sec. 1. Corporations, how formed. 2. Corporations, dues from. 3. Corporation stockholders and directors, liability of. 4. Corporations, what they include. 5. Banking corporations. 6. Existing charters, invalid in certain cases. 7. Franchises or charters not to be extended by legislature. Extension of corporate existence. 8. Corporate property subject to eminent domain. 9. Limitation on business of corporations. 10. Liabilities not released by transfer of franchise. 11. Issuance of stock. 12. Elections for directors. 13. State credit not to be loaned. 14. Corporations must maintain a place of business. 15. Foreign corporations. 16. Corporations may be sued, where. 17. Common carriers. 18. Limit on interest of an officer or agent. 19. Public officers not to receive passes. 20. Earnings not to be shared — Rates not to be increased. 21. Discrimination forbidden. 22. Railroad commissioners — Number, election, term, quali- fication, powers and duties, how removed from office. 23. Railroad districts. 24. Legislature to enforce this article. Corporations, how formed. Section 1. Corporations may be formed under general laws, but shall not be created by special act. All laws now in force in (his state concerning corporations, and all laws that may be hereafter passed pursuant to this section, may be altered from time to time or repealed. 61 Cal. 38, 201 ; 64 Cal. 253 ; 73 Cal. 77 ; 77 Cal. 371 ; S3 Cal. 306, 413 ; 85 Cal. 347 ; 92 Cal. 316 ; 109 Cal. 5S4 ; 123 Cal. 527: 125 Cal. 412; 131 Cal. 33; 153 Cal. 702, 703; 1 Cal. App. 67; XXXVI Cal. Dec. 264, 266, 267, 271. Art. XII, § 2 state constitution. 11 Corporations, dues from. Sec. 2. Dues from corporations shall be secured by such indi- vidual liability of the corporators and other means as may be prescribed by law. 62 Cal. 400. 463 ; 64 Cal. 253 ; 125 Cal. 410. Corporation stockholders and directors, liability of. Sec. 3. Each stockholder of a corporation, or joint-stock association, shall be individually and personally liable for such proportion of all its debts and liabilities contracted or incurred, during the time he was a stockholder, as the amount of stock or shares owned by him bears to the whole of the subscribed capital stock, or shares of the corporation or association. The directors or trustees of corporations and joint-stock associations shall be jointly and severally liable to the creditors and stockholders for all moneys embezzled or misappropriated by the officers of such corporation or joint-stock association, during the term of office of such director or trustee. Nothing in the preceding paragraph of this section shall be held to apply to any exposition company organized to promote and carry on any international exposition or world's fair within the State of California, and the liability of stockholders in any such exposition company shall be and the same is hereby limited to an amount not exceeding the par value of the stock of said corporation subscribed for by such stockholders. [Amendment adopted November 3, 1908.] [Original section.'] Sec. 3. Each stockholder of a corpora- tion or joint-stock association shall be individually and person- ally liable for such proportion of all its debts and liabilities con- tracted or incurred during the time he was a stockholder, as the amount of stock or shares owned by him bears to the whole of the subscribed capital stock or shares of the corporation or asso- ciation. The directors or trustees of corporations and joint- stock associations shall be jointly and severally liable to. the creditors and stockholders for all moneys embezzled or misappro- priated by the officers of such corporation or joint-stock associa- tion during the term of office of such director or trustee. 59 Cal. 286 ; 62 Cal. 448, 461, 463 ; 63 Cal. 236, 239 ; 87 Cal. 32; 97 Cal. 95; 108 Cal. 425; 111 Cal. 63, 66, 67, 71 ; 114 Cal. 331 ; 116 Cal. 384 ; 122 Cal. 523, 524 ; 124 Cal. 150; 125 Cal. 410. 412; 136 Cal. 437, 449; 142 Cal. 3S4; 143 Cal. 224: 147 Cal. 640; 4 Cal. App. 292, 293; 5 Cal. App. 705 ; XXXVI Cal. Dec. 285. 12 STATE CONSTITUTION. ART. XII, § 4 Corporations, what they include. Sec. 4. The term corporations, as used in this article, shall be construed to include all associations and joint-stock com- panies having any of the powers or privileges of corporations not possessed by individuals or partnerships, and all corporations shall have the right to sue and be subject to be sued, in all courts, in like cases as natural persons. 65 Cal. 123 ; 95 Cal. 592 ; 153 Cal. 703. Banking corporations. Sec. 5. The legislature shall have no power to pass any act granting any charter for banking purposes, but corporations or associations may be formed for such purposes under general laws. No corporation, association, or individual shall issue or put in circulation, as money, anything but the lawful money of the United States. 73 Cal. 77 ; XXXVI Cal. Dec. 264, 267. Existing charters, invalid in certain cases. Sec. 6. All existing charters, grants, franchises, special or exclusive privileges, under which an actual and bona fide organ- ization shall not have taken place, and business been commenced in good faith, at the time of the adoption of this constitution, shall thereafter have no validity. Franchises or charters not to be extended by legislature — Exten- sion of corporate existence. Sec. 7. The legislature shall not extend any franchise or charter, nor remit the forfeiture of any franchise or charter of any quasi-public corporation now existing or which shall here- after exist under the laws of this state. The term of existence of any other corporation now or hereafter existing under the laws of this state, may be extended, at any time prior to the expiration of its corporate existence, for a period not exceeding fifty years from the date of such extension, by the vote or written consent of stockholders representing two thirds of its capital stock or of two thirds of the members thereof. A cer- tificate of such vote or consent shall be signed and sworn to by the president and secretary, and by a majority of the directors of the corporation and filed and certified in the manner and upon payment of fees required by law for filing and certifying Art. XII, § 7 state constitution. 13 articles of incorporation, and thereupon the term of the corpora- tion shall be extended for the period specified in such certificate, and such corporation shall thereafter pay all annual or other fees required by law to be paid by corporations. [Amendment adopted November 3, 1908.] [Original section.] Sec. 7. The legislature shall not extend any franchise or charter, nor remit the forfeiture of any fran- chise or charter, of any corporation now existing, or which shall hereafter exist, under the laws of this state. 91 Cal. 340; 121 Cal. 19; XXXVI Cal. Dec. 202, 2G3, 268, 270. Corporate property subject to eminent domain. Sec. 8. The exercise of the right of eminent domain shall never be so abridged or construed as to prevent the legislature from taking the property and franchises of incorporated com- panies and subjecting them to public use the same as the prop- erty of individuals ; and the exercise of the police power of the state shall never be so abridged or construed as to permit cor- porations to conduct their business in such manner as to infringe the rights of individuals or the general well-being of the state. Limitation on business of corporations. Sec. 9. No corporation shall engage in any business other than that expressly authorized in its charter or the law under which it may have been or may hereafter be organized ; nor shall it hold for a longer period than five years any real estate, except such as may be necessary for carrying on its business. 107 Cal. 643 ; 133 Cal. 612 ; 143 Cal. 206 ; 3 Cal. App. 710. Liabilities not released by transfer of franchise. Sec. 10. The legislature shall not pass any laws permit! in;;- the leasing or alienation of any franchise, so as to relieve the franchise or property held thereunder from the liabilities of the lessor or grantor, lessee or grantee, contracted or incurred in the operation, use, or enjoyment of such franchise, or any of its privileges. 72 Cal. 466; 116 Cal. 100; 152 Cal. 586; XXXVI Cal. Dec. 223. 14 STATE CONSTITUTION. ART. XII, § 11 Issuance of stock. Sec. 11. No corporation shall issue stock or bonds, except for money paid, labor done, or property actually received, and all fictitious increase of stock or indebtedness shall be void. The stock and bonded indebtedness of corporations shall not be increased, except in pursuance of general law, nor without the consent of the persons holding the larger amount in value of the stock, at a meeting called for that purpose, giving sixty days' public notice, as may be provided by law. 56 Cal. 051, 652. 654, 055; 59 Cal. 331 ; 61 Cal. 202; 64 Cal. 243, 253; 65 Cal. 617; 72 Cal. 56; 73 Cal. 77; 93 Cal. 307, 30S, 309, 315 ; 114 Cal. 331 ; 117 Cal. 344 ; 135 Cal. 250, 582, 585; 147 Cal. 582; 152 Cal. 457; 2 Cal. App. 130s XXXVI Cal. Dec. 134. Elections for directors. Sec. 12. In all elections for directors or managers of cor- porations every stockholder shall have the right to vote, in person or by proxy, the number of shares of stock owned by him, for as many persons as there are directors or managers to be elected, or to cumulate said shares and give one candidate as many votes as the number of directors multiplied by the number of his shares of stock shall equal, or to distribute them, on the same prin- ciple, among as many candidates as he shall think fit ; and such directors or managers shall not be elected in any other manner, except that members of cooperative societies formed for agricul- tural, mercantile, and manufacturing purposes may vote on all questions affecting such societies in manner prescribed by law. 67 Cal. 535; 73 Cal. 77 ; 109 Cal. 597. State credit not to be loaned. Sec. 13. The state shall not, in any manner, loan its credit, nor shall it subscribe to or be interested in the stock of any com- pany, association, or corporation. Corporations must maintain a place of business. Sec. 14. Every corporation other than religious, educational, or benevolent, organized or doing business in this state, shall have and maintain an office or place in this state for the transac- tion of its business, where transfers of stock shall be made, and Art. XII, § 14 state constitution. 15 in which shall be kept, for inspection by every person having an interest therein, and legislative committees, books in which shall be recorded the amount of capital stock subscribed, and by whom ; the names of the owners of its stock, and the amounts owned by them, respectively; the amount of stock paid in, and by whom ; the transfers of stock ; the amount of its assets and liabilities, and the names and places of residence of its officers. 135 Cal. 5S4. 025 ; 2 Cal. App. 039. Foreign corporations. Sec. 15. No corporation organized outside the limits of this state shall be allowed to transact business within this state on more favorable conditions than are prescribed by law to similar corporations organized under the laws of this state. 97 Cal. 28; 99 Cal. 133; 115 Cal. 311; 140 Cal. 651 : XXXVI Cal. Dec. 329. Corporations may be sued, where. Sec. 10. A corporation or association may be sued in the county where the contract is made or is to be performed, or where the obligation or liability arises or the breach occurs ; or in the county where the principal place of business of such cor- poration is situated, subject to the power of the court to change the place of trial, as in other cases. GO Cal. 209; 71 Cal. 4S8, 490; 73 Cal. 183, 184, 185; 83 Cal. 409, 473, 493; S8 Cal. 011; 94 Cal. 137; 97 Cal. 138, 043; 98 Cal. 107; 102 Cal. 48; 100 Cal. 58; 107 Cal. 380; 108 Cal. 202; 115 Cal. 200; 117 Cal. 52; 122 Cal. 049 ; 134 < !al. 587, 588, 5S9, 590 ; 130 Cal. 439 ; 141 Cal. 315; 144 Cal. 205, 207; 150 Cal. 408, 474, 475; 151 Cal. 159; 4 Cal. App. 370; Cal. App. 87; VIII Cal. App. Dec. 272. Common carriers. Sec. 17. All railroad, canal, and other transportation com- panies are declared to be common carriers, and subject to legis- lative control. Any association or corporation, organized for the purpose under the laws of this state, shall have the right to con- nect at the state line with railroads of other states. Every rail- road company shall have the right with its road to intersect, connect with, or cross any other railroad, and shall receive and 16 STATE CONSTITUTION. ART. XII, § 17 transport each the other's passengers, tonnage, and cars, without delay or discrimination. 132 Cal. 685 ; 2 Cal. App. 560 ; 3 Cal. App. 683. Limit on interest of an officer or agent. Sec. IS. No president, director, officer, agent, or employee of any railroad or canal company shall be interested, directly or indirectly, in the furnishing of material or supplies to such com- pany, nor in the business of transportation as a common carrier of freight or passengers over the works owned, leased, controlled, or worked by such company, except such interest in the business of transportation as lawfully flows from the ownership of stock therein. 132 Cal. 086. Public officers not to receive passes. Sec. 19. No railroad or other transportation company shall grant free passes, or passes or tickets at a discount, to any per- son holding any office of honor, trust, or profit in this state ; and the acceptance of any such pass or ticket by a member of the legislature, or any public officer, other than railroad commis- sioner, shall work a forfeiture of his office. 61 Cal. 201, 202; 114 Cal. 476; 132 Cal. 686; 145 Cal. 639. Earnings not to be shared — Rates not to be increased. Sec. 20. No railroad company or other common carrier shall combine or make any contract with the owners of any vessel that leaves port or makes port in this state, or with any common car- rier, by which combination or contract the earnings of one doing the carrying are to be shared by the other not doing the carry- ing. And whenever a railroad corporation shall, for the purpose of competing with any other common carrier, lower its rates for transportation of passengers or freight from one point to another, such reduced rates shall not be again raised or increased from such standard without the consent of the governmental authority in which shall be vested the power to regulate fares and freights. 132 Cal. 6S4, 6S6 ; 133 Cal. 26, 28 ; 144 Cal. 184, 193. AllT. XII, § 21 STATE CONSTITUTION. 17 Discrimination forbidden. Sec. 21. No discrimination in charges or facilities for trans- portation shall be made by any railroad or other transportation company between places or persons, or in the facilities for the transportation of the same classes of freight or passengers within this state, or coming from or going to any other state. Persons and property transported over any railroad, or by any other transportation company or individual, shall' be delivered at any station, landing, or port, at charges not exceeding the charges for the transportation of persons and property of the same class, in the same direction, to any more distant station, port, or landing. Excursion and commutation tickets may be issued at special rates. 109 Cal. 322 ; 132 Cal. 684, 686 ; 144 Cal. 193. Railroad commissioners — Number, election, term, qualifications, powers and duties, how removed from office. Sec. 22. The state shall be divided into three districts as nearly equal in population as practicable, in each of which one railroad commissioner shall be elected by the qualified electors thereof at the regular gubernatorial elections, whose salary shall be fixed by law, and whose term of office shall be four years, commencing on the first Monday after the first day of January next succeeding their election. Said commissioners shall be qualified electors of this state and of the district from which they are elected, and shall not be interested in any railroad cor- poration, or other transportation company, as stockholder, cred- itor, agent, attorney, or employee ; and the act of a majority of said commissioners shall be deemed the act of said commission. Said commissioners shall have the power, and it shall be their duty, to establish rates of charges for the transportation of pas- sengers and freight by railroad or other transportation com- panies, and publish the same from time to time, with such changes as they may make ; to examine the books, records, and papers of all railroad and other transportation companies, and for this purpose they shall have power to issue subpoenas and all other necessary process ; to hear and determine complaints against railroad and other transportation companies, to send for persons and papers, to administer oaths, take testimony, and punish for contempt of their orders and processes, in the same manner and 18 STATE CONSTITUTION. ART. XII, § 22 to the same extent as courts of record, and enforce their decisions and correct abuses through the medium of the courts. Said com- missioners shall prescribe a uniform system of accounts to be kept by all such corporations and companies. Any railroad cor- poration or transportation company which shall fail or refuse to conform to such rates as shall be established by such commis- sioners, or shall charge rates in excess thereof, or shall fail to keep their accounts -in accordance with the system prescribed by the commission, shall be fined not exceeding twenty thousand dol- lars for each offense ; and every officer, agent, or employee of any such corporation or company, who shall demand or receive rates in excess thereof, or who shall in any manner violate the provi- sions of this section, shall be fined not exceeding five thousand dollars, or to be imprisoned in the county jail not exceeding one year. In all controversies, civil or criminal, the rates of fares and freights established by said commission shall be deemed con- clusively just and reasonable, and in any action against such cor- poration or company for damages sustained by charging excessive rates, the plaintiff, in addition to the actual damage, may, in the discretion of the judge or jury, recover exemplary damages. Said commission shall report to the governor, annually, their proceed- ings, and such other facts as may be deemed important. Nothing in this section shall prevent individuals from maintaining actions against any of such companies. The legislature may, in addi- tion to any penalties herein prescribed, enforce this article by forfeiture of charter or otherwise, and may confer such further powers on the commissioners as shall be necessary, to enable them to perform the duties enjoined on them in this and the fore- going section. The legislature shall have power, by a two thirds vote of all the membei^s elected to each house, to remove any one or more of said commissioners from office, for dereliction of duty, or corruption, or incompetency ; and whenever, from any cause, a vacancy in office shall occur in said commission, the governor shall fill the same by the appointment of a qualified person thereto, who shall hold office for the residue of the unexpired term, and until his successor shall have been elected and qualified. 56 Cal. 102; 79 Cal. 103 ; 105 Cal. 320, 544, 555; 132 Cal. 078, 084, 087, GS9, 090 ; 133 Cal. 20, 27, 28 ; 142 Cal. 225. Art. XII, § 23 state constitution. 19 Railroad districts. Sec. 23. Until the legislature shall district the state, the fol- lowing shall be the railroad districts : The first district shall be composed of the counties of Alpine, Amador, Butte, Calaveras, Colusa, Del Norte, El Dorado, Humboldt, Lake, Lassen, Mendo- cino, Modoc, Napa, Nevada, Placer, Plumas. Sacramento, Shasta, Sierra. Siskiyou, Solano, Sonoma. Sutter, Tehama. Trinity, Yolo. and Yuba, from which oue railroad commissioner shall be elected. The second district shall be composed of the counties of Marin. San Francisco, and Sau Mateo, from which one rail- road commissioner shall be elected. The third district shall be composed of the counties of Alameda. Contra Costa, Fresno. Inyo, Kern, Los Angeles, Mariposa, Merced, Mono, Monterey, San Benito, San Bernardino, San Diego, San Joaquin, San Luis Obispo, Santa Barbara, Santa Clara, Santa Cruz, Stanislaus, Tulare, Tuolumne, and Ventura, from which one railroad com- missioner shall be elected. 132 Cal. GT9 ; 142 Cal. 225. Legislature to enforce this article. Sec. 24. The legislature shall pass all laws necessary for thp enforcement of the provisions of this article. Article XIII. REVENUE AND TAXATION. Sec. 1. Property to be taxed according to value — Exemptions. 1%. Churches exempt from taxation. 4. Taxation of mortgages and securities. 9. State and county boards of equalization. 10. Property, where and by whom assessed. 1 1. Income taxes. 13. Legislature to pass laws to enforce taxation. Property to be taxed according to value — Exemptions. Section 1. All property in the state not exempt under the laws of the United States shall be taxed in proportion to its value, to be ascertained as provided by law. The word "prop- erty," as used in this article and section, is^hereby declared to include moneys, credits, bonds, stocks, dues, franchises, and all other matters and things, real, personal, and mixed, capable of 20 STATE CONSTITUTION. ART. XIII, § 1 private ownership; provided that property used for free public libraries and free museums, growing crops, property used exclu- sively for public schools, and such as may belong to the United States, this state, or to any county or municipal corporation within this state, shall be exempt from taxation. The legisla- ture may provide, except in case of credits secured by mortgage or trust deed for a deduction from credits of debts due to bona fide residents of this state. [Amendment adopted November 6, ISO I] [Original section.'] Section 1. All property in the state not exempt under the laws of the United States, shall be taxed in proportion to its value, to be ascertained as provided by law. The word "property," as used in this article and section, is hereby declared to include moneys, credits, bonds, stocks, dues, franchises, and all other matters and things, real, personal, and mixed, capable of private ownership ; provided, that growing crops, property used exclusively for public schools, and such as may belong to the United States, this state, or to any county or municipal corporation within this state, shall be exempt from taxation. The legislature may provide, except in the case of credits secured by mortgage or trust deed, for a deduction from credits of debts due to bona fide residents of this state. 54 Cal. 353, 360, 361 ; 56 Cal. 202 ; 57 Cal. 594, 600, 603, 616 ; 58 Cal. 137, 138 ; 59 Cal. 336 : 62 Cal. 108, 112, 114 ; 04 Cal. 507 ; 65 Cal. 271, 457 ; 66 Cal. 603 ; 77 Cal. 13S ; 83 Cal. 406 ; 97 Cal. 220, 324 ; 103 Cal. 70 ; 10S Cal. 192, 193: 111 Cal. 86; 113 Cal. 397; 116 Cal. 23, 24; 117 Cal. 86; 119 Cal. 521, 522; 128 Cal. 592, 612; 131 Cal. 362, 613 ; 132 Cal. 26S, 600 ; 134 Cal. 478 ; 137 Cal. 518, 519, 524, 525 ; 139 Cal. 210 ; 142 Cal. 225, 284, 290 ; 148 Cal. 85; 149 Cal. 5S3 ; 152 Cal. 767; 153 Cal. 778; 2 Cal. App. 68, 595; XXXVII Cal. Dec. 159. Churches exempt from taxation. Sec. 1 x /-2. All buildings, and so much of the real property on which they are situated as may be required for the convenient use and occupation of said buildings, when the same are used solely and exclusively for religious worship, shall be free from luxation ; provided, that no building so used which may be rented for religious purposes and rent received by the owner therefor, shall be exempt from taxation. [New section; adopted Novem- ber 6, WOO.] Art. XIII, § 4 state constitution. 21 Taxation of mortgages and securities. Sec. 4. A mortgage, deed of trust, contract, or other obliga- tion by which a debt is secured, shall, for the purpose of assess- ment and taxation, be deemed and treated as an interest in the property affected thereby. Except as to railroad and other quasi-public corporations, in case of debt so secured, the value of the property affected by such mortgage, deed of trust, contract, or obligation, less the value of such security, shall be assessed and taxed to the owner of the property, and the value of such security shall be assessed and taxed to the owner thereof, in the county, city, or district in which the property affected thereby is situate. The taxes so levied shall be a lien upon the property and security, and may be paid by either party to such security ; if paid by the owner of the security, the tax so levied upon the property affected thereby shall become a part of the debt so secured ; if the owner of the property shall pay the tax so levied on such security, it shall constitute a payment thereon, and to the extent of such payment, a full discharge thereof; provided, that if any such security or indebtedness shall be paid by any such debtor or debtors after assessment and before the tax levy, the amount of such levy may likewise be retained by such debtor or debtors, and shall be computed according to the tax levy for the preceding year. 57 Oal. 600 ; 59 Cal. 543. 544 ; 60 Cal. 30. 37. 58, 371 ; 65 Cal. 383, 384 ; 66 Cal. 213 ; 72 Cal. 36 ; 76 Cal. 293 ; 77 ('al. 137, 13S; 83 Cal. 396; 84 Cal. 301; 89 Cal. 202: 91 Cal. 11; 96 Cal. 625, 627, 635, 637; 99 Cal. 609; 113 Cal. 397; 118 Cal. 492, 493; 121 Cal. 343; 123 Cal. 355; 128 Cal. 592, 593. 594, 595, 597, 598, 010, 011; 129 Cal. 29S ; 131 Cal. 301 ; 134 Cal. SO, S7 ; 144 Cal. 435, 430 ; 145 Cal. 55 ; 153 Cal. 015. State and county boards of equalization. Sec. 9. A state board of equalization, consisting of one mem- ber from each congressional district in this state, as the same existed in eighteen hundred and seventy-nine, shall be elected by the qualified electors of their respective districts, at the general election to be held in the year one thousand eight hun- dred and eighty-six, and at each gubernatorial election there- after, whose term of office shall be for four years ; whose duty it shall be to equalize the valuation of the taxable property in the 22 STATE CONSTITUTION. ART. XIII, § 9 several counties of the state foi' the purposes of taxation. The controller of state shall be ex officio a member of the board. The boards of supervisors of the several counties of the state shall constitute boards of equalization for their respective coun- ties, whose duty it shall be to equalize the valuation of the tax- able property in the county for the purpose of taxation ; provided, such state and county boards of equalization are hereby author- ized and empowered, under such rules of notice as the county boards may prescribe as to county assessments, and under such rules of notice as the state board may prescribe as to the action of the state board, to increase or lower the entire assessment roll, or any assessment contained therein, so as to equalize the assess- ment of the property contained in said assessment roll, and make the assessment conform to the true value in money of the prop- erty contained in said roll ; provided, that no board of equaliza- tion shall raise any mortgage, deed of trust, contract or other obligation by which a debt is secured, money, or solvent credits, above its face value. The present state board of equalization shall continue in office until their successors, as herein provided for, shall be elected and shall qualify. The legislature shall have power to redistrict the .state into four districts, as nearly equal in population as practical, and to provide for the elections of members of said board of equalization. [Amendment adopted November >,, 188',.] [( )riginal section.] Sec. 9. A state board of equalization. consisting of oup member from each congressional district in this state, shall be elected by the qualified electors of their respective districts at the general election to be held in the year eighteen hundred and seventy-nine, whose term of office, after those first elected, shall be four years, whose duty it shall be to equalize the valuation of the taxable property of the several counties in the state for the purposes of taxation. The controller of state shall be ex officio a member of the board. The boards of super- visors of the several counties of the state shall constitute boards of equalization for their respective counties, whose duty it shall be to equalize the -valuation of the taxable property in the county for the purpose of taxation; provided, such state and county- boards of equalization are hereby authorized and empowered, under such rules of notice as the county boards may prescribe as to the county assessments, and under such rules of notice as the state board may prescribe as to the action of the state board, to increase or lower the entire assessment roll, or any assessment contained therein, so as to equalize the assessment of the property contained in said assessment roll, and make the Art. XIII, § 9 state constitution. '23 assessment conform to the true value in money of the property contained in said roll. 56 Cal. 102, 195 ; 59 Cal. 324. 329, 334 : 00 Cal. 27, 30, 60; 01 Cal. 55, 102; 07 Cal. 024, 625; 68 Cal. 497; 0!) Cal. 474 ; 97 Cal. 324 ; 113 Cal. 401. Property, where and by whom assessed. Sec. 10. All property, except as hereinafter in this section provided, shall be assessed in the county, city, city and county, town, township, or district in which it is situated, in the manner prescribed by law. The franchise, roadway, roadbed, rails, and rolling stock of all railroads operated in more than one county in this state shall be assessed by the state board of equalization at their actual value, and the same shall be apportioned to the counties, cities and counties, cities, towns, townships, and dis- tricts in which such railroads are located, in proportion to the number of miles of railway laid in such counties, cities and coun- ties, cities, towns, townships, and districts. 56 Cal. 201, 207 ; 59 Cal. 325 ; 60 Cal. 12, 28, 29, 31, 32, 33, 58, 59, 00 ; 01 Cal. 255 ; 02 Cal. 505 ; 03 Cal. 407, 409, 008 ; 04 Cal. 483 ; 82 Cal. 400 ; S3 Cal. 390, 401 ; 105 Cal. 591 ; 125 Cal. 499 ; 128 Cal. 592. 593 ; 137 Cal. 515, 000 ; 142 Cal. 223, 234 ; 143 Cal. 432 ; 148 Cal. 317. 322, 323 ; 149 Cal. 84, 85, S9 ; 153 Cal. 54 ; 5 Cal. App. 048. Income taxes. Sec. 11. Income taxes may be assessed to and collected from persons, corporations, joint-stock associations, or companies resi- dent or doing business in this state, or any one or more of them, in such cases and amounts, and in such manner, as shall be pre- scribed by law. Legislature to pass laws to enforce taxation. Sec. 13. The legislature shall pass all laws necessary to carry out the provisions of this article. 56 Cal. 202 ; S3 Cal. 394, 401, 402, 405, 400 ; 137 Cal. 525. 24 STATE CONSTITUTION. ART. XIV, § I Article XIV. WATER AND WATER RIGHTS. Sec. 1. Subject to control of state. 2. Right to collect rates is a franchise. Subject to control of state. Section 1. The use of all water now appropriated, or that may hereafter be appropriated, for sale, rental, or distribution, is hereby declared to be a public use, and subject to the regula- tion and control of the state, in the manner to be prescribed by law; prodded, that the rates or compensation to be collected by any person, company, or corporation in this state for the use of water supplied to any city and county, or city, or town, or the inhabitants thereof, shall be fixed, annually, by the board of supervisors, or city and county, or city, or town council, or other governing body of such city and county, or city, or town, by ordinance or otherwise, in the manner that other ordinances or legislative acts or resolutions are passed by such body, and shall continue in force for one year and no longer. Such ordi- nances or resolutions shall be passed in the month of February of each year, and take effect on the first day of July thereafter. Any board or body failing to pass the necessary ordinances or resolutions fixing water rates, where necessary, within such time, shall be subject to peremptory process to compel action, at the suit of any party interested, and shall be liable to such further processes and penalties as the legislature may prescribe. Any person, company, or corporation collecting water rates in any city and county, or city, or town in this state, otherwise than as so established, shall forfeit the franchises and waterworks of such person, company, or corporation to the city and county, or city, or town, where the same are collected, for the public use. 53 Cal. 611; 56 Cal. 237, 596: 60 Cal. 160, 170, 175, 176, 177 ; 61 Cal. 4, 5, 9, 14, 25, 28, 30, 34, 37. 38, 41, 47, 50, 53 ; 62 Cal. 209, 232 ; 67 Cal. 121 ; 69 Cal. 309 ; 74 Cal. 573 ; 76 Cal. 370 ; 82 Cal. 302, 303, 331, 337 ; 90 Cal. 640 ; 98 Cal. 183; 100 Cal. 125, 130, 133, 138; 105 Cal. 91; 107 Cal. 22.-.: 108 Cal. 90, 560; 112 Cal. 433; 118 Cal. 479, 563, 565, .",79; 122 Cal. 286, 2SS ; 129 Cal. 441, 442, 443, 444, 445, 449, 450, 451 ; 130 Cal. 123, 313 ; 139 Cal. 28, 434, 441, 442 ; 142 Cal. 2S7 ; 143 Cal. 252 ; 144 Cal. 593 ; 150 Cal. 89 ; 151 Cal. 57 ; 152 Cal. 58S, 729 ; 2 Cal. App. 187, 413, 417. Art. XIV, § 2 state constitution. 25 Right to collect rates is a franchise. Sec. 2. The right to collect rates or compensation for the use of waters supplied to any county, city and county, or town, or the inhabitants thereof, is a franchise, and can not be exercised except by authority of and in the manner prescribed by law. 56 Cal. 596; 60 Cal. 170; 61 Cal. 3, 35, 37, 38, 47. 50: 62 Cal. 108, 209, 233, 234; 82 Cal. 304; 118 Cal. 579; 129 Cal. 441. 442. 450; 2 Cal. App. 000. Article XV. HARBOR FRONTAGE. ETC. Sec. 1. Right of the state to frontage. 2. Access to navigable waters. 3. Tide lands. Right of the state to frontage. Section 1. The right of eminent domain is hereby declared to exist in the state to all frontages on the navigable waters of this state. 123 Cal. 320. 321 ; 148 Cal. 631. Access to navigable waters. Sec. 2. No individual, partnership, or corporation, claiming or possessing the frontage of tidal lands of a harbor, bay. inlet, estuary, or other navigable water in this state, shall be permitted to exclude the righl of way to such water whenever it is required for any public purpose, nor to destroy or obstruct the free naviga- tion lit' such water; and the legislature shall enact such laws as will ii\\" the most liberal construction to this provision, so that access to the navigable waters of this state shall be always attainable for the people thereof. 123 Cal. 321 ; 132 Cal. L06. Tide lands. Sec. 3. All tide lands within two miles of any incorporated city or town of this state, and fronting on the waters of any harbor, estuary, bay. or inlet, user] fur the purposes of naviga- tion, shall be withheld from granl or sale tn private persons, partnerships, or corporations. 123 Cal. 321 ; 152 Cal. 7.-.:.; 153 Cal. 46. 2— CL. 26 STATE CONSTITUTION. AKT. XVII, § 2 Article XVII. LAND AND HOMESTEAD EXEMPTION. Sec. 2. Large land holdings discouraged. Large land holdings discouraged. Sec. 2. The holding of large tracts of land, uncultivated and unimproved, by individuals or corporations, is against the public interest, and should be discouraged by all menus not inconsistent with the rights of private property. 88 Cal. 455; 96 Cal. 118: 111 Cal. 400; 1 Cal. App. 150; 3 Cal. App. i_>4.~.. Article XIX. CHINESE. Sec. 2. Corporations not to employ Chinese. Corporations not to employ Chinese. Sec. 2. No corporation now existing or hereafter formed under the laws of this state shall, after the adoption of this (•(in- stitution, employ, directly or indirectly, in any capacity, any Chinese or Mongolian. The legislature shall pass such laws as may be necessary to enforce this provision. Note. — Sec. 2. The provisions of this section held to be in conflict with the treaty with China and with the fourteenth amendment to the constitution of the United States. See Ex parte Kuback, 85 Cal. 274 ; In re Parrott, 5 Pac. Coast Law Journal, 161. See note to Pen. C, sees. 178, 17!t. post. § 7 CIVIL CODE. CIVIL CODE. PORTIONS RELATING TO PRIVATE CORPORATIONS. Ed. Note. — Certain sections of the codes amended, revised, added, or repealed by the legislature at the sessions of 1905 and 1907, as recommended by Hon. John F. Davis, commissioner for the revision and reform of the law, are followed by explanatory notes taken from the reports to the legislature by the assembly committee on revision and reform of laws, and revised by Mr. Davis during his tei*m ;is such commissioner. PRELIMINARY PROVISIONS. Sec. 7. Holidays. 14. Certain terms defined. Holidays. 8 7. Holidays, within the meaning of this code, are every Sunday, the first day of January, the twenty-second day of February, the thirtieth day of May. the fourth day of July, the ninth day of September, the first Monday in September, the twelfth day of October to be known as "Discovery Day." the twenty-fifth day of December, every day on which an election is held throughout the state, and every day appointed by the presi- dent of the United States or by the governor of this state for a public fast, thanksgiving or holiday. If the first day of January, the twenty-second day of February, the thirtieth day of May, the fourth day of July, the ninth day of September, the twelfth day of October or the twenty-fifth day of December fall upon a Sun- day, the Monday following is a holiday. Every Saturday from twelve o'clock noon until twelve o'clock midnight is a holiday as regards the transact ion of business in the public offices of this state, and also in political divisions thereof where laws, ordinances or charters provide that public offices may be closed on holidays; provided, this shall not be construed to prevent or 28 CIVIL CODE. § 7 invalidate the issuance, filing, service, execution or recording of any legal process or written instrument whatever on such Satur- day afternoons. Amended February 19, 1909; stats. 1909, p. 23; in effect in sixty days. Similar provisions: Tol. C. §10; Code Civ. Proc. § 10. Sec. also, "Holidays," statutes at large, Appendix. Certain terms defined. § 14. Words used iu this code in the present tense include the future as well as the present; words used in the masculine gender include the feminine aud neuter; the singular number includes the plural, and the plural the singular; the word person includes a corporation as well as a natural person, county includes city ami county; writing includes printing and typewriting; oath includes affirmation or declaration ; and every mode of oral state- ment, under oath or affirmation, is embraced by the term "tes- tify," and every written one in the term "depose;" signature or subscription includes mark, when the persou can not write, his name being written near it, by a person who writes his own name as a witness: provided, that when a signature is by mark it must in order that the same may be acknowledged or may serve as the signature to any sworn statement be witnessed by two persons who must subscribe their own mimes as witnesses i hereto. The following words have in tins code the signification attached to them in this section, unless otherwise apparent from the context : I. The word "property" includes property real and personal; "J. The words "real property" are coextensive with lands, tene- ments, and hereditaments; 'A. The words "personal property" include money, goods, chat- tels, things in action, and evidences of debt; 4. The word "month" means a calendar month, unless other- wise expressed ; 5. The word "will" includes codicil ; t>. The word "section" whenever hereinafter employed refers to a section of this code, unless some other code or statute is ex pressly mentioned. Amended March 25, 1903; slats. 1903, p. 407. Similar provisions: Pol. C. §17; ('ode Civ. Proc. §17; Pen. ( '. § 7. Part IV CIVIL CODE. 29 DIVISION FIRST. PART IV. CORPORATIONS. Title I- General provisions applicable to all corporations. SS 283-410. II. [nsurance corporations. §§ 414-453p. III. Railroad corporations. §S 454-494. IV. Street railroad corporations. §§ 497-511. V. Wagon road corporations. §§ 512-524. VI. Bridge, ferry, wharf, chute, and pier corporations. §§ 528-531. VII. Telegraph and telephone corporations. §§ 536-541. VIII. Water and canal corporations. §§ 548-552. IX. Homestead corporations. §§ 557-566. X. Savings and loan corporations. §§ 571-583&. XI. Mining corporations. §§586-590. XIa. Chambers of commerce, etc. §§ 591-592e. XII. Religious, social, and benevolent corporations. SS 593-605. XII«. Cruelty to children and animals. §§ 607-607f/. XIII. Cemetery corporations. §§ 60S-616. XIV. Agricultural fair corporations. SS 620-622. XV. Corporations to furnish light for public use. §§ 629-632. XVI. Building and loan associations. SS 633-648a. XVII. Colleges and seminaries of learning. SS 649-651. XVIII. Consolidation of colleges, etc. §§ 652-653. XIX. Co-operative business corporations. § 653a. XX. Co-operative business associations. §§ 653&-653Z. XXI. Non-profit co-operative agricultural, viticultural, and horticultural associations. §§ 653?»-653s. XXII. Non-profit co-operative corporations. §§ 653(-653sb. o<> civil code. Title I TITLE I. General Provisions Applicable to all Corporations. Chap. I. Formation of corporations. §§ 283-321b. II. Corporate stock. §§ 322-349. III. Corporate powers. §§ 354-393. IV. Extension and dissolution of corporations. §§ 399-403. [Old section 403 ; repealed.] V. General provisions affecting corporations. §§ 403-404. VI. Foreign corporations. §§ 405-410. CHAPTER I. FORMATION OF CORPORATIONS. Art. I. Corporations denned and how organized. §§ 283-300«. II. By-laws, directors, elections, and meetings. §§ 301-321&. Article I. Corporations Defined and How Organized. Sec. 283. Corporation defined. 284. What are public and private corporations. 285. Private corporations, how formed. 286. For what purpose private corporations are formed. 2 ST. How corporations may continue their existence under this code. 2 88. Existing corporations not affected. 289. Name of instrument creating corporation. 2!t0. Articles of incorporation, what to contain. 290a. Certain corporations to file affidavit, showing what. 290%. Corporations not to use the word "trust" in corporate name unless authorized. 291. Certain corporations to state further facts in articles. 2:12. Articles, how subscribed and acknowledged. 293. Prerequisite to filing articles for certain corporations. Amounts to be subscribed to be fixed. 294. Prerequisite to filing articles of incorporation for rail- road, telegraph, and wagon road corporations. 295. Oath of officer to subscription of stock and payment of ten per cent in ease of such corporations. 296. To file articles with county clerk and secretary of state, and receive certificate. Term of existence. § 283 CIVIL CODE. 31 297. Certified copy of certificate to be prima facie evidence. 297a. Restoration of lost original articles of incorporation. 298. Who are members and who stockholders of a corpoi'a- tion. 290. Corporation to file articles in county where it holds property. 300. Banking corporations may elect to have capital stock. 300«. Change of name; filing copy of decree. Corporations defined. § 283. A corporation is a creature of the law, having certain powers and duties of a natural person. Being created by the law, it may continue for any length of time which the law pre- scribes. Enacted March 21. 1872. 51 Cal. 410; 117 Cal. 177. Powers of corporations: Civ. C. §354 et seq. Term of corporate existence: Civ. C. §§ 290. 401 ; Constitution of California, art. XII, §§ 1 and 7. Homestead corporations limited to ten years : Civ. C. § 557. What are public and private corporations. § 234. Corporations are either public or private. Public cor- porations are formed or organized for the government of a por- tion of the state ; all other corporations are private. Amended March 30. 1*74: amendts. 1S73-4. p. 197. 51 Cal. 409; 117 Cal. 121 ; 134 Cal. 47S ; 144 Cal. :;:',l ; 151 Cal. 805. Private corporations, how formed. S 285. Private corporations may be formed by the voluntary association of any three or more persons in the manner pre- scribed in this article. A majority of such persons must be resi- dents of this state. Amended March 20, 1905 ; stats. 1905, p. 502. 128 Cal. 2G0. Formed only under general laws: Constitution of California. art. XII, § 1. For what purpose private corporations are formed. S 286. Private corporations may lie formed tor any purpose for which individuals may lawfully associate themselves. Amended March 30. 1S74 : amendts. 1N7.->-4. p. 198. 52 Cal. 60; 53 Cal. L'7!> : L09 Cal. .",!>(); L13 Cal. 531; 144 Cal. 594 ; 152 Cal. 457, 463. 32 civil code. § 287 How corporations may continue their existence under this code. $ 287. Any corporation existing on the first day of .January. one thousand eight hundred and seventy-three, formed under the laws of this state, and still existing, which has not already elected to continue its existence, under the provisions of this code applicable thereto, may. at any time hereafter, make such election by the unanimous vote of all its directors, or such election may be made at any annual meeting of the stockholders or members, or at any meeting called by the directors expressly for considering the subject, if voted by stockholders representing a majority of the capital stock, or by a majority of the members. or may be made by the directors upon the written consent of thai number of such stockholders or members. A certificate of the action of the directors, signed by them and their secretary, when the election is made by their uuanimous vote, or upon the written consent of the stockholders or members, or a certificate of the proceedings of the meeting of the stockholders or members, when such election is made at any such meetiug, signed by the chairman and secretary of the meeting-, and a majority of the directors, must be filed in the office of the clerk of the county where the original articles of incorporation are filed, and a cer- tified copy thereof must be filed in the office of the secretary of stale: and thereafter the corporation shall continue its existence under the provisions of this code which are applicable thereto. and shall possess all the rights and powers, and be subject to all the obligations, restrictions, and limitations, prescribed thereby. Amended March 30, 1874, amendts. 1X7:1-4. p. 198. 57 Cal. 533; 105 Cal. 549, 552; 109 Cal. 579, 586; 111 •Cal. 65; 119 Cal. 342; 122 Cal. 336; XXXVI Cal. Dec. 270. Extension of corporate existence: Constitution of California, art. XII, § 7, and Civ. < '. § 401. Existing corporations not affected. § 288. No corporation formed or existing before twelve o'clock, noon, of the day upon which this code takes effect, is affected by the provisions of part four of division first of Ibis '•ode, unless such corporation elects to continue its existence under it as provided in section two hundred and eighty-seven; but the laws under which such corporations were formed and § 288 civil, CODE. 38 exist are applicable to all such corporations, and are repealed, subject to the provisions of this section. Enacted March 21, 1872. 52 Cal. 141: 60 Cal. 310; 105 Cal. 550; 109 Cal. 579; 1 1 1 Cal. C,~, ; 119 Cal. 341 ; 122 Cal. 337. Name of instrument creating corporations. §239. The instrument by which a private corporation is formed is called "Articles of Incorporation." Enacted March 21, 1872. 128 Cal. 200. Articles of incorporation, what to contain. §290. Articles of incorporation must he prepared, setting forth : 1. The name of the corporation. L'. I'h" purpose for which it is formed. .'!. The place where its principal business is to be transacted. 4. The term for which it is to exist, not exceeding- fifty years. 5. The number of its directors or trustees, which shall not be less than three, and the names and resiliences of those who are appointed for the first year; provided, that the corporate powers, husiness, and property of corporations formed, or to be formed, for the purpose of erecting and managing halls and buildings for i he meetings and accommodations of several lodges or societies of any benevolent or charitable order or organization, and in con- nection therewith the leasing of stores and offices in such build- ing or buildings for other purposes, may be conducted, exercised, and controlled by a board of not less than three or more than fifty directors, to be chosen from among the stockholders of such corporation, or among the members of such order or organiza- tion ; and provided, also, that at any time during the existence of corporations for profit, other than those of the character last hereinabove provided for. the numbers of the directors may, by a majority of the stockholders of (lie corporation, be increased, or diminished to any number not less than three, who must be members of the corporation ; whereupon a certificate stating the number of directors must be filed, as provided for in section two hundred and ninety-six for the filing of the original articles of incorporation; and provided, also, that the corporate powers, business, and property of corporations formed or to be formed 34 civil code. § 290 Lor social purposes, and not directly for profit, may be exercised, conducted, and controlled by a board, consisting of such number of directors as may be in the constitution or by-laws provided ; and corporations so formed may, in their constitution or by-laws, provide for the length of time that the directors, or any number thereof, shall act, and may, in like manner provide that certain directors, or a certain number of the board of directors, to be selected by the corporation or the board of directors, in the mode and manner provided in the constitution or by-laws, shall act for any specified length of time, or otherwise, as shall be in the constitution or by-laws set forth. 6. The amount of its capital stock, and the number of shares into which it is divided. Corporations formed for profit, pur- suant to the provisions of this code, may, by their articles of incorporation, provide for the classification of their capital stock into preferred and common stock. In the event that the articles of incorporation shall provide for such classification the same must contain a statement of the number of shares of stock to which preference is granted, and the number of shares of stock to which no preference is granted. The articles of incorporation shall also state, in clear and succinct manner, the nature and extent of the preference granted, and except as to the matters and things so stated, no distinction shall exist between said classes of stock or the owners thereof; provided, however, that no preference shall be granted nor shall any distinction be made between the classes of stock either as to voting power or as to I he statutory or constitutional liability of the holders thereof to I he creditors of the corporation. 7. If there is a capital stock, the amount actually subscribed, and by whom. Amended March 18, 1907; stats. 1907, p. 347. 53 Cal. 12S; 65 Cal. 601; 89 Cal. 54; 102 Cal. 64; 106 Cal. 309; 127 Cal. 207; 128 Cal. 260; 130 Cal. 39; 146 Cal. 222; 148 Cal. 314, 328; 2 Cai App. 542. 544. Note. — § 290. The change consists in the addition of all after the first sentence in subdivision 6, providing for the classification of the capital stock into preferred and common stock. Requisites, certain kinds of corporations, see §§ 291, 593, 594. and 049, Civ. C. § 290« civil code. 35 Certain corporations to file affidavit, showing what. S 290u. Before the secretary of state issues any certificate of incorporation or certificate of authority to transact business in this state, to any corporation, authorized in its articles of incor- poration to act as executor, administrator, guardian, assignee, receiver, depositary or trustee, there must be filed in his office the affidavit of the persons named in said articles as the first directors of the corporation, that at least two hundred thousand dollars of the capital stock, has actually been subscribed, and paid in to a person named in such affidavit, for the benefit of the corporation and before he issues any certificate of incorporation, or certificate of authority to transact business in this state, to any corporation, authorized in its articles of incorporation to engage in the business of banking, or of receiving the money of others on deposit, there must in like manner be filed the affidavil provided herein that at least twenty-five thousand dollars of the capital stock, has actually been subscribed, and paid in to a person named in such affidavit, for the benefit of the corporation. Amended March 13. 1000; stats. 1000. p. 300: in effect in sixty days. See note to sec. 200 y», post. Corporations not to use the word "trust" in corporate name unless authorized. S 290'/2. No corporation hereafter formed shall use the word "trust" or "trustee" as a part of its corporate name unless it shall be authorized by its articles of incorporation to act as executor, administrator, guardian, assignee, receiver, depositary or trustee, nor shall any corporation hereafter formed accept or execute any trust unless it shall have complied with all the pro- visions of "An act authorizing certain corporations to act as executor, and in other capacities, and to provide for and regulate the administration of trusts by such corporation." approved April 6th, 1X01. and the amendment thereto approved April 1st, 1S07. Enacted March IS. 1005; stats. 1905, p. 251. Note. — 5 290%. See Appendix for act of April 6, 1891, author- izing certain corporations to act as executors, etc., under heading "Executors." 36 CIVIL CODE. § 291 Certain corporations to state further facts in articles. § 291. The articles of incorporation of any railroad, wagon road, or telegraph organization must also state : 1. The kind of road or telegraph intended to he constructed; 2. The place from and to which it is intended to be run, and all the intermediate branches ; 3. The estimated length of the road or telegraph line ; 4. That at least ten per cent of the capital stock subscribed lias been paid in to the treasurer of the intended corporation. Enacted March 21, 1872. 142 Cal. 227; 2 Cal. App. 553, 555, 557. Prerequisites: §§293, 294. 295, Civ. C. Articles, how subscribed and acknowledged. § 292. The articles of incorporation must be subscribed by three or more persons, a majority of whom must be residents of this state, and acknowledged by each before some officer author- ized to take and certify acknowledgments or conveyances of real property. Amended March 20, 1905; slats. 1905, p. 503. 97 Cal. 278; 128 Cal. 260; 130 Cal. 39. Prerequisite to filing articles for certain corporations — Amounts to be subscribed to be fixed. § 293. Each intended corporation named in section two hun- dred and ninety-one, before filing articles of incorporation, must have actually subscribed to its capital stock, for each mile of the contemplated work, the following amounts, to wit: 1. One thousand dollars per mile of railroads; 2. One hundred dollars per mile of telegraph lines; 3. Three hundred dollars per mile of wagon roads. Enacted March 21, 1872. 53 Cal. 128 ; 2 Cal. App. 550. Prerequisite to filing articles of incorporation for railroad, tele- graph, and wagon road corporations. § 294. Before the articles of incorporation of any corpora- tion referred to in the preceding section are filed, there must be paid, for the benefit of the corporation, to a treasurer elected by the subscribers, ten per cent of the amount subscribed. Enacted March 21, 1872. 2 Cal. App.. 550. § 295 civil code. 37 Oath of officer to subscription of stock and payment of ten per cent in case of such corporations. § 295. Before the secretary of state issues to auy such cor- poration a certificate of the filing of articles of incorporation, there must be filed in his office an affidavit of the president, sec- retary, or treasurer named in the articles, that the required amount of the capital stock thereof has been actually subscribed, and ten per cent thereof actually paid to a treasurer for the benefit of the corporation. Enacted March 21, 1872. 2 Cal. App. 550. Signing fictitious name : Pen. C. § 557. To file articles with county clerk and secretary of state, and receive certificate — Term of existence. § 296. Upon filing the articles of incorporation in the office of the county clerk of the county in which the principal business of the company is to be transacted, and a copy thereof certified by the county clerk with the secretary of state, and the affidavit mentioned in the last section where such affidavit is required, the secretary of state must issue to the corporation, over the great seal of the state, a certificate that a copy of the articles con- taining the required .statement of facts has been tiled in his office, and thereupon the persons signing the articles and their asso- ciates and successors shall be a body politic and corporate by the name stated in the certificate, and for the term of fifty years, unless it is, in the articles of incorporation, otherwise stated, or in this code otherwise specially provided; provided, however, that the secretary of state shall not file any copy of the copy of any articles, or issue any certificate of incorporation to any corpora- tion, which articles set forth the corporate name of any corpora- tion heretofore organized in this state, or file any copy of any articles, or issue any certificate of incorporation to any corpora- lion existing at the time of filing said articles, which articles set forth a name so closely resembling the name of such corporation as will tend to deceive. Amended March 23. 1901 ; stats. 1901, p. 029. 72 Cal. 382; 93 Cal. 30; 102 Cal. 02; 111 Cal. 135; 128 Cal. 262 ; 130 Cal. 38 : 142 Cal. 281 ; 14l' the copy of its articles of incorporation tiled in the office of the secretary of state, duly certified by such secretary of state, in the office of the county clerk of the county in which such property is situated within sixty days after such purchase or location is made. Every corporation now in exist- ence, whether formed under the provisions of this code or not. must, within ninety days after the passage of this section, file such certified copy of the copy of its articles of incorporation in the office of the county clerk of every county in this State in which it holds any property, except the county where the original articles of incorporation are filed ; and if any corporation hereafter acquires any property in a county other than that in which it now holds property, it must, within ninety days thereafter, file with the clerk of such county such certified copy of the copy of its articles of incorporation. The copies filed with the several county clerks, and certified copies thereof, have the same force and effect in evidence as the originals. Any corporation failing to comply with the provisions of this section can not maintain or defend any action or proceeding in relation to such property, its rents, issues, or profits, until such articles of incorporation, and such certified copy of its articles of incorporation, and such certified copy of the copy of its articles of incorporation, are filed at the places directed by the general law and this section; pro- vided, that all corporations are liable in damages for any and all loss that may arise by the failure of such corporation to per- form any of the foregoing duties within the time mentioned in this section: and provided further, that the said damages may be recovered in an action brought in any court of this state of competent jurisdiction, by any party or parties suffering the same. Amended March 21, 1905 : stats. 1905, p. 556. 67 Cal. 487; 73 Cal. 601 : 77 Cal. 72; SO Cal. 69, 335; 83 Cal. 17; 97 Cal. 274; 108 Cal. 90; 111 Cal. 135; 120 Cal. 178 ; 146 Cal. 649. 651, 652 ; 147 Cal. 753 ; 148 Cal. 253; XXXVI Cal. Dec. 330; 2 Cal. App. 556; 6 Cal. App. 548. Note. — § 299. The change consists in the insertion of the words "other than the county in which its original articles of incorporation are filed" after "state" in line 2. Right to purchase estate: Civ. C. §354. 40 CIVIL CODE. § 300 Banking corporations may elect to have capital stock. S 300. Every corporation thai lias been or may be created under the general laws of this state, doing a banking business therein, and which has no capital stock, may elect to have a capital stock, and may issue certificates of stock therefor, in the same manner as corporations formed under the provisions oi chapter one, article one, of the Civil Code, relating to the forma- tion of corporations; prodded, thai no such corporation shall use or convert any moneys or funds theretofore belonging to it, or under its control, into capital stock; but such funds or moneys must be held and managed only for the purposes and in the manner for which they were created. Before such change is made, a majority of the members of such corporation present at a meeting called for the purpose of considering the proposition whether it is best to have a capital stock, its amount, and the number of shares into which it shall be divided, must vote in favor of having a capital stock, fix the amount thereof, and the number of shares into which it shall be divided. Notice of the time and place of holding such meeting, and its'object. must, be given by the president of such corporation, by publication in some newspaper printed and published in the county, or city and county, in which the principal place of business of the corpora- tion is situated, at least once a week for three successive weeks prior to the holding of the meeting. A copy of the proceedings of this meeting, giving the number of persons present, the votes taken, the notice calling the meeting, the proof of its publication, the amount of capital actually subscribed, and by whom, all duly certified by the president and secretary of the corporation, must be filed in the offices of the secretary of state and clerk of the county where the articles of incorporation are filed. Thereafter such corporation is possessed of all the rights and powers, and is subject to all the obligations, restrictions, and limitations, as if it had been originally created with a capital stock ; and provided further, that no bank in this state shall ever pay any dividend upon so-called guaranty notes, nor upon any stock, except upon the amount actually paid in money into said capital upon such stock, and any payment made in violation of this provision shall render all officers and directors consenting to the same jointly and severally liable to the depositors to the extent thereof. Enacted March 29, 1878 ; amendts. 1877-8, p. 77. 56 Cal. 349 ; 74 Cal. 600. See, also, "Banks and Banking," statutes at large, Appendix. § 300a civil code. 41 Change of name; filing copy of decree. § 300(7. Every corporation which has changed its name under the provisions of sections one thousand two hundred and seventy- five, one thousand two hundred and seventy-six, one thousand two hundred and seventy-seven, one thousand two hundred and seventy-eight, and one thousand two hundred and seventy-nine of the Code of Civil Procedure, must file in the office of secre- tary of state and in the office of the county clerk of each county in which the original articles or certified copies thereof are required by law to be filed, a certified copy of the decree of the court changing such name. Amended April 16, 1909; stats. 1909, p. 973; in effect in sixty i In. vs. Filing articles: Civ. C. §§ 296, 299. AUTICLE II. By-Laws, Directors, Elections, and Meetings. Sec. 301. By-laws, when, how, and by whom adopted. 302. Directors, election of, notice, etc. 303. By-laws may provide for what. 304. By-laws open for public inspection ; how amended. 305. Directors, how many and how elected; powers. 306. Directors must be elected and by-laws adopted at first meting. [Repealed.] ::n7. Elections, how conducted. ::>in. Organization of board of directors, etc. 309. Dividends to be made from surplus profits; increase and reduction of capital stock. 310. Directors, removal from office of, etc. 311. Justice of the peace may order meeting, when. 312. Elections, how stock must be represented. 313. Representation of minors, insane, or deceased persons. 314. Election may be postponed. 315. Elections, complaints may be referred to superior court ; relief. 316. False certificate, report, or notice to make officers !i;ible. 317. Meeting by consent to be valid. :: i k. Proceeding's at such meeting to be binding. 319. Meetings, where held. 320. Special meetings, how called. 42 civil code. 301 321. Banking corporations must keep certain books open for inspection. 32 In. Change of principal place of business, how effected. 321b. Stockholders' meetings, who may vote, and use of proxies. By-laws, when, how, and by whom adopted. § 301. Every corporation formed under this title must, within one month after tiling articles of incorporation, adopt a code of by-laws for its government not inconsistent with the constitution and laws of this state. The assent of stockholders representing a majority of all the subscribed capital stock, or of a majority of the members, if there lie no capital stock, is necessary to adopt by-laws, if they are adopted at a meeting called for that purpose; and in the event of such meeting being called, two weeks' notice of the same by advertisement in some newspaper published in the county in which the principal place of business of the corporation is located, or if none is published therein, then in a paper published in an adjoining county, must be given by order of the acting president. The written assent of the holders of two thirds of the stock, or of two thirds of the members if there be no capital stock, shall be effectual to adopt a code of by-laws without a meeting for that purpose. Amended March 30, 1S74 ; amendts. 1873-4, p. 200. 74 Cal. 574: 109 Cal. 588: 11G Cal. 414; 117 Cal. 1G2; 145 Cal. 702. Amendment and repeal of by-laws: Civ. C. § 304. s 302. The directors of a corporation must be elected anuu- Directors. election of, notice, etc. § ally-by the stockholders or members, and if no provision is made in the by-laws for the time of election, the election must be held on the first Tuesday in June. Notice of such election must be given as prescribed in section three hundred one, unless all of the stockholders waive such notice in writing. Amended February 22, 1909; stats. 1909, p. 48; in effect in sixty days. 93 Cal. 36; 146 Cal. 222. Elections: Civ. C. §312. Postponement of election : Civ. ' '. S 314.. § 303 civil code. 43 By-laws may provide for what. § 303. A corporation may, by its by-laws, where no other pro- vision is specially made, provide for: 1. The time, place, and manner of calling and conducting its meetings, and may dispense with notice of all regular meetings of stockholders or directors ; 2. The number of stockholders or members constituting a quorum ; 3. The mode of voting by proxy ; 4. The qualifications aud duties of directors, and also the time of their annual election, and the mode and manner of giving notice thereof ; 5. The compensation and duties of officers: »;. The manner of election and tenure of office of all officers other than the directors: and 7. Suitable penalties for violations of by-laws, not exceeding, in any case, one hundred dollars for any one offense. 8. The newspaper in which all notices of the meetings of stockholders or board of directors, notice of which is required, shall be published, which must be some newspaper published in the county where the principal place of business of the corpora- tion is located, or if none is published therein, then in a news- paper published in an adjoining county ; provided, that when the by-laws prescribe the newspaper in which said publication shall lie made, if from any cause, at the time any publication is desired io lie made, the publication of such newspaper shall have ceased, i he board of directors may, by an order entered on the records of the corporation, direct the publication to be made in some other newspaper published in the county, or if none is published I herein, then in an adjoining county. Amended March 19, 1880; stats. 1889, p. 305. 93 Cal. 38: 96 Cal. 82; 104 Cal. 653; 109 Cal. 599; 121 Cal. 208: 130 Cal. 347: 1 Cal. App. 195, 196. Provisions applicable: Civ. C. §§305, 308, 323. 344: other provisions, § 599. By-laws open for public inspection; how amended. S 304. All by-laws adopted must be certified by a majority of the directors and secretary of the corporation, and copied in a legible hand, in some book kept in the office of the corporation, to be known as the "book of by-laws," and the book must then 14 CIVIL CODE. § 304 he open to the inspection of the public during office hours each day except holidays. The by-laws may be repealed or amended, or new by-laws may be adopted, at the annual meeting, or at any other meeting of the stockholders or members, called for that purpose by the directors, by a vote representing two thirds of the subscribed stock, or by two thirds of the members. The written assent of the holders of two thirds of the stock, or two thirds of the members if there is no capital stock, is effectual to repeal or amend any by-law, or to adopt additional by-laws. The power to repeal and amend the by-laws, and adopt new by-laws, may, by a similar vote at any such meeting, or similar written assent, be delegated to the board of directors. The power, when delegated, may be revoked by a similar vote, at any regular meeting of the stockholders or members. Whenever any amendment or new by-law is adopted, it must be copied in the book of by-laws with the original by-laws, and immediately after them. If any by-law is repealed, the fact of repeal, with the date of the meeting at which the repeal was enacted, or written assent was filed, must be stated in said book. Until copied or stated as hereinbefore required, no by-law, nor any amendment or repeal thereof, can be enforced against any person, other than the corporation, not having actual notice thereof. Amended March 21. 1005: stats. 1905, p. 557. 89 Cal. 54. Note. — § 304. The provision of the section declaring that no by-law or any amendment thereof shall take effect until copied in the book of by-laws, is amended so as to permit by-laws and amendments thereof, which have been duly passed, to be treated as valid and enforcible against the corporation and persons hav- ing notice thereof, regardless of whether or not they have been copied into the proper book. It lias often happened that by-laws have been published and generally acted upon by the corporation, and by others, and therefore their effect has been sought to be avoided on account of the failure of the proper officer to perform his duty of copying them as the code directs. The change con- sists in the addition of the last sentence. Directors, how many and how elected; powers. § 305. The corporate powers, business, and property of all corporations formed under this title must be exercised, eon- ducted, and controlled by a board of not less than three directors, to be elected from among the holders of stock ; or where there § 305 civil code. 45 is no capital stock, then from the members of such corporations; except that corporations formed or to be formed for the purpose of erecting and managing halls and buildings for the meetings and accommodation of several lodges or societies of any benevo- lent or charitable order or organization, and in connection there- with, the leasing of stores and offices in such building or buildings for other purposes, the corporate powers, business, and property thereof may be conducted, exercised, and controlled by a board not less than three or more than fifty directors, to be chosen from among the stockholders of such corporation or from among the members of such order or organization. A majority of the directors must be in all cases residents of this state. Directors of corporations for profit must be holders of stock therein to an amount to be tixed by the by-laws of the corporation. Directors of all other corporations must be members thereof. Unless a quorum is present and acting no business performed or act done is valid as against the corporation. "Whenever a vacancy occurs iu the office of director, unless the by-laws of the corporation otherwise provide, such vacancy must be rilled by an appointee of the board. Amended March 20, 1905 ; stats. 1D05, p. 503. 78 Cal. 032; 81 Oal. 234; 93 Cal. 36; 94 Cal. 549; 111 Gal. 110; 318 Cal. 138; 121 Cal. 208; 120 Cal. 417; 127 Cal. 207, 037; 130 Cal. 349, 351; 132 Cal. G52; 146 Cal. 222; 5 Cal. App. 108; 7 Cal. App. 071. Organization of board: Civ. C. §308. Directors must be elected and by-laws adopted at first meeting. [Repealed.] § 306. Directors must be elected and by-laws adopted at first meeting. [Repealed March 19, 18S9 ; stats. 1889, p. 305.] Elections, how conducted. § 307. All elections must be by ballot, and every stockholder shall have the right to vote iu person or by proxy the number of shares standing in his name, as provided in section three hundred and twelve of this code, for as many persons as there are directors to be elected, or to cumulate said shares and give one candidate as many votes as the number of directors multi- plied by the number of his shares of stock shall equal, or to distribute them on the same principle among as many candidates as he shall think fit. The provisions of this section, so far as 16 civil com:. § 307 ii relates to cumulative voting, shall apply to all corporations ami associations doing business in (liis state, having a capital stock or shares of slock, and electing directors by a meeting of stockholders held in (Ins stole, whether such corporations or associations arc organized under the laws of this state or not: and no election for directors of any corporation or association, doing business in this state, and electing directors in this state, shall be valid, if the right of a stockholder to cumulate his shares as herein provided shall be denied. In corporations having no capital stock, each member of the corporation may cast as many votes for one director as there are directors to be elected, or may distribute the same among any or all the candidates. In any case the director receiving the highest number of votes shall be declared elected. The provisions of this section, so far as it relates to cumulative voting, shall not apply to literary, religions, scientific, social or benevolent societies, having no capital stock or shares, unless it shall be so provided in their by-laws or rules. Amended March 20, 1903 ; stats. 1903, p. 2.").'!. 93 Cal. 36; 103 Cal. 363; 109 Cal. 589; 115 Cal. 590; 127 Cal. 683. Conduct of elections: Civ. ('. §§312, 315; Constitution of California, art. XII, § 12. Organization of board of directors, etc. $ 308. Immediately after their election, the directors must organize by the election of a president, who must be one of their number, a secretary, and treasurer. They must perform the duties enjoined on them by law and the by-laws of the corpora- tion. A majority of the directors is a sufficient number to form a board for the transaction of business, and every decision of a majority of the directors forming such board made when duly assembled, is valid as a corporate act. Enacted March 21, 1872. 78 Cal. 292, 632; 93 Cal. 3S : 94 Cal. 549: 96 Cal. 82; 103 Cal. 363; 121 Cal. 208; 127 Cal. 267. (537; 130 Cal. 34S ; 145 Cal. 364 ; 1 Cal. App. 670. Quorum necessary : § 305 Civ. C. Dividends to be made from surplus profits; increase and reduc- tion of capital stock. S 309. The directors of corporations must nut make dividends. except from the surplus profits arising from the business thereof; § 309 civil code. 47 nor must they create any debts beyond their subscribed capital stock ; nor must they divide, withdraw, or pay to the stock- holders, or any of them, any part of the capital stock, except as hereinafter provided, nor reduce or increase the capital stock, except as herein specially provided. For a violation of the pro- visions of l lu's section, the directors under whose administration the same may have happened (except those who may have caused their dissent therefrom to be entered at large on the minutes of the directors at the time, or were not present when the same did happen) are, in their individual or private capacity, jointly and severally liable to the corporation, and to the creditors thereof, to the full amount of the capital stock so divided, withdrawn, paid out. or reduced, or debt contracted; and no statute of limitation is a bar to any suit against such directors for any sums for which they are liable by this section; provided, how- ever, that where a corporation has been heretofore or may here- after be formed for the purpose, among other things, of acquiring, holding, and selling real estate, water, and water rights, the directors of such corporation may, with the consent of stock- holders representing two thirds of the capital stock thereof, given at a meeting called for that purpose, divide among the stockholders- the land, water, or water rights so by such corpora- tion held, in the proportions to which their holdings of such slock at the time of such division entitle them. All conveyances made by the corporation in pursuance of this section must he made and received subject to tlie debts of such corporation exist- ing :it i lie date of the conveyance thereof. Nothing herein pro- hibits a division and distribution of the capital stock of any cor- poration which remains after the payment of all its debts, upon its dissolution, or the expiration of its term of existence. Amended March 21, 1905; stats. 1905, p. 55S. 57 Cal. 002 ; 81 Cal. 384 ; 90 Cal. 135 ; 93 Cal. 309 ; 109 Cal. 596; 110 Cal. 415; 124 Cal. 149; 125 Cal. 412; 127 Cal. 674; 135 Cal. 482; 151 Cal. 122; 152 Cal. 462; 153 Cal. 667; XXXVI Cal. Dec. 77: 7 Cal. App. 508. Note. — § 309. The change consists in the omission of the words "nor must they divide, withdraw, or pay to the stock- holders, or any of them, any part of the capital stock," where those words first occurred, and in the omission of the words "in the event of its dissolution," after "thereof." The reason for the omission of the words first above alluded to is that by some 48 civil code. § 309 clerical error they occurred twice in the section. The words "in the event of its dissolution" are omitted because their presence made it impossible to enforce the liability against the directors unless the corporation is first dissolved, which could not have been the intention of the legislature. For increase or reduction of capital stock : Civ. C. § 359. Penalties : Pen. C. §§ 560, 563; 564, 569, 570. Dissolution, etc. : § 1227 et seq., Code Civ. Proc. Directors, removal from office of, etc. §310. The board of directors may be removed from office by a vote of two thirds of the members, or of stockholders hold- in- two thirds of the capital stock, at a general meeting held after previous notice of the time and place, and of the intention to propose such removal. Meetings of stockholders for this purpose may be called by the president, or by a majority of the directors, or by members or stockholders holding at least one half of the votes. Such calls must be in writing, and addressed to the secretary, who must thereupon give notice of the time, place, and object of the meeting, and by whose order it is called. If the secretary refuses to give the notice, or if there is none, the call may be addressed directly to the members or stockholders, and be served as a notice, in which case it must specify the time and place of meeting. The notice must be given in the manner provided in section three hundred and one of this title, unless other express provision has been made therefor in the by-laws. In case the board of directors is so removed, a new board may lie elected at (he same meeting. Amended March 21, l!>Of> ; stats. 11105. p. 558. 97 Cal. 630; VII Cal. App. Dec. 2r>4. Note. — § 310. The amendment, while it authorizes the removal of the whole board of directors by a two-thirds vote of the mem- bers or stockholders, denies the power to remove less than the whole number by such vote. The reason for this is that by the system of cumulative voting sanctioned by section 307, a minority may obtain representation in the board of directors ; if so, a director elected to represent a minority of one third ought not to be removed by the subsequent vote of the other two iliirds, and the system of cumulative voting and minority repre- sentation thus made ineffective. The first sentence only is cha nged. § 311 civrL code. 49 Justice of the peace may order meeting, when. §311. Whenever, from any cause, there is no person author- ized to call or to preside at a meeting of a corporation, any justice of the peace of the county where such corporation is established may, on written application- of three or more of the stockholders or of the members thereof, issue a warrant to one of the stockholders or members, directing him to call a meeting of the corporation, by giving the notice required, and the justice may, in the same warrant, direct such person to preside at such meeting until a clerk is chosen and qualified, if there is no other officer present legally authorized to preside thereat. The applica- tion of a number of stockholders less than three, but holding a majority of the capital stock, has the same effect as an applica- tion by three or more stockholders or members. Amended March 21, 1905 ; stats. 1905, p. 559. Note. — § 311. By the amendment the holders of a majority of the stock, though their number is less than three, are authorized to apply to the justice to issue a warrant for an election. The change consists in the addition of the last sentence. Elections, how stock must be represented. § 312. At all elections or votes had for any purpose in cor- porations formed for profit there must be a majority of the subscribed capital stock or of the members represented, either in person or by proxy in writing ; provided, that in all instances of corporations formed for purposes other than profit the by-laws shall provide the number of members or stockholders that shall constitute a quorum for the transaction of business. Every person acting therein, in person or by proxy or representative, must be a member thereof or a stockholder, having stock in his own name on the stock books of the corporation at least ten days prior to the election. Any vote or election had other than in accordance with the provisions of this article is voidable at the instance of absent or any stockholders or members, and may bo set aside by petition to the superior court of the county where the same is held. Any regular or called meeting of the stock- holders or members may adjourn from day to day, or from time to time, if for any reason there is not present a majority of the subscribed stock or members, or no election had. such adjourn- 3— CL. 51 » CIVIL CODE. § 312 ment and the reasons therefor being recorded in the journal of proceedings of the board of directors. Amended March 18, 1007; stats. 1007. p. 596. 07 Cal. 533; 93 Cal. 36; 103 Cal. 363; 104 Cal. 651; 109 Cal. 588; 112 Cal. 03; 115 Cal. 589; 127 Cal. 083; 133 Cal. 47 : 140 Cal. 224 : 7 Cal. App. 671. Ed. Note. — Section 312 was amended March 21, 1905, and March 22, 1905, but the former amendment was repealed (stats. 1907, p. 596) and the section again amended. Note. — § 312. The change in the amendment of this section, as approved March 21, 1905, consisted in the substitution of the words "superior court" in place of "district court," and in the omission of the words "bona fide" before "stockholder." For the purpose of election, a person appearing upon the books of the corporation to be a stockholder should be permitted to vote, and election officers should not be vested with authority to deny such a stockholder the right to vote, or to claim that for some reason he is not a bona fide stockholder. (See Smith vs. S. F. & N. P. Ry. Co., 115 Cal. 584.) On March 22, 1905, another act (not suggested by the commissioner) was approved, superseding the act approved upon the day before. This act omitted some of the changes of the act of March 21, but made other changes. In the session of 1907, the section as approved March 21, 1905, was repealed, but the changes contained in it were incorporated into the amendment of the section, as approved March 22, 1905. Notice of election: Civ. < '. §302. Postponement: Civ. C. §314. Rights of stockholders to vote: Civ. C. §307. Representation of minors, insane, or deceased persons. § 313. The shares of stock of an estate of a minor, or insane person, may be represented by his guardian, and of a deceased person by his executor or administrator. Amended March 30, 1874 : amendts. 1*73-4. p 211::. OHi Cal. 590; 115 Cal. 590. Election may be postponed. § 314. If from any cause an election does not take place on t lie day appointed by law or the by-laws, or otherwise, it may hi' held on any day thereafter as is provided for in such bydaws, or to which siicli election may he adjourned or ordered by the directors. If an election has not been held at the appointed § 814 CIVIL CODE. - r >l time, and no adjourned or other meeting for the purpose 1ms been ordered by the directors, a meeting may be called by the stock- holders as provided in section three hundred and ten. Amended March 21. 1905; stats. 1905, p. 559. N 0TE . — § 314. The design of the amendment is to extend the provisions of the section to all elections howsoever authorized, and for this purpose the words "by law" are inserted after "appointed," "in" is omitted after "appointed," and "or other- wise" are inserted after "by-laws." Elections, complaints may be referred to superior court; relief. § 315. Upon the application of any person or body corporate aggrieved by any election held by any corporate body, the superior court of the county in which such election is held must proceed forthwith to hear the allegations and proofs of the parties, or otherwise inquire into the matters of complaint, and thereupon confirm the election, order a new one, or direct such other relief in the premises as accords with right and justice. Upon filing the petition, and before any further proceedings are had under this section, five days' notice of the hearing must be given, under the direction of the court or the judge thereof, to the adverse party, or those to be affected thereby. Amended March 21, 1905; stats. 1905, p. 560. 93Cal. 35; 98 Cal. 305; 103 Cal. 364; 115 Cal. 281, 5S7; 120 Cal. 72. Note. — § 315. The change consists in the substitution of the words "superior court of the county" for "district court of the district." False certificate, report, or notice to make officers liable. § 316. Any officer of a corporation who willfully gives a cer- tificate, or willfully makes an official report, public notice, or entry in any of the records or books of the corporation, concern- ing the corporation or its business, which is false in any material representation, shall be liable for all the damages resulting therefrom to any person injured thereby; and if two or more officers unite or participate in the commission of any of the ncls herein designated, they shall be jointly and severally liable. Amended March 30, 1*74; amendts. 1873-4, p. 20?,. Liability of officer: Pen. O. §§558, 564; Civ. O. §309; see, also. "Fraudulent Reports," statutes at large, Appendix. VIII Cal. App. Dec. 522. 52 CIVIL CODE. § 317 Meeting by consent to be valid. § 317. When all the stockholders or members of a corporation are present at any meeting however called or notified, and sign a written consent thereto on the records of such meetings, or if those not present sign in writing a waiver of notice of such meeting, which waiver is presented and made a part of the records of such meeting, the doings of such meeting are as valid as if had at a meeting legally called and noticed. Amended February 22, 1909; stats. 1909, p. 49; in effect in sixty days. Proceedings at such meeting to be binding. §318. The stockholders or members of such corporation, when so assembled, may elect officers to fill all vacancies then existing, and may act upon such other business as might lawfully be transacted at regular meetings of the corporation. Enacted March 21, 1872. Meetings, where held. § 319. The meetings of the stockholders and board of directors of a corporation must be held at its office or principal place of business. Enacted March 21, 1872. Change of place of business : Civ. C. § 321a. Special meetings, how called. S 320. When no provision is made in the by-laws for regular meetings of the directors and the mode of calling special meet- ings, all meetings must be called by special notice in writing, to be given to each director by the secretary, on the order of the president, or if there be none, on the order of two directors. Enacted March 21, 1872. 59 Cal. 681 ; 76 Cal. 154 ; 96 Cal. 79 ; 109 Cal. 9 ; 130 Cal. 347 ; 134 Cal. 177 ; 146 Cal. 705. Banking corporations must keep certain books open for in- spection. § 321. Every corporation doing a banking business in this state must keep in its office, in a place accessible to the stock- holders, depositors, and creditors thereof, and for their use, a book containing a list of all stockholders in such corporation, and the number of shares of stock held by each ; and every such corporation must keep posted in its office, in a conspicuous place, § 321 CIVIL CODE. 53 accessible to the public generally, a notice, signed by.the presi- dent or secretary, showing: First — The names of the directors of such corporation; Second — The number and value of shares of slock hold by each director. The entries on such book and such notice shall be made and posted within twenty-four hours after any transfer of stock, and shall be conclusive evidence against each director and stock- holder of the number of shares of stock held by each. The pro- visions of this section shall apply to all banking corporations formed or existing before twelve o'clock noon of the day on which this code took effect, as well as to those formed after such time. Enacted January 29, 1876; amendts. 1875-6, p. 72. 89 Cal. 54; 140 Cal. 105. Records of corporations, general : §§ 377, 37S, Civ. C. Change of principal place of business, how effected. § 32b/. Every corporation that has been or may be created under the general laws of this state may change its principal place of business from one place to another in the same county. or from one city or county to another city or county within this state. Before such change is made, the consent, in writing, of the holders of two thirds of the capital stock of the corporation must be obtained and filed in its office. When such consent is obtained and filed, notice of the intended removal or change must be published, at least once a week, for three successive weeks, in some newspaper published in the county, wherein said principal place of business is situated, if there is one published therein ; if not, in a newspaper of an adjoining county, giving the name of the county or city where it is situated and that to which it is intended to remove it. Whenever any such change is made, a copy of the resolution or action of the board of directors authorizing the same, together with a copy of an affidavit of the publication above required, all duly certified by the president and secretary of the corporation with the corporate seal affixed, shall be filed in each office where the original articles of incor- poration are, or any copy thereof is required to be filed. This section shall not be construed to require such consent, notice or publication in the case of any such removal from one location to another in the same city, town or village. Amended March 20, 1903 ; stats. 1903, p. 254. 54 CIVIL CODE. § ?,21b Stockholders' meetings, who may vote, and use of proxies. § 321/*. Al all meetings of stockholders of corporations organ- ized under the laws of this state, or in the case of corporations having no capital stock, then at all meetings of the members of such corporation, only the stockholders or members actually present shall be entitled to vote on any proposition, including the election of directors and other officers of the corporation, unless proxies from absent or non-attending stockholders or members shall lie held by some person or persons present at such meeting and shall he executed in accordance with the provisions of this section. Every such proxy must he executed in writing by the member 0" stockholder himself, or by his duly authorized attorney. No proxy heretofore given or made shall he valid after the expiration of eleven months from the passage of this act. unless the member or stockholder executing it shall have specified therein the length of time for which such proxy is to continue in force, which must he for some limited period, and in no case to exceed seven years from the date of the execution of such proxy. Xo proxy hereafter to he given or made shall he valid after the expiration of eleven months from the date of its execution, unless the member or stockholder executing it shall have specified therein the length of time for which such proxy is to continue in force, which must lie for some limited period, and in no case to exceed seven years from the date of the execu- tion of .such proxy. Every proxy shall bo revocable at the pleasure of the person executing it ; but a corporation having no capital stock may prescribe in its by-laws the persons who may act as proxies for members, and the length of time for which such proxies may be executed. Enacted February 27, 1905; stats. 1905, p. 22. § 322 civil code. 55 CHAPTER II. CORPORATE STOCK. Art. I. Stock and stockholders. SS 322-329. II. Assessments of stock. S§ 331-349. Article I. Stock and Stockholders. Sec. 322. Liabilities of stockholders. They may be released, when. 323. Certificates, how and when issued. 324. Shares are personal property; how transferred; water companies. 325. Transfer of shares held by married women, etc. Divi- dends are individual property. 326. Non-resident stockholders. Bonds required before transfer. 327. Contract to relieve directors void. 328. New or duplicate certificates of shares of stock, court may order issue. 329. Lost or destroyed bonds, how duplicates may be obtained. Summons. Judgment. indemnity. Liabilities of stockholders — They may be released, when. § 322. Each stockholder of a corporation is individually and personally liable for such proportion of all ils debts and liabil- ities contracted or incurred during the time he was a stock- holder as the amount of stock or shares owned by him bears lo the whole of the subscribed capital slock or shares of the cor- poration. Any creditor of the corporation may institute joint or several actions against any of ils stockholders, for the pro- portion of his claim payable by each, and in such action the court must ascertain the proportion of the claim or debt for which each defendant is' liable, and a several judgment must be rendered, against each, in conformity therewith. If any stock- holder pays his proportion of any debt due from the corporation, incurred while he was such stockholder, he is relieved from any further personal liability for such debt, and if an action has been broughl againsl him upon such debt, it must he dismissed, as to him. upon his paying the costs, or such proportion thereof as may be properly chargeable againsl him. The liability of 56 civil code. § 322 each stockholder is determined by the amount of stock or shares owned by him at the time the debt or liability was incurred ; and such liability is not released by any subsequent transfer of stock. The term stockholder, as used in this section, applies not only to such persons as appear by the books of the corporation to be such, but also to every equitable owner of stock, although the same appears on the books in the name of another ; and also to every person who has advanced the installments or purchase money of stock in the name of a minor, so long as the latter remains a minor ; and also to every guardian, or other trustee, who voluntarily invests any trust funds in the stock. Trust funds in the bands of a guardian, or trustee, are not liable, under the provisions of this seel ion. by reason of any such investment ; nor must the person for whose benefit the investment is made be responsible in respect to the stock until he becomes compe- tenl and able to control the same; but the responsibility of the guardian or trustee making the investment continues until that period. Stock held as collateral security, or by a trustee, or in any other representative capacity, does not make the holder thereof a stockholder within the meaning of this section, except in the eases above mentioned, so as to charge him with any proportion of the debts or liabilities of the corporation ; but the pledgor, or person or estate represented, is to be deemed the stockholder, as respects such liability. In a corporation having no capital stock, each member is individually and personally liable for an equal share of its debts and liabilities, and similar actions may be brought against him, either alone or jointly with other mem- bers, to enforce such liability as by this section may be brougb.1 against one or more stockholders, and similar judgments may be rendered. The liability of each stockholder of a corporation formed under the laws of any other state or territory of the United States, or of any foreign country, and doing business within this state, is the same as the liability of a stockholder of a corporation created under the constitution and laws of this state. Amended March 20, 1905; stats. 1905, p. 39G. 59 Cal. 109, 286; 62 Oal. -101 : 04 Cal. 121, 2SS ; 05 Cal. 210; 87 ( Sal. 31 ; 95 < Sal. 580, 589 ; 97 Cal. 95 ; 99 Cal. 92 : 107 Cal. 381, 446; 108 Cal. 4; 109 Cal. 588; 111 Cal. 63; 113 Cal. 25; 115 Cal. 380, 594; 116 Cal. 384; 118 Cal. 276; 122 Cal. 072; 124 Cal. 150; 125 Cal. 8, 412; 127 § 322 civil code. 57 Cal. 82, 675 ; 130 Cal. 274 ; 133 Cal. 507 ; 130 Cal. 513 ; 140 Cal. 104, 105; 141 Cal. 227; 142 Cal. 384; 145 Cal. 710 ; 147 Cal. 575 ; XXXVII Cal. Dec. 3G ; 2 Cal. App. 131, 134, 138, 139, 447 ; 4 Cal. App. 293, 093 ; VIII Cal. App. Dec. 737. Note. — § 322. The change consists in the substitution of the language of the first sentence of section 3 of article XII of the constitution in place of the first sentence of the old section. As the section stood, it is believed to be unconstitutional. (See Larrabee vs. Baldwin, 35 Cal. 155.) The words "an equal share" are substituted for "his proportion." Liability of stockholders: Constitution of California, art. XII, § 3 ; protection of stockholders : See "Fraudulent Reports," statutes at large, Appendix. Certificates, how and when issued. § 323. All corporations for profit must issue certificates for stock when fully paid up, signed by the president and secretary, and may provide, in their by-laws, for issuing certificates prior "to full payment, under such restrictions and for such purposes as their by-laws may provide, but any certificate issued prior to full payment must show on its face what amount has been paid thereon. All certificates of stock issued by corporations author- ized by their articles of incorporation to issue stocks of different classes, shall express upon their face the character of stock repre- sented by said certificates. The said certificates shall also state (he number of shares of si nek of each class which said corpora- tion is authorized to issue, and the said certificates shall also contain a statement of the nature and extent of the preference granted to the preferred stock. Amended March 18, 1907; .stats. 1907, p. 348. 82 Cal. 003; 96 Cal. 329; 101 Cal. 79; 135 Cal. 583; XXXVI Cal. Dec. 79, 285 ; 2 Cal. App. 130, 131. Note.- — § 323. The change in 1905 consisted in the addition of the words "but any certificate issued prior to full payment must show on its face what amount has been paid thereon," the object being to require a certificate issued prior to full payment to show the amount paid thereon. The change in 1907 consisted in the addition of the last two sentences, to cover cases of the issuance of preferred and common stock. 58 CIVIL CODE. § P>24 Shares are personal property; how transferred; water companies. § 324. Whenever the capital slock of any corporation is divided into shares, and certificates therefor are issued, such shares of stock, except as hereinafter provided, are personal property, and may be transferred by indorsement by signature of the proprietor, his agent, attorney, or legal representative, and the delivery of the certificate; but such transfer is not valid, except as to the parties thereto, until the same is so entered upon the books of the corporation as to show the names of the parties by whom and to whom transferred, the number of ili" certificate, the number or designation of the shares, and the dale of the transfer: provided, however, that any corporation organized for, or engaged in the business of selling, distributing, supplying-, or delivering water for irrigation purposes or for domestic use, may in its by-laws provide that water shall only be so sold, distributed, supplied, or delivered to owners of its capital stock, and that such stock shall be appurtenant to certain lands when the same are described in the certificate issued there- for; and when such certificate shall be so issii"d. and a certified copy of such by-law recorded in the office of the county recorder in the county where such lands are situated, the shares of stock so located on any land shall only be transferred with said lands. and shall pass as an appurtenance thereto. Whenever any officer of any corporation shall refuse to make entries upon the books thereof, or to transfer stock therein, or to issue a certificate or certificates therefor to the transferee as provided i ind the next preceding section, such r shall ! t ialty of four hundred dollars, to be recovered i dam;.. in an acl ion brought against him by ti Amended March 22, 1907 ; slats. 1907, p. ' 53 Cal. 431 ; 58 C; 03 Cal. 304; 72 Cal. 9; 70 Cal. 331 ; 82 G 84 Cal. 137; I Cal. 032; 113 Cal. 270; 120 Cal. 534 ; L34 Cal. 513; 1 II Cal. LG ; I 17 Cal. 240, 242; 109, 110; 2 Cal. App. 131. Transfer of shares held by married women, etc. — Dividends are individual property. § 325. Shares of stock in corporations standing on the books of the corporation in the name of a married woman may be transferred by her, her agent or attorney, without the signa- ture of her husband, and in the same manner as if such married § 325 civil code. 59 woman were ;i femme sole. All dividends payable upon any of su
  • !> Cal. 296; 133 Cal. 00 ; 135 Cal. 632; 141 Cal. 227: 14.". Cal. 700, 701. 702: 140 Cal. 706; 2 Cal. App. 130: 4 Cal. App. .",07: VII Cal. App. Dec. 730. Limitation — How levied. S 332. No one assessment must exceed ten per cent of the amount of the capital stock named in the articles of incorpora- tion, except in the cases in this section otherwise provided for. as follows : 1. If i he whole capital of a corporation has not been paid up, and the corporation is unable to meet its liabilities or to satisfy the claims of its creditors, the assessment may be for the full amount unpaid upon the capital stock; or if a less amount is sufficient, then it may be for such a percentage as will raise that amount ; 2. The directors of railroad corporations may assess the capital stock in installments of not more than teu per cent per mouth, unless in the articles of incorporation it is otherwise pro- vided : 3. The directors of fire or marine insurance corporations may assess such a percentage of the capital stock as they deem proper. Enacted March 21, 1872. or, Cal. 194; 93 Cal. 549; !>'.) Cal. 14: 107 Cal. 450; 14."> Cal. 701. 702. 707: XXXVI Cal. Dec. 78; VII Cal. App. Dec. 730; 2 Cal. App. 130, 448. 64 civpl code. § 333 Levy of assessment — Old assessment remaining unpaid. § 333. No assessment must be levied while any portion of a previous one remains unpaid, unless : 1. The power of the corporation has been exercised in accord- ance with the provisions of this article for the purpose of col- lecting such previous assessment ; 2. The collection of the previous assessment has been enjoined ; or, 3. The assessment falls within the provisions of either the first, second, or third subdivision of section three hundred and thirty-two. Enacted March 21, 1872. 05 Cal. 195; VII Cal. App. Dec. 730. What order shall contain. § 334. Every order levying an assessment must specify the amount thereof, when, to whom, and where payable ; fix a day, subsequent to the full term of publication of the assessment notice, on which the unpaid assessments shall be delinquent, not less than thirty nor more than sixty days from the time ot making the order levying the assessment ; and a day for the sale of delinquent stock, not less than fifteen nor more than sixty days from the day the stock is declared delinquent. Enacted March 21, 1872. 6 Cal. App. 358. Notice of assessment — Form. § 335. Upon the making of the order, the secretary shall cause to be published a notice thereof, in the following form : (Name of corporation in full. Location of principal place of business.) Notice is hereby given, that at a meeting of the directors, held on the (date), an assessment of (amount) per share was levied upon the capital stock of the corporation, pay- able (when, to whom, and where). Any stock upon which this assessment shall remain unpaid on the (day fixed) will be delinquent and advertised for sale at public auction, and, unless payment is made before, will be sold on the (day appointed), to pay the delinquent assessment, together with costs of advertis- ing and expenses of sale. (Signature of secretary, with location of office.) Enacted March 21, 1872. 101 Cal. 81. § 336 civil code. 65 Publication and service of notice. § 336. The notice must be personally served upon each stock- holder, or, in lieu of personal service, must be sent through the mail, addressed to each stockholder at his place of residence, if known, and if not known, at the place where the principal office of the corporation is situated, and be published once a week, for four successive weeks, in some newspaper of general circulation and devoted to the publication of general news, published at the place designated in the articles of incorporation as the principal place of business, and also in some newspaper published in the county in which the works of the corporation are situated, if a paper be published therein. If the works of the corporation are not within a state or territory of the United States, publication in a paper of the place where they are situated is not necessary. If there be no newspaper published at the place designated as the principal place of business of the corporation, then the pub- lication must be made in some other newspaper of the county, if there be one, and if there be none, then in a newspaper published in an adjoining county. Amended March 30. 1874 ; amendts. 1S73-4, p. 206. VII Cal. App. Dec. 731. Delinquent notice — Form. 8 337. If any portion of the assessment mentioned in the notice remains unpaid on the day specified therein for declar- ing tli" stock delinquent, the secretary must, unless otherwise ordered by the board of directors, cause to be published in the same papers in which the notice hereinbefore provided for shall have been published, a notice substantially in the following form : (Name in full. Location of principal place of business.) Notice. — There is delinquent upon the following described stock, on account of assessment levied on the (date), (and assess- ments levied previous thereto, if any,) the several amounts set opposite the names of the respective shareholders, as follows : (Names, number of certificate, number of shares, amount.) And in accordance with law (and an order of the board of directors, made on the [date], if any such order shall have been made), so many shares of each parcel of such stock as may be necessary, will be sold, at the (particular place), on the (date), 06 CIVIL CODE. § 337 at (the hour) of such day, to pay delinquent assessments thereon. together with costs of advertising and expenses of the sale. (Name of secretary, with location of office.) Enacted March 21, 1872. 101 Cal. 76; Ion Cal. 493; 109 Cal. S; VII Cal. App. Dec. 731. Contents of notice. S 338. The notice must specify every certificate of stock, the number of shares it represents, and the amount due thereon, except where certificates may not have been issued to parties entitled thereto, in which case the number of shares and amount due thereon, together with the fact that the certificates for such shares have not been issued, must he stated. Enacted March 21. 1872. 101 Cal. 70; 108 Cal. .168. How published. 8 339. The notice, when published in a daily paper, must be published for ten days, excluding Sundays and holidays, previous to the day of sale. When published in a weekly paper, it must be published in each issue for two weeks previous to the day of sale. The first publication of all delinquent sales must be at least fifteen days prior to the day of sale. Enacted March 21. 1872. lol Cal. 70: 108 Cal. 493; 120 Cal. 200: VII Cal. App. Die. 731. Jurisdiction acquired, how. 8 340. By the publication of the notice, the corporation acquires jurisdiction to sell ami convey a perfect title to all of the stock described in the notice of sale upon which any portion of the assessment or costs of advertising remains unpaid at the hour appointed for the sale, but must sell no more of such stock than is necessary to pay the assessments due and costs of sale. Enacted March 21. 1872. Cal. App. 281. Sale to be by public auction. S 341. < )n the day, at the place, and at the time appointed in the notice of sale. Ihi' secretary must, unless otherwise ordered by the directors, sell or cause to be sold at public auction, to § .".41 CIVII, CODE. <>7 the highesi bidder fur cash, so many shares of each parcel of the described slock as may be necessary to pay the assessment ami chart's thereon, according to the terms of sale: [f payment is made before the time fixed for sale, the party paying is only required to pay the actual cost of advertising, in addition to the assessment. Enacted March 21. 1*71'. Highest bidder to be the purchaser. S 342. The person offering at such sale to pay the assess- ment and costs for the smallest number of shares or fraction of a share is the highest bidder, and the stock purchased must be transferred to him on the stock books of the corporation, on payment of the assessment and costs. Enacted March 21, 1S72. In default of bidders, corporation may purchase. § 343. If. at the sale of stock, no bidder offers the amount of the assessments, and costs and charges due, the same may be bid in and purchased by the corporation, through the secretary, president, or any director thereof, at the amount of the assess- ments, costs, and charges due: and the amount of the assess- ments, costs, and charges must be credited as paid in full on the books of the corporation, and entry of the transfer of the stock to the corporation must be made on the books thereof. While the stuck remains the property of the corporation, it is not assessable, nor must any dividends be declared thereon; but all assessments and dividends must be apportioned upon the stock held by the stockholders of the corporation. Enacted March 21. 1872. .-)7 Cal. 398. Disposition of stock purchased by corporation. S 344. All purchases of its own stock made by any corpora- lion vest the legal title to the same in the corporation; and the stock so purchased is held subject to the control of the stock- holders, who may make such disposition of the same as they deem Hi, in accordance with the by-laws of the corporation or vote of a majority of till the remaining shares. Whenever any portion of the capital stock of a corporation is held by the cor- poration by purchase, a majority of the remaining shares is a 08 civil codk. § 344 majority of the stock for all purposes of election or voting on any question at a stockholders' meeting. Enacted March 21, 1872. 57 Cal. 398; 72 Cal. 33; 109 Cal. 588. Extension of time of delinquent sale. §'345. The dates fixed in any notice of assessment or notice of delinquent sale, published according to the provisions hereof, may be extended from time to time for not more than thirty days, by order of the directors, entered on the records of the corporation ; but no order extending the time for the perform- ance of any act specified in any notice is effectual unless notice of such extension or postponement is appended to and published with the notice to which the order relates. Enacted March 21, 1872. 4 Cal. App. 50S. Assessment shall not be invalidated. § 346. No assessment is invalidated by a failure to make publication of the notices hereinbefore provided for, nor by the non-performance of any act required in order to enforce the payment of the same ; but in case of any substantial error or omission in the course of proceedings for collection, all previous proceedings, except the levying of the assessment, are void, and publication must be begun anew. Enacted March 21, 1872. 76 Cal. 28; 108 Cal. 495; 109 Cal. 8; VII Cal. App. Dec. 731. Action for recovery of stock, and limitation thereof. § 347. No action must be sustained to recover stock sold for delinquent assessments, upon the ground of irregularity in the assessment, irregularity or defect of the notice of sale, or defect or irregularity in the sale, unless the party seeking to maintain such action first pays or tenders to the corporation, or the party holding the stock sold, the sum for which the same was sold, together with all subsequent assessments which may have been paid thereon and interest on such sums from the time they were paid ; and no such action must be sustained unless the same is commenced by the filing of a complaint and the issuing of a summons thereon within six months after such sale was made. Enacted March 21, 1872. 76 Cal. 28 ; 133 Cal. 66 ; 153 Cal. 282. § 348 CIVIL CODE. 09 Affidavits of publication — Affidavits of sale — To be filed. § 348. The publication of notice required by this article may be proved by the affidavit of the printer, foreman, or principal clerk of the newspaper in which the same was published ; and the affidavit of the secretary or auctioneer is prima facie evidence of the time and place of sale, of the quantity and particular description of the stock sold, and to whom, and for what price, and of the fact of the purchase money being paid. The affidavits must be filed in the office of the corporation, and copies of the same, certified by the secretary thereof, are prima facie evidence of the facts therein stated. Certificates signed by the secretary and under the seal of the corporation are prima facie evidence of the contents thereof. Amended March 30, 1874; amendts. 1873-4, p. 207. Publication : § 339, Civ. C. Waiver of sale — Action to recover assessment. § 349. On the day specified for declaring the stock delin- quent, or at any time subsequent thereto and before the sale of the delinquent stock, the board of directors may elect to waive further proceedings under this chapter for the collection of delin- quent assessments, or any part or portion thereof, and may elect to proceed by action to recover the amount of the assessment and the costs and expenses already incurred, or any part or por- tion thereof. Enacted March 21, 1872. 101 Cal. 70; 108 Cal. 493; 109 Cal. 3; 110 Cal. G35 ; 129 Cal. 296 ; 145 Cal. 700, 701 ; 2 Cal. App. 13G ; 4 Cal. App. 507 ; VII Cal. App. Dec. 730, 731. • 70 CIVIL CODE. § .H~4 CHAPTER III. CORPORATE POWERS. Art. I. General powers. §§ 354-365. II. Records. §§ 377-378. III. Examination of corporations. §§ 382-384. IV. Judgment against and sale of corporate property. §§ 388-393. Article I. General Powers. Sec. 354. Powers of corporations. Limitation of powers. Issuing or circulating paper money prohibited. Misnomer does not invalidate instrument. Corporation to organize within one year. Increasing and diminishing capital stock or bonded indebtedness, how. Corporations may acquire real property, and how much. < "unsolidation of mining companies owning adjoining claims. [Repealed.] Sale, lease, or transfer of business or franchise. Articles of incorporation, how amended. Corporations may own their lots and buildings. [Repealed. ] 363. Erroneous filing of articles of incorporation, how cor- rected. 364. Sale of concessions or property in foreign country. 365. Lost or destroyed records. Powers of corporations. S354. Every corporation, as such, lias power: 1. Of succession, by its corporate name, for the period limited: and when no period is limited, perpetually : -. To sue and be sued, iii any court : 3. To make and use a common seal, and alter the same at pleasure ; 4. To purchase, hold, and convey such real and personal estate as the purposes of the corporation may require, not exceeding the amount limited in this part : .">. To appoint such subordinate officers or agents as Hie busi- ness of the corporation may require, and to allow them suitable compensation ; 354. 355. 356. 357. 358. 359. 360. 361. 361a 362. 363. § 354 ' CIVIL CODE. "1 6. To make by-laws, not inconsistent with any existing law, for the management of its property, the regulation of its affairs, and for the transfer of its stock : 7. To admit stockholders or members, and to sell their stock or shares for the payment of assessments or installments : 8. To enter into any obligations or contracts essential to the transaction of its ordinary affairs, or for the purposes of the corporation. Enacted March 21, 1S72. 52 Cal. 59; 56 Cal. 63; 59 Cal. 24; 62 Cal. 104; 63 Cal. 363; 93 Cal. 309; 108 Cal. 558; 109 Cal. 1*13: 117 Cal. 177: 118 Cal. 138; 126 Cal. 416; 144 Cal. 594; 1 Cal. A pp. 195; 2 Cal. A pp. 627. Definition of corporation: Civ. C. §283; enumeration of powers: Civ. C. §354; limitation of powers: Civ. C. §355. Succession for limited period. §290; homestead corporations ten years, § 557, Civ. C. Actions against corporation: ('(institution of California, art. XII, § 16; Code Civ. Proc. §395. Power to make by-laws: Civ. C. §301. Sale of delinquent shares: Civ. C. § 331 ei seq. Limitation of powers. S 355. In addition to the powers enumerated in the preced- ing section, and to those expressly given in that title of this part under which it is incorporated, no corporation shall possess or exercise ;iny corporate powers, except such as are necessary to l he exercise of the powers so enumerated and given. Enacted March HI, 1872. (12 Cal. 104. issuing or circulating paper money prohibited. S 356. No corporation shall create or issue bills, notes, or other evidences of debt, upon loans or otherwise, for circulation as money. Enacted March 21, 1872. See Pen. C. § 648, punishing issuance or circulation of paper money, except as authorized by the United States. See. also. Constitution of California, art. XFT. §5; but negotiable instruments may be executed: Civ. C. §354, sub- division 8. 72 civil code. § 357 Misnomer does not invalidate instrument. § 357. The misnomer of a corporation in any written instru- ment does not invalidate the instrument, if it can be reasonably ascertained from it what corporation is intended. Enacted March 21, 1872. 93 Cal. 314 ; 138 Cal. 194 ; 2 Cal. App. 441. Corporation to organize within one year. § 358. If a corporation does not organize and commence the transaction of its business, or the construction of its works within one year from the date of its incorporation, or if, after its organization and commencement of its business, it shall lose or dispose of all its property, and shall fail for a period of two years to elect officers and transact, in regular order, the busi- ness of said corporation, its corporate powers shall cease, and the said corporation may be dissolved at the instance of any creditor of the said corporation, at the suit of the state, on the information of the attorney general ; but the resumption of its business in good faith by such corporation prior to the com- mencement thereof shall be a bar to such suit. The due incor- poration of any company claiming in good faith to be a corporation under this part, and doing business as such, or its right to exercise corporate powers, shall not be inquired into collaterally in any private suit to which such de facto corpora- tion may be a party ; but such inquiry may be had at the suit of the state on information of the attorney general; provided, how- ever, as to any company claiming in good faith to be, and which has been doing business for ten consecutive years as a corpora- lion, no such inquiry shall be made either by the state or by any person whatsoever. Amended March 23, 1901 ; stats. 1901. p. G32. 64 Cal. 72 ; 77 Cal. 372 ; SO Cal. 186 ; 82 Cal. 180 ; 97 Cal. 277; 102 Cal. 64; 106 Cal. 310; 109 Cal. 601; 126 Cal. 545 ; 131 Cal. 154 ; 137 Cal. 445 ; 151 Cal. 507, 508. Provision for railroads : Civ C. § 468 ; street railroads : Civ. C. § 502. Increasing and diminishing capital stock or bonded indebtedness, how. 8 359. No corporation shall issue stocks or bonds except for money paid, labor done or properly actually received, and all fictitious increase of stock or indebtedness is void. Every cor- § 359 civil code. 73 poration may increase or diminish its capital stock, and every corporation, or two or more corporations, may create or increase its or their bonded indebtedness, subject to the following pro- visions : First — The capital stock of a corporation may be increased or diminished at a meeting of the stockholders by a vote repre- senting at least two thirds of the subscribed or issued capital stock, or in the manner otherwise in this section provided ; when by meeting as aforesaid, then such meeting must be called by the board of directors or trustees, and notice must be given by publication in a newspaper published in the county or city and county where the principal place of business of the cor- poration is located, or if there be none published in said county or city and county, then in a newspaper published in an adjoin- ing county, or city and county, such paper to be designated by the board of directors or trustees in the order calling for the meeting; provided, however, that where the articles of incorpo- ration provide for two or more kinds of capital stock, no increase or reduction of capital stock shall be made without the asseDt of two thirds of all the subscribed stock, and in making such increase or reduction, the assent shall identify the particular class or classes of stock to be increased or reduced, and the amounts apportioned to each. Second — The notice must specify the object of the meeting and the amount to which it is proposed to increase or diminish (lie capital stock, the time and place of holding the meeting, which latter musl be al the principal place of business of the corporation and at (lie building where the board of directors or trustees usually meet. The notice herein provided must be pub- lished once a week for at least sixty days. The capital stock can not be diminished to an amount less than the indebtedness of the corporation. Third — The bonded indebtedness of a corporation may be created or increased by a vote of the stockholders representing at least two thirds of the subscribed or issued capital stock at a meeting called by the board of directors or trustees, and after notice of the time and place of the meeting published in the same manner and for the time prescribed, which notice shall state the amount <>( the bonded indebtedness which it is pro posed to create, or (he amount to which it is proposed to increase such indebtedness, and shall in all other respects contain the 4 — CL. li CIVIL CODE. § 359 same matters as are above provided and set forth in the notice of meeting to increase or diminish the capital stock ; or such original creation of bonded indebtedness may be made as other- wise in this section provided. Fourth — In addition to the notice by publication, when pro- ceedings are to be had hereunder at a meeting of stockholders, the secretary of the corporation shall also address a notice to each of the stockholders whose names appear on the company's books as sufficiently addressed or identified, at his place of resi- dence, if known, and if not known, then at the place in which the principal place of business of the corporation is situate, which notice shall be so mailed to such stockholders at least thirty days before the day appointed for such meeting. Fifth — In lieu of such call for meeting of stockholders and of such notice and publication of the same and of a stockholders' meeting held in pursuance thereof and of said vote thereat repre- senting at least two thirds of the subscribed capital stock, any corporation may diminish its capital stock and also originally create its bonded indebtedness by a resolution adopted by the unanimous vote of its board of directors or trustees at a regu- lar meeting or at a special meeting called for that purpose and approved by the written assent or assents of the stockholders holding two thirds of the subscribed or issued capital stock, which assent or assents must be filed with the secretary of the corporation ; but the secretary of the corporation must address by mail, postage fully prepaid, a copy of such resolution to each of the stockholders whose names appear upon the company's books as sufficiently addressed or identified, at his place of resi- dence, if known, and if not known, then at the place in which the principal place of business of the corporation is situate, which notice shall be so mailed to such stockholders at least thirty days before the certificate hereinafter provided is made and signed or filed, as hereinafter provided, and within that time any stockholder may file with such secretary his dissent in writing ; but it is further provided that if at any time within said thirty days such written assent or assents of the stockholders holding all of the subscribed or issued capital stock be so filed with said secretary, then and at once and without further delay the certificate hereinafter provided for may be so made, signed and filed as hereinafter provided and with the same effect, but such capital stock ran not be diminished to an amount less than § 359 civil code. 75 the indebtedness of the corporation, and no increase of capita] stock or bonded indebtedness can be made, except at a meeting of stockholders as in this section provided. Sixth — Any two or more corporations may by a separate compliance by each corporation with the provisions of this sec- tion applicable in the premises in respect to creating or increas- ing bonded indebtedness, create or increase a consolidated bonded indebtedness of such corporations, to be binding jointly and severally on such corporations, and which may be secured by a consolidated mortgage or deed of trust executed by all such cor- porations, mortgaging or conveying in trust all or any of tin- properties of all such corporations, acquired or to be acquired. Seventh — Upon such increase or diminution of the capital slock or creation or increase of the bonded indebtedness being made in accordance with the provisions of this section there shall be made, if proceedings are had under subdivisions first, second, third and fourth above, a certificate under the cor- porate seal and signed by the president and secretary of the corporation or of each corporation acting in the premises and a majority of the directors or trustees of such corporation, or each corporation so acting, showing a compliance by such cor- poration, or each corporation so acting, with the requirements of said last named subdivisions and the amount to which the capital stock has been increased or diminished or the amount of the bonded indebtedness created, or to which the bonded indebtedness may have been increased, and the amount of stock represented at the meeting and the total vote in the affirmativ< by which the same was accomplished and the total vote in the negative ; or if such proceedings be had and taken under sub- division fifth of this section as to diminution of capital stock or original creation of bonded indebtedness a like certificate shall be made and scaled and signed, as aforesaid, showing a com- pliance by such corporation, and by each corporation acting in the premises, with the requirements of said subdivision fifth, and the amount to which the capital stock has been diminished or the amount of bonded indebtedness so originally created, and the total amount of the stock represented by the said written asscni or assents so filed with the secretary and the total amount of stock represented by the said written dissent or dissents so filed. In case of a consolidated bond of indebtedness each corporation which is a party thereto shall cause to be made and signed and 76 CIVIL CODE. § ."»" ( .) sealed and verified and filed, as in ihis section provided, a sepa- rate certificate. Eighth — In all eases the certificates shall state the total num- ber of subscribed or issued shares of the capital stock of the corporation, or of each corporation respectively acting in the premises, and shall be verified by the oath of the said president and secretary, or of the said respective presidents and secre- taries. Such consolidated bonded indebtedness may be created or increased to an amount equal to the par or face value of the aggregate amount of the subscribed or issued capital stocks of said two or more corporations, but shall not exceed such aggregate amount. Tn each and every case the certificate inusi be filed in the office of the clerk in the county or city and county where the original articles of incorporation of the corporation or corporations acting hereunder are filed and a certified copy thereof, certified by such clerk, shall be filed iu the office of the secretary of state ; and thereupon the capital stock shall be so increased or diminished, or the bonded indebtedness or consoli- dated bonded indebtedness shall be created or increased accord- ingly, and such certificate or certificates so filed shall be, when said certified copy or copies are so filed, conclusive proof of such increase or diminution of capital stock or such creation or increase of bonded or consolidated bonded indebtedness and the validity of each thereof. When the by-laws of a corporation prescribe the paper in which notices of meetings of directors or trustees or stockholders are to be published the notices of publication herein provided for shall be published in such paper, unless publication thereof shall have ceased. Amended March 18, 1907 ; stats. 1907, p. 349. See, also, § 309, ante. 56 Cal. 651; 65 Cal. 617; 96 Cal. 161; 103 Cal. 630; 109 Cal. 594 ; 112 Cal. 213 ; 116 Cal. 424 ; 125 Cal. 454 ; 135 Cal. 583; 147 Cal. 582; 152 Cal. 417; XXXVI Cal. Dec. 359 ; 2 Cal. App. 130. Note. — § 359. The change consists in the addition of the "provided, however," clause in subdivision first, to cover cases of corporations issuing preferred and common stock. Corporations may acquire real property, and how much. § 360. No corporation shall acquire or hold any more real property than may be reasonably necessary for the transaction of its business, or the construction of its works, except as other- § ?,60 CIVIL CODE. 77 wise specially provided. A corporation may acquire real prop- erty, as provided in title seven, pari three, of the Code of Civil Procedure, when needed for any of the uses and purposes men- tioned in said title. By a unanimous vole of all the directors a( any regular meeting, any corporation existing, or hereafter to be formed under the laws of (his slate, may acquire aud hold the land and building on and in which its business is carried on, and may improve the same to any extent required for the con- venient transaction of its business. Amended March 22, 100.",; stats. 1905, p. 774. 144 Cal. 594. Note. — §360. Section 363, approved March 5, L889, is added to section 360, to the end that there shall not be two sectii numbered 363. [See note to section 363.] Acquiring of land by insurance corporations: Civ. C. §415; by railroad corporations: Civ. C. §405. Consolidation of mining companies owning adjoining claims. [Repealed.] § 361. Consolidation of mining companies owning adjoining claims. [Repealed March 22, 1905; stats. 1905, p. 775.] 147 Cal. 666. Note. — §361. Repealed, and the matter tin-rein added to sec- tion 587a. Sale, lease, or transfer of business or franchise. § 361 f/. No sale, lease, assignment, transfer or conveyance of the business, franchise aud property, as a whole, of any cor- poration now existing, or hereafter to be formed in this state, shall be valid without the consent of stockholders thereof, hold- ing of record at least two thirds of the issued capital stock of such corporation ; such consent to be either expressed in writing, executed and acknowledged by such stockholders, and attached i" such sale, lease, assignment, transfer or conveyance, or by vote at a stockholders' meeting of such corporation called for that purpose; but with such assent, so expressed, such sale, lease, assignment, transfer or conveyance shall be valid ; provided, how- ever, that nothing herein contained shall be construed to limit the power of the directors of such corporation to make sales. 78 civil code. § 361a leases, assignments, transfers or conveyances of corporate prop- erty olher than those hereinabove set forth. Enacted March 24, 1903; slats. 1003, p. 390. 152 Cal. 584, 586, 587. See] also, "Franchises," Appendix. Articles of incorporation, how amended. § 362. Any corporation may amend its articles of incorpora- tion by a majority vote of its board of directors or trustees, and by a vote or written assent of the stockholders representing at least two thirds of the subscribed capital stock of such cor- poration, or the written assent of the majority of I he members if there is no capital slock; ami a. copy of the said articles of incorporation, as thus amended, duly certified to be correct by (he president and secretary of the board of directors or trustees of such corporation, shall be filed in the office where the original articles of incorporation are filed, and a certified copy thereof, duly certified by such county clerk, in the office of the secretary of state. A copy of such articles of incorporation, so amended, duly certified by the secretary of state, must be filed in the office of the county clerk of every county in which such corporation has or holds properly, except only the county in which the original amended articles of incorporation have been filed. Any corporation which shall amend its articles of incorporation and shall fail to file copies of its amended articles, as required by the preceding sentence, shall be subject to the penalties and liabilities provided in section two hundred and ninety-nine for a failure of corporations to file copies of their articles of incor- poration in the offices of the county clerks of the counties in which they shall purchase, hold, or locate property, and from the time of so filing such copy of the amended articles of incor- poration, such corporation shall have the same powers, and the stockholders thereof shall thereafter be subject to the same liabilities, as if such amendment had been embraced in the original articles of incorporation. Such original and amended articles of incorporation shall together contain all the matters and things required by the laws under which the original articles if incorporation were executed and filed. Nothing contained in l his section must be construed to cure or amend any defect existing in the original articles of incorporation heretofore tiled, in that such articles did not set forth the matters required to § 362 civil code. TO make the same valid at the time of filing. If the assent of two thirds of said stockholders, or of the majority of members where there is no capital stock, to such amendment has not been obtained, a notice of the intention to make such amendment must first be advertised for thirty days in some newspaper published in the town, city, county, or city and county in which the prin- cipal place of business of the corporation is located, before the filing of the proposed amendment. Nothing in this section shall be construed to authorize any corporation to increase or diminish its capital stock, change its name, extend its corporate existence, or increase or diminish the number of its directors, without com- plying with the special provisions of this code applicable thereto. Amended March 22. 1005; stats. 1005. p. 775. 00 Cal. 30(3 ; 124 Cal. 115 ; 2 Cal. App. 552. Corporations may own their lots and buildings. [Repealed.] S 363. Corporations may own their lots and buildings. [Re- pealed March 22. 1005; stats. 1005. p. 77(3.] Note. — § 363. There were formerly two sections of this num- ber. Section ::•;:!. as adopted March 5, 1889, is repealed and its provisions amalgamated with section 360. This leaves in force the other section 363, which was adopted March 19, 1889. Erroneois filing of articles of incorporation, how corrected. §363. When articles of incorporation have been prepared, subscribed, and executed in accordance with the provisions of sections two hundred and niuety and two hundred and ninety- two of the Civil Code, and such original articles filed by error or inadvertence with I he clerk of a county other than that named in the articles of incorporation as the county in which tin- principal place of business is to he transacted, and the sec- retary of state shall have issued a certificate of incorporation based on a certified copy of such original articles of incorpora- tion, any stockholder or director of such corporation may petition the superior court of the county in which said original articles of incorporation were tiled for an order to withdraw such origi- nal articles of incorporation, and tile in place thereof a certified copy of the copy thereof on file in the office of the secretary of slate. Such petition musl he verified, and must state clearly the facts, showing that such articles of incorporation were filed by inadvertence and mistake; and notice of the hearing of said petition must, he given for at least ten days before the day of 80 CIVIL CODE. § 303 hearing, by publication in a newspaper published in the county where such petition is filed. Upon the day set for hearing the petition, the superior court may grant an order allowing such original articles of incorporation to be withdrawn, and a certified copy of the copy in the office of the secretary of state in the place (hereof filed; and the original articles of incorporation must be filed within ten days thereafter in the county in which the prin- cipal place of business is to be transacted, as stated in such articles of incorporation, and a certified copy of the order allow- ing such action must be filed with the certified copy in the office of the secretary of state, after which said corporation shall be i ntitled to all rights and privileges of a private corporation, and the title to any property it may have previously acquired shall not be affected by reason of the failure to file the original articles of incorporation in the first instance. Enacted March 10, 18S0; stats. 1889, p. 332. Sale of concessions or property in foreign country. § 364. Any corporation of this state owning grants, conces- sions, franchises, and properties, or any thereof, in any foreign country, may sell and convey the same to the government of such foreign country, or to any person or persons, or any cor- poration or corporations, or association or associations, created by or existing under the laws of this or any other state or tin 1 (iiilcd Stales, or any foreign government : provided, however, that the powers hereby .mauled shall only be exercised by a majority of the entire board of directors of such corporation of this state, with the concurrence in writing of the holders of two thirds in amount of the capital stock (hereof. Enacted March 13, 1899; slats. 1899, p. 95. Lost or destroyed records. S 365. Whenever il shall appear thai the minutes, records, seal, assessment book, slock journal, slock ledger, certificate book, certificate of slock or bonds or other papers or records of any corporation, municipal, quasi or otherwise, in this state, shall have been or shall hereafter be lost or destroyed by confla- gration or other public calamity, such corporation, by a vote of ils board of directors, or any stockholder or bondholder of such corporation, max- petition the superior courl of the county, or eii\ ami county, in which the principal place of business of such corporation is located, to restore such lost, destroyed, or injured § 365 CIVIL CODE. 81 minutes, records, seal, assessment book, stock journal, stock ledger, certificate book, certificate of stock or bonds or other papers or records. Such petition .shall state the loss, destruction or injury to any such records or documents or certificates of stock or bonds, or other papers or records, or any part or por- tion thereof, giving the cause of such loss, injury or destruction. On the filing of such petition, duly verified, said superior court shall make an order, fixing a time and place for the hearing of the same, and directing the clerk of the court to give notice of such a hearing by publication of a notice stating the time and pldce of the hearing of said petition and the purpose thereof, which time shall not be less than twenty-five nor more than thirty days from the completion of such publication. Notice of such hearing shall be given by publication in some newspaper of general circulation, printed and published in such county, or city and county, where the principal place of business of said cor- poration is located, and if there be no such newspaper published in said county, or city and county, then in some adjoining county, to be designated by the court or judge thereof, which publication shall be daily (except Sundays) for a period of at least three successive weeks. In case there is no daily news- paper published in either of said counties then such notice shall be published once a week for three successive weeks in a weekly newspaper published in such county. A copy of .said notice shall also be personally served upon all persons affected thereby residing in the State of California, whose place of residence or place of business is known to the corporation or any of its officers, if such person can be found within the state, which service may be made at any time during said period of publica- tion. If the place of business or place of residence of any per- sons affected by said petition or proceeding is unknown to the corporation or any of its officers, within forty-eight hours after the filing of said petition, a copy of said notice shall be mailed to each of the persons affected by said petition or proceeding whose place of residence or place of business is unknown to said corporation or any of its officers, addressed to them, postage prepaid, at the county seat of the county, or county and city, where the place of business of said corporation is located. In addition to the notice by publication, the petitioner shall address a copy of said notice to each of the stockholders of said corpora- tion, and also to each of the persons affected by said petition, 82 CIVIL COOK. § 365 whose names and places of residence or business are known (o the corporation or any of its officers, at his [dace of business or residence, postage prepaid, which notice shall be mailed to such stockholders or persons within forty-eight hours after the filing of said petition. The court before proceeding to hear the case, shall require proof to be made that notice has been published and given as hereinbefore required and service of such notice personally if the same has been so served and if the same has not been so served, an affidavit of the petitioner stating the reasons why such personal service has not been made, shall also be then filed. Upon the completion of said publication, said court shall have jurisdiction to inquire into and determine the loss, injury or destruction of such minutes, records, seal, assess- ment book, slock journal, stock ledger, certificate book, .certifi- cates of stock or bonds, or other papers and documents, and to fix and determine by its judgment or decree, the ownership of said certificates of stock or bonds and the persons entitled thereto, and to direct such corporation to restore its records, seal, assessment book, stock journal, stock ledger, certificate book, certificates of stock or bonds or any other paper or record so lost, injured or destroyed, and to issue new bonds or certifi- cates of stock or other paper or document to any person or per- sons to whom the same may belong or who may be entitled I herein, as determined by the judgment of the court. Any stock, bond or other paper, the ownership of which can not be deter- mined, shall be found by the court, by ils judgment, to belong lu unknown owners, and in all proceedings of such corporation, including proceedings for assessment of slock, and the collection of such assessment, and the payment of dividends, and notice of sale and sale for delinquent assessments, said stock or dividends shall be so designated as belonging to unknown owners, without giving the name of the owner thereof or the number of the cer- tificate or series or issue. Enacted June 18, 1906; stats. 1906, p. 84. . See, also. "Certificates," statutes at large, Appendix. § 377 CIVIL CODE. 83 Aim CLE II. Records. Sec. 377. Records — of what, and how kept. 378. Other records to be kept by corporations for profit, and others. Records — of what, and how kept. S 377. All corporations for profit are required to keep a record of all their business transactions ; a journal of all meet- ings of their directors, members, or stockholders, with the time and place of holding the same, whether regular or special, and if special, its object, how authorized, and the notice thereof given. The record must embrace every act done or ordered to be done ; who were present, and who absent ; and, if requested by any director, member, or stockholder, the time shall be noted when he entered the meeting or obtained leave of absence there- from. On a similar request, the ayes and noes must be taken on any proposition, and a record thereof made. On similar request, the protest of any director, member, or stockholder, to any action or proposed action, must be entered in full — all such records to be open to the inspection of any director, member, stockholder, or creditor of the corporation. Enacted March 21, 1872. 63 Cal. 484; 70 Cal. 2(3; 78 Cal. 033; 94 Cal. 549; 107 Cal. 636 ; 135 Cal. 025 ; 140 Cal. 223 ; 5 Cal. App. 021 ; VIII Cal. App. Dec. 522. Penalty for refusal to permit inspection : Pen. C. § 505. Other records to be kept by corporations for profit, and others. § 378. In addition to the records required to be kept by the preceding section, corporations for profit must keep a book, to be known as the "stock and transfer book," in which must be kept a record of all stock ; the names of the stockholders or members, alphabetically arranged ; installments paid or unpaid ; assessments levied and paid or unpaid ; a statement of every alienation, sale, or transfer of stock made, the date thereof, and by and to whom; and all such other records as the by-laws prescribe. Corporations for religious and benevolent purposes must provide in their by-laws for such records to be kept as 8 I CIVIL CODE. § 37S may be necessary. Such stock and transfer book must be kept open to the inspection of any stockholder, member, or creditor. Enacted March 21, 1872. 107 Cal. 453, 636; 146 Cal. 223; 2 Cal. App. 639. Article III. Examination of Corporations, Etc. Sec. 382. Examination into affairs of corporations, how made by officers of state. 383. Examination made by the legislature. 384. Chapter and article may be repealed. [Repealed.] Examination into affairs of corporations, how made by officers of state. § 382. The attorney general or district attorney, whenever and as often as required by the governor, must examine into the affairs and condition of any corporation in this state, and report such examination, in writing, together with a detailed statement of facts, to the governor, who must lay the same before the legis- lature ; and for that purpose the attorney general or district attorney may administer all necessary oaths to the directors and officers of any corporation, and may examine them on oath in relation to the affairs and condition thereof, and may examine the books, papers, and documents belonging to such corporation, or appertaining to its affairs and condition. Enacted March 21, 1872. 72 Cal. 23. Proceedings against corporation for unlawful exercise of franchise : Code Civ. Proc. § 803. Allowing inspection of books : Pen. C. § 565. Examination made by the legislature. § 383. The legislature, or either branch thereof, may examine into the affairs and condition of any corporation in this state at all times ; and for that purpose, any committee appointed by the legislature, or either branch thereof, may administer all neces- sary oaths to the directors, officers, and stockholders of such corporation, and may examine them on oath in relation to the affairs and condition thereof; and may examine the safes, books, papers, and documents belonging to such corporation, or pertain- ing to its affairs and condition, and compel the production qf all keys, books, papers, and documents by summary process, to be . 383 CIVIL CODE. 85 issued on application to any court: of record or any judge thereof, under such rules and regulations as the court may prescribe. Enacted March 21, 1872. 1 Cal. App. 67. Chapter and article may be repealed. [Repealed.] § 384. Chapter and article may be repealed. [Repealed March IS, 1907; stats. 1907, p. 578.] See note to sec. 403, post. Note. — § 384. As a result of the oversight in not repealing section 384 at the time section 404 was added in 1905, there were two sections in the Civil Code containing identical language, one being 384, and the other 404 ; 384 was not in the proper ph. and 404 was. Section 384 was therefore repealed in 1907, leav- ing section 404 intact, and a proviso was added in the repealing act so that any rights acquired under section 384 should not be lost, but continued in force under the provisions of section 404. Article IV. Judgment Against and Sale of Corporate Property. Sec. 388. Franchise may be treated as property, and sold under execution. 389. Purchaser to transact business of corporation. 390. Purchaser may recover penalties, etc. 391. Corporation to retain powers after sale-. 392. Redemption. :. Sale under execution, where made. Franchise may be treated as property, and sold under execution. § 388. For the satisfaction of any judgment against any per- son, company, or corporation having any franchise other than the franchise of being a corporation, such franchise, and all the rights and privileges thereof, may be levied upon and sold under execution, in the same manner, and with the same effect, as any other property. Amended March 20, L905 : stats. 1905, p. 409. 80 Cal. 341 ; 86 Cal. 283; 98 Cal. 313. Note. — § 388. This section as it stood applied only to corpora- tions authorized to receive tolls, and was probably unconstitu- tional as creating a special law where a general law may be made applicable. (See Krause vs. Durbrow, 19 Cal. Dec. 93.) The amendment makes the section applicable to all corporations. Seizure on execution : Code Civ. Proc. § OSS. SO CIVIL CODE. § 'ASi) Purchaser to transact business of corporation. S 389. The purchaser at the sale must receive a certificate of purchase of the franchise, and be immediately let into the posses- sion of all property necessary for the exercise of the powers and the receipt of the proceeds thereof, and must thereafter conduct the business of such corporation, with all its powers and privi- leges, and subject to all its liabilities, until the redemption of the same, as hereinafter provided. Enacted March 21, 1872. Purchaser may recover penalties, etc. § 390. The purchaser, or his assignee, is entitled to recover any penalties imposed by law and recoverable by the corpora- tion for an injury to the franchise or property thereof, or for any damages, or other cause, occurring- during the time he holds the same, and may use the name of the corporation for the pur- pose of any action necessary to recover the same. A recovery for damages or any penalties thus had is a bar to any subsequent art ion by or on behalf of the corporation for the same. Enacted March 21, 1ST2. Corporation to retain powers after sale. $391. The person, company, or corporation whose franchise is sold, as in this article provided, in all other respects retains i lie same powers, is bound to the discharge of the same duties, and is liable to the same penalties and forfeitures, as before such sale. Amended March 20, L905 ; stats. 1905. p. 409. Note. — § 391. The amendment makes the section applicable to persons and companies as well as to corporations. Redemption. S 392. Redemption from any such sale may be had as pro- vided in the Code of Civil Procedure in the case of redemptions from sales of real estate on execution. Amended March 20, 1905 ; stats. 1905, p. 409. Note. — § 392. The amendment makes applicable to an execu- tion sale of franchises the law of redemption applicable to other sales of real property. Sale under execution, where made. § 393. The sale of any franchise under execution must be made in the county in which the corporation has its principal § 393 civil code. ST place of business, or iii which the property, or some portion I hereof, is situated. Amended March 20, 100"); stats. 1905, p. 409. Note. — § 393. Omits the words "upon which the taxes are paid," that having apparently no relevancy to the section. CHAPTER IV. EXTENSION AND DISSOLUTION OF CORPORATIONS. Sec. 399. Proceedings to disincorporate. [Repealed.] 400. On dissolution, directors to be trustees for creditors. 401. Extension of corporate existence, how made. 4 0L'. How corporations may continue their existence. [Repealed.] 4u::. Title one to apply to all corporations, with certain exceptions. [Repealed.] Proceedings to disincorporate. [Repealed.! § 399. Proceedings to disincorporate. [Repealed March 21, 1905; stats. 1905, p. 563.] Note. — § 399. This section, which purports merely to desig- nate the place in the Code of Civil Procedure where the dissolu- tion of corporations is provided for. does not stale any rule of law and constitutes but an imperfect index to the provisions referred to, and is, therefore, repealed. Involuntary dissolution: Code Civ. Pl'OC, §803. Voluntary dissolution: ('ode Civ. Proc. §§1227-1233. For dissolution of banks, etc., see "Banks and Banking," Appendix. On dissolution, directors to be trustees for creditors. §400. Unless other persons are appointed by the court, the directors or managers of the affairs of a corporation at the time of its dissolution are trustees of the creditors and stockholders or members of the corporation dissolved, and have full power to settle the affairs of the corporation. Amended March 21, 1905; stats. 1905, p. 563. 84 Cal. 358; 1 !al. 119; 101 Cal. 147; 150 Cal. 580, 581. Note. — § 400. The change consists in the substitution of the word "a" for "such" before the word "corporation" in line 2. 88 CIVIL CODE. § 401 Extension of corporate existence, how made. $401. Every corporation formed for a period less than fifty years, may, at any time prior to the expiration of the term of its corporate existence, extend such term to a period not exceed- ing fifty years from its formation. Such extension may be made at any meeting of the stockholders or members called by the directors expressly for considering the subject if voted by stock- holders representing two thirds of the capital stock ; or by two thirds of the members ; or may be made upon the written assent of two thirds of the members or of stockholders representing two thirds of the capital stock. A certificate of the proceedings of the meeting upon such vote, or upon such assent, must be signed by the chairman and secretary of the meeting and a majority <>f the directors, and be filed in the office of the county clerk where the original articles of incorporation were filed, and a certified copy thereof in the office of the secretary of state, and thereupon the term of the corporation is extended for the specified period. . Amended March 21, 1905 ; stats. 1905. p. 5G4. 109 Cal. 582; 122 Cal. 339. Ed. Note. — §401. Section 401 was enacted March 21, 1872; amended 1873-4, p. 209; 1905, p. 564; 1907, p. 344. The amend- ment of 1907 provided that a corporation might extend and renew the term of its corporate existence from the date of such exten- sion. (See § 401, as amended in 1907, following.) In Boca Mill Co. vs. Curry, XXXVI Cal. Dec, p. 261, decided October 8, 1908, the supreme court held the amendment of 1907 to be unconstitu- tional. (Const., art. XII, sec. 7.) Section 401 as it stood pre- vious to amendment, perhaps still in force (see decision). But at the general election held Novemher 3, 1908, an amendment to section 7 of article XII of the constitution was adopted, covering the matter contained in section 401 of the Civil Code as it was amended in 1907. See Constitution, ante. See, also, Appendix, for forms of certificates for extension of corporate existence under section 4 01, Civil Code, and under section 7, article XII, Constitution. §401. Every corporation heretofore or hereafter formed, and existing under the laws of this state, may at any time prior to the expiration of the term of its corporate existence extend such term to a period not exceeding fifty years from the date of such extension. Such extension may be made at any meeting of the stockholders, or members, called by the directors expressly for § 401 CIVIL CODE. SO considering the subject, if voted for by stockholders representing two thirds of the capital stock ; or by two thirds of the members where there is no capital stock; or may be made upon the writ- ten assent of two thirds of the members or of stockholders rep- resenting two thirds of the capital stock. A certificate of such vote or assent shall be signed and sworn to by the president and secretary and by a majority of the directors of the corpora- tion, and filed in the office of the county clerk where the original articles of incorporation were filed, and a copy certified by such clerk shall be filed in the office of the secretary of state, and (hereupon the term of existence of the corporation shall be extended for the period specified in such certificate. The fees for certifying such certificate and filing the same and the cer- tified copy thereof, shall be the same as those prescribed by law for certifying and filing articles of incorporation in such cases. In no event shall such extension be construed to prolong or extend the duration of any franchise or privilege heretofore granted (o any corporation or joint stock company by special legis- lative act, or by the municipal authorities of any county, city, city and qpunty, town, or other political subdivision of this stale, beyond the term fixed by the provisions of the act, ordi- nance or resolution conferring such privilege or franchise, or beyond the term fixed for the maximum period of existence of such corporation or joint stock company by laws in force and governing the formation and organization thereof at (lie time such corporation or joint stock company was formed or organ- ized. Amended March IS, 1907; stats. 1007, p. 014. Ed Note. — Si 101. See note to section 101. ante, as it stood in 1905. See, also. Appendix, for form of certificate of extension of corporate existence under section 7, article' XII, Constitution. How corporations may continue their existence. [Repealed. I § 402. How corporal ions may continue their existence. [Re- pealed March 30, 1874; amendts. 1873-4, p. 209.] Title one to apply to all corporations, with certain exceptions. I Repealed. I S 403. Title ■one to apply to all corporal ions with certain exceptions. [Repealed March 20, 1905; slats. 1905, p. 110.] Note. — See note to § 403 in chapter V. ! H I CIVIL CODE. § 41 13 CHAPTER V. GENERAL PROVISIONS AFFECTING CORPORATIONS. Sec. 403. Title one to apply to all corporations, with certain exceptions. 1<| 4. Power of the legislature to amend or repeal this part, or any title, chapter, article, or section thereof, and to dissolve all corporations created thereunder. Title one to apply to all corporations, with certain exceptions. § 403. The provisions of this title are applicable to every corporation, unless such corporation is excepted from its opera- tion, or unless a special provision is made in relation thereto inconsistent with some provision in this title, in which case the special provision prevails. Enacted March 20, 1905; stats. 1905, p. 410. 109 Cal. 582 ; 122 Cal. 339. Note.- — §§ 403, 404. The amendment of 1905 added a new chapter entitled "General Provisions Affecting Corporations." Said chapter is made up of the old section 403, which stood in a chapter entitled "Extension and Dissolution of Corporations," and of the matter in old section 384, which stood in a chapter entitled "Examination of Corporations." The object of the rear- rangement was the placing of the sections under a more appro- priate chapter heading. t Power of the legislature to amend or repeal this part, or any title, chapter, article, or section thereof, and to dissolve all corporations created thereunder. § 404. The legislature may at any time amend or repeal this part, or any title, chapter, article, or section thereof, and dis- solve all corporations created thereunder; but such amendment or repeal does not, nor does the dissolution of any such corpora- tion, take away or impair any remedy given against any such corporation, its stockholders or officers, for any liability which has been previously incurred. Enacted March 20, 1905 ; stats. 1905, p. 410. 145 Cal. 480. Note. See note to preceding section. § 405 civil code. 91 CHAPTER VI. [Chapter VI added March 21, 1905; stats. L905, p. 630.] FOREIGN CORPORATIONS. Sec. 405. Designation of person on whom process may be served. Service on the secretary of state, when valid. 406. Foreign corporations, statute of limitations in favor of. Proof of corporate existence. Change of designa- tion. 407. Foreign railway corporations, rights of, in this slate 408. Foreign corporations to file certified copies of articles of incorporation. 409. Foreign corporations, fees to be paid by, on filing cer- tified copies of articles of incorporation. 410. Foreign corporations, penalty for failure to file certi- fied copies of articles of incorporation. Designation of person on whom process may be served — Service on the secretary of state, when valid. § 405. Every corporation other than those created by or under the laws of this state must, at the time of filing the cer- tified copy of its articles of incorporation, file in the office of the secretary of state a designation of some person residing within the state upon whom process issued by authority of or under any law of this state may be served. A copy of such designation, duly certified by the secretary of state, is sufficient evidence of such appointment. Such process may be served on the person so designated, or, in the event that no such person is designated, then on the secretary of state, and the service is a valid service on such corporation. Amended March 18, 1907 ; stats. 1907, p. 558. 138 Cal. 738; 145 Cal. 001 ; 146 Cal. 650; 153 Cal. 405; 1 Cal. App. 719, 720. 721; VII Cal. App. Dec. 540, 541. Note. — §§ 405, 406, 407. These sections codify the statute of 1871-2, page 826, as amended, 1899, page 111, and section 1, statute of 1880, page 21. Foreign corporations, statute of limitations in favor of — Proof of corporate existence — Cha'nge of designation. §406. Every corporation which complies with (he provisions of I his chapter is thereafter entitled to the benefit of the laws of this state limiting the time for the commencement of civil 92 civil code. § 400 .hi ions, but no corporation not created by or under (he laws of this state is entitled to the benefit thereof, nor can any such corporation maintain or defend any action or proceeding in any court of this state until the corporation has complied with the provisions of the preceding section. In any action or proceeding instituted against any body styled as a corpora- tion, but not created by nor under the laws of this stale, evi- dence that such body has acted as a corporation, or employed methods usually employed by corporations, must be received by the court for the purpose of proving the existence of such cor- poration, the sufficiency of such evidence to be determined by the court with like effect as in other cases. Every corporation which has complied with the laws then in force, requiring it to make and file a designation of the person upon whom process against it may be served, need not make or file any further designation. Any designation heretofore or hereafter made may be revoked by the filing by the corporation with the secretary of state of a writing stating such revocation. Within forty days after the death or removal from the state of any person designated by the corporation, or after the revocation of the designation, the corporation must make a new designation, or be subject to the provisions and penalties of this chapter. Enacted March 21, 1905; stats. 1905, p. 630. 153 Cal. 537; VII Cal. App. Dec. 540. Note. — See note to § 4 05. Foreign railway corporations, rights of, in this state. §407. Every railway or other corporation organized for the purpose of carrying freight or passengers under or by virtue of the laws of the United States, or of any state or territory thereof, may build railroads, exercise the right of eminent domain, and transact any other business which it might do if it were created and organized under or by virtue of the laws of this state, and has the same rights, privileges, and immunities, and is subject to the same laws, penalties, obligations, and bur- dens as if created or organized under and by virtue of the laws of this state. Nothing contained in this section shall be con- strued to exempt any corporation from any duty or liability imposed upon it by any of the provisions of this chapter. Enacted March 21, 1905; stats. 1005, p. 631. VIII Cal. App. Dec. 272, 273. Note. — See note to § 405. § 408 CIVIL CODE. Oft Foreign corporations to file certified copies of articles of incor- poration. § 408. Every corporation organized under the laws of another state, territory, or of a foreign country, which is now doing business in this state, or is maintaining an office herein, or which shall hereafter do business in this state or maintain an office herein, or which shall enter this state for the purpose of doing business herein, must file in the office of the secretary of state of the State of California a certified copy of its articles of incorporation, or of its charter, or of the statute or statutes, or legislative, or executive, or governmental act or acts creating it, in cases where it has been created by charter, or statute, or legislative, or executive, or governmental act, duly certified by the secretary of state, or other officer authorized by the law of the jurisdiction under which such corporation is formed to cer- tify such copy, and a certified copy thereof, duly certified by the secretary of state of this state, in the office of the county clerk of the county where its principal place of business is located, and also where such corporation owns property. Amended March 18, 1907 ; stats. 1907, p. 559. 153 Cal. 535; VIII Cal. App. Dec. 274. Note. — §§ 408, 409, 410. These sections codify the statute of 1901, page 108. Foreign corporations, fees to be paid by, on filing certified copies of articles of incorporation. § 409. For tiling and issuing a certified copy as required in section four hundred and eight of this code, corporations formed under the laws of another state, or of a territory, or of a foreign country, must pay the same fees as are paid by corporations formed under the laws of this state. Enacted March 21, 1905 ; stats. 1905, p. 631. Note. — See note to § 408. Foreign corporations, penalty for failure to file certified copies of articles of incorporation. § 410. Every corporation organized under the laws of another state, territory, or of a foreign country, which shall neglect or fail, within ninety days from the taking effect of this section, to comply with the conditions of sections four hundred and eight and four hundred and nine of this code, shall be subject to a fine of not less than five hundred dollars, to be recovered 94 CIVIL CODE. S 410 in any court of competent jurisdiction ; and it is hereby made llie duty of i lie secretary of state, as he may be advised thai corporations are doing business in contravention of sections four hundred and eight and four hundred and nine of this code, to report the fact to the governor, who shall instruct the district attorney of the county wherein such corporation has its prin- cipal place of business, or the attorney general of the state, or both, as soon as practicable, to institute proceedings to recover the fine provided for in this section, and the amount so recovered must be paid into the state treasury to the credit of the general fund of the state; in addition to which penally, no foreign cor- poration which shall fail to comply with sections four hundred and eight and four hundred and nine of this code can maintain any suit or action in any of the courts of this state until it has complied with said sections; provided, that any such corporation which, prior to the 8th day of March, 1901, shall have complied with the provisions of the act entitled "An act to amend 'An acl in relation to foreign corporations." approved April 1. 1872," approved March 17, 1899, is exempted from the provisions of this section and the two sections next preceding. Enacted March 21, 190."; stats. 1905, p. 631. 153 Cal. 535, 53G. Note. — See note to § 4 08. Foreign insurance corporations: See. also, Pol. C. § <*>li">. TITLE II. Insurance Corporations. Chap. I. General provisions. §§ 414-421. II. Fire and marine insurance corporations. §§ 424-432. 111. Mutual life, health, and accident insurance corpora- tions. §§ 437-452. IV. Mutual benefit and life associations. $$ 452a-453. V. To discover fire and save property and human lite from destruction thereby. §§ 453a-453c. VI. Life, health, accident, and annuity or endowment insurance on the assessment plan. SS 453d-453p. Sec, , 414. 415. 416. 417. US. 419. § 414 CIVIL CODE. 95 CHAPTER I. GENERAL PROVISIONS. See. also, Pol. C. § 5SS ct seq., and "Insurance," statutes al large. Appendix, Subscriptions to capital stock opened, and how col- lected. Purchase and conveyance of real estate. Policies, how issued and by whom signed. Dividends, of what, and when declared. Directors liable for loss on insurance in certain cases. Capital to be at least two hundred thousand dollars. [Repealed.] 420. Exception, capital of one hundred thousand dollars. [Repealed.] 421. Investment of capital. [Repealed.] 421. Capital and accumulations, how invested. Subscriptions to capital stock opened, and how collected. § 414. After the secretary of state issues the certificate of incorporation, as provided in article one, chapter one, title one, of this part, the directors named in the articles of incorporation must proceed in the manner specified, or in their by-laws, or it' none, then in such manner as they may by order adopt, to open books of subscription to the capital stock then unsubscribed, and to secure subscriptions to the full amount of the fixed capital ; to levy assessments and installments thereon, and to collect the same, as in chapter two of title one provided. Enacted March 21, 1872. Purchase and conveyance of real estate. §415. No insurance corporation may purchase, hold or con vey real estate, except as hereinafter set forth, to wit : 1. The building in which it has its principal office and the land upon which it stands. 2. Also, such as may be requisite for its accommodation in the convenient transaction of its business. 3. Also, such as may be conveyed to it, or to any person for it, by way of mortgage, or in trust or otherwise,to secure or pro- vide for the payment of loans previously contracted or for moneys due. 96 CIVIL CODE. § 415 4. Also, such as may be purchased at sales upon deeds of trust, or judgments obtained or made for such loans or debts. 5. Also, such as may be conveyed to it in satisfaction of debts previously contracted in the course of its dealings. All such real estate, mentioned in subdivisions three, four and five, so acquired, which is not requisite for the accommodation of such corporation in the transaction of its business, must lw sold and disposed of within five years after such corporation acquired title to the same. Amended February 24, 1905 ; stats. 1905, p. 21. Policies, how issued and by whom signed. § 416. All policies made by insurance corporations must be subscribed by the president or vice-president, or in case of the (loath, absence, or disability of those officers, by any two of the directors, and countersigned by the secretary of the corporation. All such policies are as binding and obligatory upon the corpora- tion as if executed over the corporate seal. Enacted March 21, 1872. Dividends, of what, and when declared. § 417. The directors of every insurance corporation, at such limes as their by-laws provide, must make, declare, and pay to the stockholders dividends of so much of the net profits of the corporate business and interest on capital invested as to them appears advisable; but the moneys received and notes taken for premium on risks which are undetermined and outstanding at the time of making the dividend must not be treated as profits, nor divided, except as provided in chapter two of this title. Enacted March 21, 1872. Directors liable for loss on insurance in certain cases. S418. If any insurance corporation is under liabilities for losses to an amount equal to its capital stock, and the president or directors, after knowing the same, make any new or further insurance, the estates of all who make such insurance, or assent thereto, are severally and jointly liable for the amount of any loss which takes place under such insurance. Enacted March 21. 1872. Capital to be at least two hundred thousand dollars. [ Repealed. I § 419. Capital to be at least two hundred thousand dollars. [Repealed March 8, 1907; stats. 1907, p. 141.] § 420 CIVIL CODE. 07 Exception, capital of one hundred thousand dollars. [Repealed.] § 420. Exception, capital of one hundred thousand dollars. [Repealed March S, 1007; stats. 1007, p. 141.] Investment of capital. [Repealed.] §421. Investment of capital. [Repealed March 18, 1007; stats. 1007, p. 507.] Note. — § 421. There being two sections 4 21, referring to the same subject, one approved March 3, 1905, and the other approved March 21, 1905, the former was repealed and the latter left intact. Capital and accumulations, how invested. § 421. Companies organized under the laws of this state for the transaction of business in any kind of insurance, may invest their capital and accumulations in the following Darned securi- ties : 1. Id the purchase of, or loans upon interest-bearing bonds of the United States government. 2. In the purchase of, or loans upon interest-bearing bonds of any of the states of the United States, not in default for interest on such bonds. o. In the purchase of, or loans upon interest-bearing bonds of any of the counties and incorporated cities and towns and duly organized school districts of any state or territory of the United States not in default for iuterest on such bonds. 1. In loans upon unincumbered real property, no loan to exceed sixty per cent of the market value of any piece of real cslatc to be taken as security. 5. Corporations engaged in the business of insuring titles to real estate may. after the investment of one hundred thousand dollars in the manner provided for in subdivisions one, two, three and four of this section, invest an amount not exceeding fifty per cent of their subscribed capital stock, in the prepara- tion or purchase of the materials or plant necessary to enable them to engage in such business ; and such material or plant shall be deemed an asset valued at the actual cost thereof, in all statements and proceedings required by law for the ascer- tainment and determination <>f the condition of such corpora- tions. -CL, 98 CIVIL CODE. § 421 6. Companies organized for and engaged in the business of fire, life, health, accident and marine insurance, may, after the investment of two hundred thousand dollars, and companies duly formed or organized for the transaction of business in any other kind of insurance may, after the investment of one hundred Ihousand dollars, in the manner provided in subdivisions one, two, three and four of this section, invest the balance of their capital and any accumulations in the purchase of or loans upon the stock of any corporation (except mining companies) organ- ized and carrying on business under the laws of the State of California which have at the time of investment a market value of not less than their paid-in value, and which are rated as first- class securities, or in interest-bearing bonds of any corpora- tion of any state or territory of the United States not in default of interest ; provided, that a two-thirds vote of all the directors of such corporations shall approve such investment. It shall be the duty of the officers of such corporation to report quarterly during the months of January, April, July and October of each year to the insurance commissioner a list of such investments so made by them, and the insurance commissioner may, if such investments, or any of them, seem injudicious to him, require the sale of the same. But no investment in the securities named iu subdivisions one, two, three and six of this section must be made in an amount exceeding the market value of such securities, at the date of such investment. 7. Life insurance companies may loan upon their own policies ; provided, that the amount so loaned upon each policy shall not exceed the reserve against said policy at the time said loan is made; provided farther, that no policy loans whatever shall ever be used as security which may be deposited with the insur- ance commissioner under section six hundred and thirty-four of the Political Code; and provided further, that whenever any such loan in any amount is made on a policy registered with the insurance commissioner under said section six hundred and thirty-four of the Political Code, such registration shall be forth- with canceled. Amended March 22, 1907; stats. 1907, p. 890. § H'l CIVIL CODE. 99 CHAPTER II. FIRE, MARINE, AND TITLE INSURANCE CORPORATIONS. (See, also, Pol. C. § 5SS ct aeq.j see "Insurance," statutes at large, Appendix, for form of fire policy.) Sec. 424. Payment of subscriptions. Capital to be all paid up in twelve months. 425. Certificate of capital stock paid up to be flled, and when. 426. Property which may be insured. 427. Funds may be invested, how. [Repealed.] 428. Limit of risk. 429. Amounts to be reserved before making dividends. 430. Reservation by companies with less than $200,000 capital. 4 31. Amounts to be reserved by life insurance companies. [Repealed.] 432. Corpoi*ations for insuring titles to real estate. Payment of subscriptions — Capital to be all paid up in twelve months. § 424. The entire capital stock of every fire or marine insur- ance corporation must be paid up in cash within twelve months from the filing of the articles of incorporation, and no policy of insurance must be issued or risk taken until twenty-five per cent of the whole capital stock is paid up. Enacted March 21, 1872. Certificate of capital stock paid up to be filed, and when. § 425. The president and a majority of the directors must, within thirty days after the payment of the twenty-five per cent of the capital stock, and also within thirty days after the payment of the last installment or assessment of the capital stock limited and fixed, prepare, subscribe, and swear to a cer- tificate setting forth the amount of the fixed capital and the amount thereof paid up at the times respectively in this section named, and file the same in the office of the county clerk of the county where the principal place of business of the corporation is located, and a duplicate thereof, similarly executed, with the insurance commissioner. Enacted March 21, 1872. Property which may be insured. § 426. Every corporation formed for fire or marine insurance, or both, may make insurance on all insurable interests within 100 CIVIL CODE. § 42G the scope of its articles of incorporation, and may cause itself to be reinsured. Enacted March 21. 1872. Funds may be invested, how. [Repealed.! § 427. Funds may be invested, bow. [Repealed March 3, and 21, 1905; stats. 1905, pp. 34 and 628.] 123 Cal. 203. Limit of risk. § 428. Fire and marine insurance corporations must never take. on any one risk, whether it is a marine insurance or an insur- ance against fire, a sum exceeding one tenth part of their capital actually paid in, and intact at the time of taking such risk, with- out at once reinsuring the excess above one tenth. Amended March 21, 1905; stats. 1905, p. 570. Note. — § 42S. The change consists in the insertion of the words "at once" before "reinsuring." Amounts to be reserved before making dividends. § 429. No corporation formed subsequent to April first, eighteen hundred and seventy-eight, under the laws of this state and transacting fire, marine, inland navigation insurance busi- ness, or insurance provided for by section four hundred and twenty (420) of this code, except insurance of the title to real property, must make any dividends except from profits remain- ing on hand after retaining unimpaired : 1. The entire subscribed capital stock ; 2. All the premiums received or receivable on outstanding marine or inland risks, except marine time risks ; 3. A fund equal to one half of the amount of all premiums on all other risks not terminated at the time of making such divi- dend ; 4. A sum sufficient to pay all losses reported or in course of settlement, and all liabilities for expenses and taxes. Amended March 5, 1887 ; stats. 1887, p. 23. In general. Declaring dividends : See Civ. C. § 309 ; as to insurance companies, see, also, § 417. Reservation by companies with less than $200,000 capital. § 430. No fire or marine insurance corporation, with a sub- scribed capital of less than two hundred thousand dollars, must § 430 CIVIL CODE. 101 declare any dividends, except from profits remaining on hand after reserving : 1. A sum necessary to form, with the subscribed capital stock, Llie aggregate sum of two hundred thousand dollars; 2. All the premiums received or receivable on outstanding marine or inland risks, except marine time risks ; 3. A fund equal to one half the amount of all premiums on fire risks and marine time risks not terminated at the time of making such dividend ; 4. A sum sufficient to pay all losses reported or in course of settlement, and all liabilities for expenses and taxes. Enacted March 21, 1S72. 110 Cal. 4G0. Amounts to be reserved by life insurance companies. [Repealed. | § 431. Amounts to be reserved by life insurance companies. [Repealed March 21, 1905; stats. 1005, p. 571.] See note following § 452. Corporations for insuring titles to real estate. § 432. Corporations transacting business in insuring titles to real estate shall annually set apart a sum equal to twenty-five per cent of their premiums collected during the year, which sum shall be allowed to accumulate until a fund shall have been created amounting to ten per cent of the subscribed capital stock. Such fund shall be maintained as a further security to policy- holders, and shall be known as the surplus fund ; and if at any time such fund shall he impaired by reason of a loss, the amount by which it may be impaired shall be restored in the manner hereinabove provided for its accumulation. The reporting of a loss shall be deemed an impairment of such fund for the pur- poses of this section. Such corporation must not make any divi- dends except from profits remaining on hand after retaining unimpaired : 1. The entire subscribed capital stock; 2. The amount owing to the surplus fund, under the pro- visions of this section ; 3. A sum sufficient to pay all losses reported, or in course of settlement, which shall be in excess of the surplus fund, and all liabilities for expenses and taxes. Enacted March 5, 1887; stats. L887, p. 23. 102 civil code. § 437 CHAPTER III. MUTUAL LIFE, HEALTH, AND ACCIDENT INSURANCE CORPORATIONS. (Insurance commissioner: See Pol. C. §588 et seq.; mutual fire insurance: See "Insurance," statutes at large, Appendix.) Sec. 437. Capital stock. Guarantee fund. 438. Of what guarantee fund shall consist. ■439. What constitutes, and deficiency in fixed capital. 440. Declaration of fixed capital to be filed. 441. Guarantee notes and interest, how disposed of. 1 1 2. Insured to be entitled to vote, when. 443. Number of directors may be altered, how. 4 44. Investment of capital stock, in what securities. [Repealed.] 4 4 5. Limitations to the holding of stock and in other particulars may be provided for in by-laws. 446. Premiums, how payable. 447. Insurance corporations to furnish data to insurance commissioner. Employment of actuary. [Repealed.] 44 8. No stamp required on accident insurance contracts. [Repealed.] 4 19. Valuation of policies. Retaliatory provisions. [Re- pealed.] 450. Policy to contain what provisions. 451. Fraternal societies exempt from insurance laws. [Repealed.] 452. Dividends, how and when made. Capital stock — Guarantee fund. § 437. Every corporation formed for the purpose of mutual insurance on the lives or health of persons, or against accidents to persons for life or any fixed period of time, or to purchase and sell annuities, must have a capital stock of not less than two hundred thousand dollars. It must not make any insurance upon any risk or transact any other business as a corporation until its capital stock is fully paid up in cash, nor until it lias also obtained a fund, to be known as a "guarantee fund," of not less than two hundred and fifty thousand dollars, as is here- inafter provided. If more than the requisite amount is sub- scribed, the stock must be distributed pro rata among the subscribers. Any subscription may be rejected by the board of § 437 CIVIL CODE. 103 directors or the committee thereof, either as to the whole or any part thereof, and must be, so far as rejected, without effect, nothing in this section shall be deemed to contravene any of the provisions of section four hundred and fifty-one. Amended March 18, 1905; stats. 1905, p. 183. 121 Cal. 320. Of what guarantee fund shall consist. § 438. The guarantee fund mentioned in the preceding sec- tion must consist of the promissory notes of solvent parties, approved by the board of directors and by each other, payable to the corporation or its order, and at such times, in such modes, and in such sums, with or without interest, and conformable in all other respects to such requirements, as the board of direct- ors prescribe ; but the amount of the notes given by any one person must not exceed in the whole the sum of five thousand dollars, exclusive of interest. Such notes must be payable abso- lutely and at the option of the corporation ; they must be negotiable, and may be indorsed and transferred, or converted into cash, or otherwise dealt with by the corporation, at its discretion, without reference to any contingency of losses or expenses. Such notes, or the proceeds thereof, must remain with the corporation as a fund for the better security of persons dealing with it, and constitute the assets of the corporation, liable for all its debts, obligations, and indebtedness next after its assets from premiums and other sources, exclusive of capital stock, until the net earnings, over and above its expenses, losses, and liabilities, shall have accumulated in cash, or securities in which the net earnings have been invested, to a sum which, with I he capital stock, is equal to the aggregate of the original amounts of the guarantee fund and of the capital stock. Enacted March 21, 1872. What constitutes, and deficiency in fixed capital. § 439. The sum accumulated as provided in the preceding section, together with the capital stock, shall become and remain the fixed capital of the corporation, not subject to division among the stockholders or parties dealing with it, or to be expended in any manner otherwise than may be required in payment of the corporation's debts and actual expenses, until the business of the corporation is closed, its debts paid, and its outstanding 101 CIVIL CODE. § 430 policies ami obligations of every kind canceled or provided for; and if from any cause a deficiency at any time occurs in such fixed capital, no further division of profits must take place until such deficiency has been made up. Enacted March 21, 1872. Declaration of fixed capital to be filed. § 440. Whenever the fixed capital of the corporation is obtained as hereinbefore provided, the president of the corpora- tion and its actuary, or its secretary if there is no actuary, must make a declaration in writing, sworn to before some notary public, of the amount of such fixed capital, and of the particular kinds of property composing the same, with the nature and amount of each kind, which must be filed with the original articles of incorporation, and a copy, certified by the county clerk, must be published for at least four successive weeks, in a newspaper published in the county where the prin- cipal business of the corporation is situated. Upon the filing of such declaration the guarantee fund is discharged of its obliga- tions, and all notes of the fund remaining in the control of the corporation, and not affected by any lien thereon, or claim of that nature, must be surrendered by it to the makers thereof, respectively, or other parties entitled to receive the same. Enacted March 21, 1872. Guarantee notes and interest, how disposed of. §441. Until the guarantee fund is discharged from ils obliga- tions, as provided in the preceding section, mi note must lie with- drawn from the fund unless another note of equal solvency is substituted therefor, with the approval of the board of directors. The corporation must allow a commission, not exceeding five per cent per annum, on all such guarantee notes while outstand- ing, and also interest on all moneys paid on such notes by the parties liable thereon, at the rate of twelve per cent per annum, payable half-yearly until repaid by the corporation, unless the current rate of interest is different from this amount, in which case the rate payable may, from time to time, at intervals of not less than one year, be increased or reduced by the board of directors, so as lo conform to the currenl rate. Amended March 30, L874 ; amendts. 1873-4, \>. 210. § 442 civil code. LOO Insured to be entitled to vote, when. §442. After the filing of the declaration of the tixed capital, as in this article provided, the holders of policies of life insur- ance for the term of life, on which the premiums are not in default, may vote at the election of directors, and have one vote for each one thousand dollars insured by their policies, respec- tively. Enacted March 21, 1872. Number of directors may be altered, how. §443. The number of directors specified in the articles of incorporation may be altered from time to time during the exist- ence of the corporation by resolution, at the annual meet inn of a majority of those entitled to vote at the election of directors, Imt the number must never be reduced below live. Enacted March 21, 1872. Investment of capital stock, in what securities. [Repealed.! § 444. Investment of capital stock, in what securities. [Re- pealed March 22, 1907; stats. 1907, p. SS9.] Limitations to the holding of stock and in other particulars may be provided for in by-laws. § 445. The corporation may, by its by-laws, limit the num- ber of shares which may be held by any one person, and make such other provisions for the protection of the stockholders and the better security of those dealing with it as to a majority of the stockholders may seem proper, not inconsistent with the pro- visions of this title or part. Enacted .March 21, 1872. Premiums, how payable. § 446. All premiums must be payable wholly in cash, or one half or a greater proportion in cash, and the remainder in promissory notes bearing interest, as may be provided for by the by-laws. Agreements and policies of insurance made by the corporation may be upon the basis of full or partial participation in the profits, or without any participation therein, as may be provided by the by-laws and agreed between the parties. Enacted March 21, 1872. Insurance corporations to furnish data to insurance commis- sioner — Employment of actuary. [Repealed.] § 447. Insurance corporations to furnish data to insurance 106 CIVIL CODE. 8 447 commissioner. Employment of actuary. [Repealed March 8, 1907; stats. 1907, p. 141.] No stamp required on accident insurance contracts. IRepealed.J § 448. No stamp required on accident insurance contracts. [Repealed March 21, 1905; stats. 1905, p. 571; repealed March 8, 1907; stats. 1907, p. 141.] Note. — § 448. This section exempted accident insurance com- panies from stamp duties, but as there are no such duties under the law as it now stands, the section was unnecessary. Valuation of policies — Retaliatory provisions. [Repealed.] §449. Valuation of policies. Retaliatory provisions. [Re- pealed March 8, 1907; stats. 1907, p. 141.] Policy to contain what provisions. § 450. Every contract or policy of insurance hereafter made by any person or corporation organized under the laws of this state, or under those of any other state or country, with and upon the life of a resident of this state, and delivered within this state, shall contain, unless specifically contracted between the insurer and the insured for tontine insurance, or for other term or paid-up insurance, a stipulation that when, after three full annual premiums shall have been paid on such policy, it shall cease or become void solely by the non-payment of any premium when due, its entire net reserve, by the American Experience Mortality, and interest at four and one half per cent yearly, less any indebtedness to the company on such policy, shall be applied by such company as a single premium, at such company's published rates in force at the date of original policy, but at the age of the insured at time of lapse, either to the purchase of non-participating term insurance for the full amount insured by such policy, or upon the written application by the owner of such policy, and the surrender thereof to such Com- pany within three months from such non-payment of premium, to the purchase of a non-participating paid-up policy, payable at the time the original policy would be payable if continued in force ; both kinds of insurance to be subject to the same con- ditions, except as to payment of premiums, as those of the original policy. It may be provided, however, in such stipula- tion, that no part of such term insurance shall be due or pay- able, unless satisfactory proofs of death be furnished to the § 450 CIVIL CODE. LOT insuring company within one year after death, and that if death shall occur within three years after such non-payment of pre- mium, and during such term of insurance, there shall be deducted from the amount payable the sum of all the premiums that would have become due on the original policy if it had continued in force. If the reserve on endowment policies be more than enough to purchase temporary insurance, as aforesaid, to the end of the endowment term, the excess shall be applied to the purchase of pure endowment insurance, payable at the end of the term, if the insured be then living. If any life insurance corporation or company shall deliver to any person in this state, a policy of insurance upon the life of any person residing in this state, not in conformity with the provisions of this section, the right of such corporation or company to transact business in this state shall thereupon and thereby cease and terminate, and the insurance commissioner shall immediately revoke the certifi- cate of such corporation or company authorizing it to do business in this state, and publish such revocation, daily, for the period of two weeks, in tvvo daily newspapers, one published in the city of San Francisco and the other in the city of Sacramento. Amended April 26, 18S0 ; amendts. 1880, p. 91. 123 Cal. 679; 129 Cal. 459; 139 Cal. 335. Fraternal societies exempt from insurance laws. [Repealed.] S 451. Fraternal societies exempt from insurance laws. [Re- pealed March 8, 1907; stats. 1907, p. 141.1 See Pol. C. § 630. 148 Cal. 478. Dividends, how and when made. § 452. No corporation formed under the laws of this state, and transacting life insurance business, must make any divi- dends, except from profits remaining on hand after retaining unimpaired : 1. The entire capital stock ; 2. A sum sufficient to pay all losses reported or in course of settlement, and all liabilities for expenses and taxes ; 3. A sum sufficient to reinsure all outstanding policies, as ascertained and determined upon the basis of the American Ex- I (l "> CIVIL CODE. § 452 perience Table of Mortality, and interest at the rate of four and one half per cent per annum. Enacted March 21, 1905 ; stats. 1905, p. 571. Note. — §§ 431, 452. Old section 431, which dealt with the amounts to be received by life insurance companies, was in a chapter entitled, "Fire, marine and title insurance corporations." It is transferred to a more appropriate chapter, and numbered 152. CHAPTER IV. [Chapter IV added March 20, 1905 ; stats. 1005, p. Ill] MUTUAL BENEFIT AND LIFE ASSOCIATIONS. (Mutual fire insurance companies: See "Insurance," statutes at large, Appendix.) Sec. 452a. Formation of the association. 453. Levying of assessments. By-laws which may be made. Formation of the association. § 452a. Associations of not exceeding one thousand persons may be formed for the purpose of paying to the nominee of any member a sum, upon the death of the member, not exceeding three dollars for each member of the association. Such asso- ciation may be formed by filing articles of incorporation in the office of the clerk of the county in which the principal place of business is situated and a certified copy of such articles of incor- poration, duly certified by the county clerk, in the office of the secretary of state. Such articles must state the name of the corporation, its general purposes, its principal place of business, its term of existence, not exceeding fifty years, the names and residences of the directors selected or appointed to serve for the first year, and must be signed and verified as required by sections two hundred and ninety-two and five hundred and ninety-four. Enacted March 20, 1905 ; stats. 1905, p. 411. Note. — §§ 452a, 453. The statute of 1873-4, page 745, as amended by the statutes of 1880, page 25, and 1901, page 6, relating to mutual benefit associations, is codified in the above sections, and a new chapter, entitled "Mutual benefit and life associations," is added, to consist of sections 452a and 453. § 453 civil conrc. 100 Levying of assessments — By-laws which may be made. § 453. Each association provided for in this chapter may, on the death of a member, levy an assessment on the surviving members of not exceeding three dollars for each member, and col- lect and pay the same to the nominee of such decedent, and may also provide for the payment of such annual payments by mem- bers as may be deemed just, but no member must be subject to any annual assessment in excess of that established when he joined the association. The association may make such by-laws not inconsistent with the laws of the state as may be necessary for its government and the transaction of its business; may, by ils name, sue and be sued; loan such funds as it may have on hand; and own sufficient real estate for its business purposes and such as it may be necessary to purchase on foreclosure of its mortgages. Enacted March 20, 1905; stats. 1005, p. 411. Note. — See note to § 452a. CHAPTER V. [Chapter V added March 21, 1905; stats. 1905, p. 571.] CORPORATIONS TO DISCOVER FIRE AND SAVE PROPERTY AND HUMAN LIFE FROM DESTRUCTION THEREBY. Sec. 453a. Powers of the corporation. 153&. Right of way of corporation and its officers when tunning to fires. 453c. Yearly meeting of corporation, notice to be given thereof, and proceedings which may be authorized thereat. Powers of the corporation. § 453a. Any corporation of underwriters heretofore organ- ized and now existing, or which may be hereafter organized under the laws of this state, for the purpose of discovering and preventing fires and of saving property and human life from conflagration, and doing business within any municipal cor- poration of this state, has power, at its own proper cost and expense, to maintain a corps of men, with proper officers, equipped with the necessary machinery and apparatus therefor, whose duty il is, so far as practicable, to discover and prevent L10 (JIVIL CODE. § 453« fires and save property and human life from conflagration; and for the effective discharge of such duties, authority is hereby granted such corps to enter any building on lire, or in which property is on fire, or which such corps or any officer thereof deems to be immediately exposed to any existing fire, or in danger of taking fire from a burning building, and to remove or otherwise save and protect from conflagration or damage by water any property, during and immediately after such fire. Nothing in this chapter must be so construed as in any degree to lessen, impair, or interfere with the powers, privileges, duties, or authority of the regular fire department of such municipality ; nor can any act of such corps justify any owner of any build- ing or property in abandoning such building or property. Enacted March 21, 1905; stats. 1905, p. 571. Note. — §§ 453a, 453fc, 453c. The statute of 1875-6, page 689, concerning the powers of underwriters, as amended by the statute of 1897, page 223, is codified in the sections above named, a new chapter being added, entitled "Corporations to discover fire, and to save property and human life from destruction thereby," to consist of sections 453a, 453&, and 453c. Right of way of corporation and its officers when running to fires. § 453fo. Such corporation, with its officers and cotps, when running to a fire with its horses, vehicles, and salvage appa- ratus, has the same right of way as is or may be bestowed by any ordinance of the municipality or law of this state upon the regular fire department of the municipality wherein such corporation is acting ; but the rights of such fire department must always be paramount to the rights of such corporation. All ordinances now existing or which may hereafter be passed by the municipal authorities of any city and county, or of any incorporated city or town wherein such a corporation may carry on business, and all laws of this state applicable to such city and county, or city or town, for the conviction or punishment of any person or persons willfully or carelessly obstructing the progress of the apparatus of the fire department of such city and county, or city or town, while going to a fire, or of any person or persons willfully or carelessly injuring any animal or property of said fire department, are equally applicable to any person or persons willfully or carelessly obstructing the progress § 4536 CIVIL CODE. UI of the apparatus of such corporation while going to a tire, and to any person or persons who willfully or carelessly injures any animal or property of such corporation ; and said laws and ordi- nances, and their penalties, may be enforced in the same courts and in the same manner, and with equal force and effect, as in the case of the fire department. Enacted March 21, 1905 ; stats. 1905, p. 572. Note. — See note to § 453«. Yearly meeting of corporation, notice to be given thereof, and proceedings which may be authorized thereat. § 453c. In the mouth of July, in every year, there must be held a meeting of all corporations created for the purposes specified in this chapter; of which ten days' previous notice must be inserted in at least one daily newspaper published in the municipality where said corporation is organized or estab- lished, at which meeting each insurance company, corporation, association, underwriter, agent, person, or persons doing a fire insurance business in said municipality, whether members of said corporation or not, shall have a right to be represented, and shall be entitled to one vote. A majority of the whole num- ber so represented has power to decide upon the question of sustaining the fire patrol organized by corporations heretofore created, or that may be hereafter created, and fixing the max- imum amount of expenses which may be incurred therefor during the fiscal year next to ensue, which amount must in no case exceed two per centum of the aggregate premiums returned as received, as provided in this section, and the whole of such amount, or so much thereof as may be necessary, may be assessed upon all insurance companies, corporations, associa- tions, underwriters, agents, person, or persons who assume risks and accept premiums for fire insurance in said municipality, as hereinbefore mentioned, in proportion to the several amounts of premiums returned, as received by each, as hereinafter pro- vided, and such assessment is collectible by and in the name of said corporation, in any court of law in the State of Cali- fornia having jurisdiction, in such manner and at such time or times as said corporation may determine. In order to pro- vide for the payment of persons employed by said corporation, and to maintain suitable rooms, and apparatus for saving life and property contemplated, said corporation is empowered to 112 CIVIL CODE. § 453c require a statement (o be furnished, semi-annually, by all insur- ance companies, corporations, associations, underwriters, agents, or persons, of the aggregate amount of premiums received for insuring property in the municipality where said corporation is organized or established, for and during the six months next preceding the first day of July and the first day of January of each year, which statement must be sworn to by the president or secretary of the corporation or association, or by the agent or person so acting or effecting such insurance in said munici- pality, and must be handed to the secretary of said corpora- tion heretofore created or hereafter to be created under the pro- visions of this chapter within ten days after the first day of July and the first day of January of each year. Said secre- tary must, within the ten days aforesaid, by written or printed demand signed by him, require from every insurance company, corporation, association, underwriter, agent, or person engaged in the business of fire insurance in the municipality where said corporation is organized or established, the statement herein- before provided for. Such demand may be delivered personally at the office of such insurance company, corporation, association, underwriter, agent, or person within said municipality, and every officer of such insurance company, corporation, associa- tion, and every such underwriter, agent, or person who, for fifteen days after said demand, neglects to render the statement herein provided for, forfeits fifty dollars for the use of said corporation, and also forfeits for its use twenty-five dollars in addition for every day he so neglects after the expiration of the said fifteen days, and such additional penalty may be computed and collected up to the time of the trial of any action brought for the recovery thereof. The penalty herein provided for may be sued for and collected, with costs, in any court of law within the State of California having jurisdiction, by and in the name of said corporation. Enacted March 21, 1905 ; stats. 1905, p. 572. Note. — See note to § 453a. § 453(7 civil code. 113 CHAPTER VI. [Chapter VI added March 20, 1905; stats. 1905, p. 418.] LIFE, HEALTH, ACCIDENT, AND ANNUITY OR ENDOW- MENT INSURANCE ON THE ASSESSMENT PLAN. (Insurance of live stock on assessment plan: See "Insur- ance," statutes at large, Appendix.) Sec. 4 53d. Contracts which may be made by, defined. 453e. Formation of corporations; issuing of contracts; investments. I. ",:',/' Pre-existing corporations, right of to reincorporate. \~>'ig. Contracts of insurance, contents and effect of. 453/i. Reserve and emergency fund. 4 53J. Foreign corporations, conditions precedent to doing business in this state. 15 3./. Limitations upon right to issue contracts of insurance. 453fc. Exemptions from attachment and execution. 453/. Statements to be filed with the insurance commis- sioner ; proceedings to be taken by him thereon. 453m. Lapsing of policies, when forbidden. 453w. Fees and penalties. 453o. Insurance commissioner to present bills for certain expenses. I53p. Exemption of fraternal societies from this chapter. Contracts which may be made by, defined. S 453d. Every contract whereby a benefit may accrue to a party or parties therein named upon the death or physical dis- ability of a person insured thereunder, or for the payment of any .sums of money dependent in any degree upon the collection of assessments or dues from persons holding similar contracts, is deemed a contract of mutual insurance upon the assessment plan. Such contracts must show that the liabilities of the insured thereunder are not limited to fixed premiums. Enacted March 20, 1905 ; stats. 1905, p. 418. Note.— §§ 453d, 453e, 453f, 453 transacting business iu this state, comply with the provisions of sections four hundred ami five and una- hundred and eight of this code, and deposit with the insurance commissioner of this state a certified copj its charter or other instrument required by its home author- ities: a statement under oath, oi its president or secretary, of iis business for the preceding year, in such form as may be required by the insurance commissioner of this state: an appointment of a general agent, service upon whom hinds the corporation : a certificate that for the next preceding twelve months it has paid in full the maximum amount named in its contract of insurance: a certificate from the proper officer of its state or government that like corporations of this state are legally entitled to do busi- ness in such state or country: copies of its contracts of insur- ance and applications, which must show that the liabilities of its members are not limited to fixed premiums: and evideuce. satisfactory to the insurance commissioner, that the corporation has accumulated a fund equal to that required of like corpora- tions in this state, constituting: a reserve or surplus fund, held in trust for the benefit of its contract-holders, and so invested and held as required by the laws of the state or government under which such corporation was organized. The insurance commis- sioner must thereupon issue a license to such corporation to do business in this state. This license must be renewed annually, and may be revoked whenever it is ascertained that the state- ments required to be made by this section are not true. Upon such revocation, notice thereof must le given by the insurance commissioner by publication in some newspaper published in the city and county of San Francisco, for two weeks, daily, and no new contracts must be made by such company in this state. When any other state or country imposes any additional license. s, or penalties upon any corporation organized or doing business under this chapter, like license, fees, taxes, or penal- ties are imposed upon corporations of the same kind and their gents : -'-.eh state or country doing business in this state. Enacted March 20. 1905; stats. 1905, p. 41'.'. N I & note to § 4 53d. CIVIL CODE. Limitations upon right to issue contracts of insurance. -53;'. No corporation doing business under this cha; except accident or casualty eorpoi a contract of insurance upon the life of any person under fifteen nor o sixty-one years of az^. Every such contract of insurance be founded upon written application therefor, and. except wh< the application is for health, accident, or casualty insurance only, or for one hundred dollars life insurance or less, such application must be accompanied by the report of a reputable physician, containing a detailed statement of his examimr: the applicant, showing the applicant to be in g health, and recommending the issuance of a contract of insurance. ieitor, agent, employee, examining physician, or other ; making a false or fraudulent statement to air .tion doin_ r business under this chapter, with reference to any application for insurance, or for the purpose of obtaining any money benefit from such corporation, is guilty of a misdemeanor ; and any person who makes a false statement of any material f or thing in a sworn statement as to the death or disability of a contract-holder, in any such corporation for the purpose of i curing or aiding the beneficiary or beneficiaries or contr. holder in procuring the payment of a benefit named in t tract, is guilty of perjury. Enacted March 20. 1905; stats. 1905, p. 420. "3d. Exemptions from attachment and execution. 33/.-. The money, benefit, annuity, endowment, charity, relief, or aid to be paid as provided by the contracts issued by any corporation doing business under this chapter, is not liable to attachment or other process, nor to be seized, taken, appro- priated, or applied by any legal or equitable process, nor by operation of law, to pay any debts or liability of the contract- holder or any beneficiary named thereunder. Enacted March 20. 1905 : stats. 1905. p. 421. Note. — See note to § 453d. Statements to be filed with the insurance commissioner: pro- ceedings to be taken by him thereon. § 453/. Every corporation, whether domestic or foreign, doing the business of effecting insurance on the assessment plan must, annually, on or before the first day of February, file with the 1 1 8 CIVIL CODE. § 453? insurance commissioner, in such form as he may prescribe, a statement of its affairs for the year ending on the preceding thirty-first day of December. The insurance commissioner, in person or by duly authorized deputy, has the power of examina- tion into the affairs of any domestic corporation doing business or claiming to do business under this chapter, at any time, in his discretion, and must make such examination at least once a year. If he, after an examination of the affairs of a corpora tion, finds that it is not doing its business in conformity to this chapter, or that it is doing a fraudulent or unlawful business, or that it is not carrying out its terms of contract, or that it can not, within three months from the date of notice of default, pay its obligations, he must cite the president, secretary, manager, or general agent of the corporation, or all of them, to appear before him, stating the time and place, to show cause why the authority of the corporation to do business should not be revoked, and if cause ; s not shown, then he must report the facts to the attorney general of the state, who must commence proceedings in the proper court to restrain the corporation from doing any further business. Enacted March 20, 1905; stats. L905, p. 421. Note. — See note to § 4 5 3d. Lapsing of policies, when forbidden. 453m. No policy or certificate issued by any corporation or association doing business under the provisions of this chapter lapses for the non-payment of any assessments, dues, or pre- miums, unless the corporation or association has first mailed to the insured under such policy or certificate, at his or her last given post office address, a notice setting forth the amount to be paid, and the time the same is due and payable ; and such notice must be mailed at least fifteen days before the assessment is due; provided, that such corporations doing business under this chapter as collect specific amounts at specific dates, as contained in the contract, are not compelled to send such notices; and an affidavit made by the officer, bookkeeper, or clerk of any such corporation having charge of the mailing' of notices, setting forth the facts as they appear on the records in the office of the said corporation, showing that such notice was mailed and the date of mailing, is conclusive evidence of the mailing of such notice. Enacted March 20, 1905; stats. 1905, p. 421. Note. — See note to § 453d. § 453/) CIVIL CODE. 119 Fees and penalties. § 453». The fees for filing statements, certificates, or other documents required by this chapter, or for any service or act of the insurance commissioner, and the penalties for any violation of this chapter, must, except as otherwise provided herein, be the same as provided in the laws of this state relating to life insurance companies, and must be disposed of as provided by such laws. Enacted March 20, 1905 ; stats. 1905, p. 422. Note. — See note to § 453d. Insurance commissioner to present bills for certain expenses. § 453o. For all lawful expenses under this chapter, or by reason of any of its provisions, in the prosecution of any suit or proceeding, or otherwise, for the enforcement of the provisions of this chapter, the insurance commissioner must present bills, duly certified by him, and accompanied with vouchers, to the state board of examiners, who may allow the same, and direct payment thereof to be made ; and the state controller must draw warrants therefor on the state treasurer for the payment of the same to the insurance commissioner, out of the general fund, in addition to the ordinary contingent expense. Enacted March 20, 1905 ; stats. 1905, p. 422. Note. — See note to § 453c7. Exemption of fraternal societies from this chapter. § 453p. The provisions of this chapter do not apply to secret or fraternal societies, lodges, or councils, which conduct their business and secure membership on the lodge system exclusively, having ritualistic work and ceremonies in their societies, lodges, or councils, nor to any mutual or benefit association organized or formed and composed of members of any such society, lodge, or council exclusively. Enacted March 20, 1905 ; stats. 1905, p. 422. Note. — See note to S !">?.7 from the date of such bonds, under such regulations as the directors may adopt. Enacted March 21, 1872. 125 Cal. 454. Capital stock to be fixed. § 458. When, at any time after filing the articles of incor- poration, it is ascertained that the capital stock therein set out is either more or less than actually required for constructing, equipping, operating, and maintaining the road, by a two-third vote of the stockholders the capital stock must be fixed, and a certificate thereof, and of the proceedings had to fix the same, must be made out and filed in the office of the secretary of state. Enacted March 21, 1872. 65 Cal. 209. See, aiso, Civ. C. §§ 291-294. Certificate of payment of fixed capital stock. § 459. Within thirty days after the payment of the last installment of the fixed capital stock of any railroad corporation organized under this title and part, the president and secretary and a majority of the directors thereof must make, subscribe, and file in the office of the secretary of state a certificate, stating the amount of the fixed capital stock, and that the whole thereof has been paid in. The certificate must be verified by the affidavit of the president and secretary. Enacted March 21. 1872. CHAPTER II. ENUMERATION OF POWERS. (Powers and duties of railroad commissioners : See "Rail- roads," statutes at large. Appendix.) Sec. 465. Enumeration of powers: 1. To survey road ; 2. May accept real estate ; 3. May acquire real estate ; 4. Lay out road, how wide ; 5. Where may construct road ; 6. May cross or connect roads ; 7. May purchase land, timber, stone, gravel, elr. ; 8. Carry persons and freight ; 9. Erect necessary buildings ; § 465 CIVIL CODE. 123 LO. Regulate time and freights, subject to legislation; 11. Regulate force and speed; 12. To acquire franchises, rights of property, etc., of other corporations. Sec. 465a. Motive power, what authorized to use 4 66. Map and profile to be filed. 467. May change line of road. 468. Contraction must be commenced and continued ; opera- tion ; forfeiture of franchise. 4 69. Crossings and intersections. Condemnation. 170. Not to use streets, alleys, or water in cities or towns, except by a two-third vote of the city or town authorities. 471. Railroads through cities not to charge fare to and from points therein. [Repealed.] 472. When crossing railroads or highways, how other lands are acquired. 473. Corporations may consolidate. Publication of notice. Copy to be filed. 473a. May lease or use whole or part of another road. 474. State lands granted for use of corporations. 475. Grant not to embrace town lots. 476. Wood, stone, and earth may be taken from stale lands. 477. Lands revert to state, when. 478. Selections made, how proved and certified to. Enumeration of powers. § 465. Every railroad corporation has power : J. To cause such examination and surveys lo be made as may be necessary to the selection of the most advantageous route for the railroad ; and for such purposes their officers, agents and employees may enter upon the lands or waters of any person, subject to liability for all damages which they may do thereto ; 2. To receive, hold, take, and convey, by deed or otherwise, as a natural person, such voluntary grants and donations of real estate and other property, which may be made to it to aid and encourage, the construction, maintenance and accommodation of such railroad ; 3. To purchase, or by voluntary grants or donations to receive, enter, take possession of, hold and use all such real estate and other property as may be absolutely necessary for the construc- tion and maintenance of such railroads, and for all stations, depots and other purposes necessary to successfully work and conduct the business of the road ; I : i civil code. § 465 4. To lay out its road, not exceeding tea rods wide, and to construct and maintain the same, with one or more I racks, and with such appendages and adjuncts as may be necessary for the convenient use of the same ; 5. To construct their roads across, along or upon any stream of water, watercourse, roadstead, bay, navigable stream, streel . avenue or highway, or across any railway, canal, ditch or flume which the route of its road intersects, crosses or runs along, in such manner as to afford security for life and property; but the corporation shall restore the stream or watercourse, road, street, avenue, highway, railroad, canal, ditch or flume thus intersected to its former state of usefulness as near as may be, or so that the railroad shall not unnecessarily impair its usefulness or injure its franchise ; G. To cross, intersect, join, or unite its railroad with any other railroad, either before or after construction, at any point upon its route, and upon the grounds of such other railroad corporation, with the necessary turnouts, sidings and switches, and other conveniences in furtherance of the objects of its con- nections : and every corporation whose railroad is, or shall be hereafter intersected by any new railroad, shall unite with the owners of such new railroad in forming such intersections and connections, and grant facilities therefor; and if the two corpo- rations can not agree upon the amount of compensation to be made therefor, or the points or the manner of such crossings. intersections and connections, the same shall be ascertained and determined as is provided in title VII, part III, Code of Civil Procedure (sees. 1237-1263) ; 7. To purchase lands, timber, stone, gravel or other materials to be used in the construction and maintenance of its road, and all necessary appendages and adjuncts, or acquire them in the manner provided in title VII, part III, Code of Civil Procedure, for the condemnation of lands ; and to change the line of its road, in whole or in part, whenever a majority of the directors so determine, as is provided hereinafter ; but no such change must vary the general route of such road, as contemplated in its articles of incorporation ; 8. To carry persons and property on their railroad, and to receive tolls or compensation therefor; 9. To erect and maintain all necessary and convenient build- ings, stations, depots, fixtures and machinery for the accommo- dation and use of their passengers, freight and business; : 16 CIVIL CODE. i 10. To regulate the time unci manner in which passengers and property shall be transported, and the tolls and compensation to be paid therefor within the limits prescribed by law and subject to alteration, change or amendment bj the legislature at any time ; 11. To regulate the force and speed of their locomotives, cars, trains or other machinery used and employed on their roads, and to establish, execute and enforce all needful and proper rules and regulations for the management of its business transactions usual and proper for railroad corporations ; 12. To purchase, lease or acquire I In- franchises, rights and property, or any pari thereof, of any railroad corporation, leas- ing or owning any railroad outside of the Slate of California, aud to operate the same, and to use the franchises of any such road, aud to build and operate extensions thereof; provided, that nothing herein shall authorize any corporation Id purchase the franchises, rights, and property of any railroad operated in competition with it ; and to purchase, acquire and hold the slocks. bonds or other securities of any railroad corporation organized under the laws of this slate or of any oilier state or terri lory, with full power to sell (lie same: provided, that nothing herein will authorize any corporation lo purchase the stock of any railroad corporation operated in competition with it. Amended March 4. 1007; stats. 1907, p. 09. 53 Cal. 227; G7 Cal. 431: 00 Gal. 200; 02 Cal. 04;,; 93 Cal. 265; 111 Cal. 227; 129 Cal. 10; 134 Cal. 114, 415; 112 Cal. 392; 140 Cal. 01. 92; 152 Cal. 308: 153 Cal. 752 ; 1 ( JaL App. 443 ; 2 Cal. App. 559. Crossings and intersections: Civ. C. §§400 and 472. Rates of charges : Civ. C. § 4S9 ; Const. Cal., art. XII, § 22. Time tables, etc. : Civ. C. § 481. Motive power, what authorized to use. § 465(/. Every person or corporation now or hereafter author- ized to operate a railroad by steam motive power, is also author i'/ed to use electricity or compressed air, or both, either with or without such steam, for the purpose of propelling cars or I rains on such railroad or upon any portion thereof. In incor- porated cities, towns, or cities and counties having more than 120 civil code. § 465« five thousand inhabitants, authority must be obtained from the legislative authority thereof. Enacted March 21, 1905; slats. L905, p. 574. Note. — § 46. r ><(. This section is a codification uf the statute of 1893, page 208, relating to the operation of railroads. Map and profile to be filed. § 466. Every railroad corporation in this state must, withiu a reasonable time after its road is finally located, cause to be made a map and profile thereof, and of the land acquired for the use thereof, and the boundaries of the several counties through which the road may run, and file the same in the office of the secretary of .stale; and also like maps of the parts thereof located in different counties, and file the same in the office of the clerk of the county in which such parts of the road are. there to remain of record forever. The maps and profiles must be certified by the chief engineer, the acting president and secretary of such company, and copies of the same, so certified and filed, he kept in the office of the secretary of the corporation, sub- ject to examination by all parties interested. Enacted March 21, 1ST2. May change line of road. § 467. If at any time after the location of the line of the rail- road and the filing of the maps and profiles thereof, as pro- vided in the preceding section, it appears that the location can be improved, the directors may, as provided in subdivision seven, section four hundred and sixty-five, alter or change the same, and cause new maps and profiles to be filed, showing such changes, in the same offices where the originals are of [on] file, and may proceed in the same manner as the original location was acquired, to acquire and take possession of such new line, and must sell or relinquish the lands owned by them for the original location, within five years after such change. . No new location, as herein provided, must be so run as to avoid any points named in their articles of incorporation. Enacted March 21, 1872. Construction must be commenced and continued; operation; for- feiture of franchise. §468. Every railroad corporation must, within two years after filing its original articles of incorporation, begin the con- struction of ils road, and must every year thereafter complete and put in full operation at least five miles of its road, until § 468 civil code. 127 the same is fully completed; and upon its failure so to do. for the period of one year, its right to extend its road beyond the point then completed is forfeited. After the completion of any railroad, or any part thereof, capable of being operated, its owner must operate it, and upon his failure to keep it, or any part thereof, in full operation for the period of six months, his right to operate it in whole or in part, as the case may be, is forfeited, and the lands occupied for the purposes of the road, so far as the same is not operated, revert to the original owners or their successors in interest. A railroad is in full operation when one passenger train, or one mixed train, is run over it once a day in each direction and a sufficient number of freight trains to accommodate the traffic on the road. If a railroad is wholly constructed at an elevation of rive thousand feet or more above the level of the sea. its owner is not required to maintain and operate it, nor to run passenger or other trains thereon, between the fifteenth of October of any year and the fifteenth of May of the year following. This section must not be construed to require the operation of a road when prevented by the act of God, nor when the operation of the road, together with its branch and trunk lines, does not yield income sufficient to defray the expenses of maintaining and operating it in con- nection with its branch and trunk lines. The railroad com- missioners have the power to examine and determine whether a railroad, together with its branch and trunk lines, yields income sufficient to operate the same. Amended March 21, 1905; stats. L905, p. -"74. 92 Cal. (140; 3 Cal. App. 678. Note.- — § 468. The amendments consist in codifying and add- ing to the section the provisions of the statute of 1SK0, page 43, to compel the operation of railroads, and of the statute of 1897, page 5, to provide for the management and operation of railroads above certain elevations. See, also, "Railroads," statutes at large, Appendix. Crossings and intersections — Condemnation. § 469. Whenever the track of one railroad intersects or crosses the track of another railroad, whether the same be a street railroad, wholly within the limits of a city or town, or other railroad, the rails of either or each road must be so cut and adjusted as to permit the passage of the cars on each road with as little obstruction as possible; and, in case the persons L28 CIVIL CODE. § 469 or corporations owning the railroads can not agree as to the compensation to be made for cutting and adjusting the rails, the condemnation of the right of way over the one for the use of the other road may be had in proceedings under title VII, part III, Code of Civil Procedure, and the damages assessed and (he right of way granted as in other cases. Enacted March 21, 1872. Crossings and intersections: See. also. Civ. C. ? t65, subd. G; Civ. C. §472. Not to use streets, alleys, or water in cities or towns, except by a two-third vote of the city or town authorities. § 470. No railroad corporation must use any street, alley, or highway, or any of the land or water, within any incorporated city or town, unless the right to so use the same is granted by a two-third vote of the town or city authority from which the right must emanate. Enacted March 21. 1S72. 69 Cal. 20G ; 92 Cal. 615 ; 105 Cal. 91 ; 109 Cal. 319. Railroads through cities not to charge fare to and from points therein. [Repealed.] §471. Railroads through cities nol to charge Tare to and from points therein. [Repealed April I. l t; 7s : amendts. 1877-8, 1.. 84.] When crossing railroads or highways, how other lands are acquired. S 472. Whenever the track of such railroad crosses a rail road or highway, such railroad or highway may be carried under. over, or on a level with the track, as may be most expedient ; and in cases where an embankment or cutting necessitates a change in the line of such railroad or highway, the corporation may take such additional lands and material as are necessary for the construction of such road, or highway on such new line. If such other necessary lands can not be had otherwise, they may be condemned as provided in title VII. part III, Code of Civil Procedure ; and when compensation is made therefor, the same becomes the property of the corporation. Enacted March 21, 1S72. See, also. Civ. C. §465, iubd 6, and Civ. C 169 See, Pol C. § 2694. § 47H CIVIL CODE. L29 Corporations may consolidate — Publication of notice — Copy to be filed. § 473. Any railroad corporation incorporated under the laws of this state may consolidate with one or more railroad cor- porations incorporated under the laws of this state, or under the laws of any other state or territory of the United States, its capital stock, properties, roads, equipments, adjuncts, fran- chises, claims, demands, contracts, agreements, obligations, debts, liabilities and assets of every kind and description, upon such terms and in such manner as may be agreed upon by their respective boards or directors; provided, no such consolidation shall take effect until the same shall have been ratified and con- tinued in writing by stockholders of the respective corporations representing three fourths of the subscribed capital stock of their respective corpora tious. In case of such consolidation "articles of incorporation ami consolidation" must be prepared, setting forth: First, the name of the new corporation; second, the purpose for which it is formed; third, the place where its principal business is to be transacted ; fourth, the term for which it is to exist, which shall not exceed fifty years; fifth, the mini her of its directors (which shall not be less than live, nor more than thirteen) and the names and residences of the persons appointed to acl as such until their successors are elected and qualified; sixth, the amount of its capital stock (which shall not exceed the amount actually required for the purposes of the new corporation, as estimated by competent engineers), and the number of shares into which it is divided ; seventh, the amount of stock actually subscribed, and by whom ; eighth, the termini of its road or roads and branches ; ninth, the estimated length of its road or roads and branches ; tenth, the names of the con- stituent corporations, and the terms and conditions of consolida- tion in full. Said articles of incorporation and consolidation must be signed and countersigned by the presidents and secreta- ries of the several constituent corporations and sealed with their corporate seals. There must be annexed thereto memoranda of the ratification and confirmation thereof by the stockholders of each constituent corporation, which must be respectively signed by stockholders representing at least three fourths of the capital stock of their respective corporations. When completed as aforesaid said articles must be filed in the office of the county clerk of the county in which the original articles of I. ill CIVIL L* the state. The corporation is also liable for all damages sustained by any person, and caused by its locomotives, train, or ears, when the provisions of I his section are not complied with. Enacted March 21, 1872. 52 Cal. 004; 61 Cal. 328; 85 Cal. 296; 86 Cal. 378; 98 Cal. 311; 122 Cal. 567; 147 Cal. ti27 ; 15D Cal. 703; Nil Cal. App. Dec. 328. Passengers refusing to pay fare. § 487. If any passenger refuses to pay his fare, or to exhibit or surrender his ticket, when reasonably requested so to do, the conductor and employees of the corporation may put him and his baggage out of the cars, using no unnecessary force, at any usual stopping place, or near any dwelling house, on stopping the train. Enacted March 21, 1S72. 65 Cal. 628; 97 Cal. 5; 145 Cal. 452; 1 Cal. App. 348. See, also, Civ. C. § 2187 et seq. Officers to wear badge. § 488. Every conductor, baggage master, engineer, brakeman. or other employee of any railroad corporation, employed on a passenger train or at stations for passengers, must wear upon § 488 CIVIL CODE. V-'0 CIVIL CODE. 143 tenances used by. such railways jointly; but iu no case shall a company owning or operating one line of street railway be permitted to condemn the right to occupy and use the same street or tracks for a distance of more than five blocks consecutively. Where such portion of such street shall be occupied by a track or tracks of a different guage from the track or tracks proposed to be constructed thereon by a line of street railway under a different management, such lasl mentioned line of street railway may nevertheless construct its track or tracks, sub- ject to the limitation before prescribed, over the same ground as may be occupied by such prior track or tracks; pro- vided, the same can be so constructed as not to interfere with the operation of such prior track or tracks beyond such neces- sary interference therewith as shall be incident to such con- struction with reasonable skill, care and diligence. Amended March 21, 1907 ; stats. 1907. p. 837. 54 Cal. 74; 57 Cal. 1GS ; 91 Cal. 452; 115 Cal. 207: 120 Cal. 1S2 ; 135 Cal. G50. Crossing tracks — Obstructions. § 500. Any proposed railroad track may be permitted to cross any track already constructed, the crossing being made as pro- vided in chapter two, title three, of this part. In laying down the track and preparing therefor, not more than one block must be obstructed at any one time, nor for a longer period than ten working days. Enacted March 21, 1872. <'ri>ssing other railroads: Civ. ('. § 4G5 et seq. Rates of fare, speed, etc. S 501. The rates of fare on the ears must not exceed ten cents for one fare for any distance under three miles, and in municipal corporations of the first class must not exceed five cents for each passenger per trip of any distance in one direction. either going or coming, along any part of the whole length of the road or its connections. The cars must be of the most approved construction for the comfort and convenience of passengers, and provided with brakes to stop the same, when required. A viola- tion of the provisions of this section subjects the corporation in a fine of one hundred dollars for each offense. Amended March 10. 1008; stats. 1903, p. 171'. 07 Cal. 563; L34 Cal. 48.1. 144 civil code. § 502 Brakes, fenders, etc.. failure to provide : Pen. 0. § 369 same. All extensions of time shall be in writing, and made a matter of record in the municipality; provided further, that this act shall not in any way affect any franchise or right of way granted before its passage. Amended February 25, 1895; stats. 1895. p. 17. 57 Cal. 17S; 91. Cal. 341; 101 Cal. 337: 117 Cal. 611; 152 Cal. 244, 245. See. also, Civ. C. §§358 and 468. May make further regulations and rules. § 503. Cities and towns in or through which street railroads run may make such further regulations for the government of such street railroads as maj !"■ necessary to a inll enjoyment ol § 503 CIVIL CODE. 1 4") the franchise and the enforcement of the conditions provided herein. Enacted March 21, 1872. 128 Cal. 43G. Penalty for overcharging. § 504. Any corporation, or agent or employee thereof, demand- ing or charging a greater sum of money for fare on the cars of such street railroad than that fixed, as provided in this title, forfeits to the* person from whom such sum is received, or who is thus overcharged, the sum of two hundred dollars, to be recovered in a civil action, in any justice's court having jurisdiction thereof, against the corporation. Enacted March 21, 1872. To provide and furnish passenger tickets — Penalty. § 505. Every street railroad corporation must provide, and on request furnish to all persons desiring a passage on its cars, any required quantity of passenger tickets or checks, each to be good for one ride. Any corporation failing to provide and furnish tickets or checks to any person desiring to purchase the same, at not exceeding the rate hereinbefore described, shall forfeit to such person the sum of two hundred dollars, to be recovered as provided in the preceding section ; provided, that the provisions of this section shall not apply to such street rail- road corporations as charge but five cents fare. Amended March 13, 1883 ; stats. 1883, p. 84. See, also, Pen. C. § 365. Agency, proof of, in case of trial. §506. Upon the trial of an action for any of the sums for- feited, as provided in the two preceding sections, proof that the person demanding or receiving the money as fare, or for the sale of the ticket or check, was at the time of making the demand or receiving the money, engaged in an office of the cor- poration, or vehicle belonging to the corporation, shall be prima facie evidence that such person was the agent, servant, or employee of the corporation, to receive the money and give the ticket or check mentioned. Amended March 30, 1874 : amendts. L873-4, p. 213. 7 — CL. 146 civil code. § 507 City or town to reserve certain rights. § 507. In every grant to construct street railroads, the right to grade, sewer, pave, macadamize, or otherwise improve, alter, or repair the streets or highways, is reserved to the corporation, and can not be alienated or impaired ; such work to be done so as to obstruct the railroad as little as possible; and, if required, the corporation must shift its rails so as to avoid the obstruc- tions made thereby. Amended March 30, 1874; amendts. 1873-4, p. 1214. License to be paid to city or town. § 508. Each street railroad corporation must pay to the authorities of the city, town, county, or city and county, as a license upon each car, such sum as the authorities may fix, not exceeding fifty dollars per annum in the city of San Fran- cisco, nor more than twenty-five dollars per annum in other cities or towns. Where any street railroad connects or runs through two or more cities or towns, a proportionate or equal share of such license tax must be paid to each of the cities or towns; and no such license tax is due the county authorities where the same is paid to any city or town authority. Enacted March 21, 1872. Track for grading purposes. S 509. The right to lay down a track for grading purposes, and maintain the same for a period not to exceed three years, may lie granted by the corporate authorities of any city or town, or city and county, or supervisors of any city or comity, hut no such track must remain more than three years upon any one street: and it must he laid level with the street, and must he operated under such restrictions as not to interfere with the use of the street by the public. The corporation authorities of any city or town, or city and county, may grant the right to use steam or any other motive power in propelling the cars used on such grading track, when public convenience or utility demands it, hut the reasons therefor must be set forth in the ordinance, and (lie right to rescind the ordinance at any time reserved. Enacted March 21, 1X72. § 510 CIVIL CODE. 147 What provisions of title III are applicable to street railroads. §510. Streel railroads are governed by the provisions of title three of this part, so far as they are applicable, unless such railroads are therein specially excepted. Amended March 30, 1874 ; amendts. 1873-4, p. 214. [Title III. See § 454 ct scq.] ' 109 Cal. 577; 125 Cal. 454; 15?, Cal. 507. Title applicable to natural persons alike with corporations. §511. When a street railroad is constructed, owned, or operated by any natural person, this title is applicable to such person in like manner as it is applicable to corporations. Enacted March 21, 1872. 08 Cal. 314: 153 Cal. 507. TITLE V. Wagon Road Corporations. (Toll roads: See Pol. C. §§2779 to 2832.) Sec. 512. Wagon roads, how must be laid out. 513. Survey and map to be filed and approved by super- visors. 514. Tolls, etc., to be collected. Penally for taking unlaw- ful tolls. 515. No tolls to be charged on highways or public roads. 516. Rates of toll to be posted at gate. 517. Toll-gatherer may detain persons until they pay tolls. 518. Toll-gatherer not to detain any person unreasonably. 519. Persons avoiding tolls to pay five dollars. 520. Penalties for trespasses on property of corporation. 521. When capital invested is repaid, tolls to be reduced, etc. 522. May mortgage and hypothecate corporate property. 523. This title applies to natural persons as well as cor- porations. 524. Municipal corporations may construct paths and roads for use of bicycles and other horseless vehicles. Wagon roads, how must be laid out. § 512. Where a corporation is formed for the construction and maintenance of a wagon road, the road must be laid out as follows : Three commissioners must act in conjunction with the surveyor of the corporation, two to be appointed by the board 1 t8 CIVIL CODE. § 512 of supervisors of the county through which the road is to run, and one hy the corporation, who must lay out the proposed road, and report their proceedings, together with the map of the road, to the supervisors, as provided in the succeeding section. Amended March 30, 1S74 ; amendts. 1873-4, p. 214. 95 Cal. 86. See, also, Civ. C. §§ 291-294; Pol. C. § 2619. Survey and map to be filed and approved by supervisors. §513. When the route is surveyed a map thereof must be submitted to and filed with the board of supervisors of each county through or into which the road runs, giving its general course, and the principal points to or by which it runs, and its width, which must in no case exceed one hundred feet, and the supervisors must either approve or reject the, survey. If approved, it must be entered of record on the journal of the boai'd, and such approval authorizes the use of all public lands and highways over which the survey runs ; but the board of supervisors must require the corporation, at its own expense, and the corporation must so change and open the highways so taken and used as to make the same as good as before the appropriation thereof; and must so construct all crossings of public highways over and by its road and toll gates, as not to hinder or obstruct the use of the same. Amended March 21, 1905; stats. 1905, p. 577. Note. — § 513. The change consists In the omission of the words "they were" before the word "before." The omission does not change the meaning of the section. Tolls, etc., to be collected — Penalty for taking unlawful tolls. §514. All wagon road corporations may bridge or keep ferries on streams on the line of their road, and must do all things necessary to keep the same in repair. They may take such tolls only on their roads, ferries, or bridges, as are fixed by the board of supervisors of the proper county through which the road passes, or in which the ferry or bridge is situate. But in no case must the tolls be more than sufficient to pay fifteen per cent, nor less than ten per cent per annum, on the cost of construction, after paying for repairs and other expenses for attending to the roads, bridges, or ferries. If tolls, other § 514 CIVIL CODE. I H> than as herein provided, are charged or demanded, the corpora- tion forfeits its franchise, and must pay to the party so charged one hundred dollars as liquidated damages. Amended March 21, L905; stats. 1905, p. 577. 88 Cal. 633. Note. — § 514. The change consists in the omission of that part of the section excepting from its operation the counties of Butte, Del Norte, Humboldt, Klamath, Plumas, and Siena. Franchises : Pol. C. §§3378 and 4041. General regulations : See Pen. C. §§ 3S6, 3S7, 3S8. 389. Sale of franchise under execution: Civ. O. § 38s. Sec. also. "Bridges," statutes at large, Appendix. No tolls to be charged on highways or public roads. §515. When any highway or public road is taken and used by any wagon road corporation as a part of its road, the cor- poration must not place a toll gate on or take tolls for the use of such highway or public road by teamsters, travelers, drovers, or any one transporting property over the same. Enacted March 21, 1872. Rates of toll to be posted at gate. § 516. The corporation must affix and keep up. at or over each gale, or in some conspicuous place, so as to be con- veniently read, a printed list showing, lirst, the date when the franchise or privilege under which the right to collect tolls is claimed, was granted and the term of duration of said fran- chise; second, the date upon which rates of tolls were last fixed by the board of supervisors; and, third, the rates of tolls levied and demanded. Failure to comply with the pro- visions of this act shall work an immediate forfeiture of fran- chise. Amended February 14. 1001; stats. 1901, p. 5. Toll-gatherer may detain persons until they pay tolls. § 517. Each toll-gatherer may prevent from passing through his gate any person, animal, or vehicle, subject to toll, until the toll authorized to be collected for such passing has been paid. Amended March 21, 1905 ; stats. 1905, p. 7,11. Note. — § 517. The section as it stood authorized the toll- gatherer to prevent from passing through his gate persons leading or driving animals or vehicles subject to toll. The form of the section has been changed to express what was doubtless orig- inally intended by the legislature. 150 CIVIL CODE. § 518 Toll-gatherer not to detain any person unreasonably. 8 518. Every toll-gatherer who, :il any gate, unreasonably hinders or delays any traveler or passenger or any vehicle or animal liable to the payment of loll, or demands or receives from any person more than he is authorized to collect, for each offense forfeits the sum of twenty-five dollars to the person aggrieved. Amended March 21, 1905; stats. 1905, p. 578. 51 Cal. 490. Note. — § 518. The change consists in the insertion of the words "or any vehicle or animal" after "passenger." Persons avoiding tolls to pay five dollars. § 519. Every person who, to avoid the payment of the legal toll, with his team, vehicle, or horse, turns out of a wagon, turnpike, or plank road, or passes any gate I hereon on ground adjacent thereto, and again enters upon such road, for each offense forfeits the sum of five dollars to the corporation injured. Enacted March 21, 1S72. Penalties for trespass on property of corporation. § 520. Every person who : 1. Willfully breaks, cuts down, defaces, or injures any mile- stone or post on any wagon, turnpike or plank road; or. 2. Willfully breaks or throws down any gate on such road; or, .'!. Digs up or injures any part of such road or anything thereunto belonging ; or, 4. Forcibly or fraudulently passes any gate thereon without having paid the legal toll; For each offense forfeits to the corporation injured the sum of twenty-five dollars, in addition to the damages resulting from his wrongful act. Enacted March 21, 1872. When capital invested is repaid, tolls to be reduced, etc. §521. The entire revenue derived from the road shall be appropriated: first, to repayment to the corporation of the eosts of its construction, together with the incidental expenses incurred in collecting tolls and keeping the road in repair ; and. second, to the payment of the dividend among its stockholders, as provided in section five hundred and fourteen. When the § 521 CIVIL CODE. 151 repayment of the cost of construction is completed, the tolls must be so reduced as to raise no more than an amount suf- ficient to pay said dividend, and incidental expenses, and to keep the road in good repair. Amended March 30. 1874 ; amendts. 1873-4, p. 215. May mortgage and hypothecate corporate property. § 522. The corporation may mortgage or hypothecate its road and other property for funds with which to construct or repair its road, but no mortgage or hypothecation is valid or binding unless at least twenty-five per cent of the capital stock subscribed has been paid in and invested in the construction of the road and appurtenances, and then only after an affirm- ative vote of two thirds of the capital stock subscribed. Amended March 21, 1905; stats. 1905, p. 57S. SO Cal. 341. Note. — S r. 2 2 . The change consists in the substitution of the word "its" in place of "their," thus correcting an error of gram- mar. This title applies to natural persons as well as corporations. § 523. When a wagon, turnpike, or plank road is constructed, owned, or operated by any natural person, this title is applicable to such person in like manner as it is applicable to corporations. Enacted March 21, 1872. 79 Cal. 168; SO Cal. 341; 98 Cal. 313. Municipal corporations may construct paths and roads for use of bicycles and other horseless vehicles. >! 524. The legislative or other body to whom is intrusted (lie government of any county, city and county, city, or town, may, under such regulations, restrictions, and limitations as it may provide, subject to existing laws, grant franchises for the construction of paths and roads, either on the surface, elevated, or depressed, on, over, across, or under the streets and public highways of any such county, city, or town, for the use of bicycles, tricycles, motorcycles, and other like horseless vehicles, for a term not exceeding fifty years. In incorporated cities no franchise must be granted for the purpose herein expressed, unless the conseni in writing of Hie owners of ;i majority of the frontage upon the road or street along which 152 civil code. §524 said path or road is sought to be constructed, is first had and obtained, and filed with such legislative or governing body. Enacted March 21, 1905; stats. 1905, p. 57S. See, also, Pol. C. §§4041 and 4047. Note. — § 524. The statute of 1897, page 191, authorizing municipal corporations to construct paths and roads for the use of bicycles and other horseless vehicles, is codified in this section. TITLE VI. Bridge, Ferry, Wharf, Chute, and Pier Corporations. (Public ferries and toll bridges: Pol. C. §2843 ei seq.; see. also Pol. C. §§337S and 4041 : see, also. "Bridges," statutes at large, Appendix'.) Sec. 528. Corporation to obtain lit use from supervisors. 529. In what contingencies corporate existence ceases. 5 30. President and secretary to make annual report, and what to contain. Damages for failing to report. 531. This title to apply to natural persons alike with cor- porations. Corporation to obtain license from supervisors. § 528. No corporation must construct, or take tolls on, a bridge, ferry, wharf, chute, or pier uutil authority is granted therefor by the supervisors, or other governing body having authority iu that behalf. Amended March 21, 1905; stats.- 1905, p. 579. 13G Cal. 49. Note. — § 528. The change consists in the insertion of the words "or other governing body having authority in that behalf," after •'supervisors." Penalty for taking toll without authority: Pen. C. §386. Refusing to pay toll: Pen. C. §388. In what contingencies corporate existence ceases. § 529. Every such corporation ceases to be a body cor- porate : 1. l\\ within six months from filing its articles of incor poration, it lias not obtained such authority from the board of supervisors, or oilier governing body having authority in that behalf; and if. within one year thereafter, it has not commenced the construction of the bridge, wharf, chute, or pier, and § 520 c mr. code. I5: J . actually expended thereon at least ten per cent of the capital stock of the corporation ; 2. If, within three years from filing the articles of incor- poration, the bridge, wharf, chute, or pier is not completed ; 3. if, when the bridge, wharf, chute, or pier of the corpo- ration is destroyed, it is not reconstructed and ready for use within three years thereafter ; 4. If the ferry of any such corporation is not in running order within three months after authority is obtained to estab- lish it, or if At any time thereafter it ceases for a like term consecutively to perform the duties imposed by law. Amended March 21, 1905; stats. 1005. p. 570. See, also, Pol. C. § 2G19. Violation of conditions of franchise, etc. : Pen. C. § 3S7. Note. — § 529. The change consists in the insertion of the words "or other governing body having authority in that behalf," after "supervisors." President and secretary to make annual report, and what to contain — Damages for failing to report. § 530. The president and secretary of every bridge, ferry, wharf, chute, or pier corporation must annually, under oath, report to the board of supervisors, or other governing body having authority iu that behalf, of the county in which the articles of incorporation are filed : 1. The cost of constructing and providing all necessary appendages and appurtenances for its bridge, ferry, wharf, chute, or pier ; 2. The a mount of all moneys expended thereon, since its construction, for repairs and incidental expenses; 3. The amount of its capital stock, how much paid in, and how much actually expended thereof; 4. The amount received during the year for tolls, and from all other sources, stating each separately ; •">. The amount of dividends made, and the indebtedness of the corporation, specifying for what it was incurred; 0. Such other facts and particulars respecting the business of the corporation, as the board of supervisors or other gov- erning body having authority in that behalf may require. This report the president and secretary must cause to be pub- lished for four weeks in a daily newspaper published nearest the bridge, ferry, wharf, pier, or chute, if required by order of the board of supervisors or other governing body having 154 civil code. § 530 authority in that behalf. A failure to make such report subjects the corporation to a penalty of two hundred dollars, and for every week permitted to elapse after such failure an additional penalty of fifty dollars, payable in each case to the county from which the authority of the corporation was derived. All such cases must be reported by the board of supervisors, or other governing body having authority in that behalf, to the district attorney or city attorney, who must commence an action therefor. Amended March 21, 1905; stats. 1905, p. .".70. Note. — § 530. The change consists in the insertion of the words "or other governing body having authority in that behalf," after "supervisors." This title to apply to natural persons alike with corporations. §531. When a bridge, ferry, wharf, chute, or pier is con- structed, operated, or owned by a natural person, this title is applicable to such person in like manner as it is applicable to corporations. Enacted March 21, 1872. 98 Cal. 314. Public ferries and toll bridges : See Pol. C. § 2843 to 2895. Wharves, chutes, and piers: See Pol. C. §2000 to 2921. TITLE VII. [Old title VII repealed and new title VII enacted March 20, 1905 ; stals. 1905, p. 492.] Telegraph and Telephone Corporations. (See, also, "Franchises." statutes at large. Appendix; see, also, Civ. C. §§291-294. and Pen. C. §§ 273e, 2736.) Sec. 536. May use right of way along waters, roads, and high- ways. 537. Liability for damaging telegraph or telephone property. 538. Penalty for willfully or maliciously injuring telegraph or telephone property. 539. Conditions on which damage to subaqueous cable may be recovered. 540. May dispose of certain rights. § 536 civil code. 155 May use right of way along waters, roads, and highways. § 536. Telegraph or telephone corporations may construct lines of telegraph or telephone lines along and upon any public road or highway, along or across any of the waters or lands within this State, and may erect poles, posts, piers, or abut- ments for supporting the insulators, wires, and other necessary fixtures of their lines, in such manner and at such points as not to incommode the public use of the road or highway or interrupt the navigation of the waters. Enacted March 20, 1905 ; stats. 1905, p. 492. 149 Cal. 750. Note. — §§ 536, 537, 538, 539, 540. The change consists in the insertion of the words "or telephone" after the word "telegraph," thus including telephone companies within the operation of the above sections. Liability for damaging telegraph or telephone property. § 537. Any person who injures or destroys, through want of proper care, any necessary or useful fixture of any telegraph or telephone corporation, is liable to the corporation for all damages sustained thereby. Any vessel which, by "dragging its anchor, or otherwise, breaks, injures, or destroys the subaqueous cable of a telegraph or telephone corporation, subjects its owner to the damages hereinbefore specified. Enacted March 20, 1905 ; stats. 1905. p. 492. Note. — See note to § 536. Penalty for willfully or maliciously injuring telegraph or tele- phone property. § 538. Any person who willfully and maliciously does any injury to any telegraph or telephone property, mentioned in the preceding section, is liable to the corporation for one hundred times the amount of actual damages sustained thereby, to be recovered in any court of competent jurisdiction. Enacted March 20, 1905; stats. 1905, p. 492. Note. — See note to § 536. Conditions on which damage to subaqueous cable may be recovered. § 539. No telegraph or telephone corporation can recover damages for the breaking or injuring of any subaqueous tele- graph or telephone cable, unless such corporation has pre- viously erected on either bank of the waters under which the cable is placed, a monument, indicating the place where the cable lies, and publishes for one month in some newspaper most 150 CIVIL CODE. § 530 likely to give notice to navigators, a notice giving a description and the purpose of the monuments, and the general course, landings, and termini of the cable. Enacted March 20, 1905 ; stats. 1905, p. 492. Note. — See note to § 536. May dispose of certain rights. § 540. Any telegraph or telephone corporation may at any time, with the consent of the persons holding two thirds of the issued stock of the corporation, sell, lease, assign, transfer, or convey any rights, privileges, franchises, or property of the corporation, except its corporate franchise. Enacted March 20, 1905 ; stats. 1905, p. 492. Note. — See note to § 536. TITLE VIII. Water and Canal Corporations. (See, also, "Water Companies," statutes at large, Appendix.) Sec. 54 8. Corporations may obtain contract to supply city or town. 549. Duties of corporation. Rates fixed by supervisors, etc. 550. Right to use streets, ways, alleys, and roads. [Re- pealed.] 551. Public highways not to be obstructed. 552. Irrigation. Easement and water rates. Corporations may obtain contract to supply city or town. § 548. No corporation formed to supply any city, city and county, or town with water must do so unless previously author- ized by an ordinance of the authorities thereof, or unless it is done in conformity with a contract entered into between the city, city and county, or town and the corporation. Contracts so made are valid and binding in law, but do not take from the city, city and county, or town the right to regulate the rates for water, nor must any exclusive right be granted. No con- tract or grant must be made for a term exceeding fifty years. Enacted March 21, 1872. See, also, Pol. C. §§ 4410 to 4413. Duties of corporation — Rates fixed by supervisors, etc. § 549. All corporations formed to supply water to cities or towns must furnish pure fresh water to the inhabitants thereof, for family uses, so long as the supply permits, at reasonable § 549 civil code. 157 rates and without distinction of persons, upon proper demand therefor ; and must furnish water to the extent of their means, in case of fire or other great necessity, free of charge. The board of supervisors, or the proper city or town authorities, may prescribe proper rules relating to the delivery of water, not inconsistent with the laws of the state. Amended March 21, 1905 ; stats. 1905, p. 580. 52 Cal. 134 ; 152 Cal. 5SS. Note. — § 549. The change consists in the omission of the two sentences following the word "charge," which were a part of the section, said sentences having been superseded by the provisions of the constitution of 1879, providing for the mode in which water rates shall be fixed. See, also, Constitution of California, art. XI, § 19. Right to use streets, ways, alleys, and roads. [Repealed.] § 550. Right to use streets, ways, alleys, and roads. [Repealed March 21, 1905; stats. 1905, p. 580.] Note. — § 550. This section is an expression of the constitu- tional provisions found in the constitution of 1879, respecting the right of corporations to use streets for laying water pipes, and is, therefore, repealed. Public highways not to be obstructed. i; 551. No canal, flume, or other appliance for the conduct- ing of water must be so laid, constructed, or maintained as to obstruct any public highway; and every person or corporation owning, maintaining, operating, or using any such canal, flume. hi- appliance, crossing or running along any public highway, must construct, maintain, and keep in repair such bridges across the same as may be necessary to the safe and convenient use of such highway by the public ; and on failure so to do, the board of supervisors of the county, after seven days' notice in writing to said person or corporation, may construct or repair such bridge or bridges, and recover of such person or corpora- tion the amount of the expenditure made in so doing. Amended March 21, 1905 ; stats. 1905, p. 580. 68 Cal. 359 ; 98 Cal. 183. Note. — § 551. The design of the amendment is to better express the purpose of the section and to remove the objections that it may be unconstitutional in investing the supervisors with an arbitrary power to require or not require bridges, and to supply the defect in not providing any means "f coercing the perform- ance of the duty created. See, also, Pol. C. § 2694. 1 58 civil code. § 552 Irrigation — Easement and water rates. § 552. Whenever any corporation, organized under the laws of this state, furnishes water to irrigate lands which said cor- poration has sold, the right to the flow and use of said water is and shall remain a perpetual easement to the land so sold, at such rates and terms as may be established by said corpora- tion in pursuance of law. And whenever any person who is cultivating land on the line and within the flow of any ditch owned by such corporation, has been furnished water by it with which to irrigate his land, such person shall be entitled to the continued use of said water, upon the same terms as those who have purchased their land of the corporation. Amended April 3, 187G ; amendts. 1875-6, p. 77. 56 Cal. 440; 00 Cal. 2SG ; 112 Cal. 434; 120 Cal. 448; 130 Cal. 313; 152 Cal. 58S, 597; 2 Cal. App. 413; VI Cal App. Dec. 047, 70G. TITLE IX. Homestead Corporations. Sec. 557. Time of corporate existence. 558. By-laws must specify time for and amount of payment of installments, and penalty for failure to pay. By- laws to be furnished to any member on demand. 559. Advertisement and sale of delinquent and forfeited shares. 560. May borrow and loan funds — how, and for what time. 561. Minor children, wards, and married women may own stock. 562. Forfeiture for speculating in or owning lands exceed- ing two hundred thousand dollars. 563. When corporation is terminated, and how. 564. Payment of premiums. 565. Annual report to be published. 5 66. Publication in certain cases. Time of corporate existence. § 557. Corporations organized for the purpose of acquiring lands in large tracts, paying off incumbrances thereon, improv- ing and subdividing them into homestead lots or parcels, and distributing them among the shareholders, and for the accumu- §557 civil code. 150 lation of a fund for such purposes, are known as homestead cor- porations, and must not have a corporate existence for a longer period than ten years. Enacted March 21, 1872. By-laws must specify time for and amount of payment by install- ments, and penalty for failure to pay— By-laws to be fur- nished to any member on demand. §558. Such corporations must specify in their by-laws the times when the installments of the capital stock are payable, the amount thereof, and the tines, penalties, or forfeitures incurred in case of default. A printed copy of the articles of incorporation and by-laws must be furnished to any shareholder on demand. Enacted March 21. 1872. Advertisement and sale of delinquent and forfeited shares. §559. Whenever any shares of stock are declared forfeited. by resolution of the board of directors, the directors may adver- tise the same for sale, giving the name of the subscriber and the number of shares, by notice of not less than three weeks. published at least once a week in a newspaper of general cir- culation in the city, town, or county where the principal place of business of such corporation is located. Such sale must lie made at auction, under the direction of the secretary of the company. The corporation may he a bidder, and the shares must he disposed of to the highest bidder for cash. No defect, informality, or irregularity in the proceedings respecting the sale invalidates it, if notice is given as herein provided. After i he sale j s made, the secretary must, on receipt of the pur- chase money, transfer to the purchaser the shares sold, and after deducting from the proceeds of such sale all installments then due, and all expenses and charges of sale, must hold the residue subject to the order of the delinquent subscriber. Enacted March 21, 1872. May borrow and loan funds — how, and for what time. § 560. Homestead corporations may borrow money for the purposes of the corporation, not exceeding at any one time one fourth of the aggregate amount of the shares or parts of shares actually paid in, and the income thereof; no greater rate of interest must he paid therefor than twelve percent per annum. L60 civil, code. § 560 For the purpose of completing the purchase of lands intended to be divided and distributed, they may borrow on the security of their shares on the land thus purchased, or that owned by the corporation at the time of procuring the loan, any sum of money which, together with the interest contracted to become due thereon, will not exceed ninety per cent of the unpaid amount subscribed by the shareholders ; but no loan must be made to the corporation for a term extending beyond that of its existence. Enacted March 21. 1872. Minor children, wards, and married women may own stock. §561. Such shares of stock in homestead corporations as may be acquired by children, the cost of which, and the deposits and assessments on which, are paid from the personal earn- ings of the children, or with gifts from persons other than their male parents, may be taken and held for them by their parents or guardians. Married women may hold such shares as they acquire with their personal earnings, or those of their children, voluntarily bestowed therefor, or from property bequeathed or given to them by persons other than their hus- bands. Enacted March 21, 1872. Amount of shares exempt from execution : Code Civ. Proc. § GOO, subd. 11. Forfeiture for speculating in or owning lands exceeding two hundred thousand dollars. §562. Homestead corporations must not purchase and sell. or otherwise acquire and dispose of. real property, or any inter- est therein, or any personal property, for the sole purpose of speculation or profit. Nor must any such corporation at any one time own or hold, in trust or otherwise, for its purposes, real property, or any interest therein, which in the aggregate exceeds in cash value the sum of two hundred thousand dollars. For any violation of the provisions of this section corporations forfeit their corporate rights and powers. On the application of any citizen to a court of competent jurisdiction, such for- feiture may be adjudged, and the judgment carries with it costs df the proceedings. Enacted March 21, 1S72. § 563 civil coin:. 161 When corporation is terminated, and how. § 563. Except for the purpose of winding- up and settling its affairs, every homestead corporation must terminate at the expiration of the time fixed for its existence iii the articles of incorporation, or when dissolved as provided in this part. No dividend of funds must be made on termination of its corporate existence until its debts and liabilities are paid ; and upon the final settlement of the affairs of the corporation, or upon the termination of its corporate existence, the directors, in such manner as they may determine, must divide its property among its shareholders in proportion to their respective interests, or. upon the application of a majority in interest of the stock- holders, must sell and dispose of any or all of the real estate of the corporation upon such terms as may be most conducive to the interests of all the stockholders, and must convey the same to the purchaser, and distribute the proceeds among the shareholders, or may at any time, when best for the interests of all the shareholders, cause the lands of the corporation to be subdivided into lots and distributed, by sale for premiums, at auction or otherwise, among the shareholders. Enacted March 21, 1872. Payment of premiums. §564. Such premiums on lots may be made payable at the time they are bid off, and, if not so paid on any lot of land, the directors may immediately offer the same for sale again. If made payable at a future day, and any shareholder fails to pay his hid on the day the same is made due and payable, the directors may advertise and sell the shares of stock represent- ing the lots of land on which the premiums remain unpaid, in the manner provided in the by-laws for the sale of shares on account of delinquent installments and premiums. Enacted March 21, 1S72. Annual report to be published. § 565. The actual financial condition of all homestead cor- porations must, by the directors thereof, be published annually in the [a] newspaper published at the principal place of busi- ness of the corporation, for four weeks, if published in a weekly, and two weeks, if published in a daily. The statement ninst he made Up to tlie end of each year, and must lie verified by the oath of the president and secretary, showing the items of property and liabilities. Enacted March 21, 1872. 162 CIVIL CODE. § 56G Publication in certain cases. § 566. In any case in which a publication is required, and no newspaper is published at the principal place of business, the publication may be made in a paper published in an adjoin- ing county. Enacted March 21. 1S72. TITLE X. Savings and Loan and Banking Corporations. (See. also, "Banks and Banking." statutes at large, Ap- pendix. ) Sec. 571. May loan money — on what terms, how, and to whom, and how lon^. .". Tl*. Capital stock, and rights and privileges thereof. 573. No dividends, except from surplus profits. To contract no liability, except for deposits. 571. Property which may be owned by corporations, and how disposed of. Restrictions in purchases as pro- vided above. 5 7 5. Married women and minors may own stock in their own right. 5 7 0. May issue transferable certificates of deposit. Special certificates. 5 7 7. To provide reserve fund for the payment of losses. 578. Prohibition on director and officer, and what vacates office. 579. Definition of phrase "create debts." 580. Capital stock required. I Repealed.] 581. Amount of money to be loaned on real estate, limited. 582. Persons nol incorporated must shew- true names, etc. 583. Dividends, how and when declared. 583a. Capital stock required to be advertised. 5386. Unclaimed deposits. Statement required. May loan money — on what terms, how, and to whom, and how long. §571. Corporations organized for the purpose of accumu- lating and loaning I lie funds of their members, stockholders, and depositors, may loan and invest the funds thereof, receive deposits of money, loan, invest, ami collect the same, with inter- est, and may repay depositors with or without interest. No § 571 CIVIL CODE. 103 such corporation must loan money, except on adequate security on real or personal property, and such loan musl not be for a longer period than ten years. Amended March 15, 1901; stats. 1901, p. 29r>. G4 Cal. 123 ; 97 Cal. 222 ; 120 Cal. 41. r > ; 136 Cal. 442. Banking corporations not to take the name of friendly asso- ciations: Code Civ. Proc. § 127t'>. Created only under general laws: Constitution of California, art. XII, § 5. Capital stock, and rights and privileges thereof. S 572. When savings and loan corporal ions have a capital slock specified in their articles of incorporation, certificates of the ownership of shares may he issued; and the rights and privileges to he accorded to, and the obligations to be imposed upon, such capital stock, as distinct from those of depositors, must be fixed and defined, either in the articles of incorporation or in the by-laws. Enacted March 21, 1872. 04 Cal. 123 ; 109 Cal. 401 ; 117 Cal. 100. No dividends, except from surplus profits — To contract no lia- bility, except for deposits. § 573. The directors of savings and loan corporations may, at such times and in such manner as the by-laws prescribe, declare and pay dividends of so much of the profits of the cor- poration, and of the interest arising from the capital stock and deposits, as may be appropriated for that purpose under the by-laws or under their agreements with depositors. The direct- ors must not contract any debt or liability against the cor- poration for any pui-pose whatever, except for deposits. The capital stock and the assets of the corporation are a security to depositors and stockholders, depositors having the priority of security over the stockholders, but the by-laws may provide that the same security shall extend to deposits made by stock- holders. Enacted March 21, 1S72. 04 Cal. 123; 109 Cal. 401 ; 117 Cal. 100; 119 Cal. 34:;. Property which may be owned by corporations, and how dis- posed of — Restrictions in purchases as provided above. § 574. Savings and loan corporations may purchase, hold and convey real and personal property as follows: L64 civil code. § 574 1. The lol and building in which the business of the corpora- tion is carried on, the cost of which must not exceed one hun- dred thousand dollars; except, on a vote of two thirds of the stockholders the corporation may increase the sum to an amounl not exceeding two hundred and fifty thousand dollars ; 2. Such as may have been mortgaged, pledged or conveyed to it in trust, for its benefit in good faith, for money loaned in pursuance of the regular business of the corporation ; 3. Such as may have been purchased at sales under pledges, mortgages, or deeds of trust made for its benefit, for money so loaned, and such as may he conveyed to it by borrowers in sat- isfaction and discharge of loans made thereon ; 4. No such corporation must purchase, hold or convey real estate iu any other case or for any other purpose; and all real estate described in subdivision three of this section must be sold by the corporation within ten years after the title thereto is vested in it by purchase or otherwise ; 5. No such corporation must purchase, own, or sell personal property, except such as may be requisite for its immediate accommodation for the convenient transaction of its business, mortgages on real estate, bonds, securities or evidences of indebtedness, public or private, gold and silver bullion and United States mint certificates of ascertained value and evi- dences of debt issued by the United States; 6. No such corporation must purchase, hold or convey bonds, securities or evidences of indebtedness, public or private, except bonds of the United States, of the State of California, and of the counties, cities, or cities and counties, or towns, or school districts of the State of California, or bonds of railroad or street railroad corporations owning property and having their prin- cipal place of business in the State of California, unless such corporation has a capital stock or reserve fund paid in of not less than one hundred thousand dollars. Amended March 23, 1901; stats. 1901, p. 659. 64 Cal. 123; 109 Cal. 401; 117 Cal. 160; 126 Cal. 416; 133 Cal. 613 ; 136 Cal. 442 ; 149 Cal. 124 ; 3 Cal. App. 710. Married women and minors may own stock in their own right. §575. Married women and minors may, in their own right, make and draw deposits and draw dividends, and crive valid receipts therefor. Enacted March 21, 1872. 64 Cal. 123; 117 Cal. 160; 134 Cal. 405. § 576 civil code. 165 May issue transferable certificates of deposit — Special certifi- cates. §576. Savings and loan corporations may issue general cer lificates of deposit, which are transferable, as in other cases, by indorsement and delivery ; may issue, when requested by the depositor, special certificates, acknowledging the deposit by the person therein named of a specified sum of money, and expressly providing on the face of such certificate that the sum so deposited and therein named may be transferred only on the books of the corporation ; payment thereafter made by the cor- poration to the depositor named in such certificate, or to his assignee named upon the books of the corporation, or, in case of death, to the legal representative of such person, of the sum for which such special certificate was issued, discharges the corporation from all further liability on account of the money so paid. Enacted March 21, 1872. 04 Cal. 123; 109 Oal. 403; 117 Cal. 100; 119 Cal. 341; 136 Cal. 512. Receiving deposits when insolvent : Pen. C. § 502. To provide reserve fund for the payment of losses. §577. Savings and loan corporations may prescribe by their by-laws the time and conditions on which repayment is to be made to depositors ; but whenever there is any call by depos- itors for repayment of a greater amount than the corporation may have disposable for that purpose, the directors or officers thereof must not make any new loans or investments of the funds of the depositors, or of the earnings thereof, until such excess of call has ceased. The directors of any such corpora- tion having no capital stock must retain, on each dividend day. at least five per cent of the net profits of the corporation, to constitute a reserve fund, which must be invested in the same manner as other funds of the corporation, and must be used toward paying any losses which the corporation may sustain in pursuing its lawful business. The corporation may provide by its by-laws for the disposal of any excess in the reserve fund over one hundred thousand dollars, and the final disposal, upon the dissolution of the corporation, of the reserve fund, or of the remainder thereof, after payment of losses. Enacted March 21. 1S72. 57 Cal. 002 ; 04 Cal. 123 ; 109 Cal. 401 ; 117 Cal. Itii). 166 civil, code. § 578 Prohibition on director and officer, and what vacates office. 8 578. No director or officer of anj savings and loan cor- poration must, directly or indirectly, for himself or as the part- ner or agent of others, borrow any of the deposits or other funds of such corporation, nor must he become an indorser or surety for loans to others, nor in any manner be an obligor for moneys borrowed of or loaned by such corporation. The office of any director or officer who acts in contravention of the pro- visions of this section immediately thereupon becomes vacant. Enacted March 21, 1872. M Oal. 123; 104 Cal. 476; 147 Cal. 160; VIA Cal. 291 : 130 Cal. 257 ; 136 Cal. 442. Fraudulent appropriation of property : Pen. C. §•"><•(;. Penalty for overdrawing account : Pen. C. §561. Definition of phrase "create debts." § 579. Receiving deposits, issuing certificates of deposit, checks, and bills of exchange, and the like, in the transaction of the business of savings and loan corporations, must not be con- strued to be the creation of debts within the meaning of the phrase "create debts," in section three hundred and nine. Enacted March 21, 1872. 57 Cal. 602; U4 Cal. 123; 117 Cal. 160. Capital stock required. [Repealed.] S 580. Capital stock required. [Repealed March IS. 1907; slats. 1907, p. 576.] Amount of money to be loaned on real estate, limited. S 581 . No savings bank shall lend to exceed sixty per cent of the market value of any piece of real estate to be taken as security, except for the purpose of facilitatiug the sale of prop- erty owned by the corporation. And it shall be unlawful for any savings and loan society, or savings bank, to purchase, invest, or loan its capital, or the money of its depositors, or any part of either, in mining shares or stocks. Any president or managing officer who knowingly consents to a violation of the above provision shall be deemed guilty of a felony. Enacted March 21, 1903 ; stats. 1903, p. 352. Persons not incorporated must show true names, etc. § 582. Every person or number of persons not being incor- porated, engaged in the business of banking, or publicly receiv- ing money on deposit, must conduct such business under a name § 582 CIVIL CODE. 167 which shows the true names of all persons engaged therein, unless such person or persons have complied with the provisions of article VII of chapter II of title X of part IV of division third of said Civil Code. Every person violating any of the provisions of this section is guilty of a misdemeanor, and is punishable by imprisonment in the county jail for not less than ninety days nor more than six months, or by fine of not less than one hundred dollars nor more than five hundred dollars, or by both such fine and imprisonment. Enacted March 21, 1903 ; stats. 1903, p. 352. Banking corporation not to take the name of friendly asso- ciations : See Code Civ. Proc.§ 1270. Dividends, how and when declared. § 583. The directors of any savings bank, bank, or banking corporation having a capital stock, may semi-annually declare a dividend of so much of the net profits of the stockholders as they shall judge expedient: but every such corporation shall. before the declaration of such dividend, carry at least one tenth (1-10) part of the net profits of the stockholders for the pre- ceding half year to its surplus or reserve fund until the same shall amount to twenty-five per centum of its paid-up capital stock. But the whole or any part of such surplus or reserve fund, if held as the exclusive property of stockholders, may at any time be converted into paid-up capital stock, in which event such surplus or reserve fund shall be restored in manner as above provided until it amounts to twenty-five per centum of the aggregate paid-up capital stock. A larger surplus or reserve fund may be created and nothing herein contained shall iie construed as prohibitory thereof. Enacted March 21. 1903; stats. L903, p. 353. Capital stock required to be advertised. § 583«. No banker, nor officer of any bank or corporation doing a banking business, shall advertise in any manner, or publish any statement of the capital stock authorized or sub- scribed, unless he advertise and publish in connection therewith, the amount of capital actually paid up. Any officer, or the officers of any bank or corporation doing a banking business, advertising in any manner, or publishing, a statement of the capita] stock ol such bank or banking corporation, authorized 168 civil code. § 583a or subscribed, without tbe statement in connection therewith of the stock actually paid up, shall be guilty of a misdemeanor. Enacted March 21, 1903; stats. 1903, p. 353. See, also, "Fraudulent Reports," statutes at large, Appendix. Unclaimed deposits — Statement required. § 5836. The president of every savings bank, savings and loan society, and every other bank, depository, society, or insti- tution in which deposits of money are made, whether any interest or dividend is paid, or agreed to be paid, thereon or not, must, within fifteen days after the first day of January of every odd-numbered year, return to the board of bank com- missioners a sworn statement showing the amount placed to his credit, the last known place of residence or post office address, and the fact of death, if known to such president, of every depositor who has not made a deposit therein or withdrawn therefrom any part of his deposit, or any part of the interest or dividends thereon, for a period of more than ten years next preceding. Such president must give notice of these deposits in one or more newspapers published in or nearest the town, city, or city and county where such bank, society, or other insti- tution is situated or has its principal place of business, at least once a week for four successive weeks, the cost of such publica- tion to be paid pro rata out of such unclaimed deposits. This section does not apply to any deposit made by or in the name of a person known to the president to be living, or which, with the accumulation thereon, is less than fifty dollars. The board of bank commissioners must incorporate in their subsequent report each return made to them as provided in this section. Any president of any of the institutions mentioned in this section who neglects or refuses to make the .sworn statement required thereby, is guilty of a misdemeanor. Enacted March 21, 190*5 ; stats. 1905, p. 581. Note. — § 5836. This section is a codification of the statutes of 1893, page 183, and 1897, page 27, the only change made being in the provisions concerning the person who is to make the report. The original statute provided that the report should be made by the president or secretary. It has been thought best to impose the duty upon a single officer, so that it can not be evaded by one officer, by his saying that if was the duty of the other, or that he had supposed the other had, or would, perform it. § 586 civil code. 169 TITLE XI. [Old title XI repealed, and new title XI substituted March 21, 1905 ; stats. 1905, p. 584.] Mining Corporations. (See. also, Civ. C. §§1426 to 1426s; "Mines and Mining," and "Hours of Labor," statutes at large, Appendix.) Sec. 586. Transfer agencies. 587. Stock issued at transfer agencies. 587a. Consolidation of mining corporations. 588. Books and balance sheets to be kept by secretary. Stockholders' right to inspect. 5 89. Right of stockholders to visit mine with expert. 590. Liability of president and directors. Transfer agencies. § 586. Any corporation organized in this state for the pur- pose of mining or carrying on mining operations in or without this state, may establish and maintain agencies in other states of the United States, for the transfer and issuing of their stock ; and a transfer or issue of the same at any such transfer agency, in accordance with the provisions of its by-laws, is valid and binding as fully and effectually for all purposes as if made upon the books of such corporation at its principal office within this state. The agencies must be governed by the by-laws and the directors of the corporation. Enacted March 21, 1905 ; stats. 1905, p. 584. 142 Cal. 392 ; VII Cal. App. Dec. 730. Note. — §§ 586, 587, 587a. Revises the whole of title XI of part IV of division first of the Civil Code, respecting mining cor- porations. Sections 586 and 587 are not changed, but simply re-enacted. Section 587a contains substantially the matter that was in section 361, the word "corporations" being substituted for "companies," and the words "and to cause notice of the time and place fixed for such meeting to be mailed to each stockholder of each of such corporations at his last known place of residence or business at least ten days before the time fixed for such meet- ing" being inserted. The matter added is designed to provide the mode in which notices may be served on stockholders. 8— CL. 170 CIVIL CODE. § 587 Stock issued at transfer agencies. § 587. All stock of any such corporation, issued at a transfer agency, must be signed by the president and secretary of the corporation, and countersigned at the time of its issue by the agent having charge of the transfer agency. No stock must be issued at a transfer agency unless the certificate of stock, in lieu of which the same is issued, is at the time surrendered for cancellation. Enacted March 21, 1905; stats. 1005. p. 585. Note. — See note to § 586. Consolidation of mining corporations. § 587«. It is lawful for two or more corporations formed, or" that may hereafter be formed, under the laws of this state, for mining purposes, which own or possess mining claims or lands adjoining each other, or lying in the same vicinity, to consolidate their capital stock, debts, property, assets, and franchises, in such manner and upon such terms as may be agreed upon by the respective boards of directors or trustees of such corporations so desiring to consolidate their interests; but no such consolidation must take place without the written consent of the stockholders representing two thirds of the capital stock of each corporation, and no such consolidation can, in any way, relieve such corporations, or the stockholders thereof, from any and all just liabilities ; and in case of such consolida- tion, due notice of the same must be given, by advertising, for one month, in at least one newspaper in the county where the said mining property is situated, if there is one published therein, and also in one newspaper published in the county where the principal place of business of any of said corporation is. And when the consolidation is completed, a certificate thereof, con- taining the manner and terms of such consolidation, must be filed in the office of the county clerk of the county in which the original certificate of incorporation of each of said corporations is filed, and a copy thereof must lie tiled in the office of the secre- tary of stale; such certificate must be signed by a majority of each board of trustees or directors of the original corporations, and il is their duly to call, within thirty days after the filing of such certificate, a meeting of the stockholders of all of said corporations so consolidated, to eled ;; board of trustees or directors for the consolidated corporation, for the year theUce § 587a civil code. 171 next ensuing; and to cause notice of the time and place fixed for such meeting to be mailed to each stockholder of each of such corporations at his last known place of residence or business at least ten days before the time fixed for such meeting. The said certificate must also contain all the requirements prescribed by section two hundred and ninety. Enacted March 23, 1905; stats. 1905, p. 7>s7,. 147 Cal. 060. Note. — See note to S 586. Books and balance sheets to be kept by secretary — Stockholders' rights to inspect. § 5S8. It is the duty of the secretary of every corporation formed for the purpose of mining, or conducting mining in California, whether such corporation lie formed and organized under the laws of the State of California or of any other state, territory, or foreign country, to keep at some place within the State of California an office and in such office to keep a com- plete set of books showing all receipts and expenditures of such corporation, the sources of such receipts, and the objects of such expenditures, and also all transfers of stock. All books and papers must, at all times during business hours, be open to the inspection of any stockholder. He is entitled to be accompanied by an expert, and to make copies or extracts from any such books or papers. He may. at reasonable hours, examine such mining property, accompanied by an expert, take samples, and make such other examination as he may deem necessary. It is the duty of the directors, on the second Monday of each and every month, to cause to be made an itemized account or balance sheet for the previous month, embracing a full and complete statement of all disbursements and receipts, showing from what sources such receipts were derived, and to whom and for what object or purpose such disbursements or payments were made ; also all indebtedness or liabilities incurred or existing at the time, and for what the same were incurred, and the balance of money, if any, on hand. Such account or balance sheet must be verified under oath by the president and secretary, and posted in some conspicuous place in the office of the company. It is the duty of the superintendent-, on the first Monday of each month, to file with the secretary an itemized account, verified under oath, showing all receipts and disburse- 172 civil code. § 588 ments made by him for the previous month, and for what said disbursements were made. Such account must also contain a verified statement showing the number of men employed under him, and for what purpose, and the rate of wages paid to each. He must attach to such account a full and complete report, under oath, of the work done in said mine, the amount of ore extracted, from what part of mine taken, the amount sent to mill for reduction, its assay value, the amount of bullion received, the amount of bullion shipped to the office of the company or elsewhere, and the amount, if any, retained by the superin- tendent. It is his duty to forward to the office of the company a full report, under oath, of all discoveries of ores or mineral- bearing quartz made in said mine, whether by boring, drifting, sinking, or otherwise, together with the assay value thereof. All accounts, reports, and correspondence from the superintendent must be kept in some conspicuous place in the office of said com- pany, open to the inspection of all stockholders. Enacted March 21, 1905 ; stats. 1905, p. 585. Note. — &§ 5S8, 589, 590. The statute of 1873-4, page 866, as amended in 18S0, page 134, and 1897, page 38, is codified in the above sections, the only substantial change made being in the omission of the proviso in section 1 of the amendatory act of 1897, limiting its provisions to corporations "whose stock is listed and offered for sale at public exchange." The provisions of the part of the section omitted are unconstitutional. (See Johnson vs. Tautphaus, 127 Cal. 605.) The following citations refer to the act of 1873-4, which is codified in §§ 588, 589, 590. I 19 Cal. 303 ; 127 Cal. 287, 605. Right of stockholders to visit mine with expert. § 589. Any stockholder of a corporation formed under the laws of this state for the purpose of mining, is entitled to visit, accompanied by his expert, and examine the mine or mines owned by such corporation, and every part thereof, at any time he may see fit ; and when such stockholder applies to the presi- dent of such corporation, he must immediately cause the secre- tary thereof to issue and deliver to such applicant an order, under the seal of the corporation, directed to the superintendent, commanding him to show and exhibit such parts of said mine or mines as the party named in said order may desire to visit and examine. It is the duty of the superintendent, on receiving § 589 civil code. 173 such order, to furnish such stockholder every facility for making a full and complete inspection of said mine or mines, and of the workings therein, and to accompany said stockholder either in person, or to furnish some person familiar with said mine or mines to accompany him in his visit to and through such mine or mines, and every part thereof. If the superintendent fails to obey such order, such stockholder is entitled to recover, in any court of competent jurisdiction, against the corporation, the sum of one thousand dollars, and traveling expenses to and from the mine, as liquidated damages, together with costs of suit. In case of such refusal, it is the duty of the directors of the corporation forthwith to remove the officer so refusing, and thereafter he must not be employed directly or indirectly by the corporation, nor must any salary be paid to him. Enacted March 21, 1905 ; stats. 1905, p. 586. Note. — See note to § 588. Liability of president and directors. § 590. In case of the refusal or neglect of the president to cause to be issued by the secretary the order mentioned in sec- tion five hundred and eighty-nine, such stockholder is entitled to recover against said president the sum of one thousand dollars and costs, as provided in the last section. If the directors fail to have the reports and accounts current made and posted as provided in section five hundred and eighty-eight, they are liable, either severally or jointly, to an action by any stock- holder complaining thereof, and on proof of such refusal or fail- ure, he may recover judgment for actual damages sustained by him, with costs of suit. Each of such defaulting directors is also liable to removal for such neglect. Enacted March 21, 1905 ; stats. 1905, p. 587. VII Cal. App. Dec. 730. Note. — See note to § 5 88. 174 CIVIL CODE. § r>91 TITLE Xla. [Title XI« added March 21, 1905; stats. 1905, p. 588.] Corporations for the Formation of Chambers of Commerce, Boards of Trade, Mechanics' Institutes, and Other Kindred Associations. Sec. 591. Formation, organization, and powers of. 592. Capital stock and certificates of. 592a. Powers which may be conferred on the trustees, direct- ors, or the executive committee. 592Z). Power to acquire, sell, possess, and use property. 592c. The by-laws. 592d. Power to levy and collect assessments. 592e. Pie-existing corporations may become entitled to the benefit of this title. Formation, organization, and powers of. S 591 . Corporations for the formation and organization of chambers of commerce, boards of trade, mechanics' institutes, and other associations formed for the extension and promotion of trade and commerce, or the advancement, protection, and improvement of the mechanic arts, may be formed by twenty or more persons, who must execute and tile articles of incorporation as prescribed in chapter one of title one of part four of this code. Upon receiving from the secretary of state a certificate of the filing with him of a certified copy of its articles of incor- poration, such corporation becomes a body corporate, and by its corporate name has succession for the period limited in its articles, and power: (1) To sue and be sued in any court; (2) to make and use a common seal, and alter it at pleasure ; (3) to lease, purchase, hold, sell, mortgage, convey in trust, convey, release from trust or mortgage, such real and personal property as hereinafter provided; (4) to elect and appoint such officers, agents, and servants as the business of the corporation may require; and (5) to make by-laws, not inconsistent with the laws of this state, providing for the organization of the corporation and the management of its affairs. No corporation § 591 CIVIL CODE. 175 formed under this title must engage in any mercantile, com- mercial, or mechanical business. Enacted March 21, 1905 ; stats. 1905, p. 588. Note. — §§591, 592, 592a. 592ft, 592c, 592«\ 592c. Adds a new title to the code, designated "Corporations for the formation of chambers of commerce, boards of trade, mechanics' institutes, and other kindred organizations," the matter contained in said chapter^ being a codification of the statute of 1865-6, page 469, as amended in 1867-8, page 5, and 1885, page 76, respecting chambers of commerce. Capital stock and certificates of. § 592. Every corporation formed under this title may have a capital stock and issue certificates to represent the shares thereof, if the articles of incorporation contain a statement of the amount of its capital stock and the number of shares into which it is divided. The rights and privileges to be accorded to stockholders are distinct from those to be accorded to mem- bers at large of the corporation, and the obligations to be imposed upon stockholders in the same relation must be fixed and estab- lished in the by-laws of the corporation. Enacted March 21, 1905; stats. 1905, p. 5SS. Note. — See note to § 591. Powers which may be conferred on the trustees, directors, or the executive committee. § 592ff. The corporation may confer upon a board of trus- tees or directors, or upon a body to be styled the executive committee of the corporation, the right to exercise all or any of the corporate powers, if the articles of incorporation state that the right to exercise the corporate powers is to be confided to such board of trustees or directors or to such executive com- mittee, and the number of trustees, directors, or committee, and the names of those selected to take charge of the affairs of the corporation for the first six months. Enacted March 21, 1905 ; stats. 1905, p. 588. Note. — See note to § 5 91. Power to acquire, sell, possess, and use property. § 592?>. Every corporation formed under this title may lease, purchase, have, hold, use, take possession of, and enjoy in fee simple or otherwise any personal or real property within the state necessary for the uses and purposes of the corporation. 176 civil code. § 5926 and may sell, lease, deed in trust, alien, or dispose of the same at its pleasure. Enacted March 21, 1905 ; stats. 1905, p. 589. Note. — See note to § 591. The by-laws. § 592c. The by-laws of any corporation formed under this title without capital stock must prescribe how members of the corporation shall be admitted and how expelled, and how officers, agents, and servants shall be appointed. Such provisions in the by-laws have force and effect as between private parties and the corporation. All corporations formed. under the provisions of this title must determine, by their by-laws, the manner of calling and conducting their meetings, the number of members that constitute a quorum, the manner of levying and collecting- assessments, the officers of the corporation, the manner of their election or appointment and their tenure of office, and may pre- scribe suitable penalties for the violation of such by-laws, not exceeding in any case one hundred dollars for any one offense. Enacted March 21, 1905 ; stats. 1905, p. 589. Note. — See note to § 591. Power to levy and collect assessments. § 592d. Every corporation formed under the provisions of this title has power to levy and collect, from the members thereof, for the purpose of paying the proper and legal expenses of the corporation, assessments in such manner as may be pre- seribed by its by-laws, but not otherwise. Enacted March 21, 1905; stats. 1905, p. 589. Note. — See note to § 591. Pre-existing corporations may become entitled to the benefit of this title. § 592e. Every corporation, association, or institution formed prior to the enactment of this title, for any of the purposes contemplated thereby, may, by a vote of the majority of its mem- bers voting at a meeting called for that purpose, become entitled to the benefit thereof on filing the certificate hereinafter required. Notice of such meeting and of its object must be published in a newspaper of' general circulation in the county in which the principal place of business of the corporation, association, or institution is located, for at least two weeks before the day on § 592e civil code. 177 which the meeting is to be held. Such certificate must be signed and acknowledged by at least five members of the corporation, association, or institution, must contain a list of the members who desire to become members, and must be filed with the county clerk of such county, and a copy thereof, certified by him, must be filed with tbe secretary of state. Thereupon such corpora- tion, association, or institution possesses all the powers and privileges conferred by this title. Enacted March 21, 1905 ; stats. 1905, p. 5S9. Note. — See note to § 591. TITLE XII. Religious, Social, and Benevolent Corporations, and Other Corporations Not Organized for Pecuni- ary Profit. Formation of corporations not for profit. Number of directors. Additional facts, articles of incorporation to set out. Amount of real estate limited. Land held by friendly societies and pioneers. Directors to make verified report annually. Sale and mortgage of real estate. What may be provided for in their by-laws, etc. Members admitted after incorporation. No member to transfer membership, etc. Religious societies may become sole corporations. 602a. Corporations sole, continuous existence. 603. Churches and religious societies, how incorporated. 604. Same. 605. Consolidation of like corporations organized for pur- poses other than profit. Formation of corporations not for profit — Number of directors. § 593. Any number of persons associated together for any purpose, where pecuniary profit is not their object, and for which individuals may lawfully associate themselves, may. in accordance with the rules, regulations, or discipline of the asso- !. 593. 594. 595. 596. 597. 598. 599. 600. 601. 602. ITS civil code. § 593 ciation, elect directors, the number thereof to be not less than three nor more than twenty-one, and may incorporate themselves as provided in this title. Amended March IS, 1907; stats. 1907, p. 579. 114 Cal. 300; 121 Cal. 321; 128 Cal. 2G0 ; XXXVI Cal. Dec. 328, 329. Note. — S 593. The change consists in substituting the word "title" for the word "part," the last word in the section. Benevolent and fraternal associations, secret societies, etc., exempt from insurance laws : See Pol. C § 030. Additional facts, articles of incorporation to set out. § 594. In addition to the requirements of section two hun- dred and ninety, the articles of incorporation of any association mentioned in the preceding section must set forth the holding of the election for directors in accordance with a resolution adopted at the last prior regular meeting, the time and place where the same was held, and that notice of such meeting was given to the members of said association ; that a majority of the members of such association who were present voted at such election, anil the result thereof; which facts must be verified by the officers conducting the election. Amended March 19, 1909; stats. 1909, p. 4G7 ; in effect in sixty days. 52 Cal. 333 ; 128 Cal. 200, 201, 202. Amount of real estate limited. § 595. All such corporations may hold all the property of the association owned prior to incorporation, or acquired there- after in any manner, and transact all business relative thereto; but no such corporation must own or hold more real estate than may be necessary for the business and objects of the association, and providing burial grounds for its deceased mem- be*s, not to exceed six (0) whole lots in any city or town, nor more than fifty (50) acres in the country, the annual increase, income or profit, whereof must not exceed fifty thou- sand ($50,000) dollars; provided, that any such corporation now or hereafter having, and having had continuously, for the next preceding three (3) years, the care, custody, control, and maintenance each year, upon an annual average of not less than one hundred (100) orphans, half orphans, -and indigent minor children, at any one orphan asylum, shall be entitled and allowed 5 595 civil code. 179 to own and possess any number of acres not exceeding one hun- dred and sixty (100) acres of land in the country, outside of any incorporated city or town, and the annual income or profit of which does not exceed fifty thousand ($50,000) dollars; and provided further, that the limitations herein provided for shall not apply to corporations formed, or to be formed, under section six hundred and two (602) of the Civil Code, when the land is held or used for churches, hospitals, schools, colleges, orphan asylums, parsonages, or cemetery purposes, or to corporations organized for social purposes and purposes of recreation and not for profit; and provided further, that the limitations herein pro- vided for shall not apply to corporations organized other than for profit, when the land is timber land, and not exceeding one hun- dred and sixty (1G0) acres in extent, and is held or used for the purposes of the organization, in which case said land shall be subject to all laws regulating the preservation of forests. Amended February 21. 1905; stats. 1905, p. 18. 114 Cal. 300 ; 119 Cal. 483. Land held by friendly societies and pioneers. §596. In addition to (hat provided for in the preceding sec- tion, friendly societies and pioneer associations may hold such real estate as may be necessary to carry out their charitable purposes, or for the establishment and endowment of institu- tions of learning connected therewith. In case any such corpo- ration is the owner, by donation or purchase, of more lands than herein or in preceding section provided for, such surplus must be sold and conveyed by the corporation within five years after its acquisition. Such sale may be made without the order or decree of the superior court, as hereinafter provided. Amended April 6, 1880; amendts. 1880. p. 6. Directors to make verified report annually. § 597. The directors must annually make a full report of all property, real and personal, held in I nisi for their corpora- tion by them, and of the condition thereof, to the members of the association for which they are acting. Enacted March 21. 1871'. Sale and mortgage of real estate. §598. Corporations of the character mentioned in section five hundred and ninety-three may mortgage or sell the real property held by them, and may secure the payment of indebted- 180 civil code. § 598 ness by deed of trust or mortgage upon their real property, upon obtaining an order for that purpose from the superior court held in the county in which the property is situated. The corpora- tions above mentioned may also issue bonds, payable at any time within twenty years, as evidence of the indebtedness secured by mortgage or deed of trust. Before making the order, proof must be made to the satisfaction of the court that notice of the application for leave to sell or mortgage or execute a deed of trust has been given by publication in such manner and for such time as the court or the judge has directed, and that it is to the interest of the corporation that leave should be granted as prayed for. The application must be made by petition, and any mem- ber of the corporation may oppose the granting of the order, by affidavit or otherwise. But nothing herein contained shall pro- hibit or prevent the trustees or directors of such corporation, under such rules and regulations as they may adopt, from dis- posing of burial plots situated in grounds of such corporation dedicated for burial purposes, without making such application to or obtaining an order from court. Amended March 20, 1891 ; stats. 1891, p. 179. XXXVI Cal. Dee. 328, 329, 330, 331. What may be provided for in their by-laws, etc. § 599. Corporations now organized or that may hereafter be organized for purposes other than profit, may, either in their by-laws, ordinances, constitutions, or articles of incorporation, provide for : 1. The qualification of members, mode of election or appoint- ment, and terms of admission to membership ; 2. The fees of admission and dues to be paid to their treasury by members ; 3. The number of persons that shall constitute a quorum at any meeting of the corporation, and that an election of officers of the corporation by a meeting so constituted, or the appoint- ment or selection of such officers, or any of them, in any manner required by the rules, regulations, or discipline of any specified religious denomination, society, or church, shall be as valid as if made at an election at which a majority of the members of the corporation were present and voted ; 4. The expulsion and suspension of members for misconduct or non-payment of dues, also for restoration to membership ; § 599 CIVIL CODE. 181 5. A special method of organizing the board of directors, and a special method of increasing or diminishing the number of directors within the limits as to number prescribed by section five hundred and ninety-three of this code ; 6. Contracting, securing, paying, and limiting the amount of their indebtedness ; 7. That the rules, regulations, or discipline, for the time being, of any specified religious denomination, society, or church, shall always be a part of their by-laws, ordinances, constitutions, or articles of incorporation ; 8. Other regulations not repugnant to the constitution or laws of the state and consonant with the objects of the corporation. Amended March 31, 1897; stats. 1897, p. 24G. 90 Cal. 243 ; 142 Cal. 495. By-laws of corporations for religious and benevolent purpose also referred to in Civ. C. § 378. Members admitted after incorporation. § 600. Members admitted after incorporation have all the rights and privileges, and are subject to the same responsibilities, as members of the association prior thereto. Enacted March 21, 1872. No member to transfer membership, etc. § 601. No member, or his legal representative, must dispose of or transfer any right or privilege conferred on him by reason of his membership of such corporation, or be deprived thereof, except as herein provided. Enacted March 21, 1872. Religious societies may become sole corporations. § 602. Whenever the rules, regulations, or discipline of any religious denomination, society, or church so require, for the administration of the temporalities thereof, and the manage- ment of the estate and property thereof, it shall be lawful for the bishop, chief priest, or presiding elder of such religious denom- ination, society, or church to become a sole corporation, in the manner prescribed in this title, as nearly as may be, and with all the powers and duties, and for the uses and purposes in this title provided for religious incorporations, and subject to all the conditions, limitations and provisions in said title prescribed. Every corporation sole shall, however, for the purposes of the trust, have power to contract in the same manner and to the 182 civil code. § 602 same extent as a natural person, and .may sue and be sued, and may defend, in all courts and places, in all matters and proceedings whatever, and shall have authority to borrow money and give promissory notes therefor, and to secure the payment thereof by mortgage or other lien upon property, real or per- sonal ; to buy, sell, lease, mortgage, and in every way deal in real and personal property in the same manner that a natural person may, and without the order of any court ; to receive bequests and devises for its own use or upon trusts to the same extent as natural persons may ; and to appoint attorneys in fact. The articles of incorporation to be filed shall set forth the facts authorizing such incorporation, and declare the manner in which any vacancy occurring in the incumbency of such bishop, chief priest, or presiding elder is required by the rules, regulations, or discipline of such denomination, society, or church to be filled, which statements shall be verified by affidavit, and for proof of the appointment or election of such bishop, chief priest, or presiding elder, or of any succeeding incumbent of such corporation, it shall be sufficient to record with the clerk of the county in which such bishop, chief priest, or presiding elder resides, the original or a copy of his commission, or certificate, or letters of election or appointment, duly attested ; provided, all property held by such bishop, chief priest, or presiding elder shall be in trust for the use, purpose and behoof of his religious denomination, society, or church. The limitation in section five hundred and ninety-five shall not apply to corporations formed under this section, when the land is held or used for churches, hospitals, schools, colleges, orphan asylums, parsonages, or ceme- tery purposes. Any judge of the superior court in the county in which any corporation is formed under I Ids chapter shall at all times have access to the books of such incorporation. Any corporation sole heretofore organized and existing under the laws of this state may elect to continue its existence under this title by filing a certificate to that effect, under its corporate seal and the hand of its incumbent, or amended articles of incorpora- tion, in the form required by this title, and as prescribed by sec- tion two hundred and eighty-seven of this code : and from and after the filing of such certificate or amended articles, such cor- poration shall be entitled to the privileges and subject to the duties, liabilities and provisions in this title expressed. Amended March 11, 1897; stats. Is'!?, p. 101. !)1 Cal. 101. § 602a civil code. ' ^ :; Corporations sole, continuous existence. - § 602d. Every corporation sole shall have continued succes- sion and continuous existence during the term for which it is organized to exist, notwithstanding vacancies in the incum- bency thereof, and during the period of any such vacancy such corporation sole shall have the same capacity and right to receive and take any gift, bequest, devise or conveyance of property, either as grantee for its own use. or as trustee, and to be or be made the beneficiary of a trust, as though there were no vacancy. No agency created by a corporation sole by a written instrument which in express terms provides that the agency thereby created shall not be terminated by a vacancy in the incumbency of such corporation, shall be terminated or affected by the death of the incumbent of such corporation or by a vacancy in the incumbency thereof, however caused. Enacted March 21, 1007; stats. 1907, p. 836. Churches and religious societies, how incorporated. § 603. Whenever the regulations, rules, or discipline of any church or religious society require, for the administration of the temporalities thereof, or for the management of the property or estate thereof, any diocese, synod, or district organization of such church or religious society may elect directors and become an incorporation in the manner prescribed in this title, and with all the powers and duties, and for the uses and purposes, in this title provided for benevolent or religious incorporations, and subject to all the conditions, limitations, and provisions iu said title prescribed, except as otherwise provided in this sec- tion ; provided, that directors of such incorporation may be elected, and that the by-laws for its government may be made and amended, by the convention, synod, or other representative body of such church or religious society, in and for such district, in accordance with the constitution, by-laws, discipline, or regulation thereof, at any regular meeting, or special meeting called for that purpose; and provided, the certificate of incor- poration and of the election of directors to be filed shall be sufficiently signed and attested by the signature of the presiding officer and secretary of the representative convention, synod, or other such body, in which such election is held ; and pro- dded, all property held by such incorporation shall be in trust for the use, benefit, and purpose of the church or religious society by and for which such incorporation was formed, and in 184 civil code. § 603 and of which such diocese, synod, or other district is an organ- ized or constituent part ; and that the limitation in section five hundred and ninety-five shall not apply to corporations formed under this section, when the land is held or used for churches, hospitals, schools, colleges, asylums, parsonages, or cemetery purposes. Enacted March 12, 18S5 ; stats. 1885, p. 109. 114 Cal. 300 ; 12S Cal. 262. Same. § 604. Any church or other religious association in this state, composed of two or more constituent parishes, missions, con- gregations, or societies, having a common convention, synod, council, or other representative legislative body, may be incor- porated by such representative body under this part and sub- ject to the provisions of this title, except as otherwise provided in this section. The representative body of such religious asso- ciation electing to incorporate the same, shall determine the name of the proposed corporation, the purpose for which it is formed, the place where its principal business is to be trans- acted, the term for which it is to exist, and the number of its directors, and shall elect its directoi's for the first year. The articles of incorporation need only be signed and acknowledged by the presiding officer and secretary of such representative body, and in addition to the requirements of section two hundred and ninety, shall set forth the proceedings herein prescribed for said representative body, and that the same were duly had in accordance with the constitution, canons, rules, or regulations, governing the other proceedings of said representative body, and the time and place thereof. The directors of such corporation shall be elected annually by the representative body of the asso- ciation. The representative body providing for such incorpora- tion shall frame by-laws for the corporation, and such by-laws may be repealed or amended, or new by-laws may be adopted by any subsecpient representative body in accordance with the constitution, canons, rules, or regulations governing the other proceedings of such representative body. Such corporation may hold and administer not only the common property, funds, and money of such association, but also the property, funds, and money of any constituent parish, mission, congregation, or society. The limitation in section five hundred and ninety-five shall not apply to corporations formed under this section when § 604 civil code. 185 the land is held or used for churches, hospitals, schools, colleges, asylums, parsonages, or cemetery purposes. Enacted March 11, 1887 ; stats. 1887, p. 104. Consolidation of like corporations organized for purposes other than profit. § 605. Any corporation now or hereafter organized for pur- poses other than profit, may consolidate with any other like association or associations, or corporation or corporations. created either under the laws of the State of California, or under the laws of any other state or territory, so as to form a new or consolidated corporation, in such manner as may be authorized by the respective boards of directors or trustees of such associations or corporations by resolution adopted at meet- ings of the respective boards called for that purpose. The resolution to be adopted by each of the respective boards shall state the names of all the corporations or associations to be united by the consolidation, the name of the state or territory under the laws of which they are created or organized, and the dates of their respective incorporation, the name by which the new or consolidated corporation is to be called or known, the purposes for which it is to be formed, the place where its prin- cipal business is to be transacted, the term for which it is to exist, the number of its directors or trustees, and the names and residences of those who are appointed to act as such for the first year, and shall designate three or more persons by whom articles of incorporation of the new or consolidated corporation shall be subscribed and filed in compliance with this section. Articles of incorporation of the new or consolidated corpora- tion shall be subscribed and acknowledged by the persons so designated as last aforesaid in the manner required by section two hundred and ninety-two of this code. Said articles shall contain and set forth all the matters required by section two hundred and ninety of this code, and in addition thereto there shall be attached to said articles copies of the aforesaid resolu- tion of the several associations or corporations uniting in the consolidation, certified by the respective secretaries of such associations or corporations under the corporate seals thereof; and the said articles of incorporation shall in the body thereof refer to the said resolutions and to the certified copies thereof so attached, and by such reference make the said certified copies a part of the said articles. The said articles of incorporation shall be filed in the office of the county clerk of the county 186 civil code. § G05 where the principal business of the new or consolidated cor- poration is to he transacted, and a certified copy thereof in the office of the secretary of state, in the manner required by this code for the filing of original articles of incorporation ; and thereupon the secretary of state shall issue to the corporation, over the great seal of the state, a certificate in manner and form as provided by section two hundred and ninety-six of this code. From and after the filing of such certified copy of the articles of incorporation with the secretary of state the former associa- tions or corporations uniting in the consolidation and comprising the component parts of the new or consolidated corporation shall cease to exist, and the new or consolidated corporation shall succeed to all the rights, duties aud powers of the com- ponent associations or corporations, and shall be possessed of all the rights, duties and powers set forth in its articles of incor- poration not inconsistent with this title, and shall be subject to all the liabilities and obligations of the former component asso- ciations or corporations, and shall succeed to and become vested with all the property thereof, both real and personal, of every name and nature, and may make by-laws and do all things per- mitted by this title. Amended April 26, 1000; stats. 1000, p. 1004; in effect in sixty days. TITLE Xlla. [Title Xlla added March 21, 1905 ; stats. 1905, p. 590.] Societies for the Prevention of Cruelty to Children and Animals. Sec. 607. Formation of corporations. 607«. Power of to receive and dispose of property. 607b. Complaints for violating any law relating to children or animals. 607c. Magistrates and police officers to aid the corporation and its officers. 607d. Pre-existing corporations. 607e. Fines, penalties, and forfeitures, and the disposition to be made thereof. 607/\ Members and agents may be authorized to act as police officers. 607fjr. Children who may be arrested and brought before a court or magistrate for examination. g (JOT CIVIL CODE. 187 Formation of corporations. S 607. Corporations may be formed by any number of persons not less than five, a majority of whom must be citizens and resi- dents of this state, under the general provisions of this code, for the purpose of the prevention of cruelty to children or animals, or both. Enacted March 21, 1905 ; stats. 1005, p. 590. Note.— §§ 607, 607«, 607b, 607c, 607d, 607c, 607/". 607 with the purposes for which such cemetery was established or is being maintained. Such property and the proceeds or income thereof shall be invested and reinvested in bonds of the United States, or of this state, or of any municipality of this state, or in first mortgages on real estate, or in centrally located income-producing improved real estate in any city, or city and county in this state, if such investment is not repugnant to the terms of the bequest, grant or gift. Amended March 25, 1901 ; stats. 1001, p. 814. 138 Cal. -.r,7: 140 Cal. 232. TITLE XIV. Agricultural Fair Corporations. (See, also. "Agricultural Associations," statutes at large, Appendix.) Sec. 620. May acquire and hold real estate, how much. 621. Shall not contract debts or liabilities exceeding amount in treasury. 622. Not for profit. May iix fee, etc.. for membership. May acquire and hold real estate, how much. § 620. Agricultural fair corporations may purchase, hold, or lease any quantity of land, not exceeding in the aggregate one hundred and sixty acres, with such buildings and improvements as may be erected thereon, and may sell, lea.se, or otherwise dispose of the same at pleasure. This real estate must be held for the purpose of erecting buildings and other improvements i hereon, to promote and encourage agriculture, horticulture, mechanics, manufactures, stock-raising, and general domestic industry. Enacted .March 21, 1872. Shall not contract debts or liabilities exceeding amount in treasury. §621. Such corporation must not contract any debts or lia- bilities in excess of the amount of money in the treasury at the time of contract, except for the purchase of real property, for which they may create a debt no! exceeding live thousand dol- L9() CIVIL CODE. § 62] lars, secured by mortgage on the property of the corporation. The directors who vote -therefor are personally liable for any debt contracted or incurred in violation of this section. Enacted March 21, 1S72. Not for profit — May fix fee, etc., for membership. § 622. Agricultural fair corporations are not conducted for profit, and have no capital stock or income other than that derived from charges to exhibitors and fees for membership, which charges, together with the term of membership and mode of acquiring the same, must lie provided for in their by-laws. Such fees must never be greater than to raise sufficient revenue to discharge the debt for the real estate and the improvements thereon, and to defray the current expenses of fairs. Enacted March 21, 1872. 93 Cal. 36S. TITLE XV. [Old title XV repealed and new title XV substituted March 21, 1905 ; stats. 1005, p. 593.] Corporations to Furnish Light for Public Use. (.See, also. Constitution of California, art. XI, S 1!> ; Pol C. §§4410 to 4413.) Sec. 629. Duty to furnish gas or electricity. 630. When corporations may refuse to supply gas. 630«. When corporations may refuse to supply electric cur- rent for light. 631. Right to enter buildings for inspection. 632. Right to shut off supply of gas or electricity. Duty to furnish gas or electricity. § 629. Upon the application in writing of the owner or occupant of any building or premises distant not more than one hundred feet from any main, or direct or primary wire, of the corporation, and payment by the applicant of all money due from him, the corporation must supply gas or electricity as required for such building or premises, and can not refuse on the ground of any indebtedness of any former owner or occu- pant thereof, unless the applicant has undertaken to pay the § 629 CIVIL CODE. 1!>T same. If, for the space of ten days after such application, the corporation refuses or neglects to supply the gas or electricity required, it must pay to the applicant the sum of fifty dollars as liquidated damages, and five dollars per day as liquidated damages for every clay such refusal or neglect continues there- after. Enacted March 21, 1905; stats. 1905, p. 593. • J09 Cal. 144 ; 132 Cal. 211 ; 141 Cal. 706, 711. 712. Note. — £S 629, 630, 630«, 631, 632. The purpose of the amend- ment is to make the above sections applicable to electric .-is well as to gas-light corporations. To accomplish this, the following changes have been made: in section 629 the words "or direct or primary win" an- inserted after "main." and the words "or tricity" are inserted in two places after "gas." Section 6306 is a new section, to extend the provisions of the chapter "Electric light companies," and provides for advances similar to those made to gas companies by Subscribers. In section 631 the words "any owner or manager of gas of electric works, or agent of such owner or manager, exhibiting written authority, signed by such owner or manager, or" are inserted at the beginning of the section; the words "or electric light" are inserted after "gas"; the woids "or electricity" are inserted after "gas." ami the words "or electric meters" are inserted after "meters." In section 632 the words "or electricity" are added after "gas" in three places, : ! tli.- word "wires" is inserted after "pipes." When corporations may reft se to supply gas. S 630. .No corporation is required (o lay service pipe where serious obstacles exist ( () laying it. unless the applicant, if required, deposits in advance, with the corporation, a sum of money sufficient to pay the cost of laying such service pipe, or his proportion thereof. Enacted March 21, 1905 : stats. 1905, p. 593. Note. — See note to S 629. When corporations may refuse to supply electric current for light. S 630r/. Xo corporation is required to construct Hues lor the supply of electric current for light where serious obstacles exist. nor shall such corporation lie required to supply such current Erom a direct wire at a distance too remote from the gen- erating station, to insure a sufficient supply; nor is such cor- poration required to supply electric current for light from a 198 CIVIL CODE. § 630a primary wire carrying current of high voltage, unless the appli- cant deposit, in .advance, a sum of money sufficient to pay the actual costs of such construction and for the appliances required to supply electric current with safety at the proper voltage. Enacted March 21, 1905; stats. 1905, p. 598. Note. — See note to § 629. Right to enter buildings for inspection. § 631. Any owner, manager or superintendent of gas or electric light works, or agent of such owner, manager, or super- intendent, exhibiting written authority, signed by such owner, manager or superintendent, or any agent of a gas or electric light corporation exhibiting written authority signed by the president or secretary thereof for such purpose, may enter any building or premises lighted with gas or electricity supplied by such owner or corporation, to inspect the gas meters or electric meters therein to ascertain the quantity of gas or electricity supplied or consumed. Every owner or occupant of such build ing who hinders or prevents such entry or inspection must pay to the owner or corporation the sum of fifty dollars as liquidated damages. Enacted March 21. 1905 ; stats. L905, \>. 593. Note.— See note to § 629. Right to shut off supply of gas or electricity. § 632. All gas or electric light corporations may shut off the supply of gas or electricity from any person who neglects hi- refuses to pay for the gas or electricity supplied, or the rent of any meter, pipes, wires, fittings or appliances, provided by the corporation, as required by. his contract: and for the pur- pose of shutting off the gas or electricity in such case any employee of the corporation may enter the building or premises <>f such person, between the hours of eight o'clock in the fore- noon and six o'clock in the afternoon, of any day, and remove therefrom any property of the corporation used in supplying gas or electricity. Enacted March 21. 1905; stats. 1005. p. 594. 132 Cal. 212 ; 141 Cal. 700. 70S. Note. — See note to § 6l'!<. §633 civil code. 109 TITLE XVI. LOld title XVI repealed and new title XVI substituted March 23, 1907 ; stats. 1907, p. 923.] Building- and Loan Associations. (See, also. "Building and Loan Commissioners," statutes a.1 large, Appendix.) Sec. 633. Formation, powers, and organization. 6 34. Capital stock. 635. Retiring free shares. 636. Maturity of stock. 637. Loans — Prohibitions — Penalties. 638. Interest — Securities — Repayment of loans. 639. Arrears in payments — Default — Forfeitures. 640. Purchase of real estate. 641. Profits and losses. 642. Withdrawals. 643. Membership. 644. State supervision and control. 645. Annual report. 646. Foreign corporations — Deposit by. 647. Investment in and loans upon bonds. 648. Definition of building and loan association. 648«. Formation of building and loan associations. Rein corporation of existing associations. Formation, powers, and organization. § 633. Building and loan associations, as hereinafter hi this title defined, .shall have power to receive money and accumu late funds to be loaned, and to loan the same to their shareholders, investors and others; to permit shareholders and investors to withdraw part or all of their payments, investments or stock deposits, and to prescribe the terms and conditions of such withdrawal ; to cancel shares of stock, the payments on which have been withdrawn ; to receive deposits of money and to execute certificates therefor, which must specify the date, amount, rate of interest, and when the principal and interest are payable, and also the withdrawal value thereof at the end of each year; to borrow money for the purpose of making loans and of paying withdrawals and maturities; and shall have such further powers as may be specifically sel forth 200 civil code. § 633 under 1 his title. Every such corporation hereafter formed, in setting forth the purposes for which it is formed, shall state, in its articles of incorporation, that it is formed to encourage industry, frugality, home building, and savings among its share- holders and members; the accumulation of savings; the loaning tc its shareholders and members of the moneys or funds so accumulated, with the profits and earnings thereon, and the repayment to each, of his savings ;:nd profits, whenever they have accumulated to the full par value of the shares, or at any time when he shall desire the same <>r when the corporation shall desire to repay the samej as may be provided in the by-laws; and shall also state that it is formed for all the purposes sped Bed in this title. Enacted March 23, 1907; stats. 1907, p. 923. VIII Oal. App. Dec. 314. Capital stock. § 634. The capital stock of every such corporation shall be diyided into shares of the matured or par value of one hundred or two hundred dollars each, as provided by the articles of incorporation, and shall be paid in by the stockholders in the manner provided by the by-laws. All such payments shall be called dues. The shares shall be issued in such amounts and at such times as the board of directors shall determine, and certificates of stock shall be issued to each shareholder on the first paymenl of dues by him. Shares pledged as security for the repayment of a loan shall be called pledged shares, and all ethers, free shares. All stock matured and surrendered or can- celed, shall become the property of the corporation and may lie reissued. The capital stock shall consist of the accumulated dues together with the apportioned profits of the corporation. Any such corporation shall have power, by its by-laws, to impose and collect a fine from each stockholder, not exceeding five per cent of the defaulted amount, for every neglect or refusal to make his payment when payable. Such fines shall not be cumulative. Every such corporation shall also have power, by its by-laws, to charge an entrance or withdrawal fee. for each share of stock it may issue, net exceeding one dollar ou each share, and also to charge a transfer fee, not exceeding ten cents mi each share, all of which fees shall be accounted for by i he corporation like ether funds of the association. \'o other fee. § 634 CIVIL CODE. 201 charge or deduction shall ever be made, or permitted to be made against any shareholder, or against any of his shares hereafter issued, or the dues paid in thereon for the purpose of creating a fund to be used in the payment of current or running expenses. The capital stock may be issued in any or all of the following forms: installment stock, paid-up stock, and guarantee stock. Installment stock shall be stock on which the member or holder must pay to the corporation on each share held by him, dues in such amounts and at such times as the by-laws may provide and on which the payment of dues must continue on each shan' until, with the profits allotted thereto, it reaches its matured value or is withdrawn or canceled. Such stock may be issued in series, and when so issued, payment of dues on shares in each series shall commence with the issue of shares in such series. No share of a prior series shall be issued after the issue of shares of a new series, except by way of transfer. Paid-up stock shall be stock for and upon which the owner shall have paid to the corporation, the full par value thereof in cash at the time of subscription therefor, and upon which he shall be entitled either to full participation in the net profits of the corporation, or to an agreed rate of interest or dividend to be specified in the stock certificate, but not to exceed six per cent per annum. All such stock shall be issued under such regula- tions as may be provided in the by-laws and fully set forth in each certificate. Guarantee stock shall be stock, provided by the by-laws, to be set apart and sold as a fixed, permanent or guarantee capital. When any such stock has been once so set apart, sold and issued, it shall thereafter remain as a fixed, per- manent and guarantee capital, and shall be subject to all the conditions and liabilities attaching to the paid-in capital stock of other classes of corporations. Such guarantee stock shall protect and guarantee all other stockholders and creditors against any loss, and when once paid it must be kept unimpaired. Corporations specified in this title, issuing guarantee stock, may provide in their by-laws that a majority of the board of directors shall lie selected from the holders of such stock. Enacted March 23, 1907: stats. 1907. p. 924. Retiring free shares. § 635. The directors may in their discretion, under the regula- tions prescribed by the by-laws, retire any free shares of stock, other than those of the guarantee stock, by enforcing the with- 202 CIVIL CODE. ft 685 drawal thereof, but whenever the withdrawal of any shares is (o be enforced, the holders thereof must be paid the amount actually paid in, and the full amount of earnings at the date of retirement ; provided, that shares of installment stock shall not be forced out until after they shall have become four years old. Enacted March 23, 1907 ; stats. 1907, p. 925. Maturity of stock. § 636. When any slock shall have reached its matured value. payment of dues thereon shall cease. Borrowing stockholders whose loans are fully paid shall have (heir securities released and returned to them. Holders of free shares of stock shall be paid the matured value thereof out of the funds of the cor- poration, with interest at such rate as the by-laws shall provide, from the time the board of directors shall declare such shares to have been matured, until paid ; but at no time shall more than one half of the receipts of the corporation be applicable to the payment of matured shares without the consent of said board. The order of the payment of matured shares, if not otherwise determined by the by-laws, shall be in the numerical order of issuance. Enacted March 23, 1907 ; stats. 1907. p. 925. Loans — Prohibitions — Penalties. § 637. Loans may be made on such terms and conditions as may be prescribed by the board of directors or the by-laws. Loans may be made for a definite time on the installment plan. The number of installments in which a loan with agreed inter- esl is to be repaid, must be staled in the note or obligation evidencing the loan, and when the payments have been made in accordance with the contract, the borrower shall receive a release of the security given by him. It shall be unlawful for any director or officer of any corporation governed by this title, directly or indirectly, for himself, or as a partner or agent for others, to borrow any of the funds of such corporation, and any officer or director violating the provisions of this section shall be guilty of a felony. Any officer or director of any such corporation wdio consents on behalf of such corporation to make a loan to any officer or director of such corporation shall be guilty of a felony, and shall also be personally liable to the cor- poration for the full amount thereof. It shall be unlawful for § (537 civil code. 203 auy building and loan association to loan any of its funds upon any of its own guarantee stock as security. Any officer or director of an association who shall make any such loan for and on behalf of any such association shall be personally liable to the corporation for the full amount thereof, and shall also be deemed guilty of a felony. It shall be unlawful for any such corporation to invest any of its funds in, or loan any of its funds upon, any mining shares or mining stocks or the stocks or bonds of any corporation, except as in this title provided. Every officer or director who, on behalf of any such corporation shall make any such investment or loan, or who shall consent thereto, shall be personally liable to the corporation for the whole amount expended by the corporation in such investment or upon such loan, and shall also be deemed guilty of a felony. Enacted March 23, 1907 ; stats. 1907, p. 926. Interest — Securities — Repayment of loans. § 638. The board of directors may fix from time to time the rate of interest on loans. For every loan made, a note or obli- gation, secured by a first mortgage or deed of trust upon unin- cumbered real estate, shall be given, accompanied by a pledge to the association of shares of stock, as collateral security for the repayment of the loan, the matured value of which shall equal the amount of the loan, except that there need be no such pledge in loans made to others than members ; or, in lieu of a mortgage or deed of trust, there may be pledged to the asso- ciation, for the payment of the loan, free shares, but any such loan must not exceed ninety per cent of the withdrawal value of such shares under the by-laws, at the time of such borrowing. At the discretion of the board of directors, a borrower may repay, at any time, the loan with all interest and arrears thereon, upon the surrender of the shares pledged to secure the loan. Enacted March 23, 1907 ; stats. 1907, p. 926. Arrears in payments — Default — Forfeitures. § 639. Whenever any non-borrowing member shall be six months in arrears in the payment of his dues upon free shares, the secretary may give him notice thereof in writing, and a statement of his arrearages, by mailing the same to him at his last post office address given by him to the association ; and if he shall not pay all arrearages within two months thereafter, the board of directors may, at their option, declare his shares for- 204 civil code. § 630 feited, and at the time of such forfeiture, the withdrawal value thereof shall be determined and stated, and the defaulting mem- ber shall be entitled to withdraw the same without interest, upon such notice as shall be required of a withdrawing share- holder. Whenever a borrower shall be three months in arrears in the payment of his dues or interest or loan installments, the whole loan shall become due at the option of the board of directors, and they may proceed to enforce collection upon the securities held by the association. The withdrawal value, at the time of exercising such option, of all shares pledged as collateral security, shall be applied to the payment of the loan, and said shares from that time shall be deemed surrendered to the association and canceled. Enacted March 23, 1907 ; stats. 1907, p. 927. VIII Cal. App. Dec. 613, 615. Purchase of real state. § 640. Any such association may purchase at any sale, public or private, any real estate upon which it may have a mortgage, judgment, lien, or other incumbrance, or in which it may have au interest, and may sell, convey, lease, or mortgage the same at pleasure to any person or persons. Enacted March 23, 1907 ; stats. 1907, p. 927. Profits and losses. § 641. Profits and losses shall be apportioned at least annu- ally, and shall be apportioned to all shares in each class at the time of such apportionment, according to the actual or book value thereof. If the guarantee capital herein provided for, if any there be, together with the reserve fund, or if the reserve fund, where there be no guarantee capital, shall not equal five per cent of the outstanding loans at the time of each apportion- ment of profits, the directors shall set aside, as a reserve fund, not less than five per cent of the net profits accruing since the last prior apportionment, and shall continue so to do until said fund shall amount to at least five per cent of the loans in force, at which figure said fund shall thereafter be maintained. Said reserve fund shall at all times be available to meet losses arising from any source not heretofore provided to be assumed by the guarantee capital. Every such corporation having a paid-in guarantee capital stock, may provide in their by-laws, that an amount not exceeding one per cent per annum on the average § 641 CIVIL CODE. '-0;. loans in force, shall be set aside from and out of the net profits, at each annual distribution thereof, — or a proportionate amount at each semi-annual distribution, — from which to declare divi- dends on and provide a reserve fund that shall be specially applicable thereto. At least one tenth of the amount so set aside shall be carried to such reserve fund until the same shall amount to at least fifty per cent of the paid-in guarantee stock. Enacted March 23. 1007 ; stats. 1907, p. 927. Withdrawals. § 642. A stockholder or investor, desiring- to withdraw from any such corporation or to surrender a part or all of his stock, or investment certificate, may do so by giving thirty days' notice, in writing, of his intention or desire so to do. On the expira- tion of such notice, he is entitled to receive the full amount paid in upon the stock or investment certificate surrendered, exclusive of the entrance or withdrawal fee, together with such proportion of the earnings thereon as the by-laws may provide, or as may be fixed by the board of directors ; but not more than one half of the monthly receipts in any one month must be applied to withdrawals for that month, without the consent of the board of directors, and no stockholder must be permitted to withdraw whose stock is pledged to the corporation as security for a loan, until such loan is fully paid. All withdrawals must be paid in succession in the order that the notices of intention are given. Whenever the demands of withdrawing stockholders or investors exceed the money applicable to their payment, the notices of intention to withdraw must be registered in the order of filing and payments thereon must be made in succession, in the order that such notices were filed and registered. The board of directors may permit the withdrawal of a part of the accumulations to the credit of a stockholder or member, on shares of installment stock not issued in serial form, without thereby reducing the number of shares held by him. Enacted March 23. 1907 ; stats. 1907, p. 927. Membership. § 643. Any person of full age and sound mind may become a member of an association by taking one or more shares therein ami subscribing to the by-laws, and annexing to his signature his post office address. A minor may hold shares in the name -'06 civil code. § 648 of a parent, guardian, or nest friend, us trustee. The shares of stock in any such corporation held by any person, to the ix tent of one thousand dollars, shall be exempt from execution. Enacted March 23, 1907 ; stats. 1907, p. 928. See, also, Code Civ. Proc. § G90, subd. 19. State supervision and control. § 644. All building- and loan associations, as iu this title defined, doing business in this state, shall be under the super- vision and control of such official or officials as are by law vested therewith; and except in the manner provided in this title, no corporation, firm, or association shall conduct or carrj on the business of accumulating the savings of its shareholders, members, or investors, and loaning .such accumulations to them, in the manner of building and loan associations. Enacted March 23, 1907; stats. 1907, p. 928. Annual report. § 645. Every association organized under the provisions of this title, and every other association doing a similar business, shall annually make a full report, in writing, of the affairs and condition of such corporation, within thirty days after its annual meeting, to the official or officials vested with powers of state supervision and license. Such reports shall be verified by the oath of the officers making the same, and a copy of the same shall be delivered to every stockholder, from the office of the cor- poration, who may call for such report. Every association shall make any further reports which the said official or officials may require, and in such form and as to such matters relating to the conduct of the business of the association as such official or officials may designate. Any willfully false statement in making and verifying said report shall be perjury. Any such association which shall fail to furnish the said official or officials any such report required, within thirty days after demand, shall forfeit the sum of ten dollars per day for every day such repori shall be delayed or withheld, which may be recovered in an action brought by the attorney general in the name of the people of this state ; and all moneys so recovered shall be paid to the treasurer of this state, who shall pay the same into such fund as may be provided by law, for the purposes of the official or officials vested with power of supervision and license. Enacted March 23, 1907; stats. 1907, p. 928. See, also. "Fraudulent Reports." statutes at large, Appendfx. § 646 CIVIL CODE. 2(1? Foreign corporations — Deposit by. §646. No building and loan association, or company, associa- tion, or corporation, organized under the laws of any other state or territory, to carry on a business of a like character to that authorized by this title, shall be allowed to do business, or to sell their stock in this state, without first having deposited with the state controller or treasurer the sum of fifty thousand dollars in money, or in United States bonds or municipal bonds of this .state, or in mortgages upon real estate located within this state, as a guarantee fund for the protection and indemnity of residents of the State of California, with whom such companies, associations, or corporations .shall do business: the fund so deposited to be paid by the custodian thereof, to the residents of California only, and not then until proof of claim by final judgment has been filed with the custodian of said fund against such foreign company, association, or corporation. Any of the securities so deposited may lie withdrawn at any time upon others herein provided for. of like amount, being substituted therefor. Any person or persons who shall be found in this state as agent, or in any other capacity, representing such foreign company, association, or corporation, which has not complied with the provisions of this section, shall be deemed guilty of a misdemeanor, and upon conviction shall be punished by a fine not exceeding one thousand dollars, or by imprisonment in the county jail, not exceeding twelve months, or by both such fine and imprisonment. Enacted March 23. L907 ; stats. 1907, p. 929. Investment in and loans upon bonds. § 647. Any building and loan association may invest in or loan upon bonds of the United States, of the State of California. or of the counties or municipalities or school districts of said state, but not to exceed twenty-five per cent of its capital. Enacted March 23. 1907; shits. 1907. p. 929. Definition of building and loan association. § 648. The name '"building and loan associations" as used in this title shall include : First — Corporations formed for the purpose of receiving money from, and loaning money to, their members only. Second — Corporations, associations, companies, co-partner- ships, and individuals transacting the business of issuing or 208 CIVIL code. § 648 selling bonds, debentures, certificates, shares of stock, or other papers, by whatever names said instruments may be designated, whether said instruments are issued for money paid in advance or for money to be paid in installments, but with an intent, either implied or expressed, that the proceeds or accumulated installments thereof and thereon are to be withdrawable or repayable, with accumulated profits, at some future fixed, or indefinite date of maturity; provided always, that this section does not include persons, co-partnerships or corporations engaged in any kind of banking business. Amended March 22, 1900 ; stats. 1909, p. 609 ; in effect imme- diately. VIII Cal. App. Dec. 314. Formation of building and loan associations — Reincorporation of existing associations. § 648a. Building and loan associations may be formed under this title with or without guarantee or other capital stock, with all the rights, powers and privileges and subject to all the restrictions and liabilities set forth in this title. If formed without any capital stock or with guarantee capital stock only, the working capital may be accumulated by the issue of mem- bership shares, units or certificates having a paid up or ulti- mate matured installment value of one hundred or two hundred dollars each, and entitled to all the rights, powers and privi- leges and subject to all the restrictions and liabilities provided in this title for shares of authorized capital stock of a similar class. Any building and loan association heretofore formed may reincorporate under the provisions of this section and may substitute membership shares, units or certificates of similar classes for its outstanding or authorized shares of capital stock, other than guarantee capital stock, by the unanimous vote of its board of directors and by a vote or written assent of the stock- holders representing at least two thirds of the subscribed capital stock and by filing amended articles of incorporation with the county clerk of the county in which the corporation's principal place of business is located and a copy of said amended articles, certified by such county clerk, in the office of the secretary of state. New section; added March 25, 1909; stats. 1909, p. 721; in effect in sixty days. § 649 (i\ u, com;. - (> 9 TITLE XVII. Colleges and Seminaries of Learning. Sec. 649. TIow incorporated. 650. Term and power of trustees. 651. Reincorporation of existing corporations. How incorporated. S 649. Any number of persons who may desire to establish a college or seminary of learning may incorporate themselves as provided in this part, except that in lieu of the requirements of section two hundred ninety, the articles of incorporation shall contain : 1. The name of the corporation. 2. The purpose for which it is organized. 3. The place where the college or seminary is to be conducted. 4. The number of its trustees, which shall not be less than five nor more than twenty-five, and the names and residences of the trustees. The term for which the trustees named and their successors are to hold office may also be stated. If it is desired that the trustees, or any portion of them, shall belong to any organization, society, or church, such limitation shall 1 e stated. 5. The names of those who have subscribed money or prop erty to assist in founding tie' seminary or college, together with the amount of money and description of property subscribed. Amended February 20, 1909; stats. 1909, p. 30; in effect in sixty days. Term and power of trustees. §650. Unless otherwise provided in the articles of incorpora tion the board of trusters shall, as soon as organized, so classify themselves that one fifth of their number shall go out of office every year, and thereafter the trustees shall hold office for five years. A majority of the trustees shall constitute a quorum for the transaction of business, and the office of the corporation shall be at the college or seminary. The trustees shall have the power : 1. To elect, by ballot, annually one of their number as presi- dent of the board. 2. Upon the death, removal out of the state, or oiher vacancy in the office, or expiration of the term of any trustee, to elect 210 CIVIL CODE. § 650 another in his place; provided, that where there are graduates of the institution, such graduates may, under such rules as the board shall prescribe, nominate persons to fill vacancies in the board of trustees. Such nominations shall be considered by the board, but it may reject any or all such nominations, and of its own motion appoint others. 3. To elect additional trustees; provided, the whole number elected shall never exceed twenty-five at any one time. 4. To declare vacant the seat of any trustee who shall absent himself from eight succeeding meetings of the board. 5. To receive and hold, by purchase, gift, devise, bequest, or grant, real or personal property for educational purposes con- nected with the corporation, or for the benefit of the institution. G. To sell, mortgage, lease and otherwise use and dispose of the property of the corporation in such manner as they shall deem most conducive to the prosperity of the corporation. 7. To direct and prescribe the course of study and discipline to be observed in the college or seminary. 8. To appoint a president of the college or seminary, who shall hold his office during the pleasure of the trustees. 0. To appoint such professors, tutors, and other officers as they shall deem necessary, who shall hold their offices during the pleasure of the trustees. 10. To grant such literary honors as are usually granted by any university, college, or seminary of learning in the United States and in testimony thereof to give suitable diplomas under their seal, and the signature of such officers <>!' the corporation and the institution as they shall deem expedient. 11. To fix salaries of the president, professors, and other officers and employees of the college or seminary. 12. To make all by-laws and ordinances necessary and proper to carry into effect the preceding powers and necessary to advance the interests of the college or seminary; provided, that no by-laws or ordinances shall conflict with the constitution or laws of the United States, or of this state. Amended March 20, 1909; stats. 1909. p. 589; in effect in sixty days. Reincorporation of existing corporations. § 651. Any educational corporation, or body claiming to be such, now existing, may, by a unanimous vote of those of its trustees present at a special meeting called for that purpose, ami of which due notice shall be given to each trustee, convey § 651 CIVIL CODE. 211 all its property, rights, and franchises to a corporation organ- ized under this title. The fact that due notice of the meeting was given to each trustee shall be conclusively proven by the entries in the minutes of the corporation or body making the con- veyance. Said minutes shall be certified to be correct by the president and secretary. Enacted March 14, 18S5 ; stats. 1885, p. 134. TITLE XVIII. Consolidation of Colleges and Institutions of Higher Education. Sec. 65i. Societies and organizations authorized to consolidate. Trustees. Annual reports. 653. Transfer of property. Indebtedness. Specific grants. Dissolution. Societies and organizations authorized to consolidate — Trus- tees — Annual reports. § 652. Whenever any benevolent, religious or fraternal organ- ization or society, having a grand lodge, assembly, conference or other legislative or representative head in the State of Cali- fornia, having two or more colleges or institutions of higher education under its patronage, shall, for the purpose of greater efficiency and simplicity in the administration of its educa- tional interest, desire to consolidate such institutions under one management, such organization or society shall be and is hereby authorized to consolidate such institutions under one manage- ment by complying with the following provisions : Such grand lodge, assembly, conference or other legislative or representative head having authorized a consolidation of its institutions, a new corporation shall be formed. The board of trustees of the new corporation shall at first consist of the per- sons constituting the boards of trustees of the several institu- tions, respectively thus consolidating, and others; provided, the number of trustees shall not exceed forty-five. The board of trustees shall be so classified that the term of office of one third of its number shall expire each year; the successors of such trustees, as their terms expire, shall be elected by such grand lodge, assembly, conference or other legislative or rep- resentative head, at its annual meeting. 212 civil coin:. § 652 The said board of trustees skull report annually to the grand lodge, conference, assembly or other legislative or representa- tive head controlling it, the condition of affairs of such cor poration, and the amount and manner of its receipts and expenditures. After the two or more colleges or institutions of higher edu- cation under the patronage of any benevolent, religious or fraternal organization or society, having a grand lodge, assembly, conference or other legislative or representative head in the State of California shall have become consolidated as herein- above directed or specified, the board of trustees of the new corporation, consisting al first of the persons constituting the boards of trustees of the several institutions, respectively thus consolidated, may be reduced in number after said board of trustees shall have transacted the business of said corpora- tion for a period of five years after such consolidation. Said number shall be reduced by the grand lodge, assembly, con- ference or other legislative or representative head of said col- leges or institutions of higher education iu the following man- ner, viz. : At any annual session of such grand lodge, assembly, conference or other legislative or representative head, there shall be dropped from the number of trustees to be elected at that session of such grand lodge, assembly, conference or other legis- lative or representative head such a number of trustees as those present at such session shall determine, provided, however, that at no lime shall the number of trustees composing such board be less than fifteen. Amended .March 1."".. 1909; slats. 1909, p. 3S5j in effeel in sixty days. Transfer of property — Indebtedness — Specific grants — Dissolu- tion. S 653. The several boards of trustees of the institutions thus consolidated shall be and are hereby authorized and directed to transfer all property, real and personal, held by them, to the new corporation, as herein constituted, together with all powers, privileges, and authority conferred upon or enjoyed by them under their respective charters or acts of incorporation. The new corporation receiving such property shall assume all indebt- edness and liabilities of such institutions as are thus con- solidated, but shall not transfer such property from one loca- § 653 civil code. 213 tion to another, except by au affirmative vote of not less than three fourths of the said board of trustees of the new corpora- tion, nor divert specific grants, donations, or bequests from the purposes for which such grants, donations, or bequests were made. That after the boards of trustees have conveyed the property, real and personal, of the various institutions to the new corporation, as hereinabove provided, aud the same has been accepted by the said new corporation, then the franchises held by the corporations thus consolidating shall cease, and the said corporations shall be thereby dissolved. Amended March 9, 1895; stats. 1895, p. 40. TITLE XIX. [Title XIX added March 21, 1905; stats. L905, p. 594.] Co-operative Business Corporations. Sec. 653a. Purposes Cor which may be formed. Purposes for which may be formed. §653'/. Cooperative business corporations may be formed for doing any lawful business, and dividing a portion of their profits among persons other than their stockholders. Each of such corporations may, in its by-laws, in addition to the matters specified in section three hundred and three, provide the amount of profits which must be divided among persons other than its stockholders, and the manner in which and the persons among whom such division may be made. Enacted March 21, 1905; stats. 1905, p. 594. Note. — § 653a. This section is a codification of that part of the statute of 1877-8, page 883, denning co-operative corporations, and the section is placed in a new title designated "Co-operative Business Corporations." That part of the statute declaring thai the by-laws may provide for the number of votes to which each shareholder shall be entitled is omitted for the reason that it is special legislation, and probably unconstitutional within the decision in Krause vs. Durbrow, 127 Cal. 681. 214 civil CODE. § 653b TITLE XX. [Title XX added March 21, 1905 ; stats. 1905, p. 595.] Co-operative Business Associations. Sec. 653 b. Formation and purposes of. 653c. Rights, interests, and liabilities of members. 653d. The articles of association. 653e. The by-laws. 653f. Execution against the association or its members. 653 y. Purposes of the association, how may be altered. 653ft. Powers of the association. 6531 Consolidation of associations. 653j. Dissolution and winding up of association. 653fc. Quo warranto to inquire into the right of an associa- tion to do" business. 653?. What corporations or associations are not affected by this title. Formation and purposes of. 8 653b. Five or more persons may form a cooperative asso- ciation for the transaction of any lawful business, whether for profit or not, or for the promotion of any educational, indus- trial, benevolent, social, or political purpose. Such association must not have any capital stock, but must issue membership certificates to each member. Such certificate can not be assigned, so that the assignee can. by its transfer, become a member of the association, but, by a resolution of its board of directors, such certificate may be transferred, and the transferee made a member in lieu of the last former holder. Enacted March 21. 100.1: stats. L905, \<. 595. Note. — §8 653b, 653c, 653d, 653e, 653f, 653f/, 653/i, 653i, 6 653ft, 653/. The statute of 1895, page 221, is codified in the above sections, which are placed in a title designated "Co-opera- tive Business Associations:" Rights, interests, and liabilities of members. § 653c. In such association the rights and interests of all members are equal, and no member can have or acquire a greater interest therein than any other member has. At every election held pursuant to the by-laws each member must be entitled to cast one vote and no more. All persons above the age of eighteen years, regardless of sex, are eligible to membership, if § 653c civil code. 215 otherwise qualified ami elected as the by-laws may provide. The by-laws must provide for the amount of the indebtedness which such association may incur. And no member shall be respon- sible individually, or personally liable, for any of the debts or liabilities of the association in excess of his proportion of such indebtedness ; but in case of the failure and insolvency of such association, may be required to pay any unpaid dues or install- ments which have, before such insolvency, become due from such member to the association, pursuant to its by-laws. Enacted March 21, 1905: stats. 1005. p. 595. X"te. — See note to § 653b. The articles of association. § 653 written in a book, ami subscribed by the 216 civil code. § 653e members adopting the same, and the same cannot be amended or modified except by the vote of a majority of all the members, after notice of the proposed amendment, given as the by-laws may provide. Such association may, by its by-laws, provide for the time, place, and manner of calling and conducting its meet- ings; the number of directors, the time of their election, their term of office, the mode and manner of their removal, the mode and manner of filling vacancies in the board caused by death. resignation, removal, or otherwise, and the power and authority of such directors, and how many thereof are necessary to the exercise of the powers of such directors, which must be at leasl a majority; the compensation of any of the directors, or of any officer ; the number of the officers, if any, other than the direct- ors, and their term of office ; the mode of removal, and the method of filling a vacancy ; the mode and manner of conducting business; the mode and manner of conducting elections, and may provide for voting by ballots forwarded by mail or other- wise, provided the method secures the secrecy of the ballot ; the mode and manner of succession of membership, and the qualifi- cations for membership, and on what conditions, and when mem- bership must cease, and the mode and manner of expulsion of a member, subject to the right of an expelled member to have the board of directors appraise his interest in the association in either money, property, or labor, as the directors may deem best, and to have the money, property, or labor so awarded him paid, or delivered, or performed within forty days after expulsion ; the amount of membership fee, and the dues, install- ments, or labor which each member must lie required to pay or perform, if any. and the manner of collection or enforce- ment, and for forfeiting or selling of membership interest for non-payment or non-performance ; the method, time, and manner of permitting the withdrawal of a member, if at all, and how his interest must be ascertained, either in money or property, and within what time the same must be paid or delivered to such member ; the mode and manner of ascertaining the inter- est of a member at his death, if his legal representatives or none of them desire to succeed to the membership, and whether the same must be paid to his legal representatives in money, or property, or labor, and within what time the same must be paid, or delivered, or performed; such other things as may 1>" proper to carry out the purpose for which the association was § 653e civil com:. -IT formed. The by-laws must provide for the time and manner in which profits must be divided among the members, and what proportion of the profits, if any, must be added to the common property or funds of the association. But the by-laws may provide that the directors may suspend or pass the payment of any such profit, or installment of earnings, at their discretion. The by-laws and all amendments must be recorded in a book and kept in the office of the association, and a copy, certified by the directors, must be filed in the office of the county clerk where the principal business is transacted. Enacted March 21, 1905; stats. 100".. p. 59G. Note. — See note to § 653?;. Execution against the association or its members. § 653f. The property of such association is subject to attach- ment and execution for its lawful debts. The interest of a member in such association, if sold upon execution, or any judicial or governmental order whatever, can not authorize the purchaser to have any right, except to succeed, as a member in the association, with the consent of the directors, to the rights of the member whose interest is thus sold. If the directors choose to pay or settle the matter after such sale, they may either cancel the membership, and add the interest thus sold to the assets or common property of the association, or reissue the share or right to a new member upon proper payment there- for, as the directors may determine. Enacted March 21, 1905 ; stats. 1905, p. 597. Note. — See note to § 653&. Purposes of the association, how may be altered. § 653g. The purpose of the business may be altered, changed, modified, enlarged, or diminished by a vote of two thirds of all the members, at a special election to be called for such pur- pose, of which notice must be given the same as the by-laws provide for the election of directors. Enacted March 21, 1905 ; stats. 1905, p. 597. Note. — See note to § 653 b. Powers of the association. § 653/i. Every association formed under this title has power of succession by its associate name for fifty years ; in such name to sue and be sued in any court ; to make and use a com- mon seal, and alter the same at pleasure: to receive by gift. 10— « i,. 2 IS civil couk. § 6537) devise, or purchase, hold, and convey real and personal prop- erty, as the purposes of the association may require ; to appoint such subordinate agents or officers as the business may require ; to admit associates or members, and to sell or forfeit their interest in the association for default of installments, or dues, or work, or labor required, as provided by the by-laws; to enter into any and all lawful contracts or obligations essential to the transaction of its affairs, for the purpose for which it was formed, and to borrow money, and issue all such notes, bills, or evidences of indebtedness or mortgage as its by-laws may provide for; to trade, barter, buy, sell, exchange, and to do all other things proper to be done for the purpose of carrying into effect the objects for which the association is formed. Enacted March 21, 1905 ; stats. 1905, p. 597. Note. — See note to § 653b. Consolidation of associations. $ 653i. Two or more associations formed and existing under this title, or under any preexisting law authorizing their forma- tion for the same purposes, may be consolidated, upon such terms, and for such purposes, and by such name, as may he agreed upon, in writing, signed by two thirds of the members of each such association. Such agreement must also state all the matters necessary to articles of association, and must be acknowl- edged by the signers before an officer competent to take an acknowledgment of deeds in this state, and be filed in the office of the county clerk of the county wherein the principal business of the association is to be transacted, and a certified copy thereof in the office of the secretary of state, and pay the same fees for filing and recording as required by this code for the filing and recording of the certified copy of the original articles of associa- tion; and from and after the filing of such certified copy, the former associations comprising the component parts cease to exist, and the consolidated association succeeds to all the rights, duties, and powers of the component associations, and is pos- sessed of all the rights, duties, and powers prescribed in the agreement of consolidated association not inconsistent with this title, and is subject to all the liabilities and obligations of the former component associations, and succeeds to all the property and interests thereof, and may make by-laws and do all things permitted by this title. Enacted March 21, 190.1; stats. 1005, p. 598. Note. — See note to § 653b. § 653./ civil com: 219 Dissolution and winding up of association. S 653./. Any association formed or consolidated under this title may be dissolved and its affairs wound up voluntarily by the written request of two thirds of the members. Such request must be addressed to the directors, and must specify reasons why the winding up of the affairs of the association is deemed advisable, and must name three persons who are members to act in liquidation and in winding np the affairs of the associa- tion, a majority of whom must thereupon have full power to do all things necessary to liquidation ; and upon the filing of such request with the directors, and a copy thereof in the office of the county clerk of the county where the principal business is transacted, all power of the directors ceases and the persons appointed must proceed to wind up the association, and realize upon its assets, and pay its debts, and divide the residue of its money among the members, share and share alike, within a time to be named in said written request, or such further time as may be granted them by two thirds of the members, in writing, filed in the office of said county clerk; and upon the completion of such liquidation the said association must be deemed dissolved. No receiver of any such association, or of any property thereof, or of any right therein, can be appointed by any court, upon the application of any member, save after judgment of dissolution for usurping franchises at the suit of the State of California by its attorney general. Enacted March 21, 1905: stats. 1005. p. 598. Note. — See note to § 6536. Quo warranto to inquire into the right of an association to do business. S 653/.'. The right of any association claiming to be organ- ized under this title to do business may be inquired into by quo warranto, at the suil of the attorney general of this state, but not otherwise. Enacted March 21, 1005; stats. 1905, p. 599. Note. — See note to S fir,3b. What corporations or associations are affected by this title. S 653/. This title is not applicable to railroads, telegraph, telephone, banking, insurance, building and loan, or any other corporation, unless the special provisions of this code, applica- ble thereto, are complied with. Enacted March 21, 1005; stats. 1905, p. 599. Note.— s--e note to § 653b. ( l2l!l> CIVIL CODE. t\T,:)m TITLE XXI. [Title XXI added February 12, 1909; stats. 1909, p. 16.] Non-Profit Co-operative Agricultural, Viticultural, and Horticultural Associations. Sec. 653m. Formation and purposes of. 653n. Membership. 65 3o. Articles of incorporation. 653p. By-laws. 653g. Powers of association. (>53r. Amendment of articles of incorporation. 653s. Quo warranto. Formation and purposes of. S 653w<. Three or more persons engaged in the production, preserving, drying, packing, shipping, or marketing of agricul- tural, viticultural or horticultural products, or all of them, may form a non-profit cooperative association under the provisions of this title, to carry on said business, and such association shall have, and may exercise, the powers authorized by this title, and the powers necessarily incidental thereto, and all other powers granted to private corporations by the laws of this state, except such powers as are inconsistent with those granted by this title. New section; added February 12, 1909; stats. 1909. p. lfi ; in effect in sixty days. Membership. § 653». Such association shall not have a capital stock, and its business shall not be carried on for profit. Any person or any number of persons, in addition to the original incorporators, may become members of such association, upon such terms and conditions as to membership, and subject to such rules and regulations as to their, and each of their, contract and other rights and liabilities between it and the member, as the said asso- ciation shall provide in its by-laws. The association shall issue a certificate of membership to each member, but the said mem- bership, or the said certificate thereof, shall not be assigned by a member to any other person, nor shall the assigns thereof be entitled to membership in the association, or to any property rights or interest therein. Nor shall a purchaser at execution § 653/J CIVIL CODE. 221 sale, or any other person who may succeed, by operation of law or otherwise to the property interests of a member, be entitled to membership, or become a member of the association by virtue of such transfer. The board of directors may, however, by motion duly adopted by it, consent to such assignment or trans- fer and to the acceptance of the assignee or transferee as a member of the association, but the association shall have the right, by its by-laws, to provide for or against the transfer of membership and for or against the assignment of membership certificates, and also the terms and conditions upon which any such transfer or assignment shall he allowed. New section: added February 12, 1909; stats. 1909, p. 17; in effect in sixty days. Articles of incorporation. § 653o. Each association formed under this title must pre- pare and file articles of incorporation setting forth: 1. The name of the association. 2. The purpose for which it is formed. 3. The place where its principal business will lie transacted. 4. The term for which it is to exist, not exceeding fifty years. 5. The number of directors thereof, which must not be less than three and which may be any number in excess thereof, and the names and residences of those selected for the first year and until I heir successors shall have been elected, and shall have accepted office. 6. Whether the voting power and the property rights and interest of each member shall be equal or unequal, and if unequal the articles shall set forth a general rule or rules appli- cable to all members by which the voting power and the property rights and interests, respectively, of each member may and shall be determined and fixed, but the association shall have power to admit new members who shall be entitled to vote and to share in the property of the association with the old members, in accordance with such general rule. This provision of the articles of incorporation shall not be altered, amended, or repealed except by the unanimous written consent or the vote of all of the members. 7. Said articles must be subscribed by the original members and acknowledged by one of them before an officer authorized by l lie law of this state, to take and certify acknowledgments 222 CIVIL CODE. § 653o of deeds of conveyance, and shall be filed in accordance with the provisions of section 296 of this code, and when so filed the said articles of incorporation or certified copies thereof shall bo received in all the courts of this state, and other places, as prima facie evidence of the facts contained therein. New section; added February 12. 1909; stats. 1909, p. 17: in effect in sixty flays. By-laws. § 653/j. Each association incorporated under this title must, within thirty days after its incorporation, adopt a code of by-laws for its government and management not inconsistent with the provisions of this title. A majority vote of the mem- bers or the written assent of members representing a majority of the votes is necessary to adopt such by-laws. The provisions of sections 303 and 304 of this code, which are not inconsistent with the provisions of this title, shall apply to the by-laws of I he corporations provided for iu this title. Each association may also, by its by-laws adopted as aforesaid, provide for the following matters : 1. The manner of removal of any one or more of its directors and for filling any and ail vacancies in the board of directors. "2. The number of directors and the number of members or votes thereof constituting a quorum. 3. The conditions upon which and the time when member- ship of any member iu the association shall cease ; the mode, manner and effect of expulsion of a member, subject to the right of the expelled member to have the board of directors equitably appraise his property interests in the association and to fix the amount thereof in money, and to have the money paid to him within sixty days after such expulsion. 4. The amount of membership fee, if any, and the amount which each member shall be required to pay annually, or from time to time, if at all, to carry on the business of the associa- tion, and also the compensation, if any, to be paid by each member for any services rendered by the association to him, and the time of payment and the manner of collecting the same, and for forfeiture of the interest of the member in the associa- tion for non-payment of the same. ."». The number and qualifications of members of the asso- eiation and the conditions precedent to membership and the § 653p civil code. 223 method, time and manner of permitting members to withdraw, and providing for the assignment and transfer of the interest of members, and the manner of determining the value of such interest and providing for the purchase of such interest by the association upon the death, withdrawal or expulsion of a mem- ber or upon the forfeiture of his membership, at the option of the association. 6. Permitting members to vote by their proxies, and deter- mining the conditions, manner, form and effect thereof. New section; added February 12, 1900; stats. 1000, p. 18; in effect in sixty days. Powers of association. § 653(/. Each association incorporated under this title shall have the powers granted by the provisions of this code and other laws of California relating to private corporations, and shall also have the following powers : 1. To appoint such agents and officers as its business may require, and such appointed agents may be either persons or corporations ; to admit persons to membership in the association, and to expel any member pursuant to the provisions of its by-laws ; to forfeit the membership of any member for violation of any agreement between him and the association, or for his violation of its by-laws. 2. To purchase or otherwise acquire, hold, own, sell and other- wise dispose of any and every kind or kinds of real and personal property necessary to carry on its business, and to acquire by purchase or otherwise the interest of any member in the prop- erty of the association. 3. Upon the written assent ur by a vote of members repre- senting two thirds of the total votes of all members to coop- erate with any other cooperative corporation or corporations for the cooperative and more economical carrying on of their respective businesses, by consolidation as provided in section U53t of this code, whereupon the effect of such consolidation shall be the same as declared in said section ; or upon resolu- tion, adopted by its board of directors, to enter into all neces- sary and proper contracts and agreements, and to make all necessary and proper stipulations and arrangements with any other cooperative corporation or corporations for the coopera- tive and more economical carrying on of its business, or any 224 civil code. § 653g part or parts thereof; or any two or more cooperative corpora- tions organized under this title, upon resolutions, adopted by their respective board of directors, may, for the purpose of more economically carrying on their respective businesses, by agreement between them, uuite in employing and using, or sev- eral associations may separately employ and use, the same methods, means and agencies, for carrying on and conducting Their respective businesses. 4. Any association formed or consolidated undei this title may be dissolved and its affairs wound up voluntarily by the written request of members representing rwo thirds of the total votes, in the manner and with the effect provided in section 653; of this code, except that the moneys remaining after liqui- dation shall be divided anion:; the members in proportion to their property interests therein. New section: added February 12, 1909; stats. 1909, p. 19; in effect in sixty days. Amendment of articles of incorporation. § 653r. Any corporation, whether stock or membership, here- tofore incorporated under the laws of this state for the pur- pose of engaging in and carrying on the business specified in section 653wi of this title, the stockholders or members of which would be entitled to incorporate under the provisions of this title, may. by the unanimous written assent or vote of all the stockholders or members, amend its articles of incorporation to conform to the provisions of this title in the manner and with the effect provided in section 362 of the Civil Code, and from the time of filing the amended articles, such corporation shall have the same powers as if it had originally incorporated under the provisions of this title: provided, however, that the debts, obligations, and other liabilities againsl such corpora- tion or against the members or the stockholders thereof, exist- ing at the time of such amendment, shall not be discharged or their collection or enforcement otherwise impaired : , § 653r civil code. — > but which rights shall be subject to the right of the association to admit new members. New section; added February 12, 1909; stats. 1909, p. 19; in effect in sixty days. "> Quo warranto. § 653*. The right of an association claiming to be organized and incorporated and carrying on its business under this title, to do and to continue its business, may be inquired into by quo warranto at the suit of the attorney general, but not otherwise. New section; added February 12, 1909; stats. 1909. p. 20; in effect in sixty days. TITLE XXII. [Title XXII added April 13, 1909 ; stats. 1909, p. S54.] Non-Profit Co-operative Corporations. Sec. 653t. Formation and purposes of. 653m. Membership. 653v. Articles of incorporation. 653to. By-laws. 653a;. Powers of corporation. 65 3y. Amendment of articles of incorporation. 653?. Quo warranto. 6532a. Particular corporations. 653sb. Voting. Formation and purposes of. § 653f. Non-profit cooperative corporations may be formed by the voluntary association of any three or more persons in the manner prescribed in this title. A majority of such persons must be residents of this state, and such corporation shall have and may exercise the powers authorized by this title, and the powers necessarily incident thereto, and also all other powers granted to private corporations by the laws of this state, except- ing such powers as are inconsistent with those granted by this title. New section; added April 13, 1909 ; stats. 1909, p. 854; in effect in sixty days. 226 civil code. § 653m Membership. § 653i/. Such corporation shall not have a capital stock, and its business shall uot be carried on for profit. Any person or any number of persons' including and in addition to the original incorporators, may become members of such corporation upon such terms and conditions as to membership, and subject to such rules and regulations as to their, and each of their, contract and other rights and liabilities between it and the member, as the said corporation shall prescribe in its by-laws. The corpora- tion shall issue a certificate of membership to each member, but the said membership, or the said certificate thereof, shall not, except as herein provided, be assigned by a member to any other person, nor shall the assigns thereof be entitled to membership in the corporation, or to any property rights or interest therein, nor shall a purchaser at execution sale, or any other person who may succeed, by operation of law or otherwise, to the property interests of a member, be entitled to membership, or become a member of the corporation by virtue of such transfer. The board of directors may, however, by motion duly adopted by it. consent to such assignment or transfer, and to the acceptance of the assignee or transferee as a member of the corporation. The corporation shall also have the right, by its by-laws, to provide for or against the transfer of membership and for or against the assignment of membership certificates, and also the terms and conditions upon which any such transfer or assignment shall be allowed. New section; added April 13, 1909; stats. 1909, p. 854; in effect in sixty days. Articles of incorporation. § 653v. Each corporation formed under this title must pre- pare and file articles of incorporation in writing setting forth : 1. The name of the corporation. 2. The purpose for which it is formed. 3. The place where its principal business will be transacted. 4. The term for which it is to exist, not exceeding fifty years. 5. The number of directors thereof, which must not be less than three and which may be any number in excess thereof, and the names and residences of those selected for the first year and until their successors shall have been elected, and shall have accepted office. § 653u civii, code. '-21 6. Whether the voting power and the property rights and interest of each member shall be equal or unequal, and if unequal the articles shall set forth a general rule or rules applicable to all members by which the votiug power and the property rights and interests, respectively, of each member may and shall be determined and fixed, but the corporation shall have power to admit new members who shall be entitled to vote and to share in the property of the corporation with the old members, in accordance with such general rule. 7. Said articles of incorporation shall be subscribed by three or more of the original members, a majority of whom must be residents of this state, and acknowledged by each before some officer authorized to take and certify acknowledgments of con- veyances of real property, and shall be filed in all respects in accordance with the provisions of section 296 of this code, and thereupon the secretary of state shall issue to the corporation, over the great seal of the state, a certificate that a copy of th<- articles containing the required statement of facts has been filed in his office, and thereupon the persons signing the articles and their associaties and successors shall be a body politic and corporate by the name stated in the certificate. When so filed, the said articles of incorporation or certified copies thereof shall be received in all the courts of this state, and other places, as prima facie evidence of the facts contained therein. New section; added April 13, 1900; stats. 1000, p. 855; in effect in sixty days. By-laws. § 653 w. Each corporation incorporated under this title must, within one month after filing articles of incorporation, adopt a code of by-laws for its government and management not incon- sistent with the provisions of this title. A majority vote of the members or the written assent of members representing a majority of the votes is necessary to adopt such by-laws. The provisions of sections 303 and 301 of this code, which are not inconsistent with the provisions of this title, shall apply to the by-laws of the corporation provided for in this title. Each cor- poration organized hereunder may also, by its by-laws adopted as aforesaid, provide for the following matters: 1. The manner of removal of any one or more of its directors and of tilling any and all vacancies in the board of directors. 228 con i!. code. § 653mj 2. The conditions upon which and the time when member- ship of any member in the corporation shall cease ; the mode, manner and effect of expulsion of a member, subject to the right of the expelled member to have the board of directors equitably appraise his property interests in the corporation and to fix the amount thereof in money, and to have the money paid to him within sixty days after such expulsion. 3. The amount of membership fee, if any, and the amount which each member shall be required to pay annually, or from time to time, if at all, to carry on the business of the corpora- tion, and also the compensation, if any, to be paid by each member for any services rendered by the corporation to him. and the time of payment and the manner of collecting the same, and may provide for forfeiture of the interest of the member in the corporation for non-payment of the same. 4. The number and qualifications of members of the corpo- ration and the conditions precedent to membership and the method, time and manner of permitting members to withdraw, and providing for the assignment and transfer of the interest of members, and the manner of determining the value of such interest and providing for the purchase of such interest by tin* corporation upon the death, withdrawal or expulsion of a mem- ber or upon the forfeiture of his membership, at the option of the corporation. New section; added April 13, 1900; stats. 1909, p. 855; in effect in sixty days. Powers of corporation. § 653a?. Each corporation incorporated under this title shall have the powers granted by the provisions of this code and other laws of California, relating to private corporations, which are not inconsistent with those granted by this title, and shall also have the following powers : 1. To appoint such agents and officers as its business may require, and such appointed agents may be either persons or corporations; to admit persons and corporations to membership in the corporation, and to expel any member pursuant to the provisions of its by-laws; to forfeit the membership of any mem- ber for violation of any agreement between him and the cor- poration or for his violation of its by-laws. 2. To purchase, lease or otherwise acquire, hold, own and enjoy, to sell, lease, mortgage and otherwise encumber and dis- § <'>■">:!'■ CIVIL CODE. 220 pos;' of any and all and every kind or kinds of real and personal property, also to carry on any and all operations necessary or convenient in connection with the transaction of any of its business. 3. Upon the written assent of two thirds of all the members or by a vote of members representing two thirds of the total votes of all members of each of two or more such non-profit cooperative corporations to cooperate with each other for the more economical carrying- on of their respective businesses by consolidation as provided in section 053* of this code, such con- solidation shall be effected, and thereupon the effect of such consolidation shall be the same as declared in said section. Any such corporation upon resolution, adopted by its board of direct- ors, shall have the power to enter into contracts and agreements, and to make stipulations and arrangements with any other cor- poration or corporations for the cooperative and more economical carrying on of its business, or any part or parts thereof ; or any two or more cooperative corporations organized under this title, upon resolutions adopted by their respective boards of directors, may, for the purpose of more economically carrying on their respective businesses, by agreement, unite in adopting. employing and using, or several such corporations may sepa- rately adopt, employ and use the same methods, policy, means, agents, agencies and terms of marketing for carrying on and conducting their respective businesses. 4. Any corporation formed or consolidated under this title may be dissolved, and its affairs wound up voluntarily by the written consent of members representing two thirds of the total votes, in the manner and with the effect provided in section 653i of this code, except that any property remaining after liquidation shall be divided among the members in proportion to their respective property interests therein. New section; added April 13, 1000; slats. 1009, p. S5(i ; in effect iu sixty days. Amendment of articles of incorporation. § 653//. Any such corporation may amend its articles of incor- poration in any manner not inconsistent with the provisions of this title, in the manner provided for by section 362 of the < Jivil Code of this state. New section; added April 13, 1909; stats. 1!>0'.), p. 857; in effect in sixty da vs. 230 civil code. § 653x Quo warranto. § 653z. The right of a corporation claiming to be organized and incorporated and carrying on its business under this title, to do and to continue its business, may be inquired into by quo warranto proceeding at the suit of the attorney general, but not otherwise. New section: added April 13, 1909; slats. 1909, p. 857; in effect in sixty days. Particular corporations. § 653:v/. This title is not applicable to railroads, telegraph, telephone, banking, insurance, building and loan, or any other corporation, unless the special provisions of this code appli- cable thereto are complied with. New section; added April 13, 1909; stats. 1900, p. 857; in effect in sixty days. Voting. S 653 zb. In the event the by-laws shall provide for unequal voting power, or unequal property rights of the several mem- bers, or both, the provisions of this title with reference to a majority, a two-thirds, or other vote of the members, shall not apply, and in lieu thereof, there shall be substituted a majority, or a two-thirds of the votes of the interests represented by the several members, or otherwise, as the case may be. New section; added April 13, 1909; stats. 1909. p. 857; in effect in sixty days. § 654 civil code. 231 DIVISION SECOND. PART I. PROPERTY IN GENERAL. TITLE I. Nature of Property. Sec. 654. Property, what. 655. In what property may exist. Property, what. § 654. The ownership of a thing is the right of one or more persons to possess and use it to the exclusion of others. In this code, the thing of which there may be ownership is called prop- erty. Enacted March 21, 1872. 109 Cal. 37; 116 Cal. 343; 120 Cal. 119; 131 Cal. 307; 1 Cal. App. 513. As to the meaning of "property" for the purposes of taxation, see Pol. C. § 3017. Franchises as property : See § 388, ant<\ In what property may exist. § 655. There may be ownership of all inanimate things which are capable of appropriation or of manual delivery; of all domestic animals ; of all obligations ; of such products of labor or skill as the composition of an author, the goodwill of a busi- ness, trade-marks and signs, and of rights created or granted 1>.\ statute. Enacted March 21, 1872. 126 Cal. 119 ; 133 Cal. 71 ; 149 Cal. 598 ; 1 Cal. App. 518. For trade-marks, etc., see, also, Civ. C. §§991, 1772, 1773; Pol. C. §3190 to 3201 ; Pen. C. § 349r, to 354% : also. "Trade- marks," statutes ai large, Appendix. 232 civil code. § 99 J PART III. PERSONAL OR MOVABLE PROPERTY. TITLE II. Particular Kinds of Personal Property. CHAPTER IV. OTHER KINDS OF PERSONAL PROPERTY. Sec. 991. Trade-marks. Trade-marks. § 991. One who produces or deals in a particular thing, or conducts a particular business, may appropriate to his exclusive use, as a trade-mark, any form, symbol, or name, which has not been so appropriated by another, to designate the origin or ownership thereof ; but he can not exclusively appropriate any designation, or part ©f a designation, which relates only to the name, quality, or the description of the thing or business. or the place where the thing is produced, or the business is car- ried on. Amended March 30, 1874; amend ts. 1873-4, p. 224. 63 Cal. 446; 100 Cal. 677; 103 Cal. 73; 136 Cal. 352; 150 Cal. 182. As to trade-marks, see, also, Civ. C. §S 054, 655, 1772, 1773 ; Pol. C. §§3196-3201; Pen. C. §§349« to 354%; see, also, "Trade-marks," statutes at large, Appendix. § ljr.i civil com:. 234< PART IV. ACQUISITION OF PROPERTY. TITLE IV. Transfer. CHAPTER IV. RECORDING TRANSFERS. Article I. What May Be Recorded. Sec. 1161. Acknowledgment of instrument by a person ; by a corporation. 1163. Residence recorded for the purpose of service of sum- mons. Fee. Index. Acknowledgment of instrument by a person; by a corporation. § 1161. Before an instrument can be recorded, unless it belongs to the class provided for in either section eleven hun- dred and fifty-nine, eleven hundred and sixty, twelve hundred and two, or twelve hundred and three, its execution must be acknowledged by the person executing it, or if executed by a corporation, by its president or secretary, or other person executing the same on behalf of the corporation, or proved by a subscribing witness, or as provided in sections eleven hundred and ninety-eight and eleven hundred and ninety-nine, and the acknowledgment or proof certified in the manner prescribed by article three of this chapter. Amended March 21, 1905; stats. 1905, p. 602. 55 Cal. 565 ; 56 Cal. 129 ; 74 Cal. 429 ; 90 Cal. 477. Note. — § 1161. The change consists in the addition of the words "or other person executing the same on behalf of the cor- poration," following "its president or secretary." The reason for the amendment is that an instrument may be executed on behalf of a corporation by an officer or person other than its president 234 ( ivu, code. § 1 L61 or secretary, when authorized by its board of directors. The section as it heretofore stood appeared to sanction its execution by those officers only. Residence recorded for the purpose of service of summons — Fee — I ndex. § 1163. Any person, firm, or corporation, may record in the office of the county recorder of any county in the State of Cali- fornia a certificate setting forth the name of said person, firm, or corporation, and the place of residence of said person, firm, or corporation, and the place where service of summons may he made upon said person, firm, or corporation. The said certifi- cate must be verified by the oath of the person, or of a member of the firm, or officer of the corporation making the same, and may be recorded without acknowledgment. Such person, firm or corporation may upon a change of place of residence file affidavit as herein provided and such last affidavit filed shall be the place designated as the place where service of summons may be made as herein provided. The fee of the recorder for recording said certificate shall be fifty cents; and the recorder shall keep in his office an index entitled "Index to certificates of residence," in which must be entered the name of the person, firm, or corpora- tion in whose behalf said certificate was filed. Enacted March IS, 1905 ; stats. 1905, p. 139. Foreign corporation to designate person upon whom summons may be served: See Civ. C. §§405, 406. Foreign insurance corporation : See Pol. C. § 616. Article III. Proof and Acknowledgment of Instruments. Sec. 1185. Requisites fur acknowledgment or proof of instru- ment. 1190. Form of acknowledgment by corporation. Requisites for acknowledgment or proof of instrument. § 1185. The acknowledgment of an instrument must not be laken. unless the officer taking it knows or has satisfactory evi- dence, on the oath or affirmation of a credible witness, that the iK'rson making such acknowledgment is the individual who is described in and who executed the instrument; or, if executed S 1185 CIVIL CODE. 'S-'>7< by a corporation, that the person making such acknowledgment is the president or secretary of such corporation, or other person who executed it on its behalf. Amended March 21. 1905; stats. 1905, p. 603. 55 Cal. 565; 96 Cal. 651; 97 Cal. 212; 101 Cal. 539; 131 Cal. 507 ; VII Cal. App. Dec. 418. Note. — § 1185. The change consists in the addition of the words "or other person who executed it on its behalf," following "president or secretary of such corporation." (See note t<> sec- tion 1161.) Form of acknowledgment by corporation. § 1190. The certificate of acknowledgment of an instrument executed by a corporation must be substantially in the following form : "State of , t County of . f "On this day of — , in the year , before me (here insert the name and quality of the officer), personally appeared — , known to me (or proved to me on the oath of ) to be the president (or the secretary) of the cor- poration that executed the within instrument (where, however, the instrument is executed in behalf of the corporation by some one other than the president or secretary, insert: known to me [or proved to me on the oath of ] to be the person who executed the within instrument on behalf of the corporation therein named) and acknowledged to me that such corporation executed the same." Amended March 21, 1905; stats. 190."). p. 603. 55 Cal. 565 ; 101 Cal. 539. Note. — § 1190. The change consists in the addition of the proviso "the person who executed the within instrument on behalf of the corporation therein named," following the words "the president (or the secretary) of the corporation that executed the within instrument." (See note to section 1161.) 236 civil code. § 1275 TITLE VI. Wills. CHAPTER I. EXECUTION AND REVOCATION OF WILLS. Sec. 1275. Who may take by will. 1313. Restriction on devise for charitable purposes. Who may take by will. S 1275. A testamentary disposition may be made to any per- son capable by law of taking the property so disposed of, except that corporations other than counties, municipal corporations, and corporations formed for scientific, literary, or solely educational or hospital purposes, can not take under a will, unless expressly authorized by statute; subject, however, to the provisions of sec- tion thirteen hundred and thirteen. Amended March 21, 1005 ; stats. 1905, p. 605. 59 Cal. 131 ; CO Cal. 30!) ; 03 Cal. 621 ; 123 Cal. 624. Note. — § 1275. The change consists in the insertion of the word "that" before "corporations," and in the insertion of the words "counties, municipal corporations and corporations" after "than." The amendement in substance incorporates into the sec- tion the provisions of the act of 1881, page 2, authorizing the several counties, cities and counties, cities and towns of the state, to receive property by t;ift. bequest and devise. Restriction on devise for charitable purposes. S 1313. No estate, real or personal, shall be bequeathed or devised to any charitable or benevolent society, or corporation, or to any person or persons in trust for charitable uses, except the same be done by will duly executed at least thirty days before the decease of the testator; and if so made, at least thirty days prior to such death, such devise or legacy, and each of them, shall be valid; provided, that no such devises or bequests shall collect- ively exceed one third of the estate of the testator leaving legal heirs, and in such case a pro rata deduction from such devises or bequests shall be made so as to reduce the aggregate thereof to one third of such estate; and all dispositions of property made § 1313 CIVIL CODE. -37 contrary hereto shall be void, and go to the residuary legatee or devisee, next of kin, or heirs, according to law. Enacted March 18, 1S74 ; araendts. 1S73-4. p. 275. 58 Cal. 470; 03 Cal. 022; 94 Cal. 378; 98 Cal. 006; 105 Cal. 047: 123 Cal. 024; 126 Cal. 301; 127 Cal. 96; 12s Cal. 12; 138 Cal. 434: 150 Cal. 605; 152 Cal. 328, 329, 330; XXXVI Cal. Dec. 151. TITLE X. [Titli X added March 13, 1909; suits. 1909, p. 313.] Location of Mining' Claims, Tunnel Rights, and Mill Sites. (For incorporation of mining companies, see Civ. < '. § 5S6 et seq. ; see, also, "Mines and Mining," statutes at large. Ap- pendix.) Sec. L426. Lode claims, how located. 1 126a. Boundaries. I r.'66. Record of location, lode claim. 1426c. Placer claim, location of. j426. 314; in effect July 1. 1909. 240 civil code. §14260 Record of location, tunnel claim. § 1426*/. Within thirty days after the posting the notice of location of the tunnel right or location, the locator shall record a true copy thereof, in the office of the county recorder of the county in which such claim is situated, for which service the recorder shall receive a fee of one dollar. New section; added March 13, 1009; stats. 1009. p. 314; in effect July 1. 1909. Amended notice of mining claim. § 1426//. If at any time i he locator of any mining claim here- tofore or hereafter located, or his assigns, shall apprehend that his original location notice was defective, erroneous, or that the requirements of the law had not been complied with before fil- ing ; or in case the original notice was made prior to the passage of this act, and he shall be desirous of securing the benefit of this act. such locator, or his assigns, may file an additional notice, subject to the provisions of this act; provided, that such amended location notice does not interfere with the existing rights of others at the time of posting and filing such amended location notice, and no such amended location notice or the record thereof, shall preclude the claimant, or claimants from proving any such title as he or they may have hold under previous locations. New section; added March 13, 190!>; stats. 1909, p. 315: in effect July 1, 1909. Surveyed claims. § 1426/. Where a locator, or his assigns, has the boundaries and corners of his claim established by a United States deputy mineral survey, or a licensed surveyor of this state, and his claim connected with the corner of the public or minor surveys of an established initial point, and incorporates into the record of the claim, the field notes of such survey, and attaches to and files with such location notice, a certificate of the surveyor. setting forth: First, that said survey was actually made by him, giving the date thereof; Second, the name of the claim surveyed and the location thereof; Third, that the description incorporated in the declaratory statement is sufficient to iden- tify ; such survey and certificate becomes a part of the record. and such record is prima facie evidence of the facts therein contained. New section; added March 13. 1909; stats. L909, p. 315; in effect July 1, 1909. § 1426./ civil code. 241 Mill site, location of. § 1426./. The proprietor of a vein or lode claim or mine, or the owner of a quartz mill or reduction works, or any person qualified by the laws of the United States, may locate not more than five acres of non-mineral land as a mill site. Such loca- tion shall be made in the same manner as hereinbefore required for locating placer claims. New section ; added March 13, 1909 ; stats. 1909, p. 315 ; in effect July 1, 1909. Record of location, mill site. § 1426A-. The locator of a mill site claim or location shall, within thirty days from the date of his location, record a true copy of his location notice with the county recorder of the county in which such location is situated, for which service the recorder shall receive a fee of one dollar. New section ; added March 13, 1909 ; stats. 1909. p. 315 ; in effect July 1, 1909. Yearly work required, mining claim. § 1426L The amount of work done or improvements made during each year to hold possession of a mining claim shall be that prescribed by the laws of the United States, to wit : One hundred dollars annually. New section ; added March 13, 1909 ; stats. 1909, p. 315 ; in effect July 1, 1909. Record of work. § 1426»(. Whenever mine owner, company, or corporation shall have performed the labor and made the improvements required by law upon any mining claim, the person in whose behalf such labor was performed or improvements made, or some one in his behalf, shall within thirty days after the time limited for performing such labor or making such improve- ments make and have recorded by the county recorder, in books kept for that purpose, in the county in which such mining claim is situated, an affidavit setting forth the value of labor or improvements made, the name of the claim, and the name of the owner or claimant of said claim at whose expense the same was made or performed. Such affidavit, or a copy thereof, duly certified by flic county recorder, shall be prima facie 11— CL. 242 civil code. §1426w evidence of the performance of such labor or the making of such improvements, or both. New section; added March 13, 1909; stats. 1909. p. 315; iu effect July 1, 1909. Recorder's fee. § 1426«. For recording the affidavit herein required, the county recorder shall receive a fee of fifty cents. New section; added March 13, 1909; stats. 1909. p. 316; in effect July 1, 1909. Delinquent co-owners, notice to; payment by delinquents. §.1426o. Whenever a coowuer or coowners of a mining claim shall give to a delinquent coowuer or coowners the notice in writing or notice by publication provided for in section 2324, Revised Statutes of the United States, an affidavit of. the per- son giving such notice, stating the time, place, manner of service. and by whom and upon whom such service was made, shall be attached to a true copy of such notice, and such notice and affidavit must be recorded in the office of the county recorder, in books kept for that purpose, in the county in which the claim is situated, within ninety days, after the giving of such notice ; for the recording of which said recorder shall receive the same fees as are now allowed by law for recording deeds ; or if such notice is given by publication in a newspaper, there shall be attached to a printed copy of such notice an affidavit of the printer or his foreman, or principal clerk of such paper, stating the dale of the first, last and each insertion of such notice therein, and where the newspaper was published dur- ing that time, and the name of such newspaper. Such affidavit and notice shall be recorded as aforesaid, within one hundred and eighty days after the first publication thereof. The original of such notice and affidavit, or a duly certified copy of the record thereof, shall be prima facie evidence that the delinquent mentioned in section 2324 has failed or refused to contribute his proportion of the expenditure required by that section, and of the service of publication of said notice; pro- vided, the writing or affidavit hereinafter provided for is not «>f record. If such delinquent shall, within the ninety days required by section 2324, aforesaid, contribute to his coowner or coowners, his proportion of such expenditures, and also all § 14 - _V,.. CIVIL CODE. 243 costs of service of the notice required by this section, whether incurred for publication charges, or otherwise, such coowner or coowners shall sign and deliver to the delinquent or delin- quents a writing, stating that the delinquent or delinquents by name has within the time required by section 2324 aforesaid, contributed his share for the year , upon the mine, and further stating therein the district, county and state wherein the same are situated, and the book and page where the location notice is recorded, if said mine was located under the pro- visions of this act ; such writing shall be recorded in the office of the county recorder of said county, for which he shall receive the same fees as are now allowed by law for recording deeds. If such coowner or coowners shall fail to .sign and deliver such writing to the delinquent or delinquents within twenty days after such contribution, the coowner or coowners so failing as aforesaid shall be liable to the penalty of one hundred dollars to be recovered by any person for the use of the delinquent or delinquents in any. court of competent jurisdiction. If such coowner or coowners fail to deliver such writing within said twenty days, the delinquent, with two disinterested persons hav- ing personal knowledge of such contribution, may make affidavit setting forth in what manner, the amount of, to whom, and upon what mine, such contribution was made. Such affidavit, or a record thereof, in the office of the county recorder, of the county in which such mini 1 is situated, shall be prima facie evidence of such contribution. New section; added March 13, 1909; stats. 1909, p. 316; in effect July 1, 1909. Records to be received in evidence. § 1426/j. The record of any location of a mining claim, mill site or tunnel right, in the office of the county recorder, as herein provided shall be received in evidence, and have the same force and effect in the courts of the state as the original notice. New section; added March 13. 1909; stats. 1909r p. 317; in effect July 1, 1909. Copies of records as evidence. § 1426g. Copies of the records of all instruments required to be recorded by the provisions of this act, duly certified by the recorder, in whose custody such records are, may be read in 24 1 civil CODE. § 1426q evidence, under the same circumstances and rules as are now. or may be hereafter provided by law, for using copies of instru- ments relating to real estate, duly executed or acknowledged or proved and recorded. New section ; added March 13, 1909 ; stats. 1909, p. 317 ; in effect July 1, 1909. Effect on mining districts. § 1426r. The provisions of this act shall not in any manner be construed as affecting or abolishing any mining district or the rules and regulations thereof within the State of California. New section; added March 13, 1909; stats. 1909, p. 317; in effect July 1, 1909. Neglect to perform development work. § 1426s. The failure or neglect of any locator of a mining claim to perform development work of the character, in the manner and within the time required by the laws of the United States, shall disqualify such locators from relocating the ground embraced in the original location or mining claim or any part thereof under the mining laws, within three years after the date of his original locatiou and any attempted relocation thereof by any of the original locators shall render such location void. New section; added March 13, 1909; stats. 1909, p. 317; in effect July 1, 1909. § 1772 civil conrc. 245 DIVISION THIRD. PART IV. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS. TITLE I. Sale. CHAPTER II. RIGHTS AND OBLIGATIONS OF THE SELLER. AETICLE III. Warranty. Sec. 1772. Trade-marks. 1778. Other marks. Trade- marks. § 1772. One who sells or agrees to sell any article to which there is affixed or attached a trade-mark, thereby warrants that mark to he genuine and lawfully used. Enacted March 21, 1872. Selling goods with counterfeit trademark: See Pen. C, § 351. Other marks. § 1773. One who sells or agrees to sell any article to which there is affixed or attached a statement or mark to express the quantity or quality thereof, or the place where it was, in whole or in part, produced, manufactured, or prepared, thereby war- rants the truth thereof. Enacted March 21, 1872. Owner of trade-mark : Pol. C. § 3199. As to trade-marks generally, see Civ. C. §§054. 655, 991; Pol. C. §§ 319G to 3201 ; Pen. C. §§ 349r? to 354% ; also "Trade- marks," statutes at large, Appendix. 246 civil code. §1858 TITLE III. Deposit. chapter ir. DEPOSIT FOR KEEPING. Chapter [Article] Ilia. [Article tlla added March 21. 1905; stats. 1905, p. 612.] Warehousemen. (See, also, "Warehousemen," statutes at large, Appendix.) Sec. 185S. Warehouse receipts, when must not be issued. 1858a. Property not to be removed without consent in writ- ing. 1 S 5 S 7>. Warehouse receipts, classification and effect of. 1858c. Endorsement on negotiable receipt of property deliv- ered. 185Se Civ. C. § 154 '/ seq.j "Railroads," "Streel Railroads," and "Emigration," statutes at large, Appendix; see, also, Constitution of California, art. XII, §§ 17 to 22.) § 2168 civil code. 249 Sec. 2168. Common carrier, what. ^2169. Obligation to accept freight. 2170. Obligation not to give preference. 2171. What preferences he must give. 2172. Starting. 2173. Compensation. 2174. Obligations of carrier altered only by agreement. 2175. Certain agreements void. 2176. Effect of written contract. 2177. Loss of valuable letters. Common carrier, what. S 2168. Every one who utters to the public to carry persons. property, or messages, excepting only telegraphic messages, is a common carrier of whatever he thus offers to carry. Amended March 30, 1874 ; amendts. 1873-1, p. 249. 66 Cal. 581, 586. Obligation to accept freight. § 2169. A common carrier must, if able to do so, accept and carry whatever is offered to him, at a reasonable time and place, of a kind that he undertakes or is accustomed to carry. Enacted March 21, 1872. 70 Cal. 178 ; SI Cal. 268. Obligation to carry luggage: Civ. C. 8 -180. Obligation to carry messages: Civ. C. § 22 the United States and to this state. Enacted March 21, 1872. Starting. § 2172. A common carrier must start at such time and place as he announces to the public, unless detained by accident or the elements, or in order to connect with carriers on other lines of travel. Amended March 30, 1874; amendts. 1S73-4. p. 24!). See, also. Civ. C. §§ 481, 2170, and 2196. Compensation. § 2173. A common carrier is entitled to a reasonable com- pensation and no more, which he may require to be paid in advance. If payment thereof is refused, he may refuse (o carry. Enacted March 21, 1S72. Lien on luggage of passenger : Civ. C. § 2191. Obligations of carrier altered only by agreement. S 2174. The obligations of a common carrier can not he lim- ited by general notice on his part, hut may be limited by special contract. Amended March 30, 1874 ; amendts. 1873-4, p. 249. 120 Cal. 158, 159; 151 Cal. 707. 770; 2 Cal. App. 17-",. See. also, Civ. C. §§ 2170 and 2200. Certain agreements void. S 2175. A common carrier can not be exonerated, by any agreement made in anticipation thereof, from liability for the gross negligence, fraud, or willful wrong of himself or his serv- ants. Enacted March 21, 1872. 118 Cal. 089, 690, 691, (595; 120 Cal. 158; 131 Cal. 589; 151 Cal. 767, 768, 770, 777. §'2170 CIVIL CODE. 251 Effect of written contract. § 2176. A passenger, consignor, or consignee, by* accepting a ticket, bill of lading, or written contract for carriage, with a knowledge of its terms, assents to the rate of hire, the time, place, and manner of delivery therein stated ; and also to the limitation stated therein upon the amount of the carrier's liability in case property carried in packages, trunks, or boxes, is lost or injured, when the value of such property is not named ; and also to the limitation stated .therein to the carrier's liability for loss or injury to live animals carried. But his assent to any other modification of the carrier's obligations contained in such instru- ment can be manifested only by bis signature to the same. Amended March 30, 1874 ; amendts. 1873-4, p. 249. GO Cal. 299 ; 101 Cal. 195 ; 113 Cal. 334 ; 118 Cal. G89, 691 ; 131 Cal. 5S6, 587, 589 ; 152 Cal. 185. Loss of valuable letters. § 2177. A common carrier is not responsible for loss or mis- carriage of a letter, or package having the form of a letter, con- taining money or notes, bills of exchange, or other papers of value, unless he be informed at the time of its- receipt of the value of its contents. Enacted March 30, 1874 ; amendts. 1873-4, p. 250. Article II. Common Carriers of Persons. Sec. 2180. Obligation to carry luggage. 2181. Luggage, what. Bicycles. 2182. Liability for luggage. 2183. Luggage, how carried and delivered. 2184. Obligation to provide vehicles. 2185. Seats for passengers. 2186. Regulations for conduct of business. 2187. Fare, when payable. 2188. Ejection of passengers. 2 1S9. Passenger who has not paid fare 2190. Pare not payable after ejection. 2191. Carrier's lien. Obligation to carry luggage. S 2180. A common carrier of persons, unless his vehicle is tilted for the reception of persons exclusively, must receive and carry a reasonable amount of baggage for each passenger without 252 civil code. § 2180 charge, except for an excess of weight over one hundred pounds to a passenger ; if such carrier is a proprietor of a stage line, he need not receive and carry for each passenger by such stage line, without charge, more than sixty pounds of baggage. Amended March 21, 1905 ; stats. 1905, p. 615. 70 Cal. 172 ; S5 Cal. 330. Note. — § 2180. The change consists in the substitution of the word "need" for "may." The present section would seem to prohibit a carrier by stage from receiving more than sixty pounds of luggage, wherein it was manifestly intended only to relieve him, at his election, from receiving a greater amount. Luggage, what — Bicycles. § 2181. Luggage may consist of whatever the passenger takes with him for his personal use and convenience according to the habits or wants of the particular class to which he belongs, either with reference to the immediate necessities, or to the ulti- mate purpose of the journey. No crate, cover, or other protec- tion shall be required for any bicycle carried as luggage, but no passenger shall be entitled to carry as luggage more than one bicycle. Amended February 9, 1897 ; stats. 1897, p. 4. 70 Cal. 173 ; 85 Cal. 330. Liability for luggage. § 2182. The liability of a carrier for luggage received by him with a passenger is the same as that of a common carrier of property. Enacted March 21, 1872. 70 Cal. 173. Liability of carriers generally : Civ. C. § 2194 et seq. Lien on baggage for fare : Civ. C. § 2191. Luggage, how carried and delivered. § 2183. A common carrier must deliver every passenger's lug- gage, whether within the prescribed weight or not, immediately upon the arrival of the passenger at his destination ; and, unless the vehicle would be overcrowded or overloaded thereby, must carry it on the same vehicle by which he carries the passenger to whom it belonged, except that where luggage is transported by rail, it must be checked and carried in a regular baggage car; and whenever passengers neglect or refuse to have their luggage so checked and transported, it is carried at their risk. Amended March 30, 1874 ; amendts. 1873-4, p. 250. 70 Cal. 173. Duty to furnish check : Civ. C. § 479. § 2184 CIVIL CODE. 258 Obligation to provide vehicles. § 2184. A common' carrier of persons must provide a suffi- cient number of vehicles to accommodate all the passengers who can be reasonably expected to require carriage at any one time. Enacted March 21, 1872. See, also, Civ. C. § 2185. Refusal to take passengers, penally : See Pen. O. § 365. Seats for passengers. § 2185. A common carrier of persons must provide every pas- senger with a seat. He must nut overload his vehicle by receiv- ing and carrying more passengers than its rated capacity allows. Enacted March 21, 1872. See, also, Civ. C. §§ 4S3, 2184, and 2169. Regulations for conduct of business. § 2186. A common carrier of persons may make rules for the conduct of his business, and may require passengers to conform to them, if they are lawful, public, uniform in their application, and reasonable. Enacted March 21, 1872. 97 Cal. 464; 141 Cal. 732. See, also, Civ. C. § 405, subds. 10 and 11, and § 484. Fare, when payable. §2187. A common carrier may demand the fare of passen gers, either at starting or at auy subsequent time. Enacted March 21, 1872. 81 Cal. 29S ; 97 Cal. 404. Penalty for overcharge : Pen. C. § 525. Ejection of passengers. § 2188. A passenger who refuses to pay his fare or to con- form to any lawful regulation of the carrier, may be ejected from the vehicle by the carrier. But this must be done with as little violence as possible, and at any usual stopping-place or near some dwelling-house. Enacted March 21. 1872. 81 Cal. 299 ; 97 Cal. 403 ; 141 Cal. 732 ; 145 Cal. 452. Ejection of passenger for non-payment of fare: Civ. C. § 4S7. Passenger who has not paid fare. § 2189. A passenger upon a railroad train who has not paid his fare before entering the train, if he has been afforded an 254 civil code. § 2189 opportunity to do so, must, upon demand, pay ten per cent in addition to the regular rate. Enacted March 21, 1872. Ejection of passenger for non-payment of fare : Civ. C. § 487. Fare not payable after ejection. § 2190. After having ejected a passenger, a carrier has no right to require the payment of any part of his faro. Enacted March 21, 1872. Carrier's lien. §2191. A common carrier has a lien upon the luggage of a passenger for the payment of such fare as he is entitled to from him. This lien is regulated by the title on "Liens." Enacted March 21, 1872. Article III. Common Carriers of Property. Sep. 2194. Liability of inland carriers for loss. 2195. When exemptions do not apply. 2196. Liability for delay. 2197. Liability of marine carriers. 219 8. Same. 2199. Perils of sea, what. 2200. Consignor of valuables to declare their nature. 2201. Delivery of freight beyond usual route. 2 202. Proof to be given in case of loss. 2203. Carrier's services, other than carriage and delivery. 2 2 01. Sale of perishable property for freight. Liability of inland carriers for loss. § 2194. Unless the consignor accompanies the freight ami retains exclusive control thereof, an inland commou carrier of property is liable, from the time that he accepts until he relieves himself from liability pursuant to sections 2118 to 2122, for the loss or injury thereof from any cause whatever, except: 1. An inherent defect, vice, or weakness, or a spontaneous action, of the property itself; 2. The act of a public enemy of the United States, or of this state ; 3. The act of the law ; or, § 2194 civil code. 255 4. Any irresistible superhuman cause. Enacted March 21, 1872. 101 Cal. 194; VIII Cal. App. Dec. 391, 394. Selling perishable articles : Civ. C. § 2204. When carriers guilty of embezzlement : See Pen. C. § 505. When exemptions do not apply. § 2195. A common carrier is liable, even in the cases excepted by the last section, if his want of ordinary care exposes the property to the cause of the loss. Amended March 21, 1905; stats. 1!><>5, p. 015. Note. — §2195. The change consists in the substitution of the words "want of ordinary rare" for "ordinary negligence." Liability for delay. §2196. A common carrier is liable for delay only when it is caused by his want of ordinary care and diligence. Amended March 30, 1S74 ; amendts. 1S7P.-4. p. 251. 101 Cal. 193. Liability of marine carriers. § 2197. A marine carrier is liable in like manner as an inland carrier, except for loss or injury caused by (he perils of the sea or fire. Enacted March 21, 1S72. Same. § 2198. The liability of a common carrier by sea is further regulated by acts of congress. Enacted March 21, 1S72. Perils of sea, what. § 2199. Perils of the sea are from : 1. Storms and waves : 2. Rocks, shoals, and rapids; 3. Other obstacles, though of human origin ; 4. Changes of climate ; 5. The confinement necessary at sea : 0. Animals peculiar to the sea; and. 7. All other dangers peculiar to the sea. Enacted March 21, 1872. 70 Cal. 147, 148. 256 civil code. 8 2200 Consignor of valuables to declare their nature. § 2200. A common carrier of gold, silver, platina, or pre- cious stones, or of imitations thereof, in a manufactured or unmanufactured state ; of timepieces of any description ; of negotiable paper or other valuable writings ; of pictures, glass, or chinaware ; of statuary, silk, or laces ; or of plated ware of any kind, is not liable for more than fifty dollars upon the loss or injury of any one package of such articles, unless he has notice upon his receipt thereof, by mark upon the package or otherwise, of the nature of the freight; nor is such carrier liable upon any package carried for more than the value of the articles named in the receipt or the bill of lading. Amended March 30, 1874; amendts. 1873-4, p. 251. 84 Cal. 313, 314; 118 Cal. 689. Delivery of freight beyond usual route. §2201. If a common carrier accepts freight for a place beyond his usual route, he must, unless he stipulates otherwise, deliver it at the end of his route in that direction to some other competent carrier carrying to the place of address, or connected with those who thus carry, and his liability ceases upon making- such delivery. Enacted March 21, 1872, 57 Cal. 463; 101 Cal. 195; 118 Cal. 651. Proof to be given in case of loss. 8 2202. If freight addressed to a place beyond the usual route of the common carrier who first received it is lost or injured, he must, within a reasonable lime after demand, give satisfactory proof to the consignor that the loss or injury did not occur while it was in his charge, or he will be himself liable therefor. Enacted March 21, 1872. Carriers' service, other than carriage and delivery. § 2203. In respect to any service rendered by a common carrier about freight, other than its carriage and delivery, his rights and obligations are defined by the titles on deposit and service. Enacted March 21, 1872. Sale of perishable property for freight. § 2204. If, from any cause other than want of ordinary care and diligence on his part, a common carrier is unable to deliver perishable property transported by him, and collect his charges § 2204 civil code. 257 thereon, he may cause the property to be sold in open market, to satisfy his lien for freightage. Enacted March 30, 1874; amendts. 1873-4, p. 251. Article IV. Common Carriers of Messages. (Telephone and Telegraph corporations : See, also, Civ. C. §§536 to 540.) Sec. 2207. Order of transmission of telegraphic messages. 2208. Order in other cases. 2209. Damages when message is refused or postponed. Order of transmission of telegraphic messages. § 2207. A carrier of messages by telegraph must, if it is practicable, transmit every such message immediately upon its receipt. But if this is not practicable, and several messages accumulate upon his hands, he must transmit them in the following order : 1. Messages from public agents of the United States or of this state, on public business : 2. Messages intended in good faith for immediate publication in newspapers, and not for any secret use ; 3. Messages giving information relating to the sickness or death of any person; 4. Other messages in the order in which they were received. Enacted March 21, 1872. Neglect : See Ten. C. § 638. Order in other cases. §2208. A common carrier of messages, otherwise than by telegraph, must transmit messages in the order in which lie receives them, except messages from agents of the United Stales or of this state, on public business, to which he must always give priority. But he may fix upon certain times for the simultaneous transmission of messages previously received. Enacted March 21, 1872. Damages when message is refused or postponed. § 2209. Every person whose message is refused or postponed, contrary to the provisions of this chapter, is entitled to recover from the carrier his actual damages, and fifty dollars in addi- tion thereto. Enacted March 21, 1872. 258 POLITICAL CODE. § 1 ; in effect in sixty days. 147 Cal. 770. Similar provisions: Civ. C. S 7; ('ode Civ. Proc. S 10. See. also. "Holidays," statutes at large, Appendix. § 11 POLITICAL CODE. 259 Same. §11. If tin' first day of January, the twenty-second day of February, the thirtieth day of May, the fourth day of .July, the ninth day of September, the twelfth day of October or the twenty-fifth day of December fall upon a Sunday, the Monday following is a holiday. Amended February 19, 1909; stats. 1009. p. 24; in effect in sixty days. Words and terms used in the Political Code, definition of. § 17. Words used in this code in the present tense include the future as well as the present ; words used in the masculine gender include the feminine and neuter; the singular number includes the plural, and the plural the singular; the word "person" includes a corporation as well as a natural person : writing includes printing and typewriting; oath includes af- firmation or declaration; every mode of oral statement under oath or affirmation is embraced by the term "testify," and every written one in the term "depose'-' ; signature or subscrip- tion includes mark, when the person can not write, his name being written near it by a person who writes his own name as a witness; provided, that when a signature is made by a mark it must, in order that the same may be acknowledged or serve as a signature to any sworn statement, be witnessed by two persons who must subscribe their own names as witnesses thereto. The following words, also, have in this code the signification attached to them in this section, unless otherwise apparent from the context : One — The word "property" includes both real and personal property ; Two — The words "real property" are coextensive with lands, tenements and hereditaments ; Three — The words "personal property" include money, goods, chattels, things in action, and evidences of debt ; Four — The word "month" means a calendar month, unless otherwise expressed ; Five — The word "will" includes codicil : Six — The word "writ" signifies an order or precept in writing, issued in the name of the people, or of a court or judicial officer ; and the word "process" a writ .or summons issued in I he course of judicial proceedings; 260 POLITICAL CODE. § 17 Seven — The word "vessel," when used with reference to ship- ping, includes ships of all kinds, steamboats, and steamships, canal boats, barges, and every structure adapted to be navigated from place to place for the transportation of merchandise or persons ; Eight — The term "peace officer" signifies any one of the officers mentioned in section eight hundred and seventeen of the Penal Code ; Nine — The term "magistrate" signifies any one of the officers mentioned in section eight hundred and eight of the Penal Code; Ten — The word "slate," when applied to the different parts of the United Stales, includes the District of Columbia and I lie territories; and the words "United States" may include the district and territories. Eleven — The word "section," whenever used in this code, refers to a section of this code, unless some other code or statute is expressly mentioned. Amended March 18, 1905; stats. 1905. p. 129. 54 Cal. 35 ; 62 Cal. 116 ; 92 Cal. 614. Similar provisions: Civ. C. HI: Code Civ. Proc. §17: Pen. C. §7. PART III. OF THE GOVERNMENT OF THE STATE. TITLE I. Public Officers. CHAPTER III. EXECUTIVE OFFICERS Article III. ' Of the Governor. Sec. 380. General duties. General duties. S 380. In addition to those prescribed by the constitution, the governor has the power and must perform I he duties pre- scribed in this and the following sections: * * * # :JJ * * * # * * * § 380 POLITICAL CODE. 2P>1 G. He may require the attorney general or district attorney of any county to inquire into -the affairs or management of any corporation existing under the laws of this state. Enacted March 12, 1872. Article V. Of the Secretary of State. Sec. 416. Fees. Fees. §416. The secretary of state, for services performed in his office, must charge and collect the following fees : 1. For a copy of any law, resolution, record, or other docu- ment or paper on file in his office, twenty cents per folio. 2. For comparing a copy of any law, resolution, record, or other document or paper with the original, or the certified copy of the original, on file in his office, five cents per folio. 3. For affixing certificate and seal of state, unless otherwise provided for, two dollars. 4. For filing articles of incorporation, if the capital stock amounts to twenty-five thousand dollars or less, fifteen dollars ; if the capital stock amounts to over twenty-five thousand dollars, and not over seventy-five thousand dollars, twenty-five dollars : if the capital stock amounts to over seventy-five thousand dollars, and not over two hundred thousand dollars, fifty dol- lars ; if the capital stock amounts to over two hundred thousand dollars, and not over five hundred thousand dollars, seventy- five dollars ; if the capital stock is over five hundred thousand dollars, and not over one million dollars, one hundred dollars ; if the capital stock is over one million dollars, fifty dollars additional for every five hundred thousand dollars or fraction thereof of capital stock over and above one million dollars : for filing articles of incorporation without capital stock, except cooperative associations, five dollars ; for filing articles of incorporation of cooperative associations, formed under the act of eighteen hundred and ninety-five, and acts supplementary thereto or amendatory thereof, fifteen dollars. [Subd. 4: See editorial note, end of section.] 5. For recording articles of incorporation, twenty cents per folio. 0. For issuing certificate of incorporation, three dollars. 262 POLITICAL COD] . § 410 7. For tiling certificate of increase of capital slock, five dol- lars for every fifty thousand dollars or fraction (hereof of such increase. S. For filing certificate of decrease of capital stock, live dollars. 9. For filing notice of removal of principal place of business, live dollars. 10. For filing amended articles of incorporation, unless other- wise provided for. five dollars. 11. For filing certificate of creation of bonded indebtedness, or increase or decrease thereof, five dollars. 12. For issuing certificate of increase or decrease of capital stock, three dollars. 13. For filing certificate on continuance of existence, five dollars. 14. For issuing certificate of continuance of existence, three dollars. 15. For filing claim to trade-mark, and issuing certificate of filing, five dollars. 16. For issuing certificate of filing of any document, not otherwise provided for. three dollars. 17. For filing certificate of increase or decrease of number of directors, five dollars. 18. For issuing certificate of increase or decrease of number of directors, three dollars. 19. For receiving and recording each official bond, five dollars. 20. For filing notice of appointment of agent, five dollars. 21. For each commission, passport, or other document signed by the governor and attested by the secretary of state (pardons, military commissions, and extradition papers excepted), five dollars. 22. For each patent for land issued by the governor, if for one hundred and sixty acres or less, one dollar; and for each additional one hundred and sixty acres, or fraction thereof, one dollar. 23. For issuing certificate of official character, two dollars. 24. For recording miscellaneous documents or papers, twenty cents per folio. 25. For filing certified copy of order and decree of court. changing name, or certified copy of order and decree of court, dissolving a corporation, five dollars. § 116 POLITICAL CODE. 263 No member of the legislature or state officer shall be charged for any search relative to matters appertaining to the duties of their office ; nor shall they be charged any fee for a certified copy of any law or resolution passed by the legislature relative to their official duties. All fees collected by the secretary of state must, at the end of each month, be paid into the state treasury. Three thou- sand five hundred dollars of such monthly returns shall be credited to and constitute the state library fund, and the bal- ance shall be paid into the general fund of the state. Amended March 18, 1007: stats. 1007, p. 352. Ed. Note.— § 416, subd. 4. The act of March 27, 1895 (stats. 1895, page 221) providing for incorporation of co-operative asso- ciations, has been codified and superseded by sections 653& to 653/ of the Civil Code, as enacted in 1905. For fees of county clerk, see § 4300'/, post. Article XVI. [Old article XVI (sections 594 to 634, relating to insurance) repealed and a new article XVI substituted March 8, 1907 ; stats. 1907, p. 141. Sections 635a to 635/, defining bond investment companies, added to code March IS, 1905 ; stats. 1905, p. 156.] Insurance Commissioner. (Insurance corporations: See Civ. O. §114 et scq.j sec, also, "Insurance," statutes at large, Appendix.) Sec. 588. Eligibility. 589. Salary- 591. Rooms. Expenses. Special fund. 592. Office. 593. Bond. 594. Insurance classified. 594a. Foreign companies, deposit of securities. 595. General duties of commissioner. Companies may sur- render certificate ; manner of. 596. Certificate to do business. Licenses to procure insur- ance in companies not authorized to do business. Affidavit required. Account of business. Bond of licensee. Examination of policies issued by licensee. 596a. Attorney general to examine documents. 597. Examination of companies alleged to be insolvent. [Inspection of books. 264 POLITICAL CODE. Sec. 598. Policyholders may secure information about policies. Company must make statement. Lost policy, stay of rights. 599. Subpoena. 600. Records of commission. 600a. Restoration of authority after revocation. [Repealed.] 601. Employment of actuary. 602. What constitutes insolvency. 602a. How condition of company shall be estimated. How reserve to be computed. 603. Insolvent companies, notice of revocation of certificate. 603a. Restoration of authority after revocation. 604. Report to attorney general. 604a. Insolvency proceedings. 605. Fees of commissioner. 606. Assessments. 607. What papers companies must file with commissioner. 608. Actions not to be transferred to United States courts. 609. Approval of name of company. 610. Statements to be verified. 611. Annual statements of companies. 612. What statements must show. 613. Statements of life, health, and accident companies. 614. Mutual companies. 615. Forms of statements to be furnished. 616. Foreign companies must designate name of agent. Stipulation. Service of process. 617. Penalty for failure to file statements. 618. When laws of other states require trust deposit, duty of commissioner. Special deposit in state treasury. 619. Certificate of deposit. 620. Withdrawal of deposit. 621. Annual examination of securities. 622. Relative to laws of other states. 622a. Tax on gross premiums, other than California com- panies. 623. Bond required. 624. Same. 625. Commissioner to furnish data to county assessors. 625a. List of surety companies to be furnished county clerks. What list shall show. 626. Full compliance of law required. 627. Payments to be on gold basis. 628. Separate valuation of policies. 629. Life companies must furnish data for valuation "f policies. Basis of valuat inn. S ,">SS POLITICAL CODE. 265 Sec. 630. Fraternal societies exempt. 631. Right of action against commissioner. 631a. Publication of notice of withdrawal. 632. District attorney to be notified of penal offense. 633. Agtnts must file duplicate power of attorney. 634. Registration of life policies. Special deposits. Excess of securities. 634«. Definition of certain words. 6346. Penalties payable on demand. Eligibility. §588. No person is eligible to the office of insurance com- missioner or deputy who is an officer, agent, or employee of an insurance company. Enacted March 8, 1!>o7: stats. 1907. p. 141. Salary. § 589. The annual salary of the insurance commissioner is four thousand dollars, and the annual salary of the deputy of the insurance commissioner is two thousand seven hundred dollars. Enacted March S. 1907; stats. 1907, p. 141. Rooms — Expenses — Special fund. § 591. The commissioner may procure suitable rooms for his offices and may provide a suitable safe and furniture therefor. He may also provide stationery, fuel, printing and other con- veniences and assistance and incur traveling and such other expenses as are necessary for the transaction of the business of his office. Out of the funds paid into the state treasury by the insurance commissioner, there shall be set aside and reserved each and every year the sum of twenty-five thousand dollars as a special fund to be called the insurance commissioner's special fund. All expenditures authorized in this section must be audited by the board of examiners, who must allow the same and direct payment thereof to be made, and the controller shall draw warrants therefor on the state treasury for the payment of the same to the insurance commissioner out of the said insur- ance commissioner's special fund. Enacted March S, 1907; stats. 1907, p. 141. Office. § 592. The commissioner must keep his office in the city of San Erancisco. Enacted March 8, 1!>"7: stats. 1907, p. 141. 12— CL. 266 POLITICAL CODE. §593 Bond. § 593. The commissioner must execute an official bond in the sum of twenty thousand dollars. Enacted March 8, 1907; stats. 1907, p. 141. Insurance classified. § 594. All insurance business in the State of California is hereby classified in the fourteen kinds as follows: First — Life insurance business, including endowments and annuities, but not including- health or accident or sickness insur- ance or any casualty insurance as hereinafter provided. Second — Fire insurance, but not including any marine insur- ance, nor any inland navigation insurance, nor any casualty insurance as hereinafter provided. Third — Marine insurance, including ocean and inland risks, transportation and automobiles, but not including any other casualty insurance as hereinafter provided. Fourth — Title insurance, including insuring owners of reai or personal property, or others interested therein, against loss by encumbrance, or defective titles, or adverse claim to title, either together with or without examination of title, or furnish- ing information relative thereto. Fifth — Fidelity and surety insurance, including the guaran- teeing of persons holding places of public or private trust and guaranteeing the performance of contracts other than insurance policies and guaranteeing and executing all bonds, undertakings and contracts of suretyship. Sixth — Accident insurance, and either sickness or health insurance, including insurance against injury, disablement or death resulting from traveling or general accident, and against disablement resulting from sickness, and every insurance apper- taining thereto. Seventh — Plate glass insurance, including all insurance against breakage of glass, whether local or in transit. Eighth — Liability insurance, including all insurance against loss or damage resulting from accident to or injury, fatal or non-fatal, suffered by an employee or other person for and which the insured is liable. Ninth — Boiler and machinery insurance, including insurance upon steam boiler, and upon pipes, engines, and machinery con- nected therewith and operated thereby, against explosion and accident, and againsl loss or damage to life, person or property, resulting therefrom. §594 POLITICAL CODE. 267 Tenth — Burglary insurance, including: insurance against loss by burglary, house breaking or theft. Eleventh — Credit insurance, including insurance or guarantee either by agreement to purchase uncollectible debts or otherwise, to insure against loss or damage from the failure of persons indebted or to become indebted to the insured or to meet existing or contemplated liabilities. Twelfth — Sprinkler insurance, including insurance against loss or damage by water to any goods or premises arising from the breakage or leakage of sprinklers or water pipes. Thirteenth — Team and vehicle insurance including insurance against loss or legal liability for loss because of damage to property caused by the use of teams or vehicles whether by accident or collision or by explosion of any engine or tank or boiler or pipe or tire of any vehicle and also including insurance against theft of the whole or auy part of any vehicle; the term vehicle as here used includes elevators and automobiles and bicycles but does not include ships nor vessels nor boats nor any railroad rolling stock. Fourteenth — Miscellaneous insurance, including any and all casualty insurance not included under any of the foregoing thirteen kinds, and which is a proper subject of insurance. No company having a capital stock shall do in California any of said first kind of insurance without having a capital stock of at least $200,000.00 nor shall any such company do in California any other of said kinds of insurance except the sixth and eighth ; provided, that any such insurance company desiring to do the kind of insurance embraced within either the sixth or eighth kind must have in addition to such .$200,000.00 of capital stock, at least $50,000.00 of capital stock and do the kind of insurance embraced within both the sixth and eighth kiuds at least the sum of $100,000.00 capital stock in addition to the said $200,000.00 of capital stock required to do the first kind of insurance. No company having a capital stock shall do in California any of said second kind of insurance without having a capital stock of at least $200,000.00 nor shall such company do in California any other of such kinds of insurance except the third and thirteenth nor do the third without having in addition to such $200,000.00 capital stock at least $200,000.00 capital stock for such third kind of insurance, nor do any of the thirteenth with- out having in addition to such $200,000.00 capital stock for the second, nor do any of the thirteenth other than automobile 268 POLITICAL CODE. §594 insurance without having in addition to such $400,000.00 capital stock for tlio second and third at least $50,000.00 capital stock for such thirteenth kind of insurance. No company having a capital stock shall do in California any of said third kind of insurance without having a capital stock of at least $200,000.00 nor shall any such company do in California any other of said kinds of insurance except the second and thirteenth nor do the second without having in addition to such $200,000.00 capital stock at least $200,000.00 capital stock for such second kind of insurance nor do any of the thirteenth other than automobile insurance, without having in addition to such $200,000.00 capital stock for the third or in addition to such $400,000.00 capital stock for the second and third at least $50,000.00 capital stock for such thirteenth kind of insurance. No company having a capital stock shall do in California any of the fourth or fifth or sixth or seventh or eighth or ninth or tenth or eleventh or twelfth or thirteenth or fourteenth of said kinds of insurance without having a capital stock of at least $100,000.00 nor shall any such company do in California any other of said fourth or fifth or sixth or seventh or eighth or ninth or tenth or eleventh or twelfth or thirteenth or fourteenth kinds of insurance without having in addition to such $100,000.00 capital stock at least $50,000.00 capital stock for each additional kind of insurance. No company having a capital stock of at least $200,000.00, and authorized to do in California the thirteenth kind of insurance shall therein do the first or second or third kind of insurance, and must in addition to such capital stock of at least $200,000.00, have $50,000.00 of capital stock for each kind of insurance it may do therein other than the said thirteenth kind. Such capital stock required must be fully paid up before the doing of any such business in the State of California except that companies incorporated under the laws of California must have at least twenty-five per cent of their capital stock paid in previous to the issuance of any policies and the residue within twelve months of the filing of the certificate of incorporation. The capital stock required must be exclusive of all liabilities for losses reported, expenses, taxes and re-insurance of all out- slanding risks, as provided in sections 002 and G02a of tin- Political Code. Every company organized or formed under the laws of any other state or country as a mutual or as a joint stock and mu- tual company having a capital stock of not less than $100,000.00 § ~)94 POLITICAL CODE. 269 must have in lieu of sucli capital stock available cash assets of ai leasl $200,000.00 above all liabilities for losses reported, expenses, taxes, and re-insurance of all outstanding risks as provided in sections 602 and 602a of the Political Code. Amended April 15, 1909; stats. 190!). p. 928; in effect in sixty days. Ed. Note. — § 5U4. Section 2 of the act amending this section reads as follows : Sec. 2. The provisions of this act shall not apply to life or fire insurance associations operating on the assessment plan or on the fraternal plan. Foreign companies, deposit of securities. S 594a. No insurance company organized or existing under the laws of any country outside of the United States shall transact any business of insurance in the State of California without first making deposit, and (hereafter continuously main- taining such deposit except as hereinafter otherwise specially provided, so long as any such business transacted iu this state remains in existence for any purpose whatever, either unmatured or matured but unsettled, and whether iu controversy or not. Such deposit must be of securities which the law of California permits for the investment of the assets of such California insurance companies. Such deposits may he with the insurance commissioner or superintendent of insurance, or with the auditor, comptroller or general fiscal officer of any state in the United Slates in which said foreign company is authorized to do such insurance business, or a like amount held in trust for the pur- poses herein specified as provided for by the laws of that state. The amount of the deposit must he equal to the minimum amount of the capital stock or available cash assets required by the preceding section and must be maintained exclusive of all liabilities for losses reported, expenses, taxes and reinsurance of all outstanding risks, as provided in sections G02 and 002a of the Political Code. Such deposits, for all purposes of the insurance laws of this state may be treated as a part of the capital of the company making it. If such deposit is not so maintained in the State of California, its existence in some other state of the United States shall be certified at least annually to the insurance commissioner of the Slate of California by the superintendent of insurance or com- missioner of insurance or auditor, or comptroller, or general 270 POLITICAL CODE. § 594ff fiscal officer of the state in the United States wherein such deposit is sn maintained, and also so certified oftener and when- ever from time to time required by the insurance commissioner of the State of California, and such certificate shall show in detail of what such deposit consists. None of such securities so deposited shall be estimated above the par value of the same nor above the market value. Such deposits must be for the benefit and security of all the policy- holders of the company in the United States. Such securities so deposited with the insurance commissioner of the State of California shall be by him specially deposited in the state treas- ury in packages marked with the name of the company from whom received, and so long as the company continues solvent it shall he permitted to collect the interest or dividends on the securities so deposited, and from time to time to withdraw such securities on depositing other securities in the stead of those to be withdrawn, such new securities to be of the character and value specified in this section, but none of such securities shall be withdrawn from the state treasury except upon the written order of the company making the deposit, which order must be indorsed by the insurance commissioner of the State of Cali- fornia or else such withdrawal must be had under the authority of some court of competent jurisdiction, which must be obtained if the insurance commissioner for any reason refuses to so indorse said order. Whenever such deposit has been made with the insurance commissioner of the State of California as pro- vided in this section, said commissioner must issue to the com- pany so depositing, a certificate under his official seal stating the items and amount of securities so deposited, and their value, to the best of his knowledge, information and belief, and in case of withdrawal and substitution, he shall issue suitable supple- mental similar certificate. Nunc of the provisions of this section shall affect the present statutes of California, either as to regis- tered policies, or under what is known as the retaliatory law, or otherwise, either as to papers, bonds, or other securities. Amended April 15, 1009: stats. 1009, p. 910; in effect in sixty days. General duties of commissioner — Companies may surrender cer- tificate; manner of. § 595. The insurance commissioner must receive all bonds and securities of persons engaged in the transaction of insur- § 595 POLITICAL CODE. 271 ance business in this state, and file and safely keep the same in his office, or deposit them as provided by law. He must examine and inspect the financial condition of every company engaged, or which desires to engage in the business of insur- ance and issue a certificate of authority to transact insurance business in this state to any company in a solvent condition which has fully complied with the laws of this state. He must determine the sufficiency and validity of all bonds and other securities required to be given by persons engaged, or to be engaged, in insurance business, and cause the same to be renewed in case of the insufficiency or invalidity thereof ; and perform all other duties imposed upon him by the laws regulating the business of insurance in this state, and enforce the execution of such laws. He must make, on or before the first day of August in each year, a report to the governor of the state, containing a tabular statement and synopsis of the reports which have been filed in his office, showing, generally, the condition of the insurance business and interests in this state, and other matters concerning insurance, and a detailed verified statement of the moneys and fees of office received by him, and for what purpose, and the printing of said report and all other printing required by the insurance department shall be exempt from the provisions of article XII, chapter III, title I, part III of the Political Code. Any insurance company may pay the fees and costs therefor and may sur- render to the insurance commissioner its certificate of authority previously gi-anted, and apply to withdraw from this state. such application to be in the form of a written instrument, duly executed, and accompanied with evidence of due authority for such execution, and such written instrument to be properlj acknowledged. The commissioner, at the expense of the com- pany, paid by it in advance, must make due publication of such application for withdrawal, daily, for the period of one week, in each of two daily newspapers of general circulation, the one published in the city of San Francisco, and the other in the city of .Sacramento. The commissioner must make such examination of the books of such company as may be necessary to ascertain that such company has no liabilities outstanding and not paid to residents of this state and no uncanceled policies in favor of residents of Ibis stale and if be finds thai such company has no outstanding liabilities to residents of ibis 272 POLITICAL CODE. § 595 state and no uncanceled policies in favor of the residents of this state, he shall cancel such certificate of authority. All such examinations must be at the expense of the company, and such expense must be paid in advance. Enacted March 8, 1907 ; stats. 1907. p. 145. VII Cal. App. Doc. 2, 3. Certificate to do business — Licenses to procure insurance in com- panies not authorized to do business — Affidavit required — Account of business — Bond of licensee — Examination of policies issued by licensee. § 596. No company shall transact any insurance business in this state without first complying with all the provisions of the laws of this state and thereafter procuring from the insur- ance commissioner a certificate of authority and continuing to comply with the laws of this state; provided, that insurance in companies not authorized to transact business in this state may be placed upon the terms and conditions in this section hereafter set forth. Such certificate of authority shall expire ou the first day of July after it is issued unless sooner revoked, and must be renewed annually. No certificate of authority shall be granted or renewed to any company in arrears to the state, or to any county or city of the state, for fees, licenses. taxes, assessments, fines or penalties accrued upon business previously transacted in the state nor while the company is otherwise in default for failure to comply with any of the laws of this slate regarding the government and control by the state, of such company, and all such authorizations and certificates of authority heretofore granted shall expire on July 1st, 1907. The insurance commissioner may issue a license to any citizen of this state, subject to revocation at any time, permitting the person named therein to procure policies of insurance on risks located in this state for companies not authorized to transact business in this state, and for such license the insur- ance commissioner shall collect a fee of fifty dollars for each such license and renewal thereof and each such license and renewal shall expire on the first day of July unless sooner revoked. Before the person named in such license shall procure any insurance in such company he shall in every case execute and file with the insurance commissioner an affidavit that he is unable to procure, fur a specified person, firm or corpora- tion, in a majority of the companies authorized to do business $ 5«tt; POLITICA] CODE. 278 in this state the amount of insurance necessary. Every per- son so licensed shall keep a separate account of the business done under said license, open at all times to the inspection of the insurance commissioner, and shall file a certified copy thereof forthwith with the insurance commissioner, showing the exact amount and character of such insurance placed for any person, firm, or corporation, t he gross premiums charged thereon, the companies in which the same is placed, the dates of the 'policies and the terms thereof, the locati I' tin 1 insured property and also a report in the same detail of all such policies canceled and the m-oss return thereon. Before receiv- ing SUC'h license the person licensed shall execute and deliver to the insurance commissioner a bond to the people of the Slate of California in the penal sum of twenty thousand dollars, with such sureties as the commissioner shall approve, con- ditioned that the licensee will faithfully comply with all the requirements of this section, and will tile with the insurance commissioner on or before the first day of March of each year, a sworn statement of the gross premiums charged for insur- ance procured or placed, and the gross return premiums on such insurance canceled under such license during the year ending on the thirty-first day of December last preceding, and will pay to the insurance commissioner of the State of Cali- fornia, for the use and benefit of said state, an amount equal to four per cent of such gross premiums less such return pre- miums so reported, and in default of the payment of any sum imposed by (his section, the said insurance commissioner may sue lor same in any court of record in this state. Any per- son, firm, company or corporation for whom such insurance as herein specified shall have been effected, whenever required by the insurance commissioner so to do, shall produce for examination by him the policy or policies issued for such insur- ance, and disclose to him the true amount of the gross pre- miums agreed to be paid therefor, and upon refusal so to do shall forfeit to the State of California for each such refusal the sum of two hundred dollars, to be recovered in a civil action. All policies and insurance contracts issued without full compliance, by all parties concerned, with the laws of this state are null and void. Enacted March 8, 1907; stats. 1907, p. 146. VII Cal. App. Dec. 3. See, also, Pen. C. § 439. 274 POLITICAL CODE. § 596a Attorney general to examine documents. § 596ft. Before the insurance commissioner issues any cer- tificate of authority or any other certificate or gives any per- mission or authority of any kind, based upon any written instrument or document or certified copy thereof, required by the statutes of the State of California, the commissioner shall submit such instrument, document or certified copy to the attorney general of the State of California, who shall examine the same and return it to the commissioner with his certificate or opinion as to whether such instrument, document or certi- fied copy is in accordance with the requirements of law, and such certificate or opinion of the attorney general shall govern and control the commissioner, subject only to review by a court of competent jurisdiction ; provided, that neither the authority to nor bond of an agent or solicitor, nor the annual statements as to the condition and affairs need, but may, be so submitted (with the same effect) by the commissioner to the attorney general. Enacted March 8, 1907 ; stats. 1907, p. 147. Examination of companies alleged to be insolvent — Inspection of books. S 597. The commissioner, whenever he deems necessary, or whenever he is requested by verified petition, signed by twenty- five persons interested, either as stockholders, policyholders, or creditors of any company engaged in insurance business in this stale, showing that such company is insolvent under the laws of this slate, must make an examination of the business and affairs relating to the insurance business of such company, and must make such an examination whenever any company is organ- ized to do insurance business in this state, and before issuing a certificate of authority other than renewals to such company, and may make such examination whenever any company not organized under the laws of this state applies for a certificate to do insurance business in this state, and before issuing a cer- tificate of authority to such company ; and for such purposes shall have free access to all the books and papers of such com- pany, and must thoroughly inspect and examine all its affairs, and ascertain its condition and ability to fulfill its engagements. and that it has complied with all the provisions of law appli- cable to its insurance transactions. Such company must open its books and papers for the inspection of the commissioner, and otherwise facilitate such examination ; and the commissioner may 8 . r >!>7 political conn. 27H administer oaths and examine under oath any person relative to the business of such company; and if he finds the books to have been carelessly or improperly kept or posted he must employ sworn experts to re-write, post and balance the samt 1 at the expense of such company. Such examination must be conducted in the county where such company has its principal office, and must be private, unless the commissioner deems it necessary to publish the result of such investigation, in which case he may publish the same in two of the public newspapers of this state, one of which must be published in the city of San Francisco. Whenever the commissioner shall deem such examination necessary, the same must be at the expense of the company, such expense to be paid in advance, and if any such company refuses to pay such expenses in advance the insurance commissioner may refuse to issue any such certificate of author- ity and must revoke any existing certificate of authority author- izing such company to do business. Enacted March 8, 1907; slats. 1907, p. 147. Policyholders may secure information about policies — Company must make statement — Last policy, stay of rights. S 598. Any person interested in, as owner, assignee, pledgee or payee, of any policy of insurance and desiring any informa- tion about such policy, may file with the insurance commissioner an affidavit showing that he is entitled to the benefits of the provisions of this section and apply to (he insurance commis- sioner for his certificate of the fads or information desired. If the records of his office show the facts or information desired, the insurance commissioner shall prepare his certificate reciting such facts or information. If his records do not show the facts or information desired the insurance commissioner may deliver an order to the agent of the company, designated under sec- tion six hundred and sixteen of the Political Code, directing such company to state such information or facts in an affidavit and deliver such affidavit to him. In such affidavit the company must make a full, true and correct statement of all the said facts and information in the possession of said company, whether such information be contained in the books, records, or papers in this state or in any other state or country. If such company neglects or refuses to make and deliver such affidavit to the insurance commissioner within ninety (90) days from the date of the delivery of the said order by the commissioner to the said agent as herein provided, the commissioner must revoke the cer- 276 POLITICAL CIODL. § f>98 tificate of authority authorizing the company to do business in this state. Immediately after receiving any affidavit from any insurance company pursuant to the provisions of this section the commissioner must certify such affidavit to the person so applying for the information or facts. Such affidavit so certi- fied by the insurance commissioner shall be delivered to the applicant by delivering it to him personally or by depositing the same in the United States post office and prepaying the post- age thereon. If a loss has been sustained under any policy of insurance and such policy has been lost or destroyed all rights of every kind and nature and t lie time for the presentation of notice of loss and the time for the presentation of proof of loss are stayed from the date such interested person delivers to the commissioner the affidavit herein provided for and until five days after the date of the delivery by the insurance commissioner to such interested person of any affidavit furnished by any insurance company pursuant to the provisions of this section. Enacted March 8, 1007; stats. 1907, p. 148. Subpoena. § 599. The commissioner may issue subpoenas for witnesses to attend and testify before him on any subject touching insur- ance business, or in aid of his duties, which may be served. obeyed, and enforced as provided in the Code of Civil Pro- cedure for civil cases, and the commissioner may issue attach- ments and impose the same penalty which a court might impose for disobedience; and, in addition, the defaulting witness may be punished as provided in the Penal Code. Enacted March 8, 1907: stats. 1907, p. 14!). Records of commission. § 600. The commissioner must keep and preserve in a per- manent form a full record of his proceedings, including a concise statement of the condition of each company visited or examined by him. Enacted March S, 1907 ; stats. 1907, p. 149. Restoration of authority after revocation. [Repealed.] § 600'/. Restoration of authority after revocation. [Repealed April 15, 1909; stats. 1909, p. 913; in effect in sixty days.] Ed. Note. — § 600a. Section 3 of the act repealing this section and enacting section 603a reads as follows: "Sec. 3. Nothing herein contained shall affect any rights acquired under said sec- tion 600a, but all such rights shall be preserved under the provi- sions of said section 603a." § mi POLITICAL CODE. 277 Employment of actuary. § 601. The commissioner may employ au actuary to make the valuation of life policies at a compensation of not exceed- ing one cent for each thousand dollars of insurance, to be paid by the company for which the valuation is made. Enacted March S. 1907; stats. 11)07. p. 149. What constitutes insolvency. § 602. Whenever provisions for the liabilities of any com- pany engaged in the business of fire, marine, or inland naviga- tion insurance in this state, for losses reported, expenses, taxes and reinsurance of all outstanding risks, estimated at fifty per cent of the premiums received and receivable on all fire risks and marine time risks, at the full premiums received and receivable on all other marine risks, would so far impair its capital paid in as to reduce the same below two hundred thou- sand dollars, or below seventy five per cent of said capital paid in, such company is insolvent ; and in case of a company engaged in such insurance in this state, on the mutual plan, if the available cash assets of such company shall not exceed its liabilities, as hereinbefore enumerated, in the full sum of two hundred thousand dollars, such company is insolvent; and wherever provision for the liabilities of any company engaged in the business of insuring any one against loss or damage resulting from accident to or injury suffered by an employee or other person for which the person insured may be liable. for losses reported, expenses, taxes, and reinsurance of all out- standing risks estimated as provided in'section six hundred and two a of the Political Code would so far impair its capital paid in as to reduce the same below one hundred thousand dollars, or below seventy-five per cent of said capital paid in, such company is insolvent; and whenever provision for the liabilities of any company engaged in any kind of insurance business in this state, other than life, liability, and insurance of titles to real estate, provided for in section five hundred and ninety-four of the Political Code of this state, for losses reported, expenses, taxes, and reinsurance of all outstanding risks, estimated at such rates as are accepted by the insurance authorities of the state of New York, would so far impair its capital paid in as to reduce the same below one hundred thousand dollars, or below seventy-five per cent of said capital stock paid in, such company is insolvent ; and in case of a company engaged in such 27S rOLTTIOAT. CODK. § 002 insurance business in (his state, on the mutual plan, if its avail- able cash assets shall not exceed ils liabilities, as hereinbefore enumerated, in the full sum of one hundred thousand dollars. such company is insolvent. In the case of a company engaged in the business of life insurance, whenever its liabilities for losses reported, expenses, taxes, and reinsurance of all its out- standing risks written prior to January 1st. eighteen hundred and ninety-two, at the rates based upon the American experience table of mortality with interest at the rate of four and one half per cent per annum, and reinsurance of all its outstanding risks written from and after the thirty-firsl day of December, eighteen hundred and ninety-one, up to and including the thirty-first day of December, nineteen hundred and seven, at rates based upon the combined experience or actuaries table of mortality with interest at the rate of four per cent per annum, and reinsurance of all its outstanding risks written from and after December thirty-first, nineteen hundred and seven, at rates based upon the American experience table of mortality with interest at the rale of three and one half per cent per annum, exceeds its assets such company is insolvent. In the case of a company engaged in the business of insurance of the title to real estate, when- ever provision for its liability for losses reported, expenses. and taxes, would, after exhausting its surplus fund required by section four hundred ami thirty-two of the Civil Code, or otherwise, so far impair its capital slock paid in as to reduce the same below one hundred thousand dollars, or below seventy- five per cent of said capital paid in. such company is insolvent. The provisions of this act shall not apply to life or tire insurance associations operating on the assessment plan or on the fraternal plan. Amended April 15, 1909 ; stats. 1909, p. 915 ; in effect in sixty days. How condition of company shall be estimated — How reserve to be computed. § 602o7. p. L55. VII Cal. A,. P . Dec. ... Statements of life, health, and accident companies. S 613. Such statement, if made by life, health, and accident companies, must show : CAPITAL. First The amount of the capital stock of the company. ASSETS. Second -The property or assets held by the company, speci- fying: (1) The value of the real estate held by the company; (2) The amount of cash on hand and deposited in banks to L'.SN POLITICAL CODE. § 613 the credit of the company, specifying the same ; (3) The amount of loans secured by bond and mortgage on real estate, specify- ing the same; (4) Amount of loans secured by pledge of bonds, stocks, or other marketable securities as collateral, specifying the same; (5) Cash market value of all stocks and bonds owned by the company, specifying the same; (G) Interest due the company and unpaid; (7) Interest accrued, but not due; (8) Premium notes and loans in any form taken in payment of premiums on policies now in force ; (9) Gross amount of premiums in process of collection and transmission on policies in force; (10) Gross amount of deferred premiums; (11) All other assets, specifying the same. LIABILITIES. Third — (1) Claims for death losses and matured endowments due and unpaid ; (2) Claims for death losses and matured endow- ments in process of adjustment or adjusted and not due ; (3) Claims resisted by the company; (4) Amounts due and unpaid on annuity claims; (5) Trust funds on deposit or net present value of all outstanding policies, computed according to the American Experience Table of Mortality, with interest at the rate of four and one half per cent per annum upon all out- standing risks written prior to January 1st. 1892, and according lo the Combined Experience or Actuaries' Table of Mortality with interest at the rate of four per cent per annum upon all outstanding risks written from and after the 31st day of Decem- ber, 1891, up to and including the 31st day of December, 1907, and according to the American Experience Table of Mortality with interest at the rtae of three and one half per cent per annum upon all outstanding risks written from and after Decem- ber 31st, 1907; (6) Additional trust fund on deposit, or net present value of extra and special risks, including those on impaired lives; (7) Amount of all unpaid dividends of surplus percentage, bonuses, and other description of profits to policy- holders, and interest thereon ; (8) Amount of any other liability to policyholders or annuitants not included above. INCOME. Foin tli — (1) Cash received for premiums on new policies during the year; (2) Cash received for renewal of premiums during the year; (3) Cash received for purchase of annuities; (4) Cash received for all other premiums; (5) Cash received § Glo POLITICAL CODE. 2S9 for interest on loans, specifying the same; (G) Rents received; (7) Cash received from all other sources, specifying the same; (8) Gross amount of notes taken on account of new premiums; (9) Gross amount of notes taken on account of renewal pre- miums. EXPENDITURES. Fifth — (1) Cash paid for losses; (2) Cash paid to annui- tants; (3) Cash paid for lapsed, surrendered, and purchased policies; (4) Cash paid for dividends to policyholders ; (5) Cash paid for dividends to stockholders; (G) Cash paid for reinsur- ances; (7) Commission paid to agents; (8) Salaries and other compensation of officers and employees, except agents and med- ical examiners; (9) Medical examiners' fees and salaries; (10) Cash paid for taxes; (11) Cash paid for rents; (12) Cash paid for commuting commissions; (13) All other cash payments. Sixth — Balance sheet of premium note account. Seventh — Balance sheet of all the business of the company. Eighth — (1) Total amount of insurance effected during the year on new policies; (2) Total amount of insurance effected during the year in the State of California; (3) Premiums received during the year on business done in the State of California. Enacted March 8, 1907; stats. 1907, p. 157. Mutual companies. S 614. Mutual companies formed, existing, and doing busi- ness under an Ad entitled "An Act to provide for the incorpora- tion of mutual insurance companies," passed April twenty-sixth, eighteen hundred and fifty-one, may report their approved stock as capital paid up, and such notes fur all purposes must be deemed part of Hie paid-up capital stock of such corporation. Enacted March 8, 1907; stats. 1907, p. 159. Forms of statements to be furnished. S 615. The insurance commissioner must cause to lie pre- pared, and furnish on demand to each of the companies printed forms of the statements herein required; and he may make such changes from time to time in the form of such statements and reports as seems to him best adapted to elicit from the com- panies a true exhibit of their condition. The same forms must be so furnished on demand to all companies engaged in the same kind of business. Enacted March 8, L907 ; stats. 1007. p. 159. 13— CL. 290 POLITICAL CODE. § (HG Foreign companies must designate name of agent — Stipulation — Service of process. § 616. The insurance commissioner must require, as a con- dition precedent to the transaction of insurance business in this state by any foreign insurance company, that such company file in his office a writing designating the name of an agent, and his place of business in this state, on whom any notice provided by law or by any insurance policy, proof of loss, summons and other process may be served in all actions or other legal pro- ceeding against such company. All notices, proof of loss, sum- mons or other process so served give jurisdiction over the person of such company. The agent so appointed and designated shall be deemed in law a general agent, and must be the principal agent of such company in this state ; any such for- eign company shall, as a further condition precedent to the t rausaction of insurance business in this state, and in considera- tion of the privilege to transact such insurance business in this state, make and file with the insurance commissioner an agree- ment or stipulation, executed by the proper authorities of such company, in form and substance as follows: The (giving name of company) does hereby stipulate and agree that, in considera- tion of the permission granted by the State of California to it to transact insurance business in this state, that if at any time said company shall leave this state or case to transact business in this state or shall be without an agent in said state, on whom any notice, proof of loss, summons, or other legal process may he served, then in any action or proceeding arising out of any business or transactions which occurred in this state, service of any notice provided by law. or insurance policy, proof of loss, summons, or other legal process may be made upon the insur- ance commissioner, and that such service upon the commis- sioner shall have the same force and effect as if made upon the company. Whenever such service of notice, proof of loss. summons, or other legal process shall be made upon the insur- ance commissioner, he must, within ten days thereafter, trans- mit by mail, postage paid, a copy of such notice, proof of loss, summons, or other legal process to the company, addressed to the manager, president, or secretary thereof at its home or principal office. The sending of such copy by the commissioner shall hi' a necessary part of the service of the notice, proof of loss. summons, or other legal process. When any notice, sum- mons, or other legal process is served upon the insurance com- § 61G POLITICAL CODE. 20.1 missioner pursuant to the provisions of this section, the service as to the company shall be deemed complete at the end of sixty (60) days after the date of the delivery of the notice, summons or other process to the insurance commissioner. When any notice, provided by law or by any insurance policy, is to be served on the agent designated, as in this section provided, such service may be made as provided in chapter V, part II. title XIV of the Code of Civil Procedure. Enacted March ,8. 1007; stats. 1007, p. 159. VII Cal. App. Dec. 5. Penalty for failure to file statements. §617. The commissioner must colled the sum of one hundred dollars from any company engaged in the business of insurance in this state, for a willful failure to make and file in his office within the time prescribed by law, any statements or stipulations required by i his title, and an additional penalty of two hundred dollars for each and every month or fractional part of a month thereafter, that such company continue to transact the business of insurance until such statements and stipulations are filed. Enacted March 8, 1007; stats. 1007. p. 160. When laws of other states require trust deposit, duty of com- missioner — Special deposit in state treasury. § 618. Whenever the laws of any state of the United States, or of any country foreign to the United States, require any insurance company organized under the laws of this state, to deposit with some officer of this state securities in trust for, and for the benefit of, the policyholders of such company, as a prerequisite to transacting insurance business in such other state or foreign country, and whenever under any laws of this state any insurance company is required to deposit with any officer of this state securities in trust for, and for the benefit of policy- holders of such company, the insurance commissioner of this state must receive from such company securities in the amount required by the law under which such deposit is made on deposit and in trust for the policyholders of such company. None of such securities so deposited must be estimated above the par value of the same, nor above their market value. The insurance commissioner must, upon the receipt of such securities, forthwith make a special deposit of the same in the state treasury, in packages marked with the name of the company from whom received, where iliey must remain as security for policyholders 292 POLITICAL CODE. § 01S iii the company to whom they respectively belong; but so long as the company continues solvent he must permit it to collect the interest or dividends on the securities so deposited, and from lime to time to withdraw any such securities on depositing other securities in the stead of those to be withdrawn. Such new securities to be of the same value and character mentioned in this section, but such securities must not be withdrawn from the state treasury unless upon the written order of the company making- the deposits, which order must be indorsed by the com- missioner, or upon the order and authority of some court of competent jurisdiction. If the deposit is of mortgages, it shall be accompanied by full abstracts of title or policies of title insurance or certificates of title issued by a duly organized title insurance company authorized to transact business under the laws of Cali- fornia, and the fees for examination of title, unless accompanied by such certificates of title or policies of title insurance, and the fees for appraisal of property shall be paid by the company making the deposit. If the deposit is of stocks or bonds, it shall be accompanied by the fees necessary for the appraisal thereof. Amended April 1."., 1909; slats. 1909, p. 909; in effect in sixty days. Certificate of deposit. S 619. Whenever an insurance company has deposited with the commissioner the requisite security, in conformity with the requirements of the preceding section, the commissioner musl issue to such company a certificate, under his official seal, of such deposit, for each state or country requiring the same, which said certificate must state the items and amount of securities so deposited, and that they are of the value therein represented. Enacted March S, 1907; stats. 1907, p. 161. Withdrawal of deposit. § 620. Whenever any insurance company so depositing securi- ties with the commissioner has paid, canceled, or reinsured all its unexpired policies outstanding in the state, satisfactorily to the insurance commissioner, and all its liabilities under such policies are extinguished, or assumed by other responsible com- panies or corporations, then, if on application of such company, duly verified, and from an examination of the books of the com- pany, and of its officers under oath, the insurance commissioner is satisfied thai all of its policies are so paid, canceled, extin- § 620 POLITICAL CODE. 293 guished, or reinsured, he must deliver up to the company the securities deposited; provided, however, thai pending such exam- ination the securities requested to be withdrawn may at the dis- cretion of the commissioner be delivered to the depositor upon the condition that the applicant deposit with the commissioner securities of like value; and whenever the laws of any other state or country, by reason of which section six hundred and twenty-two of the Political Code of this state is brought into force, shall be repealed and abrogated, then any deposit which shall have been made with the commissioner, under and by reason of said section six hundred and twenty-two of the Polit- ical Code, must be delivered up to the company making the deposit. Enacted March 8, 1907; stats. 1907, p. 161. Annual examination of securities. § 621. The commissioner must make an annual examination of the securities received by him from each insurance company, and if it appear at any time that the securities deposited by any such company amount to less than the sum required for the pur- poses for which the deposil was made, he must notify the com- pany thereof, and unless the deficiency is made up within thirty days after notice, the commissioner must revoke the certificate of authority previously granted and countermand all the certifi- cates he may have issued to the company under this chapter, and give notice thereof to the officers of the several states to whom the certificate may have been transmitted. Enacted .March 8. 1007; stats. 1007. p. 161. Relative to laws of other states. § 622. When by the laws of any other state or country, any taxes, fines, penalties, licenses, fees, deposits of money or of securities, or other obligations or prohibitions, are imposed on insurance companies of this state doing business in such other state or country, or upon their agents therein, in excess of such taxes, tines, penalties, licenses, fees, deposits of securities, or other obligations or prohibitions, imposed upon insurance com- panies of such other state or country, so long as such laws continue in force, the same obligations and prohibitions of whatsoever kind must be imposed upon insurance companies of such other state or country doing business in this state. And whenever under this section any deposit of security shall be -'. I I POLITICAL CODE. § 022 made in this state, such deposit shall be made in bonds of the United Stales government, or in those of the State of California, or in interest-bearing bonds of any of the counties or incorpo- rated cities and towns of the Slate of California, not in default for interest on such bonds, which said securities must be esti- mated at not exceeding their par value nor their market value. Enacted March 8, 1907; stats. 1907, p. 162. Tax on gross premiums, other than California companies. § 622a. Every insurance company other than life, not organ- ized or incorporated under the laws of California, and doing business in this state, and every other insurance company other than life, whose charter may be owned, or a majority of whose stock may be controlled, or whose business may be carried on in the interest, or for the benefit of any insurance company or association not organized or incorporated under the laws of California, shall annually pay to the insurance commissioner, for the state, a tax of two (2) per cent upon the amount of the gross premiums received upon its business done in the state,i during the year ending on I he preceding thirty-first clay of December, less return premiums, reinsurance in companies authorized to do business in this state, and losses actually paid on its business iu this state, and every life insurance company not organized or incorporated under the laws of California, which does business or collects premiums or assessments in the slate, shall annually pay to the insurance commissioner, for the stale, a tax of one per cent upon the amount of the gross pre- miums received upon its business done in this state during the year ending on the preceding thirty-first day of December. This section shall not be held or construed so as to relieve any com- pany or organization from any tax, fee or other obligation or charge imposed upon it by the provisions of section six hundred and twenty-two of this code, and whenever the taxes imposed by the application of section six hundred and twenty-two exceed those imposed by the application of this section the provisions of the former section shall prevail. Enacted March 8, 1907; stats. 1907, p. 162. Bond required. § 623. The commissioner must require every company, not incorporated under the laws of this state, now transacting or proposing to transact insurance business by agent or agents in §023 POLITICAL CODE. 295 this state, before commencing such business to file in his office a bond in favor of the people of the State of California, to be signed by the company, as principal, with two sureties, to be approved by the commissioner, in the penal sum of twenty thou- sand dollars, the condition of such bonds to be as .follows : (1) That the company and its agents will pay all state, county, and municipal property and license taxes, in the manner and at the time prescribed by law ; (2) That the company named therein will conform to all the provisions of the revenue and other laws made to govern them; (3) And that the company will promptly pay all fees, assessments, taxes, penalties, and fines that may be laid upon or against such company. Such bonds may be sued on in the same manner and shall be subject to the same rules governing official bonds. Enacted March S, 1907; stats. 1907, p. 163. VII Cal. App. Dec. 5. Same. §624. 'Wliciicver the same company desires to collect pre- miums of insurance for more than one company, the commis- sioner must require a separate bond, as provided in the preceding section, for each company so represented by such company. Enacted March S, 1907: stats. 1 ( .«J7, p. 163. Commissioner to furnish data to county assessors. § 625. The commissioner must, before the commencement of each fiscal year as fixed in the revenue laws, furnish the assessor of the county in which the principal office of any company doing business of insurance is situated, all the data concerning pre- miums collected by and all other necessary information in rela- tion to the business of such company as will assist the assessor in the performance of his duties. Enacted .March 8, 1907; stats. 1907, p. 163. List of surety companies to be furnished county clerks — What list shall show. § 625o. The insurance commissioner of the State of Cali- fornia must make up and certify to the county clerk of each county of this state a complete list of all corporations engaged in the business of making, guaranteeing or becoming a surety upon bonds or undertakings required or authorized by law, hold- ing certificates of authority to transact such business in (his state, which list shall set forth: (1) The full corporate name 296 POLITICAL CODE. § V>'2~»l of such corporation; (2) The name of the state, territory or country under whose laws such corporation is organized; (3) The date of the certificate of authority issued to such cor- poration to transact such a business in this state. From and after the date when the list aforesaid shall have been certified as hereinbefore provided, the said insurance commissioner shall likewise certify to the county clerk of each county of this state, I he same facts concerning any other corporation thereafter authorized to transact such business in this state. Whenever ihc certificate of authority of any such corporation to do busi- ness in this state shall for any reason be surrendered, revoked canceled, or annulled, or whenever the said certificate of any such corporation has been suspended as provided in section one thousand fifty-six of the Code of Civil Procedure of this state, or whenever any such corporation whose certificate of authority has been so suspended, again becomes authorized in law to do business in this state under such certificate of authority, the insurance commissioner of tins state shall forthwith certify to the county clerk of each county of this state, the name of such corporation, and the dale of such surrender, revocation, cancella- tion, annulment or suspension, or of renewed authority to act under such certificate. Enacted March 23, 1007; stats. 1907, p. 077. *> f* Full compliance of law required. S 626. The commissioner must require from every company. before and after engaging in the business of insurance, a full compliance with all the provisions of title II, part IV, division I. of the Civil ('ode applicable thereto; and every company neglect- ing to comply with such requirements is subject to the tines and penalties therein prescribed. Enacted March S. H">7: stats. L907, p. 163. Payments to be on gold basis. S 627. All statements, estimates, percentages, payments, and calculations, required by this chapter to be made, either by the commissioner or companies, must be made on the basis of gold coin of the United States. Enacted March 8, L907; stats. 1907, p. L63. Separate valuation of policies. § 628. When the certificate of the insurance commissioner of this stale, of the valuation of the policies of a life insurance § 628 POLITICAL (ODE. 2!)7 company, as provided in the next section of this code, issued to any company organized under the laws of this state, shall iidI he accepted by the insurance authorities of any other state, in lieu of a valuation of the same, by the insurance officer of such other state, then every company organized under the laws of such other state doing business in this state, shall be required to have a separate valuation of its policies made under the authority of the insurance commissioner of this state, as pro- vided in the next section. Enacted March 8, 1907; stats. 1907, p. 163. Life companies must furnish data for valuation of policies — Basis of valuation. § 629. Every life insurance corporation organized under the laws of this state must, on or before the first day of February of each year, furnish the insurance commissioner the necessary data for determining the valuation of all its policies outstand- ing on the thirty-first day of December then next preceding. And every life insurance company organized under the laws of any other state or country, and doing business in this state, must, upon the written requisition of the commissioner, fur- nish him, at such time as he may designate, the requisite data for determining the valuation of all its policies then outstand- ing; such valuations must be based upon the rate of mortality established by the American Experience Life Table, and inter- est al four and one half per cent per annum on all outstanding risks written prior to January first, eighteen hundred and ninety- two, and such valuations must be based upon the rate of mor- tality established by the Combined Experience or Actuaries' Table of Mortality with interest at the rate of four per cent per annum on all outstanding risks written from and after the thirty-first, day of December, A. D. one thousand eight hundred and ninety-one, up to and including the thirty-first day of December, one thousand nine hundred and seven, and such valuations must be based upon the rate of mortality established by I be American Experience Table of Mortality with interest at the rate of three and one half per cent per annum on all out- standing risks written from and after December thirty-first, nineteen hundred and seven. When the laws of any other state or territory require of a life insurance company organized under the laws of this slate a valuation of its outstanding policies by any standard of valuation different from that named in this 298 political code. § 629 sec! iuii, the insurance commissioner is hereby authorized Lo make such valuation for use in such other state or territory, and to issue his certificate in accordance therewith. For the purpose of making the valuations, the insurance commissioner is author- ized to employ a competent actuary, whose compensation for such valuation shall be one cent for each thousand dollars of insurance, to be paid by the respective companies whose policies are thus valued. Enacted March S, 1907; stats. 1007, p. 164. Fraternal societies exempt. § 630. Secret or fraternal societies, lodges, or councils incor- porated or organized for the purpose of mutual protection and relief of their members and for the payment of stipulated sums of money to their members or to the beneficiaries of deceased members which conduct their business and secure membership on the lodge system exclusively, having ritualistic work and ceremonies in their societies, lodges, or councils, and all mutual or benefit associations, organized or formed and composed of members of any such society, lodge or council exclusively, are exempt from the provisions of all the insurance laws of this state. Enacted March S, 1907 ; stats. 1907, p. 104. Right of action against commissioner. § 631. If at any time the insurance commissioner revokes the certificate of authority (heretofore granted to any insurance com- pany or refuses to grant a certificate of authority to any insur- ance company, any interested person or company may commence an action against the insurance commissioner for the purpose of reviewing the facts and the law pertinent to the controversy and for the purpose of obtaining the relief refused or for cancel- ing the action of the commissioner. In any such action the court shall have full power to investigate all of the facts de novo without regard to the determinations previously made by the commissioner. In the trial of such actions all of the provisions of the Code of Civil Procedure, not inconsistent herewith, shall be applicable. Enacted March 8, 1907; stats. 1907, p. 104. Publication of notice of withdrawal. S 631 a. Whenever any insurance company shall have with- drawn from business in this state, and whenever for any reason § 631tt POLITICAL CODE. 299 the insurance commissioner shall have revoked or canceled the certificate of authority authorizing any insurance company to do business in this state, the insurance commissioner shall cause to be published, in each of two daily newspapers, one published in San Francisco and one published in Sacramento, a notice of such revocation or of such withdrawal. The expense of such publication shall be paid in advance by the insurance company withdrawing or whose certificate shall have been so revoked. Enacted March 8, 1907; stats. 1907, p. 165. District attorney to be notified of penal offense. § 632. Whenever the insurance commissioner ascertains that any insurance company, or any of its agents, officers or em- ployees, or any other person has been guilty of violating any of the penal statutes of this state, the commissioner shall certify such facts to the district attorney of the county in which such offense was committed. Such offenses shall be prosecuted and tried in all respects as provided in the Penal Code. For the purpose of evidence the commissioner shall furnish to the dis- trict attorney, without cost to the county, certified copies of any papers or records of the office of the commissioner. Enacted March 8, 1907; stats. 1907. p. 165. Agents must file duplicate power of attorney. § 633. No person shall in this state act as the agent or solicitor of any insurance company doing business in this state until he has produced to the commissioner, and filed with him, a duplicate power of attorney from the company, or its author- ized agent, authorizing him to act as such agent or solicitor. Upon filing such power, the commissioner shall issue a license to him to act as such agent or solicitor for such company, if such company has received a certificate of authority from such commissioner to do business in this state. Such license shall continue in force until July first after the date thereof, but must be, and shall be, sooner revoked upon application of the company or its authorized agent. Such license may be renewed from time to time, for an additional period of twelve months, on production by the holder to the commissioner of a certificate from the company that such person's authority as such agent or solicitor continues. The commissioner shall keep an alpha- betical lis! of the names <>t' the persons to whom such licenses 300 POLITICAL CODE. §0(33 shall be issued, with the date of the license and renewal, and the name of the company for whom such person is working. Enacted March S, 1907 ; stats. 1907, p. 1G5. See, also, Pen. C. § 439. Registration of life policies — Special deposit — Excess of securi- ties. § 634. It shall be lawful for any company or corporation transacting the business of life insurance in this state to register with the insurance commissioner such of its policies as may be agreed upon by the company and the insured : such registra- tion to consist in a written or printed list of such policies filed with the commissioner, showing the name and age of the insured, number and date of the policy, and the kind and amount of insurance in each case. Such list must be filed with the com- missioner within thirty days after the issuance of the first registered policy ; and must contain all such policies issued up to the date of filing. After that date the company must, within three days after the first day of each calendar month, file a statement embracing all its registered policies issued since the filing of its last preceding list. Upon filing such lists of policies, from time to time, the company must deposit with the commis- sioner, as a special deposit for the benefit of such registered policies, securities of the denominations slated in section four hundred and twenty-one of the Civil Code as permissible for the investment of the capital and accumulations of insurance com- panies. Such deposit must be in an amount equal to the full net value of all policies registered up to the time of making the deposit, and must at all times be equal to such net value of all registered policies. Upon receipt of such securities, the commissioner must immediately deposit them in the state treas- ury, in accordance with the provisions of section six hundred and eighteen of the Political Code, where they must remain as a special security for the benefit of such registered policies. Such company may at any time withdraw any excess of securi- ties above the net present value hereinbefore specified, upon sat- isfying said commissioner by written proof that such excess exists, and shall be allowed to receive the interest on all securi- ties deposited, and to exchange such securities by substituting other securities of the character in which, by the laws of this slate, it may invest its funds. Enacted March 8, 1907; stats. 1907, p. 166. § 634a POLITICAL CODE. 301 Definition of certain words. § 634a. The word company as used in this title includes every association, corporation, tirni, or person transacting or desiring to transact any kind of insurance business under the laws of the State of California ; provided, that no part of this act shall be held to apply to any company organized under an act entitled "An act to provide for the organization and management of county fire insurance companies," approved April 1, 1S97, or to any corporation doing or transacting the business of mutual insurance on the assessment plan as defined in section four hundred and fifty-three d of the Civil Code of the State of Cali- fornia. The words "capital stock" as referred to in this title shall be deemed to include the capital of any person, firm or association. Enacted March 8, 1907 ; stats. 1907, p. 166. For act of April 1, 1S97, see "Insurance," statutes at large, Appendix. Penalties payable on demand. § 634/j. All fines, taxes, assessments, and penalties provided for in this title shall be due and payable on the demand of the insurance commissioner. If the same are not paid within ten days after such demand is made, then the insurance com- missioner shall institute an action in the name of the people of the State of California for the purpose of recovering such fines, penalties, ami taxes, or either, as the case may he. All such actions shall he subject to all the provisions, of the Code of Civil Procedure, which may be applicable thereto. Enacted March 8, 1907; stats. 1907, p. 166. [Article XVIM>-] [Sections 635a to e,?,r,l added to Political Code March 18, 1905; stats. 1905, p. 156.] Investment Companies. 635a. Investment company defined. 635b. Investment companies not licensed by bank or other commissioners. Deposit with state treasurer cash or securities. 635c. Articles of incorporation to be filed with secretary of state. Fees. Statement. 635d. Duty of state treasurer. Duty of attorney general. 302 POLITICAL CODE. § 635a Sec. 635e. Withdrawal of deposit upon ceasing to do business. 635f. Right to substitute securities for cash deposit. 635fir. Amount of money to be loaned out of reserve fund. Collateral may be deposited with treasurer. 635/i. Reserve fund. 635-i. Duty of attorney general. 635 j. Violation of the provisions of this act ; penalty. 635fc. Not to do business until deposit is made. 635Z. Application. Investment company defined. § 635(/. Every person, corporal ion, company, association, co-partnership or individual in the State of California now engaged in or that shall hereafter engage in the business of placing or selling bonds, debentures or certificates of invest- ment by whatsoever name said bonds, debentures or certificates of investment may be known or designated, when such business is conducted on the partial payment or installment payment plan, or in placing or selling any species of bonds, debentures or certificates of investment, on the partial payment or install- ment plan, wherein or whereby the holder or holders of said bond, debentures or certificates of investment are or may become entitled to claim and receive from such person, corporation, com- pany or association a return, either at a definite or indefinite time, in cash, or in merchandise, or any property, for the partial payments or installments of money so paid, and wherein or whereby the holder may be subject to a fine or forfeiture as a penalty for non-payment of said partial payments or install- ments, is hereby declared to be an investment company under the provisions of this act. Enacted March 18, 1905; stats. L905, p. L56. Investment companies not licensed by bank or other commis- sioners — Deposit with state treasurer cash or securities. § 635?). Every corporation, company, association, co-partner- ship or individual now encaged in, or that shall hereafter engage in business in this state as an investment company as herein- before defined and not licensed by nor under the supervision of the bank commissioners, building and loan commissioners or insurance commissioner, that shall place or sell any bond or bonds, debenture or debentures, certificate or certificates of investment on the partial payment plan whereby the holder or holders of such bond or bonds, debenture or debentures, or cer- tificate or certificates of investment are or may become entitled § 6356 POUTICAX CODE. •'^>.'' to claim and receive from such corporation, company or ass.. ciation, a return, either at a definite or indefinite time, in cash, or in merchandise, or in property, for the partial payments or installments of money so paid, and wherein or whereby the holder may be subject to a fine, or penalty of forfeiture for non- payment of "said partial payments or installments, is hereby required to deposit within sixty days after the passage of this act, in cases of corporations, persons, companies or associations now existing and doing business, or before commencing busi- ness in cases of persons, corporations, companies or associations nol now engaged in business, for the security of the holder or holders of the bonds, debentures or certificates issued by it, witli the treasurer of the State of California, in cash, or in securities to be approved by said treasurer, the sum of five thousand dollars ($5,000). and in addition thereto shall deposit semi-annually, with the treasurer of the State of California, in cash, or securities to be approved by said officer, in the manner aforesaid, ten per cent of all premiums received on the sale of such bonds, debentures or certificates, until the sum so deposited shall amount to the sum of one hundred thousand dollars. Enacted March 18. 1905: stats. 1905, p. 157. Articles of incorporation to be filed with secretary of state — Fees — Statement. § 635c Every investment company as herein defined now doing business in the Stale of California shall, within sixty days after the approval of this act, and every investment com- pany hereafter organized to carry on the business of an invest- ment company as hereinbefore defined, shall, prior to engaging in such business, in addition to making such deposit, file with the secretary of state a duly authenticated copy of its articles of incorporation, charter or other instrument authorizing' it to do business, and shall pay to the secretary of state the fees pro- vided by law to be paid such officer for filing articles of incor- poration within this state for a capital stock of like amount, the same to be accompanied with a statement showing — (a) The name of fhe corporation, company, association, co-partnership or individual : (6) The place where the principal business of the company, corporation, association, co-partnership or individual within this state is or is to be carried on : .°»04 POLITICAL CODE. § 635c (c) The amount of capital stock of the corporation, associa- tion or company, and the amount of paid-up capital stock ; (d) The names and residences of the incorporators and its stockholders at the time when said statement is filed, and the name of its officers and date when their terms will expire ; (e) The name and address of the officers or representative within the state upon whom process can be served ; (f) A statement of the net premiums received from the sale of bonds, debentures or certificates of investment during the preceding- six months; which statement shall remain a public record in said office. Enacted March 18, 1905; slats. 1905, p. ir>7. Duty of state treasurer — Duty of attorney general. § 635(/. The treasurer of the State of California shall when- ever such fact is brought to his knowledge notify the attorney general of the non-compliance of any person, company, corpora- tion or association doing business as an investment company as hereinbefore defined in the State of California with the pro- visions of this act, and the attorney general shall immediately after receiving such notification commence an action against such corporation, company or association in the name of the people of the State of California : («) To dissolve such corporation, company or association, if incorporated or organized under the laws of the State of Cali- fornia ; (b) To enjoin and restrain such person, corporation, com- pany or association from doing business within the State of California, if an individual or if incorporated and organized at any place without this stair. Enacted March 18, 1905; stats. 1905, p. 158. Withdrawal of deposit upon ceasing to do business. § 635c Every corporation, company, association, co-partner- ship or individual that has made a deposit with the treasurer of the State of California in conformity with and under the provisions of this act, may, upon ceasing to do business within the state, maintain an action against the treasurer of the State of California to withdraw its deposit. It shall be the duty of the attorney general to defend such action, and if upon judg- ment being rendered therein it shall be found that said corpora- tion, company or association has no liabilities within the state, the treasurer of the State of California shall return to § 635e political code. .'Jn.~> said corporation, company or association, or to its order, the cash or securities deposited by it under the provisions of this act, but all expenses of such suit shall in any event be paid by such corporation, company or association. Enacted March 18, 1905 ; stats. 1905, p. 15S. Right to substitute securities for cash deposit. S 635f. Every corporation, company, association, co-partner- ship or individual depositing cash or securities with the treas- urer of the State of California, in conformity with the provisions of this act, shall have the right to substitute securities in equal value for cash deposited, or other securities of like value for those on deposit, upon securing the approval of the treasurer of the State of California, to said exchange, and the treasurer is hereby authorized to permit such exchange of cash for securi- ties, or securities for other securities, or securities for cash deposited by such corporation, company or association if in his judgment such securities are equal in value to (he amount of cash provided by law to be deposited. Every corporation, com- pany or association so making a deposit in compliance with or under tin 1 provisions of this act may colled and use any dividend. interest or profits arising on or from any securities deposited with the treasurer of the State of California, provided such security is not thereby depreciated in value. Enacted March 18, 1905; stats. 1905, p. 159. Amount of money to be loaned out of reserve fund — Collateral may be deposited with treasurer. §635//. No corporal ion, company, association, co-partnership or individual doing business within (his state as an investment company as hereinbefore defined shall hereafter lend to holders of bonds, debentures or certificates of investment, out of its reserve fund, any amount greater than the proportionate share of such bond, debenture or certificate of investment in said reserve, and whenever such loan is made it shall be evidenced by the note of the borrower and secured by a deposit as collateral security, of the bond, debenture or certificate of investment on which the same is made. Any collateral so taken may be deposited with the treasurer of the State of California as a part of I he di'posit hereinbefore required and it may be computed as making so much of said required deposit as I lie proportionate share of such bonds, debentures or certificates of investment so 306 POLITICAL CODE. § 6350 deposited as the entire reserve fund amounts to, not exceeding however the amount loaned. Enacted March 18, 1905 ; stats. 1905, p. 159. Reserve fund. § 635//. Every corporation, company, association, co-partner- ship or individual doing business within this state as an invest- ment company as hereinbefore defined shall apportion not less than forty per cent of every partial payment or installment received from the sale of any bond or bonds, debenture or debentures, certificate or certificates of investment as a reserve fund ; said reserve may be invested from time to time within the discretion of the board of directors or governing body of such corporation, company, association, co-partnership or individual. Enacted March 18, 1905; stats. 1905, p. 100. Duty of attorney general. §635?. The attorney general of the State of California shall. .it any time that he may deem proper, or at any time upon the complaint of any holder of any bond or bonds, debenture or debentures, certificate or certificates of investment by what- ever name they be known or designated, make any examina- tion of the affairs of any corporation, company or association doing business within this state as an investment company as herein defined, and inquire into the investments of the reserve fund of such corporation, company or association and if upon such examination it shall be ascertained that any corporation, company or association so doing business has not assets to equal in value the total amount of reserve as in the last section required with interest (hereon at three and a half per cent per annum compounded annually from the time of the sale of such bonds, debentures or certificates of investment, he shall com- nee an action in the name of the people of tin 1 Slate of Cali- fornia to restrain and enjoin said corporation from doing business and unless said reserve is made to equal the amount required before judgment is rendered in said action, judgment shall bo rendered restraining and enjoining said corporation, company or association from doing business within this state, and he shall in his discretion institute proceedings against such company, corporation, association, copartnership or individual to have it declared bankrupt. Enacted March Is, L905; slats. 1905, p. LOO. § 635; POLITICAL CODE. Violation of the provisions of this act; penalty. s 635./. Every officer, agent or representative of any corpora- tion, company or association doing business within this state as an investment company as hereinbefore denned, who shall place or sell any bond or bonds, debenture or debentures, or certificate, or certificates of investment of any company that has not com- plied with the provisions of this act shall be guilty of a mis- anor, and upon conviction thereof shall be punished by a fine of not less than one hundred dollars, and not more than five hundred dollars, for each offense, or by imprisonment in the county jail for not less than thirty days, nor more than six months, or by both such fine and imprisonm Enacted March IS, 1905: stats. VJ^r,, p . 160. Not to do business until deposit is made. < 635/.-. No person, firm, corporation, company, co-partner- ship or individual shall issu sell or > bond or bonds, debenture- or debentures, certificate or certifi- cates of investment on the partial payment or installment plan whereby the holder or holders of such bond or bonds, d ture or debentures, or certificate or certificates of investment are or may become entitled to claim and receive from such per- son, firm, company, association or co-partnership a return either at a definite or indefinite time in cash, or in merchandisi in property, for the payment of installments so paid, and wherein or whereby the holder may be subject to a fine or penalty or forfeiture for non-payment of such partial payments or installments, without having complied with the provisions of this act and first made the deposit required by section two of this act. Enacted March 18, 1905; stats. 1905, p. 161. Application. S 635/. All provisions of this act providing for the making of said deposils. the exchange of securities and the penalties for selling said bonds, debentures or certificates shall apply to all persons, corporations, associations, firms or co-partnerships engaged in the business of in at companies as herein defined. Enacted March 18, L905; stats. 1905, p. 131. 308 POLITICAL CODE. Si 155 CHAPTER VII. GENERAL PROVISIONS RELATING TO DIFFERENT CLASSES OF OFFICERS. Article IX. Bonds of Officers. Sec. 955. Justification of sureties. 956. Sureties for less than the penal sum. Justification of sureties. § 955. The officer whose duly it is to approve official bonds required of state, county, city and county, or township officers, must not accept or approve any such bond, unless each of the sureties severally justify before an officer authorized to admin- ister oaths as follows: 4. A corporation such as is mentioned in section ten hundred and fifty-six of the Code of Civil Procedure of this state, may become and shall be accepted as sole and sufficient surety upon any bond or undertaking authorized or required by the pro- visions of this code or of any law of this state, subject to the provisions of said section, and those of section ten hundred and fifty-seven of the same code. Amended March 16, 1889; stats. 1889, p. 220. See §§ 1056 and 1057, Code Civ. Proc. ; also '-Bonds,"" statutes at large, Appendix. Sureties for less than the penal sum. § 956. When the penal sum of any bond required to be given, amounts to more than one thousand dollars, the sureties may become severally liable for portions of not less than five hun- dred dollars thereof, making in the aggregate, at least two sureties for the whole penal sum. And if any such bond becomes forfeited an action may be brought thereon against all or any number of the obligors, and judgment entered against them, either jointly or severally, as they may be liable. The judg- ment must not be entered against a surety severally bound for a greater sum than that for which he is specially liable by the terms of the bond. Each surety is liable to contribution to his § !l.-|i; POLITICAL CODE. 309 co-sureties in proportion to the amount for which he is liable. Any corporal ion, such as is mentioned in section nine hundred and fifty-five of (his code, may become one of such sureties, or be accepted as sole and sufficient surety. Amended March 10, 1889; stats. 1SS9, p. 220. 71 Gal. 376. TITLE VI. Public Ways. CHAPTER I. PUBLIC WATERS. Article IX. San Francisco Harbor and State Harbor Commissioners. Sec. 2524a. Power of state harbor commissioners to set apart property for aquatic sports. Power of state harbor commissioners to set apart property for aquatic sports. § 2524m. The board of stale harbor commissioners shall have power to set apart and assign any property under their con- trol, for a period not exceeding ten years, to any corporation, club or association organized for the purpose of developing- and promoting aquatic sport; provided, that no property shall be set apart under provisions of this section to any corporation, club, or association the object of which is pecuniary profit; and pro- vided further, that when any property has been set apart under the provisions of this section to any corporation, club or asso- ciation, and such corporation, club or association shall cease to be actively engaged in the prosecution of the object and purposes for which it was organized or incorporated such assignment shall thereupon cease and determine as to such corporation, club, or association. Enacted February 23, 1907 ; stats. 1907, p. 43. 310 POLITICAL CODE. § 2(119 CHAPTER II. HIGHWAYS. Article I. Enumeration of Highways. Sec. 2619. Expiration of franchises. Expiration of franchises. §2619. Whenever the franchise for any loll bridge, trail, turnpike, plank or common wagon road has expired by limitation or non-user, such bridge, trail, turnpike, plank or common wagon road becomes a free public highway; and no claim shall be valid against the public for right of way, or for the land or material comprising such bridge, trail, turnpike, plank, or common wagon road. All public highways, once established, shall continue to be public highways until abandoned by order of the board of supervisors of the county in which they arc situated, or by operation of law, or judgment of a court of competent jurisdiction. Enacted February 28, 18S3 ; stats. 1883, p. 6. 65 Cal. 251 ; 71 Cal. 402 ; 78 Cal. 14, 408 ; 79 Cal. 170 ; 80 Cal. 342 ; 81 Cal. 124 ; 82 Cal. 157 ; 83 Cal. 207 ; 89 Cal. 13; 94 Cal. 539; 95 Cal. 83, 469; 99 Cal. 213, 293; 102 Cal. 29; 103 Cal. 230; 101 Cal. 439; 108 Cal. 590; 122 Cal. 338; 132 Cal. 170; 144 Cal. 354; 7 Cal. App. 492. Article V. Performance of Highway Labor and Commutation. Sec. 2G71. Employers responsible for ki.^1 pull tax assessed against employees. Employers responsible for road poll tax assessed against em- ployees. §2671. Corporations, or other employers of persons in any n.ad district subject to road tax, are chargeable for the road poll tax assessed against their employees to the extent of any credit in their bauds not exceeding such tax; provided, the road over- seer shall first give notice to such employer, or the managing agent of such corporation, and from the time of such notice, the § L'lJTl POLITICAL CODE. 311 amount of any credit in his hands, or that shall thereafter accrue sufficient to satisfy said tax, shall be paid to the road tax col- lector, whose receipt shall be evidence in bar of the prosecution of any action by the employee against the principal for the recovery of the same. Enacted February 28, 1883; stats. 1883, p. 12. Refusal to give names: Ten. C. §434. Article VI. Laying Out, Altering, and Discontinuing Roads. Sec. 2694. Roads crossing railroads, canals, and ditches. Roads crossing railroads, canals, and ditches. § 2694. Whenever highways are laid out to cross railroads, canals, or ditches, on public lands, the owners or corporations using the same must, at their own expense, so prepare their roads, canals, or ditches, that the public highway may cross the same without danger or delay. And when the right of way for a public highway is obtained through the judgment of any com! over any railroad, canal, or ditch, no damages must be awarded for the simple right to cross the same. Enacted February 28, 1883; stats. 1883, p. 15. CHAPTER III. TOLL ROADS. Art. I. Construction ol toll roads. §§2779-2802. II. Use of t"ll roads, and obstructions thereon. §§ 2811- 2817. III. Inspection and repairs. §§2827-2832. Abticle I. Construction of Toll Roads. (See, also, wagon road coi-porations, Civ. C. §512 et seq., and Pol. C. #4047.) Sec. 2779. Notice of and application to construcl the road 2780. Special meeting of supervisors. 2781. Hearing the application. 27 S2. Action of supervisors. 2783. Commissioners, how appointed for other counties. 312 POLITICAL CODE. § 2779 Sec. 2784. Laying out the road. 2755. Compensation of commissioners, map and report. 27 56. Branches and extensions. 2787. Acquiring lands by grant. 2788. Appropriation of damages for highways taken. 2789. Application, when unnecessary. 2790. Orchards and gardens. 2791. Bridging streams. 2792. One road corporation using the roadbed of another. 2793. How to be constructed. 2794. May relay with what. 2795. Milestones and posts. 2796. Guide-posts. -797. Inspection, certificate, and completion. 2798. Erection of gates, etc. 2799. Abandonment of road, and what becomes of it. 2800. County may purchase road, how. 2801. Appraisement and award, how made. 2802. Provisions apply to all toll roads. Notice of and application to construct the road. § 2779. If all lands necessary for the roadbed and other pur- poses are not otherwise acquired as hereinafter provided, the company proposing to construct a toll road through any part of a county must publish a notice in some newspaper published therein, and if none, then in the newspaper nearest thereto, once in each week for six successive weeks, specifying the character of the road, the termini, and each town, city, or village thi'ough which il is proposed to construct it. and the time when-the appli- cation hereinafter required will be made. • After such notice is complete, on the day specified therein, application must be made to the hoard of supervisors of the county for authority to take the necessary land and to construct the road described in the notice. Enacted March 12. 1S72. 95 Cal. 85. Taking of tolls by wagon road corporation : See Civ. C. § 514 ct Se shut, nor any toll collected thereat until the commissioner of highways or road overseer ordering it shut grants a certificate that the road is in sufficient repair, and that the gate ought to be closed. 'The company and their gatekeeper, or other employee, violating or permitting the violation of this section, or the order made under the preceding section, are each liable in a penalty of twenty-five dollars for each offense, to be recovered by the party aggrieved. Enacted March 12, 1872. §2829 POLITICAL CODE. -"'-I Defects in road to be reported to whom. § 2829. Every commissioner of highways or road overseer who discovers a defect in any toll road in his county or district, or a gate placed in a situation contrary to law, must give written notice thereof to one or more of the directors or managing agents of the company, requiring the defective road to he repaired, or the gate to be removed, within a specified time ; and may order that in the meantime such -ales as he specifies be thrown open. Enacted March 12, 1872. Enforcing obedience to notice and requirement. §2830. If the notice and requirements are not obeyed, the commissioner of highways or road overseer must make imme- diate complaint to the district attorney of the county, who must prosecute the company therefor in the name of the people for so suffering the road to be out of repair, or of having placed any gate in a situation contrary to the law ; and if convicted thereof, the company must be fined not exceeding' two hundred and fifty dollars. Enacted March 12, 1872. Fees of commissioner or overseer. § 2831. The commissioner of highways or road overseer com- plaining to the district attorney, or who makes inspection and discovers defects in the road, is entitled to three dollars for each day's services in inspecting the road, or necessarily expended in prosecuting the action therefor, to be paid in case of conviction as costs. When no action is had, but repairs are made, or gate removed, on the inspection and requirement of the commissioner of highways or road overseer, the toll gatherer nearest the road so out of repair, or the gate to be moved, must pay the fees here- inbefore specified out of the tolls collected ; if he refuse to pay the same, the same may be recovered by action, with costs. Enacted March 12. 1872. Pack-trails in mountain districts. § 2832. The boards of supervisors of the several counties of this state are hereby authorized to permit the toll road com- panies heretofore or which may hereafter be organized under the provisions of this code, for the purpose of constructing toll roads within the mountain districts of this slate, to first con- struct on the line of their proposed toll road a pack trail for the .";■Jl- , POLITICAL CODE. § 2832 accommodation of pack trains and horsemen, and to collect tolls thereon; the hoard of supervisors shall fix the amount of license to be paid and tolls to be collected on such pack trail, and that no such permit or franchi.se shall be granted for a longer period than two years. Amended March 30. 1874: amendts. 1S73-4, p. 131. CHAPTER IV. PUBLIC FERRIES AND TOLL BRIDGES. Art. I. General provisions. §§ 2843-2858. II. Toll bridges. §§ 2870-2881. III. Toll ferries. §§ 2892-2895. Article I. General Provisions. (Bridge and ferry corporations: See Civ. C. §§ 5S8 to 631; see, also, Pol. C. §§3378, 4041; also "Bridges," statutes at large, Appendix.) Sec. 2843. What board to grant authority to construct. 2844. Notice must be proved. 2815. Duty of board of supervisors granting authority. 2846. License tax and rate of tolls, how fixed. 2847. Report of bridge or ferry owner or keeper. 2848. Inquiry of board of supervisors fixing tolls. 2849. When to direct license to issue. 2850. Bond, conditions and execution. 2 851. When bridge unites two counties. 2852. Supervisors shall not act if interested. 2853. Toll bridge or ferry within one mile of another, when. 2854. Owner of land preferred to build bridge or ferry. 2855. How lands are acquired for use of bridge or ferry. 2856. Must post rates of toll. 2857. Revenue derived from license, how disposed of. 2858. To keep banks in repair. What board to grant authority to construct. §2843. When authority to construct a toll bridge or to erect and keep a ferry over waters dividing two counties is desired, application must be made to the board of supervisors of that §2843 POLITICAL CODE. 323 county situated on the left bank descending such bay, river, creek, slough, or arm of the sea. Enacted March 12, 1872. 132 Oal. 109 ; 134 Cal. 022 ; 130 Cal. 49. Maintaining toll bridge or ferry without authority : See Pen C. §380. Notice must be proved. ? 2844. The board of supervisors must not grant authority to construct or erect a toll bridge or ferry until the notice of such intended application has been given as respectively required in articles two and three of this chapter. Enacted March 12. 1872. Duty of board of supervisors granting authority. § 2845. The board of supervisors granting authority to con- struct a toll bridge or to keep a public ferry must at the same time : 1. Fix the amount of a penal bond to be given by the person or corporation owning or taking tolls on the bridge or ferry for the benefit of the county, and all persons crossing or desiring to cross the same, and provide for the annual renewal thereof ; '2. Fix: the amount of license tax to be paid by the person or corporation for taking tolls thereon, not less than three nor over one hundred dollars per month, payable annually; 3. Fix the rate of tolls which may be collected for crossing the bridge or ferry, which must not raise annually an income exceeding fifteen per cent on the actual cost of the construction or erection and maintenance of the bridge or ferry for the first year, nor on the fair cash value, together with the repairs and maintenance thereof for any succeeding year ; 4. Make all necessary orders relative to the construction, erection, and business of licensed toll bridges or ferries which they have by law the power to make. The board of supervisors may, at any time they see fit, authorize and maintain fords across any water within any distance of any licensed toll bridge or ferry. Enacted March 12, 1N72. License tax and rate of tolls, how fixed. §2846. The license tax and rate of toll fixed as provided in the preceding section must not be increased or diminished dur- ing the term of twenty years, at any time, unless it is shown 324 POLITICAL CODE. § 284ti to the satisfaction of the board of supervisors that the receipts from tolls in any one year is disproportionate to the cost of construction or erection, or the fair cash value thereof, together with the cost of all necessary repairs and maintenance of the bridge or ferry. The license tax fixed by the board of supervisors must not exceed ten per cent of the tolls annually collected. Enacted March 12, 1S72. Collection of delinquent tax: See act of March 21, 1S72, title "Licenses," statutes at large, Appendix. Report of bridge or ferry owner or keeper. § 2847. Every owner or keeper of a toll bridge or ferry mast report annually to the board of supervisors from which his license is obtained, under oath, the following facts: 1. The actual cost of the construction or erection and equip- ment of the toll bridge or ferry; 2. The repairs made during the preceding year, and the actual cost thereof ; 3. The expense of labor and hire of agents, and other costs necessarily incurred in and about the conduct of their business ; 4. The amount of tolls collected ; and, 5. The estimated actual cash value of the bridge or ferry, exclusive of the franchise. Enacted March 12, 1872. Inquiry of board of supervisors fixing tolls. § 2848. Whenever the board of supervisors are about to fix the license tax and rate of tolls on a bridge or ferry, they must make inquiry into the present actual cash value and the cost of all necessary repairs and maintenance thereof, and for that purpose may examine, under oath, the owner or keeper of the same, and other witnesses, and the assessed value of the bridge or ferry on the assessment roll of the county. When the esti- mate of the board is made, if the same is not agreed to by the owner or keeper of the bridge or ferry, the same must be fixed by three commissioners, one to be appointed by the board of supervisors, one by the owner and keeper, and the third by the county judge, who must hear testimony and fix such value and cost according to the facts, and report the same to the board of supervisors, under oath. In all estimates of the fair cash value of the bridge or ferry, the value of the franchise must not be taken into consideration. Enacted March 12, 1872. §281!) POLITICAL CODE. 325 When to direct license to issue. § 2849. When the cost of const ruction or erection and equip- ment of the bridge or ferry, or the fair cash value thereof, together with the cost of needed repairs and the conduct and maintenance of the same, is ascertained and fixed for the pre- ceding year, the board must on such ascertained amount fix the annual license tax, rate of tolls, and the amount of the penal bond, and direct a license to be issued by the clerk. Enacted March 12, 1872. Bond, conditions and execution. § 2850. The bond required of the owner or keeper of the toll bridge or ferry must be in the sum fixed by the board of super- visors, with one or more sureties, and conditioned that the toll bridge or ferry will be kept iu good repair and condition, and that the keeper will faithfully comply with the laws of the state and all legal orders of the board of supervisors regulating the same, and pay all damages recovered against him by any person injured or damaged by reason of delay at or defect in such bridge or ferry, or in any manner resulting from a non- compliance with the laws or lawful orders regulating the same. The bond must be approved by the president and filed with the clerk of the board of supervisors. Enacted March 12, 1S72. Violation of conditions of keeping ferry : See Pen. C. § 3S7. When bridge unites two counties. §2851. The license tax for a ferry or bridge connecting two counties must be paid to the treasurer of the county granting it, and the license issued by the auditor thereof; but the treas- urer of such county must pay to the treasurer of the county in which the other eud or landing of the bridge or ferry is located one half the sum so received annually, or the auditor may issue the license on filing with him receipts for their respective halves of the tax taken from the treasurer of each of the two counties. Enacted March 12, 1872. Supervisors shall not act if interested. §2852. "When a supervisor is interested in an application to erect, construct, or take tolls, or alter tolls on a bridge or ferry, he shall not aet in any of such matters. Amended April 3, 1880; amendts. 1880, p. 23. See, also, Pol. C. §4323, for proceedings when majority of board is interested. 326 rOLTTICAL CODE. §2853 Toll bridge or ferry within one mile of another, when. § 2853. No toll bridge or ferry must be established within one mile immediately above or below a regularly established ferry or toll bridge, unless the situation of a town or village, the crossing of a public highway, or the intersection of some creek or ravine renders it necessary for public convenience. In addition to the public notice hereinafter required, notice of intention to apply for authority to erect a toll bridge or ferry. as in this section provided, must be served upon the proprietor of the ferry or toll bridge already established at least ten days prior thereto, giving the time and place and grounds of such application. Enacted March 12, 1872. 114 Cal. 49G ; 134 Cal. 58. Owner of land preferred to build bridge or ferry. § 2854. The owner of land on either side of the waters to be crossed, and the owner of the land on the left bank descend- ing over the owner of land on the right bank, is entitled to preference in procuring authority to construct a bridge or ferry : but where such owner fails or neglects to apply for such author- ity within a reasonable time after the necessity therefor arises, the board of supervisors may grant such authority to another. Enacted March 12, 1872. How lands are acquired for use of bridge or ferry. § 2855. When there are lands necessary for the construction, erection, or use of such bridge or ferry which can not be pro- cured by agreement between the owner or corporation and the landowner, the right of way and all other lands necessary for the use and construction or erection thereof may be acquired by condemnation. Enacted March 12, 1872. Must post rates of toll. §2856. Every licensed toll bridge or ferry must have the rates of toll, as fixed by the board of supervisors, printed or written, posted up in some conspicuous place on or near the bridge or ferry. Enacted March 12, 1872. Revenue derived from license, how disposed of. § 2857. The proceeds of the license tax on ferries and toll bridges must be paid into the county treasury for the use of § 2857 POLITICAL CODE. 327 roads aud highways, or may be used by the board of super- visors at any time in the purchase of toll roads and toll bridges. Enacted March 12, 1872. To keep banks in repair. § 2858. All ferry and toll bridge keepers must keep the banks of the streams or waters at the landings of their ferries or bridges graded and in good order for the passage of vehicles. For every day compliance herewith is neglected twenty-five dol- lars is forfeited, to be collected for the use of the road fund of the county. Enacted March 12, 1872. Article II. Toll Bridges. (See, also', Pol. C. §§ 3378 and 4041, and statutes at large, Appendix, heading "Bridges.") Sec. 2870. Application for leave to construct. 2871. Hearing application. 2872. Action of board of supervisors. 2873. What board of supervisors may require. 2874. Use of highways. How constructed over navigable waters. 2N7C. Supervisors may regulate. 2877. Channel of streams navigable by rafts to lie kept clear. 2878. Completion of bridge, rate of toll, and license tax. ^S7 9. Persons exempt. 2880. Penalty for avoiding tolls. 2881. County may purchase toll bridge. Application for leave to construct. § 2870. Every applicant for authority to construct a toll bridge must publish a notice in at least one newspaper in each county in which the bridge or any part of it is to be, or if no paper is published therein, in an adjoining county, once in each week for six successive weeks, specifying the location, the length and breadth of the bridge, and the time at which the application hereinafter required will be made. After notice is given application must be made to the board of 'supervisors of the proper county, at any meeting specified in the notice, lor authority to construct il. Enacted March 12, 1872. 328 POLITICAL CODE. §2873 Hearing application. §2871. On the hearing, any person may appear and be heard. The board may take testimony, or authorize it to be taken by any judicial officer of the county ; and it may adjourn the hearing from time to time. A copy of the articles of incor- poration, certified by the secretary of state, or by the clerk where they are filed, must be attached to and filed with the application if made by a corporation. Enacted March 12, 1872. Articles of incorporation : See Civ. C. § 289 ct seq. Action of board of supervisors. § 2872. If the board are of opinion that the public interests will be promoted thereby, it may. by the assent of a majority of all the members of the board, grant the application by an order entered in its minutes, and particularly describing the bridge. The applicant must cause a certified copy of the order, with a copy of the application, to be recorded in the office of the clerk of the county, before proceeding under it; provided, that the board of supervisors shall not have power to license bridges across the Sacramento or San Joaquin rivers, the Suisun Bay, or Carquinez Straits, the Petaluma, Napa, or Sonoma creeks, except at points above the head of navigation on said streams. Amended March 14, 187S ; amendts. 1877-8, p. 52. 123 Cal. 180. Maintaining bridge without authority : See Pen. C. § 3S0. What board of supervisors may require. § 2873. The board of supervisors may, at the time of grant- ing authority to construct a toll bridge, by order, require the bridge to be constructed within a certain time, to be of a cer- tain width, character, or description, and to be constructed of certain materials, which order must be complied with by the owner or corporation constructing the same before license to take tolls is issued. Enacted March 12, 1S72. Use of highways. § 2874. The corporation or bridge owner may use, in such manner as prescribed by the board, so much of any public road on either side of the stream or waters as may be necessary for constructing and maintaining the bridge and tollhouses. Enacted March 12, 1872. 123 Cal. 181. § 2875 POLITICAL CODE. 329 How constructed over navigable waters. § 2875. All bridges constructed under this chapter crossing navigable streams must be so constructed as not to obstruct navigation, and must have a draw or swing of sufficient space or span to permit the safe, convenient, and expeditious passage al all times of any steamer, vessel, or raft which may navi- gate (he stream or water bridged. Enacted March 12, 1872. 70 Cal. 34S. Supervisors may regulate. §2876. The board of supervisors may. by order, regulate and govern the amount of weight and number of animals that may be driven on to a toll bridge at any one time, and prescribe rules for the government of the draws or swings and attend- ance of the same, and prescribe penalties for disobedience of such rules. Enacted March .12. 1872. Protection of toli bridges: See Pol. O. §2938. Crossing toll bridge faster than a walk: See Pen. C. §388. Channel of streams navigable by rafts to be kept clear. 5 2877. Any one bridging a stream navigated or navigable must at all times keep the channel above and below the bridge clear from all deposits occasi 1 by its erection and preju- dicial to such navigation, and is liable to' pay to all persons unreasonably hindered or delayed in passing such bridge with rafts or vessels all damages sustained thereby. Enacted .March 12. 1872. Completion of bridge, rate of toll, and license tax. S 2878. Every bridge erected under these provisions must have good and substantial railings or sidings, at least four and a half feet high. When a bridge is completed, and a certificate that it is so. and is safe and convenient for the public use. is signed by the commissioner of highways or president of the board of supervisors, and filed in the county clerk's office in the county or counties in which it is located, the directors or owner may erect a tollgate al such bridge, and require such tolls as the boards of supervisors of the county or counties from lime to time prescribe. A license therefor niusl be issued by the auditor of 330 POLITICAL CODE. §2879 the county on giving the necessary bond and paying the license (ax fixed therefor. Enacted March 12, 1872. Delinquent license tax : See "License Tax," statutes at large, Appendix, for act of March 21, 1S72, relative to collection. Persons exempt. § 2879. Any person going to or from a funeral, school, per- forming highway labor, or attending a military parade or court which by law he is required to attend as a witness in a criminal case, is exempt from the payment of tolls. Enacted March 12. 1872. Penalty for avoiding tolls. § 2880. Any person liable to pay toll forcibly or fraudulently passing the gate of a toll bridge without paying the toll is liable to a penalty of ten dollars in addition to the damages caused, to be recovered by the owner. Enacted March 12, 1872. See, also, Pen. C. § 3S9, for evasion of toll. County may purchase toll bridge. § 2881. Within the same time, in like manner, and to the same effect as toll roads are purchased under the provisions of sections twenty-eight hundred and two and twenty-eight hundred and three, the county or counties, jointly acting, in which the same is situated, may purchase a loll bridge constructed under the provisions of this chapter. Enacted March 12, 3872. Article III. Toll Ferries. (See, also, Pol. C. SS 3378 and 4041.) Si;c. 281)2. Application for leave to erect, and notice. 2893. Duty of board of supervisors. 2894. Powers of board of supervisors, 2895. Penalties, how disposed of. Application for leave to erect, and notice. § 2892. Every applicant for authority to erect and take tolls on a public ferry must publish a notice in at least one newspaper in each counts' in which the ferry is or lunches, or if there is no newspaper published therein, then in one published in an adjoin- § 2892 POLITICAL CODE. 331 ing county, and by posting three notices in throe public places in the township for four successive weeks, specifying the location and the time and place when and where the application will be made. After notice is given application must be made in writing, under oath, to the board of supervisors of the proper county, the landings of the proposed ferry must be described, and the names of the owners thereof given, if known ; and if the applicant is not the owner of the land, that notice of the application has been served on the owner thereof at least ten days prior to the appli- cation. Enacted March 12, 1S72. Duty of board of supervisors. § 2893. At the hearing, proof of giving the notice, as required by the preceding section, must be made, and any person may appear and contest the application. If the board finds that the ferry is either a public necessity or convenience, and that the applicant is a suitable person, and by reason of ownership of the landing or failure of the owner thereof to apply is entitled thereto, authority to erect and take tolls on the ferry may be granted to him for the term of twenty years. Enacted March 12, 1872. 134 Cal. 625. Maintaining ferry without authority : See Pen. C. § 380. Failure to pay license tax: See act of March 21, 1872, "Licenses," statutes at large, Appendix, for proceedings to col- lect. Powers of board of supervisors. § 2894. The board of supervisors may make all needful rules and regulations for the government of ferries and ferry keepers, prescribing : 1. Plow many boats must be kept, their character, and how propelled ; 2. The number of hands, boatmen, or ferrymen to be employed, and rules for their government ; 3. How many trips to be made daily ; 4. When and under what circumstances to make trips in the nighttime ; 5. Who may be ferried free of toll : (i. In what cases of danger or peril not to cross ; 7. Penalties for violation of regulations ; 8. In case of steamboats, the rate of speed ; 332 POLITICAL CODE. § 2894 !». The method of ;in. How and by whom action must be broughl to recover penalties. Enacted March 12, 1872. Penalties, how disposed of. § 2895. Penalties recovered under i his article must be paid to the county Ireasnrer for the use of the general road fund of i he county. Enacted March 12, 1872. CHAPTER V. WHARVES, CHUTES. AND PIERS. Sec. 2906. Board of supervisors to authorize construction. 2907. Application, what to contain and how made. 2H08. Petition relative to lands not owned by applicant. 2909. Notice served on non-residents. 2910. Board to hear proof, and may grant authority. 2911. Overflowed or tide lands granted. 291 2. One hundred and fifty feet on each side of wharf, etc. 2913. How to obtain use of lands. 291 I. Dimensions of wharves, chutes, or piers. 2915. Franchise, what to constitute. 2910. Board of supervisors to fix rate of tolls, etc. 2917. License, and the tax for. 2918. To keep in good repair. 2919. Restrictions on granting authority. 2920. Cities and towns exempted and authorized. 2921. Granting railroad right to construct. Board of supervisors to authorize construction. S 2906. The hoards of supervisors of every county in this slate may grant authority to any person or corporation to con- struct a wharf, chute, or pier, on any lands bordering on any navigable bay, lake, inlet, creek, slough, or arm of the sea. situate in or bounding their counties respectively, with a license to lake lolls for the use of the same for the term of twenty years. Enacted March 12. 1872. See, also, Pol. C. §§ 3378 and 4041. § lI'.miT political com:. 333 Application, what to contain and how made. S 2807. Application therefor must be made l>y publishing notice .-is required in section twenty-eight hundred and ninety- two, and tiling a petition in writing, containing: 1. The name and residence of the applicant ; and if a cor- poration, a certified copy of the articles of incorporation; 2. A map of the warns, and the name and location thereof, ami of the adjoining lands; '■'>. A plan of the wharf, chute, or pier proposed to be con- structed, and of the land within three hundred feet thereof; 4. Tin' names of the owners of the lands, and the quantity thereof sought to be used, and whether the right to use the same is or is to be acquired by the applicant; .".. The distance it is proposed to extend the wharf, chute, or pier into tlie waters : (i. The estimated cosl of '.be const ruction of the wharf, chute, in' pier ; and, 7. The time when the application will be made. Enacted March 12. 1S72. Petition relative to lands not owned by applicant. S 2908. When any lands are sought to be appropriated anil used for a wharf, chute, or pier, of which the applicant is not the owner, or the rigid of way and use thereof has not been obtained by agreement, these facts and the particular descrip- tion of such land must lie set forth in the petition of the appli- cant, and a copy of the notice of application must be served on the owner thereof by the sheriff of the county, whose official return is conclusive evidence of service, at least ten days prior to the appointed day set for the hearing of the same. Enacted March 12, 1872. Notice served on non-residents. S 2909. When the owner of the land i^i a non-resident of the county, it is service of notice for the sheriff to leave a copy witli i lie occupant or agent of the owner; if none, then to place a copy in the post office addressed to the owner thirty days prior to Ihi' (lay set for the hearing. If the owner is a minor, insane, idiot, or decedent, notice must be served on the guardian, administrator, or oilier legal representative of such person. Enacted March 12, 1872. 334 POLITICAL CODK. § 2910 Board to hear proof, and may grant authority. § 2910. On the day named in the notice, or to which the hear- ing is adjourned, the board of supervisors must hear proof of publication and service of notice ; if satisfactory, the board must hear the allegations of the petition, and any objections to the granting of the application, and proofs in support of each. If from the proofs it appear that the public good or convenience will be promoted thereby, the board of supervisors may grant to the applicant the right to erect or construct a wharf, chute, or pier, as prayed for. and to take tolls for the use of the same for the term of twenty years. Enacted March 12, 1872. Overflowed or tide lands granted. S 2911. The grant of authority made by the hoard of super- visors, as provided in the preceding section, conveys to the grantee or applicant the right of way and all necessary use for the purposes of the wharf, chute, or pier, of any of the over- flowed, submerged, or tide lands belonging to the state, particu- larly describing the quantity thereof in the order, as also the right of way over any swamp, overflowed, marsh, or tide lands lying between the wharf, chute, or pier and high or dry land, fifty feet in width, for twenty years. Enacted March 12, 1S72. One hundred and fifty feet on each side of wharf, etc. § 2912. The grant of authority herein provided for carries with it the right to have unincumbered and unobstructed the land and water on each side of the wharf, chute, or pier, from high-water mark to navigable water, a distance of one hundred and fifty feet, for the convenience of landing, loading, and unloading vessels, but for no other purpose. Enacted March 12, 1872. How to obtain use of lands. § 2913. Authority to construct a wharf, chute, or pier being granted, the grantee or applicant may procure from the owner the right of way and other necessary incidental use for the wharf, chute, or pier, of any of his lands, by proceedings had under title seven, part three, of the Code of Civil Procedure. Until such use of the lands held adversely is obtained by agree- ment, or by the proceedings hereinbefore mentioned, there is no § 2913 POLITICAL CODE. 335 authority to construct a wharf, chute, or pier, or to take tolls thereon. Enacted March 12, 1872. 57 Cal. 204. Dimensions of wharves, chutes, or piers. § 2914. The wharf, chute, or pier must not be of a greater width than seventy-five (75) feet, and may extend to navigable water; provided, that a wharf constructed upon any of the navigable rivers, straits, sloughs, and inlets in this state may extend along the shores for a distance not exceeding one thou- sand feet, but in no case shall any wharf, chute, or pier extend into the water so far as to obstruct the free navigation of the water on which the same is situated; provided, this act shall not apply to the water-fronts of incorporated cities and towns. Amended April 16, 18S0 ; stats. 1880, p. 66. Franchise, what to constitute. § 2915. The orders granting authority, and agreements, con- tracts, deeds, and decrees of courts granting the right of way and other use of lands, must be filed and recorded in the office of the recorder of the county where the wharf, chute, or pier is situate and constitutes the franchise of the applicant. The fees of the recorder, as also the fees of the clerk, sheriff, and other officers, for services rendered, musl be paid by the applicant. Enacted March 12, 1872. Board of supervisors to fix rate of tolls, etc. S 2916. The board of supervisors must fix the rale of tolls or wharfage for the use of the wharf, chute, or pier annually, which must not produce an income of less than fifteen per cent per annum nor more than twenty-live per cent per annum on the fair cash value of the wharf, chute, or pier, aud on the cost of repair and maintenance thereof, exclusive of the amount paid for license imposed by the next section. Such value and cost of repair and maintenance to lie fixed by the board of supervisors when levying the rates of tolls or wharfage, by hearing evidence and examining the assessment rolls of the county. When fixed, the rates must be furnished the owner, and a printed or written copy thereof conspicuously posted on the wharf, chute, or pier Amended March 24, L876 ; stats. 1875-6, p. 52. 336 POLITICAL CODE. § 'JM17 License, and the tax for. §2917. When the wharf, chute, or pier is completed and the lulls or wharfage fixed, the owner is entitled to a license to take the tolls thereon for the term of one year, to be issued by the county auditor on the payment of such license tax a.s the board of supervisors may fix. which, except that for the first year, must not be more than ten per cent of the gross receipts for tolls or wharfage for the previous year, to be paid to the county treasury for general road purposes. Enacted March 12, 1872. To keep in good repair. § 2918. Any owner or keeper of a wharf, chute, or pier who takes toll or wharfage for the use of the same when not in good repair, or is unsafe or dangerous, forfeits the sum of twenty- five dollars, to be recovered by order of the board of supervisors granting authority to construct it. for the use of -the general road fund of the county, and is liable for all damages occasioned thereby. Enacted March 12, 1872. Restrictions on granting authority. § 2919. No authority must be granted under this chapter to interfere with vested rights, nor to interfere with or infringe grants heretofore made by state authority: nor does authority to construct a wharf, chute, or pier continue for a longer period than two years, unless the same is within that time completed. Enacted March 12. 1872. C,7 Cal. 545; 146 Cal. 397. Cities and towns exempted and authorized. § 2920. The lands of the state situate in the city and county of San Francisco, and those otherwise disposed of or situate within the limits of any incorporated town or city of this state, are excluded from the provisions of this chapter. The municipal authorities of any incorporated city or town other than San Francisco may grant authority to construct wharves, chutes, and ]»iers, as is herein provided for the board of supervisors. Enacted March 12. 1872. 60 Cal. 347. Granting railroad right to construct. §2921. Boards of supervisors of counties in this slate may grant to any railroad corporation authority to construct a § 2921 POLITICAL CODE. 337 wharf or pier on or in front of any lands owned by it bordering on any navigable bay, inlet, lake, creek, slough, or arm of the sea situate in or bounding their counties, respectively, with a license to take tolls for the use of the same for the term of the corporate existence of the said railroad corporations, not exceed- ing fifty years, whenever such board finds the use of said wharf or pier necessary to the exercise of the franchise of such rail- road corporation for terminal purposes, and the same may be granted without offering the same for sale. Nothing contained in this chapter shall be construed to limit the powers of such boards to grant the right to such railroad corporations to build and construct for terminal purposes on and in front of any lands owned by it any wharf or pier of the width necessary for the carrying on of the business of such railroad at such terminal, not to exceed one thousand (1,000) feet, and to the length that it may be desirable to construct the same, so that it may not prevent the navigation by boats and vessels of such navigable bay, inlet, lake, creek, slough, or arm of the sea; provided, that there shall be excluded from the operation of this section any and all territory and property under the jurisdiction or control of any incorporated city or town or any board of state harbor commissioners. All of the provisions of this chapter not in con- flict with anything in this section contained are hereby made applicable to all proceedings had under tin's section. Enacted March 22. 1899; stats. 1S99, p. 2:!!. CHAPTER VI. MISCELLANEOUS PROVISIONS RELATING TO PUBLIC- WAYS. Si;.'. 2938. Protei tion of bridges. Protection of bridges. §2938. The owner of any toll bridge, and any plank-road company owning a bridge of not loss than twenty feet span. may put up conspicuously at each end of it notice in these words in large characters: "Five dollars fine for riding or driving on this bridge faster than a walk"' ; and whoever rides or drives faster than a walk on such bridge forfeits to the owner the sum of five dollars. Enacted March 12. 1S72. See. also. Pen C. \ 38S. I"i VI.. 33S political com:. § 3152 TITLE VII. General Police of the State. CHAPTER VI. LOST AND UNCLAIMED PROPERTY. Article II. Unclaimed Property. Sec. 315-'. Goods may be retained until charges paid. 3153. Property unclaimed within sixty days to be sold. 3154. Proceeds unclaimed, where to go. 3155. Carrier's responsibility ceases, when. 3156. Property upon which advances are made may be sold. 3157. Fees of officers. Goods may be retained until charges paid. S 3152. When any goods, merchandise, or other property has been received by any railroad or express company, or other com- mon carrier, commission merchants, innkeepers or warehouse- men, for transportation or safe-keeping, and are not delivered to the owner, consignee, or other authorized person, the carrier. commission merchant, innkeeper, or warehouseman, may hold or store the same with some responsible person until the freighl and all just and reasonable charges are paid. Enacted March 12, 1872. 94 Cal. ITS. Property unclaimed within sixty days to be sold. $3153. If no person calls for the property within sixty days from the receipt thereof, and pays freighl and charges thereon, the carrier, commission merchant, innkeeper, or warehouseman may sell such property, or so much thereof as will pay freight and charges, to the highest bidder at public auction, having first caused such notice of sale to be given as is customary in sales of goods by auction at the place where said goods may be held or stored. If any surplus is left, after paying freight, storage, expenses of sale, and other reasonable charges, the same must be paid over to the owner of such property, upon §3153 POLITICAL CODE. 339 demand being made therefor at any time within sixty days after 1 tie sale. Amended March 6, 1903; slats. 1903, p. 88. Proceeds unclaimed, where to go. §3154. If the owner or his agent fails to demand such sur- plus within sixty days of the time of such sale, then it must be paid into the county treasury, subject to the order of the owner. Enacted March 12, 1872. Carrier's responsibility ceases, when. S 3155. After the storage of goods, merchandise, or property, as herein provided, the responsibility of the carrier censes, nor is the person with whom the same is stored liable for any loss or damage on account thereof, unless the same results from his negligence or want of proper care. Enacted March 12, 1872. Property upon which advances are made may be sold. § 3156. When any commission merchant or warehouseman receives on consignment produce, merchandise, or other property, and makes advances thereon, either to the owner or for freight and charges, lie may. if the same is not paid to him within sixty days from the dale of such advances, cause the produce. merchandise, or property on which the advances were made, ro be advertised and sold as provided herein. Enacted March 12, 1872. Fees of officers. •j 3157. The fees of officers under this chapter are the same allowed for similar services in other cases provided in this code. to be paid by the taker up or tinder, and recovered of the owner. Enacted March 12, 1872. 04 Cal. 17S. Warehouse receipts, etc.: See Civil C. SS 1858 to ls.~>s/': see, also. "Warehousemen,"' statutes at large, Appendix. 340 POLITICAL CODE. § 3196 CHAPTER VII. MARKS AND BRANDS. Article III. Trade-marks. (See, .ils... <'iv. C. §§654, <;",. 901, 1772, 1773; Pen. C. SS 34f>(/ to 3. r )4 : ;i ; "Trade-marks," statutes at large, Appendix.) Sec. .SI!) 6. "Trade-marks" defined. 3196a. Registration of l'ann name. ol'jiib. Trade-mark on products. 3197. Exclusive use of trade-mark, how secured. 3198. Record of trade-marks. 3199. Assignments. Injunctions. 3200. Use of by labor union. 3201. Infringement of trade-mark used by trade union. "Trade- marks" defined. S 3196. The phrase "trade-mark" as used in this chapter includes every description of word, letter, device, emblem, .stamp, imprint, brand, printed ticket, label, or wrapper usually affixed by any mechanic, manufacturer, druggist, merchant, or trades- man, to denote any goods to hi- goods imported, manufactured, produced, compounded or sold by him, other than any name, word, or expression generally denoting any goods to lie of some particular class or description, ami also any name or names, marks or devices, branded, stamped, engraved, etched, blown, or otherwise attached or produced upon any cask, keg, bottle, vessel, siphon, can. case, or other package, used by any mechanic, manufacturer, druggist, merchant or tradesman, to hold, con tain or inclose the goods so imported, manufactured, produced, compounded or sold by him. other than any name, word or expression generally denoting any goods to be of some particular class or descripl ion. Amended March ::. 1903; stats. 1903, p. SO. 63 Cal. 4 IC. Registration of farm name. § 3196«. Any person may adopt a name for any farm or estate owned or leased by him, and register it in the manner provided for the registration of trade-marks. Such registration shall have the same effect as the registration of a trade-mark. Xew section; added .March s, I'.tuH; stats. 1909, p. 232; in effect in si\l\ days. § 3196& POLITICAL CODE. 341 Trade-mark on products. §31966. Any person selling or marketing the products grown on any particular farm or estate may use the name of such farm or estate as a trade-mark on such products, in the same manner as provided for other trade-marks in Section 3190 of this code, and subject to the same rights and duties as provided in this article. New section; added March S, 1909; stats. 1909, p. 233; in effect in sixty days. Exclusive use of trade-mark, how secured. § 3197. Auy person or persons, desiring to secure within this state the exclusive use of any trade-mark or name for any article of manufacture or for any business, shall, within thirty days after commencing to use such trade-mark or name, or at any time thereafter and before the filing of the said trade- mark or name by any other person, firm or corporation, file with the secretary of state his claim to the same, and a copy or description of such trade-mark or name, with his affidavit attached thereto, certified to by any officer authorized to take acknowledgments of conveyances, setting forth that he (or the firm or corporation of which he is a member) is the exclusive owner, or agent of the owner, of such trade-mark or name. Amended March 0, 1909; stats. 1909, p. 150; in effect in sixty days. 66 Cal. 7^; 102 Cal. 44; G Cal. App. 534. Record of trade-marks. S 3198. The secretary of state must keep for public examina- tion a record of all trade-marks or names filed in his office, with the date when filed and name of claimant; and must at the time of filing issue to the claimant a certificate of such filing under the great seal of the state, and collect from such claimant, a fee of five dollars, as provided for in section four hundred and sixteen of this code. Provided, however, the secretary of state shall refuse to file any trade-mark or name identical with, or so similar to any trade-mark or name already filed as to be cal- culated or liable to deceive. Amended March 6, 1909; stats. 1909, p. 150; in effect, in sixty days. Note. — § 3198. Amended to conform to the fee bill in section 416 of the Political Code, which had, both with reference to the fee to be collected and with reference to the disposition of the fees collected, superseded said section 3198. 342 POLITICAL CODE. §3111'.) Assignments — Injunctions. §3199. Any person who has first adopted a trade-mark or name by filing same in the office of the secretary of state and has used said trade-mark or name, whether within or beyond the limits of this state, is its original owner. Such ownership may be transferred in the same manner as personal property and is entitled to the same protection by suits al law. and any courl of competent jurisdiction may restrain, by injunction, any use of trade-marks, or names, in violation of this chapter. Amended March 6, 1909; stats. 1909, p. 150; in effect in sixty days. CO Cal. 78; 102 Oal. 44. Use of by labor union. § 3200. Any trade union, labor association, or labor organiza- tion, organized and existing in tins state, whether incorporated or not, may adopt and use a trade-mark and affix the same to any goods made, produced or manufactured by the members of such trade union, labor association, or labor organization, or to the box, cask, case, or package containing such goods, ami may record such trade-mark by filing or causing to be filed with the secretary of state its claim to the same, and a copy or descrip- tion of such trade-mark, with the affidavit of the president of such trade union, labor association, or labor organization, certi- fied to by any "officer authorized to take acknowledgments of conveyances, setting forth that the trade union, labor associa- tion, or labor organization of which he is the president is the exclusive owner, or agent of the owner, of such trade-mark; and all the provisions of article three, chapter seven, title seven, part three, of the Political Code, are hereby made applicable to such trade-mark. Enacted March 17. 1887; stats. 1887, p. 167- Infringement of trade-mark used by trade union. §3201. The president or other presiding officer of any trade union, labor association, or labor organization, organized and existing in this state, which shall have complied with the pro- visions of tin' preceding section, is hereby authorized and empowered hi cummeuce and prosecute in bis own name any action or proceedings he may deem necessary for the protection of any trade-mark adopted or in use under the provisions of the preceding section, or for the protection or enforcement of any §3201 POLITICAL CODE. ol.°, rights or powers which may accrue to such trade union, labor association, or labor organization by the use or adoption of sail! trade-mark. Enacted March 17, 1887; stats. 1887, p. 168. CHAPTER X. HOURS OF LABOR. (See. also. "Hours of Labor," statutes ai large, Appendix.) Sec. 3246. Twelve hours on street cars. 3250. Hours of labor on street cars. Penalty for violation. Twelve hours on street cars. S 3246. Twelve hours' labor constitutes a day's work on the part of drivers and conductors, and gripmen of street cars for the carriage of passengers. Any contract for a greater number of hours' labor in one day shall he ami is void, at the option of the employee, without regard to the terms of employment, whether the same he by the hour. day. week, month, or any other period of time, or l>y or according to the trip or trips that the car may. might, or can make between the termini of the route, or any less distance thereof. Any and every person labor- ing over twelve hours in one day as driver, or conductor, or grip- man, on any street railroad, shall receive from his employer thirty cents for each hour's labor over twelve hours in each day. Enacted March 11. 1887 ; stats. ISM. p. 102. Hours of labor on street cars — Penalty for violation. S 3250. Xo person snail be employed as conductor, or driver, or gripman on any street railroad, for more than twelve hours in one day. except as in this act provided : and any corporation, or company, or owner, or agent, or superintendent, who know- ingly employs any person in such capacity for more than twelve hours in one day. in violation of the terms of this act, shall forfeit the sum of fifty dollars as a penalty for such offense, to the use of the person prosecuting any action therefor, and any number of forfeits may be prosecuted in one action. Enacted March 11. 1887; stats. 1887, p. 102. 344 POLITICAL CODE. § 3378 CHAPTER XV. LICENSES. Article II. Classification and Taxes. (See, also, "License Tax," statutes at large, Appendix.) Sec. 337S. Bridge, ferry, wharf, chute, or pier license. 337'J. Brokers, trust companies, and others. Bridge, ferry, wharf, chute, or pier iicense. § 3378. Licenses to take tolls on bridges, ferries, wharves, chutes, or piers are fixed annually by the boards of supervisors. The licenses therein provided for are issued by the county auditor, and must be obtained from the tax collector of the county. Enacted March 12, 1872. Toll bridges and ferries: See Pol. C. §§2843-2895; see, also Pol. C. § 4041. Delinquent license tax, proceedings to collect: See "License Tax," statutes at large, Appendix, for act of March 21, 1872. Wharves, chutes, and piers: Pol. C. §§2900-2921. Omitting to procure license: Pen. C. §435. Brokers, trust companies, and others. S 3379. Persons engaged in banking, loaning money at inter- est, or in buying or selling notes, bonds, or other evidences of indebtedness of private persons; or in buying or selling state, county or city stocks, or other evidences of state, county, or city indebtedness; or stocks, or notes, bonds, or other evidences of indebtedness of incorporated companies; or in buying or selling gold dust, gold or silver bullion, or gold or silver coin, are divided into six classes, and must pay licenses as follows: 1. Those doing business in the aggregate to the amount of two hundred and fifty thousand dollars per quarter and over, con- stitute the first class, and must pay a license of one hundred dollars per quarter ; 2. Those doing business to the amount of two hundred thou- sand dollars, and less than two hundred and fifty thousand dollars per quarter, constitute the second class, and must pay a license of eighty dollars per quarter; § .",37!) POLITICAL CODE. o45 '.\. Those doing business to the amount of one hundred thou- sand dollars, and less than two hundred thousand dollars per quarter, constitute the third class, and must pay a license of forty dollars per quarter; 4. Those doing business to the amount of fifty thousand dol- lars, ami less than one hundred thousand dollars per quarter, constitute the fourth class, and must pay a license of twenty-live dollars per quarter ; 5. Those doing business in any amount under fifty thousand dollars, and over five thousand dollars per quarter, constitute the fifth class, and must pay a license of fifteen dollars per quarter ; 6. Those doing business in any amount under five thousand dollars per quarter, constitute the sixth class, and must pay a license of three dollars per quarter. Enacted March 12, 1872. TITLE IX. Revenue. CHAPTER I. PROPERTY LIABLE TO TAXATION. Sec. ::6o7. Property subject to taxation. 3608. Shares of stock in corporations. 3609. Shares of national banks. 3610. Same. 3611. Exemption of church property. Property subject to taxation. § 3607. All property in this stale, not exempt under the laws of the United States, excepting fruit and nut-bearing trees under the age of four years from the time of planting in orchard form, and grapevines under the age of three years from the time of planting in vineyard form, growing crops, property used exclu- sively for public schools, free public libraries, ami free museums, and such as ma\ belong to the United States, this slate, or to any county or municipal corporation within this slale, is subject 346 POLITICAL CODE. § .",007 to taxation, as in this code provided; but nothing in this rode shall be construed to require or permit double taxation. Amended March 2S, 1S95; stats. 1895, p. 310. 62 Cal. 115; 67 Cal. Ill; 99 Oal. 675; 10S Cal. 193; 134 Cal. 480; 137 Cal. 524 : 148 Cal. 85; 14!) Cal. 5S6; 153 Cal. 569; 6 Cal. App. LSI, 352. "Property" defined, as subject to taxation: See Pol. C. §3617. The taxing of the property of a corporation, as well as the shares of the stock, is expressly declared to be double taxation : Pol. C. § 3608. Exemptions authorized by ('(institution of California: See art. XIII, § 1. Shares of stock in corporations. S 3608. Shares of slock in corporations possess uo intrinsic value over and above the actual value of the property of the corporation which they stand for and represent ; and the assess- ment and taxation of such shares, and also all the corporate property, would be double taxation. Therefore, all property belonging to corporations, save and except the property of national banking associations, not assessable by federal statute, shall be assessed and taxed. But no assessment shall be made of shares of stock in any corporation, save and except in national banking associations, whose property, other than real estate, is exempt from assessment by federal statute. A tided March 14. 1S99; stats. 1899, p. 96. 62 Cal. 11."-: HC Cal. 22; 142 Cal. 282; 14!> Cal. 578, 580, .187. 58S, 5S9, 59J ; 153 Cal. 562, 564, .~>4 1 the deductions permitted by law to the holders of moneyed capital in the form of solvent credits, in the same manner as such deductions are allowed by the provision of paragraph six of section thirty-six hundred and twenty-nine of the Political Code of the State of California. In making such assessment to each stockholder, there shall be deducted from the value of his shares of stock such sum as is in the same proportion to such value as the total value of its real estate and property exempt by law from taxation bears to the whole value of all the shares of capital stock in said national bank. And nothing herein shall be construed to exempt the real estate of such national bank from taxation. And tbe assessment and taxation of such shares of stock in said national banking associations shall not be at a greater rate than is made or assessed upon other moneyed capital in the hands of individual citizens of this state. Enacted March 14, 1899; stats. 1899, p. 96. 149 Cal. 578, 579, 580. Same. § 3610. The assessor charged by law with the assessment of said shares shall, within ten days after he has made such assess- ment, give written notice to each national banking association of such assessment of the shares of its respective shareholders; and no personal or other notice to such shareholders of such assessment shall be necessary for the purpose of this act. And in case the tax on any such stock is unsecured by real estate owned by the holder of such stock, then the bank in which said slock is held shall become liable therefor: and the assessor shall colled the same from said hank, which may then charge the amount of the lax so collected to the account of the stockholder owning such slock, and shall have a lien, prior to all other liens, on his said stock, and the dividends and earnings thereof, for the reimbursement to it of such taxes so paid. Enacted March 14, 1899; stats. 1899, p. 07. 140 Cal. 578, 570, 580. Exemption of church property. § 3611. All buildings, and so much of the real property on which they are situated as may he required for the convenient use and occupation of said buildings, when the same are used solely and exclusively for religious worship, shall be free from taxation; provided, that no building so used which may he rented for religious purposes and rent received by the owner •".IS POLITICAL CODE. S.'Kill therefor shall be exempt from taxation. That any person claim- ing property to be exempt from taxation under this section shall make a return thereof to the assessor annually, the same as property is listed for taxation, and shall accompany the same by an affidavit showing that the building is used solely and exclusively for religious worship, and that the described portion of the real property claimed as exempt is required for the con- venient use and occupation of such building, and that the same is not rented for religious purposes and rent received by the owner therefor. Enacted February 12, 1903; stats. 1903, p. 21. See, also. Constitution of California, art. XIII, § 1 ! j. CHAPTER II. DEFINITIONS. Sec. 3617. Definition of terms and words. Definition of terms and words. § 3617. Whenever the terms mentioned in this section are employed in this act. they are employed in the senses hereafter affixed to them : First- — The term "property" includes moneys, credits, bonds (except railroad or quasi-public corporations), stocks, dues, franchises, and all other matters and things, real, personal, and mixed, capable of private ownership. Second — The term "real estate" includes: 1. The possession of, claim to, ownership of, or right to the possession of land. '_'. All mines, minerals, and quarries in and under the land, all timber belonging to individuals or corporations, growing or being on the lands of the United States, and all rights and privileges appertaining thereto. .'!. A mortgage, deed of trust, contract or other obligation by which a debt is secured, when land is pledged for the payment and discharge thereof, shall, for the purpose of assessment and taxation, be deemed and treated as an interest in the land so pledged. 4. Improvements. Third The term "improvements" includes: 1. All buildings, structures, fixtures, fences and improvements 8 ."iCIT POLITICAL CODE. 349 erected upon or affixed to the land, except telephone and tele- giaph lines. 2. All fruit, nut-bearing-, or ornamental trees and vinos, not of natural growth, excepting fruit and nut-bearing trees under four years of age, and grapevines under three years of age. 3. Alfalfa, after the first year's planting. Fourth — The term "personal properly" includes everything which is the subject of ownership, not included within the mean- ing of the term "real estate" or "improvements." Fifth — The term "value" and "full cash value" mean the amount at which the property would be taken in payment of a just debt from a solvent debtor. Sixth -The term "credits" means those solvent debts, not secured by mortgage or trust deed, owing to the person, firm, corporation, or association assessed. The term "debt" means those unsecured liabilities owing by the person, firm, corpora- tion, or association assessed to bona fide residents-of this stale, or firms, associations or corporations doing business therein; but credits, claims, debts, and demands due. owing or accruing for or on account of money deposited with savings and loan corporations or with building and loan associations, shall, for the purpose of taxation be deemed and treated as an interest in the property of such corporation, and shall not be assessed to the creditor or owner thereof. Amended April 15, 1909; stats. 1000, p. 919; in effect in sixty days. 58 Cal. L46; 62 Cal. 115; 65 Gal. 460; 83 Cal. 449; 97 Oal. 220; I'M Cal. 622 ; 101) Cal. 398, 402; 113 Cal. 400; 121 Cal. :M ; 128 Cal. 596; 137 Oal. 514; 1 12 Cal. 290; 111 Cal. 153; 1 is Cal. 326; 149 Cal. 5S5, 666; 153 Cal. 562, 569; XXXVII Cal. 1 159, 160, :;1^. 319, 321; VIII Cal. A]. p. Dee. 317. See. also. Pol. C. § 3607 ei seq. Assessment: See Pol. C. § .'!('»27 ei seq. See. also. Constitution of California, ait. XII 1. S 1. 350 POLITICAL CODE. § 3627 CHAPTER III. ASSESSMENT OF PROPERTY. Sec. 3627. Property, how assessed 3628. Franchises. Other taxable property. 3629. Contents of statement required by assessor. 3630. Blank forms of statement, and affidavit therefor. 3641. Property of firm or corporation assessed where situated. 3643. Ferries and, toll bridges, where assessed. 3663. Assessment of water ditches, toll roads and telegraph lines. 3664. Agent of corporation, statement by to state board of equalization. 3665. Assessment of railway franchises and properties. 3666. Record of assessment of railways. 3667. County rate of taxation and notice to controller. 3668. Publication by controller. 3669. Certain taxis to be paid state treasurer. 3670. Controller to sue for delinquent taxes. 3671. Basis of taxation for counties. Property, how assessed. § 3627. All taxable property must be assessed at its full cash value. Laud and improvements thereon shall be separately assessed. Cultivated and uncultivated land, of the same quality, and similarly situated, shall be assessed at the same value. A mortgage, deed of trust, contract, or other obligation by which a debt is secured, shall, for the purposes id' assessment and taxa lion, be deemed and treated as an interest in the property affected thereby, except as to railroad and other quasi-public corporations. In case of debts so secured, the value of the property affected by such mortgage, deed 7 Cal. 626; 68 Cal. 15; 71 Cal. 207: 73 Cal. 51 ; so Cal. NX : 83 Cal. 570 ; 85 Cal. 200; !>7 Cal. 220 ; 112 Cal. 596; 115 Cal. 78; 116 Cal. 29; li'l Cal. 384; 132 Cal. 76; XXXVII Cal. Dec. 322; 1 Cal. App. 581 : L' Cal. App. 431 : 3 Cal. App. 623 : VII Cal. App. Dec. :;:;. Definitions : See Pol. C. S ::<'>17. Blank forms of statement, and affidavit therefor. S 3630. The board of supervisors must furnish tie' assessor with blank forms, as prescribed by the stale board of equaliza- tion, of the statements provided for in the preceding sections, affixing thereto an affidavit, which must be substantially as follows : •'I. - — , do swear that I am a resident of the county of (naming it I : that the above list contains a full and correct statement of all property subject to taxation which I. or any firm of which I am a member, or any corporation, association, or company of which I am president, cashier, secretary, or managing agent, owned, claimed, possessed, or controlled, at twelve o'clock M., on the tirsl Monday in March last, and which is not already assessed this year: and that I have not, in any manner whatsoever, transferred or disposed of any property, or placed any property out of said county or my possession for the purpose of avoiding any assessment upon the same, or of making Ibis statemenl : and that the debts therein stated as owing by me are owing to bona fide residents of this slate, or to firms or corporations doing business in this state." The affidavit to the statement on behalf of a firm or corpora- §3630 POLITICAL CODE. 355 tiou must stat.' the principal place of business of the firm or corporation, and in other respects must conform substantially to the preceding form. Amended .March 28, 1895; stats. 1895, p. 312. 68 Cal. 15; 85 Cal. 200; 1 Oal. App. 245; 2 Oal. App. 431 ; VII Cal. App. Dec. 33. Property of firm or corporation assessed where situated. S 3641 . The property of every Jinn and corporation must be assessed in the county where the property is situate, and musl be assessed in the name of the firm or corporation. Enacted March 12, 1S72. 64 Cal. 507; 153 Cal. 564, 509. See, also. Pol. C. § 3628, as to place of assessment. Ferries and toll bridges, where assessed. § 3643. A ferryboat is a vessel traversing across any of the waters of the state, between two constant points, regularly employed for the transfer of passengers and freight, authorized by law so to do, and also any boat employed as a part of the system of a railroad for the transfer of passengers and freight. plying at regular and stated periods between two points. Where ferries connect more than one county, the wharves, store- houses, and all stationary property belonging to or connected with such ferries, must be assessed, and the taxes paid, in the county where located. The value of the franchise, and water craft, and of all loll bridges connecting more than one county, must be assessed in equal proportions in the counties connected by such ferries or toll bridges. Amended March 12, 1885; stats. Ins.".. p . !>;>,. Assessment of water ditches, toll roads, and telegraph lines. S 3663. Water ditches constructed for mining, manufacturing or irrigating purposes, and wagon and turnpike toll roads must be assessed the same as real estate by the assessor of the county, at a rate per mile for that portion of such property as lies within his county. All telegraph and telephone lines shall be described in the same manner :is real estate is described, but assessed as personal property by the assessor of the county, at a rate per mile for that portion of such property as lies within his county. Amended March 28, 1895; stats. 1895, p. 316. T'.i Cal. 590; 84 Cal. 74 ; 137 Cal. 515; 14!) Cal. 666; VIII Cal. App. Dec. 378. 356 POLITICAL CODE. § 3664 Agent of corporation, statement by to state board of equalization. § 3664. The president, secretary, or managing agent, or such other officer as the state board of equalization may designate, Of any corporation, and each person, or association of persons. owning or operating any railroad in more than one county in this state, shall, on or before the first Monday in April of each year, furnish the said board a statement, signed and sworn to by one of such officers, or by the person or one of the persons forming such association, showing in detail for the year ending on the first Monday in March in each year: 1. The whole number of miles of railway in the state, and. where the line is partly out of the state, the whole number of miles without the state, and the whole number within the state, owned or operated by such corporation, person, or association; '2. The gross earnings of the road in the state, and. where railway, and the value of the same within the state; .">. A general description of the right of way; 1. The number of each kind of all rolling stock used by such corporation, person, or association in operating the entire rail- way, including the part without the state; 5. Number, kind, and value of rolling stock owned and oper- ated in the state ; <;. Number, kind, and value of rolling stock used in the state, but owned by the party making the returns; 7. Number, kind, and value of rolling stock owned, but used out of the state, either upon divisions of road operated by the party making the returns or by and upon other railways. Also showing in detail for the year preceding the thirtieth day of June : 1. The gross earnings of the entire road ; 2. The gross earnings of the road in the state, and, where the railway is let to other operators, bow much was derived by the lessor as rental; 3. The cost of operating the entire road, exclusive of sink- ing fund, expenses of land department, and money paid to the United States ; 4. Net income for such year, and amount of dividend de- clared ; 5. Capital stock authorized ; 0. Capital stock paid in : 7. Funded debt; § 3GG4 POLITICAL CODE. 357 8. Number of shares authorized ; 9. Number of shares of stock issued ; 10. Any other facts the state board of equalization may require ; • 11. A description of any part or portion of such railroad which may be in the possession and control of any other rail- road company or corporation, and operated by such other cor- poration under a lease or other contract: 12. The president, secretary, or managing agent, or such other officer as the state board of equalization may designate of any corporation or association of persons operating in this state any portion of a line of railroad owned by and belonging to some ether corporation or association, which runs in more than one county, shall make the same statement as is herein required to be made by the foregoing provisions of this section by the owner of such railroad ; 13. A description of the road, giving the points of entrance into and the points of exit from each county, with a state- ment of the number of miles in each county. When a description of the road shall once have been given, no other annual descrip- tion thereafter is necessary, unless the road shall have been changed. Whenever the road, or any portion of I he road, is advertised to lie sold, or is sold for taxes, either state or county, no other description is necessary than that given by, and the same is conclusive upon tin 1 corporation, person, or association giving the description. No assessment is invalid on account of a misdescription of the railway, or the right of way for the same. If such statement is not furnished as above provided, the assessment made by the slate board of equalization upon I he property of the corporation, person, or association failing to furnish the statement is conclusive and final. Amended March 1!), 1007; stats. 1907. p. 689. 60 Cal. 12, 27; GS Cal. 552; 105 Cal. .7.(1 ; 124 Cal. 49S, 502. Assessment of railway franchises and properties. §3665. The slate board of equalization must meet at: the stale capitol on the third Monday in July, and continue in open session from day to day, Sundays excepted, until the first Mon- day in August. At such meetings the hoard must assess the franchise, roadway, roadbed, rails, and rolling stock of all rail- roads operated in more than one county, bul franchises derived 358 POLITICAL CODE. § 3665 from the United States shall not be assessed. Assessments must be made to the corporation, persons, or association of persons owning the same. If any portion of any railroad less than the whole is operated by some corporation or association of indi- viduals other than the owner of such railroad, under lease av other contract, and such portion so operated runs in more than one county, the value of such part or portion of such railroad shall l>c assessed separate and apart from the balance of said railroad, and the board shall assess the roadway, roadbed, and rails of such portion of said railroad, together with the rolling siock used thereon by the corporation or association of indi- viduals operating the same. The depots, stations, shops, and buildings erected upon the space covered by the right of way, and all other property owned by such person, corporation, or association of persons, are assessed by the assessor of the county wherein they are situate. Within twenty days after the first .Monday of August, the board must apportion the total assess- ment of the franchise, roadway, roadbed, rails, and rolling stock of each railway to the counties, or cities and counties, in which such railway is located, in proportion to the number of miles of railway laid in such counties, and cities and counties. The board must also, within said time, transmit, by mail, to the county auditor of each county, or city and county, to which such apportionment shall have been made, a statement showing the length of the main track of such railway within the county, or city and county, with a description of the said track within the comity, or city and county, including the right of way. by metes and bounds, or other description sufficient for identification (but it shall not be necessary to slate the variable width of such right of way », the assessed value per mile of the same, as fixed by a pro rata distribution per mile of the assessed value "I' the whole franchise, roadway, roadbed, rails, and rolling slock of such railway within the slate, and the amount apportioned to the county, or city and county. The auditor must enter the statement on the assessment roll or book of the county, or city anil county, and where the county is divided into assessorial townships or districts, then on the roll or book of any township or district he may select, and enter the amount of the assess- ment apportioned to the county, or city and county, in the column of the assessment book- or roll, as aforesaid, which shows the total value of all property for taxation, either of the county, city and county, or such township or district. < >n the third § 3665 political code. 359 Monday in September, the board of supervisors must make, and cause to be entered in the proper record book, an order stating and declaring the length of main track of the railway assessed by the state hoard of equalization within the county, the assessed value per mile of such railway, the number of miles of track, and the assessed value of such railway lying in each city, town, township, school and road district, or lesser taxation district in the county, or city and county, through which such railway runs, as fixed by the slate board of equalization, which shall constitute the assessment value of said property for taxable purposes in such city. town, township, school, road, or other district: and the clerk of the board of supervisors must transmit a copy of each order or equalization to the city council, or trustees, or other legislative body of incorporated cities or towns, the trustees of each school district, and the authorized author- ities of other taxation districts through which such railwaj runs. All such railway property shall be taxable upon said assessment at the same rates, by the same officers, and for the same purposes, as the property of individuals within such city, town, township, school, road, and lesser taxation districts, respectively. If the owner of a railway assessed by the slate board of equalization is dissatisfied with the assessment made by the board, such owner may. at the meeting of the board. under the provisions of section three thousand six hundred and ninety-two of the Political Code, between the first Monday in August anil the firsl Monday in September, apply to the board to have the same corrected in any particular, and the board may correct and increase or lower the assessment made by it so as to equalize the same with tin' assessment of other property in the state. If the board shall increase or lower any assessment previously made by it. it must make a statement to the county auditor of the county affected by the change in the assessment of the change made, and the auditor must note such change upon the assessment book or roll of the comity, as directed by the board. Amended March 19, i'.tul: stats. 1907, p. 691. 60 Cal. L2, 27: 68 Cal. r,.V_' : 83 Cal. 403; 105 Cal. 591 : l-JI Cal. 502; 14'.i Cal. ST. 88. Record of assessment of railways. s 3666. The state board of equalization most prepare each year a hook, to be called "record of assessments of railways," 3(30 POLITICAL CODE. § 3G6G iii which must be entered each assessment made by the board, either in writing or by both writing and printing. Each assess- ment so entered must be signed by the chairman and secretary. The record of the apportionment of the assessments made by the board to the counties, and cities and counties, must be made in a separate book, to be called "record of apportionment of railway assessments." In such last described book must be entered the names of the railways assessed by the board, the names of the corporations to which, or the name of the person or association to whom was assessed each railway in the state, the number of miles thereof in each county, or city and ((unity, the total assess- ment of the franchise, roadway, roadbed, rails, and rolling stock, for purposes of state taxation, and the amount of the appor- tionment of such total assessment to each county, and city and county, for county, or city and county taxation. Before the third Monday in September of each year, the secretary of the state board of equalization must prepare and transmit to the controller of stale duplicates of the "record of assessment of railways." and "record of apportionment of railway assess- ments." each certified by the chairman and secretary of the hoard, and to be known, respectively, as "duplicate record of assessment of railways" and "duplicate record of apportionment of railway assessments." In the last-named duplicate all neces- sary appropriate columns must be added, in which the controller must enter the amount of taxes in installments due the state upon the whole assessment, by each corporation, person, or association, and the amount of taxes, in installments, due each county, or city and county, upon the assessment apportioned to each county, or city and county, by each corporation, person, or association. The two duplicates constitute the warrant for the controller to collect the state and county, and city and county taxes levied upon such property assessed by the board, and the amount of the apportionment of the assessment to each county, and city and county, respectively. Amended March 19, 1907; stats. 1907, p. 692. GO Cal. 34 ; 124 Cal. 502. County rate of taxation and notice to controller. § 3667. When the board of supervisors of each county, and city and county, to which the state board of equalization has apportioned the assessment of railways, shall have fixed the rate of county, or city and county taxation, the clerk of the hoard § 3G61 POLITICAL CODE. 361 of supervisors must, within three days after such rate has been fixed, transmit by mail, postage paid, to the controller, in such form as the controller shall direct, a statement of the rate of taxation levied by the board of supervisors for county, or city and county taxation. If the clerk fails to transmit such state- ment in the time herein provided for, he shall forfeit to the state one thousand dollars, to be recovered in an action brought by the attorney general, in the name of the controller. On or before the second Monday of October, the controller must com- pute and enter in separate money columns, in the "duplicate record of apportionment of railway assessments,"' the respective sums, in dollars and cents, rejecting fractions of a cent, (o be paid by the corporation, person, or association liable therefor, as the state tax upon the total amount of the assessment, and the county, or city and county tax upon the apportionment of the assessment to each county, and city and county, of the property assessed to such corporation, person, or association named in said duplicate record. Amended March 28, 1895 ; stats. 1895, p. 317. 124 Cal. 502. Publication by controller. § 3668. Within ten days after the second Monday in October, the controller must publish a notice for two weeks in one daily newspaper of general circulation at the state capital, and in two daily newspapers of general circulation published in the city of San Francisco, specifying : 1. That he has received from the state board of equalization the "duplicate record of assessments of railways," and the "duplicate record of apportionment of railway assessments." 2. That the taxes on all personal property and one half of the taxes on all real property are now payable, and will be delinquent on the last Monday in November next, at six o'clock p. M., and that unless paid to the state treasurer, at the capitol, prior thereto, five per cent will be added to the amount thereof, and unless so paid on or before the last Monday in April next, at six P. ir., an additional five per cent will be added to the amount thereof. That the remaining one half of the taxes on all real property will be due and payable at- any time after Hie first Monday in January next, and will be delinquent on the last Monday in April next, rit six o'clock P. M.. and that unless L(i . Certain taxes to be paid state treasurer. § 3669. Each corporation, person or association assessed by the state board of equalization must pay to the state treasurer, upon the order of the controller, as other moneys are required to be paid into the treasury, the state and county and city and county taxes each year levied upon the property so assessed to it or him by said board. Any corporation, person or associa- tion dissatisfied with the assessment made by the board, upon § 3GG9 POLITICAL CODE. 363 the payment of the taxes due upon the assessment complained of, and the percentage added, if to be added, on or before the first Monday in June, and the filing of notice with the controller of an intention to begin an action, may, not later than the first Monday in June, bring an action against the state treasurer for the recovery of the amount of taxes and percentage so paid to the treasurer, or any part thereof, and in the complaint may allege any fact tending to show the illegality of the tax, or of the assessment upon which the taxes are levied, in whole or in part. When any person, corporation or association has made payment of any of the taxes, penalties, percentages, or costs herein referred to, which have been subsequently adjudged illegal, and still remain in the hands of the state treasurer, such person, corporation or association shall be entitled to a refund thereof, although the payment of such taxes, penalties, percen- tages and costs may not have been under protest, nor a notice filed with the controller of an intention to begin an action to recover the same, as hereinbefore provided. And in case of fail- ure or refusal by the state treasurer to pay the same to such person, corporation or association upon its demand, an action may be brought against the state treasurer for the recovery of the amount of taxes and percentage so paid to the treasurer or any part thereof. Whenever under the provisions of this sec- tion an action is commenced against the state treasurer, a copy of the complaint and of the summons must be served upon the treasurer within ten days after the complaint has been tiled, and the treasurer has thirty days within which to demur or answer. At the time the treasurer demurs or answers, he may demand that the action be tried in the superior court of the county of Sacramento. The attorney general must defend the action. The provisions of the <\>d<' of Civil Procedure relating to pleadings, proofs, trials and appeals are applicable to the proceedings herein provided for. If the final judgment be against the treasurer, upon presentation of a certified copy of such judgment to the controller he shall draw his warrant upon the state treasurer, who must pay to the plaintiff the amount of the taxes so declared to have been illegally collected: and the cost of such action, audited by the board of examiners, must be paid out of any money in the general fund of the treasury, which is hereby appropriated, and the controller may demand and receive from the county, or city and county interested, the proportion of such costs, or may deduct such proportion from any money then or 364 POLITICAL CODE. § 3669 to become due to said county, or city and county. Such action must be begun on or before the first Monday in June of the year succeeding the passage of this act in the case of taxes heretofore paid, and on or before the first Monday in June of the year succeeding the year in which the taxes were levied, and a failure to begin such action is deemed a waiver of the rights of action. Amended March 22, 1905; stats. 1905, p. 823. 83 Cal. 396; 105 Cal. 583; 117 Cal. 440; 124 Cal. 502. Controller to sue for delinquent taxes. § 3670. Within sixty days after the first Monday in June of each year, the controller must begin an action in the proper court, in the name of the people of the State of California, to collect the delinquent taxes upon the property assessed by the state board of equalization ; such suit must be for the taxes due the state, and all the counties, and cities and counties, upon property assessed by the board of equalization, and appearing delinquent upon the "duplicate record of apportionment of rail- way assessments." The provisions of the Code of Civil Pro- cedure relating to pleadings, proofs, trials, and appeals are appli- cable to the proceedings herein provided for. In such action, should a writ of attachment be demanded and issued, no bond nor affidavit previous to the issuing of said attachment is required. If in such action the plaintiff recover judgment, there shall be included in the judgmenl as counsel fees, and in case of judgment of taxes, after suit brought but before judgment, the defendant must pay as counsel fees such sum as the court may determine to be reasonable and just. Payment of the taxes, or the amount of the judgment in the same, must be made to the state treasurer. In such actions the "duplicate record of assessments of railways" and the "duplicate record of apportion- ment of railway assessments," or a copy of them certified by the controller, showing unpaid taxes against any corporation, per- son, or association for property assessed by the state board of equalization, is prima facie evidence of the assessment, the property assessed, the delinquency, the amount of the taxes due and unpaid to the state, and counties, or cities and counties therein named, and that the corporation, person, or association is indebted to the people of the State of California in the amount of taxes, slate and county, and city and county, therein appear- S WTO POLITICAL CODE. 365 ing unpaid, and that all the forms of law in relation to the assessment and levy of such taxes have been complied with. Amended March 28, 1S95 ; stats. 1895. p. 318. 68 Cal. 552; 69 Cal. 648: 83 Cal. 396; 105 Oal. 583; 10S Cal. 4S; 124 Cal. 177; 137 Cal. 661. Basis of taxation for counties. S 3671. The assessment made by the county assessor, and that of the state board of equalization, as apportioned by the boards of supervisors to each city, town, township, school, road, or other district in their respective counties, or cities and counties. shall be the only basis of taxation for the county, or any sub- division thereof, except in incorporated cities and towns, and may also be taken as such basis in incorporated cities and towns when the proper authorities may so elect. All taxes on rail- road property imposed upon townships, road, school or other local districts, unless otherwise provided by law, shall be col- lected by the county tax collector in the same manner and at the same time as county taxes. Amended March 13, 1909; stats. 1909. p. 359; in effect in sixty days. 68 Cal. 552; 91 Cal. 434; 137 Cal. 661. CHAPTER IV. EQUALIZATION OF TAXES. Article II. State Board of Equalization. Sec. 3692. Powers and duties of board. Powers and duties of board. S 3692. The powers and duties of the state board of equaliza- tion are as follows : 1. To prescribe rules for its own government and for the transaction of its business. 2. To prescribe rules and regulations, not in conflict with the constitution and laws of the state, to govern supeiwisors when equalizing, and assessors when assessing. ."'». To make out, prepare, and enforce the use of all forms in relation to the assessment of property, collection of taxes, and revenue of this state. 366 POLITICAL CODE. §3692 4. To hold regular meetings at the state capital on the second Monday in each month, and such special meetings at any place within the state as the chairman may direct. At such special meetings the board may transact any and all business and per- form all duties imposed upon it by law and give and enter any and all orders and decrees within its jurisdiction; provided. that the final action of the board in increasing or lowering of a county assessment roll, or the final act in making the assess- ment, of a railroad, shall be performed only at the state capital. 5. To annually assess the franchise, roadway, roadbed, rails, and rolling stock of all railroads operated in more than one county in (his state, at their actual value, on the first Monday in March, at twelve o'clock m., and to apportion such assess- ment to the counties, and cities and counties in which such railroads are located, in proportion to the number of miles of railway laid in such counties, and cities and counties, in the manner provided for in section three thousand six hundred and sixty-four of said code. 6. To equalize the assessment of each mortgage, deed of trust, contract or other obligation by which a debt is secured. and which affects property situate in two or more counties, and to apportion the assessment thereof to each of such counties. 7. To transmit to the assessor of each county, or city and county, its apportionment of the assessments made by said board upon the franchises, roadways, roadbeds, rails, and roll- ing stock of railroads, and also its apportionment of the assess- ments made by such board upon mortgages, deeds of trust, con- tracts, and other obligations by which debts are secured, in the manner provided for in section three thousand six hundred and sixty-four of said code. S. To meet at the state capital on the first Monday in August, and remain in session from day to day, Sundays excepted, until the second Monday in September. 9. At such meeting to equalize the valuation of the taxable property of the several counties in this state for the purposes of taxation; and to the end, under such rules of notice to the clerk of the board of supervisors of the county affected thereby, as it may prescribe, to increase or lower the entire assessment roll so as to equalize the assessment of the property contained in said roll and make the assessment conform to the true value in money of the property contained in said roll and make the § 3692 POLITICAL CODE. 367 assessment conform to the true value in money of the property assessed, and to fix the rate of state taxation, and to do the things provided in section three thousand six hundred and ninety- throe of said code; provided, that no hoard of equalization shall raise any mortgage, deed of trust, contract, or other obligation by which a debt is secured, money, or solvent credits, above its face value. in. Whenever deemed necessary, to visit as a board, or by ili.' individual members thereof, or to send ils secretary or duly appointed representative to. the several counties and cities for the purpose of inspecting property and learning the value thereof, and of collecting information to enable the hoard to equalize assessments and levy the taxes as provided by law. 11. To call before the board, or any member thereof, on such visit, any officers of the county, and to require them to pro- duce any public records in their custody, and to give testimony on such subjects deemed useful to the hoard in its inves- tigations. 12. To issue subpoenas for the attendance of witnesses or the production of books before the board, or any member thereof; which subpoenas must be signed by a member of the board, and may be served by any person. L3. To appoint a secretary, prescribe and enforce his duties. The secretary shall hold his office during the pleasure of the hoard. 14. To report to the governor, biennially, a statement showing: First — The acreage of each county in the slate that is assessed. Second — The amount assessed per acre. Third — The aggregate value of all town and city lots. Fourth— The aggregate value of all real estate in the state. Fifth — The kinds of personal property in each county, and the value of each kind. Sixth — The aggregate value of all personal property in the state. Seventh — Any information relative to the assessment of prop- erty and the collection of revenue. Eighth — Such further suggestions as it shall deem proper. 15. To keep a record of all its proceedings. 16. To require any person having knowledge of the business of any railroad company, the assessment of which is to be made by the board, or having the custody of the books, accounts, and 368 POLITICAL CODE. § 3< .1 >2 papers of such company, to attend before the board, or any member thereof, and bring with him for inspection any books. accounts, or papers, of such company in his possession or under his control, and to testify under oath touching any matter rela- ting to the organization or business of such company. 17. To examine the books, accounts, and papers of all rail- road companies required by law to report to the board, and to employ an expert accountant or accountants- to assist in the examination of the books, accounts, and papers of any company when in the judgment of said board the exigencies of the case may so require. 18. Any officer, employee, or agent of a railroad company required to report to the board, or any county officer, or witness, duly subpoenaed, who shall refuse or neglect to attend before the board, or any member thereof, or shall refuse to bring with him and submit for inspection any books, accounts, or papers in his possession, custody, or control, or shall refuse to answer any question put to him by any member of the board, touching the matters under investigation by the board, shall be deemed guilty of contempt, and may be punished by a court of com- petent jurisdiction, by imprisonment in the county jail, not to exceed five days, or by fine not to exceed five hundred dollars. or by both such fine and imprisonment. Amended March 13, 1000; stats. 1909, p. 360; in effed immediately. 46 Cal. 505; 60 Cal. 27: 137 Cal. 522. § 4004 POLITICAL CODE. 309 PART IV. OF THE GOVERNMENT OF COUNTIES, CITIES AND TOWNS. TITLE II. The Government of Counties. [Old title II repealed and a new title II substituted by an act approved March 18, 1907, "relating to the establishment of a uniform system of county and township governments." Stats. 1907, p. 354.] CHAPTER I. COUNTIES AS BODIES CORPORATE. Sec. 4001. Restriction on loaning credit. Restriction on loaning credit. § 4004. No county shall, in any manner, give or loan its credit to or in aid of any person or corporation. An indebted- ness or liability incurred contrary to tin's provision shall be void. Enacted March 18, 1907; stats. 1907, p. 355. CHAPTER IV. LEGISLATIVE DEPARTMENT Article IV. General Permanent Powers. Sec. 4041. General powers of the hoard. General powers of the board. S 4041. The hoards of supervisors, in their respective counties. shall have jurisdiction and power, under such limitations and restrictions as are prescribed by law. 370 POLITICAL CODE. § 4041 I. To lay out, maintain, control, construct, repair, and man- age public roads, turnpikes, ferries, wharves, chutes, and other shipping facilities and bridges within the county, unless other- wise provided by law, and to grant franchises and licenses to collect lolls thereon; provided, where the cost of the construction of any bridge, wharf, chute, or other shipping facilities that may be built under the provisions of this subdivision exceeds the sum of five hundred dollars they must cause to be prepared and must adopt plans and specifications, strain sheets, and working details, and must advertise for bids for the construction of such bridge. wharves, chutes, or other shipping facilities, unless otherwise provided by law, in accordance with the plans and specifications so adopted. All bidders shall be afforded opportunity to examine such plans and specifications, and said board shall award the contract to the lowest responsible bidder, and the plans and specifications so adopted shall be attached to and become a part of the contracl ; and the person or corporation to whom the con- tract is awarded shall he required to execute a bond, to be approved by said hoard, for the faithful performance of such contract; provided, that after the submission of the bids as herein provided, the board of supervisors being advised by the county surveyor that the work can be done for a sum less than the lowest responsible hid. it shall then be their privilege to reject all bids and to order the work done or structure built by day's work, under the supervision and control of the said sur- veyor ; provided further, that the surveyor in such cases shall be held personally responsible, under his official bond, to con- struct said bridge or structure, according to his plans and specifi- cations, at a cost not to exceed the amount of the lowest respon- sible bid received; provided, that the road commissioners or road overseers in their respective districts shall employ all labor required and direct the conduct of work of any kind upon any and all public roads; provided further, that in cases of great emergency, by the unanimous consent of the whole board, they may proceed at once to replace or repair any and all bridges and structures without notice. :;: ^c % $ s|e $ ^ % ^ ^ 22. To license, in the exercise of their police powers, and for the purpose of regulation, as herein provided, and not other- wise, all and every kind of business not prohibited by law, and transacted and carried on within the limits of their respective jurisdictions, and all shows, exhibitions, and lawful games car- § 4041 POLITICAL CODE. 371 ried on therein, to fix the rates of license tax upon the same, and to provide for the collection of the same by suit or otherwise ; provided, that every honorably discharged soldier, sailor, or marine of the United States, who is unable to obtain a liveli- hood by manual labor, shall have the right to hawk, peddle and vend any goods, wares or merchandise, except spirituous, mall, vinous or other intoxicating liquor, without payment of any license, tax or fee whatsoever, whether municipal, county or state, and the board of supervisors or legislative body shall issue to such soldier, sailor or marine, without cost, a license therefor ; provided, however, no license can be collected, or any penalty for l lie non-payment thereof enforced against any commercial traveler whose business is limited to the goods, wares, and mer- chandise sold or dealt in in this state at wholesale. ******* * * * * 32. To grant licenses and franchises for constructing, keeping and taking tolls on roads, bridges, ferries, wharves, chutes, booms, and piers, and to grant franchises along and over the public roads and highways for all lawful purposes, upon such terms and conditions and restrictions as in their judgment may be necessary and proper, and in such manner as to present the least possible obstruction and inconvenience to the traveling public. 33. To grant, on such terms, conditions, and restrictions as in their judgment may be necessary and proper, licenses and fran- chises for taking tolls on public roads or highways, whenever in their judgment the expense necessary to operate or maintain such public roads or highways as free public highways is too great to justify the county in so operating or maintaining them. It shall always be a condition attached to the granting of such licenses and franchises, that such roads or highways shall be kept in reasonable repair by the person or persons to whom such licenses or franchises may be granted. Amended March 25, 1909; stats. 1909, p. 750; in effect in sixty days. Ed. Note. — §4041. Also amended March 3, 1909; stats. 1909, p. 126 ; the later amendment is here given. There is no difference between subdivisions 4, 22, 32 and 33 occurring in the two amend- ments. 372 POLITICAL CODE. § 4047 Article V. Additional Powers and Duties. Sec. 4 04 7. Franchises for construction of paths and roads for bicycles and other horseless vehicles. Franchises for construction of paths and roads for bicycles and other horseless vehicles. S 4047. The board of supervisors may under such regulations, restrictions and limitations as it may provide subject to exist- ing laws, grant franchises for the construction of paths and roads, either on the surface, elevated or depressed, on, over, across, or under the streets and public highways of their respec- tive counties for the use of bicycles, tricycles, motorcycles, and other like horseless vehicles propelled by the rider, and for a term not exceeding fifty years. Enacted March IS, 1907; stats. 1907, p. 373. CHAITKK X. SALARIES AND FEES OF OFFICE. Article LX. Fees of Officers. Sec. 4 300. Fees of county, township, and other officers. 4 300d. County clerk's fees. Fees of county, township, and other officers. S 4300. The following county, township, and other officers shall charge and collect the following fees: Enacted March 18, 1907; stats. 1907, p. 548. 1 Cal. App. 245. County clerk's fees. S 4300«. On the commencement of any action or proceeding in the superior court, except probate proceedings, or on an appeal thereto, to be paid by the party commencing such action or proceeding, or taking such appeal, five dollars. On the filing of a petition for letters of administration, testa- mentary, or guardianship, five dollars, to be paid by the peti- tioner. § 4300a POLITICAL CODE. 373 On filing the petition to contest any will or codicil, three dol- lars. On the appearance of any defendant, or any number of defend- ants answering jointly, to be paid upon filing the first paper in the action by him or them, two dollars. On placing any action, excepting a probate proceeding or default case, on the calendar for trial or hearing, to be paid by the party at whose request such action or proceeding is so placed, two dollars. For every additional defendant appearing separately, one dollar. The foregoing fees shall be in full for all services rendered by such clerk in the cause, to and including the making up of the judgment roll. On the filing of any notice of motion to move for a new trial of any civil action or proceeding, the party filing same shall pay to the clerk, in full for all services to be rendered in con- nection with said motion, except as hereinafter in this section provided, two dollars. For issuing an execution or order of sale in any action, one dollar. In all proceedings begun or acts performed prior to this sec- tion becoming a law, such fees and charges as were provided by law at the time such proceedings were begun or acts performed. The clerk shall also charge and collect the following fees and compensation not above provided for : For any copy of any record, proceeding, or paper on file in the office of the clerk relating to any civil action pending in said court, when such copy is made by him, per folio, ten cents. For each certificate of the clerk, under the seal of the court, twenty-five cents. For filing each claim in probate or insolvency proceedings, fifteen cents. No fees shall be allowed or charged by the clerk for services rendered in any criminal case. For services rendered by the clerk, not in connection with civil actions or proceedings in court, he shall charge and col- lect, for the benefit of the county, the following fees : For issuing marriage license, one half to be paid to the county recorder, two dollars. For filing and indexing articles of incorporation, one dollar. 374 political code. § 4300a For filing and indexing certificates of co-partnership, one dollar. For filing and indexing all papers to be kept by him, other than papers filed in actions or proceedings in court, and official bonds and certificates of appointment, each, twenty-five cents. For issuing any license required by law, other than marriage licenses, one dollar. For examining and certifying to a copy of any paper, record or proceedings prepared by another, and presented for his certifi- cate, fifty cents, and one cent per folio for comparing the said copy with the original. For making satisfaction of or credit on judgment, twenty-five cents. For receiving and filing remittitur from supreme court, fifty cents. For administering each oath, without certificate, except in a pending action or proceeding, ten cents. For taking any affidavit, except in criminal cases, twenty-five cents. For taking and approving each undertaking, and the justifica- tion thereof, except in criminal cases, fifty cents. For searching records or files, for each year, fifty cents. For taking acknowledgment of any deed or other instrument, including the certificate, fifty cents. For filing notices of appeal and appeal bonds, each, twenty- five cents. Enacted March 18, 1907 ; stats. 1907, p. 548. CHAPTER XII. MISCELLANEOUS PROVISIONS. Sec. 4323. When majority of supervisors interested in applica- tion, procedure. When majority of supervisors interested in application, pro- cedure. § 4323. Whenever an application is made to the board for an order, franchise, or license relating to any toll road, bridge, ferry, wharf, chute, pier, or other subject over which the board has jurisdiction, in which a majority of the board are inter- ested, the application, by order of the board, must be trans- § 4323 POLITICAL CODE. 375 ferred to the superior court of the county. The clerk of the board must thereupon certify the application, and all orders and papers relating thereto, to said superior court, and there- after the said superior court shall have full jurisdiction 1<> hear and determine the application. Enacted March 18, 3007; stats. 1907, i>. 558. TITLE III. The Government of Cities. CHAPTER III. LEGISLATIVE POWERS. Sec. 4410. Common council may grant authority to gas and water companies. 4411. Reservations by cities. 4412. Contract for gas and water. 4413. Restrictions and conditions to be imposed. Common council may grant authority to gas and water com- panies. § 4410. The common council, by ordinance, approved by the mayor, may grant to any gas or water company the privilege of laying down pipes in the streets and alleys of such city for supplying gas and water for the streets and buildings thereon, for a term not exceeding twenty-five years. Enacted March 12, 1S72. 2 Cal. App. 722. Reservation by cities. § 4411. In exercising the authority mentioned in preceding section, the common council must reserve the right to grant similar privileges to other companies, and require the laying down of the pipes to be under the reasonable direction of the city authorities, and to be so laid as to do no injury to the proper use of the paving, planking, or macadamizing of the streets and alleys, nor to private property situate thereon. Enacted March 12, 1S72. 2 Cal. App. 722. 376 POLITICAL CODE. § 4412 Contract for gas and water. S 4412. The common council may contract with gas and water companies for supplying the streets and public buildings with all gas and water necessary for their proper use; the rates to be paid therefor must not be fixed for a term exceeding five years, and the city authorities must reserve the right to abrogate such contract whenever gas or water is offered to be supplied at two thirds of such fixed contract price. Enacted March 12, 1X72. Restrictions and conditions to be imposed. S 4413. In granting authority to lay down pipes, and in con- tracting for gas and water, the common council must impose such restrictions and conditions, and provide for such locations and construction of gas and water works and pipes as to work the least possible public or private inconvenience, and provide for enforcing such restrictions and conditions. Enacted March 12. 1872. 2 Cal. App. 722. § 10 CODE OF CIVIL PROCEDURE. 377 CODE OF CIVIL PROCEDURE. PORTIONS RELATING TO PRIVATE CORPORATIONS. Preliminary Provisions. Sec. 10. Holidays. 1 1 . Same. 17. Certain terms used in this code defined. Holidays. § 10. Holidays, within the meaning of this code, are every Sunday, the first day of January, the twenty-second day of February, the thirtieth day of May, the fourth day of July, the ninth day of September, the first Monday in September, the twelfth day of October, to be known as "Discovery Day,'* the twenty-fifth day of December, every day on which an elec- tion is held throughout the state, and every day appointed by the president of the United States or by the governor of this state for a public fast, thanksgiving or holiday. If the first day of January, the twenty-second day of February, the thirtieth day of May, the fourth day of July, the ninth day of September, the twelfth day of October or the twenty-fifth day of December fall upon a Sunday, the Monday following is a holiday. Every Saturday from twelve o'clock noon until twelve o'clock mid- night is a holiday .is regards the transaction of business in the public offices of this state, and also in political divisions thereof where laws, ordinances or charters provide that public offices may be closed on holidays; provided, this shall not be construed to prevent or invalidate the issuance, filing, service, execution or recording of any legal process or written instrument whatever ou such Saturday afternoons. Amended February 19, 1909; stats. 1909, p. 22; in effect in sixty days. 152 Cal. 531; 153 Cal. 599; VIII Cal. App. Dec. 662, 663. Similar provisions: Civ. C. §7; Pol. C. § 10. 378 CODE OF CIVIL PROCEDURE. § 11 Same. §11. If the first day of January, the twenty-second day of February, the thirtieth day of May, the fourth day of July, the ninth day of September, the twelfth day of October or the twenty-fifth day of December fall upon a Sunday, the Monday following is a holiday. Amended February l!>. L909 ; sl;i(s. L900, p. 22; in effecl in sixty days. Certain terms used in this code defined. S 17. Words used in Ibis code in the present tense include the future as well as Ihc present : words used in the masculine gender include the feminine and neuter; (he singular number includes the plural, and the plural the singular; the word "per- son" includes a corporation as well as a natural person; the word "county" includes "city and county;" writing includes printing and typewriting ; oath includes affirmation or declara- tion ; and every mode of oral statement, under oath or affirma- tion, is embraced by the term "testify," and every written one in the term "depose" : signature or subscription includes mark, when the person can not write, his name being written near it by a person who writes his own name as a witness; provided, that when a signature is by mark it must, in order that the same may be acknowledged or may serve as the signature to any sworn statement, lie witnessed by two persons who must subscribe their own names as witness thereto. The following words have in this code the signification at- tached to them in this section, unless otherwise apparent from the context : 1. The word "property" includes both real and personal prop- erty ; -. The words "real property" are coextensive with lands, tenements, and hereditaments ; 3. The words "personal property" include money, goods, chat- tels, things in action, and evidences of debt; 4. The word "month" means a calendar month, unless other- wise expressed ; 5. The word "will" includes codicil ; 6. The word "writ" signifies an order or precept in writing. issued in the name of the people, or of a court or judicial officer; and the word "process" a writ or summons issued in the course of judicial proceedings ; § IT CODE OF CIVIL PROCEDURK. 379 7. The word "state" when applied to the different parts of the United States, includes the District of Columbia and the terri- tories ; and the words "United States" may include the district and territories ; 8. The' word "section" whenever hereinafter employed, refers to a section of this code, unless some other code or statute is expressly mentioned ; 9. The word "affinity" when applied to the marriage relation, signifies the connection existing in consequence of marriage, between each of the married persons and the blood relatives of l lie other. Amended March 13, 1903; stats. 1903, p. 134. 152 Oal. 25.",. Similar provisions: Civ. C. § 14; Pol. ( '. § 17 ; Pen. C. § 7. PART I. OF COURTS OF JUSTICE. TITLE I. Organization and Jurisdiction. CHAPTER VII. GENERAL PROVISIONS RESPECTING COURTS OF JUSTICE. Article III. Judicial Days. Sec. 133. Days on which courts, etc., may be held. 134. Nonjudicial days. 135. Appointments on nonjudicial days. Days on which courts, etc., may be held. § 133. Courts of justice may he held and judicial business transacted on any day, except as provided in the next section. Amended April 1, 1S80; amen, Its. 1880, p. 37. 57 Cal. 406; 63 Cal. 421 ; 65 Cal. (121 ; !>7 Cal. 392 : 112 Cal. 610; 152 Cal. 572; 153 Cal. 598. 380 CODE OF CIVIL PBOCEDURE. § 134 Nonjudicial days. § 134. No court, other than the supreme court, must be open for the transaction of judicial business on any of the holidays mentioned in section ten, except for the following purposes : 1. To give, upon their request, instructions to jury when deliberating on their verdict ; 2. To receive a verdict or discharge a jury; .'!. For the exncisc of the powers of a magistrate in a criminal action, oi in a proceeding of a criminal nature. Injunctions and writs of prohibition may be issued and served on any day. Amended March 19, 11)07: stats. 1907, p. 681. 57 Cal. 406; 63 Cal. 421; r>r, Cal. 621; 112 Cal. 610; 138 Cal. 210; 147 Cal. 777. Courts always open: See Constitution of California, art. VI. §5. Note. — § 134. The amendment recast the section, substituting the words "on any of the holidays mentioned in section 10," instead of attempting to mention the holidays, which are always changing. The amendments are designed to conform to the section in the constitution. (See Reclamation District vs Ham- ilton, 112 Cal. (>10.) Appointments on nonjudicial days. § 135. If any day mentioned in section ten be a day appointed for the holding or sitting of any court, other than the supreme court, it is deemed adjourned to the next succeeding judicial day. Amended March 19. 1907 ; stats. 1907, p. 682. 152 Cal. 531. 572; 153 Cal. 598, 599, 601, 603; VIII Cal. App. Dec. 663. Note. — § 135. The amendment changes the phraseology of the section to conform with section 10 and with the amendments made to section 134. Ed. Note. — § 135. This section was again amended at the extra session of 1907, on November 23d (stats. 1909, p. 9, which volume includes statutes of extra sessions of 1907), but the amendment was held by the supreme court to be unconstitutional and void. (Diepenbrock vs. Superior Court of Sacramento, 153 Cal. 597.) See, also, VIII Cal. App. Dec. 838. Restriction of judicial business on special holidays. [Uncon- stitutional.] § 135. On all special holidays the courts of this .state shall be open for the transaction of any and all judicial business, except the trial of an action or the rendition of a judgment § L35 CODE OF CIVIL PROCEDURE. . 381 based upon a contract, expressed or implied, for the direct pay- ment of money. Provided, if any day mentioned in section 10 of this code other than a special holiday happen to be the day appointed for the holding or sitting of a court, or to which it is adjourned, it shall be deemed appointed for or adjourned to the next day. Ed. Note. — § 135. As amended November 23, WOt ; stats. 1907, p. 9 (which volume includes statutes of extra sessions of L907). ' nconstitutional. See editorial note to section 135, ante, as amended at the regular session of 1907. PART II. OF CIVIL ACTIONS. TITLE II. Of the Time of Commencing Civil Actions. chapter in. THE TIME OF COMMENCING ACTIONS OTHER THAN FOR THE RECOVERY OF REAL PROPERTY. Sec. 341. Within six months. 348. No limitations where m \ deposited in hank. Within six months. § 341. Within six months : An action against an officer, or officer de facto: 1. To recover any goods, wares, merchandise, or other prop- erty, seized by any such officer in his official capacity as tax collector, or to recover the price or value of any goods, wares, merchandise, or other personal property so seized, or for dam- ages for the seizure, detention, sale of, or injury to any goods, wati's, merchandise, or other personal properly seized, or for damages done to any person or property iii making any such seizure ; 3S2 CODE OF CIVIL PROCEDURE. §311 2. To recover stock sold for a delinquent assessment, as pro- vided in section 347 of the Civil Code. Amended March 24, 1874; amendts. 1873-4. p. 2!>2. 117 Cal. 504 ; 130 Cal. 498 ; 133 Cal. 06. Stock sold for assessment : Civ. C. § 347. No limitations where money deposited in bank. § 348. To net ions brought to recover money or other prop- erty deposited with any bank, banker, trust company, or savings and loan society, there is no limitation. Enacted March 24. 1874 ; amendts. 1873-4, p. 2'.>.",. 04 Cal. 122; 65 Cal. 72; 7:; Cal. 611 : 125 Cal. 412; 12i Cal. 074; 153 Cal. 243; 1 Cal. App. 720. CHAPTER IV. GENERAL PROVISIONS AS TO THE TIME OF COMMENCING ACTIONS. Sec. 350. This title not applicable to actions against directors, etc. Limitations in such eases prescribed. This title not applicable to actions against directors, etc. — Lim- itations in such cases prescribed. S 359. This title does not affect actions against directors or stockholders of a corporation, to recover a penalty or forfeiture imposed, or to enforce a liability created by law; but such actions must he brought within three years after the discovery by the aggrieved party of the facts upon which the penalty or forfeiture attached, or the liability was created. Enacted March 11. 1872. 59 Cal. 546; 74 Cal. 171; 82 Cal. 653; 97 Cal. '.'. ; 99 Cal. 613; 103 Cal. 590; 108 Cal. 5; 117 Cal. 103; 124 Cal. 94; 125 Cal. 8, 409, 454, 488; 127 Cal. 107, 259, 527, 071; 142 Cal. 384; 143 Cal. 224; 145 Cal. 703; 147 Cal. 558; Cal. App. 472; 7 Cal. App. 010, 011. Personal liability of directors: See Civ. C. §309; Constitu- tion of California, art. XII. § 3. § 395 code of civil procedure. 3S3 TITLE IV. Of the Place of Trial of Civil Actions. Sec. 395. Other actions according to the residence of the parties. Other actions according to the residence of the parties. S 395. In all other cases, the action must be tried in the county in which the defendants, or some of them, reside at the commencement of the action. If none of the defendants reside in the state, or, if residing in the state, and the county in which they reside is unknown to the plaintiff, the same may be tried in any county which the plaintiff may designate in his com- plaint, and if the defendant is about to depart from the state, such action may be tried in any county where either of the parties reside, or service is had, subject, however, to the power of the court to change the place of trial, as provided in this code. If any person is improperly joined as a defendant, or has been made a defendant solely for the purpose of having the action tried in the comity where he resides, his residence must not be considered in determining which is the proper county for the trial of the action. Amended March 19, 1907: stats. 1907, p. 700. 61 Cal. 78; 62 Cal. 319; 65 Cal. 3 , .t4. 602; 69 Cal. 154; 71 Cal. 489; 77 Cal. 132, 449: 80 Cal. 563; 83 Cal. 497; 88 Cal. 575; 92 Cal. 200; 97 Cal. 139, 643; 100 Cal. 15: 101 Cal. 400: 102 Cal. 48, 336; 105 Cal. 141; 100 Cal. 58; 111 Cal. 376: 113 Cal. 609; 11.1 Cal. 250; 119 Cal. 79; 133 Cal. 60, 507; 131 Cal. 11.1. 574: 130 Cal. 130; L38 Cal. 580: 139 Cal. 711; 140 Cal. 472; 144 Cal. 774; 148 Cal. 59, 61 : 110 Cal. 408; 151 Cal. 159; 153 Cal. 420; 3 Cal. App. 603; 4 Cal. App. 370; 6 Cal. App. 433: 7 Cal. App. 189. Note. — S :!'.».">. The last sentence of this section has been added, and the amendment thereby made is intended to reach cases where a person has been made a defendant solely for the purpose of having an action tried in the county wherein he resides, thus taking - away from the defendant properly joined and from the real defendants the rights of change of venue intended td be vouchsafed to them in other sections of the code. 384 CODE OK CIVIL PROCEDURE. S411 TITLE V. Of the Manner of Commencing Civil Actions. Sec. 411. Summons, how served. 412. Publication of summons, when defendant is absent from the state, concealed, or a foreign corporation having no agent, etc. Summons, how served. § 411. The summons must be served by delivering a copy thereof, as follows : 1. If the suit is against a corporation formed under the laws of this state, to the president or other head of the corporation, secretary, cashier, or managing agent thereof: 2. If the suit is against a foreign corporation, or a nonresi- dent joint stock company, or association, doing business and having a managing or business agent, cashier, or secretary within this state, to such agent, cashier, or secretary: 3. If against a minor under the age of fourteen years, resid- ing within this state, to such minor, personally, and also to his father, mother, or guardian; or, if there be none within this state, then to any person having the care or control of such minor, or with whom he resides, or in whose service he is employed ; 4. If againsl a person residing within this state, who has been judicially declared to be of unsound mind, or incapable of con- ducting his own affairs, and for whom a guardian has been appointed, to such person and also to his guardian; .">. If against a county, city or town, to the president of the hoard of supervisors, president of the council or trustees, or other head of the legislative department thereof; 6. In all other cases, to the defendant personally. Amended March 24, 1S74 : amendts. 1873-4, p. 298. 59 Cal. 473. 493; 64 Cal. 597; 66 Cal. .''.I.".: 79 Cal. 104: 87 Cal. 531; !I7 Cal. 3!>7: 120 Cal. 430; 127 Cal. 68; 128 Cal. 332; 134 Cal: 633; 139 Cal. 177. 178; 143 Cal. 21; 2 Cal.-App. 585, 586, 5S9 : 3 Cal. App. 33. Publication of summons, when defendant is absent from the state, concealed, or a foreign corporation having no agent, etc. S 412. Where Hie person on whom service iv to In- made resides out of the state; or has departed from the stale; or can S 412 CODE OF CIVIL PROCEDURE. 385 not, after due diligence, be found within the state; or conceals himself to avoid the service of summons: or is a foreign corpora- tion having no managing or business agent, cashier or secretary within the state, and the fact appears by affidavit to the satis- faction of the court, or a judge thereof; and it also appears by such affidavit, or by the verified complaint on tile, that a cause of action exists against the defendant in respect to whom the service is to be made, or that he is a necessary or proper party to the action : or when it appears by such affidavit, or by the complaint on file herein, that it is an action which relates to or the subjed of which is real or personal property in this state. in which such person defendant or foreign corporation defendant has or claims a lien or interest, actual or contingent, therein, or in which the relief demanded consists wholly or in part in exclud- ing such person or foreign corporation from any interest therein, such court or judge may make an order that the service be made by the publication of the summons; provided, that where service is sought to be made upon a person who can not, after due dili- gence, be found within the state it must first appear to the court by the affidavit aforesaid that there has not been filed, on behalf of such person, in the county where such action is pending, the certificate of residence provided for by section one thousand one hundred and sixty-three of the Civil Code in the county in which the action is broughl : or that said certificate was so filed and that the defendant can not be found at the place named in said certificate, which latter fact must be made to appear by the cer- tificate of the sheriff of the county wherein said defendant claims residence in and by said certificate of residence, and which cer- tificate of said sheriff must show that service of said summons was attempted upon said defendant at the place named in said certificate of residence but that said defendant was not to be found thereat. Amended .Match 18, 1905; stats. 1905, p. 141. 64 Cal. 597; <;7 Cal. I'd: 68 Cal. 87; 70 Cal. 433 : 72 Cal. 68; 7:; Cal. 600; 76 Cal. mi. r.47 : si; Cal. 583; 92 Cal. 346; !>!> Cal. 325; 101 Cal. 573; 109 Cal. 2.14: 115 Cal. 277: 119 Cal. :;<>1 ; 137 Cal. 426, 655; 138 Cal. 440; 1 II Cal. 415, 787; 149 Cal. 4N4 : 150 Cal. .'110. 322: 151 Cal. 54. 514; XXXVI Cal. Dec. 248; XXXVII Cal. Dec. 313. I I -CL . 386 CODE OF CIVIL PROCEDURE. § 437a TITLE VI. Of the Pleadings in Civil Actions. CHAPTER IV. THE ANSWER. Sec. 437a. Actions to recover insurance, what defendant claiming exemption must set up. Actions to recover insurance, what defendant claiming exemp- tion must set up. § 437a. In an action to recover upon a contract of insurance wherein the defendant claims exemption from liability upon the ground that, although the proximate cause of the loss was a peril insured against, the loss was remotely caused by or would not have occurred but for a peril excepted in the contract of insur- ance, the defendant shall in his answer set forth and specify the peril which was the proximate cause of the loss, in what manner the peril excepted contributed to the loss or itself caused the peril insured against, aud if he claim that the peril excepted caused the peril insured against, he shall in his answer set forth and specify upon what premises or at what place the peril excepted caused the peril insured against. Enacted March 21, 1907 ; stats. 1907, p. 336. CHAPTER VI. VERIFICATION OF PLEADINGS. Sec. 4 4 6. Verification of pleadings. Verification of pleadings. § 446. Every pleading must be subscribed by the party or his attorney; and when the complaint is verified, or when the state, or any officer of the state, in his official capacity, is plaintiff, the answer must be verified, unless an admission of the truth of the complaint might subject the party to a criminal prosecution, or, unless an officer of the state, in his official capacity, is defendant In all cases of a verification of a pleading, the affidavit of the party must state that the same is true of his own knowledge, except as to the matters which arc herein stated on his information or belief, and as to those matters that he believes § 446 CODE OF CIVIL PROCEDURE. 387 it to be true; and where a pleading is verified, it must be by the affidavit of a party, unless the parties are absent from the county where the attorney has his office, or from some cause unable to verify it, or the facts are within the knowledge of his attorney or other person verifying the same. When the plead- ing is verified by the attorney, or any other person except one of the parties, he must set forth in the affidavit the reasons why it is not made by one of the parties. When a corporation is a party, the verification may be made by any officer thereof. When the state, or any county thereof, or any officer of the state, or of any county thereof, in his official capacity is plaintiff, the complaint need not be verified. Amended March 20, 1907 ; stats. 1907, p. 707. 52 Cal. 182; 58 Cal. 40; 60 Cal. 375; 05 Cal. 337; 68 Cal. 410 ; 72 Cal. 88 ; 78 Cal. 121 ; SO Cal. 60 ; 83 Cal. 562 ; 9S Cal. 33 ; 106 Cal. 579 ; 113 Cal. 171 ; 114 Cal. 475 ; 128 Cal. 328, 584 ; 13S Cal. 158, 447 ; 147 Cal. 494. Note. — § 44 6. The words "where the attorney has his office" have been substituted for the words "where the attorney resides," and the last sentence has been added. TITLE VII. Of the Provisional Remedies in Civil Actions. CHAPTER III. INJUNCTION. Sec. 531. Injunction to suspend business of a corporation, how granted. Injunction to suspend business of a corporation, how granted. § 531. An injunction to suspend the general and ordinary business of a corporation can not be granted without due notice of the application therefor to the proper officers or managing- agent of the corporation, except when the people of this si ale are a party to the proceeding. Amended March 16, 1907: stats. 1907, p. 342. 65 Cal. 189; 06 Cal. 163, 314; 110 Cal. 145; 125 Cal. 299. Note. — § 531. The words "except by the court or a judge thereof ; nor can it be granted" are omitted, as entirely super- fluous. 388 CODE OF CIVIL PROCEDURE. § 541 CHAPTER IV. ATTACHMENT. Sec. 541. Shares of stock and debts due defendant, how attached and disposed of. 542. How real and personal property shall be attached. Shares of stock and debts due defendant, how attached and dis- posed of. § 541. The rights or shares which the defendant may have in the stock of any corporation or company, together, with the interest and profit thereon, and all debts due such defendant, and all other property in this state of such defendant not exempt from execution, may be attached, and if judgment be recovered, be sold to satisfy the judgment and execution. Enacted March 11, 1872. 57 Cal. 255: 144 Cal. 67. Slocks or shares, how attached: § 542, subd. 4. . Debts and credits, etc., how attached: §542, subd. 5. Exemption in certain cases: Code Civ. Proc. §(390. Mutual assessment contract, exemptions : See Civ. C. § 453/«\ Cooperative business association: See Civ. C. § 653f. How real and personal property shall be attached. § 542. The sheriff to whom the writ is directed and delivered, must execute the same without delay, and if the undertaking- mentioned in section five hundred and forty be not given, as follows : 1. Heal property, standing upon the records of the county in the name of the defendant, must be attached, by filing with the recorder of the county a copy of the writ, together with a description of the property attached, and a notice that it is attached; and by leaving a similar copy of the writ, description, and notice with an occupant of the property, if there is one: if not, then by posting the same in a conspicuous place on the property attached. 2. Heal property, or an interest therein, belonging to the defendant, and held by any other person, or standing on the records of the county in the name of any other person, must be attached, by filing with the recorder of the county a copy of the writ, together with a description of the property, and a § 542 CODE OF CIVIL PROCEDURE. 389 notice that such real property, and any interest of the defend- ant therein, held by or standing in the name of such other person (naming- him), are attached; and by leaving with the occupant, if any, and with such other person, or his agent, if known and within the county, or at the residence of either, if within the county, a copy of the writ, with a similar descrip- tion and notice. If there is no occupant of the property, a copy of the writ, together with such description and notice, must be posted in a conspicuous place upon the property. The recorder must index such attachment when filed, in the names, both of the defendant and of the person by whom the property is held or in whose name it stands on the records. 3. Personal property, capable of manual delivery, must be attached by faking it into custody. 4. Stocks or shares, or interest in stocks or shares, of any corporation or company, must be attached by leaving with I ho president, or other head of the same, or the secretary, cashier, or other managing agent thereof, a copy of the writ, and a notice stating that the stock or interest of the defendant is attached, in pursuance of such writ. 5. Debts and credits and other personal property, not capable of manual delivery, must lie attached by leaving with the per- son owing such debts, or having in his possession, or under his control, such credits and other personal property, or with his agent, a copy of the writ, and a notice that the debts owing by him to the defendant, or trie credits and other personal property in his possession, or under his control, belonging to the defend- ant, are attached in pursuance of such writ, except in the case of attachment of growing crops, a copy of the writ, together with a description of the property attached, and a notice that it is attached, shall be recorded the same as in the attachment of real property. Amended March 16, 1903; stats. 1903, p. 167. •".4 Cal. 342; 57 Cal. 195, 256; 65 Cal. 303; 77 Cal. 655; 90 Cal. 568; 95 Cal. 531 : 96 Cal. 267; 101 Cal. 227; 103 Cal. 655; 111 Cal. 235, 238; 119 Cal. 198; 121 Cal. 351; 138 Cal. 194; 146 Cal. 742; 151 Cal. 71; 1 Cal. App. 482 ; VIII Cal. App. Dec. 366. Sales on execution : See Code Civ. Proc. § 688. 390 CODE OK CIVIL PROCEDURE. §5(54 CHAPTER V. RECEIVERS. Sec. 564. Appointment of receiver. 565. Appointment of receivers upon dissolution of corpora- tions. Appointment of receiver. § 564. A receiver may he appointed by the court in which an action is pending, or by the judge thereof : 1. In an action by a vendor to vacate a fraudulent purchase of property, or by a creditor to subject any property or fund to his claim, or between partners or others jointly owning or inter- ested in any property or fund, on the application of the plaintiff, or of any party whose right to or interest in the property or fund, or the proceeds thereof, is probable, and where it is shown that the property or fund is in danger of being lost, removed, or materially injured ; 2. In an action by a mortgagee for the foreclosure of his mortgage and sale of the mortgaged property, where it appears that the mortgaged property is in danger of being lost, removed, or materially injured, or that the condition of the mortgage has not been performed, and that the property is probably insuffi- cient to discharge the mortgage debt ; 3. After judgment, to carry the judgment into effect; 4. After judgment, to dispose of the property according to the judgment, or to preserve it during the pendency of an appeal, or in proceedings in aid of execution, when an execution has been returned unsatisfied, or when the judgment debtor refuses to apply his property in satisfaction of the judgment ; 5. In the cases when a corporation has been dissolved, or is insolvent, or in imminent danger of insolvency, or has forfeited its corporate rights ; 6. In all other cases where receivers have heretofore been appointed by the usages of courts of equity. Enacted March 11, 1872. 53 Cal. 551 ; 54 Cal. 287 ; 55 Cal. 456 ; 56 Cal. 29, 627 57 Cal. 522, 624 ; 60 Cal. 227 ; 65 Cal. 433 ; 66 Cal. 615 72 Cal. 573; 75 Cal. 322; 78 Cal. 358; 84 Cal. 355 85 Cal. 36 ; 95 Cal. 276 ; 98 Cal. 495 ; 99 Cal. 410 ; 108 § 504 CODE OF CTVII- PROCEDURE. 391 Cal. 435; 110 Cal. 140. 144; 115 Cal. 04. 274; 120 Cal. 618; 121 Cal. 41, 544; 123 Cal. 235: 13S Cal. 238; 152 Cal. 748 ; 5 Cal. App." 101. Receiver on dissolution of cooperative business association: See Civ. C. § 653;. Appointment of receivers upon dissolution of corporations. § 565. Upon the dissolution of any corporation, the superior courl of the county in which the corporation carries on its business, or has its principal place of business, on application of any creditor of the corporation, or of any stockholder or member thereof, maj appoint one or more persons to be receivers or trustees of the corporation, to take charge of the estate and effects thereof, and to collect the debts and property due and belonging to the corporation, and to pay the outstanding debts thereof, and to divide the moneys and other property that shall remain over, among the stockholders or members. Amended March 9. 3880; amendts. 1880, p. 4. 84 Cal. 306; 100 Cal. 119; 103 Cal. 14S : 108 Cal. 135; 129 Cal. 631. Involuntary dissolution : See Civ. C. § 400. Voluntary dissolution : Code Civ. Proc. § 1227 ct seq. TITLE IX. Of the Execution of the Judgment in Civil Actions. CHAPTER I. THE EXECUTION. Sec. 688. What shall be liable to be seized in execution. Not to be affected till a levy is made. 690. What exempt from execution. What shall be liable to be seized in execution — Not to be affected till a levy is made. § 688. All goods, chattels, moneys, and other property, both real and personal, or any interest therein, of the judgment debtor, not exempt by law, and all property anil rights of prop- erty seized and held under attachment in the action, are liable to execution. Shares and interests in any corporation or com- 592 CODE OF CIVIL PROCEDURE. § 688 pany, and debts and credits, and all other property, both real and personal, or any interest in either real or personal property, and all other property not capable of manual delivery, may be levied upon or released from levy in like manner as like prop- erty may be attached or released from attachment. Gold dust must be returned by the officer as so [much] money collected at its current value, without exposing the same to sale. Until a levy, property is not affected by the execution. Amended March 19, 1907: stats. 1907, p. 683. 52 Cal. 331; 54 Cal. 342: 57 Cal. 522: 58 Cal. 375; 65 Cal. 302: 72 Cal. 70; 77 Cal. 055; 94 Cal. 221; 99 Cal. 1G5 ; 100 Cal. 327 ; 101 Cal. 227 ; 118 Cal. 101 ; 119 Cal. 1114: 122 Cal. 97; 131 Cal. 89: 133 Cal. 317; 138 Cal. 194: 140 Cal. 742: XXXVII Cal. Dec. 210. 211. Note. — § 688. The amendment consists in substituting the words "levied upon or released" for the word "attached," thus providing a mode of releasing a levy of execution. It adopts the method proposed for the release of attachments by section 560. Property exempt from execution : See § 690. Cooperative business associations: See Civ. C. § 653f. Levy : See Code Civ. Proc. S 542. Sale of franchises under execution: See Civ. C. §§388-393. What exempt from execution. § 690. The following property is exempt from execution or attachment, except as herein otherwise specially provided : $ $ $ * * # # * * * 11. The shares held by a member of a homestead association duly incorporated, not exceeding in value one thousand dollars if the person holding the shares is not the owner of a home- stead under the laws of this state: ******* * * * 18. All moneys, benefits, privileges, or immunities accruing or in any manner growing out of any life insurance, if the annual premiums paid do not exceed five hundred dollars, and if they exceed that sum a like exemption shall exist which shall bear the same proportion to the moneys, benefits, privileges, and immunities so accruing or growing out of such insurance that said five hundred dollars bears to the whole annual premiums paid ; § 690 CODE OF CIVIL PROCEDURE. 393 19. Shares of stock in any building and loan association to the value of one thousand dollars ; ****** * * * * No article, however, or species of property mentioned in this section is exempt from execution issued upon a judgment recov- ered for its price, or upon a judgment of foreclosure of a mort- gage or other lien thereon. Amended March 22. 1907 ; stats. 1907, p. S82. 62 Cal. 400, 406 ; 64 Cal. 291 ; 72 Cal. 244 ; 77 Cal. 195, 404 ; 90 Cal. 546 : 99 Cal. 203 ; 102 Cal. 536 ; 122 Cal. 439; 145 Cal. 778; 2 Cal. App. 232, 487, 490; 3 Cal. App. 655. Building and loan corporation, exemption: See Civ. C. §643. Contract, mutual assessment, exemption of moneys : See Civ. C. § 453fr. TITLE X. Actions in Particular Cases. CHAPTER V. ACTIONS FOR THE USURPATION OF AN OFFICE OR FRANCHISE. Sec. 803. Action may be brought against party usurping, etc., any office or franchise. Action may be brought against party usurping, etc., any office or franchise. § 803. An action may be brought by the attorney general, in the name of the people of this state, upon his own informa- tion, or upon a complaint of a private party, against any person who usurps, intrudes into, or unlawfully holds or exercises any public office, civil or military, or any franchise, or against any corporation, either de jure or de facto, which usurps, intrudes into, or unlawfully holds or exercises any franchise, within this state. And the attorney general must bring the action, when- ever he has reason to believe that any such office or franchise 394 CODE OF CIVIL PROCEDURE. § 803 has been usurped, intruded into, or unlawfully held or exercised by any person, or when he is directed to do so by the governor. Amended March 19, 1907 ; stats. 1907, p. 600. 54 Cal. 321; 55 Cal. 616; 66 Cal. 288; 69 Cal. 463; 73 Cal. 491 ; 76 Cal. 437 ; 77 Cal. 372 ; 82 Cal. 243 ; 84 Cal. 120, 376 ; 96 Cal. 606 ; 100 Cal. 541 ; 101 Cal. 148 ; 114 Cal. 474; 115 Cal. 284; 116 Cal. 109; 117 Cal. 614; 123 Cal. 146 ; 125 Cal. 529 ; 127 Cal. 349, 571 ; 128 Cal. 259 ; L29 Cal. 546; 132 Cal. 190; 145 Cal. 760; 151 Cal. 172, 152, 453, 454 ; XXXVII Cal. Dec. 340 ; 3 Cal. App. 679 ; 5 Cal. App. 492. Note. — § 803. The amendment suggested by the commissioner simply added to the original section as it was enacted March 11, 1872, the following sentence: "And if it is claimed that a cor- poration, either de jure or de facto, is exercising a franchise which it is not authoi'ized to exercise, or is exercising corporate functions when not authorized to do so, such corporation must be made a party defendant." This was struck out on the floor of the senate January 31, 1907, and the following inserted after the word "franchise," where it first appears : "or against any cor- poration, either de jure or dc facto, which usurps, intrudes into, or unlawfully holds or exercises any franchise." Cooperative business association. Attorney general may in- vestigate: See Civ. C. § 653/r. Franchise : See Civ. C. § 358. Dissolution of corporation : See Civ. C. § 400. Investment companies: See Pol. ( '. §653*. Non-profit cooperative corporation, suit by attorney general: See Civ. C. § 653:. TITLE XIV. Of Miscellaneous Provisions. CHAPTER VI. OF COSTS. Ski'. |n::r.. When plaintiff is a non-resident <>i a foreign corpora- lien, defendant may require security for costs. 1037. If such security is not given, the action may be dis- missed. When plaintiff is a non-resident or a foreign corporation, defendant may require s ccrity for costs. § 1036. Whpn the plaintiff in an action or special proceeding resides out of the state, or is a foreign corporation, security for § 103G CODE OF CIVIL PROCEDURE. 3!J5 the costs and charges, which may be awarded against such plaintiff, may be required by the defendant. When required, all proceedings in the action or special proceeding must be stayed until an undertaking, executed by two or more persons, is filed with the clerk, to the effect that they will pay such costs and charges as may be awarded against the plaintiff by judgment, or in the progress of the action or special proceeding, not exceed- ing the sum of three hundred dollars. A new or an additional- undertaking may be ordered by the court or judge, upon proof that the original undertaking is insufficient security, and pro- ceedings in the action or special proceeding stayed until such new or additional undertaking is executed and filed. Amended March 18, 1903 ; stats. 1903, p. 187. 56 Cal. 251 ; 02 Cal. 42 ; 93 Cal. 509 ; 118 Cal. 660 ; 137 Cal. 449 ; 149 Cal. 490, 492, 493. Qualification of sureties: See Code Civ. Proc. § 1057. If such security is not given, the action may be dismissed. S 1037. After the lapse of thirty days from the service of notice that security is required, or of an order for new or addi- tional security, upon proof thereof, and that no undertaking as required has been filed, the court or judge may order the action or special proceeding (o lie dismissed. Amended March 18. 1903; stats. 190:3, p. 188. 93 Cal. 509; 118 Cal. 661 : 137 Cal. 449; 14!) Cal. 490, 492; 152 Cal. :UH. CHAPTER VII. GENERAL PROVISIONS. Sec. 1056. Corporations may become sureties on undertakings and bonds. I or. 7. Undertakings or bonds, requisites of. Corporations may become sureties on undertakings and bonds. S 1056. In all cases where an undertaking or bond, with any number of sureties, is authorized or required by any provision of this code, or of any law of this state, any corporation with a paid-up capital of not less than one hundred thousand dol- lars, incorporated under the laws of this or any other state of the United Stales I'm- the purpose of making, guaranteeing. 396 CODE OF CIVIL PROCEDURE. § 1050 or becoming a surety upon bonds or undertakings required or authorized by law, or which, by the laws of the state where it was originally incorporated has such power, and which shall have complied with all the requirements of the law of this state regulating the formation or admission of these corporations to transact such business in this state, may become and shall be accepted as security or as sole and sufficient surety upon such undertaking or bond, and such corporate surety shall be subject to all the liabilities and entitled to all the rights of natural persons sureties ; provided, that the insurance commissioner shall have the same jurisdiction and powers to examine the affairs of such corporations as he has in other cases ; shall require them to file similar statements and issue to them a similar certificate. And whenever the liabilities of any such corporation shall exceed its assets, the insurance commissioner shall require the deficiency to be paid up in sixty days, and if it is not so paid up, then he shall issue a certificate showing the extent of such deficiency, and he shall publish the same once a week for three weeks, in a daily San Francisco paper. And, until such defi- ciency is paid up, such company shall not do business in this state. In estimating the condition of any such company, the commis- sioner shall allow as assets only such as are allowed under exist- ing laws at the time, and shall charge as liabilities, in addition of eighty per cent of the capital stock, all outstanding indebted- ness of the company, and a premium reserve equal to fifty per centum of the premiums charged by said company on all risks then in force. Enacted March 10, 1889 ; stats. 1889, p. 215. 95 Cal. 599 ; 97 Cal. 855. For insurance commissioner : See Pol. C. § 588 ct seq-. See act of 1885, under heading "Bonds," Appendix, entitled "An act to facilitate the giving of bonds required by law." Undertakings or bonds, requisites of. § 1057. In any case where an undertaking or bond is author- ized or required by any law of this state, the officer taking the same must, except in the case of such a corporation as is men- tioned in the next preceding section, require the sureties to accompany it with an affidavit that they are each residents and householders, or freeholders, within the state, and are each worth the sum specified in the undertaking or bond, over and above § 1057 CODE OF CIVIL PROCEDURE. 397 all their just debts and liabilities, exclusive of property exempt from execution; but when the amount specified in the under- taking or bond exceeds three thousand dollars, and there are more than two sureties thereon, they may state in their affidavits that they are severally worth amounts less than the amount specified in the undertaking or bond, if the whole amount is equivalent to that of two sufficient sureties. Any corporation such as is mentioned in the next preceding section, may become sole surety on such bond. No such corporation must be accepted in any case as a surety when its liabilities exceed its assets as ascertained in the manner provided in section ten hundred and fifty-six. Whenever an undertaking has been given and approved in any action or proceeding, and it is thereafter made to appear to the satisfaction of the court that any surety upon such under- taking has for any reason become insufficient, the court may, upon notice, order the giving of a new undertaking, with suffi- cient sureties, in lieu of such insufficient undertaking. In case such new undertaking so required shall not be given within the time required by such order, or in case the sureties thereon fail to justify thereon when required, all rights obtained by the filing of such original undertaking shall immediately cease. Amended March 15, 1907 ; stats. 1907, p. 308. 52 Cal. 448 ; 97 Cal. 355 ; 106 Cal. 46 ; 122 Cal. 208 ; 128 Cal. 669. Note.- — § 1057. The change consists in the addition of the last two sentences, and authorizes the court to exact a new under- taking in any case in which it is shown that any surety on a bond has become insufficient, thus avoiding all possible doubt of the court's power in the premises. 398 CODE OF CIVIL PROCEDURE. § 1227 PART III. OF SPECIAL PROCEEDINGS OF A CIVIL NATURE. TITLE VI. Of the Voluntary Dissolution of Corporations. Sec. 1227. How dissolved. 1228. Application, what to contain. 12 29. Application, how signed and verified. 1230. Filing application and publication of notice. 1231. Objections may be filed. 1232. Hearing of application. 1233. Judgment roll and appeals. 1234. Application by savings and loan society. How dissolved. § 1227. A corporation may be dissolved by the superior court of the county where its principal place of business is situated, upon its voluntary application for that purpose. Amended April 16, 1880: amendts. 1880, p. 109. 81 Cal. 386 ; 84 Cal. 365 ; 150 Cal. 577, 578. Voluntary dissolution, receiver: See Code Civ. Proc. §§564, 565. Application, what to contain. § 1228. The application must be in writing, and must set forth : 1. That at a meeting of the stockholders or members called for that purpose, the dissolution of the corporation was resolved upon by a vote of two thirds of the members or of the holders of two thirds of the subscribed capital stock ; 2. That all claims aud demands against the corporation have l>een satisfied and discharged. Amended March 16, 1907: sials. 1907, p. 318. 150 Cal. 579. Note. — S122N. The amendment is in subdivision 1 and sub- stitutes the words "vote of two thirds of the members or of the holders of two thirds of the subscribed capital stock," for the ambiguous words in the former statute, the words in the quota- tion marks being what was really intended by the legislature. § 1229 CODE OF CIVIL PROCEDURE. 391) Application, how signed and verified. § 1229. The application must be signed by a majority of the board of trustees, directors, or other officers having the manage- ment of the affairs of the corporation, and must be verified in the same manner as a complaint in a civil action. Enacted March 11, 1872. 47 Cal. 133. Filing application and publication of notice. § 1230. Upon the filing of the application, the clerk must give notice of the same for such time as the court may order, but not less than thirty nor more than fifty days, by publication in some newspaper published in the county; or if there be no newspaper published therein, then by notices posted in three of the prin- cipal public places in the county. Amended March 16, 1907 ; stats. 1907, p. 318. Note. — § 1230. To provided for the notice to be given, and by whom, in proceedings for the voluntary dissolution of corpora- tions. Objections may be filed. § 1231. At any time before the expiration of the time of pub- lic;) t ion. any person may file his objections to the application. Enacted March 11, 1872. Hearing of application. § 1232. After the time of publication has expired, the court may, upon five days' notice to the persons who have filed objec- tions, or without further notice, if no objections have been filed, proceed to hear and determine the application, and if all the statements therein made are shown to be true, must declare the corporation dissolved. A certified copy of the decree and order ill' the cGurt dissolving the corporation must be filed in the office of i he secretary of stale. Amended March 20, 1907; stats. 1907, p. 744. Note. — § 1232. The amendment consists in the addition of the last sentence, requiring a certified copy of the decree to be recorded in the office of the secretary of state. Judgment roll and appeals. §1233. The application, notices and proof of publication, objections (if there be any), and declaration of dissolution, con- 400 CODE OF CIVIL PROCEDURE. § 1233 stitute the judgment roll ; and from the judgment an appeal may be taken, as from other judgments of the superior courts. Amended April 16, 1880 ; amendts. 1880, p. 109. 81 Cal. 386 ; 84 Cal. 365 ; 150 Cal. 577, 578. Application by savings and loan society. § 1234. If the applicant is a savings and loan association, or engaged in the business of receiving money on deposit, and there is any unclaimed deposit or dividend in its hands belong- ing to a person whose whereabouts are unknown to the trustees, directors, or other officers presenting the application, the appli- cation must set forth the name of the person making such deposit, or entitled to such dividend, the time when such deposit was made or dividend declared, the residence, if known, of such person at the time of such deposit, the amount of such deposit or dividend, and the fact that the whereabouts of such person arc unknown. The same facts must be stated in the notice of the application given by the clerk. If, at any time before the expiration of the time of publication, any person files a claim to such deposit or dividend, the court must, at the hearing and upon five days' notice to him, hear and determine his claim, and, if such claim is established, order such money to be paid to him. All such deposits or dividends not so claimed, or as to which no claim .shall be established, must, upon order of the court, be paid into the state treasury, accompanied with a copy of the order, which must set forth the facts hereinbefore required to be stated concerning such deposits or dividends ; and, upon produc- tion of the treasurer's receipt for such payment, the court may proceed to declare the corporation dissolved as in other cases. All unclaimed deposits and dividends so paid into the state treasury musf be received, invested, accounted for, and paid out, in the same manner and by the same officers as is provided by law in the ca.se of escheated estates, and in section twelve hun- dred and seventy-two. Amended March 16, 1907; stats. 1907, p. 318. Note. — $ 1234. The word "unknown," substituted for the word "known," to correct a manifest error. § 1275 CODE OF CIVIL PROCEDURE. 401 TITLE IX. Of Change of Names. Sec. 1275. Jurisdiction. 127G. Application for change of name, how made. 1277. Order to show cause; publication; proof of publica- tion. 1278. Hearing of application and remonstrance; corpora- tions; change of name. 1279. County clerk to file copy of decree with secretary of state. Jurisdiction. § 1275. Applications for change of names must be heard and determined by the superior courts. Amended April 23. 1880; amendts. 1880, p. 117. 123 Cal. 526. 624; 150 Cal. 320. Application for change of name, how made. S 1276. All applications for change of names must be made to the superior court of the county where the person whose name is proposed to be changed resides, by petition, signed by such person ; and if such person is under twenty-one years of age, if a male, and under the age of eighteen years of age, if a female, by one of the parents, if living, or if both be dead, then by the guardian ; and if there be no guardian, then by some near relative or friend. The petition must specify the place of birth and residence of such person, his or her present name, the name proposed, and the reason for such change of name ; and must, if the father of such person be not living, name, as far as known to the petitioner, the near relatives of such person, and their place of residence. Any religious, benevolent, literary, scientific, or other corporation, or any corporation bearing or having for its name, or using or being known by the name of any benevolent or charitable order or society, may, by petition, apply to the superior court of the county in which its articles of incorporation were originally filed, or in which the property of such incorpora- tion is situated, for a change of its corporate name. Such peti- tion must be signed by a majoriiy of the directors or trustees of the corporation, and must specify the date of the formation of the corporation, its present name, the name proposed, and the 402 CODE OF CIVII, PROCEDURE. § 1276 reason for such change of name. Upon filing .such petition applicant is not the corporate name of any corporation existing at said time, and that said name does not so closely resemble the name of any such existing corporation as will tend to deceive. Amended March 14, 1905 ; stats. 1905. p. 99. 123 Cal. 526. County clerk to file copy of decree with secretary of state. §1279. A certified copy of the decree of the court, changing the name of a person or corporation, shall within thirty days from the date of such decree, be filed in the office of the secre- tary of state. Amended March 18, 1907 ; stats. 1907, p. 34.">. 123 Cal. 52G ; 150 Cal. 320. Note. — § 1279. The change compels the filing in the office of i he secretary of state of a certified copy of the decree of court, changing the name of a person or corporation, instead of the former method of making return to that office, a method which experience had shown to be impossible of enforcement, making the section uniform with the provisions of section 300« of the Civil Code, added in 1903. See, also, section 300« of the Civil Code. TITLE XL Of Proceedings in Probate Courts. CHAPTER III. OF EXECUTORS AND ADMINISTRATORS, ETC. Article I. Letters Testamentary and of Administration, Etc. Sec. 1348. Corporations as executors. Corporations as executors. § 1348. Corporations, authorized by their articles of incor- poration to act as executor, administrator, guardian of estates, assignee, receiver, depository, or trustee, and having a paid-up capital of not less than two hundred and fifty thousand dollars, of which one hundred thousand dollars shall have been actually paid in in cash, may be appointed to act in such capacity in like manner as individuals. In all cases in which it is required that 404 CODE OF CIVIL PROCEDURE. § 1348 ho executor, administrator, guardian, assignee, receiver, depos- itory, or trustee, shall qualify by taking and subscribing an oath, or in which an affidavit is required, it shall be a sufficient qualifi- cation by such corporation, if such oath shall be taken and subscribed, or such affidavit made, by the president or secretary or manager thereof ; and such officer shall be liable for the failure of such corporation to perform any of the duties required by law to be performed by individuals acting in like capacity and sub- ject to like penalties; and such corporation shall be liable for such failure to the full amount of its capital stock and upon the bond required upon its assuming the trusts provided for herein. Enacted March 5, 1SS7 ; stats. 1887, p. 21. See act of April 0, 1891, authorizing certain corporations to act as executors, Appendix, under heading "Executors." PENAL CODE. 405 PENAL CODE. PORTIONS RELATING TO PRIVATE CORPORATIONS. PRELIMINARY PROVISIONS. Sec. 7. Certain terms defined in the senses in which they are used in this code. Certain terms defined in the senses in which they are used in this code. § 7. Words used in this code in the present tense include the future as well as the present : words used in the masculine gender include the feminine and neuter: the singular number includes the plural, and the plural the singular : the word "per- son" includes a corporation as well as a natural person : the word "county" includes "city and county" ; writing includes printing and typewriting; oath includes affirmation or declara- tion ; and every mode of oral statement, under oath or affirma- tion, is embraced by (he term "testify." and every written one in the term "depose"; signature or subscription includes mark, when the person can not write, his name being written near it, by a person who writes his own name as a witness; provided, that when a signature is made by mark it must, in order that the same may he acknowledged or serve as the signature to any sworn statement, he witnessed by two persons who must sub- scribe their own names as witnesses thereto. The following words have in this code the signification attached to them in this section, unless otherwise apparent from the con- text : 1. Tiie word "willfully." when applied to the intent with which an ad is done or omit led. implies simply a purpose or willingness to commit the act. or make the omission referred to. It does not require any intent to violate law. or to injure another, or to acquire any advantage; 406 PENAL CODE. § 7 2. The words "neglect," "negligence," "negligent," and "negli- gently" import a want of such attention to the nature or prob- able consequences of the act or omission as a prudent man ordinarily bestows' in acting in his own concerns ; 3. The word "corruptly" imports a wrongful design to acquire or cause some pecuniary or other advantage to the person guilty of the act or omission referred to, or to some other person ; 4. The words "malice" and "maliciously" import a wish to vex, annoy, or injure another person, or an intent to do a wrong- ful act, established either by proof or presumption of law ; 5. The word "knowingly" imports only a knowledge that the facts exist which bring the act or omission within the provisions of this code. It does not require any knowledge of the unlawful- ness of such act or omission ; 6. The word "bribe" signifies anything of value or advantage, present or prospective, or any promise or undertaking to give any, asked, given, or accepted, with a corrupt intent to influence, unlawfully, the person to whom it is given, in his action, vote, or opinion, in any public or official capacity ; 7. The word "vessel," when used with reference to shipping, includes ships of all kinds, steamboats, canal-boats, barges, and every structure adapted to be navigated from place to place for the transportation of merchandise or persons ; 8. The words "peace officer" signify any one of the officers mentioned in section eight hundred and seventeen ; 9. The word "magistrate" signifies any one of the officers mentioned in section eight hundred and eight; 10. The word "property" includes both real and personal property ; 11. The words "real property" are coextensive with lands, tenements, and hereditaments ; 12. The words "personal property" include money, goods, chattels, things in action, and evidences of debt; 13. The word "month" moans a calendar month, unless other- wise expressed: the word "daytime" means the period between sunrise and sunset, and the word "nighttime" means the period between sunset and sunrise ; 14. The word "will" includes codicil ; 1">. The word "writ" signifies an order or precept in writing, issued in the name of the people, or of a court or judicial offie r. § 7 PENAL CODE. 407 and the word "process" a writ or summons issued in the course of judicial proceedings ; 16. Words and phrases must be construed according to the context and the approved usage of the language; but technical words and phrases, and such others as may have acquired a peculiar and appropriate meaning in law, must be construed according to such peculiar and appropriate meaning ; 17. Words giving a joint authority to three or more public officers or other persons, are construed as giving such authority to a majority of them, unless it is otherwise expressed in the act giving the authority ; 18. When the seal of a court or public officer is required by law to be affixed to any paper, the word "seal" includes an impression of such seal upon the paper alone, or upon any sub- stance attached to the paper capable of receiving a visible impression. The seal of a private person may be made in like manner, or by the scroll of a pen, or by writing the word "seal" against his name ; 19. The word "state," when applied to the different parts of i he United States, includes the District of Columbia and the ter- ritories, and the words "United States" may include the district and territories; 20. The word "section," whenever hereinafter employed, refers Id a section of this code, unless some other code or statute is expressly mentioned. Amended March 21, L905 ; stats. 1905. p. G35. 58 Cal. 269 ; 67 Cal. 422 ; 68 Cal. 363, 438 ; 70 Cal. 533 ; 72 Cal. 613, 616 ; 82 Cal. 468 ; 96 Cal. 177 ; 105 Cal. 639 ; 130 Cal. 577 ; 136 Cal. 530 ; 141 Cal. 114 ; 144 Cal. 355 ; 2 Cal. App. 459 ; 4 Cal. App. 721 : 7 Cal. App. 367, 689 ; VIII Cal. App. Dec. 567. •108 PENAT. CODE. § ITS PART I. OF CRIMES AND PUNISHMENTS. TITLE VII. Of Crimes Against Public Justice. CHAPTER VII. OTHER OFFENSES AGAINST PUBLIC JUSTICE. Sec. 178. Officers of corporations not to employ Chinese. [Re- pealed. | 179. Corporations not to employ Chinese. [Repealed.] Officers of corporations not to employ Chinese. [Repealed.] S 178. Officers of corporations not to employ Chinese. | Re- pealed March 21, 1905; stats. 1905, p. 652.] Corporations not to employ Chinese. [Repealed.] S 179. Corporations not to employ Chinese. [Repealed March 21, 1905; stats. 1905, p. 052.] Note. — SS 178, 179. These sections were, in the circuit com I of the United States, ninth judicial district, explicitly held to be in violation of the Constitution of the United States, on May 22, 1880. (In re Parrutt, 5 Pac. Coast L. J. 161.) They are now obsolete. An ordinance in somewhat similar terms was also held unconstitutional in Ex parte Kuback, 85 Cal. 274. (See, also, sec. 2, art. XIX, Constitution of California, ante.) TITLE IX. Of Crimes Against the Person and Against Public Decency and Good Morals. CHAPTER II. ABANDONMENT AND NEGLECT OF CHILDREN. Sec. 'll?,e. Minors not to deliver messages, etc., to certain places. 273f. Sending children to immoral places. Minors not to deliver messages, etc., to certain places. § 273c. Every telephone, special delivery company or asso- ciation, and every other corporation or person engaged in the § 273c PENAL CODE. 409 delivery of packages, letters, notes, messages, or other matter, and every manager, superintendent, or other agent of such per- son, corporation, or association, who sends any minor in the employ or under the control of any such person, corporation, association, or agent, to the keeper of any house of prostitution, variety theater, or other place of questionable repute, or to any person connected with, or any inmate of, such house, theater, or other place, or who permits such minor to enter such house, theater, or other place, is guilty of a misdemeanor. Enacted March 22, 1905 ; stats. 1905, p. 760. 150 Cal. 118. Note. — § 273e. The matter in section 1389, which incorrectly stood in a chapter entitled "Dismissal of the action," has been put into a new section designated as 273e, and placed in its proper chapter, with the other sections relative to childi-en, and section 1389 accordingly repealed. Sending children to immoral places. § 273f. Any person, whether as parent, guardian, employer, or otherwise, and any firm or corporation, who as employer or otherwise, shall send, direct, or cause to be sent or directed to any saloon, gambling house, house of prostitution, or other immoral place, any minor under the age of eighteen, is guilty of a misdemeanor. Enacted March 18, 1907 ; stats. 1907, p. 565. 7 Cal. App. 529. CHAPTER VII. OF CRIMES AGAINST RELIGION AND CONSCIENCE, AND OTHFR OFFENSES AGAINST GOOD MORALS. Sec. 310. Advertisements, etc., on flag prohibited. Penalty. Exceptions. Advertisements, etc., on flag prohibited— Penalty— Exceptions. § 310. That any person, firm or corporation, who, in any manner, for exhibition or display, puts, places, or causes to be placed an inscription, picture, device, design, symbol, name, advertisement, word, letter, character, mark or notice of any kind whatsoever, upon any flag of the United States, or ensign evidently purporting to be such flag, or who in any manner appends, annexes or affixes to any such flag any inscription, picture, device, symbol, name, advertisement, word, letter, char- 18— CL 410 PENAL CODE. § 310 acter, mark or notice whatsoever, or who displays or exhibits, or causes to be displayed or exhibited, any flag, of the United States or ensign purporting to be such flag, upon which is put, attached, annexed, affixed or placed in any manner, any inscrip- tion, picture, design, device, symbol, name, advertisement, word, letter, mark or notice whatsoever, or who mutilates, tramples upon, or otherwise defaces or defiles any such flag, said flag, be public or private property, or who places or causes to be placed on any manufactured or prepared article or covering of said article, such flag, or indication of such flag, or who uses or causes to be used for purposes of a commercial or other trade- mark, such flag, or indication of such flag, shall be fined not more than two hundred dollars or imprisoned not more than one year, or both, for each and every offense, in the county jail of the county in which the trial is held ; provided, however, that flags, or ensigns, the property of and used in the service of the United States, or any state, territory or District of Columbia, may have inscriptions, names of actions, battles, skirmishes, or words, marks or symbols, which are placed thereon pursuant to law or authorized regulations ; provided further, that this act shall not apply to banners or flags carried by military or patriotic organizations existing under the laws of the state of California and the United States of America, or to flags used in theatrical performances, or to flags carried by political parties, or organizations, in parades, or in public meetings. New section; added March 18, 1900; stats. 1000. p. 401 ; in effect in sixty days. CHAPTER XT. PAWNBROKERS. Sec. 339. Failing to keep a register. 343. Refusing to allow an officer with search-warrant to inspect register of pledged articles. Failing to keep a register. § 339. Every person who carries on the business of a pawn- broker, or who purchases gold bars, gold quartz or gold bullion or mineral containing gold, who fails at the time of the trans- action to enter in a register kept by him for that purpose, in the English language, the date, duration, amount, and rate of interest of every loan made by him, or an accurate description of the property pledged, or estimated value of the property § 339 PENAL CODE. 411 purchased, or the uaine and residence of the pledgor or seller, or to deliver to the pledgor or seller a written copy of such entry, or to keep an account in writing of all sales made by -him, is guilty of a misdemeanor. Amended March 15, 1009; stats. 1909, p. 367; in effect in sixty days. ( See note to § 343, post. ) 150 Cal. 188, 193. Refusing to allow an officer with search-warrant to inspect register of pledged articles. § 343. Every pawnbroker or person who purchases gold bul- lion, gold bars or gold quartz or mineral containing gold, who fails, refuses, or neglects to produce for inspection his register, or to exhibit all articles received by him in pledge, or his account of sales, to any officer holding a warrant authorizing him to search for personal property or to any person appointed by the sheriff or head of the police department of any city, city and county or town, or an order of a committing magistrate directing such officer to inspect such register, or examine such articles or account of sales, is guilty of a misdemeanor. Amended March 15, 1909; stats. 1909, p. 367; in effect in sixty days. Ed. Note. — § 3 4 3. Section 3 of the act amending sections :::::i :uul 343 reads as follows: "Sec. 3. Providing that nothing in this act shall apply to persons or corporations doing a banking business in this state." Stats. 1900. p. 367. CHAPTER XII. OTHER INJURIES TO PERSONS. Sec. 349a. Frauds in stamping and labeling produce and manu- factured goods. 350. Counterfeiting trade-marks. 35 1. Selling goods which bear counterfeit trade-marks. 352. Definition of "counterfeited trade-marks," etc. 353. "Trade-mark" defined. 354. Refilling casks, etc., bearing trade-mark. 354V 2 . Selling or refilling casks, etc., containing trade-mark. 35 [%. Destroying or defacing trade-marks. 365. Innkeepers and carriers refusing to receive guests. Frauds in stamping and labeling produce and manufactured goods. S 349'/. Any person engaged in the production, manufacture, or sale of any article of merchandise made in whole or in part 412 PENAL CODE. § 349a iii this slate, who, by any imprint, label, trade-mark, tag, stamp, or other inscription or device, placed or impressed upon such article, or upon the cask, box, case, or package containing the same, misrepresents or falsely states the kind, character, or nature of the labor employed or used, or the extent of the labor employed or used, or the number or kind of persons exclusively employed or used, or that a particular or distinctive class or char- acter of laborers was wholly and exclusively used or employed, when, in fact, another class, or character, or distinction of laborers was used or employed, either jointly or in anywise supplementary to such exclusive class, character, or distinction of laborers, in the production or manufacture of the article to which such imprint, label, trade-mark, tag, stamp, or other inscription or device is affixed, or upon the cask, box, case, or package containing the same, is guilty of a misdemeanor, and punishable by a fine of not less than fifty nor more than five hundred dollars, or by imprison- ment in the county jail for not less than twenty nor more than ninety days, or both. Enacted March 21, 1905; stats. 1905, p. 669. Counterfeiting trade-marks. § 350. Every person who willfully reproduces, copies, imi- tates, forges, or counterfeits, or procures to be reproduced, copied, imitated, forged, or counterfeited, any trade-mark usually affixed by any person to his goods, which has been duly recorded in the office of the secretary of state, or with the commissioner of patents in the United States patent office, or any label or brand, composed in whole or in part of a reproduction of said trade-mark, or who affixes (lie same to goods of essentially the same descriptive properties and qualities as those referred (o in the registration of such trade-mark, with intent to pass off, or to assist other persons to pass oft', any goods to which such reproduced, copied, imitated, forged, or counterfeited trade-mark, or label, or brand is affixed, or intended to be affixed, as the goods of the person, firm, company, or corporation owning the said trade-mark, is guilty of a misdemeanor. Amended March 27, 1897; stats. 1897, p. 212. See trade-marks, Civ. C. §§655, 991, 1772, 1773; and Pol. C. §S 3196-3201. Sec, also. Appendix, heading "Trade-marks." Selling goods which bear counterfeit trade- marks. S 351. Every person who sells or keeps for sale, or manufac- tures or prepares, for (he purpose of sale, any goods upon, or to § 351 PENAL CODE. 413 which any reproduced, copied, imitated, forged, or counterfeited trade-mark, or label, or brand, composed in whole or in part of such a reproduced, copied, imitated, forged, or counterfeited trade-mark has been affixed, after such trade-mark has been recorder in the office of the secretary of state, or with the com- missioner of patents in the United States patent office, intending to repi'esent such goods as the genuine goods of the person, firm, company, or corporation owning the said trade-mark, knowing the same to be reproduced, copied, imitated, forged, or counter- feited, is guilty of a misdemeanor. Amended March 27, 1897 ; stats. 1897, p. 213. Genuineness of trade-mark warranted by sale of article bearing it : Civ. C. § 1772. Definition of "counterfeited trade-marks," etc. § 352. The phrases "forged trade-mark" and "counterfeited trade-mark," or their equivalents, as used in this chapter, include every alteration or imitation of any trade-mark so resembling the original as to be likely to deceive. Enacted February 14, 1872. "Trade-mark" defined. § 353. The phrase "trade-mark," as used in the three preced- ing sections, includes every description of word, letter, device, emblem, stamp, imprint, brand, printed ticket, label, or wrapper, usually affixed by any mechanic, manufacturer, druggist, mer- chant, or tradesman, to denote any goods to be goods imported, manufactured, produced, compounded, or sold by him, other than any name, word, or expression generally denoting any goods to be of some particular class or description. Enacted February 14, 1S72. Refilling casks, etc., bearing trade-mark. § 354. Every person who has in his possession, or who uses any cask, bottle, vessel, case, cover, label, brand, or other thing bearing, or having in any way connected with it, the trade-mark of another, which has been duly recorded in the office of the secretary of state, or with the commissioner of patents in the United States patent office, or the trade name of another, for the purpose of disposing of any article other than that which such cask, bottle, vessel, case, cover, label, brand, or other thing originally contained, or is connected with by the owner of such 414 PENAL CODE. § 354 trade-mark or trade name, with intent to deceive or defraud, is guilty of a misdemeanor. Amended March 27, 1897; stats. 1807, p. 213. Selling or refilling casks, etc., containing trade-mark. § 354J/ 2 - Every person who willfully sells, or traffics in any cask, keg, bottle, vessel, siphon, can, case, or other package bear- ing the duly filed trade-mark or name of another, printed, branded, stamped, engraved, etched, blown, or otherwise attached or produced thereon, or refills any such cask, keg, bottle, vessel, siphon, can, case, or other package with intent to defraud the owner thereof, without the consent of the owner thereof, or unless the same shall have been purchased from the owner thereof, is guilty of a misdemeanor. Enacted March 14, 1899 ; stats. 1899, p. 103. See, also, "Trade-marks," statutes at large, Appendix. Destroying or defacing trade-marks. § 354%. Every person who shall willfully deface, erase, oblit- erate, cover up, or otherwise remove, destroy, or conceal the duly filed trade-mark, or name of another, printed, branded, stamped, engraved, etched, blown, impressed, or otherwise attached to, or produced upon any cask, keg, bottle, vessel, siphon, can, case, or other package, for the purpose of selling or trafficking in such cask, keg, bottle, vessel, siphon, can, case, or other package, or refilling such cask, keg, bottle, vessel, siphon, can, case, or other package, with intent to defraud the owner thereof without the consent of the owner, or unless the same shall have been purchased from the owner, is guilty of a misdemeanor. Enacted March 9, 1899 ; stats. 1899, p. 86. See "Trade-marks," Appendix. Innkeepers and carriers refusing to receive guests. § 365. Every person, and every agent or officer of any cor- poration, carrying on business as an innkeeper, or as a common carrier of passengers, who refuses, without just cause or excuse, to receive and entertain any guest or to receive and carry any passenger, is guilty of a misdemeanor. Enacted February 14, 1872. See, also, "Emigration," statutes at large, Appendix. Common carriers of passengers: See Civ. C. §§2168 to 2176, and 2180 to 2191. § 369a penal code. 415 TITLE X. Of Crimes Against the Public Health and Safety. Sec. 3G9o.. Street cars to have proper brakes and fenders. 3696. Confining cattle, sheep, or swine in cars for longer than certain time. 375a. Record of sale of explosives. 383n. Sale of process or renovated butter. 386. Maintaining bridge or ferry without authority. 387. Violating condition of undertaking to keep ferry. 3 88. Riding or driving faster than a walk on toll-bridges. 389. Crossing toll-bridges, etc., without paying toll. 402c. Unsafe scaffolding, ladders, etc. Street cars to have proper brakes and fenders. § 369r/. Any person, company, or corporation, operating cars on the streets of cities or towns, or on the county roads within the state, for the conveyance of passengers, propelled by means of wire ropes attached to stationary engines, or by electricity or compressed air, who runs, operates, or uses any car or dummy, unless each car and dummy, while in use, is fitted with a brake capable of bringing such car to a stop within a reasonable dis- tance, and a suitable fender, or appliance placed in front or attached to the trucks of such dummy or car, for the purpose of removing and clearing obstructions from the track, and pre- venting any obstacles, obstructions, or person on the track from gettiug under such dummy or car, and removing the same out of danger, and out of the way of such dummy or car. is guilty of a misdemeanor. Where the board of supervisors of any county, or the city council or other governing body of any city, by ordi- nance, order, or resolution, prescribes the fender or brake to be used as aforesaid, then a compliance with such ordinance, order, or resolution must be deemed a full compliance with the pro- visions of this section. Enacted March 22, 1905; stats. 1905, p. 766. Note. — § 369a. This is a codification of the statute of 1899, page 183. 41G PENAL CODE. § 3696 Confining cattle, sheep, or swine in cars for longer than certain time. § 369b. Any officer, agent or conductor of any company or person operating any railroad in this state, who is carrying and transporting cattle, sheep, or swine in carload lots, confines the same in cars for a longer period than thirty-six consecutive hours, without unloading for rest, water and feeding, for a period of at least ten consecutive hours, is guilty of a misde- meanor. In estimating such time of confinement, the period during which the animals have been confined without such rest on connecting roads from which they are received, must be com- puted. In case the owner or person in charge of such animal refuses or neglects to pay for the care and feed of animals so rested, the company or person operating such railroad may charge the expense thereof to the owner or consignee and retain a lien upon the animals therefor until the same is paid. Enacted March 21, 1905 ; stats. 1905, p. G72. Note. — § 369b. This is a codification of section 2 of chapter 3 of the statute of 1S77-S. page 969. Record of sale of explosives. § 375a. It is the duty of each and every person, association, joint stock company, and corporation, manufacturing, storing, selling, transferring, disposing of, or in any manner dealing in, or with, or using, or giving out nitroglycerine, dynamite, vigorite, hercules powder, giant powder, or other high explosive, by what- ever name known, to keep at all times an accurate journal, or hook of record, in which must be entered, from time to time, as it is made, each and every sale, delivery, transfer, gift, or other disposition made by such person, firm, association, joint stock company, or corporation, in the course of business or otherwise, of any quantity of such explosive substance. Such journal or record book must show, in a legible handwriting, to be entered therein at the time, a complete history of each transaction, stat- ing the name and quantity of the explosive sold, delivered, given away, transferred, or otherwise disposed of; the name, place of residence, or business of the purchaser, or transferee ; the name of the individual to whom delivered, with his or her address, with a description of such individual sufficient for identification. Such journal or record book must be kept by the person, firm, association, joint stock company, or corporation so selling, deliv- ering, or otherwise disposing of such explosive substance, or § 375a PENAL CODE. 417 substances, in his or their principal office or place of business at all times subject to the inspection and examination of the peace officers, or other police authorities of the state, county, or municipality where the same is situated, on proper demand made therefor. Any failure or neglect to keep such book, or to make the proper entries therein at the time of the transaction, as herein provided, or to exhibit the same to the peace officers or other police authorities on demand, is deemed a misdemeanor, and punishable accordingly. In addition to such punishment, and as a cumulative penalty, such person, firm, association, joint stock company, or corporation so offending, shall forfeit, for each offense, the sum of two hundred and fifty dollars, to be recovered in any court of competent jurisdiction. The party instituting an action for such forfeiture shall not be entitled to dismiss the same without consent of the court before which the suit has been instituted. Nor shall any judgment recovered be settled, sat- isfied, or discharged, save by order of such court, after full pay- ment into court, and all moneys so collected must be paid to the party bringing the suit. Enacted March 22, 1005; stats. 1005, p. 708. Note. — §375«. This is a codification of sections 1, 2, 3 and 1 of the statute of IS 87, page 110. Sale of process or renovated butter. § 383ff. Any person, firm, or corporation, who sells or offers for sale, or has in his or its possession for sale, any butter manufactured by boiling, melting, deodorizing, or renovating, which is the product of stale, rancid, or decomposed butter, or by any oilier process whereby stale, rancid, or decomposed butter is manufactured to resemble or appear like creamery or dairy butter, unless I he same is plainly stenciled or branded upon each and every package, barrel, firkin, tub, pail, square, or roll, in letters mil less than one half inch in length, "process butter," or "renovated butter," in such a manner as to advise the pur- chaser of the real character of such "process*' or "renovated" butter, is guilty of a misdemeanor. Enacted March 22, 1005 ; stats. 1905, p. 770. Note. — § 383«. The statute of 1899, page 25 (repealed 1905, page -170), is here re-enacted and coflified. Maintaining bridge or ferry without authority. §386. Every person who demands or receives compensation for the use of any bridge or ferry or sets up or keeps any road, I 1 v PENAL CODE. § 3S6 bridge, ferry, or constructed ford, for the purpose of receiving any remuneration for the use of the same, without authority of law, is guilty of a misdemeanor. Enacted February 14, 1872. Public ferries and toll-bridges: §2843 et seq., Pol. C. Violating condition of undertaking to keep ferry. $ 387. Every person who, having entered into an undertaking to keep and attend a ferry, violates the conditions of such under- taking, is guilty of a misdemeanor. Enacted February 14, 1872. Undertaking by ferryman : § 2S50, Fol. C. Riding or driving faster than a walk on toll-bridges. § 388. Every person who willfully rides or drives faster than a walk on or over any toll-bridge, lawfully licensed, is punishable by fine not exceeding twenty dollars. Enacted February 14, 1872. Crossing toll-bridges, etc., without paying toll. § 389. Every person not exempt from paying lolls, who crosses on any ferry or toll-bridge, or passes through any toll- gate, lawfully kept, without paying the toll therefor, and with intent to avoid such payment, is punishable by fine not exceeding twenty dollars. Enacted February 14, 1872. Unsafe scaffolding, ladders, etc. $ 402c Any person or corporation employing or directing another to do or perform any labor in the construction, altera- tion, repairing, painting or cleaning of any house, building or structure within this stale, who knowingly or negligently fur- nishes or erects or causes to be furnished or erected for the per- formance of such labor, unsafe or improper scaffolding, slings, hangers, blocks, pulleys, stays, braces, ladders, irons, ropes or other mechanical contrivances, or who hinders or obstructs any officer attempting to inspect the same under the provisions of section "twelve" of "an act to establish and support a bureau of labor statistics approved March 3, 1883, approved February 20, 1901" or who destroys, defaces, or removes any notice posted thereon by such officer, or permits the use thereof, after the same lias been declared unsafe by such officer, contrary to the provi- § 402c PENAL CODE. 419 sions of said section "twelve" of said act, shall be guilty of a misdemeanor. Amended March 13, 1909; stats. 1909, p. 337; in effect in sixty days. TITLE XI. Of Crimes Against the Public Peace. Sec. 421. National guard, discrimination against members of. National guard, dlscrmination against members of. § 421. No association or corporation shall by any constitu- tion, rule, by-law, resolution, vote or regulation, discriminate against any member of the National Guard of California because of his membership therein. Any person who willfully aids in enforcing any such constitution, rule, by-law, resolution, vote or regulation against any member of said National Guard of Cali- fornia, is guilty of a misdemeanor. Enacted March IS, 1905 ; stats. 1905, p. 190. TITLE XII. Of Crimes Against the Revenue and Property of This State. Sec. 434. Refusing to give names of persons employed, etc., to tax or license collector. 435. Carrying on business without license. 4 3!>. Effecting insurance on account of foreign companies that have not complied with the laws of this state. Refusing to give names of persons employed, etc., to tax or license collector. § 434. Every person who, when requested by the collector of taxes or licenses, refuses to give to such collector the name and residence of each man in his employment, or to give such col- lector access to the building or place whore such men are employed, is guilty of a misdemeanor. Enacted February 11. 1872. 420 PENAL CODE. § 435 Carrying on business without license. § 435. Every person who commences or carries on any busi- ness, trade, profession, or calling, for the transaction or carrying on of which a license is required by any law of this state, with- out taking out or procuring the license prescribed by such law, is guilty of a misdemeanor. Enacted February 14, 1872. 69 Cal. 608; 71 Cal. 468; 85 Cal. 210; 106 Cal. 404; 114 Cal. 282; 149 Cal. 768; 152 Cal. 703, 704; 5 Cal. App. 578, 579, 580, 581 ;. VIII Cal. App. Dec. 254. Effecting insurance on account of foreign companies that have not complied with the laws of this state. § 439. Every person who in this state procures, or agrees to procure, any insurance for a resident of this state, from any insurance company not incorporated under the laws of this state, unless such company or its agent has filed the bond required by the laws of this stale relating to insurance, is guilty of a mis- demeanor. Enacted February 14, 1872. Bonds from foreign corporations: See Pol, C. SS 596, 623, 624. TITLE XIII. Of Crimes Against Property. CHAPTER VI. EMBEZZLEMENT. Sec. 504. When officer, etc., guilty of embezzlement. 505. Carrier, when guilty of embezzlement. 506. When trustee, banker, etc., guilty of embezzlement. When officer, etc., guilty of embezzlement. § 504. Every officer of this state, or of any county, city, city and county, or other municipal corporation or subdivision thereof, and every deputy, clerk, or servant of any such officer, and every officer, director, trustee, clerk, servant, or agent of any associa- tion, society, or corporation (public or private), who fraudu- lently appropriates to any use or purpose not in the due and lawful execution of his trust, any property which he has in his possession or under his control by virtue of his trust, or secretes § 504 PENAL CODE. 421 it with a fraudulent intent to appropriate it to such use or pur- pose, is guilty of embezzlement. Amended April 6, 1880 ; amendts. 1S80, p. 8. G7 Cal. 274; 69 Cal. 237; S2 Cal. 580; 100 Cal. 312; 108 Cal. 541; 124 Cal. 453; 134 Cal. 303; 130 Cal. 451 ; 143 Cal. 07; 4 Cal. App. 22G. See, also, Constitution of California, art. XII, §3. Carrier, when guilty of embezzlement. § 505. Every carrier or other person having under his control personal property for the purpose of transportation for hire, who fraudulently appropriates it to any use or purpose, inconsistent with the safe-keeping of such property and its transportation according to his trust, is guilty of embezzlement, whether he has broken the package in which such property is contained, or has otherwise separated tlie items thereof, or not. Enacted February 14, 1872. When trustee, banker, etc., guilty of embezzlement. §506. Every trustee, banker, merchant, broker, attorney, agent, assignee in trust, executor, administrator, or collector, or person otherwise intrusted with or having in his control prop- erty for the use of any other person, who fraudulently appro- priates it to any use or purpose not in the due and lawful execution of his trust, or secretes it with a fraudulent intent to appropriate it to such use or purpose, and any contractor who appropriates money paid to him for any use or purpose, other Ilia n for that which he received it, is guilty of embezzlement. Amended March 22, 1007; stats. 1907, p. 892. 69 Cat. 237; 116 Cal. 390; 136 Cal. 443; 4 Cal. App. 125. CHAPTER VII. EXTORTION. Ski'. 525. Officers of railroad company making overcharges. Officers of railroad company making overcharges. § 525. Every officer, agent, or employee of a railroad com- pany, who asks or receives a greater sum than is allowed by law for the carriage of passengers or freight, is guilty of a misde- meanor. Enacted February 1 I, L872. I 15 Cal. 637. Kate of charges; Civ. C. § 489. 422 PENAL CODE. § 548 CHAPTER XI. FRAUDULENT DESTRUCTION OF PROPERTY INSURED. Sec. 54 S. Burning or destroying property insured. 549. Presenting false proofs upon policy of insurance. Burning or destroying property insured. § 548. Every person who willfully burns or in any other man- ner injures or destroys any property which is at the time insured against loss or damage by fire, or by any other casualty, with intent to defraud or prejudice the insurer, whether the same be the property of or in possession of such person, or of any other, is punishable by imprisonment in the state prison not less than one nor more than ten years. Enacted February 14, 1872. 120 Cal. 1G9, 687. Presenting false proofs upon policy of insurance. § 549, Every person who presents or causes to be presented any false or fraudulent claim, or any proof in support of any such claim, upon any contract of insurance for the payment of any loss, or who prepares, makes, or subscribes any account, certificate of survey, affidavit, or proof of loss, or other book, paper, or writing', with intent to present or use the same, or to allow it to be presented or used in support of any such claim, is punishable by imprisonment in the state prison not exceeding three years, or by fine not exceeding one thousand dollars, or by both. Enacted February 11, 1872. VI Cal. App. Dec. 760. CHAPTER XIII. FRAUDULENT INSOLVENCIES BY CORPORATIONS AND OTHER FRAUDS IN THEIR MANAGEMENT. Sec. 557. Frauds in subscriptions for stock of corporations. 558. Frauds in organization or increasing capital. 559. Unauthorized use of names in prospectus. 560. Misconduct of directors of stock corporations. 561. Officer of savings bank overdrawing account. 562. Receiving deposits in insolvent hanks. 563. Frauds in keeping accounts in books of corporations. § "m PENAL CODE. 423 Sec. 564. Officer of corporation publishing false reports. 5 65. Officer must permit inspection of books. 566. Contracting debt of railway. 567. Same. 568. Director presumed to know condition of corporation. 569. Director present at meeting, when presumed to assent. 570. Director when absent, when presumed to assent. 571. Foreign, doing business in this state. 572. Director defined. Frauds in subscriptions for stock of corporations. § 557. Every person who signs the name of a fictitious person to any subscription for or agreement to take stock in any cor- poration existing or proposed, and every person who signs to any subscription or agreement the name of any person, knowing that such person has not means or does not intend in good faith to comply with all the terms thereof, or under any understand- ing or agreement that the terms of such subscription or agree- ment are not to be complied with or enforced, is guilty of a misdemeanor. Enacted February 14, 1872. Subscription to articles of incorporation: Civ. C. £ 292. Subscription to capital stock, in certain cases: Civ. C. § - '■>•">. Oath to subscription, in certain cases : Civ. C. § 295. Frauds in organization or increasing capital. § 558. Every officer, agent, or clerk of any corporation, or of any persons proposing to organize a corporation, or to increase the capital stock of any corporation, who knowingly exhibits any false, forged, or altered book, paper, voucher, security, or other instrument of evidence, to any public officer or board authorized by law to examine the organization of such corporation, or to investigate its affairs, or to be allowed an increase of its capital, with intent to deceive such officer or board in respect thereto, is punishable by imprisonment in the state prison not less than three nor more than ten years. Enacted February 14, 1872. False certificates, report, or notice — civil liability of officers : civ. c. §316. Organization of corporations: Civ. C. S 283 ct .sr'>'■). See, also, Pen. C. §§ 559, 564. I -1 I PENAL CODE. § 559 Unauthorized use of names in prospectus. § 559. Every person who, without being authorized so to do, subscribes the name of another to or inserts the name of another in any prospectus, circular, or other advertisement or announce- ment of any corporation or joint stock association, existing or intended to be formed, with intenl to permit the same to be published, and thereby to lead persons to believe that the person whose name is so subscribed is an officer, agent, member, or promoter of such corporation or association, is guilty of a mis- demeanor. Enacted February 14, 1872. See, also, ••Fraudulent Reports," statutes al large, Appendix. Persons engaged in banking must show true name: Civ. C. § 582. See, also. Pen. < '. § 558. Misconduct of directors of stock corporations. § 560. Every director of any slock corporation who concurs in any vote or act of the directors of such corporation or any of them, by which it is intended, either — 1. To make any dividend, except from the surplus profits aris- ing from the business of the corporation, and in the cases and manner allowed by law ; or, 2. To divide, withdraw, or in any manner, except as provided by law, pay to the stockholders, or any of them, any part of the capital slock of the corporation; or, ::. To discount or receive any note or other evidence of debt in paymenl of any installment actually called in and required to oe paid, or with the intent to provide the means of making such paj menl ; or, I. To receive Or discount any note or other evidence of debt, with the intenl to enable any stockholder to withdraw any part of the to y paid in by him, or his stock ; or, 5. To receive from any other stock corporation, in exchange for the shares, notes, bonds, or other evidences of debt of their own corporation, shares of the capital stock of such other cor- poration, or nods, bonds, or other evidences of debt issued by such other corporation ; — is guilty of a misdemeanor. Enacted February 1 I. L872. 72 Cal. 5G; 116 Cal. 115. § 560 PENAL CODE. 425 Dividends to be made from surplus profits : Civ. C. § 300. Bank officer advertising or making- statement of capital stock without showing amount paid up: Civ. < '. $ 583a. Bank officers making illegal loans or investments: Civ. C. § 581. Officer of savings bank overdrawing account. §561. Every officer, agent, teller, or clerk of any savings bank, who knowingly overdraws his account with such bank, and thereby wrongfully obtains tin' money, note, or funds of such bank, is guilty of a misdemeanor. Enacted February 14, 1872. Receiving deposits in insolvent banks. § 562. Every officer, agent, teller, or clerk of any bank, and every individual banker, or agent, teller, or clerk of any indi- vidual banker, who receives any deposits, knowing that such bank, or associalion. or banker is insolvent, is guilty of a mis- demeanor. Enacted February 14. 1^72. Frauds in keeping accounts in books of corporations. § 563. Every director, officer, or agent of any corporation or joint stock association, who knowingly receives or possesses him- self of any property of such corporation or association, otherwise than in payment of a jus! demand, and who, with intent to defraud, omits to make, or to cause or direct to be made, a full and true entry thereof in the books or accounts of such corpora- tion or association, and every director, officer, agent, or member of any corporation or joint stock association who, with intent to defraud, destroys, alters, mutilates, or falsifies any of the books, papers, writings, or securities belonging to such corpora- lion or association, or makes, or concurs in making, any false entries, or omits, or concurs in omitting to make any material entry in any book of accounts, or other record or document kept by such corporation or association, is punishable by imprisonment in the state prison not less than three nor more than ten years, or by imprisonment in a county jail not exceeding one year, and a fine not exceeding five hundred dollars, or by both such fine and imprisonment. Enacted February 14, 1S72. 53 Cal. 01.1; 10.°, Cal. 202: VIII Cal. App. Dec. r,22. See, also, Pen. C. § 558. 420 PENAL CODE. § 564 Officer of corporation publishing false reports. § 564. Every director, officer, or agent of any corporation or joint stock association, who knowingly concurs in making, pub- lishing, or posting either generally or privately to the stock- holders or other persons, any written report, exhibit, or state- ment of its affairs or pecuniary condition, or book or notice containing any material statement which is false, or any untrue or willfully or fraudulently exaggerated report, prospectus, account, statement of operations, values, business, profits, expenditures, or prospects, or any other paper or document intended to produce or give, or having a tendency to produce or give, the shares of stock in such corporation a greater value or a less apparent or market value than they really possess, or refuses to make any book or post any notice required by law, in the manner required by law, is guilty of a felony. Amended March 21, 1905 ; stats. 1905. p. G83. 53 Cal. 648. Note. — § 564. The amendment incorporates in the section such provisions of the statute of 1S77-8, page 695, as are not already sufficiently expressed therein. The .statute, however, is limited to corporations whose stock is listed on the stock board or exchange. The amendment omits this limitation, for the reason that its constitutionality is doubtful. See, also, Appendix, heading "Fraudulent Reports." See, also, Pen. C. § 558, and Civ. C. §31(1 Officer must permit inspection of books. § 565. Every officer or agent of any corporation, having or keeping an office within this state, who has in his custody or control any book, paper, or document of such corporation, and who refuses to give to a stockholder or member of such corpora- tion, lawfully demanding, during office hours, to inspect or take a copy of the same, or of any part thereof, a reasonable oppor- tunity so to do, is guilty of a misdemeanor. Enacted February 14, 1872. Records of corporation : Civ. C. §§ 377, 37S, 3S2, 383. Contracting debt of railway. § 566. Every officer, agent, or stockholder of any railroad company, who knowingly assents to, or has any agency in con- tracting any debt by or on behalf of such company, unauthorized by a special law for the purpose, the amount of which debt, with other debts of the company, exceeds its available means for the § 566 PENAL CODE. 427 payment of its debts, in its possession, under its control, and belonging to it at tbe time such debt is contracted, including its bona fide and available stock subscriptions, and exclusive of its real estate, is guilty of a misdemeanor. Enacted February 14, 1872. See. also, Civ. O. §§309, 456, tr>7. Same. § 567. The last section does not affect the validity of a debt created in violation of its provisions, as against the company. Enacted February 14, 1S72. Directors presumed to know condition of corporation. § 568. Every director of a corporation or joint stock associa- tion is deemed to possess such a knowledge of the affairs of his corporation as to enable him to determine whether any act, pro- ceeding, or omission of its directors is a violation of this chapter. Enacted February 14, 1872. Director present at meeting, when presumed to assent. § 569. Every director of a corporation or joint stock associa- tion, who is present at a meeting of the directors at which any act, proceeding, or omission of such directors, in violation of this chapter, occurs, is deemed to have concurred therein, unless he at the time causes, or in writing requires, his dissent therefrom to be entered in the minutes of the directors. Enacted February 14, 1S72. See. also, Civ. C, §§ 309, 377. Director when absent, when presumed to assent. § 570. Every director of a corporation or joint stock associa- tion, although not present at a meeting of the directors at which any act, proceeding, or omission of such directors, in violation of this chapter, occurs, is deemed to have concurred therein, if the facts constituting such violation appear on the records or minutes of the proceedings of the board of directors, and he remains a director of the same company for six months there- after, and does not within that time cause, or in writing require, his dissent from such illegality to be entered in the minutes of the directors. Enacted February 14, 1872. 428 PENAL CODE. § 571 Foreign, doing business in this state. § 571. It is no defense to a prosecution for a violation of the provisions of this chapter, that the corporation was one created by the laws of another state, government, or country, if it was one carrying on business or keeping an office therefor within this state. Enacted February 14, 1872. Director defined. § 572. The term "director." as used in this chapter, embraces any of the persons having by law the direction or management of the affairs of a corporation, by whatever name such persons are described in its charter or known by law. Enacted February 14, 1872. TITLE XV. Miscellaneous Crimes. CHAPTER I. VIOLATION OF THE LAWS FOR THE PRESERVATION OF FISH AND GAME. Sec. 627«. Unlawful carrying of deer and other game. 627t». Limit as to shipment of certain game. 629. Screen over canal, ditch, mill race, etc. 631a. Penalty for violation. 637. Fishways. Fish commissioners to examine dams. 637«\ Transportation of nongame birds. 637e. Certificates giving right to take birds. Unlawful carrying of deer and other game. § 627a. Every railroad company, express company, trans- portation company, or other common carrier, its officers, agents, and servants, and every other person who transports, carries or takes out of this state, or who receives for the purpose of trans- porting from this state, any deer, deerskin, buck, doe or fawn, or any quail, partridge, pheasant, grouse, or sage hen or prairie chicken, dove, wild pigeon, or any wild duck, rail, snipe, ibis, curlew, plover, or other shore birds (Limicolae) except for the purpose of propagation or scientific purposes, under a permit, in writing, first obtained from the board of fish commissioners of § 627a penal code. 429 the State of California, or who transports, carries or takes from the state, or receives for the purpose of transportation from the state, the carcass of any such animal or any such bird, or any part of the carcass of any such animal or bird, is guilty of a misdemeanor. Amended March IS, 1905 ; stats. 1905, p. 257. Limit as to shipment of certain game. § 627&. Every common carrier which receives for shipment or transportation from, or which ships or transports for, any one person during any one calendar day more than twenty-five wild ducks, or black sea brant, or more than twenty quail, snipe, curlew, ibis, plover, rail, or other shore birds (Limicolae) , or more than twenty doves ; or which ships or transports, or any person offering for shipment or transportation any of the said birds, or any deer, or any deer meat, in any quantity, unless such birds, or deer, or deer meat are at all times in open view and tagged or labeled with the name and residence of the person by whom they are shipped ; or any person who shall at the time of such shipment or transportation fail to furnish to any such com- mon carrier a tag or label bearing his name, residence and the exact contents of the package offered for shipment or transporta- tion, is guilty of a misdemeanor ; provided, that nothing in this section contained shall be construed to permit any person to have in his possession any game or fish contrary to the provisions of l his chapter, nor to permit any common carrier to have in its pos- session more than the above specified number of said birds during any one calendar day, though lawfully received, except during the shipment or transportation thereof. Amended March 22, 1909 ; stats. 1909, p. 071 ; in effect iu sixty days. Screen over canal, ditch, mill-race, ett. S 629. Any person, company, or corporation, owning, in whole en- in part, or leasing, operating, or having in charge any mill- race, irrigating ditch, pipe, flume, or canal, taking or receiving its waters from any river, creek, stream, or lake in which fish have been placed, or may exist, shall put, or cause to be placed and maintained, over the inlet of such pipe, flume, ditch, canal, or mill-rare, a screen of such construction and fineness, strength, and qualify as shall prevent any such fish from entering such ditch, pipe, flume, canal, or mill-race, when required to do so 430 PENAL CODE. § 629 by the slate board of fish commissioners. Any person, company, or corporation violating any of the provisions of this section, or who shall neglect or refuse to put up or maintain such screen, shall be guilty of a misdemeanor, and, upon conviction thereof, shall be punished by a fine of not less than twenty dollars or imprisoned in Ihe county jail of the county in which the con- viction shall be had not less than ten days, or by both such fine and imprisonment; and all fines imposed and collected for viola- tion of any of the provisions of this section shall be paid into the state treasury to the credit of the "fish commission fund"; provided, that the continuance from day to day of the neglect or refusal, after notification in writing by the state board of fish commissioners, shall constitute a separate offense for each day. Amended March 18, 1905; stats. 1905, p. 187. 77 Cal. 32. Penalty for violation. S 631'/. Every person found guilty of a violation of any of the provisions of sections 626, 626ff. 6266, 626c, (>26d, 626f, 626ff, 020/t, 626i, 626i, 626A-, 626m, sections 627, 627a, 6276, and section 631, must be fined in a sum not less than twenty-five dol- lars nor more than five hundred dollars, or imprisonment in the county jail of the county in which the conviction shall be had, not less than twenty-five days nor more than one hundred and fifty days, or by both such fine and imprisonment. Amended March 18, 1905; stats. 1905, p. 258. Fisliways — Fish commissioners to examine dams. § 637. It shall be the duty of the state board of fish com- missioners to examine, from time to time, all dams and artificial obstructions in all rivers and streams in this state naturally fre- quented by salmon, shad, and other migratory fish; and if, in their opinion, there is not free passage for fish over or around any dam or artificial obstruction, to notify the owners or occupants thereof to provide the same, within a specified time, with a durable and efficient fishway, of such form and capacity, and in such location as shall be determined by the fish commissioners, or persous authorized by them, and such fishway must be com- pleted by the owners or occupants of such dam or artificial obstruction to the satisfaction of said commissioners, within the lime specified; and it shall be incumbent upon the owners or occupants of all dams or artificial obstructions, where the state § 637 PENAL CODE. 431 board of fish commissioners require such fishways to be pro- vided, to keep the same in repair and open and free from obstruc- tions to the passage of fish at all times; and no person shall willfully destroy, injure, or obstruct any such fishway, or at any time take or catch any salmon, shad, or other migratory fish or trout, except by hook and line within three hundred feet of any fishway required by the state board of fish commissioners to be provided and kept open, or at any time take or catch any such fish in any manner within fifty feet of such fishway ; and every person violating any of the provisions of this act is guilty of a misdemeanor, and every person found guilty of a violation of any of the provisions of this act must be fined in a sum not less than one hundred dollars, or imprisonment in the county jail of the county in which the conviction shall be had not less than fifty days, or by both such fine and imprisonment; and all fines imposed and collected for any violations of the provisions of this act shall be paid into the state treasury to the credit of the "fish commission fund." Amended February 12, 1903 ; stats. 1903, p. 25. 135 Cal. 470. Transportation of nongame birds. § 637d. Every person or corporation acting as a common car- rier, its officers, agents or servants, who shall ship, carry, take or transport whether within or beyond the confines of the state any resident or migratory nongame bird, except as permitted by tins code, shall be guilty of a misdemeanor. New section; added April 16, 1909; slats. 1909, p. 930; in effect in sixty days. Certificates giving right to take birds. § 637c Sections 037r/. 037c, and 637. — . "A. B." If it appears that the offense complained of has been com- mitted by a corporation, no warrant of arrest need issue, but the justice of the peace or police judge must issue a summons substantially in the form prescribed in section thirteen hundred and ninety-one. Such summons must be served at the time and in the manner designated in section thirteen hundred and ninety-two. At the time named in the summons the corpora- lion may appear by counsel and answer the complaint. If it does not appear, a plea of not guilty must be entered, and the same proceedings had therein as in other cases. Amended March 21, 1905; stats. 1905. p! 700. 60 Cal. 105 ; 4 Cal. App. 722 ; 7 Cal. App. 767. Note. — § 1427. The changes consist in the matter providing a mode for compelling a corporation to appear in response to a complaint accusing it of a misdemeanor. APPENDIX. STATUTES AT LARGE. LEGISLATION PRIOR TO THE CODES. FORMS AND PRECEDENTS. FEDERAL CORPORATION TAX LAW. ADVERTISEMENTS. See Fraudulent Reports. AGRICULTURAL ASSOCIATIONS. An act entitled an act to form agricultural districts, to provide for formation of agricultural associations therein, and for the management and control of the same by the state, and to repeal all acts and parts of acts in conflict with this act. Approved March 31, 1897; stats. 1897. p. 304. Amended March 15, 1901; slats. 1901, p. 304. Amended April 19, 1909; stats. 1909, p. 994. The people of the State of California, represented in senate and assembly, do enact as follows: .Sec. 1. Agricultural districts defined. 2. Representation where two or more counties form one district. 3. Formation of association. I. Officers of association. 5. Appointments by governor. 6. Organization of board of directors. 7. Terms of office. 8. Status as state institution. 9. Reports to governor and state board of agriculture. 10. Sale of real estate. 11. Election for issuance of capital stock as a corporation. 12. Repeal of conflicting acts. 13. Time act shall take effect. Agricultural districts defined. Section 1. The several counties of this state are divided and classified into agricultural districts and numbered as follows lo wit : The counties of San Francisco and Alameda shall constitute agricultural districl No. I. The county of San Joaquin shall constitute agricultural dis- trict No. 2. 440 STATUTES AT LARGE. The county of Butte shall constitute agricultural district No. 3. The counties of Sonoma and Marin shall constitute agricul- tural district No. 4. The counties of San Mateo and Santa Clara shall constitute agricultural district No. 5. The county of Los Angeles shall constitute agricultural dis- trict No. 6. The county of Monterey shall constitute agricultural district No. 7. The county of El Dorado shall constitute agricultural district No. S. The county of Humboldt shall constitute agricultural district No. 0. The county of Siskiyou shall constitute agricultural districl No. 10. The counties of Plumas and Sierra shall constitute agricultural district No. 11 ; provided, that the first fair held in the eleventh agricultural district after the passage of this act shall be held in Sierra county : the next fair in Plumas county, and thereafter said counties shall so alternate in holding such fairs. The county of Lake shall constitute agricultural district No. 12. The counties of Sutter and £uba shall constitute agricultural district No. 13. The county of Santa Cruz shall constitute agricultural dis- trict No. 11. The county of Kern shall constitute agricultural district No. 15. The county of San Luis Obispo shall constitute agricultural district No. 16. The county of Nevada shall constitute agricultural district No. 17. The counties of Mono. Inyo, and Alpine shall constitute agri- cultural district No. IS. All that portion of Santa Barbara county lying east of the Gaviota and south of the Santa Ynez mountains, shall constitute agricultural district No. I!>. The county of Placer shall constitute agricultural districl No. 20. The counties of Fresno and Madera shall constitute agricul- tural district No. 21. The county of San Diego shall constitute agricultural district No. 22. AGRICULTURAL ASSOCIATIONS. 441 The county of Contra <'<>sla shall constitute agricultural dis- trict No. 23. The counties of Tulare and Kings shall constitute agricultural district No. 24. The county of Napa shall constitute agricultural district No. 25. The county of Amador shall constitute agricultural district No. 26. The counties of Shasta and Trinity shall constitute agricul- tural district No. 27. The counties of San Bernardino and Riverside shall constitute agricultural district No. 28. The county of Tuolumne shall constitute agricultural district Xo. 29. The county of Tehama shall constitute agricultural district No. 30. The county <>l' Ventura shall constitute agricultural district No. 31. The county of Orange shall constitute agricultural district Xo. 32. The county of San Benito shall constitute agricultural district No. 33. The county of Modoc shall constitute agricultural district No. 34. The counties of Merced and Mariposa shall constitute agricul- tural district Xo. 35. The county of Solano shall constitute agricultural district Xo. 36. All that portion of Santa Barbara county not included in agricultural district No. 19 shall constitute agricultural district No. 37. The counts- of Stanislaus shall constitute agricultural districi No. 38. The county of Calaveras shall constitute agricultural district Xo. 39. The counties of Yolo and Sacramento shall constitute agricul- tural district No. 40. The county of Del Norte shall constitute agricultural district No. 41. The county of Glenn shall constitute agricultural district No. 42. The county of Lassen shall constitute agricultural district No. 43. 442 STATUTES AT LABGE. The county of Colusa shall constitute agricultural district No. 44. The county ol* Mendocino shall constitute agricultural district No. 45. The county of Imperial shall constitute agricultural district No. 4< - .. [Sec. 1 amended April U>, L909; stats. L909, p. 994; in effect immediately.] Representation where two or more counties form one district. Sec. 2. Where two or more counties shall constitute an agri- cultural district, each county shall be represented in the district board of directors by at least two resident citizens, as directors in said board ; provided, that when by reason of the formation of a new agricultural district, a director of one district becomes a resident of another, his term of office as director will expire in sixty days after the formation of the new agricultural district. Whenever the board of directors of two or more agricultural dis- tricts shall, by a majority vote of each board, elect to unite, the said several districts may associate as one district, and hold a fair in any of said districts, and may for such purpose draw the appropriation for all of said districts, and expend the same for said fair. . Formation of association. Sec. 3. Any fifty or more persons, representing a majority of the counties within any one of the districts above constituted, may form an association, for the improvement of the material industries within such district, and when so formed, the associa- tion shall be known and designated by the name of agricultural association, and by such name and style shall have perpetual succession, and shall have power and authority to contract and be contracted with, to sue and be sued, to have and use a common seal, to purchase and hold and lease real estate, with such buildings and improvements as may be erected thereon, and may sell and lease and dispose of the same at pleasure. The said real estate, except as hereinafter provided, shall be used by such association for the purpose of holding exhibitions of horses, cattle, and other stock, and of the agri- cultural, horticultural, viticultural, mechanical, manufacturing, and domestic products of such district, with a view to the improvement of all industries in the same. But the said asso- ciation shall have the power, and are hereby authorized, to sell AGRICULTURAL ASSOCIATIONS. 443 and convey any portion of the real estate held by it, by whatever title derived, which may not be necessary for the permanent use of said association for the purposes aforesaid. Officers of association. Sec. 4. The officers of such association shall consist of eight directors, who shall constitute a district board of agriculture for district No. ; a president, who shall be one of their number, and a secretary and treasurer, not of their number. Appointments by governor. Sec. 5. Within ten days after the formation of any new agricultural association within any of the districts above consti- tuted in accordance with the provisions of this act. and notice of such formation to the governor, the governor shall appoint eight resident citizens of such district as members of a district board of agriculture for said district, whose term of office shall be four years, except as hereinafter provided. Organization of board of directors. Sec. b'. Within ten days after their appointment, the per- sons so appointed shall qualify as required by the constitution, and shall meet at a place within the district and organize by the election of one of their number as president of the board and association, who shall hold said office of president one year, and until his successor is elected ; they shall also elect a secretary and treasurer. Terms of office. Sec. 7. At the same meeting the members of the board shall. by lot or otherwise, classify themselves into four classes of two members each. The term of office of the first class shall expire at the end of the first fiscal year ; of the second class, of the second fiscal year; of the third class, of the third fiscal year; and of the fourth class, at the end of the full term of four years. The fiscal year shall be from December first to December first; provided, that all officers of agricultural districts now in office, under any law heretofore passed, shall hold office for the term for which they were appointed, except in cases specified in sec- tion two of this act. And the agricultural associations hereto- fore established shall be continued in force, and, so far as appli- cable, are made agricultural associations under this act. 144 STATUTES AT LARGE. Status as state institution. Sec. 8. Each association so formed and organized is hereby declared, and shall be recognized, a state institution, and the board so appointed and qualified shall have the exclusive control and management of such institution, for and in the name of the state, and shall have possession and care of all the property of the association, and shall fix the terms of office and the bonds of the secretary and treasurer, and determine their salaries and duties. They shall have the power to make all necessary by-laws, rules, and regulations for the government of the association and the management of its prudential and financial affairs. They shall provide for an annual fair or exhibition by the association of all the industries and industrial products in the district, at such time and place as they deem advisable ; provided, that the state shall, iu no event, be liable for any premium offered or award made, or for any debt contracted by any district board of agriculture, or agricultural association ; and provided further, that nothing in this section shall be so construed as in any way to affect or modify any of the provisions of section eleven. Reports to governor and state board of agriculture. Sec. 9. When any district board of agriculture shall have been classified and organized as herein provided, the secretary of the board shall report such classification and organization to the state board of agriculture. lie shall also report the same to tlie governor, and shall report any vacancy that may occur in the board to the governor, who shall fill the same, by appoint- ment, for the unexpired term. It shall be the duty of each district association formed under this act, to report to the state board of agriculture, on or before January first of each year, a detailed financial statement, together with a complete statistical review of the agricultural resources of each county in the district, for the year ending December thirty-first. Said review to contain the acreage and yjeld of all agricultural productions for the year previous, and such other data as may be asked for by the state board of agriculture in the furtherance of its duties. Sale of real estate. Sec. 10. Whenever any such association shall desire to sell any portion of its real estate not needed for the permanent use of the association, for the purposes specified in section three. AGRICULTURAL ASSOCIATIONS. 445 and such real estate be held by such association under a deed or deeds of trust conveying the said lands in trust, to be held in perpetuity as a place, for holding agricultural exhibitions or fairs, or for other permanent purposes of such association, it shall be lawful for such association to file its complaint in the superior court of the county in which such lands are situated, setting forth the nature of the title under which they are held, and that it is the desire of the said association to sell and dispose of such real estate, and praying for judgment authorizing it to sell and convey the same. In such action the trustee or trustees in such deed or deeds, or the survivor or survivors of them, or the heirs, or administrators, or executors of deceased trustees, as the case may require, shall be made parties defendant : and upon service of the summons upon such defendants, personally or by publication, or upon their appearance, the court shall have full jurisdiction in the premises, and the deed executed under and in pursuance of the judgment of the court shall be valid and effectual to convey to the purchaser the title of said association, and thai of all of its predecessors in title made parties to (he suit. Election for issuance of capital stock as a corporation. Sec. 11. Every such association organized and existing under the laws of the state, and which has heretofore issued certifi- cates of the capital stock of such association, and which cer- tificates last mentioned have been accepted by the members of such association in lieu of certificates of membership therein, may elect to have a capital stock, and may issue certificates of stock therefor, in the same manner and with like effect as cor- porations formed under the provisions of chapter one, article one, of the Civil Code, relating to the formation of corporations. In order to effect such change, a meeting of the holders of such alleged certificates of capital stock may be called, at which the holders of such alleged stock shall be entitled to one vote for each share of such stock appearing in their names, respectively, upon the books of such association. Upon the receipt of a written application, signed by the holders of one fourth of the shares of such alleged capital stock of such association, request- ing him so to do, the secretary of such association shall give notice of the time and place of holding such meeting, by publi- cation in some aewspaper printed and published in such county. or city and county, in which the principal place of business of 446 STATUTES AT LARGE. such association is located, al least once a week for three suc- cessive weeks next prior to the holding thereof. Such notice shall state thai the object of the meeting is. (1) to determine whether such corporation elects to have a capital stock as pro- vided by this act; (2) the amount of such capital stock, and (3) the number of shares into which the same shall he divided. At such meeting, should the holders of a majority of the shares of such alleged capital slock vote in favor of having- a capital stock, and fix the amount i hereof, and the number of shares into which it shall be divided, then such corporation shall issue cer- tificates of capital stock to the amount fixed at such meeting, divided into the number of shares provided by said meeting, to the holders of such alleged capital stock, in the same proportion as such alleged stock appears in the names of such holders, respectively, upon the books of such association. A copy of the notice calling such meeting, the affidavit of publication thereof, the proceedings of such meeting, the amount of capital stock voted, number of shares into which (he capital stock was divided, and to whom assigned, duly certified by the chairman of such meeting, and the secretary of such association, under the seal thereof, must he filed with the secretary of state and the clerk of the county where such association has its principal place of business. Thereafter such association shall he possessed of all rights and powers, and shall be subject to all the obligations and restrictions, as if it had been originally created a corporation with a capital stock, including the right to elect a board of directors authorized to exercise such control of all the property of such association, as provided in chapters one, two, three, and four of the Civil Code, relating to corporations; provided, such association shall have no authority to sell any portion of the real estate owned and held by it, by whatever title derived, which may be necessary for the permanent use of such association, for the purposes aforesaid ; and provided further, that in the event that such association, after the issuance of a capital stock as aforesaid, shall be offered aid at any time from the state by appropriation, for the purpose of holding an annual district fair, and such association, by i vote of the board of directors, elected as hereinafter provided, adopts a resolution accepting such appro- priation, then and in that event said annual fair shall be held under the control and management of the district board of agri- culture of such district; but said district board of agriculture shall have no other authority, control, or management of or over AGRICULTURAL ASSOCIATIONS. HI the properly of such association, and the authority which it may exercise over said property shall continue only during the time occupied in holding the said district fair, which time shall not extend over more than one week annually. When any corporation has elected to issue capital stock under this act, the president thereof shall, within ten days after filing with the secretary of state of the certificate hereinbefore pro- vided, call a meeting of the stockholders of such corporation, for ttie purpose of electing a board of directors of such corporation, which board of directors shall hold their office until their suc- cessors are elected and qualified, and thereafter a board of directors of such corporation shall be elected annually, on the day of the month upon which the election of said first board of directors elected as aforesaid is held, unless a different day for holding such election is fixed by the board of directors of such corporation, by its by-laws, properly adopted. Repeal of conflicting acts. Sec. 12. All acts or parts of acts in conflict with this act are hereby repealed. Time act shali take effect. Sec. 13. This act shall take effect from and after its passage. 151 Cal. 804; XXXVI Cal. Dec. 112. I See. also, act of April 17, 1909, for formation of agricultural districts, etc.. post.) An act to form agricultural districts, to provide for the forma- tion, organization and powers, of agricultural associations therein and for the management and control of the same by the state, and repealing all acts and portions of acts in con- flict with this act. Approved April 17, 1909; stats. 1909, p. 979. The people of the State of California, represented in senate and assembly, do enact as follows: Agricultural districts, numbers of. Section 1. The several counties of this state are divided and classified into agricultural districts, and numbered as follows, to wit : The counties of San Francisco and Alameda shall constitute agricultural district No. 1. 448 STATUTES AT LARGE. The county of San Joaquin shall constitute agricultural dis- tricl No. 2. The county of Butte shall constitute agricultural districl No. 3. The counties of Sonoma and Marin shall constitute agricul- i ural district No. 4. The counties of San Mateo and Santa Clara shall constitute agricultural dist rid No. 5. The county of Los Angeles shall constitute agricultural dis- trict No. 6. The county of Monterey shall constitute agricultural district No. 7. The county of El Dorado shall constitute agricultural district No. S. The county of Humboldt shall constitute agricultural d'stricl No. 9. The county of Siskiyou shall constitute agricultural districl No. H). The counties of Plumas and Sierra shall constitute agricul- tural district No. 11; provided, that (he firsl fair held in the eleventh agricultural district after the passage of this act shall he held in Sierra county; the next fair in Plumas county, and thereafter said counties shall so alternate in holding such fairs. The counties of Lake and Mendocino shall constitute agricul- tural district No. 12. The counties of Sutter and Yuba shall constitute agricultural district No. 13. The county of Santa Cruz shall constitute agricultural dis- trict No. 14. The county of Kern shall constitute agricultural districl No. ir». The county of San Luis ( >bispo shall constitute agricultural district No. 16. The county of Nevada shall constitute agricultural district .No. 17. The counties of Mono. Inyo, and Alpine shall constitute agri- cultural district No. 18. All that portion of Santa Barbara county lying east of the (iaviota and south of the Santa Ynez mountains, shall constitute agricultural district No. !!>. The county of Placer shall constitute agricultural district No. 20. AGRICULTURAL ASSOCIATIONS. 449 The counties of Fresno and Madera shall constitute agricul- tural district No. 21. The county of San Diego shall constitute agricultural district No. 22. The county of Contra Costa shall constitute agricultural dis- trict No. 23. The counties of Tulare and Kings shall constitute agricultural district No. 24. The county of Napa shall constitute agricultural district No. 25. The county of Amador shall constitute agricultural district No. 26. The counties of Shasta and Trinity shall constitute agricul- tural district No. 27. The counties of San Bernardino and Riverside shall consti- tute agricultural district No. 28. The county of Tuolumne shall constitute agricultural district No. 29. The county of Tehama shall constitute agricultural district No. 30. The county of Ventura shall constitute agricultural dislrict No. 31. The county of Orange shall constitute agricultural distriel No. ::-j. The county of San Benito shall constitute agricultural district X,,. ::::. The county of Modoc shall constitute agricultural district No. :',4. The counties of Merced and Mariposa shall constitute agri- cultural district No. 35. The county of Solano shall constitute agricultural district No. 36. All that portion of Santa Barbara county not included in agricultural district No. 19 shall constitute agricultural district An. .'{7. The county of Stanislaus shall constitute agricultural district No. 38. The county of Calaveras shall constitute agricultural district No. :;'•». The county of Yolo shall constitute agricultural dislrict No. 10. The county of Del Norte shall constitute agricultural district No. 41. i nn STATUTES AT LARGE. The county of Glenn shall constitute agricultural district No. 42. The county of Lassen shall constitute agricultural district No. 43. The county of Colusa shall constitute agricultural district No. 44. The county of Imperial shall constitute agricultural district No. 45. Formation of associations. Sec. 2. Any fifty or more persons residents of a majority of the counties embraced within auy of the above districts may form an association for the purpose of holding fairs, exposi- tions and exhibitions of all of the industries and industrial enterprises, resources and products of every kind or nature of the state with a view of improving, exploiting, encouraging and stimulating the same. Officers. Sec. 3. The officers of such association shall consist of eight directors to be appointed by the governor of the State of Cali- fornia who shall constitute a district board of agriculture for said district ; provided, however, where two or more counties shall constitute an agricultural district, each county shall be represented in the district board of directors by at least two resident citizens, as directors in said board; provided, thai when by reason of the formation of a new agricultural district, a director of one district becomes a resident of another, his term of office as director will expire in sixty days after the formation of the new agricultural district. Appointment of directors. Sec. 4. After the formation of an agricultural association within any of the districts above constituted in accordance with the provisions of this act, and notice of such formation to the governor, the governor shall appoint eight resident citizens of such district as members of a district board of agriculture for said district whose term of office shall be four years, except as hereinafter provided; and thereafter there shall be two members <>f said board appointed in the same manner every year whose term of office shall continue four years, and until their suc- cessors are appointed and qualified. AGRICULTURAL ASSOCIATIONS. 451 Terms of office. Sec. 5. Within ten days after their appointment the mem- bers of the board shall, by lot or otherwise classify themselves into four classes of two members each. The term of office of the first class shall expire at the end of the first fiscal year, the second class at the end of the second fiscal year, the third class at the end of the third fiscal year and the fourth class at the end of the fourth fiscal year ; provided, that all officers of agri- cultural districts now in office, under any law heretofore passed, shall hold office for the term for which they were appointed, except in cases specified in section 3 of this act. And the agri- cultural associations heretofore established shall be continued in force, and are made agricultural associations under this act. Organization. Sec. 6. The fiscal year shall be from December 1st to Decem- ber 1st and the persons so appointed shall qualify as required by the constitution, and shall meet at a place within the district and organize by the election of one of their number as president of the board, who shall hold said office of president one year and until his successor is elected ; they shall also elect a secre- tary and treasurer not of their number. Name of association, and powers. Sec. 7. Each association so formed and organized is hereby declared and shall be recognized as a state institution, and shall be known and designated by the name of district agricultural association, and by such name and style shall have perpetual succession and shall have power to contract, to sue and to be sued, to have a seal, to pur- chase, to hold and lease real estate and personal property, and may sell, lease, beautify, improve and dispose of the same, and do any and all acts and things necessary to carry out the objects and purposes for which said associations are formed ; and the board so appointed and qualified shall have the exclusive control and management of such institution, for and in the name of the state, and shall have possession and care of all the property of the association and shall fix the term of office and the bonds of the secretary and treasurer and determine their salaries and duties. They shall have the power to make all necessary by- laws, rules and regulations for the government of the association and the management of its prudential and financial affairs. They may provide for a lair, exposition or exhibition by the 452 STATUTES AT LARGE. association of all industries and industrial products in the dis- trict or state, at such time and place as they deem advisable ; provided, that the state, shall in no event, be liable for any premium offered or award made, or on account of any premium offered or award made, or on account of any contract made by any district board of agi-iculture or agricultural association: provided, however, that any such agricultural association having a speedway or race course upon any lands owned by it, or under its control, shall maintain the same for the purpose of holding speed contests and training and speeding horses thereon. Advances from state association. Sec. S. Whenever such association shall have been formed within any of the districts provided for, and it is proposed to hold an agricultural fair in said district, the secretary of the board of directors of the district, shall notify the state board of agriculture of the said intention, and shall also forward to the board of agriculture a list of the articles upon which pre- miums are to be paid and the amount upon each item, and the said board shall have the power to advance to said association a sum not exceeding five thousand dollars ($5,000) to pay said premiums out of any money that may have been appropriated fee the said state agricultural society for that purpose, and which may at the time be available: provided. however, thai no oue district shall receive such aid for more than one fair in any one year. State aid. Sec. 9. The fairs or exhibitions to be given by the district agricultural association shall be held at such place or places within such districts, as the board of directors of the said dis- trict may select. But only one of such district fairs shall receive state aid in any district during any given year, and the money provided by the state as premium money shall be applied to exhibits at this one fair; provided, however, when- cver the board of directors of two or more agricultural districts shall, by a majority vote of each board, elect to unite, the sev- eral districts may associate and combine as one district, and hold a fair in any of said districts that may be agreed on by l lie boards of directors of said associations so combining, and may for such purpose draw the appropriation for all the said districts, and expend the same for said fair. AGRICULTURAL ASSOCIATIONS. 453 Reports to state association. Sec. 10. The directors of such agricultural district herein created shall each year make a full aud complete report of all transactions of the said association to the state board of agri- culture. Repeal of conflicting acts. Sec. 11. All acts or parts of acts in conflict with this act are hereby repealed. Time act shall take effect. Sec. 12. This act shall take effect immediately from and after its passage. (See. also, an act to form agricultural districts, etc., approved March 31. 1897. ante) An act authorizing district agricultural associations organized under the laws of the State of California, to lease lands owned, managed or controlled, in trust or otherwise, to municipal corporations, counties or cities and counties, in which such lands are situated, and repealing all acts and parts of acts in conflict herewith. Approved April 22. 1909; stats. 1909. p. 1082. The people of the State of California, represented in senate and assembly, do enact as follows: May lease lands not needed. Section 1. Any district agricultural associatiou organized, or hereafter organized under the laws of the State of California, is hereby authorized and empowered to lease lands owned, man- aged or controlled by said association, whether in trust or other- wise, not needed for the permanent use of said association, to any municipal corporation, county, or city and county, in which said lands are located, for a period not to exceed fifty years, for purposes not inconsistent with the objects and purposes for which said association is formed and for which said lands are held, owned, or controlled by it. Repeal of conflicting acts. Sec. 2. All acts and parts of acts in conflict with this act are hereby repealed. Time act shall take effect. Sec. 3. This act shall take effect immediately. 454 STATUTES AT LARGE. ANIMALS. An act for the more effectual prevention of cruelty to animals. Approved March 20, 1874 ; stats. 1873-4, p. 499. Amended and SS 20 to 22 added, 1901, p. 285; amended 1903, p. 69; 1905, p. 498 (date of act not mentioned in title). §§ 1 to 5 (as amended 1901, p. 285), 14 (as amended 1903, p. 69), and 15 superseded by Civ. C. §§ 607, 607«, 607/\ as adopted in 1905 ; § 6 of the act (as amended in 1901) superseded by Pen. C. § 597, as amended in 1905; §§ 7, 8, 9, 11, 12, and 13 (as amended in 1901, superseded by Pen. C. §§ 597« to 597/-', as adopted in 1905 ; S 10 (as amended in 1901) superseded by Pen. C. % 599a, as adopted in 1905; §§ 16, 17 superseded by Pen C. §§ 599b, 599c, as adopted in 1905; §§ 20, 21 (added 1901, p. 287) superseded by Pen. C. §§ 599d, 599e, as adopted in 1905 ; § 22 (added 1901, p. 287) superseded by Code Civ. Proc. § 1208, as adopted in 190">. An act to prevent the spread of contagious diseases among animals. Approved March 20, 1905; stats. 1905, p. 317. The people of the State of California, represented in senate and assembly, do enact as follows: Animals dead from contagious disease to be immediately buried or cremated. Section 1. Any person having the care, custody or control of any animal that dies from tuberculosis, glanders, farcy, Texas fever, or other infectious disease, shall immediately upon the death of such animal cremate or bury the same, or cause the same to be cremated or buried. Transportation by common carrier. Sec. 2. Any common carrier of persons or freight that shall transport any animal suffering with or that has died from the diseases, or any of them, mentioned in section 1 of this act a greater distance than is necessary to transport such animal to the nearest crematory, shall be deemed guilty of a misdemeanor. Not to be used for food. Sec. 3. No animal that has died of any of the diseases named in section one of this act, shall be sold, used or per- ANIMALS. 455 niitted to be used for the food of human beiugs or sold, used or permitted to be used for the food of any domestic animal or fowl. Penalty for violation. Sec. 4. Any person, firm or corporation that shall violate any of the provisions (if this act shall be deemed guilty of a misdemeanor, and upon a conviction thereof shall be punished by a fine of not less than $50 and not more than $500, or by imprisonment in the county jail for a term not exceeding 180 days, or by both such fine and imprisonment. Time act shall take effect. Sec. 5. This act shall take effect immediately. ANTI-TRUST. See Combinations. BANKS AND BANKING. See, also, Executors. An act providing for the dissolution and winding up of savings banks, trust companies, and banks of deposit, and providing for the disposition of all funds deposited therein and not claimed within five years after such banks have ceased to do business, or after the commencement of proceedings to dis- solve. Approved March 31, 1891; stats. 1891, p. 271. The people of the State of California, represented in senate and assembly, do enact as follows: Right to dissolve savings banks, etc. Section 1. That any savings bank, or trust company, or bank of deposit, heretofore created, or which may be hereafter created, shall have the right, on application of the stockholders or members to the superior court of the county wherein its prin- cipal place of business is situated, to dissolve said corporation in the manner provided for in title six, part three of the Code of Civil Procedure. 450 STATUTES AT LARGE. "Dissolved savings bank fund" created. Sec. 2. It is hereby made the duty of every person or cor- poration holding funds of any savings bank, or trust company, or bank of deposit, at the end of five years from and after such bank has ceased to receive deposits, or do business, to pay the same into the state treasury, which money shall be held in the slate treasury in a fund which is hereby designated as "the dissolved savings bank fund" ; and at the same time it shall be the duty of such person or corporation to furnish to the state controller a list of the names of all depositors to whom said moneys belong or to whom said bank owes the same. How drawn upon. Sec. 3. The money in said "the dissolved savings bank fund" may be drawn out on the warrants of the state controller, issued on proofs of ownership, approved and allowed by the state board of examiners. When same escheats. Sec. 4. All moneys paid into the said "the dissolved savings bank fund," uncalled for within five years after being paid in, shall escheat to the state, and thereafter only drawn out in such manner as now provided for by law for the estates of deceased persons escheated to this state. Attorney general empowered to bring actions — Expense of recovery. Sec. 5. That any person or corporation failing to comply with the provisions of this act shall be liable to the State of California for the amount of money so retained by them con- trary to the provisions of the first four sections of this act; and the attorney general of this state is hereby authorized, empowered, and directed to bring action, in the name of the people of the State of California, in such manner and upon the same terms as now provided for escheated estates, to recover judgment for said money, and when so recovered, to be paid into the state treasury and held subject to the provisions of this act ; provided, that said fund shall be liable for the expense of the recovery of the same, to be paid out upon demands audited by the state board of examiners. Investment of funds. Sec. 6. Whenever, and as often as there is in the state treasury to the credit of the said "the dissolved savings bank BANKS AM) BANKING. l-u fund" the sum of ten thousand dollars, the state board of examiners must invest the same in civil funded bonds of this state, or in bonds of the United States, or in bonds of the several counties of this state ; the investments to be made in such manner and upon such terms as the board shall deem for the best interests of the said "the dissolved savings bank fund" ; provided, that no bonds of any counties shall be purchased of which the debt, debts, or liabilities at the time exceed fifteen per cent of the assessed value of the taxable property of said county. Bonds purchased. Sec. 7. All bonds purchased by the board under the provi- sions of this act must be delivered to the state treasurer, who shall keep them as a portion of said "The dissolved savings bank fund," the' interest upon such bonds to be placed by him to the credit of said fund. To sell bonds to meet payments. Sec. 8. Whenever the moneys on hand in the state treasury to the credit of the said "the dissolved savings bank fund" is nor sufficient to pay the claims allowed by the state board of examiners against said fund, it shall be the duty of said board to sell such bonds belonging to said fund as I hey may deem proper, for the purpose of providing funds for the paymenl of such claims so allowed by them. Time act shall take effect. Sec. 0. This act shall take effect from and after its passage. An act to compel savings banks to publish a sworn statement of all unclaimed deposits. Approved March 23, 1893 ; stats. 1893, p. 183 ; repealed March 21, 1905; stats. 1905, p. 582; superseded by Civ. C. § 5S3b, as adopted in 1905. An act to compel all depositaries of money and commercial banks to publish a sworn statement of all unclaimed deposits. Approved February 25, 1897; stats. 1897, p. 27; repealed March 21, 1905 ; stats. 1905, p. 582 ; superseded by Civ. C. § 5S3&, as adopted in 1 905. 20— cl 4."VX STATUTES AT LARGE. An act creating a board of bank commissioners, and prescribing their duties and powers. Approved March 24, 1903, stats. 1903, p. 365; amended 1903. p. 304 ; 1907, p. 572. Superseded and repealed by "Bank Act" of 1909; stats. 1909, p. 87. (See page 465, this volume.) An act to authorize the deposit of state moneys in banks in this state, and to repeal all acts or parts of acts in conflict with this act. Approved February 2S, 1907; stats. 1907, p. 07. The people of the Slate of California, represented In senate ami assembly, do enact as follows: Deposit of state moneys in banks — Security — Interest — Amount to be deposited — Expense of transportation. Section 1. All moneys in the state treasury belonging to the state not immediately required to meet current expenditures may be deposited by the state treasurer to the credit of the state in such state or national bank or banks, in the state, as the treasurer, with the approval of the governor and state controller, shall select for the safe-keeping of such deposits, and any sum so deposited shall be deemed to be in the state treasury ; pro- vided, that the bank or banks in which such money is deposited shall furnish security as hereinafter provided; and provided further, that such depositary bank or banks be selected from those agreeing to pay the highest rate of interest, not less than t wo per cent per annum, for such deposits, as may be determined by bids to be submitted at such times and in such manner as the treasurer, with the approval of the governor and state controller, shall direct ; provided, that not more than one tenth of the aggre- gate amount of state moneys available for deposit and on deposit shall be deposited in any one bank ; and provided further, that such deposit shall not exceed twenty-five per cent of the paid-up capital, exclusive of reserve and surplus, of any depositary bank. Any and all bids may be rejected by the treasurer, with the approval of the governor and state controller, and new bids asked for. The expense of transportation of moneys to and from the state treasury to such depositaries shall be borne by such depositaries. Said deposits, with interest thereon, shall be subject to withdrawal at any time upon the demand of the BANKS AND BANKING. 4. r >!) state treasurer, or upon presentation of a certificate of deposit properly indorsed. Interest, when payable — School moneys. Sec. 2. The interest to be paid by any such depositary bank shall be on the average daily balances of the state moneys kept on deposit therewith, and shall be paid and credited to the state monthly on the first day of each and every month, and such interest shall accrue to the general fund of the state treasury ; provided, that if any moneys belonging to the state school fund or the state school land fund shall at any time be deposited under the provisions of this act, the interest received thereon shall be paid into the state school fund. Security of funds deposited. Sec 3. For the security of the funds deposited by the stale treasurer under the provisions of this act. there shall be deposited with the treasurer bonds of the United States, or of this state, or of any county, municipality or school district within this state, which bonds shall be approved by the governor, controller and treasurer, to an amount in value at least ten per cent in excess of the amount of the deposit with such bank or banks; and if in any case, or at any time, such bonds are not deemed satisfactory security to the governor, controller and treasurer, they may require such additional security as may be satisfactory to them. Said bonds or any part thereof may he withdrawn on the written consent of the governor, controller and treasurer; provided, that a sufficient amount of said bonds to secure said deposits shall always he kept in the treasury; and in the event that said bank or banks of deposit shall fail to pay such deposits or any part thereof on the demand of the state treasurer, or upon any presentation of a certificate of deposit properly indorsed, then it shall be the duty of the state treasurer to forthwith convert said bonds into money and to disburse the same according to law; provided, however, that he shall sell no bonds for less than their face value except at public sale after ten days' printed notice in some newspaper of general circulation published in the county where the sale is to take place. Provisions of contract — Treasurer's annual statement to banks. Sec. 4. The treasurer shall take from such depositary or depositaries a written contract, in duplicate, setting forth the conditions and terms upon which the funds of the state are 4C.II STATUTES AT LARGE. deposited therewith, one of which shall be filed with the con- troller. One provision of said contract shall be that each depositary shall at the end of each month render to the treas- urer a statement in duplicate showing the daily balances or amount of money of the slate held by it during the month and the' amount of the accrued interest thereon separately, one of which shall be filed by the treasurer with the controller. The treasurer shall annually on the first day of July furnish each depositary bank with a statement showing the amount and description of the bonds on deposit with him by such bank to secure state deposits. Indemnity bonds. Sec. 5. The treasurer, with the approval of the governor and controller, shall, if in his judgment it shall appear necessary for the security of the state, require said banks of deposit to give an indemnity bond, the sureties on which shall not be interested as stockholders in said hank or banks, to be approved by the governor, controller and treasurer, to secure the state against loss by any depreciation in value that may occur in such bonds held by him as security for the safe-keeping and prompt payment of the state moneys in such depositaries. Treasurer not responsible for deposits. Sec. G. The state treasurer shall not be responsible for any moneys deposited in a bank or in banks under the provisions of this act while the same remain there deposited with the consent of the governor and controller: but the treasurer shall he chargeable with the safe-keeping, management and disbursement of the bonds and certificates of deposit deposited with him as security for deposits of state moneys, and with the interest thereon, and the proceeds of any sale under the provisions of this act. Certificates of deposit — Warrants paid by certificates. SEC. 7. At the time of depositing state moneys in any bank designated as a depositary the treasurer shall take a certificate 3 No officer shall have on deposit at any one time more than ten per cent of the public moneys under his control and available for deposit in any bank while there are other qualified banks requesting- such deposits ; provided, that no treasurer of a county, or municipality, shall be required to deposit public moneys in any bank outside of the county owning the money or in which the municipality is situated. Receipts to be counted as cash. Sec. G. The receipt issued by any bank for deposits made (herein, together with the bonds held as security therefor, shall be held by the treasurer making the deposit and be recognized and counted as cash to the amount recited in the receipt by the officers required by law to count the same. Deposits subject to call. Sec. 7. Deposits, with interest thereon, shall be subjecl to withdrawal on demand of the treasurer making the same, or his successors in office, and any bank receiving the deposit of public moneys, may at any time return the same to the public officer making such deposit, together with interest to date of return, and it shall be the duty of the public officer upon receiv- ing the return of such deposit, to immediately return to such bank all bonds held as security for the deposit returned. When any officer withdraws his deposit he shall return, on demand of the bank, such bonds as were held as security for the deposit or portion thereof withdrawn. On failure of bank to repay, security to be sold. Sec. 8. Should any bank fail to pay any public moneys held on deposit as herein provided, the officer making such deposit may. after ten days' written notice to such bank, proceed to sell at public or private sale, such of the bonds held by him as security as he may see fit; provided, however, that he shall sell no bonds for less than their face value except at public sale a Tier ten days' printed notice in some newspaper of general cir- culation published in the county where the sale is to take place. The proceeds of such sale, after paying all expenses, shall be credited to the account of the bank which deposited the bonds as collateral. Any bank failing to make payment, may, at any lime before the sale of the bonds is completed, slop such sale by repaying all Ihe moneys depositee! with it, together with any 464 STATUTES AT LARGE. expense that may have been incurred by the officer making such deposit, as the result of such failure. Should the proceeds of any such sale fail to fully repay any deposit, the balance remaining unpaid may bo collected in an action of law in the name of the officer making the deposit. Public officials not responsible for loss. Sec. 9. Public officials shall not be responsible for any loss of public moneys resulting from the deposit thereof when made in accordance with the provisions of this act. It shall be the duty of the officer making the deposit to safely keep all evidence of indebtedness issued by banks for deposits made therein, and bonds deposited for security and such public officer shall be responsible for such evidence of indebtedness, and for bonds held as security therefor, together with the interest thereon and the proceeds of any sale of such bonds: and the city, county or municipality for which said officer acts, shall be responsible to such bank for the safe return of the securities furnished by it to such officer. Expense of transportation of moneys. Sec. 10. The expenses of transportation of moneys to or from the state, county or municipal treasuries to such depos- itaries shall be borne by such depositaries. Making of profit by officer or violation of act a felony. Sec. 11. The making of profit out of county, city, town or other public moneys, or using the same for any purpose not authorized by law by any officer having possession or control thereof, shall be a felony. Any violation of the provisions of this act by a bank or a banking corporation, shall be punishable by a fine not exceeding five hundred dollars for each offense, and the officers of such bank or banking corporation and officer receiving such deposit shall be guilty of a felony. Buying of bonds or other lawful investment not prohibited. Sec. 12. Nothing in this act contained shall prevent any county or municipality within this state from buying bonds or otherwise investing its money in any manner now provided by law and nothing herein contained as to the disposition of interest on public moneys deposited shall apply to any money received or held by any county or municipality wherein any law provides for the paynienl of interest or profil thereon, into any partic- ular fund. BANKS AND BANKING. 465 Repeal of conflicting acts. Sec. 13. All acls or parts <>f acts in conflict with this act are hereby repealed. Time act shall take effect. Sec. 14. This act shall lake effect immediately. (In Rotschild vs. Bantel, 152 Cal. 5, held that under section G, article XI, of the state Constitution, provisions of a freeholders' charter as to municipal affairs an- paramount to any law enacted by the state legislature, and that the legislature is with- out power to enact any law infringing thereon.) An act to define and regulate the business of banking. Approved March 1, L909; stats. 1909, p. S7 ; The people of the State ef California, represented in senate and assembly, da enact as follows: Art. I. General Provisions, SS 1-51. II. Savings Banks. SS 60-69. III. Commercial Banks, |§ 80-8:1. IV. Trust Companies, SS 90-106. V. State Ranking Department, SS 120-147.. Article I. General Provisions. Sec. 1. Title of act. 2. Definition of word "bank." 3. Corporations, how formed. 4. Savings bank, meaning of term. 5. Commercial bank. 6. Trust company. 7. Foreign corporations, requirements of. 8. Certificates to do business. 9. Branch offices. 10. Directors, who are eligible. 11. Director, oath required of. 12. Term "bank" must not be used, when. 1 :!. Unincorporated banks. 1 I. Advertising statements, to contain what. 15. Depositors known to be dead, statement of. It;. Deposits by married women or minors. Joint tenants. I>c-ee;ised dipnsitnl'S. who may collect for. 166 STATUTES AT LARUE. Sec. 17. Stockholders, Iisl of to be accessible. 18. Partnership, list of. 19. Capital ; deposit liabilities. 20. Lawful money reserve. 21. Dividends. Surplus fund. 22. Departmental banking. 23. Capital required. 2 1. Certificate for each departmenl required. 85. Department money reserve. Deposits, transfer of to other departments. 2C. Books of account to be kept separate. 27. Depositors, security for. 28. Window signs, must contain, what. 29. Non-stock corporations heretofore created. 30. Safe deposits. 31. Sale of assets. Agreemenl of sale and purchase, to contain what. 32. Trust funds. 33. Officers not to borrow funds. 34. Capital stock, purchase of. 35. Mortgages, restrictions on purchase of. 36. Bonds, purchase of. 37. Shares of corporations. 38. Penal liabilities of directors and employees. • 39. Same. •10. Stockholders' liability, waiver of. 41. Purchase of obligations. 42. Purchase of assets. 43. Deposits in other banks. 44. Loans on bank stock. 4 5. Interest unpaid. 4G. Loans on bonds. 47. Loans on realty. 48. National banks, examination of. 4 9. Savings banks, advertising as. 50. Posting of certificate. 51. 1 >eposits of order of court. Title of act. Section 1. This act shall be known as the "Bank Act," and shall be applicable to all corporations and individuals specified in the next section. Definition of word "bank.'' Sec. 2. The word "bank" as used in this act includes -every person, firm, company, eo-partnership or corporation which con- HANKS AND BANKING. 4G7 ducts the business of receiving' money on deposit. Banks are divided into the following classes : I a ). Havings hanks ; (6) Commercial hanks: and (c) Trust companies. Corporations, how formed. Sec. 3. Corporations may be formed under the laws of this state to conduct, as provided in this act, and not otherwise, any one or all of the businesses mentioned in divisions a, b, and c of section 2, of this act. Savings bank, meaning of term. Sec. 4. The term "savings bank," when used in this act, means a bank organized for the purpose of accumulating and loaning the funds of its members, stockholders, and depositors, and which may loan and invest the funds thereof, receive deposits of money ; loan, invest and collect the same with interest; and may repay depositors with or without interest, and having power to invest said funds in such property, securi- ties and obligations as may lie prescribed by this act; and to declare and pay dividends on its general deposits, and a stipu- lated rate of interest on deposits made for a stated period or upon special terms. Commercial bank. Sec. 5. The term •'commercial bank," when used in this act, means any bank authorized by law to receive deposits of money. deal in commercial paper or to make loans thereon, and to lend mgney on real or personal property, and to discount bills, notes, or other commercial paper, and to buy and sell securities, gold and silver bullion, or foreign coins or bills of exchange. Trust company. Sec. 6. The term "trust company," when used in this act, means any company which is incorporated for the purpose of conducting the business of acting as executor, administrator, guardian of estates, assignee, receiver, depositary, or trustee. Foreign corporations, requirements of. Sec. 7. No foreign corporation shall transact a banking business in this state without first complying with all the requirements of the laws of this state relative to banks as defined in this act, and without having the capital paid up in 4t;s Statutes at large. this stale as required by this act. And do such foreign cor- poration shall transact any banking business in this state until it has executed and filed with the superintendent of banks a writ- ten instrument appointing such superintendent, or his successor in office, its true and lawful attorney, upon whom all process in any action or proceeding by any resident of the state against it may be served, with the same effect as if such corporation was formed under the laws of this state and had been lawfully served with process therein. Service in favor of a resident of this state upon such attorney shall be deemed personal service on such corporation. The superintendent of banks shall forth- with forward by mail a copy of every process served upon him under the provisions of this section, postage prepaid, and directed to the secretary of such corporation, at its last known post office address. For each copy of process, the superintendent of banks shall collect the sum of two dollars, which shall be paid by the plaintiff or moving party at the time of such service, to be recovered by him as part of his taxable costs if he suc- ceed in the suit or proceeding. Certificates to do business. Sec. 8. Every corporation, at the time it applies for a cer- tificate to do a banking business, must file with the superin- tendent of banks a certified copy of its articles of incorporation, or of the statute chartering such corporation, also all instru- ments amending or altering such articles of incorporation or charter. Thereafter all amendments and certificates shall like- wise be so filed before such instruments take effect. In like manner all co-partnerships shall file certified copies of their articles of co-partnership and all amendments thereto. Branch offices. Sec. 9. No bank in this state, or any officer or director thereof, shall hereafter open or keep an office other than its principal place of business, without first having obtained the written approval of the superintendent of banks to the opening of such branch office, which written approval may be given or withheld in his discretion, and shall not be given by him until he has ascertained to his satisfaction that the public convenience and advantage will be promoted by the opening of such branch office; and provided, further, that no bank or any officer or director thereof, shall open or maintain such branch unless the HANKS AND BANKINC. 4(5!) capital of such bauk, actually paid in cash, shall exceed the amount required by this act by the sum of twenty-five thousand dollars for each branch office opened and maintained. Every bank, and every such officer or director violating the provisions of this section shall be guilty of a misdemeanor. Directors, who are eligible. Sec. 10. No person shall be eligible for election as a director of a bank unless he is a stockholder of the bank, owning, in his own right, shares thereof of the actual market value of at least five hundred dollars; and every person elected to be director who, after such election, shall cease to be the owner in his own right of the amount of stock aforesaid, shall then cease to be a director of the bank, and his office shall then become vacant. If a bank be organized without capital stock, no person shall be eligible as a director thereof unless he is both a member and a depositor of such bank. Director, oath required of. Sec. 11. Each director of a bank, when appointed or elected shall take an oath that he will so far as the duty devolves on him, diligently and honestly administer the affairs of such bank, and will not knowingly violate or willfully permit to be violated any of the provisions of law applicable to such bank, and that he is the owner in good faith and in his own right of the shares of stock of the actual market value required by section 10 of this act, subscribed by him or standing in his name on the books of the bank, and that the same is not hypothecated or in any way- pledged as security for any loan or debt ; and, in case of re-election or re-appointment, that such stock was not hypothe- cated or in any way pledged as security for any loan or debt during his previous term. Such oath -shall be subscribed by the director making it, and certified by the officer before whom it is taken ; and shall be immediately transmitted to the superin- tendent of banks, and filed and preserved in his office. Term "bank" must not be used, when. Sec. 12. No person, firm, company, co-partnership or cor- poration not subject to the supervision of the superintendent of banks, and not required to report to him by the provisions of this act, shall make use of any office sign, at the place where such business is transacted, having thereon any artificial or corporate name, or other words indicating that such place or office is the 470 STATUTES AT LARGE. place or office of a bank, or that deposits are received there or payments made on check, or any other form of banking business transacted, nor shall such person or persons, firm, company, co-partnership or corporation make use of or circulate any letter- heads, billheads, blank notes, blank receipts, certificates or cir- culars, or any written or printed, or partly written and partly printed, paper whatever, having thereon any artificial or cor- porate name or other word or words indicating that such busi- ness is the business of a bank, savings bank or trust company. Every person, firm, company, co-partnership or officer of a corporation violating the provisions of this section shall be guilty of a misdemeanor. Unincorporated banks. Sec. 13. Every person or number of persons, not being incorporated, engaged in the business of banking or publicly receiving money on deposits, must conduct such business under a name which shows the true name of all persons engaged therein, unless such person or persons have complied with the provisions of article 7, of chapter II, of title 10, of part IV of division 3 of the Civil Code. Advertising statements, to contain what. Sec. 14. No bank, or any officer thereof, shall advertise in any manner, or publish any statement of the capital authorized or subscribed, unless it or he advertise and publish, in connection therewith, the amount of capital actually paid up. Any bank, or any officer thereof, advertising in any manner, or publishing any statement of such capital, authorized or subscribed, without a statement in connection therewith of the capital actually paid up, shall be guilty of a misdemeanor. Depositors known to be dead, statement of. Sec. 15. The president or managing officer of every bank must, within fifteen days after the first day of January of every odd numbered year, return to the superintendent of banks a sworn statement showing the names of depositors known to be dead, or who have not made further deposits, or withdrawn any moneys during the preceding ten years. Such statements shall show the amount of the account, the depositor's last known place of residence or post office address, and the fact of death, if known to such president or managing officer. Such president or managing officer must give notice of these deposits in one or HANKS AM> BANKING. I i I more uewspapers published in or uearesl to the town or city whore such bank has its principal place of business, al leasl once a week for four consecutive weeks, the cost of such publi- cation to be paid pro rain out of such unclaimed deposits. This section docs uol apply to any deposit made by or in the name of :i person known to the president or managing officer to be living, or which, with the accumulation thereon, is less than fifty dollars. The superintendent of banks must incorporate in his subsequent report such returns made to him as provided in this section. Any president or managing officer of any bank who neglects or refuses to make the sworn statement required by this section shall be guilty of a misdemeanor. Deposits by married women or minors — Joint tenants — Deceased depositors, who may collect for. Skc. 16. When any deposit with a hank shall he made by or in the name of any married woman or minor, the same shall he held for the exclusive right and benefit of such depositor, and free from the control or lien of all other persons, excep"t creditors, and shall be paid, together with the dividends, if any, and interest, if any. thereon to the person in whose name deposits shall have been made, and the receipt or acquittance of such minor shall be a valid and sufficient release and discharge for such deposit, or any part thereof, to the hank. When any deposit with a hank shall be made by auy person in trust for another, and no other or further notice of the existence and terms of a legal and valid trust shall have been given in writing to such hank, in the event of the death of the trustee, the same or any part thereof, together with the dividends or interest, if any, thereon, may be paid to the person for whom the deposit was made. When a deposit with a bank shall be made by any person in the names of such depositor and another person or persons, and in form to be paid to either or the survivor or sur- vivors of them, such deposit thereupon, and any additions thereto made by either of such persons upon the making thereof, shall 1 ome l he property of such persons as joint tenants, and the same, together with all interest thereon, shall be held for the exclusive use of the persons so named, and may be paid to either during the lifetime of all or any or to the survivor or survivors after the death of one or more of them, and such payments and the receipt or acquittance of (he one to whom such payment is 17-! STATUTES AT LARGE. made shall he a valid and sufficienl release and discharge to said bank for all payments made on accounl of such deposit. The surviving husband or wife of any deceased person, or, if nn husband or wife is living, then the children of such decedent, and if no children are living, then the father or mother of such decedent, may, without procuring letters of administration, col- lect of any bank any sum which said deceased may have left on deposit in such bank at the time of his or her death; pro- vided, such deposit shall not exceed the sum of live hundred dol- lars. Any bank, upon receiving an affidavit stating that said depositor is dead, and that affiant is the surviving husband or wife, as the case may be, or stating that decedent left no husband or wife, and that affiant is, or affiants are, the children, or the father or mother, of said decedent, and that the whole amount that decedent left on deposit in any and all banks of deposit in this state does not exceed the sum of five hundred dollars, may pay to said affiant or affiants any deposit of said decedent, if the same does^ not exceed the sum of five hundred dollars, and the receipt of such affiant is sufficient acquittance therefor. Stockholders, list of to be accessible. Sec. 17. Every bank now in existence or hereafter organized shall keep in its offices, in a place accessible to the stockholders. depositors, and creditors thereof, and for their use, a book con taining a list of stockholders in such corporation, and the num- ber of shares of stock held by each; and every such bank shall keep posted in its office, in a conspicuous place, accessible to the public generally, a notice signed by the president or secretary, showing : 1. The names of (he directors of such bank. 2. The number and par value of the shares of stock held by each director. , The entries on such book and such notice shall be made and posted within twenty-four hours after any transfer of stock, and shall be prima facie evidence against each director ami stockholder of the number of shares of stock held by each. Partnership, list of. Sic. 18. Every co-partnership doing a banking business shall keep in its office, in a place accessible to the partners and depositors and the creditors thereof, a list of the partners and (he capital paid into the co-partnership of each partner. BANKS AND BANKING. 473 Capital; deposit liabilities. Sec. 19. The aggregate of paid-up capital, together with tin- surplus, of every bank, must equal ten per centum of its deposit liabilities; such deposit liabilities shall not be increased when such proportion of paid-up capital and surplus is wanting, and in no event shall said paid-up capital be less than the minimum paid-up capital provided by this act. And provided also, that no savings bank shall be required to have a paid-up capital and surplus of more than one million dollars, or if organized without a capital stock, a reserve fund of more than one million dollars. Lawful money reserve. Sec. 20. Every bank, other than a savings bank, shall at all times have on hand, in lawful money of the United States, gold and silver coin, gold certificates or silver certificates, an amount equal to fifteen per centum of the aggregate amount of its deposits, exclusive of state, county and municipal deposits. The amount thus to be kept on hand shall be called its lawful money reserve. Three fifths of such lawful money reserve of any bank, other than a savings bank may consist of moneys on deposit subject to call with any bank or banks other than a savings bank in this state; provided, that every bank receiving- deposits of other banks shall maintain as a lawful money reserve at least twenty per centum of the aggregate amount of its deposits, exclusive of state, county and municipal deposits. If the lawful money reserve of any bank shall be less than tin' amount required by this section, such bank shall not increase its liability by making any new loans or discounts, otherwise than by discounting bills of exchange payable on sight, or mak- ing any dividends from profits until the full amount of its law- ful money reserve has been restored. The superintendent of banks may notify any bank, whose lawful money reserve shall be below the amount herein required, to make good such reserve ; and, if it shall fail for thirty days thereafter to make good such reserve, such bank shall be deemed insolvent and may be pro- ceeded against under the provisions of this act. Dividends — Surplus fund. Sec. 21. The directors of banks having a capital stock may, at such times and in such manner as the by-laws prescribe, declare and pay dividends to depositors and stockholders of so much of the profits of the bank, and of the interest arising from tin' capital and deposits, as may be appropriated for that 474 STATUTES AT LARGE. purpose under the by-laws or under their agreements with depositors, but every such bank shall, before the declaration of such dividend, carry at least one tenth (1-10) part of the net profits of the stockholders for the preceding half year to its surplus or reserve fund until the same shall amount to twenty- five per centum of its paid-up capital stock. But the whole or any part of such surplus or reserve fund, if held as the exclu- sive properly of stockholders, may at any time be converted into paid-up capital stock, in which event such surplus or reserve fund shall be restored in manner as above provided until il amounts to twenty-five per centum of the aggregate paid-up capital stock. A larger surplus or reserve fund may be created, and nothing herein contained shall be construed as prohibitory i hereof. The capital and the assets of the bank are a security in depositors and stockholders, depositors having the priority of security over the stockholders, but the by-laws may provide lhat the same security shall extend to deposits made by stock- holders. Departmental banking. Sec. 22. Any corporation authorized by its articles of incor- poration so to do, may combine the business of a commercial bank and savings bank and trust company, or any or all of them. Capital required. Sec. 23. Every bank doing a departmental business, shall have paid up in cash a capital stock of not less than twenty-five thousand dollars if it transacts both a commercial and savings business; and paid up in cash a capital stock of not less than two hundred twenty-five thousand dollars if it transacts both a commercial and trust business ; and paid up in cash a capital stock of not less than two hundred twenty-five thousand dollars if it transact both a savings and trust business ; and paid up in cash a capital stock of not less than two hundred twenty- five thousand dollars if it transacts a commercial, savings and trust business. Such capital stock shall be increased from time to time in the same manner and to the same extent as provided for in section nineteen of this act. Certificate for each department required. Sec. 24. Every bank, before it commences to do business or before it opens a new department and commences to transact business in or under such new department, shall obtain the BANKS AND BANKING. 4(i> certificate of the superintendent of banks for the opening of each of the departments specified. Each certificate herein provided for shall be given when the superintendent shall, by the exam- ination required by this act, have satisfied himself that the proper amount of cash has been paid in as capital and the pro- visions of this act complied with. The applicant shall pay for such certificate a fee of fifty dollars. Department money reserve — Deposits, transfer of to other departments. Sec. 25. Every bank shall maintain for each department a lawful money reserve equal in amount to that required by this act for the respective business conducted, and shall keep sepa- rate and distinct the lawful money reserve of any department from that of any other department; and all deposits made with other banks, whether temporary or otherwise, shall be assets of the respective departments by which they were made, and shall be so carried on the books of such other banks, and shall be repaid only upon the order of the department to whose credit they stand. No department shall receive deposits of any other department of the same corporation ; provided, however, that any bank hav- ing departments shall have the right to sell and transfer any bonds, securities or loans from one department to another upon receipt of the actual value thereof, if such bonds, securities or loans are a legal investment for the department purchasing the same under the provisions of this act. Books of account to be kept separate. Sec. 26. Every bank having different departments shall keep separate books of account for each department of its business, and shall be governed as to all deposits, reserves, investments and transactions relating to each department by the provisions in this act specifically provided for the respective kind of busi- ness. It shall keep all investments relating to the savings depart- ment entirely separate and apart from the investments of its other department or departments. Every bank shall conduct the business of all its departments in one building, or in adjoining buildings, and shall keep entirely separate and apart in each department the cash, securities and property belonging to such department, and shall nol mingle the cash, securities and property of one department with that of another. 4TC> STATUTES AT LARGE. Depositors, security for. Sec. 27. All money belonging- to each department, whether cash on hand or with other banks, and the investments made, shall be held solely for the repayment of the depositors in said department, until all depositors of such department shall have been paid, and the overplus then remaining shall be applied to the other liabilities of such bank. Window signs, must contain, what. Sec. 28. Every individual, firm or corporation doing a bank- ing business in this state must, on all its window-signs and in advertising, and on letter-heads and other stationery on which its business is transacted, use the word "savings" if it conducts a savings business, or the word "trust"' if it conducts a trust department, and the word "commercial*' if it conducts a com- mercial department. Non-stock corporations heretofore created. Sec. .29. Every corporation heretofore created under the laws of this state, doing a banking business therein, and which has no capital stock, may elect to have a capital stock, and may issue certificates of stock therefor, in the same manner as cor- porations formed under the provisions of part IV, title I, chap- ter I, article I, of the Civil Code, relating to the formation of corporations; provided, that no such corporation shall use or convert any moneys or funds theretofore belonging to it, or under its control, into capital stock ; but such funds or moneys must be held and managed only for the purposes and in the manner for which they were created. Before such change is made, a majority of the members of such corporation present at a meeting called for the purpose of considering the proposi- tion whether it is best to have a capital stock, its amount, and the number of shares into which it shall be divided, must vote in favor of having a capital stock, fix the amount thereof, and (he number of shares into which it shall be divided. Notice of the lime and place of holding such meeting, and its object, must lie given by the president of such corporation by mailing notice of such meeting to each member of such corporation at his last known post office address at least ten days prior to the day fixed for such meeting, and by publication in some newspaper printed and published in the county, or city and county, in which the principal place of business of the corporation is situated, at leas! once a week for three successive weeks prior BANKS AND BANKING. 477 to the holding of the meeting. A copy of the proceedings of this meeting, giving the number of persons present, the votes taken, the notice calling the meeting, the proof of its publication, the amount of capital actually subscribed, and by whom, all duly certified by the president and secretary of the corporation, must be filed in the office of the secretary of state and clerk of the county where the articles of incorporation are filed. There- after such corporation is possessed of all the rights and powers, and is subject to all the obligations, restrictions, and limitations, as if it had been originally created with a capital stock. Safe deposits. Sec. 30. Any bank may conduct a safe deposit department, but shall not invest more than one tenth of its capital and sur- plus in such safe deposit department. Sale of assets — .Agreement of sale and purchase, to contain what. Sec. 31. Any bank may sell the whole or any portion of its assets to any other hank which may purchase its assets after obtaining the consent of the stockholders of the selling and of the purchasing bank holding of record at least two thirds of the issued capital stock of each of such corporations; such consent to be expressed either in writing executed and acknowl- edged by such stockholders and attached to the instrument of sale, or to a copy thereof, or by vote at a stockholders' meeting of such banks called for that purpose. The selling and purchasing banks may for such purposes enter into an agreement of sale and purchase, which agreement shall contain all the terms and conditions connected with the sale and purchase of its assets. Such agreement shall contain proper provision for the pay- ment of liabilities of the selling bank, and in this particular shall be subject to the approval of the superintendent of banks ; and shall not be valid until such approval is obtained. Such agreement may contain provisions for the transfer of all deposits to the purchasing bank, subject, however, to the right of every depositor of the selling bank to withdraw his deposit in full on demand after such transfer, irrespective of the terms under which it was deposited with the selling bank. Trust funds. Sec. 32. Any bank receiving trust funds in accordance with the provisions of this act relating to trust companies must not mingle such trust funds with the other nssets of the corpora- 478 STATUTES AT LARGE. tion, and such funds shall not be carried or counted as any part of the lawful reserve provided for in this act. The officers of any bank who knowingly violate or consent to the violation of this provision shall be guilty of a felony. Officers not to borrow funds. Sec. 33. No officer or employee of any bank shall, directly or indirectly, for himself or as the partner or agent of others, borrow any of the deposits or other funds of such bank, nor shall he nor any director become an endorser or surety for loans to others nor in any manner be obligor for moneys borrowed or loaned by such bank. The office of any officer or employee who acts in contravention of the provisions of this section shall immediately become vacant, and he shall be guilty of a misde- meanor. Capital stock, purchase of. Sec. 34. No bank sball purchase or invest its capital or money of its depositors, or any part of either, in the shares of its own capital stock ; nor loan its capital or the money of its depositors, or any part of either, on the shares of its own capital stock, unless such purchase or loan shall be necessary to prevent loss on debts previously contracted in good faith. Stock thus purchased or carried shall, within six months from the time of its purchase, be sold or disposed of at public or private sale. The officers of any bank who knowingly violate or cons?nt lo the violation of this provision shall be guilty of a felony. Mortgages, restrictions on purchase of. Sec. 35. No director, or officer, or employee, or controlling stockholder of any bank shall, directly or indirectly, for him- self or as the partner or agent of others, sell or transfer, or cause to be sold or transferred to the bank of which he is a director, officer, employee, or controlling stockholder, any mort- gage on real estate or contract arising from the sale of real estate made by any corporation or syndicate in which such director or officer, or employee, or controlling stockholder is personally or financially interested, without the consent in writ- ing of the superintendent of banks. Any director, or officer, or employee, or controlling stock- holder of any bank who knowingly violates or consents to the violation of this provision shall be deemed guilty of a felony. RAN KS AM) BANKING. IT!» Bonds, purchase of. Sec. 36. No bank receiving deposits of money shall pur- chase, agree to purchase, underwrite or guarantee any bond issue in excess of five per centum of its assets, except bonds of the United States, of the State of California, of the cities, cities and counties, counties or school districts of this state. Shares of corporations. Sec. 37. No bank shall purchase, or invest its capital <>r money of its depositors, or any part of either, in shares of cor- porations, unless such purchase shall be necessary to prevent loss on debts previously contracted in good faith, and stock thus purchased or carried shall, within six months from the time of its purchase, be sold or disposed of at public or private sale. unless permission to hold said stock for a longer period shall be obtained from the superintendent of banks. The officers of any bank who knowingly violate or consent to the violation of this provision shall be deemed guilty of a felony. Penal liabilities of directors and employees. Sec. 38. A director, officer, agent or employee of any hank who, First — Knowingly receives or possesses himself of any of its property otherwise than in payment for a just demand, and with intent to defraud, omits to make or to cause or direct to be made a full and true entry thereof in its books and ac- counts ; or, Second — Concurs in omitting to make any material entry (hereof ; or, Third — Knowingly concurs in making or publishing any written report, exhibit or statement of its affairs or pecuniary condition containing any material statement which is false ; or, Fourth — Having the custody or control of its books, willfully refuses or neglects to make any proper entry in the books of such corporation as required by law. or to exhibit or allow the same to be inspected and extracts to be taken therefrom by the superintendent of banks, his chief deputy or any of his exam- iners, shall bo guilty of a felony. Same. Sec. 39. Any officer, director, agent, teller, clerk, or em- ployee of any bank who either. First — Knowingly overdraws his account with such bank, and I s <> STATUTES AT LARGE. thereby obtains the money, notes or funds of any such bank: and, Second — Asks or receives or consents or agrees to receive any commissions, emoluments, gratuity or reward, or any money, property or thing of value or of personal advantage, for procur- ing or endeavoring to procure for any person, firm <>r corpora- tion any loan from, or the purchase or discount of any paper, note, draft, check or bill of exchange, by such bank, or for permitting any person, firm or corporation to overdraw any account with such bank, is guilty of a felony. Stockholders' liability, waiver of. Sec. 40. No bank mentioned in this act shall make any contract with any of its depositors whereby (he stockholders' liability provided for by the constitution of this state is in any manner waived, and if any such contract shall he so made, such contract shall be void. Purchase of obligations. Sec. 41. No director, officer, agent or servant of any bank shall, directly or indirectly, for his own personal benefit, pur- chase or be interested in the purchase of any of the obligations of said bank for a less sum than shall appear upon the face thereof. Purchase of assets. Sec. 42. No director, officer, agent, or servant of any bank shall, directly or indirectly, for his own personal benefit, pur- chase or be interested in the purchase of any of the assets of said bank, for a less sum than the current market value thereof. Every person violating the provisions of this subdi- vision shall be guilty of a misdemeanor. Deposits in other banks. Sec. 43. No bank shall deposit any of its funds with any other bank, unless such other bank has been designated as a depositary for its funds by the vote of a majority of the directors or trustees of the bank making the deposit, exclusive of the vote of any director or trustee who is an officer, director or trustee of the depositary so designate!!. Loans on bank stock. Sec. 44. No bank shall hereafter make a loan secured by the stock of another bank, if by making such loan the total stock of such other bank held by such loaning bank as collateral BANKS AND BANKING. 481 will exceed in the aggregate ten per centum of the capital stock of such other bank ; provided, that no loan upon the capital stock of any bank shall be made unless such bank has been in existence for two or more years and has earned and paid a dividend upon its capital stock. Interest unpaid. Sec. 45. Interest unpaid, although due or accrued, on debts owing to any bank, shall not be included in calculation of its profits previous to a dividend. Loans on bonds. Sec. 4G. No bank shall invest or loan more than five per centum of its assets in any one bond issue, except bonds of the United States, of the State of California, of the counties, cities and counties, cities or school districts of this state. Loans on realty. Sec. 47. No bank shall make any loan on real estate except it be a first lien, but this provision shall not prevent the accept- ance of a second lien to secure the payment of a debt previously contracted in good faith. National banks, examination of. Sec. 48. Any national bank of this state receiving the deposits of banks organized and conducting business under this act, must, at the request of the superintendent of banks, submit to an examination by him, or his duly appointed examiners, should the superintendent of banks in his discretion deem it necessary or desirable that such examination be made ; and the expense of such examination shall be paid by such national bank ; and if any such national bank shall refuse to permit such examination to bo made by the superintendent, of banks, then the superintendent of banks shall notify in writing any and all banks depositing its funds with such national bank, to withdraw its deposits therefrom, and such bank shall comply with such order, and failure so to do shall be a misdemeanor. Savings banks, advertising as. Sec. 40. It shall not be lawful for any commercial bank, individual banker, trust company, association, firm, stock com- pany or corporation, to advertise or put forth a sign as a sav- ings bank, cither directly or indirectly, or in any way to solicit 2 1 CL 482 STATUTES AT LARGE. or receive deposits as a savings bank, except in the case of saving's banks or banks having a savings department, subject to the provisions of this act. Posting of certificate. Sec. 50. Every bank shall post in a conspicuous place in its banking room the last certificate obtained from the superin- tendent of banks, as provided for in section 127 of this act. Every bank that fails to comply with the provisions of this section is guilty of a misdemeanor. Deposits of order of court. Sec. 51. Any court having appointed and having jurisdic- tion of any executor, administrator, guardian, assignee, receiver, depositary or trustee, upon the application of such executor, administrator, guardian, assignee, receiver, depositary or trustee, or upon the application of any person having an interest in the estate administered upon by such officer or trustee, after notice to other parties in interest as the court may direct, and after a hearing upon such application, may authorize such officer or trustee to deposit any money then in his hands as such officer or trustee or which may thereafter come into his hands, and until the further order of the court, in any bank organized under the laws of the State of California ; and upon such deposit being made, the officer or trustee so depositing the same shall there- after and while such moneys remain on deposit in such bank, be relieved and discharged from all liability and responsibility therefor, and the bond required of such officer or trustee given upon his appointment shall be thereupon by said court reduced to such an amount as the court my deem reasonable; such deposit shall be repaid only upon the orders of said court, and shall be a preferred claim against such bank and be paid in full before any other depositor of such bank shall have been paid. Abticle II. Savings Banks. Sec. 60. Capital required. 61. May hold what property. May hold what securities. Restrictions. 62. Debts other than for deposits. Exchange, rate l"<>r. Securities, hypothecation of. fi::. Certificates of deposit, issue of. Time certificates. BANKS AND BANKING. 483 Sec. 64. Conditions of payment to depositors. Reserve fund. 65. Directors, borrowing by, forbidden. 66. "Creation of debt" defined. 67. Loans, limit on and security for. 68. Lawful reserve ; deposits with commercial banks. 69. Savings banks to be conducted under provisions of this act. Capital required. Sec. GO. Every savings bank must have actually paid in a capital stock of not less than twenty-five thousand dollars, or, it organized without capital stock, a reserve fund of at least one million dollars and until said sum of twenty-five thousand dollars or said sum of one million dollars shall be actually paid in, the superintendent of banks shall refuse to issue the certificate required by this act; provided, that nothing herein shall be con- strued to affect the provisions of section twenty-three of this act relative to the capital stock required of banks doing a depart- mental business. May hold what property — May hold what securities — Restric- tions. Sec. Gl. Savings banks may purchase, hold and convey real and personal property as follows: 1. The lot and building in which the business of the bank is carried ou ; such lot and building shall not cost the savings bank an amount exceeding its capital and surplus; and the authority of a two-thirds vote of a full board of directors shall be neces- sary to authorize the purchase or construction thereof. 2. Such as may have been mortgaged, pledged, or conveyed to it in trust for its benefit in good faith, for money loaned in pursuance of the regular business of the corporation. 3. Such as may have been purchased at sales under pledges, mortgages or deeds of trust made for its benefit for moneys so loaned, and such as may be conveyed to it by borrowers in satis- faction and discharge of loans made thereon. No savings bank shall purchase, hold, or convey real estate in any other rase or for any other purpose; and all real estate described in subdivision 3 of this section must lie sold by the bank within ten years after the title thereto is vested in it by purchase or otherwise, unless permission to hold said real estate for a longer period be given by the superintendent of banks in writing. Parcels el' real estate not sold within ten years, or extension of said period as above provided, may be purchased 484 STATUTES AT LARGE. by any persons or parties wanting them, at the price to be deter- mined by arbitration of three persons appointed by the superior court as appraisers, at the request of the would-be purchaser. No savings bank shall purchase, own, or sell personal property, except such as may be requisite for its immediate accommoda- tion for the convenient transaction of its business, and mortgages on real estate, bonds, securities, or evidences of indebtedness, public or private, gold and silver bullion and United States mint certificates of ascertained value, and evidences of debt issued by the United States. No savings bank shall purchase, hold or convey bonds, securi- ties or evidences of indebtedness, public or private, except as follows : (a) Bonds or interest-bearing notes or obligations of the United States, or those for which the faith of the United States is pledged for the payment of interest and principal. (b) Bonds of this state. (c) Bonds of any state in the United States that have not, within five years previous to making such investment by such hank, defaulted in the payment of any part of either principal or interest thereof. (d) Bunds of any city, county, city and county, town, town- ship or school district of this state (r<>ritl'_'. No savings bank shall, directly or indirectly, deal or trade in real or personal property in any other case or for any other purpose than is authorized by this act, and shall not contract any debt or liability for any purpose whatever other than for deposits, except as in this section provided. Savings banks may pay regular depositors, when requested by them, by draft upon deposits to the credit with their banks, and charge current rate of exchange for such drafts. No savings bank shall borrow money, or pledge or hypothe- cate any of its securities, except to meet the immediate demands of its own depositors, and then only in pursuance of a resolution adopted by a vote of a majority of its board of directors, duly entered upon their minutes, wherein shall be recorded the ayes and nays upon each vote; also with the written approval of the superintendent of banks, and he shall have the authority Id fix 486 STATUTES AT LABGE. the amount to be borrowed, and the term and rate of interest thereon ; provided, however, that savings banks may, in the manner authorized by law, and without the written approval of the superintendent of banks, borrow the public moneys of the state, counties, cities and counties, and towns and receive such public moneys on deposit. Certificates of deposit, issue of — Time certificates. Sec. G3. Savings banks may issue general certificates of deposit, which are transferable, as in other cases, by indorsement and delivery ; may issue, when requested by the depositor, special certificates, acknowledging the deposit by the person therein named of a specified sum of money, and expressly providing on the face of such certificate that the sum so deposited and therein named may be transferred only on the books of the bank; pay- ment thereafter made by the bank to the depositor named in such certificate, or to his assignee named upon the books of the bank, or in rase of death, to the legal representative of such person, of the sum for which such special certificate was issued, shall dis- charge the bank from all further liability on account of the money so paid. All time certificates of deposit, issued by a savings bank, shall be subject to the same limitations and conditions as applied to other deposits, and notice thereof shall be given by the words "Subject to conditions of agreemenl with depositors" printed on the face of the certificate issued. Conditions of payment to depositors — Reserve fund. Sec. C>4. Savings banks may prescribe by their by-laws, or by contract with depositors, the time and conditions on which repay- ment is to be made to depositors, except as in this act otherwise prohibited; but whenever there is any call by depositors for repayment of a greater amount than the bank may have dis- posable for that purpose, the directors or officers thereof must nol make any new loans or investments of the funds of the depos- itors, or of earnings thereof, until such excess of call has ceased. The directors of any such bank, having no capital stock, must retain, on each dividend day, at least ten per centum of the net profits of the bank, to constitute a reserve fund, which must be invested in the same manner as other funds of the bank, and must be used toward paying any losses which the bank may sus- tain in pursuing its lawful business. The bank may provide by its by-laws for the disposal of any excess in the reserve fund, as BANKS AND BANKING. 487 provided for in section 21 of this act, and the final disposal, upon the dissolution of the bank, of the reserve fund, or of the remainder thereof, after payment of losses. Directors, borrowing by, forbidden. Sec. G5. No director, or officer of any savings bank must, directly or indirectly, for himself or as the partner or agent of others, borrow any of the deposits or other funds of such bank, nor must he become an endorser or surety for loans to others. nor in any manner be obligor for moneys borrowed of or loaned by such bank. The office of any director or officer who acts in contravention of the provisions of this section immediately there- upon becomes vacant, and every director or officer authorizing or consenting to such loan, and the person who receives such loan, shall severally be guilty of a misdemeanor. "Creation of debt" defined. Sec. G(J. Receiving deposits, issuing certificates of deposit, checks, and bills of exchange, and the like, in the transaction of the business of savings banks, must not be construed to be the creation of debt within the meaning of the phrase "create debt" in section three hundred and nine of the Civil Code and as pro- vided for in this act. Loans, limit on and security for. SEC. 'IT. 1. No savings bank shall loan money except Ou adequate security of real or personal property, and no such loan shall be made for a period longer than ten years; provided that no loans shall be made on unsecured notes. 2. No savings bank shall invest or loan more than five per centum of its assets on any one bond issue, except bonds of the United States, of the State of California, of the counties, cities and counties, cities or school districts of this state. 3. No savings bank shall loan money to exceed ninety per centum of the market value of bonds specified in subdivisions (a), (b), (c) and (r indirectly, or contingently, for the repaymenl of such loan or any part thereof; 490 STATUTES AT LARGE. (c) If its term, including any renewal thereof by agreement, express or implied, exceed the period - of one year ; (d) Or to an amount under any circumstances in excess of twenty-five per centum of the capital and surplus of the com- mercial bank making such loan. Capital paid up required. Sec. 82. Every commercial bank which is now transacting, or which may hereafter transact business, shall have actually paid in a capital stock of not less than twenty-five thousand dollars; and until said sum of twenty-five thousand dollars shall be actually paid in, the superintendent of banks shall not issue the certificate required by section twenty-four of this ad ; provided that nothing herein shall be construed to affect the provisions of section twenty-three of this act relative to the capital stock required of banks doing a departmental business. Loans to directors — Monthly reports. Sec. S3. No commercial bank shall loan any of its funds to any of its directors unless such loan shall first have been approved by a two-thirds vote of its board of directors, on which vote the borrowing director shall not participate, and the fact of making such loau, the name of the director borrowing the same, the time when the same shall become due, the rate of interest thereon, and the amount, value, and character of the security pledged therefor, if any, shall be forthwith forwarded by the cashier of such bank to the superintendent of banks; and if the superintendent of banks shall disapprove of such loan, he shall immediately notify such bank of his disapproval thereof, and such bank shall forthwith colled such loan; provided, however, thai the total loans to all directors of such bank shall not at any one time exceed thirty per cent of the capital and surplus of such bank : and provided, further, that each bank having any loan or loans outstanding to any of its directors shall once each month report in writing to the superintendent of banks the name of each director to whom such loan is made, the amount of such loan, the rate of interest thereon, the time when the same shall fall due, and the security pledged therefor, if any. Any officer or director of any commercial bank violating any of the provisions of this section shall be guilty of a felony. BANKS AND BANKING. 491 Article IV. Trust Companies. Sec. 90. Execution of trusts. Compensation for services. 91. Deposits by order of court. 92. Public administrators, deposits by. 93. Executors, etc., deposits by. 94. Responsibility for investments. 95. Interest. 96. Deposit with state treasurer. 97. May mortgage realty to state treasurer. 98. Interest on state deposits. Liability of state. 99. Abstracts of titles, deposit of. 100. Paid-up capital required. 101. Report of trusts held. 10i'. Retirement from business. 103. Confidential communications, disclosures of. 10 1. Word "trust" prohibited, to whom. Effect of use of word "trust." 105. Investments, laws governing. 106. Banking business, requirements for doing. Execution of trusts — Compensation for services. Sec. 90. Any corporation which has been or shall be incor- porated under the general incorporation laws of this state, authorized by its articles of incorporation to act as executor, administrator, guardian, assignee, receiver, depositary or trustee, and liaving a capital of not less than two hundred thousand dollars actually paid in, in cash, may bo appointed to act in such capacity in like manner as individuals and shall be known as a Irust company. In all cases in which it is required that an executor, administrator, guardian, assignee, receiver, depos- itary or trustee, shall qualify by taking and subscribing an oath, or in which an affidavit is required, it shall be a sufficient quali- fication by such corporation if such oath shall be taken and subscribed or such affidavit made by the president or secretary or manager or trust officer thereof, and such officer shall be liable for the failure of such trust company to perform any of the duties required by law to be performed by individuals acting in like capacity and subject to like penalties ; and such trust company shall bo liable for such failure to the full amount of its capital stock; provided, any such appointment as guardian shall apply lo the wsinir only, and nol in the person. Such trusl com 4'.»L > STATUTES AT LARGE. pany shall be entitled to and shall be allowed proper compensa- tion for all the services performed by them under the foregoing provisions of this act ; but such compensation shall not exceed that allowed to natural persons for like services. Deposits by order of court. Sec. 91. Any court, having appointed and having jurisdic- tion of any executor, administrator, guardian, assignee, receiver, depositary, or trustee, upon the application of such officer or trustee, or upon the application of any person having an interest in the estate administered by such officer or trustee, after notice to the other parties in interest as the court may direct, and after a hearing upon such application, may authorize such officer or trustee to deposit any moneys then in his hands, or which may come into his hands thereafter, and until the further order of said court, with any such trust company ; and upon deposit of such money, and its receipt and acceptance by such trust com- pany, the said officer or trustee shall be discharged from further care or responsibility therefor. Such deposits shall be paid out only upon the orders of said court. Public administrators, deposits by. Sec. 92. It shall be lawful for any public administrator to deposit with any trust company having not less than two hun- dred thousand dollars paid-up capital, doing business in the county, or city and county, in which he is acting as such admin- istrator, any and all moneys of any estate upon which he is administering, not required for the current expenses of the administration ; provided that such corporation deposit with the state treasurer the securities required by this act. Such deposits shall relieve the public administrator from depositing with the county treasurer the moneys so deposited with such corpora- tion. Moneys so deposited by a public administrator may be drawn, upon the order of such administrator, countersigned by a judge of a superior court, when required for the purpose of administration, or otherwise. Executors, etc., deposits by. Sec. 93. Whenever, in the judgment of any court having jurisdiction of any estate in process of administration by any executor, administrator, guardian, assignee, receiver, depositary, or trustee, and after such notice to the parties in interest as the court shall direct, and after a hearing on such application, BANKS AND BANKING. 49o the said court may order the said officer or trustee to deposit with any such trust company, for safe-keeping, such portion or all of the personal assets of said estate as it shall deem proper ; and thereupon said court shall, by an order of record, reduce the bond to be given or theretofore given by such officer or trustee, so as to cover only the estate remaining in the hands of said officer or trustee ; and the property as deposited shall thereupon be held by such trust company, under the orders and directions of said court. Any court having jurisdiction of an estate being administered by a public administrator, may direct such public administrator to deposit all or any part of the moneys of the estate not required for the current expenses of the administra- tion, with any such trust company doing business in the county, or city and county, where such public administrator is acting. Responsibility for investments. Sec. 94. Such (rust company shall not be required to give any bond or security in case of any appointment hereinbefore provided for, except as hereinafter provided, but shall be responsible for all investments which shall be made by it of the funds which may be intrusted to it for investment by such court, and shall be liable as natural persons in like positions now are, and as hereinafter provided. Interest. Sec. !>.~>. Such trust company shall pay interest upon all moneys held by it as trustee, by virtue of this act, at such rate as may be agreed upon at the time of its acceptance of any such appointment, <>r as shall be provided by the order of the court. Deposit with state treasurer. Sec. 96. Each trust company, before accepting any such appointment or deposit, shall deposit with the treasurer of state, for the benefit of the creditors of said trust company, the sum of one hundred thousand dollars ($100,000), in bonds of the United States, or municipal bonds of this state, or of any county, or city, city and county, or school district thereof, or in mortgages on improved and productive real estate in this state, being first liens thereon, and the real estate being worth at least twice the amount loaned thereon ; said bonds or mortgages to be approved by the superintendent of banks. The bonds and securities so deposited may he exchanged from time to time for other securities, receivable as aforesaid. Said bonds of the 494 STATUTES AT LARGE. United States, or municipal bonds of this state, or of any county, city, city and county, or school district thereof, to be registered in the name of said treasurer, officially, and all said securities to be subject to sale and transfer, and to the disposal of the proceeds by said treasurer, only on the order of a court of com- petent jurisdiction and as hereinafter provided. The state shall be responsible for the safe return of such securities deposited with the treasurer of the state under this section. May mortgage realty to state treasurer. Sec. 97. Any such trust company having' a paid-up capital in excess of two hundred thousand dollars, may be permitted by the superintendent of banks to mortgage any improved and productive real estate owned by it, in excess of said amount, to the treasurer of stale, for such sum as the said superintendent of banks may determine, and such mortgage may be deposited with said treasurer, and when so deposited it shall be included in the amount of securities hereinabove required to be deposited with said treasurer for the benefit of the creditors of said trust company. Interest on state deposits — Liability of state. Sec. 9S. So long as the trust company so depositing shall continue solvent, it shall be permitted to receive from said treasurer the interest or dividends on said deposits, and when- ever any trust company receives trust funds as such trustee in excess of five hundred thousand dollars, it shall deposit with the slate treasurer securities mentioned in section 90 of this act, to lie approved by the superintendent of banks, in the amount nl' another one hundred thousand dollars, and for each five hun- dred thousand dollars of such (rust funds thereafter received, an additional deposit of fifty thousand dollars of such securities likewise approved shall be made with the said slate treasurer; provided, hotoever, that no trust company shall be required to deposit more than one million dollars of such securities. . The state shall be responsible for the safe return of such securities deposited with the treasurer of the state under this section. Abstracts of titles, depositof. Sec. 99. When any pari of such deposit with the stale treas- urer is made in bonds and mortgages, il shall he accompanied by full abstracts of title and searches, or by certificates of title BANKS AND BANKING. 495 issued by a person, company or corporation, whose business or objects are to make searches of titles and issue certificates of titles, and which said person, company or corporation shall be one designated or approved by said superintendent of banks, and shall be examined and approved by or under the direction of the said superintendent of banks. The fees for an examina- tion of title by counsel to be paid by the trust company making the deposit, shall not exceed twenty dollars for each mortgage, and the fee for each appraiser, not exceeding two, besides expenses, shall be five dollars for each mortgage. Paid-up capital required. Sec, 1(10. Before the superintendent of banks issues his cer- tificate In any trust company, there must be filed in his office the affidavit of a majority of its board of directors or the persons named in said articles as the first directors of the corporation that at least two hundred thousand dollars of the capital stock has actually been subscribed and paid in to a person named in such affidavit for the benefit of the corporation. Report of trusts held. Sec. 101. On making the report required by the terms of this act, every trust company shall, in addition to the other fads to be reported on. furnish a list and brief description of the trusts held by such corporation, the source of the appoint- ment thereto, and the amount of real and personal estate held by such trust company by virtue thereof; except that mere mortgage trust, wherein no action has been taken by such cor- poration, shall not be included in such statement. Retirement from business. Sec. 102. Any trust company which desires to retire from business under this act, shall furnish to the superintendent of banks satisfactory evidence of its release and discharge from all the obligations and trusts hereinbefore provided for; where- upon lie shall revoke his certificate to such trust company, and thereupon the treasurer of state shall return to said trust com- pany all its securities. Confidential communications, disclosures of. Sec. 103. Excepl as herein otherwise provided, any trust company exercising the powers and performing (lie duties pro- vided for in this act, shall keep inviolate all communications 190 STATUTES AT I.AIiGE. confidentially made to it touching the existence, condition, man- agement and administration of any trusts confided to it; and no creditor or stockholder of any such trust company shall be entitled to disclosure of any such communication; provided, how- ever, that the president, manager, and secretary of such trust company shall be entitled to knowledge of such communication : (uhI provided, further, that in any suit or proceeding touching the existence, condition, management or administration of such trust, the court wherein the same is pending may require dis- closure of any such communication. Word "trust'' prohibited, to whom — Effect of use of word "trust." Sec. lot. The use of the word "trust" in combination with or in connection with the word "company," "corporation," "incorporation," "association," "society," "organization," or '•syndicate.*' is hereby prohibited to all persons, firms, associa- tions, companies or corporations other than corporations pro- vided for by this act. Every person, firm, asosciation, company. or corporation which uses the wind "trust" in combination with or in connection with the word "company," "corporation." "incorporation," "association," "society," "organization," or "syndicate," as the name under which business is done or transacted, shall be subject to the provisions of this act and to the supervision of the superintendent of banks. Any person, firm, association, company, or corporation making use of the word "trust" in combination or in connection with the word "company," "corporation," "incorporation," "association," "so- ciety," "organization," or "syndicate," in the manner herein- above mentioned, in the transaction of business, and not subject to the provisions of this act and the supervision of the superin- tendent of banks, shall be guilty of a misdemeanor. No corporation hereafter formed shall use the word "trust" or "trustee'* as a part of its corporate name unless it shall be authorized by its articles of incorporation to act as executor, administrator, guardian, assignee, receiver, depositary or trus- tee : nor shall any corporation hereafter formed accept or exe- cute any trust mentioned in this act, unless it shall have .complied with the provisions of this act. Investments, laws governing. Sec. L05. Every trust company shall invest its capital and trust funds received by it in accordance with the laws relative BANKS AND BANKING. 497 to the investment of funds deposited with savings banks, unless a specific agreement to the contrary is made between the trust company and the party creating the trust. Banking business, requirements for doing. Sec. 106. Every trust company desiring to do or doing a commercial banking business or a savings bank business, or both, in addition to its trust business, shall have paid up in cash the capital as provided in section twenty-three of this act. Such capital for each such department shall be increased from time to time in the same manner and to the same extent as though such bank were conducting separate banks instead of separate departments. Every trust company doing a departmental business shall comply with the provisions of this act governing each of such departments as to its deposits, reserves, investments and loans. Article V. State Banking Department. Sec. 120. Superintendent, appointment and qualifications. Sal- ary. Bond. 121. Appointees. Employment of, and compensation. Bond. 122. Principal office. L23. State banking fund, how created; where deposited. 121. Inspection of banks. Powers of examiner. Foreign banks. Doubtful securities. 125. Examiner, oath of office of. 126. Neglect of duty. 127. Transaction of business, certificate required for. Fee. 128. Stockholders, fitness of. Certificate of authorization. 129. Reports. 130. Same. 131. Call for reports. 132. Publication of statement. Shall show, what. 133. Impairment of capital. 131. Conduct of business in unsafe manner. Order to show cause. 135. Rule governing action. L36. Superintendent may take possession, when. Notice to debtors. Resumption of business. Liquidation. 137. Dissolution of bank. Escheat of unclaimed funds. 13S. Reports, failure to make. 498 STATUTES AT LARGE. Sec. 131). Directors of banks, duties of. Report of directors, what to contain. 14 (). Report of superintendent to governor. 141. Weekly bulletin to be posted by superintendent, and items thereof. Pile of bulletins. 142. Official reports, prima facie evidence. 143. Neglect of duty by superintendent. 144. Actions, duty of attorney general. 145. Construction of act. 146. Conflicting laws repealed. 147. Time act shall take effect. Superintendent, appointment and qualifications — Salary — Bond. Sec. 120. There is hereby created a state banking depart- ment. The chief officer of such department shall be the super- intendent thereof, and be known as the superintendent of banks. He shall be appointed by the governor, and shall hold his office for a term of four years,* or until hLs successor shall have been appointed and qualified. No person shall be appointed super- intendent of banks who has not had active banking experience, either as executive officer or director of some commercial bank, savings bank or trust company, at least one half of which experience has been had in this state. He shall not, either directly or indirectly, be interested in any commercial bank, savings bank or trust company, or as an individual banker. He shall receive an annual salary of ten thousand dollars, to be paid monthly out of the state treasury on a warrant of the controller. He shall, within fifteen days from the time of notice of his appointment, take and subscribe to the constitutional oath of office, and file the same in the office of the secretary of state, and execute to the people of the state a bond in the penal sum of fifty thousand dollars, with corporate surety or two or more sureties to be approved by the governor of the state, conditioned for the faithful discharge of the duties of his office. Appointees — Employment of, and compensation — Bond. SEC. 121. The superintendent of banks shall employ a chief deputy, attorney and such clerks and examiners as he may need to discharge in a proper manner the duties imposed upon him by law, none of which examiners or clerks or attorney shall be interested in any bank in this state as director, stockholder, officer or employee ; they shall perform such duties as he shall assign to them. He shall fix the compensation of the attorney, clerks, and examiners, which compensation shall be paid monthly, BANKS AND BANKING. 499 on his certificate and on the warrant of the controller, out of the state treasury. The chief deputy shall, within fifteen days from the time of his appointment, take and subscribe to the con- stitutional oath of office, and file the same in the office of the secretary of state, and his compensation shall be four thousand dollars per annum ; provided, however, that the total expendi- ture provided for in this act shall not exceed seventy-five thou- sand dollars per annum. No person shall be appointed a chief deputy who has not had at least three years' active banking experience, either as an executive officer or employee of some bank in this state. In case of the absence or inability to act. or vacancy in the office of superintendent of banks for thirty consecutive days, the chief deputy shall execute to the people of the state a bond in the penal sum of fifty thousand dollars, with corporate surety or two sureties to be approved by the controller and treasurer of the slate, conditioned for the faithful discharge of the duties of the superintendent while such deputy acts as superintendent, and upon filing such bond such deputy shall have all the power and duties of superintendent of banks, until the inability of the superintendent shall be removed, or until a new superintendent of banks shall have been appointed by the governor. No super- intendent of banks, chief deputy or bank examiner shall be or shall become indebted, directly or indirectly, either as borrower, endorser, surety, or guarantor to any bank under his supervision or subject to his examination. Principal office. Sice. 122. The superintendent of banks shall have his prin- cipal office in the city of San Francisco, and may also have suit- able rooms in the city of Los Angeles, wherein to conduct the business of the state banking department. The superintendent shall, from time to time, obtain the necessary furniture, sta- tionery, fuel, lights, and other proper conveniences for the transaction of such business; the expense of which shall be paid out of the state treasury on the certificate of the superintendent and the warrant of the controller. State banking fund, how created; where deposited. Sec. 123. A fund is hereby created, to be known as the state banking fund, and out of said fund shall be paid all the expenses incurred in and about the conduct of the business of the banking department, including the salary of the superintendent, chief 500 STATUTES AT LARGE. deputy, attorney, clerks and examiners, traveling expenses, furnishing of rooms and rent. Each bank shall pay annually its share of the total amount of the salaries and expenses of the banking department, to be determined by the proportion which the deposits of any such bank bear to the aggregate deposits of all such banks receiving certificates of authorization from the superintendent of banks, as shown by the last report of such bank to the superintendent of banks. All moneys collected or received by the superintendent of banks, under and by virtue of the provisions of this act, shall be by him delivered to the treasurer of the state, who shall deposit the same to the credit of said banking fund, and the unexpended balances of all moneys heretofore paid into the state treasury by any of the bank commissioners shall be retained and become a part of said fund. If any such bank shall fail to pay such charges as are herein required, the superintendent shall forth- with cancel the certificate of said bank. Inspection of banks — Powers of examiner — Foreign banks — Doubtful securities. Sec. 124. Every bank shall be subject to the inspection of the superintendent of banks. The superintendent of banks, I lie chief deputy, or some competent person or persons to be appointed by the superintendent of banks, to be known as exam- iners, shall visit and examine every bank, other than a savings bank, at least twice in each year, and every savings bank at least once in each year. On every such examination inquiry shall be made by him as to the condition and resources of the bank, the mode of conducting and managing its affairs, the act ion of its directors, the investment and disposition of its funds, the safety and prudence of its management, the security afforded to those by whom its engagements are held and whether the requirements of its articles of incorporation and the law have been complied with in the administration of its affairs, and as to such other matters as the superintendent may prescribe. He shall have power in like manner to examine every bank when- ever, in his judgment, its condition and management is such as to render an examination of its affairs necessary or expedient. He shall also have power to examine, or cause to be examined, every agency located in this state of any foreign bank or banking corporation, for the purpose of ascertaining whether it has com- plied with the laws of the state, and for such other purposes and as to such other matters as the superintendent may prescribe. BANKS AND BANKING. 501 The superintendent, chief deputy, and every such examiner shall have the power to administer an oath to any person whose testimony he may require on the examination of any bank, or on the examination of any agency of any foreign bank or banking corporation, and to compel appearance and attendance of any such person for the purpose of any such examination. The result of such examination shall be certified by the persons inn king the examination on the records of the bank examined. When a bank shall have been examined by any examiner, and he finds securities therein which are, in his judgment, of doubt- ful value, he shall report the same to the superintendent of banks, who thereupon shall be authorized to employ appraisers to appraise said securities, at a compensation to be fixed by the superintendent of banks. Examiner, oath of office of. Sec. 125. Every examiner appointed by the superintendent of banks shall, before entering upon the discharge of his duties, take the constitutional oath of office and cause the same to be tiled in the office of the secretary of state. No such examiner shall be appointed receiver of any bank whose books, papers and affairs he shall have examined pursuant to his appointment. Neglect of duty. Sec. I'-'ti. If the chief deputy or any examiner shall have knowledge of the insolvency or unsafe condition of any bank mentioned in this act, and that it is unsafe or inexpedient to permit said bank to continue business, and shall neglect to forth- with report such fact in writing over his signature to the super- intendent of banks, he shall be guilty of felony. Transaction of business, certificates required for — Fee. Sec. 127. No bank shall transact any business in this state without the written approval of the superintendent of banks, and without his written certificate stating that it has complied with the provisions of this act, and with all the requirements of law, and that it is authorized to transact, within this state, the busi- ness specified therein, and that the requisite capital has been in good faith subscribed and paid up in cash or, if organized with- out capital stock that it has accumulated the requisite surplus or reserve fund. Before issuing such certificate the superin- tendent of banks shall examine, or cause an examination to be made, in order to ascertain whether the requisite capital of such 502 STATUTES AT LARGE. bauk has been paid up in cash or the requisite reserve or surplus fund has been, accumulated. The superintendent of banks shall not authorize such bank to commence business until it appears from such examination, or other evidence satisfactory to him, that the requisite capital has been, in good faith, subscribed and paid in in cash, or that the requisite surplus or reserve fund has been accumulated or paid in in cash, and until such bank shall have paid a fee of fifty dollars. Every person who neglects to comply with any requirement of this section shall be guilty of a misdemeanor. Stockholders, fitness of — Certificate of authorization. Sec. 128. When the articles of incorporation shall have been filed with the secretary of state, and application made for the issuance of a certificate to do business as a bank, the superin- tendent of banks shall ascertain, from the best sources of infor- mation at his command, whether the character and general fitness of the persons named as stockholders are such as to com- mand the confidence of the community in which such bank is proposed to be located, and. if so satisfied, he shall, within sixty days after such application has been made to him, issue, under his hand and official seal, the certificate of authorization required by this act. The superintendent of banks shall transmit such certificate of authorization to the county clerk of such county, who shall file the same; the superintendent of banks shall also file a duplicate of such certificate in his own office. Reports. Sec. 129. Every bank doing a departmental business shall render to the superintendent of banks for each department con- ducted by it. a separate report showing in detail as required by section one hundred thirty of this act. the actual financial con- dition of such department and shall at the time of furnishing said report separately publish the statement for each department as provided in section one hundred thirty-two of this act. Same. SEC. 130. Every bank doing business in this state shall, whenever required by the superintendent of banks, make a report in writing to him. verified by the oath of its president and its secretary or cashier, or two principal officers. Such reports shall show (lie actual financial condition of the bank making the report, at the close of any past day specified by the superin- tcudent, and shall specify the following: BANKS AND BANKING. 503 I. The amount of its capital stock and the number of shares into which it is divided, or, if not incorporated, the amount of capital actually paid in, and by whom. -2. The names of the directors and the number of shares of stock held by each, or, if not incorporated, the names of each member of the firm and the amount of capital paid in by each. 3. The total amount of capital actually paid up in money, and the total amount of contingent and other reserve funds, if any. 4. The total amount due the depositors. 5. The total amount and character of any other liabilities it may have. (». The amount at which the lot and building occupied by the bank for the transaction of its regular business stands debited on its books, together with the market value of all other real estate held, whether acquired in settlement of loans or other- wise; the amount at which it stands debited on the bank books, in what counties situated, and in what name the title is vested, if not in the name of the bank itself. 7. The amount loaned on real estate, specifying the amount secured on real estate in each county separately ; also specifying the name of the person in whose name the property is held in trust or as security, in case it is held in any name other than that of the bank and the instrument creating the security docs not itself disclose the name of the bank. S. The amount invested in bonds, designating the name and amount of each particular kind. 9. The amount loaned on stocks and bonds, designating each particular class and the amount thereof. 10. The amount of money loaned on other securities, with a particular designation of each class and the amount loaned on each. II. The actual amount of money on hand or deposited in any other bank or place, with the name of the place where deposited and the amount in each place. 12. Any other property held, or any amount of money loaned, deposited, invested or placed, not otherwise herein enumerated, and the place where situate and the value of said property, and the amount so loaned, deposited or placed, and any other infor- mation he may request relative to the conduct and affairs of such bank. The oaths of tl dicers and the statements above required 504 STATUTES AT LARGE. shall state that they and each of them have a personal knowl- edge of the matters therein contained, and that they believe every allegation, statement, matter, and thing therein contained is true. Any willful false statement in the premises shall be per- jury and shall be punished as such. Call for reports. Sec. 131. The superintendent of hanks shall call for reports specified by the previous section, at least three times each year, and shall call for such reports as near as possible upon the same days as those designated by the comptroller of the currency of the United States for reports of national banking associations. Publication of statement — Shall show what. Sec. 132. At the time of furnishing such report to the super- intendent of banks, every bank shall also publish a condense. I statement of its financial condition, at least once, in some news paper of general circulation, published in the city or town where its principal place of business is located, and. if no paper is published in such town, then in some newspaper of general circulation in the county where its principal place of business is located. Such published statement shall show the total amount of loans, the total amount of overdrafts, the total amount invested in bonds and other securities, the total amount due from banks, the total amount of checks and other cash items, the total amount of cash on hand, capital paid in, surplus funds: undivided profits, less expenses and taxes paid; due to other banks and bankers, due to trust companies and savings banks ; individual deposits subject to check; demand certificates of deposit; time deposits; certified cheeks; cashier's checks out- standing; and such other items as will show the actual financial condition of the bank making the report. Impairment of capital. Sec. 333. Whenever the superintendent of banks shall have reason to believe that the capital of any bank is reduced by impairment or otherwise below the amount required by law or by its articles of incorporation, he may require such bank to make good the deficiency within sixty days after the date of such requisition. He may examine or cause to be examined any such bank to ascertain the amount of such impairment or reduc- tion of capital and whether the deficiency has been made good as required by him. BANKS AND BANKING. 50H Conduct of business in unsafe mannei — Order to show cause. Sec. 134. If it shall appear to the superintendent of banks that any bank has violated its articles of incorporation, or any law binding upon it, he must, by an order under his hand and official seal, which seal must be adopted by him, addressed to such bank, direct the discontinuance of such violation ; or, if it shall appear to the superintendent of banks that such bank is conducting business in an unsafe or injurious manner, he musl in like manner direct the discontinuance of such unsafe or injurious practices. Such order shall require such bank to show cause, before the superintendent of banks, at a time and place to be fixed by him, why said order should not be observed. If upon such hearing it shall appear to the superintendent of banks that such bank is conducting business in an unsafe or injurious manner, or is violating its articles of incorporation, or any law of this state, then the superintendent of banks shall make such order of discontinuance final, and such bank shall immediately discontinue all practices named in such order by the superin- tendent of banks. Such bank shall have ten days after any such order is made final in which suit may be commenced to restrain enforcement of such order, and unless such action be so com- menced and enforcement of said order be enjoined within ten days, by the court in which such suit is brought, then such bank shall comply with such order ; and, in the event of its failure so to do, then the superintendent of banks shall have power to take immediate charge and control of said bank, and liquidate its affairs in the manner provided in this act for the liquidation of banks. Rule governing action. Sec. 135. In any such action, no damage may be awarded, but the action otherwise shall be commenced, tried and deter- mined according to the provisions of the Code of Civil Pro- cedure of California. Superintendent may take possession, when — Notice to debtors — - Resumption of business — Liquidation. Sec. 136. Whenever the superintendent of banks shall have reason to conclude that any bank is in an unsound or unsafe condition to transact the business for which it is organized, or that it is unsafe or inexpedient for it to continue business, the superintendent of banks may forthwith take possession of the 22— cl 506 .STATUTES AT LARGE. property and business of such bank, and retain such possession until such bank shall resume business, or its affairs be finally liquidated, as herein provided. On taking possession of the property and business of any such bank, the superintendent of banks shall forthwith give notice in writing of such fact to any and all corporations and individuals holding or in possession of any of the assets of such bank. No bank, corporation or individual, knowing of such taking possession by the superintendent of banks, or notified as afore- said, shall have a lien or charge for any payment, advance or clearance thereafter made, or liability thereafter incurred against any of the assets of the bank of whose property and business the superintendent of banks shall have taken possession as aforesaid. Such bank may, with the consent of the superintendent of banks, resume business upon such conditions as may be approved by him. Upon taking possession of the property and business of such bank, the superintendent of banks is authorized to collect moneys due to such bank, and to do such other acts as are necessary to conserve its assets and business, and shall proceed to liquidate the affairs thereof as hereinafter provided. The superintendent of banks shall collect all debts due and claims belonging to it, and upon the order of the superior court may sell or compound all bad or doubtful debts, and on like order may sell all real and personal property of such bank on such terms as the court shall direct ; and may, if necessary to pay the debts of such bank, enforce individual liability of the stockholders by action to be brought within three years after the date of his taking possession of the affairs of such bank. The superintendent of banks may, under his hand and official seal, appoint one or more special deputy superintendents of banks, as agent or agents, to assist him in the duty of liquida- tion and distribution, the certificate of appointment to be filed in the office of the superintendent of banks, and a certified copy in the office of the clerk of the county in which the principal office of such bank is located. The superintendent of banks may, from time to time, author- ize a special deputy superintendent to perform such duties connected with such liquidations and distribution as the super- intendent of banks may deem proper. The superintendent of banks may employ such counsel, and procure such expert assist- ance and advice as may be necessary in the liquidation and dis- BANKS AND BANKING. 507 tribution of the assets of such bank, and may retain such officers or employees of such bank as he may deem necessary. The superintendent of banks shall require, from a special deputy superintendent and from such assistants, such security for the faithful discharge of their duties as he may deem proper. The superintendent of banks shall cause notice to be given by advertisement in such newspapers as he may direct, weekly, for three consecutive mouths, calling on all persons who may have claims against such bank, to present the same to the superin- tendent of banks, and make legal proof thereof, at a place and within a time not more than six months after the last day of publication, to be therein specified. The superintendent of banks shall mail a copy of such notice to all persons whose names appear as creditors upon the books of the bank. If the superintendent of banks doubts the justice and validity of any claim, he may reject the same and serve notice of such rejection upon the claimant, either by mail or personally. An affidavit of the service of such notice shall be prima facie evidence thereof, and shall be filed with the super- intendent of banks. An action upon a claim so rejected must be brought within six months after such service. (Maims presented after the expiration of the time fixed in the notice to creditors shall be entitled to share ratably in the distribution to the extent of the assets in the bauds of the superintendent of banks, equitably applicable thereto. Upon taking possession of the property and assets of such bank, the superintendent of banks shall make au inventory of the assets of such bank in duplicate, one to be tiled in the office of the superintendent of banks, and one in the office of the clerk of the county in which the principal office of such bank is located; upon the expiration of the time fixed for the presentation of claims, the superintendent of banks shall make in duplicate a full and complete list of the claims presented, including and specifying such claims as have been rejected by him, one to be filed in the office of the superintendent of banks, and one in the office of the clerk of the county in which the principal office of such bank is located; such inventory and list of claims shall be open at all reasonable times for inspection. The compensation of the special deputy superintendents, coun- sel, and oilier officers and assistants, and all expenses of super- vision and liquidation, shall lie tixed by the superintendent of banks on notice to such bank, and shall upon his certificate be paid out of the funds of such bank in his hands. SOS STATUTES AT LABGE. The sums collected by the superintendent of banks shall, from time to time, be deposited in one or more banks in this state, subject to examination by the superintendent of banks. At any time after the expiration of the date fixed for the presentation of claims, the superintendent of banks may. out of the funds remaining in his hands after the payment of expenses, declare one or more dividends, and after the expiration of one year from the date of first publication of notice to creditors he may declare a final dividend. Objection to any claim not rejected by the superintendent of hanks may be made by any party interested, by filing a copy of such objection with the superintendent of banks, who shall pre- sent the same to the superior court of the county in which such bank has its principal place of business, with a petition that said court pass upon the validity of such claims ; and such court shall thereupon, upon such notice to the party presenting the same, and to the superintendent of banks, as the court may deem proper, accept or i eject said claim, and the superintendent of banks shall observe the order of the court in that regard; pro- vided, however, that should the claim be rejected, such rejection shall not conclude the claimant from bringing an action upon such claim within six months after such rejection. Upon the petition of the superintendent of banks, such court may make proper provisions for unclaimed deposits. Whenever any such bank, of whose property and business the superintendent of banks has taken possession as aforesaid, deems itself aggrieved thereby, it may at any time within ten days after such taking possession, and not thereafter, apply to the superior court in the county in which the principal office of such bank is located, to enjoin further proceedings; and said court, after citing the superintendent of banks to show cause why further proceedings should not be enjoined, and upon hearing the allega- tions and proofs of the parties, and determining the facts, may, upon the merits, dismiss such application, or enjoin the superin- tendent of banks from further proceedings, and direct him to surrender such business and property to such bank. Either party aggrieved by the judgment rendered thereon may- appeal therefrom to the supreme court, as in other cases of appeal thereto from the judgment of a superior court. An appeal as above provided shall operate as a stay of the judgment of the superior court, and no bond need be given if the appeal be taken by the superintendent of banks; but if the appeal BANKS AND BANKING. 509 be taken by such bank, a bund shall be given, as required by section nine hundred and forty- three of the Code of Civil Pro- cedure. Whenever the superintendent of banks shall have paid to each and every depositor and creditor of such corporation (not including stockholders) whose claim or claims as such creditor or depositor shall have been duly approved and allowed the full amount of such claim, and shall have made proper provisions for unclaimed and unpaid deposits or dividends, and shall have paid all expenses of the liquidation, the superintendent of banks shall call a meeting of the stockholders of such corporation by giving notice thereof for thirty days, in one or more newspapers published in the county where the principal office of such cor- poration is located. At such meeting, the superintendent of banks shall appear and deliver to the stockholders all the prop- erty, effects and records of such bank, and upon such transfer and delivery he shall be discharged from any and all further liability to such bank and its creditors. And thereupon the bank shall be in the same position as though it had never been authorized to transact a banking business, and such hank, by fulfilling the requirements of this act, and of the superintendent of banks, can thereafter be authorized to resume the conduct of its business as a bank. Dissolution of bank— Escheat of unclaimed funds. Sec. 1."'>7. 1. Any bank shall have the right, on application of the stockholders or members to apply to the superior court of the county wherein its principal place of business is situated, to dissolve said bank in the manner provided for in title six. part three of the Code of Civil Procedure. 2. It is hereby made the duty of every person or corporation holding funds of any bank, at the end of five years from and after such bank has ceased to receive deposits, or do business, to pay the same into the state treasury, which money shall be held in the state school land fund: and at the same time it shall he the duty of such person or corporation to furnish to the state controller :i list of the names of all depositors to whom said moneys belong or to whom said bank owes the same. :;. The money may be drawn ou1 on the warrants of the state controller, issued on proofs of ownership, approved and allowed by the state hoard of examiners. 4. All moneys paid into the said fund, uncalled for within 510 STATUTES AT LARGE. five years after being paid in, shall by operation of law, and without action had, escheat to the state, and thereafter only be drawn out in such manner as now provided for by law for the estates of deceased persons escheated to this state. 5. The state board of examiners must invest such moneys in the same manner that the state school land fund is invested as provided by law. But any claimant shall be entitled to recover as herein provided only the principal so paid into the state treasury. Reports, failure to make. Sec. 138. If any bank shall fail to make the report required by law or by the superintendent of banks, within ten days from the day designated for the making thereof, or to include therein any matter required by law or by the superintendent of banks, every such delinquent bank shall forfeit to the people of the state the sum of one hundred dollars for each day that such report shall be delayed or withheld, and for every day it shall fail to report any such omitted matter. In the event of the failure of any such bank to make the report required from it by law, or by the superintendent of banks, he shall immediately cause the books, papers and affairs of such bank to be thoroughly examined. Directors of banks, duties of — Report of directors, what to con- tain. Sec. 139. It shall be the duty of the board of directors of every bank to examine fully into the books, papers and affairs of the bank of which they are directors, and particularly into the loans and discounts thereof, with a special view to ascertaining the value and security thereof, and of the collateral security, if any given, in connection therewith, and into such other matters as the superintendent of banks may require; such examination to be made at least once a year, but no such subsequent yearly examinations shall be made within three months of the next pre- ceding examination. Such directors shall have power to employ such assistance in making such examination as they may deem necessary. Within ten days after the completion of such exami- nation, a report in writing thereof, sworn to by the directors making the same, shall be made by the board of directors of such bank, and placed on file with the records of said bank, and shall be subject to examination by the superintendent of banks. BANKS AND BANKING, 511 Such report shall particularly contain a statement of the assets and liabilities of the bank examined, as shown by its books, together with any deductions from the assets, or additions to liabilities, which such directors or committee, after such examination, may determine to make. It shall also contain a statement, in detail, of loans, if any, which in their opinion arc worthless or doubtful, together with their reasons for so regard- ing them ; also a' statement of ioans made on collateral security, which in their opinion are insufficiently secured, giving in each rase the amount of the loan, the name and market value of the collateral, if it has any market value, and, if not. a statement of that fact, and its actual value as nearly as possible. Such report shall also contain a statement of overdrafts, of the names and amounts of such as they consider worthless or doubtful, and a full statement of such other matters as affect the solvency and soundness <>r the bank. If the directors of such bank shall fail to make, or cause to be made, and tile such report of examina- tion in the manner and within the time specified, the directors of such bank shall be guilty of a misdemeanor. Report of superintendent to governor. Sec. 140. The superintendent of banks shall reporl during the month of October of each year, to the governor, for submis- sion to the next ensuing session of the legislature : 1. A summary of the state and condition of every bank required to report to him, and from which reports have been received the preceding year, with an abstract of the whole amount of capital returned by them, the whole amount of their debts and liabilities, and the total amount of means and resources, specifying the amount of specie held by them at the time of the last report to him, and such other information in relation to such banks as, in his judgment, may be useful. "_'. A statement of all banks authorized by him to do business during the previous year, with their names and locations and dales of incorporation, and particularly designating such as have commenced business during the year. 3. A statement of the banks whose business lias been closed during the year. I. Any amendments to the banking law, which, in bis judg- ment:, may be desirable. 5. The mimes and compensation of all persons employed by him. and the whole amount of the receipts and expenses of the department during the year. 512 S I A.TUTES AT LARGE. <">. Tin- names of hanks placed in his hands in process of liquidation, and the amount of dividends paid thereon. Such report, and the usual number of copies for the use of the legislature, shall be printed and in readiness for distribution by the state printer, and one thousand copies shall be printed for the use of the department, the expense of which shall be charged among the general expenses of the department. Weekly bulletin to be posted by superintendent, and items thereof — File of bulletins. Sec. 141. 1. The superintendent of banks shall keep in his office, in a place accessible to the general public, a bulletin board upon which he shall cause to be posted at noon on Friday of each week a detailed statement, signed by him or, in case of his absence from San Francisco or inability to act, by the deputy superintendent in charge, giving the following items of general information with regard to the work of the department since the preceding statement : (a) The name of every bank that has filed in the banking department an application for authorization to commence busi- ness, its location and the date of filing of such application. ( I> I The name and location of every bank authorized by the superintendent of banks to commence business, its capital, sur- plus, and the date of authorization. ( c ) The name of every bank to which a certificate of author- ization has been refused by the superintendent of banks, and the date of notice of refusal. ('/) The name and residence of every person appointed by the superintendent of banks as a deputy, examiner or employee in the banking department, the title of the office to which appointed, the compensation paid, and the date of appointment. ( e i The date on which a call for a report by banks was issued by the superintendent of banks, and the day designated as the day with reference to which such report should be made. (f) The name and location of every bank whose creditors or depositors have been paid in full by the superintendent of banks and a meeting of whose stockholders shall have been called, together witli dale of notice of meeting and date of meeting. {,,) The na and location of every bank subject to the banking law whose affairs and business shall have been finally liquidated, or in course of liquidation. (h) The name and location of every bank which has applied for approval of a change of name, and the name proposed. BANKS AND RANKING. 513 2. Every such bulletin, after having been posted as aforesaid for one week, shall be placed on a file for such statements, to he kept in the office of the superintendent of hanks. All such state- ments shall be public documents, and at all reasonable times shall lie open to public inspection during usual banking hours. Official reports, prima facie evidence. Sec. 142. Every official report made by the superintendent and every report duly verified of an examination made, shall be prima facie evidence of the facts therein stated, for all purposes in any action or proceeding wherein such hank is a party. Neglect of duty by superintendent. Sec. 143. If the superintendent of banks shall have knowl- edge of the insolvency or unsafe condition of any hank mentioned in this act. and that it is unsafe or inexpedient to permit said hank to continue business, and shall neglect to forthwith take action as provided in sections one hundred thirty-three, one hundred thirty-four, and one hundred thirty-six of this act. he shall he guilty of a felony. Actions, duty of attorney general. Sec. 144. Whenever by the terms of this act a penalty or forfeiture is imposed, the same shall he recovered in an action brought at the request of the superintendent of banks by the attorney general, in the name of the people of the state, and the sum recovered shall hi' paid into the state hanking fund and used in payment of claims against the said fund. Construction of act. Sec. 14.". The powers, privileges, duties and restrictions con- ferred and imposed upon any corporation or individual existing ami doing business under the laws of this state are hereby abridged, enlarged or modified as each particular case may require, to conform to the provisions of this act, notwithstanding anything to the contrary in their respective articles of incorpora- tion or charters. The legality of investments heretofore made, or of transactions heretofore had. pursuant to any provisions of law in force when such investments were made or transactions had, shall not be affected by the provisions of this act, nor shall such provisions require the changing of investments for those named in this act. except as the same can he done gradually by the sale or redemption of the securities so invested in, in such manner as 51 I STATUTES AT TARGE. lo prevent loss or embarrassment in the business of- such hank, or unnecessary loss or injury to the borrowers on such security. Conflicting laws repealed. Sec. 146. All acts, or parts of acts, in conflict with this act are hereby repealed. Time act shall take effect. Sec. 147. This act shall take effect July first, L909. BATH HOUSES. An act to secure the safety of the public at bathing places upon the seacoast and lakes. Approved March 10, 1909; stats. 1900, p. 261. The i>< ople of the State of California, represented in senate and assembly, ('. and 1057, and Pol. C. subd. 4 of § 955. BONDS. 517 An act providing for the cancellation of bonds given to secure the performance of the terms and conditions of franchises or privileges granted by the legislative or other governing body of counties or municipalities, the release of the sureties on such bonds, and the filing and acceptance of new bonds in lieu thereof. Approved March 20, 1907; stats. 1907, p. 747. The people of the State of California, represented in senate and assembly, do enact as follows: Bonds to secure conditions of franchises, petition for release — Conditions of new bonds — Corporation surety. Section 1. That in all cases where a bond or bonds have been given to secure the observance, fulfillment and perform- ance of each and every term or condition, terms or conditions, or any thereof, of a franchise or privilege granted by a board of supervisors, board of trustees or common council, or other governing or legislative body of any county, city and county, city or town within this state, the governing or legislative body of such county, city and county, city or town may. upon the petition of the owner of said franchise or privilege, or upon the petition of the sureties on said bond or bonds, or upon the petition of any one or more of said sureties, cancel and annul said bond or bonds, and release the sureties thereon from any future liability, and accept and take in lieu thereof a new bond or bonds to be approved by the governing or legislative body of such county, city and county, city or town, in the same penal sum and containing the same terms and conditions as the bond or bonds so canceled and annulled ; which new bond or bonds must be executed by the owner of said franchise or privilege and by new sureties satisfactory to the governing or legislative body of such county, city and county, city or town ; provided, that any person, firm or corporation who acted as surety on the old bond or bonds so canceled and annulled may act as surety on the new bond or bonds, if the same be satisfactory to the governing or legislative body of such county, city and county, city or town. When old bond shall become annulled. Sec. '-. Immediately upon the acceptance by the governing or legislative body of such county, city and county, city or town of any new bond or bonds, tiled with the governing or legislative body of such county, city and county, city or town as herein 518 STATUTES AT LARGE. provided for, the old bond or bonds "shall become canceled and annulled, and the sureties thereon shall by such cancellation and annulment be released from any future liability on such old bond or bonds, but such cancellation and annulment shall not release said sureties from any past liability ; and thereafter the new bond or bonds, herein provided for, shall take the place of such old bond or bonds. Time act shall take effect. • Sec. 3. This act shall take effect immediately. BRIDGES. An act to provide for bridges across navigable streams, and across estuaries, ponds, swamps, or arms of bays that may be outside of the line of navigable waters. Approved March 14, 1881.; stats. 1881, p. 76. The people of the State of California, represented in senate and assembly, do enact as follows: Power of supervisors to erect bridges or grant franchises. Section 1." The power to erect bridges on public highways across navigable streams in this state, or to grant franchises to individuals or corporations for the same, is hereby granted to the boards of supervisors of the several counties of the state, under the restrictions of this act. Where two counties interested, which one to control. Sec. 2. The power to grant franchises to individuals or cor- porations to construct bridges, and the regulation of tolls thereon, shall be exercised by the county on the left bank of all streams. Supervisors may join, when navigable stream. Sec. 3. Where a navigable stream is the boundary line between the counties, the boards of supervisors of such coun- ties may join in the construction of a bridge, upon such terms as may be agreed upon ; provided, however, that in case of a failure to agree, either county may build the bridge and main- tain control thereof. BRIDGES. 51D State engineer to be notified — Draw and length of spans. Sec. 4. Whenever the supervisors of any county or counties desire to erect a bridge on any public highway, or to grant the privilege so to do to any individual or corporation, across a navigable stream, under the provisions of this act, said board or boards shall notify the .state engineer of such purpose, and of the precise point where such bridge is proposed to be located. The state engineer shall, within ten days of the receipt of such notice, designate the width of the draw to be made in such bridge, and also the length of the spans necessary to permit the free flow of water. Change of plans— Hearing before state engineer. Sec. 5. The communication from the state engineer, fixing the draw and spans, shall be spread upon the minutes of the board, and any bridge constructed at that point shall be in conformity therewith ; provided, however, that the state engineer may, upon hearing before him. had upon application of any per- son or body interested, made within ten days after the receipt by said board of supervisors of said communication of said engineer, change his first plans, in which case the modified plans must be so spread upon the minutes, and shall stand in the place of the original ; provided, however, that before such hearing is had, the said engineer must give ten days' notice, by publication in some newspaper published in the county or coun- ties from which the application came, of the time and place of the hearing. Surveyor general to act in certain contingencies. Sec. 6. In case of the absence or inability of the state engineer to act, the duties devolving upon him under this act shall be performed by the state surveyor general. Rates of toll, by whom fixed, when stream is navigable. Sec. 7. When a bridge shall be built on a navigable stream, by one county, or two counties, it may be absolutely free, or tolls sufficient to pay in whole, or in part, for the construction, and to keep up the repairs and expenses thereof, may be charged ; the rate to be fixed by the board of supervisors of the county in which the same is located, or, if located in two coun- ties, then by the boards of supervisors of the two counties ; or if there be any disagreement between said boards, as to impos- ing or removing tolls, or the rate, the matter in dispute shall be .VJII STATUTES AT LARGE. referred to the board of supervisors of some neighboring county for determination, and its decision, communicated in writing to the clerks of the said boards respectively, shall be final ; and if tolls are fixed or removed thereby, the same shall take effect on the tenth day from the date of such written determination. Supervisors have power to erect bridges at expense of county. Sec. 8. The board of supervisors, or other governing body of any city and county, or county, in this state, shall have power to declare that it is necessary for the public convenience to have a bridge or bridges built across any estuary, swamp, pond, or arm of a bay that may lie or extend into the county, or city and county, and prescribe the points between which said bridge or bridges shall be built, and when they shall have speci- fied the points between which it is. in their judgment, necessary to build the said bridge or bridges, they may let contracts to build the bridges, as aforesaid, and pay for the same out of the general fund of the city and county or county. Time act shall take effect. Sec. !>. This act shall take effect immediately. 123 Cal. 181. (For repairing and reconstructing, see act of February 25, 1897; following: also act of March 2.°». 1907, for adjoining coun- ties.) An act concerning bridges across navigable streams. Approved February 25, 1897; stats. 1897, p. 21. The people of the State of California, represented in senate and assembly, do enact as fallows: Power of supervisors to reconstruct or replace bridges — Agree- ment with corporations. Section 1. The board of supervisors of any county in this state now controlling or maintaining, by virtue of any statute. any bridge across any navigable stream wholly or in part within the boundary lines of any municipal corporation, is hereby authorized and empowered, whenever it may become necessary, in the interest of commerce or by reason of any such bridge being out of repair, to reconstruct and rebuild any pari of such BRIDGES. 521 bridge, or replace said bridge by a new structure, or with the consent of the governing bodies of such municipalities change the location of such bridge to such place on such stream as may be better suited to its use. or to the vise of such navigable stream : and the board of supervisors of any county is hereby authorized to abandon any such existing bridge and rebuild a new bridge at such changed location, and the board of super- visors of any such county so rebuilding and reconstructing said bridge may enter into an agreement with any person or corpo- ration, now maintaining any bridge across any such navigable stream, for the building of a joint bridge for the purpose of pre- venting the impeding of commerce on such navigable streams, and of apportioning the expense between said county and said person or any corporation, in such manner as may be agreed upon between said county and said person, or corporations. Division of expense. Sec. 2. The expense of said reconstruction, or the building of a new bridge, to be payable out of the same fund as is now provided by law for the maintenance and repair of any such bi'idge ; provided, that in case said county should make such agreement with said person or corporation for the building of any joint bridge, that only the county's portion of said joint bridge, as may be settled by said agreement, shall be paid from the said funds; and, provided, that in no event shall the county pay more than one half the cost of construction, repair, or reconstruction of any such joint bridge. Repeal of conflicting acts. Sec. 3. All acts or parts of acts in conflict herewith are hereby repealed. Time act shall take effect. Sec. 4. This act shall take effect from and after its passage. I As to construction of bridges, etc.. see act of March 14, 18S1, fint' ■; see, also, act of March 23, 1907, post.) 522 STATUTES AT LARGE. An act to enable adjoining counties to enter into agreements for the construction, rebuilding, replacing, or relocation of bridges over navigable waters between said counties, jointly with other persons or corporations. Approved March 23, 1907; stats. 1907, p. 982. The people of the State of California, represented in senate and assembly, do enact as follows: Bridges between two counties, provision for joint construction and repair. Section 1. In case it shall appear to the boards of super- visors of two adjoining counties that any bridge shall be neces- sary for highway purposes, over any navigable river, stream, or inlet of the sea, between said counties, or if any bridge exist- ing thereover and used wholly or in part for highway purposes, (whether the same is owned by said counties or either of them, or used by them or either of them by agreement with the owner thereof,) shall, in the interests of commerce, or by reason of such bridge being out of repair or deteriorated beyond reasonable repair, require reconstruction, or rebuilding, or replacing by a new structure, or its location to be changed to such place on such navigable river, stream, or inlet of the sea, as may be better suited to its use, or to the use of such navigable water, or may tend to prevent obstruction to commerce thereon, the boards of supervisors of such counties may, in their discretion, enter into an agreement with any person or corporation for the building of a joint bridge, or the reconstruction, or rebuilding, or replacing by a new structure of such existing bridge, or the rebuilding thereof at another location, and the joint use of the same there- after by such person or corporation, aud said counties or the public, and for apportioning the expense of such joint recon- structed or relocated bridge between said counties and each of them and such persOD or corporation jointly using or to use the same, and to provide for the construction and use thereof in such manner and upon such terms and conditions as may lie agreed upon between such counties and such person or corporation. In such case none of the provisions of subdivision four of section twenty-five of an act entitled "An act to establish a uniform system of county and township government," approved April 1, L897, shall lie applicable thereto; provided, that in no event shall either county agree to contribute more than one third of the cost BRIDGES. 523 of construction, reconstruction, relocation, or repair of any such joint bridge. Time act shall take effect. Sec. 2. This act shall take effect immediately. (See, also, acts of March 14, 1881, and February 25, 1897, ante. ) BROKERS. An act fixing the rates of interest and charges on loans upon chattel mortgages on certain personal property, and pre- scribing penalties for the violation of the act. Approved March 20, 1905; stats. 1905, p. 422. Unconstitu- tional. {Ex parte Sohncko, 14 8 Cal. 262.) An act to provide for the incorporation of associations for lending money on personal property, and regulating the same, and to forbid certain loans of money, property or credit. Approved March 21, 1905; stats. 1905, p. 711. Unconstitu- tional. (Ex parte Sohnckr, 148 Cal. 262.) An act to define personal property brokers and regulate their charge and business. Approved April 16, 1909; stats. 1909, p. 969. The people of the State of California, represented in senate and assembly, do enact as follows: Personal property broker defined. Section 1. That every person or corporation engaged in the Imsiness of loaning or advancing money or other thins; and taking. in whole or in part as security for such loan or advance any chattel mortgage, bill of sale or other obligation >>v contract involving the forfeiture of rights in or to personal property, (he 524 STATUTES AT LARGE. use or possession of which is retained by other than the mort- gagee or lender, or engaged in the business of loaning or advanc- ing money or other thing, and taking either in whole or in part as security therefor any lien on, assignment of or power of attorney relative to wages, salary, earnings, income or commis- sions, shall lie held, and, for the uses and purposes of this ad. is hereby declared and defined to be a personal property broker. Percentage that may be charged. Sec. 2. Such personal property broker may charge, receive and collect a benefit or percentage upon money or other thing advanced, or for the use and forbearance thereof, of five per centum per month where such loan or advance is made upon security properly falling within the scope of business as set forth in section one hereof. Further charges forbidden — Exception. Six'. 3. No further or other charges either for recording, insuring or examining the security or property, or for the drawing, executing or filing of papers, or for any services or upon any pretext whatsoever beyond the aforesaid charge for interest or discount shall lie asked, charged, or in any wax- received, where the same would thereby make a greater charge for the money or thing advanced than the aforesaid rate of five per centum per month, and where made, all such charges shall lie considered and be of the same effect as so much added interest ; provided, however, that with the consent of the borrower he may be required to pay the fees or charges actually expended where the same are made necessary by law to give full legal effect to any instrument given hereunder. Excess of legal rate forbidden. Sec. 4. No contract of any kind or nature made by any personal property broker which comes within the scope of business as set forth in section one hereof, or which in any way involves any security given to secure the performance of such contract, shall be valid or of any force, virtue or effect, either al law or in equity, if there is therein or thereon directly or indirectly charged, accepted or contracted to lie received or paid, either in money, goods, discount, or thing in action, or in any oilier way. a greater benefit, rate of discount, or interest than the rale of five per centum per month; and if a greater benefit, rate of discount or interest than five per centum per BROKERS. 52o month is directly or indirectly advanced or paid upon any such contract as is in this section designated, the excess above the said rate of five per centum per month so advanced or paid may be demanded and recovered by the person or his legal rep- resentatives or assigns who advanced or paid the same from the person or corporation either to whom or for whose use or benefit such payment or advance or any part thereof was made. Loan tickets. Sec. 5. Whenever a loan or advance shall be made, renewed or extended, hereunder there shall be given to the borrower a ticket or memorandum plainly inscribed with the name of the person or corporation making the loan, and members or general partners of the same if it be a firm, partnership or association, and further designating the number and nature of the instru- ments taken as security, the number of notes and amount of each, and the name of the party or parties in whose favor each of the aforesaid papers arc executed, when the same are payable, the amount actually advanced thereon, the amount including all interest and expenses charged or to be paid for such loan or advance, and copies of sections two, three and four of this act. Penalty for violation of act. Sec. 6. The failure of any person or corporation, or any employee, employees, agent, agents, representative or representa- tives making, renewing or extending a loan or advance properly falling within the scope of business as set forth in section one of this act to comply witli any or any part of the provisions of section five hereof, shall be punishable by a fine of nol to exceed fifty dollars for the first offense, and by a fine of not to exceed two hundred dollars for each subsequent offense. 526 STATUTES AT LARGE. BUILDING AND LOAN COMMISSIONERS. An act creating a bureau of building and loan supervision; pro- viding for the appointment of administration officials there- for to be known as the building and loan commissioners; prescribing their duties, powers and compensation; providit g for a secretary, his powers and compensation; providing for the rental of offices for the use of the bureau and for travel- ing and office expenses; providing a system for licensing building and loan and other associations, and for assessing and collecting the license fees necessary to meet the salaries and other expenses; providing a course of procedure where violations of law, or unsafe practices are found to exist, or . are reported by the commissioners to the attorney general; providing for involuntary liquidation by trustees, and pro- ceedings in connection therewith; providing for exemption of property of associations in liquidation from attachments, executions and liens, pending liquidation; providing for and requiring associations to procure licenses, pay assessments levied for pro rata of salaries and expenses, and to make and file reports; providing penalties for violations of law and orders of the commissioners; providing for succession in office, and repealing all acts and parts of acts in conflict herewith. Approved March 21, 1905; stats. 1905, p. 659. Amended March 23, 1907; stats. 1907, p. 931. Amended March 20. 1909; stats. 1909, p. 541. The people of the State of California, represented in st nate and asse7nbl.il, do enact as follows: Powers of bureau — Definition of building and loan associations. Section 1. There is hereby created a bureau, to be known and designated as the "Bureau of Building and Loan Super- vision," with powers of supervision, examination and license of all building and loan associations, mutual loan associations, cooperative home associations, and all other corpora I ions, asso- ciations and societies, whenever, wherever and however formed, which, in the judgment of the administration of said bureau, are based, or are operating on plans or methods similar to building and loan associations as defined in section six hundred and forty-eight of the Civil Code; it is also charged with the enforcement of all laws designed for the formation, government or operation, in this state, of any such association, corporation or society. BUILDING AM) LOAN COMMISSIONERS. •>-' Number of commissioners — Appointment — Qualifications — Secre- tary. Sec. 2. The administration of said bureau shall be vested iu two commissioners, to be known and designated as the "Build- ing and Loan Commissioners," who shall be appointed by the governor (except as herein provided) and commissioned to hold office for the term of four years and until their successors shall be appointed and have qualified. They must be citizens of this- slate and residents of different counties; and they must not be in any way connected with any association, corporation or society coming- under their supervision. They shall be author- ized and empowered to appoint a secretary, with powers of examination the same as their own, who must be a practical, skilled accountant, fully conversant with building and loan accounts. Salaries, and traveling and office expenses. SEC. ,">. The commissioners shall each receive a salary of three thousand dollars per annum, and their secretary shall receive a salary of not exceeding eighteen hundred dollars per annum. There shall also be allowed and paid the necessary traveling expenses of the commissioners and their secretary, not to exceed the sum of two thousand dollars per annum. The commissioners shall procure and have an office in the city of San Francisco, which office shall be kept open for business every business day, during such hours as are commonly observed by the banks of that city as banking hours, and they may also, when in their judgment it is necessary, procure and have an office in the city of Los Angeles. For said offices there shall be allowed and paid a total rental of not exceeding one hundred dollars per month. Said commissioners may also provide such fuel, stationery, printing, postage, office help and other neces- sary conveniences as may be requisite in such office, at a cost not to exceed in the aggregate, the sum of five hundred dollars per annum. All said salaries and expenses shall be audited and paid in the same manner as the salaries and expenses of other stale officers. [Sec. 3 amended March 20, 1909; in effect immediately.! Oath of office ar.d bond required. Sec. 4. Before entering upon their respective duties the commissioners musl each execute an official bond in the sum of five thousand dollars and the secretary a like bond in the 52S STATUTES AT EARC1E. sum of two thousand dollars, and each must take the oath of office as prescribed by the Political Code for state officers in general. Issuance of licenses — Report to governor. Sec. 5. It shall be the duty of the commissioners to furnish l<> all associations, corporations or societies, which, in their judgment, legally come under their jurisdiction, and that have otherwise complied with the requirements of law, a license authorizing them to transact business for one year from the date of said license; to receive and place on file in their office the annual or other reports required by law to be made by building and loan associations or other corporations or societies licensed by them ; to supply each with blank forms for such statements ; and to make, on or before the first day of October in each year, a tabulated report to the governor of this state showing the condition of all such associations, corporations or societies reporting to them, with such recommendation as they may deem proper, accompanied by a detailed statement of all moneys received by them since their last .report, and the dis- position thereof. Annual examinations by commissioners. Sec:. 6. It shall be the duty of one or both of the commis- sioners, in person, at least once in each year, without previous notice, to visit and examine into the affairs of every such asso- ciation, corporation or society licensed by them, incorporated or doing business in this state; on such occasions they shall have free access to all' the books, records, securities and papers of every such association, corporation or society and shall first count the cash and check the bank balance of such corporation or association with the proper amount of fuuds as shown by the books to be on hand and at the date and hour of such examina- tion, and shall then examine and verify the books, accounts, and securities, and, so far as possible and consistent, the values of all property owned or held as collateral security for moneys loaned, and otherwise use reasonable diligence to ascertain the financial condition and solvency thereof. They and their sec- retary shall have power to administer oaths in the line of duty, and to examine under oath the officers, employees and agents, or the custodian or receiver, relative to any or all of the business thereof. The commissioners or their secretary or representa- BUILDING AND LOAN COMMISSIONERS. 529 tive shall receive for any examination into the books and affairs of any such association, corporation or society formed outside of the State of California and applying for a license to do business in this state, their reasonable expenses, which shall be paid by the association, corporation or society so examined ; provided, that they may accept the result of any such examination made by the duly constituted authorities of any state having similar laws of supervision. Books of associations — Valuation of property — Appointment of appraisers — Sworn report to commissioners. Sec. 7. To facilitate the examinations specified in the fore- going section, they shall require every such association, cor- poration or society to keep its books in such form as to accu- rately show its assets and liabilities in detail and to keep records written in ink, showing the appraised and assessed values of the real estate security held in connection with each loan, and signed in each case by the appraiser, officer or committee charged with making such estimated valuations. The commissioners shall make a revaluation of the real estate owned, and of the other securities of any such association, corporation or society licensed by them, on which the loan payments may be delin- quent for six months or more, and may, for that purpose, appoint local appraisers, who shall be disinterested persons, at the expense of such association, corporation or society ; the expense of such appraisement to be fixed by the commissioners, but not to exceed the sum of five dollars for property located out- side of any incorporated limits and three dollars for property located inside of any incorporated limits for each property so examined and appraised. Each appraiser so appointed shall be required to make a sworn report to the commissioners of his estimated valuations of all property so examined and appraised. Power of commissioners to issue subpoenas. Sec. 8. The commissioners shall have power to issue sub- poenas and require attendance of any or all trustees, or agents of any such association, corporation or society, and such other witnesses as they may deem necessary, in relation to its affairs, transactions and condition, and any such person so served with such subpoena may upon application of the commissioner be required by order of the superior court of the county where the corporation, association or society has its principal place 23— cl • >•;<> STATUTES AT LARGE. of business, to appear and answer such pertinent questions as may be put to him by such commissioner and be required to produce such books, papers or documents in his possession as may be required by such commissioner. Powers and duties of commissioners when associations conduct business in an unsafe or unauthorized manner — Duty of attorney general, and judicial proceedings — Liquidation. Sec. 9. If the commissioners, upon any examination, or from any report made to them or to the shareholders, shall find thai any association, corporation or society licensed by them, is vio- lating- the provisions of its charter or of the laws of this state provided for its government, or is conducting its business in an unsafe or unauthorized manner, they may, by an order addressed to the association, corporation or society so offending, direct a discontinuance of such violations or unsafe practices and a con- formity with all the requirements of law ; and if such association, corporation or society shall refuse or neglect to comply with such order within the time specified therein ; or if it shall appear to the commissioners, in their opinion, that any such association, corporation or society is in an unsafe condition, or is conducting its business in an unsafe manner, such as to render its further proceeding hazardous to the public or to those having funds in its custody, they shall notify the attorney general of such facts and furnish him with a statement showing its condition, as the same may have been found to exist ; at the same time they shall notify the officers of such association, corporation or society of the fact of such report having been made and direct them to cease the transaction of any new business, and to hold all moneys, securi- ties and property intact, pending the action of the attorney general on such report. The attorney general shall thereupon apply to the superior court, of the county in which such associa- tion, corporation or society has its principal place of business, to issue an injunction restraining it, in whole or in part, from further proceeding with its business until a hearing can be had. Such court may, in such application, issue such injunction, and after a full hearing, may dissolve or modify it, or make it per- petual, and may make such orders and decrees according to the course of proceedings in equity, to restrain or prohibit the further prosecution of business by such association, corporation or society, as may be needful in the premises; and may appoint one or more receivers to take possession of its property and BUILDING AND LOAN COMMISSIONERS. 531 effects, subject to such directions as may from time to time bo proscribed by the court ; or it may, by its decree, order and direct that, in lieu of the appointment of a receiver, the business and affairs be liquidated by a board of trustees equal in number to the board of directors, to be elected by the shareholders, at a meeting thereof, to be called for such purpose and held within two weeks from and after the first Monday succeeding the date of such order and decree ; such meeting to lie called and held on the order of the commissioners, one of whom shall be presenl and preside until such election shall be had ; whereupon he shall report the result to the proper court, and thereupon the term of office of the existing board of directors and of all the officers shall cease and determine. Such board of trustees, when so elected, shall at once assume office and have possession and con- trol of all the property and assets for the purpose of liquidation ; and such liquidation shall be conducted by such board under the supervision of the commissioners, who shall have full power to limit the time within which it shall be accomplished, and to limit the number of employees and the salaries and expenses that shall be allowed and paid. The issuance of an injunction, in the manner herein provided, shall operate to dissolve or stay any and all attachments or executions initiated or levied within thirty days next preceding the date of notification of the attorney general by the commissioners ; and, pending the process of liqui- dation as ordered by the court, no attachment or execution shall be levied, nor lien created, upon any of the property of such association, corporation or society. Schedule of property when receivers are appointed. Sec. 10. Whenever a receiver or receivers are appointed, or trustees elected in lien thereof, the commissioners shall require the president and secretary of such association, corporation or society to, and such officers shall, make a schedule of all its property and make oath that such schedule sets forth all the property which such association, corporation or society owns or is entitled to, and deliver said schedule and possession of the property to the receivers or to the trustees, and a copy of such schedule to the commissioners, who may at any time examine under oath such president and secretary, or other officers, to determine whether or not all the property which such associa- tion, corporation or society owns, or is entitled to. has been transferred lo such receivers or trustees. 532 STATUTES AT LAEGE. Annual report required of receivers or trustees. Sec. 11. Receivers, or trustees elected in lieu thereof, must, at least annually, make clue report of all their doings and accounts to the proper court, and immediately thereafter file a copy thereof with the commissioners ; and the commissioners shall, at least once in each year and as much oftener as they may deem expedient, examine the accounts, doings and reports of such receivers or trustees, and, for such purpose, shall have full and free access to all books, accounts and vouchers relating to any such liquidation, and any defect, irregularity, or mis- conduct on the part of such receivers or trustees, as they may find to exist, shall be. by the commissioners, reported to the proper court. [Section 11 amended March 20, 1900; in effect immediately.] Upon request, commissioners to investigate affairs of associa- tion. Sec. 12. Upon the certificate, under oath, of any ten or more officers, trustees, creditors, shareholders or depositors of any such association, corporation or society, setting forth their interest and the reason for the making of such examination, directed to the commissioners, and requesting them so to do, they shall forthwith make a full investigation of its affairs, in the manner provided. Neglect of duty by commissioners is cause for removal. Sec. 13. If either of the commissioners, having knowledge of the insolvent condition, or of any violation of law or unsafe practice of any such association, corporation or society under their supervision, such as renders, in their opinion, the conduct of its business hazardous to its shareholders, creditors or depos- itors, shall fail to take the proper action required by this act, or shall refuse or neglect to perform the official duties pertain- ing to his office, then upon conviction thereof the office of such i ominissionor shall be declared vacant by the governor, and a successor be appointed to fill the unexpired term. Assessment upon associations to pay salaries and expenses of commissioners. Sec. 14. To meet the salaries and expenses provided for by this act, the commissioners shall require every association, cor- poration or society licensed by them or coming under their supervision to pay in advance, to them, and prior to the issu- BUILDING AND LOAN COMMISSIONERS. 533 ance of any license, its pro rata amount of all such salaries and expenses, and it is hereby made the duty of every such associa- tion, corporation or society to pay the same ; such pro rata shall be fixed and determined by the proportion which its assets bear to the aggregate assets of all such associations, corporations, or societies, receiving licenses, as shown by the last reports of such corporations, associations, or societies to the commissioners. On or before the thirtieth day of December, in each year, the commissioners shall notify each of such associations, corpora- tions or societies, through the United States mail, of the amount assessed and levied against it and that the same must be paid within twenty days thereafter; and should payment not be made to them within said twenty days, they shall then assess and col- lect a penalty, in addition thereto, of ten per cent per day for each day that such payment may be delayed or withheld ; pro- vided, however, that in the levy and collection of such assess- ment, no such association, corporation or society shall be assessed for, nor be permitted to pay less than ten dollars per annum, and any such association hereafter formed in this state, shall be required to pay not less than one dollar per month for the unex- pired term ending December thirty-first, succeeding application ; and in like manner any such association organized outside of this state shall be required to pay not less than three dollars per month, for such unexpired term, for its first license. Authority to transact business to be obtained from commis- sioners — Certified copy of articles of incorporation to be filed — Renewal of license — Revocation. Seo. 15. It shall be the duty of the commissioners to require every such association, corporation or society coming under their supervision, to procure from them, prior to the transaction of any business, a certificate of authority or license to transact business in this state ; and it is hereby made the duty of every such association, corporation or society to comply with such requirement. To procure such license, there must be filed with and approved by the commissioners, a certified copy of its articles of incorporation, constitution and by-laws and all sub- sequent amendments thereto, accompanied by the license fee herein provided for ; and after the expiration of the term for which a license may have been granted to it. no such associa- tion, corporation or society shall be permitted to continue to transact business without first procuring a renewal of such 534 STATUTES AT LARGE. license on the terms provided in this act, and any such asso- ciation, corporation or society violating the provisions hereof shall be subject to a penalty of ten per cent per day of the amount of the license fee required to be paid under section fifteen of this act, in addition thereto, for each day during the continuance of such offense. The commissioners are authorized and empowered to revoke the license of any such association, corporation or society under their supervision, the solvency whereof may have become imperiled by losses or irregularities ; and immediately upon the revoking of any such license they shall report the facts to the attorney general, who shall there- upon take such proceedings as are provided in section nine of this act. Associations to make annual report of financial condition. Sec. 16. The commissioners shall require every association, corporation or society licensed by them, and including associa- tions in liquidation, within thirty days after the close of its annual fiscal term, to make a report to them in writing, verified by the oath of its president and secretary, showing accurately its financial condition at the close of such term; such report shall also include all the receipts and disbursements and income and expenses for the term, together with such statistical and other information as may be deemed essential ; all and every of such reports shall be in such form as the commissioners may pre- scribe, and upon blanks to be by them furnished therefor. Every such association, corporation or society is hereby required to make and file all such reports within the time specified herein, and for failure or neglect so to do shall be subject to a penalty of ten dollars per day for each and eveiw day the same shall be delayed or withheld. Enforced collection of assessments — Deposit of moneys col- lected. Sec. 17. The collection of all moneys assessed as herein pro- vided, for the payment of salaries and annual expenses, or for- feitable as fines for failure to make payments of assessments, procure licenses, or make and file reports as herein specified, and due from any such association, corporation or society coming within the provisions of this act, or imposed as a penalty for violation of any order or summons, may be enforced by the com- missioners, by action instituted in any court of competent juris- diction ; and all moneys collected or received by the commissioners BUILDING AND LOAN COMMISSIONERS. 535 under this act, shall be deposited with the state treasurer, to be credited to a fund to be known and designated as the "building and loan inspection fund" ; which said fund shall only be used in defraying the salaries and expenses provided for by this act. Term of present commissioners not affected. Sec. 18. This act shall not be construed as affecting the terms of office of the commissioners appointed under and by virtue of an act entitled "An act creating a board of commis- sioners of the building and loan associations and prescribing their duties and powers," approved March twenty-third, eighteen hundred and ninety-three, and acts amendatory thereof, and such commissioners are hereby created the building and loan commis- sioners for the unexpired terms for which they were appointed, and they and their secretary are hereby vested with all the powers and duties, and are entitled to all the emoluments herein provided for ; and they and their successors in office, as the building and loan commissioners herein provided for, shall suc- ceed to all the rights, privileges and benefits, and to the control and possession of all records, property and funds in the posses- sion of or enjoyed by the board of commissioners of the building and loan associations appointed under and by virtue of said act of March twenty-third, eighteen hundred and ninety-three. Repeal of conflicting acts. Sec. 19. All acts and parts of acts, including an act entitled "An act creating a board of commissioners of the building and loan associations and prescribing their duties and powers," approved March twenty-third, eighteen hundred and ninety- three, and all acts amendatory thereof, are hereby repealed. Time act shall take effect. Sec. 20. This act shall take effect and be in force from and after its passage. 536 STATUTES AT LARGE. CEMETERIES. See, also, Crematories. Sec Civ. C. §§608-610, for incorporation of cemetery corpora- tions. An act to authorize the incorporation of rural cemetery asso- ciations. Approved April IS, 1S59; stats. 1859, p. 2S1. Amended January 13, 1804; stats. 18C3-4, p. 12. Amended March 31, 1891; stats. 1891, p. 264. Supplemented March 1, 1899; stats. 1899, p. 3G. Ed. Note. — This act was repealed by section 2S8 of the Civil Code (in effect January 1, 1873), and is applicable only to such corporations as were organized under its authority prior to that time, but is included in this compilation of present laws for the reason that naturally, owing to the inherent nature of such cor- porations, a large number throughout the state are still in existence and operating under the provisions of this statute. The people of the State of California, represented in senate and assembly, do enact as follows: Formation of corporation and election of trustees. Section 1. Any number of persons residing in this state, not less than seven, who shall desire to form an association for the purpose of procuring and holding lands, to be used exclusively for a cemetery, or place for the burial of the dead, may meet at such time and place, as they, or a majority of them may agree, and appoint a chairman, or secretary, by a vote of the majority of the persons present at the meeting, and proceed to form an association, by determining on a corporate name, by which the association shall be called and known, by determining on the number of trustees, to manage the concerns of the association, which number shall not be less than six, nor more than twelve, and thereupon may proceed to elect, by ballot, the number of trustees, so determined on, and the chairman and secretary shall, immediately after such election, divide the trustees, by lot, into three classes : those in the first class to hold their office one year ; those in the second class, two years ; and those in the third class, three years; but the trustees of each class may be reelected, if I hey shall possess the qualification hereinafter mentioned. The inciting shall also determine on what day, in each year, the future annual elections of trustees shall be held. CEMETERIES. 537 Filing of certificate of meeting and election. Sec. 2. The chairman and secretary of the meeting shall, within I hive days after such meeting, make a written certificate, and sign their names thereto, and acknowledge the same before an officer authorized to take proof and acknowledgment of con- veyances, in the county where such meeting shall have been held, which certificate shall state the names of the associates determined upon by the majority of the persons who met ; the number of trustees fixed on to manage the concerns of the asso- ciation ; the names of the trustees chosen at the meeting, and their classification, and the day fixed on for the annual election of trustees; which certificate it shall be the duty of the chair- man and secretary of such meeting to cause to be filed and recorded in the office of the county clerk of the county in which the cemetery grounds are situated, in a book to be appropriated to the recording of certificates of incorporation. Powers of association — Appointment of officers. Sec. 3. Upon such certificate, duly acknowledged and filed as aforesaid, being recorded, the association mentioned therein shall be deemed legally incorporated, and shall be a body politic and corporate, in fact and in name, by the name stated in the certificate, and by their corporate name, have succession and power : First — To sue and be sued in any court. Second — To make and use a common seal, and alter the same at pleasure. Third — To purchase, hold, sell, and convey, such real and per- sonal estate as the purposes of the incorporation shall require. Fourth — To appoint such officers, agents, and servants, as the business of the corporation shall require, to define their powers, prescribe their duties, and fix their compensation. Fifth — To require of them such security as may be thought proper for the fulfillment of their duties, and to remove them at will, except that no trustee shall be removed from office unless by a vote of two thirds of the whole number of trustees, or by a vote of a majority of the trustees, on a written request, signed by one half of the lot owners. Sixth — To make by-laws not inconsistenl with the laws of ibis slate, for the organization of the company, the management of the property, regulation of Hs affairs, and for carrying on all kinds of business within the object and purposes of the company. 538 STATUTES AT LARGE. The affairs and property of such associations shall be managed by the trustees, who shall annually appoint, from among their number, a president and vice-president, and shall also appoint a secretary and treasurer, who shall hold their places during the pleasure of the board of trustees, and the trustees may require the treasurer to give security for the faithful performance of the duties of his office. Acquiring of land for cemetery purposes — Sale of lots or plats. Sec. 4. Any association incorporated under this act, may take, by purchase or devise, and hold, within the county in which the certificate of their incorporation is recorded, not exceeding three hundred and twenty acres of land, to be held and occupied exclusively for a cemetery for the burial of the dead. Such land, or such parts thereof as may from time to lime be required for that purpose, shall be surveyed and sub- divided into lots or plats of such size as the trustees may direct, with such avenues, paths, alleys, and walks, as the trustees deem proper; and a map or maps of such surveys shall be filed in the office of the county recorder of the county in which the land shall he situated. And after filing such map, the trustees may sell and convey the lots or plats designated upon such map. upon such terms as shall be agreed upon, and subject to such con- ditions and restrictions, to be inserted in or annexed to the con- veyances, as the trustees shall prescribe. The conveyances to be executed under the common seal of the association, and signed by the president or vice-president, and the treasurer of the asso- ciation. Any association incorporated under this act, may hold persona] property to an amount not exceeding five thousand dollars, besides what may arise from the sale of lots or plats. Annual election of trustees — Who qualified to vote. Sec. 5. The annual election for trustees, to supply the place of those wlmse term of office expires, shall be holden on the day mentioned in the certificate of incorporation, and at such hour and place as the trustees shall direct ; at which election shall be chosen such number of trustees as will supply the places of those whose term expires. The trustees chosen at any election subsequent to the first, shall hold their places for three years, and until others shall be chosen to succeed them. The election shall be by ballot, and every person of full age, who shall be (he proprietor of a lot or plat in the cemetery of the associa- CEMETERIES. 539 tion, containing not less than two hundred square feet of land, or if there be more than one proprietor of any such lot, or plat, then such one of the proprietors as the majority of joint pro- prietors shall designate to represent such lot or plat, may, either in person or by proxy, give one vote for each plat, or lot, of the dimensions aforesaid ; and the persons receiving a majority of all the votes given at such election, shall be trustees, to succeed those whose term of office expires. But in all elections after the first, the trustees shall be chosen from among the proprietors of lots, or plats, and the trustees shall have power to fill any vacancy in their number occurring during the period for which they hold their office. Public notice of the annual elections shall lie given in such manner as the by-laws of the corporation shall prescribe. Annual report of trustees. Sec. 6. The trustees, at each annual election, shall make reports to the lot proprietors of their doings, and of the manage- ment and condition of the property and concerns of the asso- ciation. If the annual election shall not be held on the day fixed in the certificate of incorporation, the trustees shall have power to appoint another day. not more than sixty days thereafter, and shall give public notice of the time and place at which time the election may be held, with like effect as if holden on the day fixed on in the certificate. The office of the trustees chosen at such time, to expire at the same time as if they had been chosen al I ho day fixed by the certificate of incorporation. Issuance of bonds — Application of net income. Sec. 7. After its formation in the manner provided in the preceding section, the corporation shall proceed to purchase suit- able grounds for the proposed cemetery, and to the vendor thereof they are authorized to issue the bonds of the corporation for the amount of the purchase money, bearing interest not exceeding the rate of twelve per cent per annum, but payable out of sixty per cent of the proceeds of the cemetery, as the same shall be realized, and not otherwise. Sixty per cent at least of the pro- ceeds of all sales of lots, plats, or graves, shall be first appro- priated to the payment of the said bonds and interest aforesaid, payable at least once in three months to the bondholders, until all are paid, and the residue thereof to be used in preserving, improving, and embellishing the said cemetery grounds and the 540 STATUTES AT LAKGE. avenues or roads leading thereto, and to defraying the incidental expenses of the cemetery establishment; and after payment of thy purchase money and interest aforesaid, and all debts con- tracted therefor, and for surveying and laying out the land, the proceeds of all future sales shall be appropriated to the improve- ment, embellishment, and preservation of such cemetery, and for incidental expenses, and to no other purpose or object; provided, that any association incorporated under this act by the members of the Order of Free and Accepted Masons, the Independent Order of Odd Fellows, or by the members of any other benevolent or charitable society in the city and county of San Francisco, may apply the surplus or net income of such cemetery association to the board of relief or other committee established by such order or society for the purposes of charity. [Sect inn 7 amended January 13, 1SG4.] Vandalism. Sec. 8. Any person who shall willfully destroy, mutilate, deface, injure, or remove, any tomb, monument, grave-stone, building, or other structure, placed in any cemetery of any asso- ciation incorporated under this act, or any fence, railing, or other work, for the protection or ornament thereof, or of any tomb, monument, or grave-stone, or other structure aforesaid, or of any plat or lot within such cemetery, or shall willfully destroy, cut, break, or injure, any tree, shrub, or plant, within the limits of such cemetery, shall be deemed guilty of a misde- meanor, and such offender shall also be liable in an action of trespass, to be brought, in all such cases, in the name of such association, to pay all such damages as shall have been occa- sioned by his unlawful act, or acts. Such money, when recov- ered, shall be applied, by the trustees, to the reparation, or restoration, of the property so destroyed, or injured. Improvement or embellishment. Sic. 0. Any association incorporated pursuant to this act, may take and hold any property, real, or personal, bequeathed, or given upon trust, to apply the income thereof, under the direction of the trustees of such association, for the improve- ment or embellishment of such cemetery, or the erection or preservation of any buildings, structures, fences, or walks, erected, or to be erected, upon the lauds of such cemetery asso- ciation, or upon the lots, or plats, of any of tin- proprietors; or CEMETERIES. 541 for the repair, preservation, erection, or removal of any tomb, monument, grave-stone, fence, railing, or other erection, on or around any cemetery, lot, or plat, or for planting, or cultivating trees, shrubs, flowers, or plants, in or around any such lot, or plat, or for improving or embellishing such cemetery, or any of the lots, or plats, in any other manner or form, consistent with the design and purposes of the association, according to the terms of such grant, devise, or bequest. Exempt from taxation and sale on execution. Sec. 10. The cemetery lands and property of any associa- tion, formed pursuant to this act, shall be exempt from all public taxes, rates, and assessments, and shall not be liable to be sold on execution, or be applied in payment of debts due from any individual proprietors. But the proprietors of lots, or plats, in such cemeteries, their heirs, or devisees, may hold the same' exempt therefrom, so long as the same shall remain dedicated to the purpose of a cemetery ; and, during that time, no street, road, avenue, or thoroughfare, shall be laid through such ceme- tery, or any part of the lauds held by such association, for the purposes aforesaid, without the consent of the trustees of such association, except by special permission of the legislature of the state. Title to lots inalienable. Sec. 11. Whenever the said lands shall be laid off into lots, or plats, and such lots, or plats, or any of them, shall be trans- ferred to individual holders, and after there shall have been an interment in a lot, or plat, so transferred, such lot, or plat, from the time of such interment, shall be forever thereafter inalien- able, and shall, upon the death of the holder or proprietor thereof, descend to the heirs at law of such holder or proprietor, and to their heirs at law forever; provided, nevertheless, that any one or more of such heirs at law may release, to any other of the said heirs at law, his, her, or their, interest in the same, mi such conditions as shall be agreed on and specified in such release, which release shall be recorded with the county recorder of the county within which the said cemetery shall be situated ; '//c/ provided, further, that the body of any deceased person shall not be interred in such lot, or plat, unless it be the body of a person having, at the time of such decease, an interest in such lot or plat, or (he relative of some person having such interest, or the wife of such person, or her relative, except by the consent of all persons having an interest in such lot, or plat. 542 STATUTES AT LAKGE. Rights of former owners. Sec. 12. In case the grounds purchased for cemetery pur- poses, in accordance with section seven of this act, shall have been used as a cemetery previous to such purchase, then those who are lot owners, at the time of the purchase, shall have, and be entitled to, all the privileges they would be entitled to by purchase from a corporation formed as aforesaid. Owner of lot in cemetery may convey same when bodies are removed. Sec. 13. Whenever all the bodies buried in any lot or plot, in this act referred to, shall have been removed therefrom, with the consent of a majority of the board of directors of the cor- poration owning said cemetery, it shall be lawful for the owners of said lot or plot, with the consent of a majority of said directors, to transfer the same by deed. [Section 13 added March 31, 1891] 152 Cal. 468. An act supplemental to an act entitled "An act to authorize the incorporation of rural cemetery associations, 4 ' approved April 28, 1859, authorizing such association to erect, pur- chase, or lease buildings and furnaces and other works for cremation of human bodies; also, to erect or lease buildings in which shall be entombed only the ashes of cremated dead, to make provision for the care of the burial places and ashes of the dead; also, to provide for the cremation of the unclaimed dead and bodies liable, if interred, to spread disease. Approved March 1, IS!!!'; slats. 1899, p. 36. Ed. Note. — The date of approval of the act to which this art is supplemental, should be April 18, IS."):), instead of April 28, 1859, as it appears in the above title. The people of the State of California, represented in senate and assembly, do enact as follows: Cremation associations — Rights and privileges. Section 1. Associations incorporated under the act of which this act is supplementary, shall, in addition to the powers granted by said act, have authority to purchase, lease, or erect buildings and appliances to be used exclusively for the purpose of cremating human bodies, and they may purchase, or lease, and hold laud necessary for cremation imrposes, or for the erec- CEMETERIES. 543 tiou of columbai'iums for the entombing of the ashes of the cremated, when inclosed in metal, or stone, or cement vessels, and not otherwise; but no uncremated body shall be interred or placed for any time whatever inside of the walls, or in the walls, of a place where the ashes of the cremated are deposited. Care of property. Sec. 2. Such associations shall invest their funds and use the proceeds thereof, after current expenses are paid, for the perpetual care of grounds, lots, buildings, and niches, according to contracts made and to be made with patrons, and in con- ducting its business such association shall have the same powers granted by law to corporations in general; provided, they shall have no authority to contract any pecuniary obligation what- ever, nor shall they have power to levy or collect assessments. Municipal authorities may order cremation of unknown or pauper dead — Cremation not compulsory. Sec. 3. In case of epidemic or the prevalence of contagious diseases, or otherwise, the proper authorities of any county, city and county, city, or town, may order the unclaimed or unknown dead, and the dead who die in public institutions under the control of any county, city and county, city, or town, and the dead commonly buried at public expense, cremated, and their ashes immured, or otherwise preserved in receptacles in columbai'iums, or interred in burial places, and human bodies, and parts of bodies, used in medical or other schools (except specimens to be preserved) shall not be cast into the waters of the state, nor on the ground, nor in receptacles for refuse matter, nor in vaults, nor in sewers, but shall either be buried as deep in the ground as is by law required for dead bodies, or cremated, as in this agt provided. But the remains of a person shall not be cremated by compulsion, under the provisions of this section, if he or his family, or any member thereof, or his church or spiritual adviser objects. Penalty for violation of this act. Sec. 4. A violation of any of the provisions of this act is a misdemeanor. Time act shall take effect. Six:. 5. This act shall be in force from the day of its passage. (See, also, note to act of 1859, ante, to which this act is sup- plemental.) 544 STATUTES AT LAKGE. An act to provide the manner of execution of deeds by ceme- tery corporations. Approved March 26, 1805; stats. 1895, p. 75. The people of the State of California , represented in senate and assembly, do enact as follows: In whose name deeds shall be executed. Section 1. All deeds or conveyances executed by cemetery associations or incorporations within this state, shall be executed in the name of the corporation or association, under the seal thereof, by the president, or vice-president, and secretary thereof. Repeal of conflicting acts. Sec. 2. All acts and parts of acts in conflict with this statute, in so far as they conflict with the same, are hereby repealed. Time act shall take effect. Sec. .'!. This act shall take effeci and be in force from and after its passage. CERTIFICATES. An act providing for the issuance of duplicate certificates, where certificates issued under authority of law have been lost or destroyed by conflagration or other public calamity. Approved June 1G, 1906; stats. 1906, p. 71. The people of the State of California , represented in senate and assembly, do enact as follows: Issuance of duplicate certificates. Section 1. "Whenever any public board or officer is author- ized by law to issue any certificate of any kind, and the records in the office of such board or officer show the issuance of such certificate, and it is made to appear by affidavit that such cer- tificate has been lost or destroyed by conflagration or other public calamity, such board <>r officer may issue a duplicate of such certificate, which shall recite the issuance and loss or destruction of such original certificate, and shall have the same CERTIFICATES. 545 force and effect as such original certificate; provided, that this act shall not apply to certificates of acknowledgments. Time act shall take effect. Sec. 2. This acl shall take effect immediately. CHAMBERS OF COMMERCE. An act to provide for the formation of chambers of commerce, boards of trade, mechanic institutes, and other kindred protective associations. Approved March 31, 18G6; stats. 1S65-6, p. 469; amended 1867-8, p. 5 ; 1885, p. 76. Superseded by sections 591 to 592e of the Civil Code, as enacted in 1905. CHILDREN. An act for the incorporation of societies for the prevention of cruelty to children. Approved April 3, 1876; stats. 1875-0, p. 830. Subject-matter codified by the legislature of 1905 (see sections 607 to 607fif of the Civil Code). COMBINATIONS. An act to prevent combinations to obstruct the sale of live stock in the State of California. Approved February 27, 1893; stats. 1893, p. 30. The people of the State of California, represented in senate and assembly, do enact as follows: Combinations to prevent buying live stock prohibited. Section 1. It shall he unlawful for any two or more per- sons or corporations to eomhine or agree together to do any act which will, in any respect, prevent any person from buying live stock at any place in this state from any person having the 546 STATUTES AT LABGE. same for sale, either for himself or as the representative or agent of the owner of the same. Corporations prohibited. Sec. 2. It shall be unlawful for any corporation organized under the laws of this state, or any board of directors or trus- tees, or stockholders, or agents, or officers of any corporation, to have, pass, or enforce any rule, by-law, or regulation whereby any officer, stockholder, member, shareholder, agent, servant thereof, or any other person in any way interested in or con- nected with such corporation, shall in any respect be prohibited, prevented, or enjoined from buying live stock from any other person having such live stock for sale, either as owner thereof, or as the agent, representative, or assistant of such owner, in any market in this state, where live stock is brought to be sold. By-laws of corporations. Sec. 3. Every rule, regulation, or by-law of any corporation doing business in this state, which has for its purpose, or which, directly or indirectly, tends to prevent its members or stock- holders from freely purchasing live stock from any person law- fully having the same for sale, upon any live stock market of this state, are hereby declared to be contrary to the public golicy of this state, and unlawful and void; and any person or persons who shall attempt, directly or indirectly, to enforce any such rule, regulation or by-law, shall be deemed guilty of a mis- demeanor, and in addition to the penalties prescribed by this act shall be personally liable for all damages which may arise from the enforcement of such rule, regulation, or by-law, to any per- son damaged thereby. Trusts, combinations, or conspiracies. Sec. 4. No trusts, combinations, or conspiracies shall be organized or exist in this state, to prevent any person or persons, or corporation, from selling live stock on commission, for such an amount of commission as any person engaged in the business may see fit to charge ; and all rules, regulations, by-laws, or agreements of any corporation, association, society, or combina- tion of persons, whereby any such corporation, society, associa- tion, or combination of individuals are required to charge not less than a given sum for commissions, or whereby any person or commission merchant is, in any respect, restrained from COMBINATIONS. 547 charging less than a certain fixed sum for his services as such commission merchant in the sale of live stock, are hereby declared to be contrary to the public policy of this state, and unlawful ; and any person who shall enter into any such trust, combination, or conspiracy, or who shall enforce or aid. abet, assist, or encourage the enforcement of any such rule, regulation, by-law, or agreement, shall be liable to the penalties prescribed by this act, and also shall be personally liable to any person, individual, society, or corporation who may be injured in his property or business thereby, to the full extent of the injury resulting therefrom. Selling live stock at any market. Sec. 5. Whoever shall, directly or indirectly, be a party to any combination, conspiracy, or association, which attempts, directly or indirectly, to prevent any other person from freely selling live stock at any market in this state for such persons as see fit to engage his services, or shall endeavor to compel, directly or indirectly, auy person to charge not less than a fixed minimum sum for services in the sale of live stock, or shall, in any way, hinder or prevent another from lawfully selling live stock for another, for such rate of commission as may be agreed upon by the owner of the live stock and the commission merchant, shall be deemed guilty of a misdemeanor, and suffer the penalties pre- scribed by this act, and shall be personally liable to any one aggrieved thereby, for the full amount of any damage sustained by such person. Punishment. Sec. 6. Any one who shall violate the provisions of this act shall be punished by a fine in any sum not less than five hun- dred dollars, and not more than five thousand dollars, or by imprisonment in the county jail not exceeding one year, or by either or both, in the discretion of the court, and shall be liable, in civil action, to any person aggrieved, in such damages as he or she may have sustained by the violation of this act. Time act shall take effect. Sec. 7. This act shall take effect and be in force from and after its passage. 548 STATUTES AT LARGE. An act to limit the meaning of the word "conspiracy" and also the use of "restraining orders" and "injunctions," as applied to disputes between employers and employees in the State of California. Approved March 20, 1903; stats. 1903, p. 2S9. The people of the State of California, represented in senate and assembly, do enact as follows: Combinations in trade disputes not criminal, when. Section 1. No agreement, combination, or contract by or between two or more persons to do or procure to be done, or not to do or procure not to be done, any act in contemplation or furtherance of any trade dispute between employers and employees in the State of California shall be deemed criminal, nor shall those engaged therein be indictable or otherwise pun- ishable for the crime of conspiracy, if such act committed by one person would not be punishable as a crime, nor shall such agree- ment, combination, or contract be considered as in restraint of trade or commerce, nor shall any restraining order or injunction be issued with relation thereto. Nothing in this act shall exempt from punishment, otherwise than as herein excepted, any persons guilty of conspiracy, for which punishment is now provided by any act of the legislature, but such act of the legislature shall, as to the agreements, combinations, and contracts hereinbefore referred to, be construed as if this act were therein contained ; provided, that nothing in this act shall be construed to authorize force or violence, or threats thereof. Time act shall take effect. Sec. 2. This act shall take effect immediately. COMBINATIONS. 549 An act to define trust and to provide for criminal penalties and civil damages, and punishment of corporations, persons, firms, and associations, or persons connected with them, and to promote free competition in commerce and all classes of business in this state. Approved March 23, 1907 ; stats. 1907, p. 984. Amended March 20, 1909 ; stats. 1909, p. 593. The people of the State of California, represented in senate and assembly, do enact as follows: A trust defined — Trade restrictions — Limiting production — Pre- venting competition — Fixing prices — Agreements. Section 1. A trust is a combination of capital, skill or acts by two or more persons, firms, partnerships, corporations or associations of persons, or of any two or more of them for either, any or all of the following purposes : 1. To create or carry out restrictions in trade or commerce. 2. To limit or reduce the production, or increase the price of merchandise or of any commodity. 3. To prevent competition in manufacturing, making, transpor- tation, sale or purchase of merchandise, produce or any com- modity. 4. To fix at any standard or figure, whereby its price to the public or consumer shall be in any manner controlled or estab- lished, any article or commodity of merchandise, produce or com- merce intended for sale, barter, use or consumption in this state. .">. To make or enter into or execute or carry out any contracts, obligations or agreements of any kind or description, by which they shall bind or have bound themselves not to sell, dispose of or transport any article or any commodity or any article of trade, use. merchandise, commerce or consumption below a common standard figure, or fixed value, or by which they shall agree in any manner to keep the price of such article, commodity or transportation at a fixed or graduated figure, or by which i hey shall in any manner establish or settle the price of any article, commodity or transportation between them or themselves and others, so as to directly or indirectly preclude a free and unrestricted competition among themselves, or any purchasers or consumers in the sale or transportation of any such article or commodity, or by which they shall agree to pool, combine or directly or indirectly unite any interesls that (hey may have connected with the sale or transportation of any such article or 550 STATUTES AT LARGE. commodity, that its price might in any manner be affected. Every such trust as is defined herein is declared to be unlawful, against public policy and void: provided that no agreement, com- bination or association shall be deemed to be unlawful or within the provisions of this act, the object and business of which are to conduct its operations at a reasonable profit or to market at a reasonable profit those products which can not otherwise be so marketed; provided further, that it shall not be deemed to be unlawful, or within the provisions of this act, for persons, firms or corporations, engaged in the business of selling or manufac- turing commodities of a similar or like character, to employ, form, organize or own any interest in any association, firm or corporation, having as its object or purpose the transportation, marketing or delivery of such commodities. [Section 1 amended .March 20, 1009; in effect immediately.] Violation of act — Proceedings authorized. Sec. 2. For a violation of any of the provisions of this act by any corporation or association mentioned herein, it shall be the duty of the attorney general or the district attorney of the proper county, to institute proper suits or quo warranto pro- ceedings in any court of competent jurisdiction for the for- feiture of its charter rights, franchises or privileges and powers exercised by such corporation or association, and for the dis- solution of the same under the general statutes of the state. Agreements permitted. Sec. 2^/2- It shall be lawful to enter into agreements or form associations or combinations, the purpose and effect of which shall be to promote, encourage or increase competition in any trade or industry, or which are in furtherance of trade. [New section; added March 20, 1009; in effect immediately.] Foreign corporations amenable — Duty of attorney general and secretary of state. Sec. 3. Every foreign corporation, as well as every foreign association, exercising any of the powers, franchises or func- tions of a corporation in this state, violating any of the pro- visions of this act, is hereby denied the right and prohibited from doing any business in this state, and it shall be the duty of the attorney general to enforce this provision by bringing proper proceedings by injunction or otherwise. The secretary of stale shall be authorized to revoke the license of any such COMBINATIONS. 551 corporation or association heretofore authorized l>y him to do business in this state. Penalty for persons concerned in violation of this act. Sec. 4. Any violation of either or all of the provisions of this act shall be and is hereby declared a conspiracy against I rade, and any person who may become engaged in any such conspiracy or take part therein, or aid or advise in its com- mission, or who shall as principal, manager, director, agent, servant or employee, or in any other capacity, knowingly carry out any of the stipulations, purposes, prices, rates, or furnish any information to assist in carrying out such purposes, or orders thereunder or in pursuance thereof, shall be punished by a fine of not less than fifty ($50) dollars nor more than five thousaud ($5,000) dollars, or be imprisoned not less than six months nor more than one year, or by both such fine and imprisonment. Each day's violation of this provision shall con- stitute a separate offense. What indictment must set out. Sec. 5. In any indictment, information or complaint for any offense named in this act, it is sufficient to state the pur- pose or effects of the trust or combination, and that the accused is a member of, acted with or in pursuance of it, or aided or assisted in carrying out its purposes, without giving its name or description, or how, when and where it was created. Prosecutions, what to prove — Books and papers must be pro- duced when ordered. Sec. 6. In prosecutions under this act, it shall be sufficient to prove that a trust or combination, as defined herein, exists. and that the defendant belonged to it, or acted for or in con- nection with it, without proving all the members belonged to it, or proving or producing any article of agreement, or any written instrument on which it may have been based; or that it was evidenced by any written instrument at all. The char- acter of tb'' trust or combination alleged may be established by proof of its general reputation as such. In case any court of record, or in vacation any judge of said court in which is pending any civil, criminal or other action or proceeding brought or prosecuted by the attorney general or any district attorney for the violation of any of the provisions of this act or in any action or proceeding for the violation of (be law of 552 STATUTES AT LARGE. this state, against conspiracy or combination in restraint of trade so orders, no person so ordered shall be excused from attending, testifying or producing books, papers, schedules, con- tracts, agreements or any other document in obedience to the subpoena or under the order of such court or any commissioner or referee appointed by said court to take testimony or any notary public or other person or officer authorized by the laws of this state to take depositions when the order made by such court or judge thereof includes a witness whose deposition is being taken before such notary public or other officer on the ground or for the reason that the testimony or evidence required of him may tend to criminate him or subject him to any penalty ; but no individual shall be prosecuted or subjected to any penalty for or on account of any transaction, matter or thing concerning which he may so testify or produce evidence, documentary or otherwise, before any such court, person or officer. Penalty, after notice by attorney general. Sec. 7. Each and every firm, person, partnership, corpora- tion, or association of persons, who shall in any manner violate any of the provisions of this act, shall for each and every day that such violations shall be committed or continued, after due notice given by the attorney general or any district attorney, forfeit and pay the sum of fifty (50) dollars, which may be recovered in the name of the people of the State of California, in any county where the offense is committed, or where either of the offenders resides ; and it shall be the duty of the attorney general, or the district attorney of any county on the order of the attorney general, to prosecute for the recovery of the same. When the action is prosecuted by the attorney general againsl a corporation or association of persons, he may begin the action in the supreme [superior] court of the county in whieh defend- ant resides or does business. Contracts in violation of act void. Sec. S. That any contract or agreement in violation of the provisions of this act, shall be absolutely void and shall not be enforceable either in law or equity. Provisions cumulative. Sec. 9. That the provisions hereof shall be held cumulative of each other and of all other laws in any way affecting them now in force in this state. COMBINATIONS. 553 Trust certificates not lawful. Sec. 10. It shall not be lawful for any person, partnership, association or corporation, or any agent thereof, to issue or to own trust certificates, or for any person, partnership, associa- tion or corporation, agent, officer or employee, or the directors or stockholders of any corporation, to enter into any combina- tion, contract or agreement with any person or persons, corpo- ration, or corporations, or with any stockholder or director thereof, the purpose and effect of which combination, contract or agreement shall be to place the management or control of such combination or combinations, or the manufactured product thereof, in the hands of any trustee or trustees with the intent to limit or fix the price or lessen the production and sale of any article of commerce, use or consumption, or to prevent, restrict or diminish the manufacture or output of any such article, and any person, partnership, association or corporation that shall enter into any such combination, contract or agreement for the purpose aforesaid shall be deemed guilty of a misdemeanor, and on conviction thereof shall be punished by a fine not less than fifty dollars, nor more than five thousand dollars. Persons injured in business by trust may bring suit. Sec. 11. In addition to the criminal and civil penalties herein provided, any person who shall be injured in his business or property by any other person or corporation or association or partnership, by reason of anything forbidden or declared to be unlawful by this act. may sue therefor in any court having jurisdiction thereof in the county where the defendant resides or is found, or any agent resides or is found, or where service may be obtained, without respect to the amount in controversy, and to recover twofold the damages by him sustained, and the costs of suit. Whenever it shall appear to the court before which any proceedings under this act may be pending, that the ends of justice require that other parties shall be brought before the court, the court may cause them to be made "parties defend- ant and summoned whether they reside in the county where such action is pending, or not. "Person" defined. Sec. 12. The word "person" or "persons" whenever used in this act. shall be deemed to include corporations, partner- ships and associations existing under or authorized by the laws of this state or any other state, or any foreign country. 24— cl 55 i STATUTES AT LARGE. Labor not a commodity. Sec. 13. Labor whether skilled or unskilled is not a com- modity within the meaning of this act. [New section ; added March 20, 1909; in effect immediately.] 37 Oal. Dec. 201. VII Oal. App. Dec. 733. CONSPIRACY. See Combinations. CO-OPERATIVE ASSOCIATIONS. An act to define co-operative business corporations, and to pro- vide for the organization and government thereof. Approved April 1, 1878; stats. 1S77-8, p. SS3. The portion of the statute declaring that the by-laws may provide for the number of votes to which each shareholder shall be entitled is probably unconstitutional as being special legislation. (See Krause vs. Durbrow, 127 Cal. 6S1.) The remaining portion is superseded by Civ. C. § 653a, as adopted in 1905. An act to provide for incorporation, operation, and manage- ment of co-operative associations. Approved March 27, 1895; stats. 1895, p. 221. Codified by the legislature of 1905 and therefore superseded by §§ 6536 to 653Z of the Civil Code. CREMATORIES. CREMATORIES. See, also. Animals; Cemeteries. An act to prevent the propagation of disease through contami- nation of the atmosphere by gases or fumes arising from crematories for the disposition of garbage, ashes, offal, and other refuse matter, and to prescribe penalties. Approved April 17, 1909 ; stats. 1909, p. 978. The people of the State of California, represented in senate ami assembly, do enact as follows: Operation of garbage crematories. Section 1. No person, firm, company or corporation shall operate within any city, city and county or town of this state any crematory for the destruction by fire heat of garbage, ashes, offal, or other refuse matter, except as hereinafter provided for. Contamination of atmosphere. Sec. 2. No such crematory shall be operated in this state except in such a manner as will prevent tin- propagation of disease through contamination of the atmosphere of any city, city and county or town by the gases or fumes arising from the fires or ovens of any such crematory operated for the destruction by fire heat of garbage, ashes, offal, and other refuse matter. Violation a misdemeanor. Sec. 3. Every such person, firm, company or corporation, or officer, agent, or employee of such corporation, which burns by fire heat or destroys by cremation any such garbage, ashes, offal, and other refuse matter, in violation of the provisions of this act. shall be guilty of a misdemeanor. 556 STATUTES AT LARGE. DAY OF REST. See "Hours of Labor." DEMURRAGE. See "Railroads" EMPLOYMENT AND EMPLOYMENT AGENTS. See, also. Pen. C. § 670. An act to prevent misrepresentations of conditions of employ- ment, making it a misdemeanor to misrepresent the same and providing penalties therefor. Approved March 20, 1903; slats. 1903, p. 269. The people of the State of California, represented in senate and assembly, do enact as follows: False representations of conditions of employment. Section 1. It shall he unlawful for any person, partnership, company, corporation, association, or organization of any kind, doing business in this state directly or through any agent or attorney, to induce, influence, persuade, or engage any person to change from one place to another in this state or to change from any place in any state, territory, or country to any place in this slate, to work in any branch of labor, through or by moans of knowingly false representations, whether spoken, written, or advertised in printed form, concerning the kind or character of such work, the compensation therefor, the sanitary conditions relating to or surrounding it, or the existence or non-existence of any strike, lockout, or other labor dispute affecting it and pend- ing between the proposed employer or employers and the persons then or last theretofore engaged in the performance of the labor for which the employee is sought. Penalty for violation. Sec. 2. Any violation of section one or section two hereof shall be deemed a misdemeanor, and shall be punished by a fine EMPLOYMENT AND EMPLOYMENT AGENTS. 557 of not exceeding two thousand dollars or by imprisonment for not more than one year, or by both such fine and imprisonment. Time act shall take effect. Sec. 3. This act shall take effect on the date of its passage. An act defining the duties and liabilities of employment agents, making the violation thereof a misdemeanor and fixing penalties therefor. Approved February 12, 1903 ; stats. 1903, p. 14. Amended March 18, 1905 ; stats. 1905, p. 143. Amended March 3, 1909 ; stats. 1909, p. 137. Amended March 6, 1909 ; stats. 1909, p. 149. Ed. Note. — The provisions of section 4 of this act held uncon- stitutional {Ex parte Dickey, 144 Cal. 234), but section 4 repealed in 1905. The people of the State of California, represented in senate and assembly, do enact as follows: Employment agent defined. Section 1. Any person, firm, corporation, or association pursuing for profit the business of furnishing, directly or indi- rectly, to persons seeking employment, information enabling, or tending to enable, such persons to secure such employment, or registering for any fee, charge, or commission the names of any person seeking employment as aforesaid, shall be deemed to be an employment agent within the meaning of this act. Time of taking fees. Sec. 2. It shall be unlawful for an employment agent in the State of California to receive, directly or indirectly, any money or other valuable consideration from any person seeking employ- ment, for any information or assistance furnished or to be furnished by said agent to such person, enabling or tending to enable said person to secure such employment, prior to the time at which said information or assistance is actually thus furnished. Misrepresentation by agents — Return of fees paid and certain expenses. Sec. 3. It shall be unlawful for any employment agent in the State of California to induce, influence, persuade, or engage any 558 STATUTES AT LARGE. person to change from one place to another in this state, or to change from any place in any state, territory, or country, to any place in this state to work in any branch of labor, through or by means of any representations whatsoever, whether spoken, written, or advertised in printed form, unless such employment agent shall have assured himself beyond a reasonable doubt that such representations are true and cover all the material facts affecting the employment in question. Whenever any such representation, whereby any person is induced, influenced, pei 1 - suaded, or engaged to change from one place to another in this state, or from any place in any state, territory, or country, to any place in this state to work in any branch of labor, shall prove to be in any material degree at variance with, or short of the truth, the employment agent responsible for such representa- tions shall immediately return to any person who shall have been influenced, by such representations, any and all fees paid by such person to said employment agent on the strength of such representations, together with an amount of money sufficient to cover all necessary expenses incurred by such person influenced by such representations in going to and returning from, any place he shall have been influenced by such representations to visit in the hope of employment. [Section 3 amended March is. 1905.] Section 2 of the act approved March is. 1905, repeals the following section : Amount of fee to be charged. [Repealed.] Sec. 4. It shall be unlawful for an employment agent in the State of California to receive, directly or indirectly, for registra- tion made or for information or assistance such as is described in section two hereof, any money or other consideration which is in value in excess of ten per cent of the amount earned, or pros- pectively to be earned by the person for whom said registration is made or to whom such information is furnished, through the medium of the employment regarding which such registration, information or assistance is given, during the first month of such employment ; provided, that said value shall not be in excess of ten per cent of the amount actually prospectively to be earned in such employment when it is mutually understood by the agent and person in this section mentioned, at the time when said information or assistance is furnished, that said employment is to be for a period of less than one month. [Section 1 repealed March 18, 1905.] EMPLOYMENT AND EMPLOYMENT AGENTS. Of)!) Duty of tax collector. Sec. 5. The tax collector or license collector of each respect- ive city, county or city and county of the State of Californisi shall furnish quarterly, to the commissioner of the bureau oi' labor statistics of the State of California the name and address of each employment agent doing business in said city, county or city and county ; provided, that where the license is not a county license, but is collected by a municipal government, then the municipal collector of said tax shall furnish the names and addresses. Record of applications. Sec. 6. Each employment agent in the State of California shall keep a written record, which shall show the name of each person making application to said agent for registration, infor- mation or assistance, such as is described in section two hereof : the name of each such person to whom such registration or information is furnished ; and the amount received in each such case therefor ; the name of each person who, having received and paid for, as herein contemplated, registration, information or assistance such as is described in section two hereof, fails to secure the employment regarding which such registration, infor- mation or assistance is furnished, together with the reason why said employment was not by said person secured, and the name of each person to whom return is made, in accordance with the provisions of section three hereof, of any money or other cou- sideration such as is in said section named, together with the amount of said money, or the value of said consideration, thus returned. Right of bureau of labor to inspect record. Sec. 7. Each employment agent in the State of California shall permit the commissioner of the bureau of labor statistics of said state, by himself, or by his deputies or agents, to have at all times access to, and to inspect, the record in section six hereof named, and upon demand in writing therefor by said com missioner, shall furnish to such commissioner a true copy of said record, or of such portion thereof as said demand in writing shall require a copy of to be thus furnished. The commissioner, his deputies and agents shall have all powers and authority of sheriffs to make arrests for violations of the provisions of this act. [Section 7 amended .March 6, 1909; slats 1909, p. 110; in effect in sixty days.] 560 STATUTES AT LARGE. Penalty — Disposition of fines. Sec. 8. Any employment agent or other person violating or omitting to comply with, any of the provisions of this act, shall be deemed guilty of a misdemeanor, and upon conviction shall be punished by a fine not exceeding five hundred (500) dollars, or by imprisonment not exceeding six (6) months, or by both such fine and imprisonment in the discretion of the court. All fines imposed and collected under the provisions of this act shall be paid into the state treasury and credited to the contingent fund of the bureau of labor statistics. [Section 8 amended March 3, 1909; stats. 1909, p. 137; in effect in sixty days.] Repeal of conflicting acts. Sec. 9. All acts and parts of acts inconsistent with the pro- visions of this act are hereby repealed. Time act shall take effect. Sec. 10. This act shall lake effect from and after the date of its passage. An act to regulate and license the conducting and operating of employment agencies and to provide a revenue therefrom, for the enforcement of the provisions of this act and other acts relating to employment agents and employment agencies. Approved March 6, 1909; stats. 1909, p. 191. The people of the State of California, represented in senate and assembly , do enact as follows: Employment agency defined. Section 1. Any business, pursued for profit, for furnishing directly or indirectly, to persons seeking employment, informa- tion enabling, or tending to enable, such persons to secure such employment, or registering for any fee, charge, or commission, the names of any persons seeking employment as aforesaid, shall be deemed to bo an employment agency within the meaning of this act. License required. Sec. 2. Every person, firm, corporation or association who conducts or operates an employment agency in the State of California, without first procuring a license therefor, as pro- vided in this act, is guilty of a misdemeanor. EMPLOYMENT A.\P EMPLOYMENT AGENTS. 561 Issuance of license. Sec. 3. Licenses granting the privilege to conduct or operate employment agencies shall be issued and delivered upon applica- tion, by the commissioner of the bureau of labor statistics, which license shall contain the name of the person, firm, corporation or association, seeking to conduct or operate an employment agency, and the exact location of the employment agency. Fees for license. Sec. 4. The licenses herein provided for shall be issued as follows: to any person, firm, corporation or association, con- ducting or operating, or seeking to conduct or operate, an em- ployment agency — 1. In cities of the first, first and one half and second classes upon payment of fifty dollars. 2. In cities of the third and fourth classes, upon payment of twenty-five dollars. 3. In all other cities and towns, upon payment of six dollars. Personal names of agents must be given. Sec. 5. Every person, firm, corporation or association apply- ing for and procuring a license as herein provided, shall give to the commissioner of the bureau of labor statistics, the name and resident address of such person, or the names and resident addresses of the partners of such firms, or the names and resi- dent addresses of the officers and directors of such corporations or associations, and the city or town, street and number where the employment agency is conducted or operated, or sought to lie conducted and operated. Term of license. Sec. 6. All licenses issued as herein provided shall be valid, and shall authorize the person, firm, corporation or association to whom issued, to conduct or operate an employment agency on and from the date of issuing to the thirty-first day of March fol- lowing, but no license shall continue in force for a longer period than one year. Disposition of fees and fines. Sec. 7. All moneys collected for licenses as provided herein, and all fines collected for violation of the provisions hereof, shall be paid into the state treasury and credited to the contingent fund of the bureau of labor statistics. 562 STATUTES AT LARUE. Separate licenses required for branch agencies. Sec. 8. Every person, firm, corporation or association con- ducting or operating, or seeking to conduct or operate branch employment agencies in the same or different localities must procure a separate license for such branch employment agencies ; and no license issued as herein provided shall be transferable or used by any other person, firm, corporation or association than the one to whom it was issued, or used in a different location than the one for which it was issued, withoul the written con- sent of the commissioner of the bureau of labor statistics. Licenses must be posted. Sec. 9. All licenses issued as herein provided, shall be posted in a conspicuous place, and any person, firm, corporation or association having such license and who refuses to exhibit the same upon demand of any officer or agent of the bureau of labor statistics, or any peace officer of the state, shall be guilty of a misdemeanor; and any person, firm, corporation or association lawfully having such licenses, and who transfers or disposes of i lie same to another person, firm, corporation or association to be used as an employment agency license, shall forfeit the same. Penal clause. Sec. 10. Every person, firm, corporation or association vio- la ling any of the provisions of this act. shall upon conviction I hereof, be guilty of a misdemeanor. Revocation of license. Sec. 11. Upon conviction, of any person, firm, corporation or association for the violation of any of the provisions of this act, or an act entitled "An act defining the duties and liabilities of employment agents, making the violation thereof a misde- meanor, and fixing the penalties therefor," approved February 112, 1003, the commissioner of the bureau of labor statistics shall have the right to revoke all licenses issued to such person, firm, corporation or association, enabling them to conduct or operate an employment agency. Municipal taxes. Sec. 12. Nothing in this act shall be construed to prevent the collection of any tax or license by any county or municipal authority. EMPLOYMENT AND EMPLOYMENT AGENTS. 563 Repeal of conflicting acts. Sec. 13. All acts or parts of acts in conflict with this act are hereby repealed. Time act shall take effect. Sec. 14. This act shall take effect and be in force on and after April first, 1909. EMIGRATION. An act to promote emigration from the State of California. Approved March 26, 1880; stats. 1880, p. 15. The people of the State of California, represented in senate and assembly, do enact as follows: Passage tickets to foreign ports not to be withheld or refused — Penalty for violation. Section 1. It shall be unlawful for the owners, officers, agents, or employees of any steamship company, sailing vessel, or railroad company, or firm or corporation, that may be engaged in this state in the transportation of passengers to and from any foreign port, to withhold or refuse any person or persons the right to purchase a passage ticket or tickets to any foreign country for the reason that he or they have not presented a certificate, card, or other document whatsoever showing that such person has paid in full, or in part, any or all dues, debts, or demands, or otherwise, or any sum whatsoever, to any society, company, corporation, association, or individual, or firm; and any person or corporation who shall violate the provisions of this section, or in pursuance of any agreement, oral or written, refuse to sell a passage ticket to any person to any foreign country, shall be guilty of a misdemeanor, and upon conviction, shall be punished by a fine of not less than one hundred nor more than five hundred dollars ; provided, that nothing in this section shall be construed in any manner to apply to any pass- port or other document required by law to be presented, having the signature or seal of any foreign consul resident within this state. Time act shall take effect. Sec. 2. This act shall take effect on and after its passage. 564 STATUTES AT LARGE. EXECUTORS. An act authorizing certain corporations to act as executor and in other capacities, and to provide for and regulate the administration of trusts by such corporations. Approved April 6, 1891 ; stats. 1891, p. 490. Amended April 1, 1897; stats. 1897, p. 424. Amended March 20, 1903 ; stats. 1903, p. 244. Amended March 18, 1905 ; stats. 1905, p. 232. Amended March 18, 1907; stats. 1907, p. 562. The people of the State of California, represented in senate and assembly, do enact as follows: What corporations may act as executor. Section 1. Any corporation which has or shall be incorpo- rated under the general incorporation laws of this state, author- ized by its articles of incorporation to act as executor, adminis- trator, guardian, assignee, receiver, depositary or trustee, and having a paid-up capital of not less than two hundred and fifty thousand dollars, of which one hundred thousand dollars shall have been actually paid in, in cash, may be appointed to act in such capacity in like manner as individuals. In all cases iu which it is required that an executor, administrator, guardian, assignee, receiver, depositary, or trustee, shall qualify by taking and subscribing an oath, or in which an affidavit is required, it shall be a sufficient qualification by such corporation if such oath shall be taken and subscribed or such affidavit made by the president or secretary or manager or trust officer thereof, and such officer shall be liable for the failure of such corporation to perform any of the duties required by law to be performed by individuals acting in like capacity and subject to like penalties ; and such corporation shall be liable for such failure to the full amount of its capital stock ; provided, any such appointment as guardian shall apply to the estate only, and not to the per- son. Such corporation shall be entitled to and shall be allowed proper compensation for all the services performed by them under the foregoing provisions of this act ; but such compensa- tion shall not exceed that allowed to natural persons for like services. [Section 1 amended March IS, 1907.1 See, also, § 290a Civ. C. EXECUTORS. 565 Deposits made with corporation. Sec. 2. Any court, having appointed and having jurisdiction of any executor, administrator, guardian, assignee, receiver, depositary, or trustee, upon the application of such officer or trustee, or upon the application of any person having an interest in the estate administered by such officer or trustee, after notice to the other parties in interest as the court may direct, and after a hearing, upon such application, may order such officer or trustee to deposit any moneys then in his hands, or which may come into his hands thereafter, and until the further order of said court, with any such corporation ; and upon deposit of such money, and its receipt and acceptance by such corporation, the said officer or trustee shall be discharged from further care or responsibility therefor. Such deposits shall be paid out only upon the orders of said court. Public administrator may make deposits. Sec. 3. And it shall be lawful for any public administrator to deposit with any such corporation doing business in the county, or city and county, in which he is acting as such admin- istrator, any and all moneys of any estate upon which he is administering, not required for the current expenses of the administration. And such deposits shall relieve the public administrator from depositing with the county treasurer the moneys so deposited with such corporation. Moneys deposited by a public administrator may be drawn, upon the order of such administrator, countersigned by a judge of a superior court, when required for the purpose of administration, or otherwise. Court may order deposit and reduce bonds. Sec. 4. Whenever, in the judgment of any court having jurisdiction of any estate in process of administration by any executor, administrator, guardian, assignee, receiver, depositary, or trustee, the bond required by law of such officer shall seem burdensome or excessive, upon application of such officer or trustee, and after such notice to the parties in interest as the court shall direct, and after a hearing on such application, the said court may order the said officer or trustee to deposit with any such corporation, for safe-keeping, such portion or all of the personal assets of said estate as it shall deem proper ; and thereupon said court shall, by an order of record, reduce the bond to be given or theretofore given by such officer or trustee, 566 STATUTES AT LARGE. so as to cover only the estate remaining in the hands of said officer or trustee ; and the property as deposited shall thereupon be held by said corporation, under the orders and directions of said court. Any court having jurisdiction of an estate being administered by a public administrator, may direct such public administrator to deposit all or any part of the moneys of the estate not required for the current expenses of the administra- tion, with any such corporation doing business in the "county, or city and county, where such public administrator is acting. Responsible for investments. Sec. 5. Such corporation shall not be required to give any bond or security in case of any appointment hereinbefore pro- vided for, except as hereinafter provided, but shall be responsible for all investments which shall be made by it of the funds which may be intrusted to it for investment by such court, and shall be further liable as natural persons in like positions now are, and as hereinafter provided. The amount of money which any such corporation shall have on deposit at any time shall not exceed ten times the amount of its paid-up capital and surplus, and its outstanding loans shall not at any time exceed said amount. Interest. Sec. 6. Such corporations shall pay interest upon all moneys held by them by virtue of this act, at such rate as may be agreed upon at the time of its acceptance of any such appoint- ment, or as shall be provided by the order of the court. Deposit of bonds with state treasurer. Sec. 7. Each corporation, before accepting any such appoint- ment, or deposit, shall deposit with the treasurer of state, for the benefit of the creditors of said corporation, the sum of one hundred thousand dollars (.$100,000.00), in bonds of the United States, or municipal bonds of this state, or of any county, or city, or school district thereof, or in mortgages on improved and productive real estate in this state, being first liens thereon, and the real estate being worth at least twice the amount loaned thereon. The bonds and securities so deposited may be exchanged from time to time for other securities, receivable as aforesaid. Said bonds of the United States, or municipal bonds of this state, or of any county, city, or school district thereof, to be registered in the name of said treasurer, officially, and EXECUTORS. 567 all said securities to be subject to sale and transfer, aud to the disposal of the proceeds by said treasurer, only on the order of a court of competent jurisdiction, and as hereinafter pro- vided. [Section 7 amended April 1, 1S97.] May mortgage real estate. Sec. S. Any such corporation, having a paid-up capital in excess of two hundred and fifty thousand dollars, may be per- mitted by the board of bank commissioners to mortgage any improved and productive real estate owned by it, in excess of said amount, to the treasurer of state, for such sum as the said board may determine ; and such mortgage may be deposited with said treasurer, and when so deposited it shall be included in the amount of securities hereinabove required to be deposited with said treasurer for the benefil of the creditors of said cor- poration. Deposit, increase and decrease of. Sec. 9. So long as the corporation so depositing shall con- tinue solvent, such corporation shall be permitted to receive from said treasurer the interest or dividends on said deposit: provided, hoivever, that when it shall appear to the board of bank commissioners, from the semi-annual report of any such corporation, that the value of the personal property and cash held and possessed by such corporation, by virtue of the pro- visions of this act and any amendment thereof, exceeds ten limes the amount of the deposit aforesaid, said board shall require said corporation to forthwith increase its said deposit to the sum of five hundred thousand dollars in such securities. And whenever it shall appear to said board that the amount of personal property and cash so held by any such corporation has been reduced below ten times the value of its original deposit above provided for, and said corporation is not in any default in its duties and obligations hereunder, they shall allow such corporation to reduce its said deposit to the sum of two hun- dred thousand dollars, by the withdrawal of such additional deposit until such time as an increase in its holdings shall again require an additional deposit, as hereinbefore provided. Abstracts of title. Sec. 10. When any part of such deposit is made in bonds and mortgages, it shall be accompanied by full abstracts of titles and searches, and shall be examined and approved by or under 56S STATUTES AT LARI.I the direction of the said board. The fees for an examination of title by counsel, to be paid by the corporation making the deposit, shall not exceed twenty dollars for each mortgage, and the fee for each appraiser, not exceeding two, besides expenses, shall be five dollars for each mortgage Certificate of authority. Sec. 11. it shall not be lawful for any such corporation to accept any trust or deposit, as hereinbefore provided, after the passage of this act, without first procuring from the board of bank commissioners a certificate of authority, stating that such corporation has complied with the requirements of this act in respect to such deposit. Semi-annual statement. Sec. 12. Such corporation shall tile with the said board of bank commissioners, during the months of January and July of each year, a statement, under oath, of the condition of such corporation at the close of business on the thirty-first day of December and the thirtieth day of June, respectively, next preceding, showing its financial condition. Also, a list and brief description of the trusts held by such corporation, the source of the appointment thereto, and the amount of real and personal estate held by such corporation by virtue thereof, except that mere mortgage trusts, wherein no action has been taken by such corporation, shall not be included in such state- ment. The said statement shall also be in such form, and con- tain such reports, returns, and information, as to the affairs, business, condition, and resources of the corporation, as the said board may from time to time prescribe and require. Verification of statement. Sec. 13. Such statement shall be verified by the affidavit of one of the managing officers and two of the directors or trustees of such corporation, who shall also state in such affidavit that they have examined the assets and books of such corporation for the purpose of making such statement. Any false swearing in regard to such statement shall be deemed perjury, and shall be subject to the punishment prescribed by law for such offense. Duty of bank commissioners. Sec. 14. The said board of bank commissioners are hereby authorized and empowered to address any inquiries to any such EXECUTORS. 569 corporation or the officers thereof, in relation to its doings and conditions, or any other matter connected with its affairs ; and it shall be the duty of any such corporation or person so addressed to promptly reply, in writing, to such inquiries ; and they may also require reports from any such corporation at any time they may deem desirable. It shall be the duty of one or more of the bank commissioners, as designated by the commissioners, annu- ally, or as often as in their judgment they may deem it necessary, without previous notice, to visit and to make personal examina- tion of the solvency of any such corporation, its ability to fulfill all its obligations, and report its condition to the attorney general as soon as may be after such examination. Administering oaths and examining witnesses. Sec. 10. Such commissioners shall have power to administer an oath to any person whose testimony may be required on any such examination, and to compel the appearance and attendance of any such person, for the purpose of examination, by summons, subpoena, or attachment, in the manner now authorized in respect to the attendance of persons as witnesses in courts of record in this state; and all books and papers which may be deemed neces- sary to examine by the commissioners shall be produced, and their production may be compelled in like manner. Duty when corporation violates law. Sec. 17. Whenever it shall appear to the board of bank com- missioners, from any such examination or report, that any such corporation has committed any violation of law, or is conducting its business in an unsafe or unauthorized manner, they shall, by an order under their hands, direct the discontinuance of such illegal and unsafe or unauthorized practice, and strict conformity with the requirements of the law, and with safety and security in its transactions ; and whenever any such corporation shall refuse or neglect to make any such report as hereinbefore required, or to comply with any such order as aforesaid, or whenever it shall appear to the said board that it is unsafe or inexpedient for any such corporation to continue to transad business. I hey shall communicate the facts to the attorney gen- eral, who shall thereupon institute such proceedings against the corporation as the nature of the case may require. False statement revokes authority. Sec. 18. Tf the hoard of hank commissioners shall, at any time, have satisfactory evidence thai any semi-annual statemenl 570 STATUTES AT LABGE. or other report required or authorized by this act, made or to be made by any officer or officers of such corporation is false, it shall be the duty of the said board to immediately revoke the certificate of authority granted on behalf of such corporation, and mail a copy of such revocation to said corporation and to the clerk of every court of record in this state. Such revocation shall not be set aside until satisfactory evidence shall be given to said board of bank commissioners that such corporation is in substance and in fact in the condition set forth in such state- ment or report, and that all the requirements of this act have been complied with. Such revocation shall be sufficient cause for the removal of such corporation from any appointment held by it Tinder the provisions of this act. Retirement from business. Sec. 19. Any corporation which desires to retire from busi- ness under this act, shall furnish to the board of bank eoinmis- sioners satisfactory evidence of its release aud discharge from all the obligations and trusts hereinbefore provided for ; whereupon they shall revoke their certificate to such corporation, and there- upon the treasurer of state shall return to said corporation all its securities. Conflicting laws repealed. Sec. 20. All laws and parts of laws in conflict with the pro- visions of this act are hereby repealed. Time act shall take effect. Sec. 21. This act shall take effect and be in force from and after its passage. Corporations shall keep inviolate confidential communications. Sec. 22. Any corporation exercising the powers and perform- ing the duties provided for in said act, shall keep inviolate all communications confidentially made to it touching the existence. condition, management, and administration of any trusts con- fided to it; and no creditor or stockholder of any such corpora- tion shall be entitled to disclosure of any such communication : provided, however, that the president, manager and secretary of such corporation shall be entitled to knowledge of such communi- cation ; and provided further, that in any suit or proceeding touching the existence, condition, management or administration of such trust, the court wherein the same is pending may require disclosure of any such communication. [Section 22 added March 20, 1903.] EXECUTORS. 571 Use of the word "trust" in name, prohibited, except to certain corporations. Sec. 23. The use of the word "trust" in combination or in connection with the word "company," "corporation," "incorpora- tion," "association," "society," "organization," or "syndicate" is hereby prohibited to all persons, firms, associations, companies or corporations, other than corporations provided for by a cer- tain act of the legislature entitled "An act authorizing certain corporations to act as executor and in other capacities and to provide for and regulate the administration of trusts by such corporations," approved April 6, 1891, and any person, firm, association, company or corporation which uses the word "trust" in combination with or in connection with the word "company," "corporation," "incorporation," "association," "society," "organi- zation" or "syndicate" as the name under which business is done or transacted, shall be subject to the provisions of the act last referred to and to the supervision of the bank commissioners as required by the said act. Auy person, firm, association, company or corporation making use of the word "trust" in combination or in connection with the word "company," "corporation.*' "incor- poration," "association," "society," "organization" or "syndicate" in the manner hereinabove mentioned in the transaction of business and not subject to the provisions of said act and the supervision of the bank eoiumissioneis as in said act provided shall forfeit for each day the offense is committed, the sum of one hundred dollars, to be recovered by the bank commissioners of the State of California in -the manner provided by law. [Section 23 added "March 18, 1905.] See, also, § 290a and § 290% of the Civ. C. 5 Cal. App. 1K4. See, also, Banks and Ranking. 2 STATUTES AT LAKGE. FACTORIES AND WORKSHOPS. See Health and Sanitation. FOREIGN CORPORATIONS. An act in relation to foreign corporations. (Designation of agent, etc.) Approved April 1, 1872; stats. 1871-2, p. 826; amended 1899, p. 111. Superseded by Civ. C. §§ 405, 406, as adopted in 1905. An act requiring corporations organized under the laws of another state, territory or -foreign country, to file a certified copy of their articles of incorporation in the office of the secretary of state, and a certified copy thereof, duly certified by the secretary of state of this state, in the office of the county clerk of the county where its principal place of busi- ness is located and also where such corporation owns prop- erty, and requiring such corporation to pay to the secretary of state the same fees as are paid by corporations formed under the laws of the State of California and providing for a penalty for the violation of the provisions of this act. Approved March 8, 1901 ; stats. 1901, p. 108. Superseded by Civ. C. §§ 408, 409, 410, as adopted in 1905. FRANCHISES. (See, also, Municipal Corporations, post, for granting of franchises by trustees of cities of the fifth and sixth classes. I An act relating to the granting by counties and municipalities of franchises for the construction of paths and roads for the use of bicycles and other horseless vehicles. Approved March 27, 1897; stats. 1897, p. 191. Superseded by Civ. C. § 524, enacted in 1905, and Pol. C. § 4047, enacted in 1907. FBANCillSES. 573 An act providing for the sale of street railroad and other fran- chises in counties and municipalities, and providing condi- tions for the granting of such franchises by legislative or other governing bodies, and repealing conflicting acts. Approved March 22, 1905 ; stats. 1905, p. 777. Amended March 3, 1909 ; stats. 1909, p. 125. The people of the State of California, represented in senate and assembly, do enact as follows: Certain franchises, by whom granted. Section 1. Every franchise or privilege to erect or lay tele- graph or telephone wires, to construct or operate street or inter- urban railroads upon any public street or highway, to lay gas pipes for the purpose of carrying gas for heat and power, to erect poles or wires for transmitting electric heat and power along or upon any public street or highway, or to exercise any other privilege whatever hereafter proposed to be granted by boards of supervisors, boards of trustees, or common councils, or other governing or legislative bodies of any county, city and county, city or town within this state, except steam railroads and except telegraph or telephone lines doing an interstate busi- ness, and renewals of franchises for piers, chutes, or wharves, shall be granted upon the conditions in this act provided, and not otherwise. Application to be filed — Advertisement — Time of publication. Sec. 2. An applicant for any franchise or privilege above mentioned shall file with the governing or legislative body of the county or municipality an application, and thereupon said governing body shall, in its discretion, advertise the fact of said application, together with a statement that it is proposed to grant the same, in one or more newspapers of the county, city and county, city or town wherein the said franchise or privilege is to be exercised. Said advertisement must state that bids will be received for such franchise, and that it will be awarded to the highest bidder, and the same must be published in such newspaper once a day for ten successive days, or as often during -aid period as said paper is published, if it be a daily news- paper, and if there be no daily newspaper published in such county, city and county, city or town, then it shall be published in a weekly newspaper once a week for four successive weeks, and in either ease the full publication must be completed not .1(4 STATUTES AT LARGE. loss than twenty nor more than thirty days before any further action can be taken thereon. [Section 2 amended March 3, 1009 ; in effect in sixty days.] Facts stated in publication — Percentage paid — Forfeiture of franchise. Sec. 3. The publication must stale the character of the franchise or privilege proposed to be granted, the term for which it is granted, and, if it he a street railroad, the route to be traversed ; that sealed bids therefor will be received up to a certain hour and day named therein, and that the successful bidder and his assigns must, during the life of said franchise, pay to the county or municipality two per cent (2%) of the ^ross annual receipts of the person, partnership or corporation to whom the franchise is awarded, arising from its use, opera- lion or possession. No percentage shall be paid for the first five (5) years succeeding the date of the franchise, but there- after such percental- shall be payable annually; and in the event said payment is not made, said franchise shall be for- feited; provided further, that if the franchise be a renewal of a right already in existence, the payment of said percentage of m - oss receipts shall begin at once. When an extension of street railroad. Sec. 4. In case the franchise granted shall be an extension of an existing system of street railroad, then the gross receipts shall be estimated to be one half of the proportion of the total gross receipts of said system which the mileage of such exten- sion bears to the total mileage of the whole system, and said estimate shall be conclusive as to the amount of the gross receipts of said extension. Sale to highest bidder — Increase of highest bid — Amount of money to accompany bid — Deposit — Readvertisement. Sec. 5. Said advertisement shall also contain a statement that the said franchise will be struck off, sold and awarded to the person, firm or corporation who shall make the highest cash bid therefor; provided, only, that at the time of the opening of said bids any responsible person, firm or corporation present or represented may bid for said franchise or privilege a sum not less than ten per cent above the highest sealed bid therefor, and said bid so made may be raised not less than ten per cent by any other responsible bidder, and said bidding may so con- FRANCHISES. 57f) tinne until finally said franchise shall be struck off, sold, and awarded by said governing body to the highest bidder therefor in gold coin of the United States. Each sealed bid shall he accompanied with cash or a certified check, payable to the treasurer of such county or municipality, for the full amount of said bid, and no sealed bid shall be considered unless said cash or check is enclosed (herewith and the successful bidder shall deposit at least ten per cent of the amount of his bid with the clerk of such county or municipality before the fran- chise shall be struck off to him. And if he shall fail to make such deposit immediately, then and in that case, his bid shall not be received, and shall be considered as void, and the said franchise shall then and there be again offered for sale to the bidder who shall make the highest cash bid therefor, subject to the same conditions as to deposit, as above mentioned. Said procedure shall be had until said franchise is struck off, sold, and awarded to a bidder who shall make the necessary deposit of at least ten per cent of tin' amount of his bid therefor, as herein provided. Said successful bidder shall deposit with the clerk of such county or municipality, within twenty-four hours of the acceptance of his bid, the remaining ninety per cent of the amount thereof, and in case he or it shall fail to do so, then the said deposit theretofore made, shall be forfeited, and the said award of said franchise shall be void, and the said franchise shall then and there, by said governing body, be again offered for sale to the highest bidder therefor, in the same manner, and under the same restriction as hereinbefore provided, and in case said bidder shalb fail to deposit with the clerk of such county or municipality, the remaining ninety per cent of his bid, within twenty-four hours after its acceptance, the award to him of said franchise shall be set aside, and the deposit theretofore made by him shall be forfeited, and no further proceedings for n sale of said franchise shall be had unless the same shall be readvertised and again offered for sale, in the manner herein- before provided. When work shall commence. Sec. (i. Work to erect or lay telegraph or telephone wires, to construct streel railroads, to lay gas pipes for the purpose of carrying gas for heal and power, to erect poles or wires for transmitting electric heat or power, along or upon any public street or highway, or to exercise any privilege whatever, a ."")7t> STATUTES AT LARGE. franchise for which shall have been granted in accordance with the terms of this act, shall be commenced in good faith within not more than four months from the granting of any such fran- chise, and if not so commenced within said time said franchise so granted shall be declared forfeited, and shall be completed within not more than three years thereafter, and if not so com- pleted within said time said franchise so granted shall be for- feited ; provided, that for good cause shown the governing or legislative body may by resolution extend the time for comple- tion thereof, not exceeding three months. Successful bidder to file bond — Event of failure. Sec. 7. The successful bidder for any franchise or privilege struck off, sold, and awarded under this act shall file a bond running to said county, city and county, or city or town, with, at least, two good and sufficient sureties, to be approved by such governing body, in a penal sum by it to be prescribed, and set forth in the advertisement for bids, conditioned that such bidder shall well and truly observe, fulfill and perform each and every term and condition of such franchise, and that in case of any breach of condition of such bond, the whole amount of the penal sum therein named shall be taken and deemed to be liquidated damages, and shall be recoverable from the principal and sureties upon said bond. Said bond shall be filed with such governing body within five days after such franchise is awarded, and upon the filing and approval of such bond, the said franchise shall, by said governing or legislative body, be granted by ordi- nance to the person, firm or corporation to whom it has been struck off, sold, or awarded, and in case that said bond shall not be so filed, the award of such franchise shall be set aside, and any money paid therefor shall be forfeited, and said franchise shall, in the discretion of said governing or legislative body, be readvertised, and again offered for sale in the same manner, and under the same restrictions, as hereinbefore provided. Duty of attorney general. Sec. 8. It shall be the duty of the attorney general, upon the complaint of any county or municipality, or, in his discre- tion, upon the complaint of any taxpayer, to sue for the for- feiture of any franchise granted under the terms of this act, for the non-compliance with any condition thereof. FRANCHISES. - r > ,i Certain clauses and conditions to be omitted. Sec. 9. Xo clause or condition of any kind shall be inserted in any franchise or grant offered or sold under the terms of this act, which shall directly or indirectly restrict free and open competition in bidding therefor, and no clause or provision shall be inserted in any franchise offered for sale, which shall in any- wise favor one person, firm or corporation, as against another, in bidding for the purchase thereof. Violation of provisions of this act by members of governing body. Sec. 10. Any member of any common council or other gov- erning or legislative body of any county, city and county, city or town of this state, who, by his vote violates or attempts to violate the provisions of this act, or any of them, shall be guilty of a misdemeanor, and may be punished therefor, as provided by law, and may be deprived of his office by the decree of a court of competent jurisdiction, after trial and conviction. Repeal of conflicting acts — Certain acts not repealed — Time of taking effect. Sec. 11. All acts or parts of acts in conflict herewith are hereby repealed; provided, however, that nothing herein con- tained shall be construed as repealing, or amending the following acts, to wit : "An act relating to the granting by the counties and municipalities of franchise for the construction of paths and roads for the use of bicycles and other horseless vehicles," approved March twenty-seventh, eighteen hundred and ninety- seven ; "An act to authorize cities and towns to grant fran- chises for the construction and maintenance of railroads beyond (he limits of such cities or towns leading to public parks owned thereby," being chapter forty of the laws of eighteen hundred and ninety-seven of the State of California. This act shall take effect immediately. (See McOinnia vs. City of San Jose, 153 Cal. 712.) (See, also, Municipal Corporations, statutes at large, post, for laws relating to cities of the fifth and sixth classes.) Note. — Section 11 erroneously refers to "chapter forty of the laws of eighteen hundred and ninety-seven," etc. ; the correct chapter number is fifty. For copy of act see Street Railroads. First act mentioned in section 11 is codified. (See Civ. C. § 524 and Pol. C. § 4047.) 25— cl 578 STATUTES AT LARGE. FRAUDULENT REPORTS. An act to protect stockholders and persons dealing with cor- porations in this state. Approved March 29, 1878; stats. 1877-8, p. 095. Amended March 22, 1905; stats. 1905, p. 78ti. The people of the State of California, represented in senate and assembly, do enact as follows: False reports by officers of corporations. Section 1. Any superintendent, director, secretary, man- ager, agent, or other officer, ol" any corporation formed or exist- ing under the laws of this state, or transacting business in the same, and any person pretending or holding himself out as such superintendent, director, secretary, manager, agent, or other officer, who shall willfully subscribe, sign, indorse, verify, or otherwise assent to the publication, either generally or privately, to the stockholders or other persons dealing with such corpora- tion, or its stock, any untrue or willfully and fraudulently exaggerated report, prospectus, account, statement of operations, values, business, profits, expenditures or prospects, or other paper or document intended to produce or give, or having a tendency to produce or give, to the shares of stock in such cor- poration a greater value or less apparent or market value than they really possess, or with the intention of defrauding any particular person or persons, or the public, or persons generally, shall be deemed guilty of a felony, and on conviction thereof, shall be punished by imprisonment in state prison or a county jail not exceeding two years, or by fine not exceeding five thou- sand dollars, or by both. Repeal of conflicting acts. Sec. 2. All acts and parts of acts in conflict with this act are hereby repealed. Note. — The act of March 29, 1878, consists of but one section, hence was entirely amended and superseded in 1905. See, also, Pen. C. § 504. FRAUDULENT REPORTS. , r >79 An act to prevent false and incorrect representations and advertisements concerning articles offered for sale and pre- scribing a punishment for the violation thereof. Approved April 22, 1909 ; stats. 1909, p. 1078. The people of the State of California, represented in senate and assembly, do enact as follows: False representations or misleading advertisements. Section 1. Any firm, person, corporation or association of persons, or any employee of such or any of such, who in the newspapers or other periodicals of this state, or in public adver- tisements, or in communications intended for a large number of persons knowingly makes or disseminates any statements or assertions of facts with respect to his, its or their business affairs concerning the quantity, the quality, the value, the price, the method of production or manufacture, or the fixing of the price of his, its, or their merchandise or professional work ; or the manner or source of purchase of such merchandise, or the pos- session of awards, prizes or distinctions ; or the motive or purpose of a sale, intended to have the appearance of an advan- tageous offer, which is or are untrue or calculated to mislead, shall be guilty of a misdemeanor. GAME PRESERVES. An act to provide for the transfer to the State of California by owners of patented lands therein of the right to preserve and protect wild game on such patented lands; to define the duties of the state board of fish commissioners in relation to the control of such rights, and to declare the hunting of wild game within the exterior boundaries of the land to which such right attaches, a misdemeanor. Approved March 21, 1907 ; stats. 1907, p. 788. Amended March 20, 1909 ; stats. 1909, p. 518. The people of the State of California, represented in senate and assembly, do enact as follows: Protection of wild game on patented lands — State game pre- serve — Close season. Section 1. Any person, firm or corporation, owning and in possession of patented lands in the State of California, embrac- 580 STATUTES AT LARGE. ing an area of not less than one hundred and sixty acres, may transfer, by an instrument in writing duly acknowledged before an officer authorized under the laws of this state to take acknowl- edgments, to the State of California, the right to preserve and protect all wild game on the land described therein for a period of not less than one year nor more than five years. Such instru- ment shall be filed with the state board of fish commissioners ; whereupon such board may in its discretion declare the lands described in such instrument a state game preserve, and there- after for the period named therein, shall for all the purposes relating to the preservation and protection of wild game be under the control of said board. Such preserve shall be num- bered in the order of the filing of the instrument of transfer I hereof. A copy of the declaration establishing the same shall, under the seal of said board be issued to such person, firm or corporation, transferring the right therefor. During the period named in such instrument it shall be unlawful for any person to hunt, pursue, shoot, take, kill or destroy any wild game within the exterior boundaries thereof. The state board of fish com- missioners shall cause to be prepared suitable notices to be posted under its direction on each state game preserve and such notice shall describe the lauds constituting the same, and shall contain a warning to all persons to refrain for the period named therein from violations of the provisions of this act; provided, however, that no provision in this act contained, shall be con- strued as prohibiting or preventing any person or persons from hunting or taking fish and wild game from or on navigable water. [Section 1 amended March 20, 1909 ; stats. 1909, p. 518 : in effect immediately.] Control of state game preserves. ' Sec. 2. All state game preserves established under the pro- visions of this act shall for all purposes of preservation and protection of wild game thereon, be under the control and man- agement of the state board of fish commissioners, and the said board, its officers and employees, and all game wardens, may at all times enter in and upon such preserves, in the performance of their duties. The said board may establish such regulations as may, in its judgment, be necessary for the preservation and pro- tection of the wild game on such preserves, and for that purpose may direct and authorize game wardens or other officers to execute such regulations. All expenses incurred in carrying oul GAME PRESERVES. 581 the provisions of this act and the regulations that may be estab- lished thereunder, shall be a charge against and paid out of the "game preservation fund" established under an act entitled "An act to regulate and license the hunting of game birds and animals and to provide revenue therefrom, for game preservation and restoration and to make appropriations for the purpose of carry- ing out the objects of this act." Penalty. Sec. 3. The hunting, pursuing, shooting, taking, killing or destroying of any wild game within the exterior boundaries of any state game preserve established under the provisions of this act, is hereby declared a misdemeanor, and all fines collected in any prosecution therefor shall l>e paid into said "game preserva- tion fund." Time act shall take effect. Sec. 4. This act shall take effect and be in force from and after its passage. GAS COMPANIES. An act concerning gas companies. Approved April 4, 1870; stats. 1869-70, p. 815. Continued in force by section 19, subdivision 20, of the Pol. C, and by section 23, subdivision 20, Pen. C. Supt rseded and in effect repealed by act of 1895, p. 191, which later act was amended 1897, p. 210, and repealed 1903, p. 32. See, also, section 19, article XI, Con- stitution, amended in 1884. An act to provide for the letting of contracts for lighting of streets and public buildings in cities and towns in the State of California. Approved March 26, 1895; stats. 1895, p. 191 ramended 1897, p. 210. Repeated 1903, p. 32. 582 STATUTES AT LARGE. HEALTH AND SANITATION. An act to provide for the proper sanitary condition of factories and workshops, and the preservation of the health of the employees. Approved February 6, 1889; stats. 18S9, p. 3. Amended March 23, 1901 ; stats. 1901, p. 571. Amended February 12, 1903; stats. 1903, p. 1G. Amended February 22, 1909; stats. 1909, p. 43. Ed. Note. — The provisions of section 4 of this st ;i t li t> • as originally enacted were held to be unconstitutional in the case of Schaezlein vs. Cabaniss, 135 Cal. p. 466. Section 4 was amended in 1901 and again in 1909, and the act is in force and effect in its present form. The people of the State of California, represented in senate and assembly, do enact as follows: Regulations for factories, workshops, mercantile, and other establishments. Section 1. Every factory, workshop, mercantile or other establishment, in which five or more persons are employed, shall he kept in a cleanly state and free from the effluvia arising from any drain, privy, or other nuisance, and shall be provided, within reasonable access, with a sufficient number of water-closets or privies for the use of the persons employed therein. Whenever the persons employed as aforesaid are of different sexes, a suffi- cient number of separate aud distinct water-closets or privies shall be provided for the use of each sex. which shall he plainly so designated, ami im person shall he allowed to use any water- closet or privy assigned to persons of the other sex. Ventilation. Sec. 2. Every factory or workshop in which five or more persons are employed shall he so ventilated while work is carried on therein that the air shall not become so exhausted as to be injurious to the health of the persons employed therein, and shall also be so ventilated as to render harmless, as far as practicable, all the gases, vapors, dust, or other impurities generated in the course of the manufacturing process or handicraft carried on therein, thai may he injurious to health. IIEALTII AND SANITATION. • 583 Unhealthy places condemned. Sec. 3. No basement, cellar, underground apartment, or other place which the commissioner of the bureau of labor statistics shall condemn as unhealthy and unsuitable, shall be used as a workshop, factory, or place of business in which any person or persons shall be employed. Sanitary requirements in certain establishments. Sec. 4. In any factory, workshop, or other establishment where a work or process is carried on by which dust, filaments, or injurious gases are produced or generated, that are liable to be inhaled by persons employed therein, the person, firm or cor- poration, by whose authority the said work or process is carried on, shall cause to be provided and used in said factory, workshop or other establishment, exhaust fans or blowers with pipes and hoods extending therefrom to each machine, contrivance or appa- ratus by which dust, filaments or injurious gases are produced or generated. The said fans and blowers, and the said pipes and hoods, all to be properly fitted and adjusted, and of power and dimensions sufficient to effectually prevent the dust, fila- ments, or injurious gases produced or generated by the above said machines, contrivances or apparatuses, from escaping into the atmosphere of the room or rooms of said factory, workshop or other establishment where persons are employed. [Section 4 amended February 22, 1909; in effect immediately.] Seats for female employees. Sec. 5. Every person, firm, or corporation employing females in any manufacturing, mechanical, or mercantile establishment shall provide suitable seats for the use of the females so em- ployed, and shall provide such seats to the number of at least one third the number of females so employed; and shall permit the use of such seats by them when they are not necessarily engaged in the active duties for which they are employed. [Section 5 amended February 12, 1903.] Penalty for violation. Sec. 0. Any person or corporation violating any of the pro- visions of this act is guilty of a misdemeanor, and upon convic- tion thereof shall be punished by a fine of not less than fifty dollars nor more than three hundred dollars, or by imprisonment in the county jail for not less than thirty days nor more than ninety days, or by both such line and imprisonment, for each offense. [Section • '• amended March 23, 1901. | 584 . STATUTES AT LARGE. Duty of labor commissioner. Sec. 7. It shall be the duty of the commissioner of the bureau of labor statistics to enforce the provisions of this act. Time act shall take effect. Sec. 8. This act shall take effect and be in force from and after its passage. An act providing for the sanitation of food producing estab- lishments, places where food is stored, prepared, kept or manufactured and in which food is distributed; regulating the health of persons by whom the materials from which food is prepared or the finished product is handled; providing for the inspection of such places, persons and things; declaring places and things in violation of this act to be nuisances dangerous to health and providing for the abatement of the same; making violations of this act misdemeanors; and pro- viding for the punishment of the same. Approved March 6, 1909 ; stats. 1909, p. 151. The people <>f the State of California, represented in senate and assembly, do enact as follows: Sanitation required. Section 1. Every building, room, basement or cellar, occu- pied, or used as a bakery, confectionery, cannery, packing-house, slaughterhouse, restaurant, hotel, grocery, meat market, or other place or apartment, used for the production, preparation for sale, manufacture, packing, storage, sale or distribution of any food, shall be properly lighted, drained, plumbed and ventilated, ami conducted with strict regard to the influence of such conditions upon the health of the operatives, employees, clerks or other persons therein employed, and the purity and wholesomeness of (he food therein produced, kept, handled or sold; and for the purpose of this act the term "food" shall include all articles used for food, drink, confectionery or condiment, whether simple or compound, and all substances and ingredients used in the prepa- ration thereof. Protection of food from flies, etc. — Clothing of operatives. SEC. 'J. The lloors, sidewalls, ceilings, furniture, receptacles, utensils, implements and machinery of every establishmenl or place where food is manufactured, packed, stored, sold or dis- IIEALTII AND SANITATION. 585 tributed, shall at no time be kept in an unclean, nnhealthful or unsanitary condition; and for the purposes of this act, unclean, nnhealthful and unsanitary conditions shall be deemed to exist if food in the process of manufacture, preparation, packing, storing, sale or distribution is not securely protected from flies, dust, dirt, unsanitary conditions, and as far as may be necessary. by all reasonable means from all other foreign or injurious con- lamination ; and if the refuse, dirt, and the waste products subject to decomposition and fermentation incident to the manu- facture, preparation, packing, storing, selling and distributing of food, are not removed daily ; and if all trucks, trays, boxes, baskets, buckets, and other receptacles, chutes, platforms, racks, tables, shelves, and all knives, saws, cleavers, and all other utensils, receptacles, and machinery, used in moving, handling, cutting, chopping, mixing, canning, and all other processes used in the preparation of food, are not thoroughly cleaned daily; and if the clothing of operatives, employees, clerks, and other persons therein employed, is unclean, or if they dress or undress, or leave or store their clothing therein. Walls, ceilings, and floors. Sec. 3. The side walls and ceilings of every bakery, con- fectionery, hotel and restaurant kitchen, shall be well plas- tered, or ceiled, with metal or lumber, or shall be oil painted or kept well lime washed, or otherwise kept in a good sanitary condition, and all interior woodwork of every bakery, confec- tionery, hotel and restaurant kitchen, shall be kept well oiled or painted with oil paint, and be kept washed clean with soap and water or otherwise kept in a good sanitary condition ; and every building, room, basement or cellar, occupied or used for the preparation, manufacture, packing, storage, sale or distri- bution of food, shall have an impermeable floor, made of cement or tile laid in cement, brick, wood or other suitable non- absorbent material which can be flushed and washed clean with water. Screens. Sec. 4. The doors, windows and other openings of every food producing or distributing establishment, where practicable, shall be lilted with stationary or self-closing screen doors and wire window screens, of not coarser than fourteen mesh wire gauze. 586 STATUTES AT LARflE. Toilets — Lavatories. Sec. 5. Every building, room, basement or cellar, occupied or used for the preparation, manufacture, packing-, canning, sale or distribution of food, shall have convenient toilet or toilet rooms, separate and apart from the room or rooms where the process of production, manufacture, packing, canning, selling or distributing, is conducted. The floors of such toilet rooms shall be of cement, tile laid in cement, wood, brick or other non- absorbent -material, and shall he washed and scoured daily. Such toilets shall he furnished with separate ventilating pipes or flues, discharging into soil pipes, or on the outside of the building in which they are situated. Lavatories and washrooms shall be adjacent to toilet rooms, and shall be supplied with soap, running water and towels, and shall be maintained in a clean and sanitary condition. Operatives, employees, clerks and all persons who handle the material from which food is prepared, or the finished product, before beginning work and immediately after visiting a toilet or lavatory shall wash their hands and arms thoroughly in clean water. Cuspidors. Sec. 6. Cuspidors, for the use of operatives, employees. clerks and other persons, shall be provided, and each cuspidor shall be emptied and washed out daily with disinfectant solu- tion and not less than five ounces of such solution shall be left in each cuspidor while in use. Xo operative, employee, clerk or other person, shall expectorate or discharge any substance from his nose or mouth, on the floor or interior side wall of any building, room, basement, or cellar where the production, manu- facture, packing, storing, preparation or sale of any food product is conducted. Sleeping in bake shops, etc. Sec. 7. No person shall be allowed to, nor shall he, reside or sleep in any room of a bake shop, public dining-room, hotel or restaurant kitchen, confectionery, or other place where food is prepared, produced, manufactured, served or sold. Infectious diseases. Sic. S. No employer shall require, permit or suffer any per- son to work, nor shall any person work in a building, room, basement, cellar, place or vehicle, occupied or used for the pro- duction, preparation, manufacture, packing, storage, sale, dis- HEALTH A\]> SANITATION. 5S< tribution or transportation of food, who is afflicted or affected with any venereal disease, smallpox, diphtheria, scarlet fever, yellow fever, tuberculosis, consumption, bubonic plague, Asiatic cholera, leprosy, trachoma, typhoid fever, epidemic dysentery, measles, mumps, German measles, whooping-cough, chicken-pox, or any other infections or contagious disease. Health officers, power to inspect — District attorney, duty of. Sec:. 9. The members of the state board of health, inspectors and agents appointed by said board, and all local health officers and inspectors, shall have full power at all times to enter every building, room, basement, cellar, or any place occupied or used, or suspected of being occupied or used, for the production, manu- facture, preparation, storage, sale or distribution of food, and to inspect the premises and all utensils, implements, receptacles, fixtures, furniture and machinery used as aforesaid, and if, upon inspection, any such building, room, basement, cellar, or any such place, vehicle, employer, operative, employee, clerk, driver, or other person, is found to be in violation or violating any of the provisions of this act, or if the production, preparation, manufacture, packing, storing, sale or distribution of food is being conducted in a manner detrimental to the health of the employees or operatives or to the character or quality of the food therein being produced, manufactured, packed, stored, sold, distributed or conveyed, the officer or inspector making the examination shall at once make a written report of the same to the district attorney of the county who shall prosecute all per- sons violating any of the provisions of this act, and also to the state board of health. The state board of health, from time to time, as in its discretion it may determine, may publish such reports in its monthly bulletin. Public nuisances. Sec. 10. All buildings, rooms, basements, cellars, and other places and-things, kept, maintained or operated, or which are, in violation of the provisions of this act or any of them, and all food produced, prepared, manufactured, packed, stored, kept, sold, distributed or transported, in violation of the provisions of this act or any of them, are hereby declared to be public nuisances, dangerous to health. Such nuisances may be abated or enjoined, in an action brought for that purpose by the local or slate board of health, or they may be summarily abated in 5S8 STATUTES AT LABGE. the manner provided by law for the summary abatement of public nuisances dangerous to health. Penal clause. Sec. 11. Any person, firm or corporation, whether as prin- cipal or agent, employer or employee, who violates any of the provisions of this act shall he guilty of a misdemeanor, and each day that conditions or actions, in violation of this act, shall continue, shall lie deemed to be a separate and distinct offense, and for each offense, upon conviction, he shall be pun- ished by a fine of not less than twenty-five dollars, nor more than five hundred dollars, or shall be imprisoned in the county jail for a term not exceeding six months, or by both such fine and imprisonment. An act declaring property infested with certain rodents to be a public nuisance; requiring owners, occupants, and per- sons having possession of or dominion over such property to endeavor to exterminate and destroy such rodents; providing for the inspection of property by boards of health and health officers; authorizing boards of supervisors and other govern- ing bodies to purchase materials and employ inspectors to prosecute such work of extermination; authorizing state and local health authorities to prosecute such work in certain cases; providing for the payment of the expense thereof; making the amount of such expense a lien on the property; providing for the collection of such amount by foreclosure of such lien and declaring any violation of the provisions thereof to be a misdemeanor. Approved March 13, 1909; stats. 1909, p. 311. The in oplt of the State of California, represented in senate am} assembly, do enact as folloivs: Duty of persons to exterminate rodents. SECTION 1. It shall be and is hereby declared to be the duty of every person, firm, co-partnership, company and corporation, owning, leasing, occupying, possessing or having charge of or dominion over, any land, place, building, structure, wharf, pier, dock, vessel or water craft, which is infested with rats, mice, gophers or ground squirrels, or as soon as the presence of the same shall come to his, their, or its knowledge, at once to pro- ceed and to continue in good faith to endeavor to exterminate and destroy such rodents, by poisoning, trapping, and other appropriate means. HEALTH AND SANITATION. 589 State board of health, authority of. Sec. 2. The state board of health and inspectors appointed by such board, and local health officers and inspectors appointed for the purpose, as hereinafter provided, shall have authority, and shall be permitted to enter into and upon any and all lands, places, buildings, structures, wharves, piers, docks, vessels and water craft, for the purpose of ascertaining whether the same are infested with such rodents and whether the requirements of this act as to the extermination and destruction thereof are being complied with; jn-ovided, however, that no building occu- pied as a dwelling, hotel or rooming house, shall be entered for such purpose except between the hours of nine o'clock in the forenoon and five o'clock in the afternoon of any day. Supervisors may appropriate moneys. Sec. 3. The board of supervisors of each county, and the city council or other governing body of each city and county, city and town, whenever it may by resolution determine that it is necessary for the preservation of the public health or to pre- vent the spread of contagious or infectious disease, communi- cable to mankind, or when such board shall so determine that it is necessary to prevent great and irreparable damage to crops or other property, may appropriate moneys for the purchase of, and may purchase, poison, traps and other materials for the purpose of exterminating and destroying such rodents, in such county, city and county, city or town, and may employ and pay inspectors, who shall have authority to and shall prosecute such work of extermination and destruction, under the direction of such board, or of the local health officer, or board of health, ou both private and public property, in such county, city and county, city or town. Refusal to exterminate — Expense of extermination — Sale of property. Sec. 4. Whenever any person, firm, co-partnership, com- pany or corporation, owning, leasing, occupying, possessing or having charge of or dominion over, any land, place, building, structure, wharf, pier, dock, vessel or water craft, which is infested with such rodents, shall fail, neglect or refuse to pro- ceed and to continue to endeavor to exterminate and destroy such rodents, as herein required, it shall be the duty of the state hoard of health, its inspectors and the local hoard of health finO STATUTES AT LARGE. and health officer, at once to cause such nuisance to be abated by exterminating and destroying such rodents. The expense thereof shall be a charge against the county, city and county, city or town, wherein the work is done, and the board of supervisors or other governing body shall allow and pay the same. Thereupon, the clerk of such board shall file in the office of the county recorder a notice of such payment, claim- ing a lien on .such property for the amount of such payment. Any and all sums so paid by such county, city and county, city or town, shall be a lien on the properly on which said nuisance shall have been abated, and may be recovered in an action against such property, which action to foreclose such lien shall be brought, within ninety days after such payment, and be prosecuted by the district, city or town attorney,' in the name of such county, city and county, city or town, and for its benefit. When the property is sold, enough of the pro- ceeds shall be paid into the treasury of such county, city and county, city or town, to satisfy such lien and the costs, and the overplus, if any there be, shall be paid to the owner of the property, if known, and if not known shall be paid into court for the use of such owner when ascertained. AVhen it appears from the complaint in such action that the property on which such lien is to be foreclosed is likely to be removed from the jurisdiction of the court, the court may appoint a receiver to lake possession of the property and hold the same while the action may be pending or until the defendant shall execute and fde a bond, with sufficient sureties, conditioned for the payment of any judgment that may be recovered against him in the action and all costs. Penalty. Sec. 5. Any violation of the provisions of this act shall be deemed a misdemeanor and shall be punishable as such. HOLIDAYS. •">'•> I HOLIDAYS. See, also, Civ. C, §7; Code Civ. Proc. SS 10. 11; Pol. C. §§ 10, 11. An act declaring February 12th, the birthday of Abraham Lincoln, a legal holiday and providing for a half-day session in the public schools on such holiday, and for certain exer- cises in the public schools. Approved April 13, 1009; stats. 1000, p. S61. The people of the State of California, represented in senate the property conveyed, or the right to the possession, or to the rents, issues and profits thereof, unless the same be commenced within two years after the date of filing such grant for record; nor shall any defense be made to any suit, action or proceeding commenced by the trustees named in said grant or their successors, privies or per- sons holding under them, which defense involves the legality of said grant, or affects the title to the property thereby con- veyed, or (lie right of possession, or the rents, issues and profits thereof, unless such defense is made in a suit, action or pro- 594 STATUTES AT LARGE. ceeding commenced within two years after such grant shall have been filed for record, and after such filing said property shall be exempt from execution and forced sale. Time act shall take effect. Sec. 8. This act shall be in force from and after its passage. HOURS OF LABOR. See, also, Pol. C. §§ 3246, 3250. An act to provide for a day of rest from labor. Approved February 27, 1893; stats. 1893, p. 54. The people of the State of California, represented in senate and assembly, do enact as follows: Day of rest. Section 1. Every person employed in any occupation of labor shall be entitled to one day's rest therefrom in seven ; and it shall be unlawful for any employer of labor to cause his employees, or any of them to work more than six days in seven ; provided, howt ver, that the provisions of this section shall not apply to any case of emergency. Meaning of term. Sec. 2. For the purposes of this act, the term day's rest shall mean and apply to all cases, whether the employee is engaged by the day, week, month, or year, and whether the work performed is done in the day or nighttime. Penalty for violation. Sec. •'!. Any person violating the provisions of this act shall be deemed guilty of a misdemeanor. Time act shall take effect. Sec. 4. This act shall take effect and be in force thirty days from and after its passage. IIOURS OF LABOR. 595 An act to provide for a lunch hour for laborers in sawmills, shakemills, shingle-mills, and logging-camps. Approved February 28, 1901 ; stats. 1901, p. 75. The people of the State of California, represented in senate and assembly, do enact as follows: Lunch hour for employees. Section 1. Every person, corporation, co-partnership, or company operating a sawmill, shakemill, shingle-mill, or logging- camp, in the State of California, shall allow to his or its em- ployees, workmen, and laborers a period of not less than one hour at noon for the midday meal. Penalty for violation. Sec. 2. Any person, corporation, co-partnership, or company, his or its agents, servants, or managers, violating any of the provisions of this act shall be guilty of a misdemeanor, and upon conviction thereof shall be punished by a fine of not more than two hundred dollars nor less than one hundred dollars for each violation of the provisions of this act. Time act shall take effect. Sec. .".. This act shall take effeel and be in force on the (irsl day of April, nineteen hundred and one. An act to regulate the work and hours of employees engaged in selling, at retail, drugs and medicines, and compounding physicians' prescriptions, and providing a penalty for the violation thereof. Approved February 28, 1905; stats. 1905, p. 28. Amended March 15, 1907; stats. 1907, p. 273. Ed. Note.- The amendatory ad of 1907 added section 5 and re-enacted sections l. 2, 3. and I. renumbering them 2, 3, I. and 6. Tin- peoph of tin State of California, represented in senate and assembly, do enact as follows: Title of amended act. Section I. An act entitled "An acl i<> regulate the work and hours of employees engaged in selling retail drugs and medicines, and compounding physicians' prescriptions and providing a 596 STATUTES AT LARGE. penalty for the violation thereof," approved February 28th, 1005, is hereby amended by adding thereto a new section to be known and numbered section five. Hours of labor for drug clerks. Sec. 2. As a measure for the protect ion of public health, no person employed by any person, firm or corporation, shall for more than an average of ten hours a day or sixty hours a week of six consecutive calendar days perform the work of selling drugs or other medicines, or compounding physicians' prescrip- tions, in any store, establishment or place of business, where and in which drugs or medicines are sold at retail, and where and in which physicians' prescriptions are compounded; pro- vided, that the answering of and attending to emergency calls shall not be construed as a violation of this act. More than ten hours of labor not to be permitted. Sec. 3. No person, firm or corporation employing another person to do work which consists wholly or in part of selling, at retail, drags or medicines, or of compounding physicians' pre- scriptions, in any store, or establishment or place of business where or in which medicines are sold and where and in which physicians' prescriptions are compounded shall require or permit said employed person to perform such work for more than [an] average of ten hours a day, or sixty hours a week of six con- secutive calendar days. Penalty for violation. Sec. 4. Any person, firm or corporation violating any of the provisions of this act shall be deemed guilty of misdemeanor and shall be punished therefor by a fine not less than twenty dollars nor more than fifty dollars or by imprisonment for not exceeding sixty days, or by both such line and imprisonment, at the dis- cretion of the court. Duty of labor commissioner. Sec. 5. The commissioners of the state bureau of labor sta- tistics are hereby authorized, directed and empowered to enforce the provisions of this act. Repeal of conflicting acts. Sec. 6. All acts or parts of acts inconsistent with the pro visions of this act arc hereby repealed. HOUKS OF LABOR. 597 An act regulating the hours of employment in underground mines and in smelting and reduction works. Approved March 10, 1909 ; stats. 1909, p. 279. The people of the State of California, represented in senate and assembly, do enact as follows: Hours of labor in underground employment — Emergencies. Section 1. That the period of employment for all persons who are employed or engaged in work in underground mines in search of minerals, whether base or precious, or who are engaged in such underground mines for other purposes, or who are employed or engaged in other underground workings whether for the purpose of tunneling, making excavations or to accomplish any other purpose or design, or who are employed in smellers and other institutions for the reduction or refining of ores or metals shall not exceed eight hours within any twenty-four hours, and the hours of employment in such employment or work day shall be consecutive, excluding, however, any intermission of time for lunch or meals : provided that, in the case of emergency where life or property is in imminent danger, the period may be a longer time during the continuance of the exigency or emergency. Penalty for violation. Sec. 2. Any person who shall violate any provision of this act, and any person who as foreman, manager, director or officers of a corporation, or as the employer or superior officer of any person, shall command, persuade or allow any person to violate any provision of this act, shall be guilty of a misdemeanor and upon conviction shall be punished by a fine of not less than fifty dollars ($50.00) nor more than three hundred dollars ($300.00). or by imprisonment of not more than three months. And the court shall have discretion to impose both fine and imprisonment as herein provided. Repeal of conflicting acts. Sec. 3. All acts and parts of acts inconsistent with this act are hereby repealed. 598 STATUTES AT LARGE. INSURANCE. An act relating to life, health, accident, and annuity or endow- ment insurance on the assessment plan, and the conduct of the business of such insurance. Approved March 19, 1891 ; stats. 1891, p. 126. Codified by the legislature of 1905 and therefore superseded by sections 453d to l5Zp of the Civil Code. An act to provide for the organization and management of county fire insurance companies. Approved April 1, 1897; stats. 1S97, p. 439. Amended March 23, 1907 ; stats. 1907, p. 941. Amended April 15, 1909; stats. 1909, p. 912. The people of the State of California, represented in senate and assembly, do enact as follows: Incorporation. Section 1. Any number of persons, not less than twenty- five, residing in any county in this state, owning insurable prop- city aggregating not less than fifty thousand dollars in value, which they desire to have insured, may incorporate for the pur- pose of mutual insurance against loss or damage by fire. Filing of articles of incorporation — Certificate. Sec. 2. Such persons shall file with the insurance commis- sioner a declaration of their intention to incorporate for the purposes expressed in section one of this act, which declaration shall be signed by all of the incorporators, and shall contain a copy of the articles of incorporation proposed to be adopted. The insurance commissioner shall examine the proposed articles of incorporation, and, if they conform to this act, he shall deliver to such persons a certificate permitting them to incorporate as such insurance company. Such certificate shall be directed to the clerk of the county in which such corporation is proposed to be organized, and shall contain a copy of the proposed articles of incorporation. Upon filing with the secretary of state the certified copies of the duly executed articles of incorporation, as required by section two hundred and ninety of the Civil Code of the State of California, and of the certificate above provided INSURANCE. 599 for, the secretary of state shall thereupon issue a certificate of incorporation to such county insurance company, and, upon organizing under such articles of incorporation, such county fire insurance company may carry on a fire insurance business as hereinafter provided. The articles of incorporation and the charter or certificate obtained by any county fire insurance com- pany operating under the provisions of this act shall be subject to I lie control and modification by the legislature of the Stale of California. The by-laws and all amendments thereto shall be filed with the insurance commissioner within sixly (GO) days after their adoption. Directors. Sec. 3. The number of directors shall not be less (ban seven (7), nor more than eleven (11), a majority of whom shall constitute a quorum to do business. These directors shall be elected from the members of the association by ballot, and shall hold office for one year, or until their successors are elected and qualified. The annual meeting of the members of the com- pany shall be on (he second Monday in January of each year. In the election of the first board of directors each member shall be entitled to one vote. At every subsequent election, every per- son insured .shall be entitled to as many votes as there are directors to be elected, and an equal additional number for every risk or risks be holds in the company, and he may cast the same in person or by proxy, distributing them among the directors to be elected, or among a less number of directors, or cumulating them upon one candidate, as he shall see fit. Officers. Sec. 4. The directors shall elect, from their own number, a president and a vice-president, and shall also elect a treasurer and a secretary, who may or may not be members of the com- pany. All of such officers hold their office for one year from the date of their election, and until their successors are elected and qualified. Bonds. Sec. 5. The treasurer and secretary shall give bonds to the company for the faithful performance of their duties, in such amounts as shall be prescribed by the board of directors. 600 STATUTES AT LARGE. Powers — By-laws. SEC. C>. Such corporation and its directors shall possess tbe usual powers, and be subject to the usual duties of corporations and directors thereof, and may make such by-laws, not incon- sistent with the constitution and the laws of this state, as may be deemed necessary for the management of its affairs, in accord- ance with the provisions of this act. Also to prescribe the duties of its officers and to fix their compensation, and to alter and amend its by-laws, when necessary. Membership. Sec. 7. Any person owning property in the county for which any such company is formed or any person owning property in any county adjoining the county wherein such company is formed as hereinafter provided may become a member of such company by insuring therein, and shall be entitled to all the rights and privileges appertaining thereto; and no person not residing in the county in which tbe company is formed shall be- come a dh"ector of such company. [.Section 7 amended March 28, 1907.] Risks. Sec. 8. Such company may issue policies only on detached dwellings, schoolhouses, churches, barns (except livery barns and hotel barns), and other farm buildings, and such property as may be contained therein ; also, other property on the premises owned by the insured ; hay and grain in stack or in the field, and live stock on the premises of the insured, any- where in the county, for any time not exceeding five years, and not to extend beyond the time limited for the existence of the charter, and for an amount not to exceed four thousand five hundred dollars on any one risk ; provided, that no company which has been organized more than six months shall write insurance subject to one fire exceeding three per cent of the amount at risk upon the books of such company. All persons so insured shall give their obligation to the company, binding themselves, their heirs and assigns, to pay their pro rata share to the company of the necessary expense and of loss by fire which may be sustained by any member thereof during the time for which their respective policies are written, and they shall also at the time of effecting the insurance pay such a percentage in cash, and such other charges, as may be required by the rules or by-laws of the company. INSURANCE. 603 Classifying risks. Sec. 9. All such companies must classify the property insured therein at the time of issuing policies thereon under different rates, corresponding as nearly as may be to the greater or less risk from fire loss which may be attached l<> the several kinds of property insured. Limitations upon risks taken. Six - . 10. No such company shall insure any property beyond the limits of the county wherein the said company is organized except that a company may insure in any county next adjoining the county wherein such company is organized where no mutual company exists or is organized therein, and as soon as a mutual company shall be organized therein said company first insuring and with its original place of business in the adjoining county. shall as soon as its policies originally issued expire, or shall be canceled, retire therefrom. Nor shall any company issue policies of insurance on any property within the limits of any city con- taining over six thousand inhabitants ai the time of the organ- ization of such company : provided, that no dwelling shall be insured within the corporate limits of any city or town exposed by any other building within one hundred feet, or by any other risk (other. than a dwelling or private barn, the property of the same insured) within two hundred feet of the risk assumed: provided, that the amount of insurance shall not exceed seventy- five per cent of the value of the property, and that no additional insurance shall be allowed. [Section amended April 15, 1!)09 ; in effect in sixty days.] Adjustment of losses — Arbitration. Sec. 11. Every member of such company who may sustain loss or damage by fire shall immediately notify the president, or in his absence, the secretary thereof, stating the amount of damage or loss sustained or claimed, and if not more than fifteen hundred dollars, then the president and secretary shall proceed to ascertain the amount of such loss or damage and adjust the same. If the claim for damage of loss be for an amount greater than fifteen hundred dollars, then the president of such com- pany, or in his absence, the vice-president, or in the absence of both, the secretary thereof, shall forthwith convene the board of directors of such company, whose duty it shall be when con- vened, to appoint a committee, of not less than three disin- 26— cl 602 STATUTES AT LARGE. terested members of said company, to ascertain the amount of such damage or loss. If in either case there is a failure of the parties to agree upon the amount of such damage or loss they may submit the question of the amount of such loss to arbitra- tion, and in that event the president of the company shall appoint one disinterested person to act as an arbitrator, and the claimant or insured shall appoint another, and if such two arbitrators fail to agree upon the amount of such loss, then they shall select a third disinterested person to act with them, and such arbitrators so appointed shall have full authority to examine witnesses and to do all other things necessary to the proper determination of the amount of loss sustained by the claimant, and shall make their award in writing to the presi- dent of the company, and to the insured, and such award so as aforesaid made, shall be final as to the amount of the loss sus- tained. The pay of said committee shall be three dollars per day for each day's services so rendered, and five cents for each mile necessarily traveled in the discharge of their duties, which shall be paid by the claimant unless the award of such com- mittee shall exceed the .sum offered by the company in liquida- tion of such loss or damage, in which case such expense shall be paid by the company. [Section 11 amended April 15, 1909; in effect in sixty days.] Assessments for deficiency. Sec. 12. When the amount of any loss shall have been ascer- tained, which exceeds in amount the cash funds of the company, the president shall convene the directors of said company, who shall make an assessment upon all the property to the amount for which each several piece of property is insured, taken in con- nection with the rate of premium under which it may be classi- fied ; /a Drilled further, that the board of directors may at their annual meeting levy an assessment not to exceed twenty-five cents on the one hundred dollars on first-class insurance and a pro rata amount on other classes and said sum so raised shall constitute a reserve fund to be used in emergency cases only and another assessment for this fund shall not be made while this reserve remains intact. [Section 12 amended March 23, 1907. J Notice of assessments. Sec. 13. It shall be the duty of the secretary, whenever such an assessment shall have been made, to immediately notify every person holding a risk in such company, personally, by an agent, INSURANCE. 603 or by letter directed to his usual post office address, of the amount of such loss, and the sum due from him, as his share thereof, and of the time and to whom such payment is to be made; but such time shall not be less than thirty days, nor more than ninety days from the date of such notice. Action for neglect or refusal to pay assessment. Sec. 14. An action may be brought against any member of such company who shall neglect or refuse to pay any assessmeui made upon him by the provisions of this act, or other liabilities due the company, and the directors of any company so formed who shall willfully refuse or neglect to perform the duties imposed upon them by law or by the by-laws of the company shall be liable in their individual capacity to the person sustain- ing such loss. An action may also be brought and maintained against any such company by members thereof for losses sus- tained if payment is withheld after the amount of such losses have been determined, and is due by the terms of the policy. Annual statement. Sec. 15. It shall be the duty of the secretary to prepare an annual statement showing the condition of such company on the thirty-first day of December, and present the same at the annual meeting. Withdrawal. Sec. 16. Any member of such company may withdraw there from by surrendering his policy for cancellation at any time while the organization continues the business for which it was organized, by giving notice in writing to the secretary thereof, and paying his share of all claims that may exist against such company ; provided, that the company shall have power to cancel or terminate any policy by giving the insured five days' written notice to that effect, and returning to him any excess of pre- mium he may have paid during the term of the policy, over the cost of his insurance, as measured by the rates of standard fire insurance companies doing business in Ibis state. Report of officers. Sec. 17. It shall be the duty of the president and secretary, within thirty days a tier (he first day of January in each year, to . prepare, under their own oath, and transmit to the insurance commissioner, a statement of the condition of the company on the last day of the month next preceding the annual meeting. 604 STATUTES AT LAKGE. If. upon examination, the insurance commissioner finds that such company is doing business correctly, in accordance with the pro- visions of this act, he shall thereupon furnish the company his certificate, which shall be deemed authority to continue business during the ensuing year, subject, however, to the provisions of this act. For such examination and certificate the company shall pay one dollar. Each company shall pay, at the time of organi- zation, five dollars to the insurance commissioner, for all services which he shall render in the matter of organization. Dissolution. Sec. 18. Any such company may be proceeded againsl ami dissolved in the manner and upon the same conditions as provided in case of other insurance companies incorporated in lliis stale. Conflicting laws repealed. Sec. l'.». All acts ami parts of acts in conflict with this act are hereby repealed. An act providing for the organization and management of mutual fire insurance companies. Approved March 10. liiOT ; stats. 1907, p. 631. The people «. . . . Agent. STIPULATIONS AND CONDITIONS SPECIALLY REFERRED TO. Property not covered. («) This company shall not be liable for loss to accounts, bills, currency, evidences of debt or owner- ship or other documents, money, notes or securities; nor. ( b ) unless liability is specifically assumed hereon, for loss to bullion, casts, curiosities, drawings, dies, jewels, manuscripts, medals, models, patterns, pictures, scientific apparatus, busi- ness or store or office furniture or fixtures, sculptures, frescoes, decorations, or property held on storage or for repair. G16 STATUTES AT LARGE. Hazards .not covered. This company will not be liable for loss by (a) theft; or (b) by neglect of the insured to use all reason- able means to save and preserve the property at and after a tire, or when the property is endangered by fire; or (c) (unless fire ensues, and in that event for the damage by fire only) by explosion of any kind or lightning; or (d) by invasion, insur- rection, riot, civil war, or commotion, or (except as hereinafter provided) by military or usurped power, or order of any civil authority, but the company will be liable (unless otherwise pro- vided by endorsement hereon or added hereto) if the property is lost or damaged, by fire or otherwise, by civil authority or military or usurped power exercised to prevent the spread of fire not originating from a cause excepted hereunder and which fire otherwise probably would have caused the loss of or damage to the insured property. Matters avoiding policy. This entire policy shall be void, (a) if the insured has concealed or misrepresented any material fact or circumstances concerning this insurance or the subject thereof; or, (b) in case of any fraud or false swearing by the insured touching any matter relating to this insurance or the subject thereof, whether before or after a loss. Unless otherwise provided by agreement endorsed hereon or added hereto, this entire policy shall be void, («) if the insured now has or shall procure any other insurance, whether valid or not, on property covered in whole or in part by this policy, or (b) if the interest of the insured be other than unconditional and sole ownership, or (c) if the subject of insurance be a building on ground not owned by the insured in fee simple, or (d) if with the knowledge of the insured foreclosure proceed- ings be commenced or notice given of sale of any property covered by this policy by virtue of any mortgage or trust deed, or (e) if this policy be assigned before a loss. Matters suspending insurance. Unless otherwise provided by agreement endorsed hereon or added hereto this company shall not be liable for loss or damage occurring (a) while the hazard be materially increased by any means within the control of the insured; or (t>) if the subject of insurance be a manufacturing establishment, while it is operated in whole or in part at night later (ban ten o'clock or while it ceases to be operated beyond the period of ten consecutive days; or (c) while mechanics or artisans are employed in building or altering or repairing the INSURANCE. ) days' written notice of cancellation to the insured and to any mortgagee or other party to whom, with the written con- sent of the company, this policy is made payable in which case the company shall, upon surrender of the policy or relinquish- ment of liability thereunder refund the excess of paid premium above the pro rata premium for the expired time. Duty of insured in case of Ions. When a loss occurs the insured must give to this company written notice thereof with- out unnecessary delay; and shall protect the property from further damage: forthwith separate the damaged and undam- aged personal property and put it in the best possible order ; and without unnecessary delay make a complete inventory stat- ing as far as possible the quantity and cost of each article, and the amount claimed thereon. Within sixty days after the commencement of the fire the insured shall render to the company at its main office in Cali- fornia named herein preliminary proof of loss consisting of a written statement signed and sworn to by him setting forth : — (h) his knowledge and belief as to the origin of the fire; (b) the interest of the insured and of all others in the property; (c) the cash value of the different articles or properties and the amount of loss thereon; (d) all incumbrances thereon; (c) all other insurance whether valid or not, covering any of said articles or properties; (f) a copy of the descriptions and schedules in all other policies unless similar to this policy, and in that event, a statement as to the amounts for which the different articles or properties are insured in each of the other policies; (g) any changes of title, use, occupation, location or possession of said property since the issuance of this policy; (h) by whom and for what purpose any building herein described, and the several parts thereof, were occupied at the time of the fire. If the company claims that the preliminary proof of loss is defective and within five days after the receipt thereof (with- out admitting the amount of loss or any part thereof) notifies in writing the insured, or the party making such proof of loss, of the alleged defects (specifically stating them) and requests that they be remedied by verified amendments the insured or such party within ten days after the receipt of such notifica- INSURANCE. 619 lion and request must comply therewith <>r. if unable so to do, present to the company an affidavit to that effect. The insured shall also furnish, if required, as far as it is practicable to obtain the same, verified plans and specifications of any buildings, fixtures or machinery destroyed or damaged; and the insured shall exhibit to any person designated in writing by this company all that remains of any property herein described and shall submit to examination under oath, as often as required, by any such person, and subscribe to the testimony so given and shall produce to such person for examination all hooks of account, hills, invoices and other vouchers, and permit extracts and copies thereof to lie made, and in case the originals are lost certified copies, if obtainable, shall be produced. Ascertainment of amount of loss. This company shall be deemed to have assented to the amount of the loss claimed by the insured in his preliminary proof of loss, unless within twenty days after the receipt thereof, or, if verified amendments have 1 n requested, within twenty days after their receipt, or within twenty days after the receipt of an affidavit that the insured is unable to furnish such amendments, the company shall notify the insured in writing of its partial or total disagreement with the amount of loss claimed by him and shall also notify him in writing of the amount of loss, if any, the company admits on each of the different articles or properties set forth in the pre- liminary proof or amendments thereto. If the insured and this company fail to agree, in whole or in part, as to the amount of loss within ten days after such notifi- cation, this company shall forthwith demand in writing an appraisement of the loss or part of loss as to which there is a disagreement and shall name a competent and disinterested appraiser, and the insured within five days after receipt of such demand and name, shall appoint a competent, and disin- terested appraiser and notify the company thereof in writing, and the two so chosen shall before commencing the appraise- ment, select a competent and disinterested umpire. The appraisers timet her shall estimate and appraise the loss or part of loss as to which there is a disagreement, stating separately the sound value and damage, and if they fail to agree they shall submit their differences to the umpire, and the award in writing duly verified of any two shall determine (he amount or amounts of such loss. <*.'_•() STATUTES AT LARGE. The parties to the appraisement shall pay the appraisers respectively appointed by them and shall bear equally the expense of the appraisement and the charges of the umpire. If for any reason not attributable to the insured, or to the appraiser appointed by him, an appraisement is not had and completed within ninety days after said preliminary proof of loss is received by this company, the insured is not to be preju- diced by the failure to make an appraisement, and may prove the amount of his loss in an action brought without such .•ippraisement. Options of company in case of loss. This company may, at its option, take all or any part of the property for which insurance hereunder is claimed at its ascertained or appraised value, and may also, at its option, in satisfaction of its liability hereunder, repair, rebuild or replace any building or 'structure or machine or machinery used therein, with other of like kind and quality, within a reasonable time, upon giving notice within twenty days of its intention so to do after the receipt by it of the preliminary proof of loss, or, if verified amendments have been requested, within twenty days after their receipt, or, within twenty days after the receipt of an affidavit that the insured is unable to furnish such amendments. There can be no abandonment to this company of any property. Apportionment of loss. This company shall not be liable under this policy for a greater proportion of any loss on the described property, or for loss by, and expenses of, removal from the premises endangered by fire, than the amount hereby insured bears to the entire insurance covering such property whether valid or not, or by solvent or insolvent insurers. Loss when payable. A loss hereunder shall be payable in thirty days after the amount thereof has been ascertained either I i,v agreement or by appraisement ; but if such ascertainment is not had or made within sixty days after the receipt by the com- pany of the preliminary proof of loss, then the loss shall be pay- able in ninety days after such receipt. Von-waiver by appraisal or examination. This company shall not be held to have waived any provision or condition of this policy or any forfeiture thereof, by assenting to the amount of the loss or damage or by any requirement, act, or proceeding on ils part relating to the appraisal or to any examination herein provided for. INSURANCE. <''- 1 Subrogation. If this company shall claim that the fire was caused by the act or neglect of any person or corporation, this company shall, on payment of the loss be subrogated to the extent of such payment to all right of recovery by the insured for the loss resulting therefrom, and such right shall be assigned to this company by the insured on receiving such payment. Time for commencement of action. No suit or action on this policy for the recovery of any claim shall be sustained, until after full compliance by the insured with all of the foregoing requirements, nor unless begun within fifteen months next after the commencement of the tire. Definitions. Wherever in this policy the word "insured" occurs, it shall he held to include the legal representatives of the insured in case of his death, and wherever the word "loss" occurs, it shall he deemed the equivalent of "loss or damage," and wherever the words "the time of loss or damage" are used they shall be deemed the equivalent of "the time of the com- mencement of the fire." What to be printed on outside fold of policy. Sec. 2. There shall he printed on the outside fold of said policy in type not smaller than small pica the following words in this form : HEAD THIS POLICY. Ins. Co. is liable only for actual cash value. Policy is void in ease of any fraud, false swearing, misrepresentation or concealment about material facts. Policy is void, unless otherwise agreed in writing, if 1st. It is assigned before loss ; lid. Insured has or shall procure other insurance; 3d. Any change occurs in location of property : 4th. Insured building is on ground not owned in fee simple by insured ; 5th. Insured is not sole and unconditional ow T ner. Pot, icy is st'SPENDEi), unless otherwise agreed in writing, if 6th. Described building becomes vacant or unoccu pied for ten days ; 7th. Mechanics are employed more than fifteen days in repairing same: 8th. Properly is or becomes encumbered by chatlil mortgage ; 622 STATUTES AT LARGE. 9th. Illuminating gas or vapor is generated in or adjacent to described building ; 10th. Explosives or prohibited quantities of gasoline, etc., are kept on premises. Insurance ceases if described building or any ma- terial part falls except as result of fire. Policy does not cover certain enumerated personal property. Note particularly duty of insured in case of loss; Also provisions avoiding or suspending policy, including changes of ownership or possession. Special agreement regarding appraisement. Sec. 3. By special agreement endorsed on the policy or added thereto the provisions regarding appraisement or apportionment of loss may be waived and the valuations of all or any of the insured property in case of total loss may be agreed upon in advance of loss. Policy to be plainly printed. Sec. 4. Said standard form of policy shall be plainly printed and no portion thereof shall be in type smaller than small pica and subheads shall be in type larger than pica, and the lines of (he policy shall be numbered consecutively. County fire companies excepted. Sec. 5. This act shall not apply to any company organized under an act entitled "An act to provide for the organization and management of county Are insurance companies," approved April 1, 1897, or amendments to that act, but all other fire insurance policies on property in California shall be on said standard form, and, except as herein provided, shall not contain additions thereto. No parts of the standard form shall be uniii led therefrom. What may be added to policy. Ski:. <>. The blanks in said standard form shall be appro- priately filled. The company may add to the standard form any matter relating to its financial condition, directors, officers, stockholders and history, and the address of its home office and principal office in the United States ; also in red ink any pro- visions respecting any limitation of liability of the company, its slockholders or members which il is required or permitted by INSURANCE. (>23 the law of the state or country of its organization to insert in its policies. Clauses as to mortgages. Sec. 7. Clauses may be added to the standard form providing for and defining the rights, duties and obligations of mortgagees, assignees and other parties who have acquired or may acquire an interest in, right to or lien upon the insured property. Earthquake clause may be inserted, how. Sec. 8. No clause shall be inserted- or rider attached affecting the standard form liability of the insurer for loss or damage by lire occasioned either directly or indirectly by earthquake, hurri- cane, volcanic action or other disturbance of nature, unless the same shall be printed in red ink in type larger than small pica and at the head of the policy there shall be printed in red ink in large bold faced type the words, "This policy contains limitations of liability not permitted in the California standard form." Other additional clauses. Sec. 0. Clauses may be added to the standard form (a) cov- ering property and risks not otherwise covered; (6) assuming greater liability than is otherwise imposed on the insurer; (c) granting insured permits and privileges not otherwise pro- vided; (rf) waivers of any of the mallei's avoiding the policy or suspending the insurance; (e) waivers of any of the require- ments imposed on I he insured after loss. Separate riders. Sec. 10. Except as herein otherwise provided clauses may be attached to the standard form by separate riders in type larger than pica imposing specified duties and obligations upon the insured and limiting the liability of the insurer. Insurers other than corporations. SEC. 11. Any insurers, other than corporations, issuing poli eies on property in California, shall use the standard form, changing only such words as refer to the corporation or company or to officers or agents of the corporation or company, and in regard to its organization ; and such other insurers may substitute in place of such words having peculiar reference to corporations, appropriate words having similar reference to themselves. 02 I STATUTES AT LARGE. Penalty for violation of act. Sec. 12. Any insurer, or the agent countersigning or issuing a fire insurance policy covering in whole or in part property in California varying from the California standard form of policy except as herein provided is guilty of a misdemeanor but any policy so issued shall notwithstanding be binding upon the com- pany issuing the same. Time act shall take effect. Sec. 13. This act shall lake effect and be in force from and after the first day of August, 1909. INTEREST. See Brokers. LICENSE TAX. An act to enforce the collection of license taxes. Approved March 21, 1872; stats. 1871-2, p. 539. The people of the State of California, represented in senate and assembly, do enact as follows: Proceedings for collection of delinquent tax. Section 1. Whenever any person who is required by law to pay a ferry or bridge license tax neglects to pay the same for the period of thirty days after the same is due or payable, the col- lector of such taxes must notify the district attorney thereof, who must at once institute proceedings against such person. Time act shall take effect. Sec. 2. This act shall be in force from and after its passage. LICENSE TAX. I!'-'- - ) An act relating to revenue and taxation, providing for a license tax upon corporations, and making an appropriation for the purpose of carrying out the objects of this act. Approved March 20, 1905; stats. 1905, p. 493. Amended June 13, 1906; stats. 1906, p. 22. Amended March 19, 1907; stats. 1907, p. 664. Amended March 20, 1907; stats. 1907, p. 745. Amended March 19, 1909; stats. 1909. pp. 154, !. r ,8, 459. The people of the State of California, represented in senate and assembly, do enact as follows: Corporation not to do business without state license. Section 1. No corporation heretofore or hereafter incorpo- rated under the laws of this state, or of any other state, shall do or attempt to do business by virtue of its charter or certifi- cate of incorporation, in this state, without a state license there- for. [Section 1 amended June 13, 11)06.] Of whom procured — Amount of annual license tax — When pay- able — When delinquent — Definition of "year." Sec. 2. It shall be the duty of every corporation incorpo- rated under the laws of this state, and of every foreign corpora- tion now doing business, or which shall hereafter engage in business in this state, to procure annually from the secretary of state a license authorizing the transaction of such business in this state, and shall pay therefor a license tax as follows : When the authorized capital stock of the corporation does not exceed ten thousand dollars ($10,000) the tax shall be ten dol- lars ($10.00) ; when the authorized capital stock exceeds ten thousand dollars ($10,000) but dors not exceed twenty thou- sand dollars ($20,000) the tax shall he fifteen dollars ($15.00) ; when the authorized capital stock exceeds twenty thousand dol- lars ($20,000) but does not exceed fifty thousand dollars ($50,000) the tax shall be twenty dollars ($20.00) ; when the authorized capital stock exceeds fifty thousand dollars ($50,000) but does not exceed one hundred thousand dollars ($100,000) the tax shall be twenty-five dollars ($25.00) ; when the author- ized capital stock exceeds one hundred thousand dollars C$100,000) but does no1 exceed two hundred and fifty thousand dollars ($250,000) the tax shall he fifty dollars ($50.00) ; when the authorized capital stock exceeds two hundred and fifty thousand dollars ($250,000) but does not exceed five hundred 27— cl 626 STATUTES AT LARGE. thousand dollars ($500,000) the tax shall be seventy-five dollars ($75.00) : when the authorized capital .stock exceeds five hun- dred thousand dollars ($500,000) but does not exceed two mil- lion dollars ($2,000,000) the tax shall be one hundred dollars ($100.00) ; when the authorized capital stock exceeds two mil- lion dollars ($2,000,000) but does not exceed five million dollars ($5,000,000) the tax shall be two hundred dollars ($200.00) ; when the authorized capital stock exceeds live million dollars ($5,000,000) the tax shall be two hundred and fifty dollars ($250.00). Said license tax 2 STATUTES AT LARGE. MINES AND MINING. See Hours of Labor, for act of 1000. regulating, in mines. An act for the protection of miners. Approved March Hi, 1X72; stats. 1871-L', p. 413. The people of the State of California, represented in senate and assembly, do enact as follows: Provision for second mode of egress from mines of certain depth. Section 1. It shall not be lawful for any corporation, asso- ciation, owner, or owners of any quartz-mining claims within the State of California, where such corporation, association, owner or owners employ twelve men daily, to sink down into such mine or mines any perpendicular shaft or incline beyond a depth from the surface of three hundred feet without provid- ing a second mode of egress from such mine, by shaft or tunnel, lo connect with the main shaft at a depth of not less than one hundred feet from the surface Escape-shaft. Sec. 2. It shall be the duty of each corporation, association. owner, or owners of any quartz mine or mines in this state, where it becomes necessary to work such mines beyond the depth of three hundred feet, and where the number of men employed therein daily shall be twelve or more, to proceed to sink another shaft or construct a tunnel so as to connect with the main working-shaft of such mine as a mode of escape from underground accident, or otherwise. And all corporations, associations, owner, or owners of mines as aforesaid, working at a greater depth than three hundred feet, not having any other mode of egress than from the main shaft, shall proceed as herein provided. Liabilities — Damages. Sec. 3. When any corporation, association, owner, or owners of any quartz mine in this state shall fail to provide for the proper egress as herein contemplated, and where any accident shall occur, or any miner working therein shall be hurt or injured, and from such injury might have escaped if the second MINES AND MINING. 633 mode of egress had existed, such corporation, association, owner or owners of the mine where the injuries shall have occurred shall be liable to the person injured in all damages that may accrue by reason thereof; and an action at law in a court of competent jurisdiction may be maintained against the owner or owners of such mine, which owners shall be jointly or severally liable for such damages. And where death shall ensue from injuries received from any negligence on the part of the owners thereof, by reason of their failure to comply with any of the provisions of this act. the heirs or relatives surviving the deceased may commence an action for the recovery of such damages as provided by an act entitled an act requiring com- pensation for causing death by wrongful act, neglect, or default, approved April twenty-sixth, eighteen hundred and sixty-two. Time act shall take effect. Sec. 4. This act shall take effect and be in force six months from and after its passage. An act for the protection of coal mines and coal miners. Approved March 27, 1S74 : .stats, is?::- 1, p. 726. The people of the State of California , represented in senate and assembly, do enact as follows: Map of mine. Section 1. The owner or agent of every coal mine shall make or cause to be made an accurate map or plan of the work- ings of such coal mine, on a scale of one hundred feet to the inch. Copies for inspection. Sec. '2. A true copy of which map or plan shall be kept at the office of the owner or owners of the mine, open to the inspec- tion of all persons, and one copy of such map or plan shall be kept at the mines by the agent or other person having charge of the mines, open to the inspection of the workmen. Two outlets to be provided. Sec. 3. The owner or agent of every coal mine shall provide al least two shafts, or slopes, or outlets, separated by natural strata of nol less than one hundred and fifty feel in breadth, (134 STATUTES AT LARGE. by which shafts, slopes, or outlets distinct means of ingress and egress are always available to the persons employed in the coal mine; provided, that if a new tunnel, slope, or shaft will be required for the additional opening, work upon the same shall commence immediately after the passage of this act, and con- tinue until its final completion, with reasonable dispatch. Ventilation of mine. Sec. 4. The owner or agent of every coal mine shall provide and establish for every such mine an adequate amount of venti- lation, of not less than fifty-five cubic feet per second of pure air, or thirty-three hundred feet per minute, for every fifty men at work in such mine, and as much more as circumstances may require, which shall be circulated through to the face of each and every working place throughout the entire mine, to dilute and render harmless and expel therefrom the noxious, poisonous gases, to such an extent that the entire mine shall be in a fit state for men to work therein, and be free from danger to the health and lives of the men by reason of said noxious and poisonous gases, and all workings shall be kept clear of standing gas. Inside overseer to be employed — Duties. Sec. 5. To secure the ventilation of every coal mine, and provide for the health and safety of the men employed therein, otherwise and in every respect, the owner, or agent, as the case may be, in charge of every coal mine, shall employ a competent and practical inside overseer, who shall keep a careful watch over the ventilating apparatus, over the air ways, the traveling ways, the pumps and sumps, t lie timbering, to see as the miners advance in their excavations that all loose coal, slate, or rock overhead is carefully secured against falling; over the arrange- ments for signaling from the bottom to the top, and from the top to the bottom of the shaft or slope, and all things connected with and appertaining to the safety of the men at work in the mine. He, or his assistants, shall examine carefully the work- ings of all mines generating explosive gases, every morning before the miners enter, and shall ascertain that the mine is free from danger, and the workmen shall not enter the mine until such examination lias been made and reported, and the cause of danger, if any, lie removed. MINES AND MINING. 035 Additional duties. Sec. (5. The overseer shall see thai the hoisting machinery is kept constantly in repair and ready for use, to hoist the work- men in or out of the mine. Application of word "owner." Sec. 7. The word "owner" in this act shall apply to lessee as well. Right of action. Sec. 8. For any injury to person or property occasioned by any violation of this act, or any willful failure to comply with its provisions, a right of action shall accrue to the party injured for any direct damages he or she may have sustained thereby, before any court of competent jurisdiction. Liability. Sec. !). For any willful failure or negligence on the part of the overseer of any coal mine, he shall be liable to conviction of misdemeanor, and punished according to law ; provided, that if such willful failure or negligence is the cause of the death of any person, the overseer, upon conviction, shall be deemed guilty of manslaughter. Inspection of boilers. Sec. 10. All boilers used for generating steam in and about coal mines shall be kept in good order, and the owner or agent thereof shall have them examined and inspected, by a competent boilermaker, as often as mice in three mouths. Not to apply to opening of mine. Sec. 11. This ad shall not apply to opening a new coal mine. Time act shall take effect. SEC. 12. This act shall lake effeel immediately. An act for the better protection of the stockholders in corpora- tions formed under the laws of the State of California, for the purpose of carrying on and conducting the business of mining. Approved March 30. 1 s? t ; stats. 1873-4, p. 866. Amended. stats. L880, p. Kit; 1SH7, p. :ts. Portion of amendatory act of 1897 unconstitutional (.Johnson vs. Tautphaus, 127 Cal. 604). Remaining portion codified in Civ. C. SS 58S, 589, 590, as adopted in 1905. 636 STATUTES AT LARGE. An act for the further protection of stockholders in mining companies. Approved April 23, 1880; stats. 1880, p. 131. Amended, stats. L897, p. 96. Unconstitutional as to section 3 ( Krause vs. Dur- brow, 127 Cal. 681). See Lacy vs. Gunn, 144 Cal. 511. Re- pealed, stats. 1905, p. 74. An act to establish a uniform system of mine bell signals, to be used in all the mines operated in the State of California, and for the protection of miners. Approved March 8, 1893; stats. 1893, p. 82. The people of the State of California, represented in senate and assembly, d" enact as folloios: Code or system of mine bell signals. Section 1. Every person, company, corporation, or indi- vidual, operating any mine within the State of California — gold, silver, copper, lead, coal, or any other metal or substance where it is necessary to use signals by means of bell or other- wise, for shafts, inclines, drifts, crosscuts, tunnels, and under- ground workings — shall, after the passage of this bill, adopt, use, and put in force the following system or code of mine bell signals, as follows : 1 bell, to hoist. I See Rule 2.) 1 bell, to stop if in motion. 2 bells, to lower. < See Rule 2. I '.', bells, man to be hoisted; run slow. (See Rule 2.) 1 bells, start pump, if not running, or stop pump if running. 1 — 3 bells, start or stop air compressor. ."> bells, send down tools. (See Rule 4.) . ) MINES AND MINING. 037 Rules. Sec. 2. For the purpose of enforcing and properly under- standing the above code of signals, the following rules are hereby established : Rule 1 — In giving signals make strokes on bell at regular intervals. The bar ( — ) must take the same time as for one stroke of the bell, and no more. If timber, tools, the foreman, bucket, or cage, are wanted to stop at any level in the mine, signal, by number of strokes on the bell, the number of the level first before giving the signal for timber, tools, etc. Time between signals to be double bars ( ). Examples: 5, would mean stop at sixth level with tools. 4 1 — 1 — 1 — — 1, would mean stop at fourth level, man on, hoist. • 2 1 — 4. would mean stop at second level with foreman. h'ule 2 — No person must get off or on the bucket or cage while the same is in motion. When men are to be hoisted, give the signal for men. Men must then get on bucket or cage, then give the signal to hoist. Bell cord must be in reach of man on the bucket or cage at stations. Rule 3 — After signal "Ready to shoot in shaft," engineer must give his signal when he is ready to hoist. Miners must then give the signal of "Men to be hoisted." then "spit fuse," gel into the bucket, and give the signal to hoist. Rule 4 — All timbers, tools, etc., "longer than the depth of the bucket," to be hoisted or lowered, must be securely lashed at the upper end to the cable. Miners must know they will ride up or down the shaft withoul catching on rocks or timbers and be thrown out. Rule J — The foreman will see that one printed sheet of these signals and rules for each level ami one for the engine-room are attached to a board not less than twelve inches wide by thirty-six inches long, and securely fasten the board up where signals can be easily read at the places above stated. Rule 6 — The above signals and rules must be obeyed. Any violation will be sufficient grounds for discharging the party or parties so doing. No person, company, corporation, or indi- viduals operating any mine within the State of California, shall be responsible for accidents that may happen to men disobeying the above rules and signals. Said notice and rules shall be signed by the person or superintendent having charge <>f the mine, who shall designate the mime of the corporation or the owner of the mine. G38 STATUTES AT LARGE. Responsibility. Sec. .'!. Any persou <>r company failing to carry out any of the provisions of this act shall be responsible for all damages arising to or incurred by any person working in said mine during the time of such failure. Time act shall take effect. Sec. 4. This act shall take effect immediately. See Manning vs. Ann. Consolidated hl Mining Co., 149 Cal. MUNICIPAL CORPORATIONS. An act to provide for the organization, incorporation, and government of municipal corporations. Approved March 13, 1883; stats. 1883, p. 03. The people of the Shite of California, represented in senate ami assembly, do enact as follows: $ $ :£ $ % % :$ Ed. Note. — Cities eligible, by reason of their population, for incorporation as cities of the first, first and one half, second, third, and fourth classes, as well as some cities in the fifth class, containing over 3,5'tO inhabitants, are operating under their own charters, under the provisions <>f article XI, sections 8 anil s'._. of the Constitution of California. CHAPTER VI. MUNICIPAL CORPORATIONS OF THE FIFTH CLASS. [Cities having a population of nunc than 3,000 ami nol exceeding 10,000 inhabitants. | :J: :;< £ :,: :£ :|: ^: Powers of boards of trustees. L Subdivisions 3 and 13 provide for granting contracts and franchises.] Sec. 7t>4. The board of trustees of such city shall have power : 1. To pass ordinances not in conflict with the constitution anil laws of this state, or of (lie United States. "_'. 'I'o purchase, lease, or receive such real estate ami per- sonal property as may be necessary or proper for municipal MUNICIPAL CORPORATIONS. 639 purposes, and to control, dispose of. and convey the same for the benefit of the city; provided, that they shall not have any power to sell or convey any portion of any water front; but may rent such water front for a term not exceeding ten years for the purpose of erecting- bath houses thereon. 3. To contract for supplying the said city with water, and gas, and electric lights or other lights for municipal purposes; to purchase, lease, construct or otherwise acquire water works, electric plants, and gas works or plants or any of same, and all machinery, conductors, lands, appliances and all other things needed therefor, and to supply said city with, and to sell to the inhabitants of said city, gas. electric light or other light, ami heat, and power: provided that no such purchase or lease shall lie made unless the question of acquiring such property is sub- mitted to the voters of such city in the same manner as other propositions, at a general or special municipal election, and a majority of the electors, voting at such election shall vote in favor of such proposition. 4. To establish, build and repair bridges ; to establish, lay out, alter, keep open, open, improve and repair streets, side- walks, alleys, squares, and other public highways and places within the city, and to drain, sprinkle, oil, and light the same ; to remove all obstructions therefrom ; to establish the grades thereof; to grade, pave, macadamize, gravel and curb the same in whole or in part, and to construct gutters, culverts, sidewalks, and crosswalks therein, or upon any part thereof; to cause to be planted, set out. and cultivated, shade trees therein; ami generally to manage and control all such highways and places. 5. To establish, construct and maintain drains aud sewers, ami to provide by ordinance for a general system of sewers, and the expense of building and maintaining the same. il. To provide fire engines and all other necessary or proper apparatus for the prevention and extinguishment of fires. 7. To impose and collect from every male inhabitant between the ages of twenty-one and sixty years, an annual street poll tax, not exceeding two dollars, and no other road poll tax shall be collected within the limits of such city; provided, that any member of a volunteer tire company in such city shall be exempt from such tax. 8. To impose and collect an annual license, nut exceeding two dollars on every dog owned or harbored within tin 1 limits of the city. f>40 STATUTES AT LARGE. 9. To levy and collect annually a property tax, which shall be apportioned as follows : For the general fund, not exceeding sixty cents on each one hundred dollars ; for street fund, not exceeding thirty cents on each one hundred dollars ; for school fund, not exceeding twenty-five cents on each one hundred dollars : for sewer fund, not exceeding ten cents on each one hundred dollars. The levy for all purposes for any one year for all purposes to which such funds are applicable shall not exceed one dollar on each one hundred dollars of the assessed value of all real and personal property within such city. 10. To license, for purposes of regulation and revenue, all and every kind of business, including the sale of intoxicating liquors, authorized by law and transacted or carried on in such city, and all shows, exhibitions, and lawful games carried on therein ; to fix the rates of licenses upon the same, and to pro- vide for the collection of the same by suit or otherwise. 11. To improve the rivers and streams flowing through such city, or adjoining the same ; to widen, straighten, and deepen the channels thereof, and to remove obstructions therefrom ; to improve the water front of the city, and to construct and main- tain embankments and other works to protect such city from overflow. 12. To erect and maintain buildings for municipal purposes. 13. To permit, under such restrictions as they may deem proper, the laying of railroad tracks and the running of cars drawn by horses, steam, electricity, or other power thereon, and the laying of gas or water pipes in the public streets, and to construct and maintain, and to permit the construction and maintenance of telephone, telegraph and electric light lines therein. 14. In its discretion to divide the city, by ordinance, into a convenient number of wards, not exceeding • five, to fix the boundaries thereof, and to change the same from time to time; provided, that no change in (he boundaries of any ward shall be made within sixty days next before the date of said general municipal election, nor within twenty months after the same shall have been established or altered. Whenever such city shall be divided into wards, the board of trustees shall designate by ordinance the number of trustees to be elected from each ward, apportioning the same in proportion to the population of such ward; and thereafter the trustees so designated shall be elected by the qualified electors resident in such ward, or MUNICIPAL CORPORATIONS. 041 by the general vote of the whole city, as may be designated in such ordinance. 15. To appoint and remove such policemen and such other subordinate officers as they may deem proper, and to fix their duties and compensation. 16. To impose fines, penalties, and forfeitures for any and all violations of ordinances, and for any breach or violation of any ordinance to fix the penalty by fine or imprisonment, or both, but no such fine shall exceed three hundred dollars, nor the term of such imprisonment exceed three months. 17. To cause all persons imprisoned for violation of any ordinance to labor on the streets, or other property or works within the city. 18. To establish fire limits, and the same to alter at pleasure ; to regulate or prevent the erection of wooden or other buildings or structures of combustible materials ; to regulate the con- struction of all buildings, shades, awnings, signs, or any structure of a dangerous or unsafe character ; to provide, by regulation, for the prevention and summary removal of all filth and garbage in the streets, sloughs, alleys, backyards or public grounds of such city, or elsewhere therein ; to regulate or pro- hibit the storage of gunpowder and combustible or explosive materials of every kind and nature within the city limits, and to prescribe the limits in which the same may be kept or stored. 19. To do and perform any and all other acts and things necessary and proper to carry out the provisions of this chapter, and to exact and enforce within the limits of such city all other local, police, sanitary, and other regulations as do not conflict with general laws. [Sec. 704 amended April 16, 1909; stals. 1909. p. 9.'>7: in effect immediately.! •-}; % % % ;'fi # # CHAPTER VII. MUNICIPAL CORPORATIONS OF THE SIXTH CLASS. [Cities having a population of not exceeding 3,000 inhabitants.] ;J; ;}; ;I* ;J; ;1; jl* ;!; Powers of board of trustees. [Subdivisions I! and 13 provide for granting contracts and franchises. ] Sec. 862. The board of trustees of said city shall have power : G42 STATUTES AT LARGE. 1. To pass ordinances not in conflict with the constitution and laws of this state or of the United States. 2. To purchase, lease, or receive such real estate situated inside or outside of the city limits and personal property as may be necessary or proper for municipal purposes, and to control, dispose of, and convey the same for the benefit of the city or town ; provided, they shall not have power to sell or convey any portion of any water front. 3. To contract for supplying the city or town with water for municipal purposes, or to acquire, construct, repair, and manage pumps, aqueducts, reservoirs, or other works necessary or proper for supplying water for the use of such city or the inhabitants, or for irrigating purposes therein. 4. To establish, build and repair bridges ; to establish, lay out, alter, keep open, improve, and repair streets, sidewalks, alleys, and other public highways, squares and parks, and places within the city or town, and to drain, sprinkle, oil, and light the same; to remove all obstructions therefrom; to estab- lish the grades thereof ; to grade, pave, macadamize, gravel, and curb the same, in whole or in part, and to construct gutters, culverts, sidewalks, and crosswalks therein, or on any part thereof ; to cause to be planted, set out, and cultivated, shade trees therein ; and generally to manage and control all such highways and places ; and in the exercise of the powers herein granted to expend, in their discretion, the ordinary annual income and revenue of the municipality in payment of the costs and expenses of the whole or any part of such work or improvement. •">. To construct, establish, and maintain drains and sewers. (!. To provide tire engines and all other necessary and proper apparatus for the prevention and extinguishment of fires. 7. To impose on and collect from every male inhabitant between the ages of twenty-one and sixty years, an annual street poll tax, not exceeding two dollars ; and no other road poll tax shall be collected within the limits of the city. 8. To impose and collect an annual license not exceeding two dollars on every male dog, and four dollars on every female • log owned or harbored within the limits of the city. !). To levy and collect annually a property tax, which shall not exceed one dollar on each one hundred dollars. 10. To license, for the purpose of revenue and regulation, all and every kind of business authorized by law and transacted MUNICIPAL CORPORATIONS. G43 and carried on in such city or town, and all shows, exhibitions, and lawful games carried on therein ; to fix the rates of license tax upon the same, and to provide for the collection of the same by suit or otherwise. 11. To improve the rivers and streams flowing through such city or adjoining the same; to widen, straighten, and deepen llie channels thereof, and remove obstructions therefrom; to improve the water front of the city; to construct and maintain embankments and other works, to protect such city from over- flow ; and to acquire, own, construct, maintain, and operate on any lands bordering on any navigable bay, lake, inlet, river, creek, slough, or arm of the sea within the corporate limits of such city or contiguous thereto, wharves, chutes, piers, break- waters, bath-houses, and life-saving stations. 12. To erect and maintain buildings for municipal purposes, and to acquire and maintain cemeteries, situated inside or out- side of said city. 13. To acquire, own, construct, maintain, and operate street railways, telephone and telegraph lines, gas and other works for light, power, and heat ; public libraries, museums, gymna- siums, parks, and baths, and to permit under such restrictions as they may deem proper, the laying of railroad tracks and the running of cars drawn by horses, steam, or other power thereon, and the laying of gas and water pipes in the public streets, and to permit the construction and maintenance of telegraph and telephone lines therein. 14. To impose tines, penalties, and forfeitures for any and all violations of ordinances; and for any breach or violation of any ordinance ; to fix the penalty by fine or imprisonment, or both ; but no such fine shall exceed three bundled dollars, nor the term of imprisonment exceed three months. 15. To cause all persons imprisoned for violation of any ordinance to labor on the streets, or other public property, or works within the city. 1<(. To establish and maintain fire limits, and regulate build- ing and construction and removal of buildings within the municipality. 17. To issue subpoenas for the attendance of witnesses, or the production of books or other documents, for the purpose of producing evidence or testimony in any action or proceeding pending before the board of trustees, which subpoenas must be signed by the president of the board of trustees and attested <;H statutes at large. by the city clerk and may be served in the same manner as subpoenas are served in civil actions. Whenever any person duly subpoenaed to appear and give evidence, or to produce any books or any documents as herein provided, shall neglect or refuse to appear, or to produce such books or documents, as required by such subpoena, or shall refuse to testify before such board, or to answer any questions which a majority therein' shall decide to be proper and pertinent, it shall be the duty of the president of the board to report the fact to the judge of the superior court of the county, who shall thereupon issue an attachment in the form usual in the court of which he shall be judge, directed to the sheriff of the county where such witness was required to appear and testify, commanding the said sheriff to attach such person, and forthwith bring him before the judge by whose order such attachment was issued. On the return of the attachment and the production of the body of the defendant, the said judge shall have jurisdiction of the matter, and the person charged may purge himself of the contempt in the same way. and the same proceedings shall be had, and the same penalties may be imposed, and the same punishment inflicted as in the case of a witness subpoenaed to appear and give evidence on the trial of a civil cause before a superior court. 18. To expend such sum as the board of trustees shall deem proper, not to exceed five per cent of the property tax levy in any one fiscal year, for music and promotion. 19. To do and perform any and all other acts and things necessary or proper to carry out the provisions of this act. I Sec. 862 amended March 19, 1909; stats. 1909, p. 420; in effect immediately.] , ******* (For sale of franchises by municipalities, see Franchises, page 573, ante, for act of March 2, 1905, stats. 1905, p. 777, as amended March 3, 1909, stats. 1909, p. 125.) PERSONAL PROPERTY BROKERS. See Brokers, PUBLIC WELFARE. See Health and Sanitation; see, also, Hospitals. RAILROADS. 645 RAILROADS. See, also. Animals, for certain duties of carriers. An act to enable railroad companies to complete their railroads. Approved April 1, 1878; stats. 1877-8, p. 944. Affects only companies organized prior to the passage of the act. An act to create the office of commissioner of transportation, and to define its powers and duties; to fix the maximum charges for transporting passengers and freights on certain railroads; and to prevent extortion and unjust discrimination thereon. Approved April 1, 1878; stats. 1877-8, p. 969. The greater part of this statute said by code commissioners to have been repealed by the constitution of 1879, but certain of its penal pro- visions perhaps remained in force. See Dyer vs. Placer County, 90 Cal. 276, and Giesecke vs. San Joaquin County, 109 Cal. 489. Section 2 of chapter 3 of the act superseded by Pen. C. § 369b, as adopted in 1905 ; SS 4. 5, and 6 of chapter 3 of the act are superseded by Pen. C. §* 369rf, 369c, and 369f, respectively, as adopted in 1905 ; §§ 7 and 8 of chapter 3 of the act are superseded by act of 1901. p. 666, providing for policemen on railroads or steamboats. Act of April 1, 1878, specifically repealed in its entirety by railroad act of March 19, 1909 : stats. 1909, p. 499. An act permitting and authorizing railway and other corpora- tions, organized under the laws of this state, or of any state or territory of the United States of America, or any act of congress of the United States of America, to do business in this state on equal terms. Approved April 3, 1S80 ; stats. 1880, p. 21. (Authorizing rail- ways to make leases and other contracts.) Act superseded by Civ. C. §§ -107 and M:',a, as adopted in 1905. An act to organize and define the powers of the board of railroad commissioners. Approved April 15, 1880; stats. L880, p. 15. Repealed .March 19, 1909 ; stats. 1909, p. 499. 646 STATUTES AT LARGE. An act to compel railroad corporations, or individuals owning railroads, to operate their roads. Approved April 15, 1SS0 ; stats. 1880, p. 43. Ed. Note. — Act partially superseded by Civil Code section 468. as amended in 1905. (See page 12G, ante.) The -people of the State of California, represented in senate and assembly, do enact as follows: Operation of railroads. Section 1. From and after the completion of any railroad, or the completion of such portion (hereof capable of being oper- ated, it shall be the duty of the corporation, or individual owning the same, to operate it; and upon the failure of said corporation or individual so owning said road to keep the same, or any part thereof, in full operation for the period of six months, its or his right to operate the same in whole or in part, as the case may be. shall be forfeited: and the lands occupied for the purposes of its or his road, so far as the same shall not be operated, shall revert lo the original owners, or their successors in interest. A railroad shall be deemed to be in full operation when one passenger train. or one mixed train, is run over it once each day in each direction, and a sufficient number of freight (rains In accommodate the i \-.\ the on said road. When act does not apply. Sec. 2. This act shall not be construed to apply to :i case where the operation of the road is prevented by the act of God, nor to a ease where the operation of said road, together with its branch or trunk lines, does not yield income sufficient to defray tli'' expenses of maintaining and operating the same in connec- tion with its said branch or trunk lines. Power of railroad commissioners. Sec. 3. The railroad commissioners of the Stale of California shall have the power to examine and determine (lie question whether said road, together with its said branch and trunk lines, does or does not yield income sufficient to operate the same. Time act shall take effect. Rec.'4. This act shall take effcel immediately. ( Madera />'.'/. Co. vs. Raymond Granite Co., •* CaL App. 683.) RAILROADS. 647 An act to provide for the management and operation of railroads above certain elevations. Approved February 9, 1897; stats. 1897, p. 5. Ed. Note. — Act partially superseded by Civil Code section 4 6S, as amended in 1905. (See page 126, ante.) The people of the State of California, represented in senate and assembly, do enact as folloios: Time during which operation is required. Section 1. All railroads operated in this state whose lines of road are wholly constructed at an elevation of five thousand feet, or more, above the level of the sea, shall only be required to maintain and operate their roads, or to run passenger or freight cars thereon, between the fifteenth day of May, and the fifteenth day of October in each year. An act to provide for the appointment of policemen, with the powers of peace officers, to serve upon the premises, cars or boats of railroad and steamship companies. Approved March 23, 19(U ; stats. 1901, p. 666. The people nf the State of California, represented in senate and assembly, do enaet as follotos: Governor to appoint policemen on application of railroad or steamboat companies. Section 1. The governor of the State of California is hereby authorized and empowered, upon the application of any railroad or steamboat company, to appoint and commission during his pleasure one or more persons designated by such company and in serve a1 the expense of such company, as policeman or police- men, with tlic powers of peace officers, and who, after being duly sworn, may act as such policeman or policemen upon the premises, cars or boats of such company. The company desig- nating such person or persons shall In- responsible civilly for any abuse of his or their authority. Badge to be worn by officers. Sic. 2. Every such policeman, shall, when ou duty, wear in plain view a shield bearing the words "'railroad police," or "steamboat police," as the case may be, and the name of the company for which he is commissioned, Time act shall take effect. Sec. 3. This aci shall take affect immediately. (US STATUTES AT LARGE. An act providing for the organization of the railroad commission of the State of California, defining its powers and duties and the powers and duties of transportation companies, their officers and employees, and defining offenses by transporta- tion companies, their officers, employees and other persons, and providing penalties therefor; and repealing an act entitled "An act to create the office of commissioner of transportation, and to define its powers and duties; to fix the maximum charges for transporting passengers and freight on certain railroads, and to prevent extortion and unjust discrimination therein," approved April 1, 1878, and also repealing an act entitled "An act to organize and define the powers of the board of railroad commissioners," approved April 15, 1880. Approved March 19, 1909 ; stats. 1909, p. 499. Tlir people of the State of California, represented in senate and assembly, do enact as follows: Railroad commission, of whom composed. Section 1. The three persons elected railroad comuiissioiuis pursuant to the provisions of section 22 of article XII of the constitution of the state, constitute and shall be known and designated as the railroad commission of the State of California. They shall have power to elect one of their number president of said board, to appoint a secretary, to appoint an assistant secre- tary, and to employ a stenographer. Salaries — Expenses. Sec. 2. The salary of each commissioner shall be six thou- sand dollars per annum; the salary of the secretary shall be three thousand dollars per annum; the salary of the assistant secretary shall be eighteen hundred dollars per annum; the salary of the stenographer shall be nine hundred dollars per annum; such salaries to be paid by the State of California in the same manner as the salaries of state officers are paid. Said commissioners, and the persons in their official employment when traveling in the performance of their official duties, shall have their traveling expenses other than transportation paid, the amounts to be passed on by the state board of examiners, and paid by the state. Said board of railroad commissioners shall be allowed one hundred dollars per month for office rent, and fifty dollars per month for fuel, lights, postage, expressage, subscrip- tion to publications upon (he subject of transportation, and RAILROADS. (549 other incidental expenses, to be paid by the state; provided, that all moneys remaining unexpended at the expiration of each fiscal year shall be returned to the state treasury. The state shall furnish said board with all necessary stationery and printing, upon requisitions signed by the president of said board. Passes. Sec. 3. Said commissioners and the persons in their official employment shall, when in the performance of their official duties, have the right to pass free of charge on all railroads, steamers, ships, vessels and boats, and on all vehicles employed in or by any transportation company, subject to the provisions of this act, engaged in the transportation of freight and pas- sengers within this state. Duty of attorney general. Sec. 4. It shall be the duty of the attorney general to insti- tute and prosecute any and all such suits and proceedings as shall be requested of him by said board, and to appear therein, and in all suits and proceedings to which the board is a party, for said board, and said suits and proceedings shall have prece- dence over all other business except criminal business; provided, that said board shall have the power to employ additional coun- sel to assist the attorney general, or otherwise, whenever they may deem it expedient. The fees and expenses of said additional counsel shall be determined by the state board of examiners and paid by the state. Office. Sec. 5. The office of said board shall be in the city and county of San Francisco. Said office shall always be open (legal holidays and non-judicial days excepted). The board shall hold its sessions at least once a month in said city and county of San Francisco, aud at such other times and such other places within this state as may be expedient. The sessions of said board shall be public. Salaries, how paid. Sec. 6. The salaries of the commissioners, secretary, assist- ant secretary and other officers and attaches in any manner employed by the board of commissioners shall be paid out of any money in the general fund appropriated therefor. 28— CL I ;.",<) STATUTES AT LARGE. Seal. Sec. 7. The board shall have a seal, to be devised by its members, or a majority thereof. Such seal shall have the fol- lowing inscription surrounding it : "Railroad Commission, State of California." The seal shall be affixed only to, first, writs ; second, authentications of a copy of a record or other proceeding, or copy of a document on file in the office of said commission. Process. Sec 8. The process issued by said hoard shall extend to all parts of the state. The hoard shall have power to issue writs of summons and of subpoena in a like manner as courts of record. The summons shall direct the defendant to appear and answer within fifteen days from (he day of service. The necessary process issued by the hoard may be served in any county of this state by any person authorized to serve process of courts of record. Duty of secretary. Sec. 9. The secretary of said hoard shall issue all process and notices required to be issued, and do and perform such other duties as the hoard may prescribe. Complaints. Sec. 10. All complaints before said hoard shall be in writing and under oath. All decisions of said board shall be. given in writing, and the grounds and the decisions shall he stated. A record of the proceedings of said hoard shall be kept, and the evidence of persons appearing before said hoard shall he pre- served. Certain terms defined. Sec. 11. The term "transportation company," as used in i his act, shall include railroads operated for commercial pur- poses, express companies, sleeping car companies, and compa- nies operating vessels engaged in carrying freight or passengers on I he waters of this state. The term "railroad" and "rail- road company," as used in this act, shall include all bridges and ferries used or operated in connection with any railroad, and all the road in use by any railroad company operating a railroad, whether owned or operated under a contract, agree- ment, or lease, and all switches, spurs, tracks and terminal facilities, used in the transportation of persons or property, and all freight depots, yards or grounds, used in the transporta- RAILROADS. 651 lie prosecuted, punished <>r subjected to any penalty or forfeiture for or on account of any transaction, mat- ter or thing concerning which he may testify or produca evi- dence, documentary or otherwise, before said commission in obedience to said subpoena : provided, however, that no person so testifying shall be exempt from prosecution and punishment for perjury committed in so testifying. The sheriff or con- stable executing any process issued under the provisions of this act shall receive such compensation therefor as may be allowed by the commission, not to exceed the fees as the same shall nqw or hereafter be prescribed by law for similar services. Rates of charges, establishment of. Sec. 16. The said hoard of railroad commissioners shall have the power, and it shall be their duly, to establish rates of charges for transportation by transportation companies subject to the provisions of this act, and the order for the said rates so made shall take effect on the twentieth day after service of the same upon the transportation company affected thereby, and in case such company be a corporation such service shall be sufficient if made upon the president, vice-president, secretary or managing agent thereof, and in case such company be a partnership, upon any member of the firm : to examine the books, records and papers of all such transportation companies, and for this purpose they shall have power to issue subpoenas and all other necessary processes; to hear and determine com- plaints against said transportation companies ; to send for per- sons and papers; to administer oaths, take testimony and punish for contempt of their orders and processes in the same manner and to the same extent as courts of record: and to enforce their decisions, and correct abuses through the medium of the courts. Through routes and joint rates. Sec. IT. The commission may. after hearing on a complain! and upon such reasonable notice as it may tix to the company or companies complained of, establish through routes and joint rates as the maximum to be charged, and prescribe the division of such rates as hereinafter provided, and the terms and con- ditions under which such through routes shall be operated when that may be necessary to give effect to any provision of this act and the company or companies complained of have refused r>.")4 STATUTES AT LARGE. or neglected to establish voluntarily such through routes and joint rail's: provided, no reasonable or satisfactory through route exists, and this provision shall apply when one of the connecting companies is a water line. Should the companies fail to agree among themselves upon the apportionment or divi- sion of such joint rates, the commission may. after hearing, upon such reasonable notice to said companies as it may fix, make a supplemental order prescribing the just and reasonable propor- tion of such joint rate to be received by each company party thereto. Schedules to be filed and posted — Changes in rates — Joint tariffs — Form of schedules. Sec. 18. Every transportation company, subject to the pro- visions of this act. shall file with the commission, within a time fixed by the commission, and print and keep open to public inspection, schedules showing all the rates, fares and charges for transportation between different points on its own route and between points on its own route and points on the route of any other transportation company subject to the provisions of this act, when a through route and joint rate have been established. These schedules shall plainly state the places between which property and passengers will be carried, and shall also state separately all terminal charges, storage charges, icing charges, and all other charges which the commission may require, all privileges or facilities granted or allowed, and any rules or regulations which in anywise change, affect, or deter- mine any part or the aggregate of such aforesaid rates, fares and charges, or the value of the service rendered to the pas- senger, shipper or consignee. Such schedules shall be plainly printed in large type, and copies for the use of the public shall be kept on file in every depot, station and office of such trans- portation companies where passengers or freight, respectively, are received for transportation, in such form that they shall be accessible to the public and can be conveniently inspected. The provisions of this section shall apply to all traffic, transportation and facilities defined in this act. No change shall be made in the rates, fares and charges, or joint rates, fares and charges which have been made, filed and published by any transportation company subject to the provi- sions of this act. except after thirty days' notice to the com- mission, and lo the public, published us aforesaid, which shall RAILROADS. G55 plainly state the changes proposed to be made in the schedule (hen in force and the time when the changed rates, fare or charges will go into effect; and the proposed changes shall be shown by printing new schedules, or shall be plainly indicated upon the schedules in force at the time, and kept open to public inspection ; provided, that the commission may, in its discretion and for good cause shown, allow changes upon less than the notice herein specified, or modify the requirements of this sec- lion in respect to publishing, posting and filing of tariffs, either iu particular instances or by a general order applicable to special or peculiar circumstances or conditions. The names of the several transportation companies which are parties to any joint tariff shall be specified therein, and each of the parties thereto, other than the one filing the same. shall file with the commission such evidence of concurrence i herein or acceptance thereof as may be required or approved by the commission, and where such evidence of concurrence or acceptance is filed, it shall not be necessary for the transporta- tion companies filing the same to also file copies of the ta riffs in which they are named as parties. The commission may determine and prescribe the form in which the schedules required by this section to be kept open to public inspection shall be prepared and arranged, and may change the form from time to time as shall be found expedient. No transportation company subject to the provisions of this act, unless otherwise provided by this act, shall engage or par- ticipate in the transportation of passengers or property, as defined by this act. unless the rates, fares and charges upon which the same are transported by said transportation company have been Bled and published in accordance with the provisions of this act; nor shall any transportation company charge or demand or collect or receive a greater or less compensation for such transportation of passengers or property, or for any service in connection therewith, between the points named in such tariffs, than the rates, fares and charges which are speci- fied in the tariffs filed and in effect at the time. Change of rates, notice to company. Sec. 19. The said commission, before establishing, changing, amending, or abolishing any rule, regulation, or rate of charge for transportation, shall give the transportation company to be affected thereby ten days' notice of the time and place for 656 STATUTES AT LARGE. the taking' of action by the commission in respect to the same, and said company shall be entitled to be heard at such time and place and to process for the attendance of its witnesses. to the end that such action may be taken by the commission as shall he reasonable and just in the premises. Petition for investigation. Sec. '_'<>. Any person, firm, corporation, or association, or any mercantile, agricultural or manufacturing society, or any body politic, or municipal organization, complaining of any-. thing done or omitted to be done by any transportation com- pany subject to the provisions of this act. in contravention of the provisions thereof or of the constitution of this state may apply to said commission by petition, which shall set forth the facts; whereupon, if there shall appear to the commission to be any reasonable grounds for investigating such complaint, it shall cause a copy of the same to be served on the transportation company concerned, and call upon said company to answer the same at a time and place specified in said call by said commis- sion. The commission shall investigate the matters complained of under such reasonable rules and modes of procedure as il shall deem proper. No complaint shall at any time be dismissed because of the absence of direct damage to the plaintiff. Reports of investigations — Award of damages to complainant — When complaints must be filed — Joinder of parties — Orders, how served. Sec. 21. Whenever an investigation shall be made by said commission, it shall be its duty to make a report in writing in respect thereto, which shall state the conclusions of the com- mission, together with its decision, order or requirement in the premises; and in case damages are awarded, such report shall include the findings of fact in which the award is made. All reports of investigations made by the commission shall he entered of record, and a copy thereof shall lie furnished to the party who may have complained, and to any transportation company that may have been complained of. The commission may provide for the publication of its reports and decisions in such form and manner as may he best adapted for public use and information, and such authorized publications shall he competent evidence of the reports and decisions of the com- mission (herein contained in all courts of this slate, without RAILROADS. (557 any further proof or authentication thereof. The expense of such publication shall be ordered paid by the controller on the certificate of the chairman of said commission thai the same has been incurred, and shall be payable out of any moneys in the general fund not otherwise appropriated. If, in any such investigation, the commission shall determine thai any parly complainant is entitled to an award of damages under the provisions of this act, for a violation thereof, l he commission shall make an order directing the transportation company to pay to the complainant the sum to which he is entitled, on or before a day named. If such transportation com- pany does not comply with an order for the payment of money within the time limited in such order, the complainant. or any person for whose benefil such order was made, may tile, in the superior court of the State of California, for the county in which complainant resides, or in which is located the prin- cipal operating office of the transportation company in said state, a petition setting forth, briefly, the causes for which he claims damages, and the order of the commission in the premises. Such suit shall proceed in all respects like other civil suits for damages in said superior court, except that on the trial of said suit the findings and order of the commission shall he prima facie evidence of the facts therein stated, and either party thereto shall have the right of appeal to the supreme court as in other cases appealable thereto. All complaints for the recovery of damages shall bo filed with the commission within one year from the time the cause of action accrues and not after, and a petition for the enforce- ment of an order of the commission for the payment of money shall be tiled in the superior court within six months from the date of the order and not after. In such suits all parties in whose favor the commission may have made an award for damages by a single order may be joined as plaintiffs, and all of the transportation companies, parties to such order, may lie joined as defendants, and the venue of all such suits shall be in the county where any of such transportation companies shall have ils principal operating office in the State of < 'alifornia. In the case of such joint suit, the recovery, if any, may be by judgmeni in favor of any one of such plaintiffs, against the defendant found to be liable to such plaintiff. 058 STATUTES AT LARGE. Every order of the commission shall be forthwith served by mailing the same to any one of the principal officers, or agents, or members of the transportation company at its principal operating office in this state, and the registry mail receipt shall be prima facie evidence of the receipt of such order by the transportation company in duo course of mail. The commission shall be authorized to suspend or modify its orders upon such notice and in such manner as .it shall deem proper. Authority to prescribe just rates — When orders become effect- ive — Venue — Appeals. Sec. 22. The commission is authorized and it shall be its duty, whenever, after full bearing upon a complaint made as provided in section 20 of this act, or upon complaint of any transportation company subject lo the provisions of this act, it; shall be of the opinion that any of- the rates or charges demanded, charged or collected by any transportation company or companies subject to the provisions of this act, for transpor- tation services, or that any regulations or practices of said com- panies affecting such rates or charges, whether in respect to the complainants mentioned in said section 20, or in respect to any such transportation company itself, are unjust or unreasonable, or unjustly discriminatory, or unduly preferential or preju- dicial, or otherwise in violation of, or contrary to, any of the provisions of this act, to determine and prescribe what will be the just and reasonable rate or rates, charge or charges, to be thereafter observed in such case as the maximum to be charged; and what regulation or practice in respect to such transporta- tion is just, fair and reasonable to be thereafter followed ; ami to make an order that the transportation company shall cease and desist from such violation of the act, to the extent to which the commission find the same to exist, and shall not thereafter publish, demand or collect any rate or charge for such trans- portation service in excess of the maximum rate or charge so prescribed, and shall conform to the regulation or practice so prescribed, and to make, in proper cases, an order in respect to such rate or charges, or such regulations or practices, where the transportation company is complainant, and shall prescribe the just and reasonable rate or rates, charge or charges, to be there- after observed by such transportation company as the maxi- mum to be charged, and what regulation or practice in respect RAILROADS. t'.fi'.l to such transportation services is just, fair and reasonable to be thereafter followed by the said transportation company. All orders of the commission, except orders for the payment of money, shall take effect on the twentieth day after service, as provided in section 16 hereof, and shall continue in force for such time not exceeding one year, as shall be prescribed in the order of the commission, unless the same shall he suspended or modified or set aside by the commission, or he suspended or set aside by a court of competent jurisdiction. The superior court of the State of California shall be such court of competent jurisdiction, and the venue of suits brought in any superior court of said state against the commission, to enjoin, set aside, annul or suspend any order or requirement of the commission, shall be in the county where the transporta- tion company against which such order or requirement may have been made has its principal operating office in the State of California, and may be brought at any time after such order is promulgated. If said order or requirement has been made against two or more transportation companies, such venue shall be in the county where any one of said transportation com- panies has its principal operating office in the State of Cali- fornia, and jurisdiction to hear and determine such suits is hereby vested in said superior court. An appeal to the supreme court of the State of California may be taken from any inter- locutory order or decree granting or continuing an injunction iu auy suit, but such appeal must be taken within thirty days from the entry of such order or decree, and it shall take prece- dence in the appellate court over all other causes except causes of like character and criminal causes. Failure to obey order of commission. Sec. U.">. If any transportation company fails or neglects to obey any order of the commission, other than for the payment of money, while the same is in effect, any party injured thereby, or the commission in its own name, may apply to the superior court of the State of California for the county where such transportation company has its principal operating office in the State of California for an enforcement of such order. Said application shall be by petition, which shall state the substance or the order and the respect in which the transportation com- pany has failed of obedience, and shall be served upon the com- pany in such manner as the court shall direct, and the court f>(JO STATUTES AT LARGE. shall prosecute such inquiries and malce such investigations through sueli means as ii shall deem needful in the ascertain- ment of the facts at issue or which may arise upon the hearing of such petition. If, upon such hearing as the court may deter- mine to be necessary, it appears that the order was regularly made and duly served, and that the transportation company is in disobedience of the same, the court shall enforce obedience to such order by a writ of injunction, or other proper process, mandatory or otherwise, to restrain such company, its officers, agents or representatives from further disobedience of such order, or to enjoin upon it. or them, obedience to the same; and in the enforcement of such process the court shall have those powers ordinarily exercised by it in compelling obedience to its writs of injunction and mandamus. From any action upon such petition an appeal shall lie by either party to the supreme court of the State of California, and in such court the cause shall have priority in hearing and determination over all other causes except criminal causes, but such appeal shall not vacate or suspend the order appealed from. Application for rehearing — Proceedings on rehearing. Sfc. -4. After a decision, or order or requiremenl has been made by the commission in any proceeding, any party thereto may at any time make application for rehearing of the same. or any matter determined therein, and the commission may, in its discretion, grant such a rehearing if sufficient reason there- for be made to appear. Applications for rehearing shall be governed by such reasonable rules as the commission may establish. Xo such application shall excuse any transportation company subject to the provisions of this act from complying with or from obeying any decision, order, or requirement of the commission, or operate in any manner to stay or postpone the enforcement thereof, without the special order of the com- mission. In case a rehearing is granted, the proceedings thereon shall conform as nearly as may be to the proceedings in an original hearing, except as the commission may otherwise direct; and if, in its judgment, after such rehearing and the consideration of all facts including those arising since the former hearing, il shall appear thai the original decision, order or requirement is in any respect unjust or unwarranted, the commission may reverse, change or modify the same accordingly. Any decision. RAILROADS. •'»<'»! order or requirement made after such rehearing, reversing, changing or difying the original determination, shall be sub- jeel to the same provisions as an original order. Commission may investigate on own motion. Sec. 25. Whenever the commission shall believe thai any rate or charge for transportation is unjust or unreasonable, or unjustly discriminatory or unduly preferential, or that any service in the matter of such transportation is inadequate or that anything has boon done or omitted to be done by any com- mon carrier subject to the provisions of this act in contraven- tion to the provisions thereof or of the constitution and that investigation relating thereto should be made, it may. upon its own motion, investigate the same. Before making such investi- gation, it shall furnish the transportation company concerned a statement in writing setting forth the rate or charge or service to be investigated. Thereafter, on ten days" notice to such transportation company of the time and place of said investiga- tion, the commission may proceed to investigate such rale or charge or service in the same manner and make like orders in reaped thereto as if such investigation had been made on com- plaint. Who may intervene. Sec. 26. Any parly authorized by this act to be complain- ant in any investigation before the commission, or subject to be defendant therein, may. in the discretion of the commission, be permitted to intervene in any such investigation where said party has an interest in the matter under investigation in the success of either complainant or defendant, or an interest against both. In any such investigation before the commission. any party therein, or the commission, may in the investigation cause the deposition of witnesses residing within or without the state to be taken in the manner prescribed by law for like depositions in civil actions in the superior courts of this stale. Rules of procedure. Sec. '_'7. 'The commission shall have the power to adopt rules to govern its proceedings, and to regulate the mode and manner of all investigations of transportation companies and other parlies before it, in the establishment of rates, rules, regu- lations, or in the making of orders and in the doing of other acts required of ii under this act. ti('iL> STATUTES AT LARGE. Oaths, who may administer. Sec. 28. The chairman and each of the commissioners, for ilic purposes of this act, shall have power to administer all oaths, certify to all official acts, and to compel the attendance of witnesses and the production of hooks, papers and testimony. Burden of proof. Sec. 21>. In all investigations under this act the burden of proof shall he upon the complainant. Evidence. Sec. 30. All evidence taken before the commission in the investigation of any breach of this act, when reduced to writing, may he used by any party thereto as evidence upon the trial of any cause or proceeding growing out of the. same transaction against such transportation company, involving the same sub- ject-matter, and between the same parties, to the same extent as a deposition in a civil case. The commissioners are authorized to employ a phonographic reporter for the purpose of taking and transcribing such testimony whenever such commission shall deem it necessary, or whenever they shall lie requested to do so by any party to the proceedings, and a certified copy under the hand and seal of said commission shall he sufficient proof of such testimony in any cause or proceeding in which the same shall be admissible as herein provided. Charges must be reasonable- Sec. 31. All charges made for any service rendered or to he rendered in the transportation of passengers or property, or in connection therewith, by transportation companies subject lo the provisions of this act. shall he just and reasonable, and every unjust and unreasonable charge for such service or any part thereof is prohibited and declared to be unlawful. Accidents, investigation of. Sec. 31a. The railroad commission shall investigate the cause of all accidents on any railroad within the state which result in loss of life or injury to persons or property, and which in its judgment shall require investigation. Every common car- rier and railroad corporation is hereby required to give imme- diale notice lo the commission of every accident happening upon any line of railroad owned, operated, controlled or leased by it in such manner as the commission may direct. Such notice RAILROADS. <'>•>•"> shall not be admitted as evidence or used for any purpose against such common carrier or railroad corporation giving such notice in any suit or action for damages growing out of any matter mentioned in said notice. Switch connections. Sec. ?Ab. A railroad corporation, upon the application of any shipper tendering traffic for transportation, shall construct, maintain and operate upon reasonable terms a switch connec- tion or connections with a lateral line of railroad or private sidetrack owned, operated or controlled by such shipper, and shall, upon the application of any shipper, provide upon its own property a sidetrack and switch connection with its line of rail- road, whenever such sidetrack and switch connection is reason- ably practicable, can be put in with safety, and the business therefor is sufficient to justify the same. If any railroad corporation shall fail to install or operate any such switch connection with a lateral line of railroad or any such sidetrack and switch connection as aforesaid, after written application therefor has been made to it, any corporation or person interested may present the facts to the railroad commis- sion by written petition, and the commission shall investigate the matter stated in such petition, and give such hearing thereon as it may deem necessary or proper. If the commis- sion be of opinion that it is safe and practicable to have a con- nection, substantially as prayed for, established or maintained, and that the business to be done thereon justifies the construc- tion and maintenance thereof, it shall make an order directing the construction and establishment thereof, specifying the rea- sonable compensation to be paid for the construction, establish- ment, and maintenance thereof, and may in like manner upon the application of the railroad corporation order the discon- tinuance of such switch connection. Continuous carriage required. Sec. 31c. No common carrier shall enter into or become a party to any combination, contract, agreement or understand- ing, written or oral, express or implied, to prevent by any arrangement or by change of arrangement of time schedule, by carriage in different cars or by any other means or device whatsoever the carriage of freight and property from being- continuous from the place of shipment to the place of destina- GG4 STATUTES AT LAEGE. linn. \o breakage of hulk, stoppage or interruption of carriage made l>.v any common carrier shall prevenl the carriage of freight and property from being treated as one continuous carriage from the place of shipmenl to the place of destination. Nor shall any such breakage of bulk, stoppage or interruption of carriage be made or permitted by any common carrier except it be done in good faith for a necessary purpose without inten- tion to avoid or unnecessarily interrupt or delay the continuous carriage of such freight or property or to evade any of the pro- visions of law, of this act, or of any order of the railroad com- mission. Short haul charges. Sec. '.',\. If any transportation company subject hereto shall. directly or indirectly, by any special rate, rebate, drawback, or oilier practice, method or device, charge, demand, collect or receive from any person, company, lirm or corporation a greater or less compensation for any service rendered, or to be rendered by it in the transportation of passengers or freight, than it charges, demands, collects or receives from any other person. RAILROADS. 665 company, firm or corporation for doing a like and contempo- raneous service in the transportation of a like kind of traffic, under substantially similar circumstances and conditions, such transportation company shall be deemed guilty of unjust dis- crimination, which is hereby prohibited. Undue preference. Sec. ."U. It shall also be unjust discrimination for any such transportation company to make or give any undue or unreason- able preference or advantage to any particular person, company. firm, corporation, or locality, or to any particular description of traffic, in any respect whatsoever, or to subject any particular description of traffic, in any respect whatsoever, or to subject any particular person, company, firm, corporation or locality. or any particular description of traffic to any undue or unrea- sonable prejudice or disadvantage in any respect whatsoever. Penal clause. Sec. 34%. Any transportation company guilty of unjust discrimination, as defined in this act, shall be guilty of a mis- demeanor, and on conviction thereof shall be fined in a sum not less than five hundred dollars, and not more than five thousand dollars. Every officer and agent of any such company who shall violate, or who procures, aids or abets any violation by such company of any of the provisions of sections '.','.'> and o4 of this act shall be guilty of a misdemeanor. Interchange of traffic. Sec. 35. All transportation companies subject to the pro- visions of this act shall, according to their respective powers, afford all reasonable, proper and equal facilities for the inter- change of traffic between their respective lines, and for the receiving, forwarding, and delivery of passengers and property to and from their several lines and those connected therewith, ami shall not discriminate in their rates and charges between such connecting lines; but this shall not lie construed as requir- ing any such transportation company to give the use of its tracks or terminal facilities to another transportation company engaged in like business. False billing. Sec. .'>(». Any officer or agent of any transportation company subject to this act who by means of false hilling, false classifica- tion, false weight, or by any other device, shall willfully suffer 666 STATUTES AT LARGE. or permit any person or persons to obtain transportation for property at less than the published rates then in force, or who, by means of false billing, false classification, false weighing, or by any device whatever shall willfully charge any person, firm or corporation more for the transportation of property than the published rates, shall be guilty of a misdemeanor, and on con- viction thereof shall be fined in a sum of not less than five hun- dred dollars and not more than five thousand dollars. Company responsible for act of agent — Soliciting favors of com- pany by shipper. SEC. 37. The act. omission or failure of any officer, agent or other person acting for or employed by any transportation com- pany subject to the provisions of this act, or shipper, acting within the scope of his employment, shall, in every case, be also deemed to be the act, omission or failure of such transportation company or shipper, as well as that of the person. The willful failure upon the part of any transportation company subject to I lie provisions of this act to file and publish the tariff or rates and charges as required by this act, shall be a misdemeanor, and upon conviction thereof the transportation company offending shall be subject to a fine of not less than five hundred dollars and not more than five thousand dollars. It shall be unlawful for any person, persons or corporation willfully to offer, grant or give, or to solicit, accept or receive any advantage or discrimination in respect to the transportation of any property in the interstate commerce of this state, whereby any such property shall, by any device whatever, be transported at a less rate than that named in the tariffs pub- lished and filed by such transportation company as required by this act. or whereby any other advantage is given or discrimina- tion practiced. Every person or corporation who shall so offer, grant or give, or shall so solicit, accept or receive any such advantage or discrimination shall be deemed guilty of a misde- meanor, and on conviction thereof shall be punished by a fine of not less than live hundred dollars and not more than five thou- sand dollars: except that where the advantage given or discrimi- nation practiced shall be in the transportation at a less rate, as aforesaid, than the published tariff rate, the penalty on con- viction shall be a fine of not less than one thousand dollars and no! more than five thousand dollars. Every offense created by this acl shall be prosecuted in a court having jurisdiction of offenses within (he city, city and RAILROADS. 6G7 county, or county in which such offense was committed : and whenever the offense is begun in one jurisdiction and completed in another, it may be proceeded against in either. Liability for damages. ,. Sec. 38. In case any transportation company subject to Ibis act, or any person or corporation within the provisions hereof. shall do, cause to be done, or permit to be done, except unin- tentionally or innocently through a mistake of fact, any matter. act or thing in this act prohibited or declared to be unlawful, or shall similarly omit to do any act, matter or thing herein required by this act to be done, such transportation company, person, or corporation shall be liable to the penalties herein- before provided for. and shall, in addition, be liable to the person or persons, firm or corporation injured by such act or omission for the damages proximately resulting therefrom ; and in addi- tion to such damages, such transportation company, in all cases where the same shall be guilty of extortion or unjust discrimina- tion as defined in this art. shall pay to such person, linn or corporation so injured a penalty of not less than five hundred dollars and not more than five thousand dollars. Free passes. Sec. 39. No railroad or other transportation company shall grant free passes, or passes or tickets, at a discount, to any per- son holding any office of honor, trust, or profit in this state, and every transportation company issuing free passes or tickets at a discount in violation of the provisions of this section shall be deemed guilty of a misdemeanor, and for each offense shall be punished by a fine of not less than five hundred dollars nor more than five thousand dollars. Published rate to be deemed just. Sec. 10. In all actions between private parties and trans- portation companies subject to the provisions of this act, in respect t<> any rale, charge, order, rule or regulation published as required by this act, the published rate, charge, order, rule or regulation shall be deemed to be just and reasonable, and shall not be open to controversy excepl in and by way of such pro- ceedings for that purpose before the commission and the courts as are provided for in Ibis act. Investigation by interstate commerce commission. Sec. 40'/. The said commission is hereby authorized and directed when public interest require, to file petitions for investi- 6G8 STATUTES AT LARGE. gations, or complaint or complaints, with the interstate com- merce commission, and tu file such suit or suits, iu tribunals or courts of competent jurisdiction as are permitted under the terms of what is known as the interstate commerce act, com- plaining of anything done, or omitted to be done by common carriers subject to the provisions of the interstate commerce act. Said board is also hereby authorized and instructed to file petitions for investigations, or complaint, or complaints, and to commence such suit or suits, in tribunals, or courts of com- petent jurisdiction, complaining of the order. or orders, of any transcontinental railroad company, or other common carriers, either railroad or steamship, raising freight rates, or entering into contracts or combinations to raise, or maintain rates, or to take any action that will prevent competition, to and from, or to or from, California points to points in the United States out- side of California. The attorney general is hereby directed to represent said board and the people of the State of California, in any proceeding commenced under the provisions of this section. Co-operation with interstate commerce commission. Sec. 40c. The said commission is hereby empowered and directed to cooperate with the interstate commerce commission in the investigation of discriminations in charges of facilities for transportation of passengers or freight made by any railroad or other transportation company, between places or persons, or in the facilities for the transportation of the same classes of passengers or freight within this stale, or coming from or going to any other state, and to that end and for either of said purposes shall arrange for joint meetings with the interstate commerce commission or any section thereof in the various com- mercial and industrial centers of this state. Sessions of state board, to be held where. Sec. 4"'/. The state board of railroad commissioners shall meet ami hold a session of such board for the purpose of inves- tigating any discriminations, or any complaint of any citizen of this state, against any railroad or other transportation com- pany at least once every six months, commencing May 1, 1909, at each of the following cities: San Francisco, Los Angeles. San Diego. Stockton. Sacramento. Oakland, Fresno, San Jose, Santa Barbara, Redding, Bakersfield. Marysville, San Bernar- dino and Eureka, and at such other cities or towns in counties other than those in which the cities hereinabove named are RAILROADS. 669 respectively situated, when a petition for a meeting of such hoard is filed with the secretary thereof by ten shippers. Notice of such meetings shall he given by said hoard by advertising same for a period of one week in one or more daily newspapers pub- lished in the city and county of San Francisco, and for a like period in a daily newspaper in the county where any meeting is to he held if there be one published therein, if not, then for a period of two weeks in a weekly newspaper published therein. Such notice shall contain a request for the public interested in transportation matters to appear and present any complaints or file petitions for better facilities or for reduction of rates. At such meetings testimony may he taken in support of such complaint or petition. If demanded by any railroad or other transportation company, affected by such complaint or petition, the board may hear such testimony as such company may pre- sent ; whereupon such board shall take such proceedings on such complaint or petition as may be authorized by the constitution and laws of this state. The testimony taken at all hearings of such board authorized by the provisions of this act shall be reduced to writing, and a copy of the same shall be reported to the legislature at the beginning of each regular session thereof. Construction of certain words. Sec. 41. The words "commission." "commissioners" and "railroad commission." as used in this act, shall he construed as meaning the board of railroad commissioners of the State of California, and the word "commissioner" as used in this act shall be construed as meaning any one of the members of the board of railroad commissioners of the State of California. Application of act. SEC. 4l\ This act shall be construed and held to apply only to the transportation of property and passengers within the State of California. Repeal of certain acts. SEC. 43. An act entitled "An act to create the office of com- missioner of transportation, and to define its powers and duties; to fix the maximum charges for transporting passengers and freights on certain railroads, and to prevent extortion and unjust discrimination thereon." approved April 1, 1S78, and also an acl entitled "An act to organize and define the powers of the board of railroad commissioners," approved April 15, 1880, and G70 STATUTES AT LARGE. all acts or pails of acts inconsistent with the provisions of this act. arc hereby repealed. Time act shall take effect. Ski'. 44. This act shall take effect immediately. An act requiring persons, corporations, receivers or trustees operating lines of railway to furnish cars for shipment of freight upon written application from shippers of freight and providing a penalty and damages to be paid by such persons, corporations, receivers or trustees to shippers for failure to do so and providing a penalty and damages to be paid to persons, corporations, receivers or trustees operating such railway lines by the applicant or shipper for failure to load or unload cars so furnished. Approved April 20, 1909 ; stats. 1909, p. 1007. The people of the State of California, represented in senate and assembly, do enact as follows: Duty of railroads to supply cars to shippers — Time in which to furnish cars. Section 1. When the owner, manager or shipper of any freight of any kind shall make application in writing to any superintendent, agent or other person in charge of transpor- tation of any railway company or person, corporation, receiver or trustee operating any line of railway, at the point where cars are desired upon which to ship any freight, it shall be the duty of such railway company, corporation, receiver, trustee or other person in charge thereof, to supply the number of ears so required at the point indicated in the application within the time hereinafter specified after receipt of such application, and such railway company, person, corporation, trustee or receiver shall supply such cars to the persons so applying there- for in the order in which such applications are made, without giving preference to any person ; provided, if the application be for ten- cars or less, the same shall be furnished in five days; provided, if the application be for ten cars and less than fifty cars the same shall be furnished in ten days; and pro- vided further, that if the application be for fifty cars or more, such railway company, person, corporation, receiver or trustee RAILROADS. 671 shall have fifteen full days iu which to supply the ears; if the application be for cars for the transportation of perish- able freight the number of cars applied for shall be furnished within forty-eight hours; provided, that the point to which said freight is to be shipped is on the line of the railway com- pany to which such application for cars is made or on the line of a railroad with which the railway company to which such application is made has connections and to which point it ordi- narily receives freight for shipment; and provided further, that railway companies to which such application may be made shall not be obligated under the terms hereof to furnish cars of any class required for the transportation of the class of commodity to be shipped and for which application is made, unless it owns or usually operates such class of cars. All cars supplied in compliance with the provisions of this section shall be suitable for the purpose for which they are ordered. The time herein stated for the delivery of cars mentioned in any such application shall begin to run from the hour of seven o'clock A. M. of the next day following the day of the receipt of any such application by the railway company, corporation, receiver, trustee or other person in charge to whom it is given. Application shall state what. Sec. 2. Said application for cars shall state the number of cars desired, the kind of freight: to lie shipped, the point of destination, the time and place at which they are desired; pro- vided, that the place designated where the cars are to be fur- nished shall be at some station or switch on the railroad of the person, corporation, receiver or trustee to whom or to whose agent such application is made. Penalty for failure to furnish. Sec, 3. When cars are applied for under the provisions of this act, if they are not furnished as herein provided, the rail- way company, person, corporation, receiver or trustee so fail- ing to furnish them shall be liable and immediately indebted to the party or parties so applying for said car or cars in the sum of five dollars per day for each car failed to be so fur- nished, to be recovered in any court of competent jurisdiction, and in addition all actual damages I hat such applicant may sustain by the failure to furnish said car or cars. 672 STATUTES AT LARGE. Deposit of freight charges — Failure of applicant to load cars; penalty for. Sec. 4. Such applicant shall, at the time of applying for such car or cars, deposit with the agent of such company or with such person, corporation, receiver or trustee one fourth of the amount of the freight charge for the use of such car or cars, if such agent, or such person, corporation, receiver or trustee shall require such deposit: and such applicant shall within forty-eight hours after such car or cars have been delivered and placed as heretofore provided fully load the same; and upon failure to do so, he shall be liable and immediately indebted and pay to such company, person, corporation, receiver or trustee the sum of six dollars per day for each car not used ;provided, that where applications are made on several days, all of which are filled upon the same day, the applicant shall have forty-eight hours to load the car or cars furnished on the first application, and the next forty-eight hours to load the car or cars furnished on the next application, and so on ; and the penalty herein prscribed shall not accrue as to any ear or lot of cars applied for on any one day, until the period within which they may be loaded has expired, and if the said applicant shall not use such cars so ordered by him, he shall forfeit and pay to the said railroad company in addition to the penalty herein prescribed, the actual damages that such com- pany may sustain by the failure of the applicant to use said ears. Every such company, person, corporation, receiver or trustee shall have a lien upon any deposit made in accordance with this section for any damages or penalties accruing to it by failure to load any ear or cars delivered and placed as in this act provided. Cars must be moved when loaded — Time for unloading cars — Demurrage — Rates for demurrage. Sec. 5. The time within which said cars are to be loaded shall begin to run from the hour of seven o'clock a. m. of the day next following the day the same are furnished at the place required and at the time specified in the application therefor. If the said applicant shall not use such cars so ordered by him, be shall so notify the railroad furnishing the same, and he shall l>e liable for the penalty above set forth to the railway com- pany, corporation, receiver, trustee or other person in charge RAILROADS. «*»7L! furnishing the same for the period of one day after said noti- fication. When cars have been furnished and loaded it shall be the duty of the railway company, corporation, receiver, trus- tee or other person in charge to promptly remove the same from the point where loaded and deliver the same to the con- uecting railroad or to the person or persons to whom they are consigned, within a reasonable time. All persons to whom cnrs are consigned shall unload the same within forty-eight (48) hours after delivery thereof to the said consignee at the usual and appropriate point of unloading ; and upon failure to unload said car or cars within the time herein specified, after the delivery thereof as herein stated, the consignee thereof shall be liable and shall be held to be immediately indebted to the railway company, corporation, receiver, trustee or other per- son in charge, delivering said cars, in the sum of six dollars per day, or fraction of a day, for each car so left unloaded. The time for unloading such cars shall be computed in the manner hereinbefore prescribed for loading cars. Nothing in this act contained shall be construed to prevent any railway company, person, corporation, receiver or trustee, operating any line of railway from making and enforcing any and all necessary rules for demurrage to insure the loading and unloading of cars within twenty-four hours after delivery thereof to consignors or consignees at the usual and appropriate point of loading or unloading; provided, the rate or charge for demurrage so made shall not exceed three dollars for the first day after said period of twenty-four hours for each car, and thereafter the rate or charge for demurrage shall be the sum of six dollars per day for each car as hereinabove in this section provided. Claims for failure to furnish cars. Sec. 6. Any claim which any person may have against any railway company, corporation, receiver, trustee or other person in charge, for failure to furnish cars or for damages sustained by reason thereof, shall be assignable in the same manner, and to the same extent, as any assignable claim or chose in action, and suit or action for the collection thereof may be brought against any railway company, corporation, receiver, trustee or other person in charge by any person having any such claim, or by the assignee thereof. 29— cl <>74 STATUTES AT LARGE. What evidence necessary in suits. Sec. 7. It shall be necessary for the party or parties bring- ing suit against any railway company, person, corporation, receiver or trustee under the provisions of this act, to show by evidence that he or they had on hand at the time any demand for cars was made the amount of oil, lumber, wheat or other grain, wool, hides, fruit or other freight,- necessary to load the ears so ordered; provided, no charge for failure of any railway company, corporation, receiver, trustee or other person in charge to furnish a car or cars as herein required shall be made or enforced, or damages therefor claimed, when such failure is caused by public calamity, strikes, washouts, acts of God, the public enemy, mohs, riots, wrecks, fires or accidents. The causes in this act enumerated, which afford an excuse on the part of a railroad for not furnishing the cars as required, shall likewise, and to the same extent, excuse the owner, manager or shipper or consignee of any freight from all liability here- under for failure to load or unload cars as herein required. Act applies to what shipments. Sec. S. This act shall apply only to shipments begun and terminating within the State of California. RULES OF THE RAILROAD COMMISSION. Rules of procedure of the railroad commission of the State of California. Adopted by the Commission June S, 1909. The railroad commission of the State of California hereby adopts the following rules to govern the exercise of the judicial power conferred upon the commission by the state constitution, and the laws made in pursuance thereof: RULE I. Any person believing himself aggrieved by any railroad or other transportation company, in any particular, may file a verified complaint against such railroad or transportation com- pany with the secretary of the commission. The secretary must RULES OK RAILROAD COMMISSION. (iT."i indorse ou the complaint the day, month, and year that it is filed, and must, at the request of the commission issue a sum- mons thereon. RULE II. The summons must be directed to the defendant, must In- signed by the secretary, and attested by the seal of the commis- sion, and must contain : 1. The names of the parties to the proceeding'. 2. A statement of the nature of the complaint. 3. A direction that the defendant appear and answer said complaint at a time and place specified by said commission. RULE III. The summons may be served by any citizen of the state, and shall be served by delivering a copy thereof, together with a copy of the complaint, to the defendant, or if the defendant is a corporation, to the president, secretary, treasurer, or man- aging or designated agent thereof. Proof of service of summons and complaint must be made by certification. RULE IV. From the time of service of the summons and copy of com- plaint, the commission shall be deemed to have acquired jurisdic- tion of the parties and subject-matter. The voluntary appear- ance of the defendant is equivalent to personal service. RULE V. The complaint must contain : 1. The names of the parties to the proceeding. 2. A statement of the cause of complaint, in ordinary and concise; language, giving such particulars of time, place, and cir- cumstances a.s may enable the defendant to answer the same intelligently. ','». A demand of the relief claimed. RULE VI. Tlie complainanl may unite several causes of action in I hi' same complaint, but each cause must be separately pleaded therein. G7G STATUTES AT LARGE. RULE VII. The defendant may, within the time required in the summons to answer, demur to the complaint upon the following grounds : 1. That it does not state facts sufficient to authorize the pro- ceedings. 2. That it contains more than one cause of action, and that such causes are not separately pleaded. 3. That it is ambiguous, uncertain, or unintelligible. RULE VIII. If the demurrer is sustained, the complainant may. within ten days thereafter, amend his complaint. If the demurrer is overruled, the defendant must within ten days thereafter, answer the complaint. RULE IX. The answer of the defendant must contain : 1. A general or specific denial of the allegations of the com- plaint controverted by him. 2. A statement of any new matter of defense, or in mitiga- tion or explanation of charges made in the complaint. 3. The answer of the defendant shall be verified and filed with (he secretary of the commission and a copy thereof served by defendant upon complainant. rule x. The complainant may, within ten days after the service of the answer, demur to the same as insufficient, and if the demurrer is sustained, the defendant may, within ten days thereafter, amend his answer. rule XL The complaint, answer, and demurrer must be subscribed by the party or by some attorney at law in his behalf. The com- plaint and answer must be verified in the same manner, by the persons and in the form inquired by the Code of Civil Pro- cedure in civil cases. RULE XII. All pleadings shall be in typewriting on one side of the sheet only ; each line and page shall be numbered and three copies of every pleading shall be filed with the commission. 1. Every complaint shall specify the section or sections of the law claimed by complainant to have been violated by the facts pleaded. RULES OF RAILROAD COMMISSION. <>77 2. Demurrers to pleadings shall be accompanied by a written statement of points and authorities in short form or such de- murrers will be disregarded by the commission. RULE XIII. The provisions of sections 452, 403, 462, 463, 464. 465, 461). 470, 471, 472, 473, and 476 of the Code of Civil Procedure shall be applicable to pleadings before the commission. RULE XIV. When issue has been joined, the commission, upon application of either party, or of its own motion shall fix the day and place of trial. 1. Good cause appearing therefor, the time or place of trial may be changed, but no order changing the time or place of trial shall be made without proof of five days' notice of the applica- tion therefor. 2. The secretary shall notify all parties of the time and place of trial as provided by law. 3. Stipulations entered into between parties extending time to move or plead will not be considered by the commission. All extensions of time to move or plead must be secured from the commission after two days' notice to the adverse party of appli- cation therefor, and such applications shall be accompanied by an affidavit showing necessity therefor. RULE xv. If the defendant fails to appear and answer the complaint. the commission shall render such decision thereon, within the relief demanded in the complaint, as the facts may warrant. RULE xvi. The secretary of the commission must keep a calendar of the proceedings at issue, according to the date of service of the sum- mons; and sections 595 and 596 of the Code of Civil Procedure shall be applicable to the proceedings to he had after said pro- ceedings are entered on the calendar. RULE XVII. Any party to such proceeding, feeling aggrieved at the decision of I lie commission may, within thirty days after such decision, apply t<> tbe commission for a rehearing: such appli- CIS . STATUTES AT LARGE. cation shall be in writing, and shall be filed with the secretary. The application may i>e made upon any or all of the following grounds : 1. Irregularity in the proceedings or abuse of discretion, by which the party was prevented from having a fair hearing. 2. Accident or surprise which ordinary prudence could not have guarded against. 3. Newly discovered evidence, material for the party making the application, which could not with reasonable diligence have been discovered and produced at the trial. 4. Insufficiency of evidence to justify the decision, or that it is against the law. 5. Error of law occurring on the trial. Sections 658, 659. and 660 of the Code of Civil Procedure shall be applicable to such rehearing. RULE XVIII. Sections 66S, 669, and 670 of the Code of Civil Procedure shall be applicable to the entry of the decisions of these com- missioners. RULE XIX. The provisions of part IV of the Code of Civil Procedure, relating to the general principles, kinds, and degrees, production, and effect of evidence, and of the rights and duties of witnesses, shall be applicable to proceedings before the commission. RULE XX. The word "person" in these rules includes corporations and firms — the singular the plural, and the masculine the feminine and neuter genders. RULE XXI. These rules may be amended at any regular meeting of the commission. RULE XXII. Tfiese rules shall be in force from and after the first day of July, 190!). A. C. Irwin, First District, H. D. Loveland, Second District, Theodore Summerland, Third District, Railroad Commission of the Ktate of California. A I test: W. D. Wagner, Secretary. STREET RAILROADS. (!79 STREET RAILROADS. For acquisition and sale of franchises, see Franchises. See, also, Civ. C. §§ 497 to 511 ; Pol. C. §§ 3246, 3250. An act to limit and fix the rates of fares on street railroads in cities and towns of more than one hundred thousand inhabitants. Approved January 1, 1878; stats. 1877-8, p. 18. The people of the State of California, represented in senate and assembly, do enact as follows: Rate to be not higher than five cents. Section 1. No street railroad in any city or town of this state, with more than one hundred thousand inhabitants, shall be allowed to charge or collect a higher rate of fare than five cents for each passenger per trip of any distance in one direc- tion, either going or coming, along any part of the whole length of the road or its connections. Penalty for violation. Sec. 2. Every violation of the provisions of section one of this act shall subject the owner or owners of the street railroad violating the same to a forfeiture to the person so unlawfully charged, or paying more than is therein allowed to be charged, the sum of two hundred and fifty dollars for each and every instance when such unlawful charge is made or collected, to be recovered by suit in any court of competent jurisdiction ; such causes of action shall be assignable, and the action may be maintained by the assignee in his own name, and several causes of action arising out of unlawful charges or collections from different persons may be vested in the assignee and united in the same action. Time act shall take effect. Sec. 3. This act shall be in force from its passage. (See, also, Civ. C. §501.) 6S0 STATUTES AT LARGE. An act to confirm, ratify, and make valid ordinances heretofore passed by the trustees, council, or other body intrusted with the government of any incorporated city, city and county, or town, giving authority and permission to propel cars upon railroad tracks laid through the streets and public highways of such incorporated city, city and county, or town, by electricity. Approved February 25, 1891; stats. 1891, p. 12. The people of the State of California, represented in senate and assembly, do enact as follows: Authority to lay railroad tracks — Electricity — Regulations. Section 1. In all cases where, prior to the passage of this act, authority to lay railroad tracks through streets or public highways of any incorporated city, city and county, or town, has been obtained for a term of years, not exceeding fifty, from the trustees, council, or other body to whom was intrusted the gov- ernment of the city, city and county, or town, and permission has been granted by such governing body to propel cars upon such tracks by electricity, such authority and permission shall be, and shall be held and deemed, as valid and legal as the same would have been if, at the time of the obtaining thereof, section four hundred and ninety-seven- of the Civil Code had expressly declared that permission might be given to propel cars upon such tracks by electricity, as well as by horses, mules, or wire ropes running under the streets and propelled by stationary steam engines ; provided, that all such permissions or franchises heretofore granted shall be subject to the provisions of the laws of this state applicable to street railroads in general, and sub- ject to the same regulations from city, city and county, and town authorities as if the said franchises were hereafter granted. Time act shall take effect. Sec. 2. This act shall take effect and lie in force from and after its passage. Note. — Constitutional (People vs. Los Angeles, etc.. /?.//. Co., 91 Cal. p. 338). (See, also, Civ. C. §497.) STREET RAILROADS. 681 An act requiring city, city and county, or town authorities to exact and require from persons or corporations seeking per- mission and authority to lay railroad tracks through streets or public highways of any incorporated city, city and county, or town, a satisfactory promise and undertaking to permit and allow mail carriers in the employ of the United States Gov- ernment at all times, while engaged in the actual discharge of duty, to ride on the cars of such railroad without paying fare; and to make such promise and undertaking a condition, precedent to the granting of such permission and authority by such governing board. Approved February 27, 1893; stats. 1893, p. 44. The people of the State of California, represented in senate and assembly, do enact as follows: Authorities to exact promise from street railroads to carry letter carriers free. Section 1. In all cases hereafter, where application is made to the city, city and county, or town authorities, or to the trustees, council or other body to whom is intrusted the govern- ment of the city, city and county, or town, for permission and authority to lay railroad tracks through streets or public high- ways of any incorporated city, city and county, or town, such authorities, before granting such permission and authority, in addition to the terms and restrictions which they are now, by law, authorized to impose, must exact and require from the persons or corporation asking or seeking such permission and authority, a satisfactory promise and undertaking to permit and allow mail carriers in the employ of the United States govern- ment, at all times, while engaged in the actual discharge of duty, to ride on the cars of such railroad without paying any sum of money whatever for fare or otherwise. And such gov- erning body of city, city and county, or town authorities must make such promise and undertaking on the part of such per- sons or corporations a condition precedent to the granting of such permission and authority to lay railroad tracks through st reels or public highways of such city, city and county, or town; provided, that all such permissions and franchises shall he subject to all other provisions of the laws of this state appli- cable to street railroads in general, and subject, to regulations from city, city and county, and town authorities. 682 STATUTES AT LARGE. Time act shall take effect. Sec. 2. This act shall take effect and be in full force from and after its passage. An act to authorize cities and towns to grant franchises for the construction and maintenance of railroads beyond the limits of such cities or towns leading to public parks owned thereby. Became a law, under constitutional provision, without Governor's approval, March 1, 1897 ; stats. 1897, p. 46. The people of the State of California, represented in senate and assembly, do enact as follows: Railroad franchises may be granted outside city limits — Fare. Section 1. It shall he lawful for the council, trustees, or other governing body of any city or town owning public parks situated outside of said city or town, to grant franchises for the building and operation of railroads from any point in, or at the exterior boundary of such city or town, to, in, or through such park, in the same manner and to the same extent as it now has power to grant the same for street railroads within the limits of such city or town ; provided, that in addition to all other conditions, it shall be made a condition of such franchise that the fare of passengers on such road or roads shall never exceed five cents for a single trip. Government of railroads so chartered. Sec. 2. All railroads, except as otherwise provided in this act, authorized by this act to be so chartered shall be governed hy the provisions of part four, title four, of the Civil Code of California, concerning street railroads and corporations, so far as the same shall be applicable thereto, and of all acts amenda- tory thereof. Also by the provisions of "An act providing for the sale of railroad and other franchises in municipalities and relative to granting of franchises." approved March twenty- third, eighteen hundred and ninety-three. Time act shall take effect. Sec. 3. This act shall lake effect immediately. TBADE-MABKS. GS3 TRADE-MARKS. An act to protect the owners of bottles, boxes, siphons, and kegs used in the sale of soda waters, mineral or aerated waters, porter, ale, cider, ginger ale, milk, cream, small beer, lager beer, weiss beer, beer, white beer, or other beverages. Approved March 31, 1891; stats. 1891, p. 217. Amended March 5, 1903 ; stats. 1903, p. 83. The people of the State of California, represented in senate and assembly, do enact as follows: Description to be filed with county clerk and secretary of state. Section 1. Any and all persons engaged in manufacturing, bottling, or selling soda waters, mineral or aerated waters, porter, ale, beer, cider, ginger ale, milk, cream, small beer, lager beer. weiss beer, white beer, or other beverages in bottles, siphons, or kegs, with his, her, its, or their name or names, or other marks or devices branded, stamped, engraved, etched, and blown, im- pressed, or otherwise produced upon such bottles, siphons, or kegs, or the boxes used by him, her, it, or them, may file in the office of the clerk of the county in which his, her, its, or their principal place of business is situated, and also in the office of the secretary of state, a description of the name or names, marks or devices, so used by him, her, it, or them, respectively, and cause such description to be. printed once in each week for three weeks successively, in a newspaper published in the county in which said notice may have been filed as aforesaid. Unlawful acts. Sec. 2. It is hereby declared to be unlawful for any person or persons, corporation or corporations, to fill with soda waters, mineral or aerated waters, porter, ale, cider, ginger ale. milk, cream, beer, small beer, lager beer, weiss beer, white beer, or other beverages, or with medicine, compounds, or mixtures, any bottle, box, siphon, or keg, so marked or distinguished, as afore- said, with or by any name, mark, or device, of which a descrip- tion shall have been tiled and published, as provided in section one of this ail. or deface, erase, oblitefate, cover up, or other- wise removed or conceal any such name, mark or device thereon, or to sell, buy, give, take, or otherwise dispose of or traffic in (he same, without the written consent of, or unless the same (IS I STATUTES AT LARGE. shall have been purchased from the person or persons, corpora- tion or corporations, whose mark or device shall be or shall have been in or upon the bottle, box, siphon, or keg so filled, trafficked in, used, or handled as aforesaid. Any person or per- sons or corporation offending against the provisions of this sec- tion shall be deemed guilty of a misdemeanor, and shall be punished for the first offense by imprisonment not less tban ten days nor more than sis months, or by a fine of fifty cents for each and every such bottle, box. siphon, or keg so filled, sold, used, disposed of. bought, or trafficked in. or by both such fine and imprisonment; and for each subsequent offense by imprison- ment not less than twenty days nor more than one year, or by a fine of not less than one dollar nor more than five dollars, for each and every bottle, box, siphon, and keg so filled, sold, used, disposed of, bought or trafficked in, or by both such fine and imprisonment, in the discretion of the magistrate before whom the offense shall be tried. Use presumptively unlawful. Sec. 3. The use by any person other than the person or persons, corporation or corporations, whose device, name or mark shall be or shall have been upon the same, without such written consent or purchase, as aforesaid, of any such mark or distinguished bottle, box, siphon, or keg, a description of the name, mark, or device whereon shall have been filed and pub- lished, as herein provided, for the sale therein of soda waters, mineral or aerated waters, porter, ale, cider, ginger ale, milk, cream, beer, small beer, lager beer, weiss beer, white beer, or other beverages, or any article of merchandise, medicines, com- pounds, or preparations, or for the furnishing of such or similar beverages to customers, or the buying, selling, using, disposing of. or trafficking in of any such bottles, boxes, siphons, or kegs, by any person other than said persons or corporations having a name, mark, or device thereon, or such owner without such written consent, or the having by any junk dealer, or dealer in secondhand articles, possession of any such bottles, boxes, siphons, or kegs, a description of the marks, names, or devices wherein shall have been so filed and published as aforesaid. without such written consent, shall and is hereby declared to be presumptive evidence of the said unlawful use, purchase, or traffic in of such bottles, boxes, siphons, or kegs. TRADE-MABKS. (5S5 Issue of search warrants — Punishment. Sec. 4. Whenever any person, persons, or corporations, men- tioned in section one of this act, or his, her, its, or their agent, shall make oath before any magistrate that he, she, or it has reason to believe, and does believe, that any of his, her, or their bottles, boxes, siphons or kegs, a description of the names, marks, or devices whereon has been so filed and published, as aforesaid, are being unlawfully used or filled, or had by any person or corporation manufacturing or selling soda, mineral, or aerated waters, porter, ale, cider, ginger ale, milk, cream, small beer, larger beer, weiss beer, white beer, and other bever- ages, or that any junk dealer, or dealer in secondhand articles. vender of bottles, or any other person or corporation, has any such bottles, boxes, siphons, or kegs, in his, her, or its possession, or secreted in any place, the said magistrate must thereupon issue a search warrant to discover and obtain the same, and may also cause to be brought before him the person in whose posses- sion such bottles, boxes, siphons, or kegs may be found, and then inquire into the circumstances of such possession ; and if said magistrate finds that such person has been guilty of a viola- tion of section two of this act, he must impose the punishment therein prescribed, and he shall also award possession of the property taken upon such search-warrant to the owner thereof. Deposit not to be deemed a sale. Sec. 5. The requiring, taking or accepting of any deposit for any purpose, upon any bottle, box, siphon, or keg shall not be deemed or constitute a sale of such property, either optional or otherwise, in any proceeding under this act. [New section ; added March 5, 1903.] Refiling of marks not required. Sec. (!. Any person or persons, corporation or corporations, that has or have heretofore tiled in the offices mentioned in sec- tion 1 of this act, a description of the name or names, marks, or devices, upon his. her. their, or its property therein men- tioned, and has caused the same to be published according to the laws existing at the time of such tiling and publication shall not be required to .main tile and publish such description to be entitled to i lie benefits of this act; and any person or persons, corporation or corporations, having complied with the pro- visions of this act may as a part of the sale, assignment or <;S<*i STATUTES AT LARGE. transfer of all his, her, their or its said bottles, boxes, siphons, or kegs, used as aforesaid, with his, her, their or its name or names or other marks or devices, branded, stamped, engraved, etched, and blown, impressed or otherwise produced upon such bottles, boxes, siphons and kegs, to any other person or persons, corporation or corporations, engaged in manufacturing, bottling, or selling soda waters, mineral or aerated waters, porter, ale, beer, cider, ginger ale, milk, cream, small beer, lager beer, weiss beer, white beer or other beverages, sell, assign, and transfer the sole and exclusive right of using said name or names, marks and devices in said business. And in the event of such sale, transfer or assignment as aforesaid, or in the event of the transfer by operation of law or by sale under order of any court of the entire business of such person or persons, corporation or corporations, or of the entire stock of bottles, boxes, siphons or kegs belonging to them, him, her or it, to any person or persons, corporation or corporations, engaged in manufacturing, bottling or selling soda waters, mineral or aerated waters, porter, ale, beer, cider, ginger ale, milk, cream, small beer, lager beer, weiss beer, white beer or other beverages, such person or per- sons, corporation or corporations, shall not be again required to file and publish a description of said name or names, marks or devices, hereunder, but shall be entitled to all the benefits of this act immediately upon acquiring such bottles, boxes, siphons or kegs. or such business as aforesaid. [Formerly sec- tion 5; renumbered and amended March 5, 1003.] Repeal of conflicting acts. Sec. 7. All acts and parts of acts inconsistent herewith are for the purpose of this act hereby repealed. [Formerly sec- tion 6; renumbered and reenacted March 5, 1003.] (For Trade-marks, etc., see.. also, Pol. C. §§ 3106 to 3201 ; Civ. • '. §§ 654, 055, 001, 1772, 1773; Pen. C. §S 349a to 354%.) TRUST COMPANIES. See Banks and Banking; Executors. UNITED STATES RIGHTS OF WAY. GST UNITED STATES. An act granting rights of way for lines, roads, structures, levees, canals, and excavations to the United States, over the public lands of this state. Approved March 21, 1007 ; stats. 1007, p. 848. The people of the State of California, represented in senate and assembly, do enact as follows: Right of way over public lands. Section 1. A right of way is hereby granted over the pub- lic lands of this state, and over any public land which may hereafter become the property of this state, to the United States, for all telegraph, telephone, power or light lines, roads, rail- roads, tramways, dikes, levees, dams, mounds, embankments, tunnels, ditches or canals, or other works, structures or exca- vations requiring rights of way built, erected, excavated or con- structed under the provisions of the act of congress, approved June 17, 1902, relating to irrigation and reclamation. Patents subject to provisions of this act. Sec. 2. All patents or conveyances of such lands which may hereafter be located or filed on shall be issued subject to the rights of way herein provided for. WAGES. An act to provide for the payment of the wages of mechanics and laborers employed by corporations. Approved March 31, 1801; stats. 1891, p. 105. Unconstitu- tional (Slocum vs. Bear Valley Irrigation Co., 122 Cal. 555). OSS STATUTES AT LARGE. An act requiring every corporation doing business in this state to pay their employees, and each of them, at least once in each and every month, the wages earned by such employee; to limit the defenses which may be set up by such corpora- tion to assignments of wages, set-off or counterclaims, or the absence of such employee at the time of making payment, and in case of such absence the wages are payable upon demand; to prohibit assignments of wages for the purpose of evading the provisions of this act and agreements to accept wages at longer periods than as herein provided as a condition of employment; to fix a penalty for this violation of the provisions of this act by such corporation, and to pro- vide for the disposition of any fines recovered from corpora- tions violating the same. Approved March 20, 1897; stats. 1897, p. 231. Unconstitu- tional (Johnson vs. Goodyear M. Co., 127 Cal. 4). WAREHOUSEMEN. An act concerning warehouse receipts, and the issuing, sale and transfer thereof, and the sale of goods, wares and mer- chandise stored in public or private warehouses in other states. Approved March 20, 1005; stats. 1905, p. 322. The people of the State of California, represented in senate and assembly, do enact as follows: Sale or transfer of warehouse receipts. Section 1. That it shall be unlawful for any corporation, firm or person, their agents or employees, to issue, sell, pledge, assign or transfer in this state, any receipt, certificate or other written instrument purporting to be a warehouse receipt, or in the similitude of a warehouse receipt, or designed to be under- stood as a warehouse receipt, for goods, wares or merchandise stored or deposited, or claimed to be stored or deposited, in any warehouse, public or private, in any other state, unless such receipt, certificate or other written instrument, shall have been issued by the warehouseman operating such warehouse. Fraudulent receipts. Sec. 2. It shall be unlawful for any corporation, firm or person, their agents or employees, to issue, sell, pledge, assign WAREHOUSEMEN. 689 or transfer in this state, any receipt, certificate or other written instrument for goods, wares or merchandise claimed to !»■ stored or deposited, in any warehouse, public or private, in any other state, knowing that there is no such warehouse located at the place named in such receipt, certificate or other written instru- ment, or if there be a warehouse at such place, knowing that there are no goods, wares or merchandise stored or deposited therein as specified in such report, certificate or other written instrument. Number and location of warehouse must be set forth. Sec. 3. It shall be unlawful for any corporation, firm or person, their agents or employees, to issue, sign, sell, pledge, assign or transfer, in this state, any receipt, certificate or other written instrument evidencing, or purporting to evidence, the sale, pledge, mortgage or bailment of any goods, wares or mer- chandise stored or deposited, or claimed to be stored or deposited, in any warehouse, public or private, in any other state, unless such receipt, certificate or other written instrument shall plainly designate the number and location of such warehouse, and shall also set forth therein a full, true and complete copy of the receipt issued by the warehouseman operating such warehouse wherein such goods, wares or merchandise are stored or de- posited, or are claimed to be stored or deposited; provided, that the provisions of this section shall not apply to the issue, sign- ing, sale, pledge, assignment or transfer of bona fide warehouse receipts issued by the warehouseman operating public or bonded warehouses in other states, according to the laws of the state wherein such warehouses may be located. Penalty for violation. Sec. 4. Every corporation, firm or person, agent or employee, who shall knowingly violate any of the provisions of this act, shall be deemed guilty of a misdemeanor, and upon conviction thereof, shall be fined in any sum not less than fifty nor more than one thousand dollars, to which may be added imprisonment in the county jail for any period not exceeding six months. (See, also, Civ. C. §§ 1858 to 1858/, as adopted in 1905, and "Warehouse Receipts Act," approved .March 19, 1000.) 690 STATUTES AT LARGE. An act to make uniform the law of warehouse receipts. Approved March 10, 1909: stats. 1909, p. 437. The people of the State of California, represented in senate and assembly, do enact as follows: Warehouseman may issue receipts. Section 1. Warehouse receipts may be issued by any ware- houseman. What receipt must embody — Liability for omission. Sec. 2. Warehouse receipts need not be in any particular form, but every such receipt must embody within its written or printed terms — (a) The location of the warehouse where the goods are stored ; (6) The date of issue of the receipt; (c) The consecutive number of the receipt; (d) A statement whether the goods received will be deliv- ered to the bearer, to a specified person, or to a specified person or his order ; (e) The rate of storage charges; if) A description of the goods or of the packages containing them ; (g) The signature of the warehouseman, which may be made by his authorized agent ; (h) If the receipt is issued for goods of which the warehouse- man is owner, either solely or jointly or in common with others, the fact of such ownership ; and (i) A statement of the amount of advances made and of lia- bilities incurred for which the warehouseman claims a lien. If the precise amount of such advances made or of such liabilities incurred is, at the time of the issue of the receipt, unknown to the warehouseman or to his agent who issues it, a statement of the fact that advances have been made or liabilities incurred and the purpose thereof is sufficient. A warehouseman shall be liable to any person injured thereby, for all damage caused by the omission from a negotiable receipt of any of the terms herein required. Insertion of other conditions. Sec. 3. A warehouseman may insert in a receipt, issued by him, any other terms and conditions, provided that such terms and conditions shall not — WAREHOUSEMEN. 111)1 (a) Be contrary to the provisions of this act. (6) In anywise impair his obligation to exercise that degree of care in the safe-keeping of the goods intrusted to him vvhicli a reasonably careful man would exercise in regard to similar goods of his own. Non-negotiable receipt. Sec. 4. A receipt in which it is stated that the goods received will be delivered to the depositor, or to any other specified person, is a non-negotiable receipt. Negotiable receipt. Sec. 5. A receipt in which it is stated that the goods received will be delivered to the bearer, or to the order of any person named in such receipt is a negotiable receipt. No pro- vision shall be inserted in a negotiable receipt that is non-negoti- able. Sucfc provision, if inserted, shall be void. Duplicates shall be so marked. Sec. 6. When more than one negotiable receipt is issued for the same goods, the word "duplicate" shall be plainly placed upon the face of every such receipt, except the one first issued. A warehouseman shall be liable for all damage caused by his failure so to do to any one who purchased the subsequent receipt for value supposing it to be an original, even though the purchase be after the delivery of the goods by the warehouse- man to the holder of the original receipt. Non-negotiable shall be marked. Sec. 7. A non-negotiable receipt shall have plainly placed upon its face by the warehouseman issuing it, "non-negotiable," or "not negotiable." In case of the warehouseman's failure so to do, a holder of the receipt who purchased it for value sup- posing it to be negotiable, may, at his option, treat such receipt as imposing upon the warehouseman the same liabilities he would have incurred had the receipt been negotiable. This section shall not apply, however, to letters, memoranda, or written acknowledgments of an informal character. Right of holder of receipt. Sec. 8. A warehouseman, in the absence of some lawful excuse provided by this act, is bound to deliver the goods upon (>!>2 STATUTES AT LARGE. ;i demand made either by the holder of a receipt for the goods or by the depositor, if such demand is accompanied with — ( "> (b) Had information that the delivery about to be made was to one not lawfully entitled to the possession of the goods. Same. Sec. 11. Except as provided in section 3G, where warehouse- man delivers goods for which he had issued a negotiable receipt, the negotiation of which would transfer the right to the posses- sion of the goods, and fails to take up and cancel the receipt, he shall be liable to any one who purchases for value in good faith such receipt, for failure to deliver the goods to him, whether such purchaser acquired title to the receipt before or after the delivery of the goods by the warehouseman. Same. Sec. 12. Except as provided in section 36, where a ware- houseman delivers part of the goods for which he had issued a negotiable receipt and fails either to take up and cancel such receipt, or to place plainly upon it a statement of what goods or packages have been delivered he shall be liable, to any one who purchases for value in good faith such receipt, for failure to deliver all the goods specified in the receipt, whether such purchaser acquired title to the receipt before or after the deliv- ery of any portion of the goods by the warehouseman. Alteration of receipt, no excuse from liability — Fraudulent alteration. Sec. 13. The alteration of a receipt shall not excuse the warehouseman who issued it from any liability if such altera- tion was («) Immaterial ; (6) Authorized; or. (c) Made without fraudulent intent. If the alteration was authorized, the warehouseman shall be liable according to the terms of the receipt as altered. If the alteration was unauthorized, but made without fraudulent in- tent, the warehouseman shall be liable according to the terms of the receipt, as they were before alteration. Material and fraudulent alteration of a receipt shall not excuse the warehouseman who issued it. from liability to deliver, according to the terms of the receipt as originally issued, the goods for which it was issued, bill shall excuse him from any other liability to the person who made the alteration and to any person who took with notice of the alteration. Any purchaser GO 4 STATUTES AT LARGE. of the receipt for value without notice of the alteration shall acquire the same rights against the warehouseman which such purchaser would have acquired if the receipt had not been altered at the time of the purchase. Delivery when receipt is lost, how. Sec. 14. Where a negotiable receipt has been lost or de- stroyed, a court of competent jurisdiction may order the delivery of the goods upon satisfactory proof of such loss or destruction and upon the giving of a bond with sufficient sureties to be approved by the court to protect the warehouseman from any liability or expense, which he or any person injured by such delivery may incur by reason of the original receipt remaining outstanding. The court may also in its discretion order the payment of the warehouseman's reasonable costs and counsel fees. The delivery of the goods under an order of the court as pro- vided in this section, shall not relieve the warehouseman from liabilities to a person to whom the negotiable receipt has been or shall be negotiated for value without notice of the proceed- ings or of the delivery of the goods. Word "duplicate" is warranty. Sec. 15. A receipt upon the face of which the word "dupli- cate" is plainly placed is a representation and warranty by the warehouseman that such receipt is an accurate copy of an original receipt properly issued and uncanceled at tiie date of the issue of the duplicate, but shall impose upon him no other liability. Title of warehouseman. Sec. 1G. No title or right to the possession of the goods, on the part of the warehouseman, unless such title or right is derived directly or indirectly from a transfer made by the depositor at the time of or subsequent to the deposit for storage, or from the warehouseman's lien, shall excuse the warehouse- man from liability for refusing to deliver the goods according to the terms of the receipt. Claimants may interplead. Sec. 17. If more than one person claim the title or posses- sion of the goods, the warehouseman may, either as a defense to an action brought against him for non-delivery of the goods, or WAREHOUSEM EN. < '>'. >."> as an original suit, whichever is appropriate, require all known claimants to interplead. Refusal to deliver, excuse from liability. Sec. 18. If some one other than the depositor or person claiming under him has a claim to the title or possession of the goods, and the warehouseman has information of such claim, the warehouseman shall be excused from liability for refusing to deliver the goods, either to the depositor or person claiming under him or to the adverse claimant, until the warehouseman has had a reasonable time to ascertain the validity of the adverse claim or to bring legal proceedings to compel all claim- ants to interplead. If such adverse claimant shall not bring suit and serve summons on the warehouseman within forty- eight hours after the service of notice of his adverse claim, such failure shall act as a complete abandonment of such adverse claim. Rights of third persons. Sec. 19. Except as provided in the two preceding sections and in sections 9 and 30, no right or title of a third person shall be a defence to an action brought by the depositor or person claiming under him against the warehouseman for fail- ure to deliver the goods according to the terms of the receipt. Goods must correspond with description. Sec. 20. A warehouseman shall be liable to the holder of a receipt for damages caused by the non-existence of the goods or by the failure of the goods to correspond with the description thereof in the receipt at the time of its issue. If, however, the goods are described in a receipt merely by a statement of marks or labels upon them, or upon packages containing them, or by a statement that the goods are said to be soods of a certain kind, or that packages containing the goods are said to con- tain goods of a certain kind, or by words of like purport, such statements, if true, shall not make liable the warehouseman issuing the receipt, although the goods are not of the kind which the marks or labels upon them indicate, or of the kind they were said to be by the depositor. Injury to goods. Sec. 21. A warehouseman shall be liable for any loss or injury to the goods caused by his failure to exercise such en re 696 STATUTES AT LAKGE. in regard to them as a reasonable careful owner of similar goods would exercise, but he shall not be liable, in the absence of an agreement to the contrary, for any loss or injury to the goods which could not have been avoided by the exercise of such care. Goods must be kept separate. Sec. 22. Except as provided in the following section, a warehouseman shall keep the goods so far separate from goods of other depositors, and from other goods of the sflme depositor for which a separate receipt has been issued, as to permit at all times the identification and redelivery of the goods deposited. Certain may be mingled. Sec. 23., If authorized by agreement or by custom, a ware- houseman may mingle fungible goods with other goods of the same kind and grade. In such case the various depositors of the mingled goods shall own the entire mass in common, and each depositor shall be entitled to such portion thereof as the amount deposited by him bears to the whole. Care of mingled goods. Sec. 24. The warehouseman shall be severally liable to each depositor for the care and redelivery of his share of such mass to the same extent and under the same circumstances as if the goods had been kept separate. Attachments, surrender of receipt. Sec. 25. If goods are delivered to a warehouseman by the owner or by a person whose act in conveying the title to them to a purchaser in good faith for value would bind the owner, and a negotiable receipt is issued for them, they can not there- after, while in the possession of the warehouseman, be attached by garnishment or otherwise, or be levied upon under an exe- cution, unless the receipt be first surrendered to the ware- houseman, or its negotiation enjoined. The warehouseman shall in no case be compelled to deliver up the actual possession of the goods until the receipt is surrendered to him or impounded by the court. Creditors' right to injunction. Sec. 26. A creditor whose debtor is the owner of a negoti- able receipt shall be entitled to such aid from courts of appro- priate jurisdiction, by injunction or otherwise, in attaching WAREHOUSEMEN. 697 such receipt or in satisfying the claim by means thereof as is allowed at law or in equity, in regard to property which can not readily be attached or levied upon by ordinary legal process. Lien for lawful charges. Sec. 27. .Subjecl to the provisions of section 30, a ware- houseman shall 'have a lien on goods deposited or on the pro- ceeds thereof in his hands, for all lawful charges for storage and preservation of the goods; also for all lawful claims for money advanced, interest, insurance, transportation, labor, weighing, coopering and other charges and expenses in relation to such goods : also for all reasonable charges and expenses for notice, and advertisements of sale, and for sale of the goods where default has been made in satisfying the warehouseman's lien. Lien may be enforced, against what. Sec. 28. Subject to tin' provisions of section .*'>(>, a ware- houseman's lien may be enforced — («) Against all goods, whenever deposited, belonging to the person who is liable as debtor for the claims in regard to which the lien is asserted ; and (6) Against all goods belonging to others which have been deposited at any time by the person who is liable as debtor for the claims in regard to which the lien is asserted, if such per- son had been so entrusted with the possession of the goods that a pledge of the same by him at the time of the deposit to one who took the goods in good faith for value would have been valid. Loss of lien, when. Sec. 20. A warehouseman loses his lien upon goods — («) By surrendering possession thereof; or (6) By refusing to deliver the goods when a demand is made with which he is bound to comply under the provisions of this act. Charges for storage, lien of. Sec. 30. If a negotiable receipt is issued for goods, the warehouseman shall have no lien thereon, except for charges for storage of those goods subsequent to the date of the receipt, unless the receipt expressly enumerates other charges for which a lien is claimed. In such case there shall be a lien for the 30— ox 698 STATUTES AT LARGE. charges enumerated so Ear as they are within the terms of sec- tion 27, although the amount of the charges so enumerated is not stated in the receipt. Goods may be held. Sec. 31. A warehouseman having a lien valid against the person demanding the goods may refuse to deliver the goods to him until the lien is satisfied. Warehouseman entitled to remedy. SEC. 32. Whether a warehouseman has or has not a lien upon the goods, he is entitled to all remedies allowed by law to a creditor against his debtor, for the collection from the depositor of all charges and advances which the depositor has expressly or impliedly contracted with the warehouseman to pay. How lien may be satisfied — Sale of goods at auction. Sec. 33. A warehouseman's lien for a claim which has become due may be satisfied as follows: The warehouseman shall give a written notice to the person on whose account the goods are held, and to any other person known by the warehouseman to claim an interest in the goods. Such notice shall be given by delivery in person or by regis- tered letter addressed to the last known pla< f business or abode of the person to be notified. The notice shall contain— ( make uniform the law of those states which enact it. Definition of certain terms. SEC. 58. (1) In this act, unless the context or subject mai- ler oi herwise requires — "Action" includes counter claim, set-off, and suit in equity. "Delivery" means voluntary transfer of possession from one person to another. "Fungible goods" means goods of which any unit is. from 706 STATUTES AT LARGE. its nature or by mercantile custom, tseated as the equivalent of any other unit. "Goods" means chattels or merchandise in storage, or which has been or is about to be stored. "Holder" of a receipt means a person who has both actual possession of such receipt and a right of property therein. "Order" means an order by indorsement on the receipt. "Owner" does not include mortgagee or pledgee. "Person" includes a corporation or partnership or two or more persons having a joint or common interest. "To purchase" includes to take as mortgagee or as pledgee. "Purchaser" includes mortgagee and pledgee. "Receipt" means a warehouse receipt. "Value" is any consideration sufficient to support a simple contract. An antecedent or pre-existing obligation, whether for money or not, constitutes value where a receipt is taken either in satisfaction thereof or as security therefor. "Warehouseman" means a person lawfully engaged in the business of storing goods for profit. (2) A thing is done "in good faith" within the meaning of this act, when it is in fact done honestly, whether it be done negligently or not. Prior acts. ►Sec. 50. The provisions of this act do not apply to receipts made and delivered prior to the taking effect of this act. Repeal of conflicting acts. Sec. GO. All acts or parts of acts inconsistent with this act are hereby repealed. Name of act. Sec. 61. This act may be cited as the "Warehouse Receipts Act." WATKi: COMPANIES. 707 WATER COMPANIES. See, also. Civ. C. §§ 548 to 552. An act to regulate and control the sale, rental, and distribution of appropriated water in this state, other than in any city, city and county, or town therein, and to secure the rights of way for the conveyance of such water to the places of use. Approved. March 12, 18S5 ; stats. 1885, p. 95. Amended March 2, 1897; stats. 1897, p. 49. Amended February 28, 1901; stats. 1901, p. 80. The people of the State of California, represented in senate and assembly, do < nact as follows: Use of appropriated public water. .Section 1. The use of all water now appropriated or thai may hereafter be appropriated, for irrigation, sale, rental, or distribution, is a public use, and the right to collect rates or compensation for use of such water is a franchise, and excepl when so furnished to any city, city and county, or town, or the inhabitants thereof, shall be regulated and controlled in the counties of this state by the several boards <>f supervisors thereof, in the manner prescribed in this act. Supervisors may fix rates. Sec. 2. The several boards of supervisors of this state, on petition and notice as provided in section three of this act, are hereby authorized and required to tix and regulate the maximum rates at which any person, company, association, or corpora I ion. having or to have appropriated water for sale, rental, or dis- tribution in each of such counties, may and shall sell, rent, or distribute the same. Petition for fixing rates. Sec. 3. Whenever a petition of not less than twenty-five inhabitants, who are taxpayers of any county of this state, shall, in writing, petition the board of supervisors thereof, to be filed with the clerk of said board, to regulate and control the rates and compensation to be collected by any person, company, association, or corporation, for the sale, rental, or distribution of any appropriated water, to any of the inhabitants of such county, and shall in such petition specify the persons, com- panies, associations, or corporations, or any one or more of rOS STATUTES AT LABGE. them, whose water rates are therein petitioned to be regulated or controlled, the clerk of such hoard shall immediately cause such petition, together with a notice of the time and place of hearing thereof, to lie published in one or more newspapers pub- lished in such county ; and if no newspaper be published therein, then shall cause copies of such petition and notice to be posted in not less than three public places in such counties, and such publication and notice shall be for not less than four weeks next before the hearing of said petition by said board ; such notice to be attached to said petition shall specify a day of the next regular term of the session of the said board not less than thirty days after the first publication or posting thereof, for the hearing of said petition, which shall impart notice to all such persons, companies, associations, and corpora- tions mentioned in such petition, and all persons interested in the matters of such petition and notice. Such board may also cause citations to issue to any person or persons within such county to attend and give evidence at the hearing of such peti- tion, and may compel such attendance by attachment. Hearing of petition — Value of water works. Sec. 4. At the hearing of said petition the board of super- visors shall estimate, as near as may be, the value of the canals, ditches, flumes, water-chutes, and all other property actually used and useful to the appropriation and furnishing of such water, belonging to and possessed by each person, association, company, or corporation, whose franchise shall be so regulated and controlled; and shall in like manner estimate as to each of such persons, companies, associations, and corporations, their annual reasonable expenses, including the cost of repairs, manage- ment, and operating such works; and, for the purpose of such ascertainment, may require the attendance of persons to give evidence, and the production of papers, books, and accounts, and may compel the attendance of such persons and the pro- duction of papers, books, and accounts by attachments, if within i heir respective count ies. Rules to be observed in fixing rates. SEC. 5. In the regulation and control of such water rates for each of such persons, companies, associations, and corpora- lions, such board of supervisors may establish different rates at which water may and shall he sold, rented or distributed, WATER COMPANIES. 709 as the case may he; and may also establish differenl rales and compensation for such water so to be furnished for the several different uses, such as mining, irrigating, mechanical, manu- facturing, and domestic, for which such water shall be supplied to such inhabitants, but such rates as to each class shall be equal and uniform. Said board of supervisors, in fixing such rates, shall, as near as may be, so adjust them that the net annual receipts and profits thereof to the said persons, com- panies, associations, and corporations so furnishing such water to such inhabitants shall be not less than six nor more than eighteen per cent upon the said value of the canals, ditches. flumes, chutes, and all other property actually used and useful to the appropriation and furnishing of such water of each of such persons, companies, associations, and corporations: but in estimating such net receipts and profits, the cost of any extensions, enlargements, or other permanent improvements of such water rights or water works shall not be included as part of the said expenses of management, repairs, and operating of such works, but when accomplished, may and shall he included in the present cost and cash value of such work. In fixing said rates, within the limits aforesaid, at which water shall he so furnished as to each of such persons, companies, associations, and corporations, each of said hoard of supervisors may likewise lake into estimation any and all other facts, circumstances, and conditions pertinent thereto, to the end and purpose that said rates shall he equal, reasonable and just, both to such persons, companies, associations, and corporations, and to said inhabit- ants; and each such board of supervisors shall designate what proportion of the rates so fixed shall he for the said annual rea- sonable expenses of each of such persons, companies, associations or corporations, and what proportion of the rates so fixed shall be for the said net annual receipts and profits to such persons. companies, associations^ or corporations. The said rates when so fixed by such board, shall he binding and conclusive for not less than one year next after their establishment, and until established anew or abrogated by such hoard of supervisors, as hereinafter provided. And until such rates shall be so established. or after they shall have been abrogated by such board of super- visors, as in this act provided, the actual rates established and collected by each of the persons, companies, associations, and corporations now furnishing, or that shall hereafter furnish. 710 STATUTES AT LARGE. appropriated waters for sale, rental, or distribution to the in- habitants of any of the counties of this state, shall be deemed and accepted as the legally established rates thereof. [Section T> amended February 28, 1901; stats. 1901, p. SO.] Changing rates. Sec. 6. At any time after the establishment of such water rates by any board of supervisors of this state, the same may be established anew, or abrogated in whole or in part by such board, to take effect not less than one year next after such first establishment, but subject to said limitation of one year, to take effect immediately in the following manner. Upon the written petition of inhabitants as hereinbefore provided, or upon the written petition of any of the persons, companies, associations or corporations, the rates and compensations of whose appropriated waters have already been fixed and regu- lated, and are still subject to such regulation by any board of supervisors of this state, as in this act provided ; and upon the like publication or posting of such petition and notice, and for the like period of time as hereinbefore provided, such board of supervisors shall proceed anew, in the manner hereinbefore pro- vided, to fix and establish the water rates for such person, com- pany, association, or corporation, or any number of them, in the same manner as if such rates had not been previously established, and may, upon the petition of such inhabitants, but not otherwise, abrogate any and all existing rates thereto- fore established by such board. All water rates, when fixed and established as herein provided shall be in force and effect until established anew or abrogated, as provided in this act. Record of rates to be published. Sec. 7. Each board of supervisors of this state, when fix- ing and establishing, or fixing and establishing anew, or abolish- ing any previously established water, rates, as hereinbefore provided, shall cause a record to be made thereof in the records of such board, and cause the same to be published or posted in the manner and for (he time required for (lie publication or posting of said petitions and notices. Water to be furnished at rates fixed. Sec. 8. Any and all persons, companies, associations, or cor- porations, furnishing for sale, rental, or distribution, any appro- priated waters to (he inhabitants of any county or counties of WATER COMPANIES. 711 this state (other than to the inhabitants of any city, city and county, or town, therein), shall so sell, rent, or distribute such waters at rates not exceeding the established rates fixed and regulated therefor by the boards of supervisors of such counties, or as fixed and established by such person, company, associa- tion, or corporation, as provided in this act. Penalty for excessive charges. Sec. 9. If any person, company, association, or corporation, whose water rates for any county of this state have been fixed and regulated by a board of supervisors, as in this act pro- vided, and while such rates are in force, shall collect, for any appropriated water, furnished to any inhabitant of such county water rates in excess of such established rates, shall be liable, in an action by any such inhabitant so aggrieved, to a recovery of the whole rate so collected, together with actual damages sustained by such inhabitant, with costs of suit. To sell to all persons. Sec. 10. Every person, company, association, and corpora- tion, having in any county in the state (other than in any city, city and county, or town therein) appropriated waters for sale, rental, or distribution, to the inhabitants of such county, upon demand therefor, and tender in money of such established water rates, shall be obliged to sell, rent, or distribute such water to such inhabitants at the established rates regulated and fixed therefor, as in this act provided, whether so fixed by the hoard of supervisors or otherwise, to the extent of the actual supply of such appropriated waters of such person, company, associa- tion, or corporation, for such purposes. If any person, com- pany, association, or corporation, having water for such use. shall refuse compliance with such demand, or shall neglect, for the period of five days after such demand, to comply therewith to the extent of his or its reasonable ability so to do, shall be liable in damages to the extent of the actual injury sustained by the person or party making such demand and tender, to be recovered, with costs. Condemning land for right of way. Sec. 11. Whenever any person, company, association, or corporation shall have acquired the right to appropriated water in- shall have acquired the right to appropriate such water in Ibis state, such person, company, association, or corporation, may 712 STATUTES AT LARGE. proceed to condemn the lands and premises necessary to such right of way. under the provisions of title VII of part III of the Code of Civil Procedure of this state, and amendments made and to be made thereto, and all the provisions of said code, so far as the same can be made applicable, relating to the con- demnation and taking of property for public uses, shall i:e applicable to the provisions of this act. Contracts in existence, how affected. Sec. ll 1 /2. Nothing in this act contained shall be construed to prohibit or invalidate any contract already made, or which shall hereafter he made, by dv with any of the persons, com- panies, associations, or corporations described in section two of this act, relating to the sale, rental, or distribution of water, or to the sale or rental of easements and servitudes of the right to the flow and use of water; nor to prohibit or interfere with the vesting of rights under any such contract. [Section 11% added March 2, 1897; stats. 1897, p. 49.] Time act shall take effect. Sec. 12. This act shall take effect and be in force from and after its passage. Note. — For decisions concerning' above act see Osborne vs. San Diego, etc.. County, 178 U. S. p. 22. and Fellows vs. Los Angeles, 1 5 I Cal. p. 52; see, also, L52 Cal. p. 730; XXXVII Cal. I >ec. 7.". ; VI Cal. App. Dee. 6 18-653. An act declaring upon what terms contracts between persons, companies, associations, or corporations furnishing water for irrigation to the consumers of such water sli a 1 1 be valid, and to provide that such contracts shall be deemed based upon sufficient consideration. Approved March 16, 1901; stats. 1901, p. 331. The people of the State of California, represented in senate and assembly, do enact as follows: Contracts between persons or corporations furnishing water for irrigation. SECTION 1. It is and sh.-ill be lawful for any person, com- pany, association, or corporation, furnishing for sale, rental, or distribution any appropriated waters for purpose of irrigation. WATER COMPANIES. 713 to enter into contracts with individual consumers of such water or with bodies of such consumers, relating to the sale, rental, or distribution of such water, or any thereof, which contracts, subject to the restrictions hereinafter declared, shall be valid to all intents and purposes, any law or rule to the contrary not- withstanding. Contracts must not provide for rate exceeding established rates. Sec. 2. No such contract shall provide for the sale, rental, or distribution of any such water at any rate exceeding the established rates fixed and regulated therefor by the board of supervisors of the proper counties, or fixed and established by such person; company, association, or corporation, as provided by law. What is a valuable and sufficient consideration. Sec. 3. Nothing in this act contained shall be construed to authorize or make valid any contract not made for a valuable consideration ; but an agreement on the part of such person, company, association, or corporation to sell, rent, or distribute any water to a consumer, without payment in advance therefor, or upon any other terms to which such consumer is not other- wise lawfully entitled, shall be deemed and taken to be a valu- able and sufficient consideration for such contract. Prior contracts not affected. Sec. 4. Nothing in this act contained shall affect any con- tract made prior to the time thai Hie hoard of supervisors li\ and establish the rates and regulations for and under which water shall be sold and supplied. Time act shall take effect. Sec. 5. This act shall take effect and be in force from and a Tier its passage. 714 STATUTES AT LARGE. An act to provide for the recordation of contracts and subscrip- tion agreements to stock in water users' associations, organ- ized in conformity with an act of congress, approved June 17, 1902, and to regulate recorders' fees for filing, recording and indexing same. Approved March 20, 1907 ; stats. 1907, p. 74!). The people of the State of California, represented in senate and assembly, do enact as folloivs: County recorders to accept certain books of water users' asso- ciations. Section 1. All county recorders in this state are hereby authorized and directed to accept from any incorporated water users' association, organized under the laws of the State of Cali- fornia for the purpose of securing the benefits of an act of con- gress approved June 17, l'JOU, known as the "Reclamation Act,'' books containing printed copies of agreements with the United States, or with such water users' association, in relation to the lands affected by the projects provided for by said act, and copies of blank forms of subscription agreements to the capital stock of .such water users' associations, or the transfer thereof, or other documents necessary to be recorded by such associa- tions and to use such form books or such forin blanks for the purpose of recording the same; and recorders shall charge for filing, recording and indexing such documents, papers, writings or contracts the .sum of twenty-five cents for each document. Time act shall take effect. Sec. 2. This act shall take effect immediately. STATUTES REPEALED BY THE CODE. 715 CORPORATION LEGISLATION ENACTED PRIOR TO ESTABLISHMENT OE THE CODES, AND PROVISIONS OE CIVIL CODE EOR REPEAL OF EXISTING STATUTES. An act to establish a Civil Code. Approved March 21, 1872. Sec. 2. When this code takes effect. 2 0. Effect of repeal. 2 88. Existing corporations not affected. When this code takes effect. Sec. 2. This code takes effect at twelve o'clock noon on the first day of January, eighteen hundred and seventy-three. Effect of repeal. Sec. 20. No statute, law. or rule is continued in force because it is consistent with the provisions of this code on the same subject; but in all cases provided for by this code, all statutes, laws, and rules heretofore in force in this state, whether consistent or not with the provisions of this code, unlrss expressly continued in force by it. are repealed or abrogated. This repeal or abrogation does not revive any former law heretofore repealed, nor does it affect any right already existing or accrued, or any action or proceeding already taken, except as in this code provided. Similar provisions: See Pol. C. § 18 and Code Civ. Proc. S 18. Existing corporations not affected. Sec. 288. No corporation formed or existing before twelve o'clock noon, of the day upon which this code takes effect, is affected by the provisions of part IV of division first of this, code, unless such corporation elects to continue its existence under it as provided in section 287; but the laws under which such corporations were formed and exist are applicable to all such corporations, and are repealed, subject to the provisions of this section. Note. — S 2Ss. in the case of Market Street Ry. Co. vs. Hell- man (109 Cal. p. 571), the opinion written by Supreme Court i L6 LEGISLATION PRIOB TO THE CODES. Commissioner Searls and concurred in by Commissioners Haynes and Britt (decision of the court in accordance therewith. Justices McFarland, Van Fleet, Garoutte, Henshaw, and Chief Justice Beatty), reads as follows, after quoting section 288, Civil Code: "The codes when adopted constituted a compre- hensive system of laws, and repealed all existing statutes not specially saved from their operation. To save existing corpora- tions from annihilation we may fairly presume was the para- mount object of the legislature. Hence this section (288). But the latter clause of the same section throws light upon the more general declaration of the first clause. It is as follows : 'But the laws under which such corporations were formed and exist are applicable to all such corporations, and are repealed, subject to the provisions of this section.' "Now the laws under which corporations were formed and r.iistcd constituted but a small portion of the whole body of laws which related to and controlled corporate action. As only those laws under which corporations were formed and existed were saved, it must follow that the residue of such laws were repealed, whether consistent with the code or not." * * * In the case of Samuel G. Murphy, respondent, vs. Pacific Bank, appellant (11!) Cal. p. 384), the opinion written by Supreme Court Commissioner Haynes and concurred in by Supreme Court Commissioners Chipman and Belcher, decision of the court in accordance therewith, concurred in by Justices Garoutte, Har- rison, and McFarland, reads as follows (referring to an act to provide for the formation of corporations for the accumulation and investment of funds and savings, stats. 1862, p. 199, chap. 187): * * * "It is further contended by respondent that tne act of 1862 was repealed by section 288 of the Civil Code. That said act was repealed so far that new corporations could not be formed under it there is no doubt ; but, so far as corpora- tions theretofore formed under it were concerned, it remained in force, not only so far as might be necessary to sustain their existence as corporations, but to fix their character, define their powers, duties, obligations, and liabilities, except in so tar as these were modified, altered or repealed by inconsistent code provisions relating to such corporations." * * * See, also : Spring Valley Water Works vs. Bryant, 52 Cal. 132; Estate of Eastman, 60 Cal. 308 ; Robinson vs. Southern Pacific Co., 105 Cal. 526 ; McGowan vs. McDonald, 111 Cal. 57 ; People ex rel. Robt. Wawjh, respondent, vs. Auburn and Yankee Jim's L'umpike Co., appellant, 122 Cal. 335. STATUTES REPEALED BY THE COPE. 717 STATUTES REPEALED BY THE CODES. [Page and chapter numbers refer to the page and chapter of the statutes of California of any given year.l 1850. Page. Chap. -~'> 111 An act to provide for the incorporation of col- leges. Amended 1855, p. 110 ; supplemented L863, p. 775; further amended 1867-8. pp. GO, 21S; 1869-70, p. 410: further supplemented 1871-2, p. 10; this supplementary act amended 1873-4, p. 85. :!17 12S An act concerning corporations. Sec. 174 re- pealer! 1851, p. 424; act amended 1851, p. i-<<: ;ici repealed L851, p. 443, chap. lis. see. ,']] ; amended 1852, p. 168; extended 1852, p. 171 : chap. V repealed 1853, p. 02; chap. IV re- pealed 1853, p. 176; amended 1853, pp. 140, 274; 1854, pp. 53, 54; extended 1857. p. 75; amended and supplemented 1857, p. 171 ; amendment of 1S53, p. 274, supplemented 1857, p. 208 ; original act extended 1858, p. 57 ; this extending act amended and supplemented 1858. p. 204 ; original act again amended 1850, p. 87 ; 1861, p. S4; supplemented 18G2, p. 17; further amended 1802, pp. 110, 125; 1863, pp. 34, 717. 766; supplemented 1865-6, p. 23; partially repealed 1805-6, p. 748 : further amended 1S60-70, pp. 40, 402; supplemented 1S71-2, p. 443; this supplemental act amended 1875-6, p. 730 : act of 1871-2, p. 443. declared uncon- stitutional in Chollar Mng. Co. vs. Wilson. (10 Cal. 374. 1851. 133 118 An act to provide for the incorporation of rail- road companies. Supplemented 1852, p. 172 ; repealed 1853, p. 114. (See, further, act of 1853, p. 99.) 523 138 An act to provide for the incorporation of mutual insurance companies. Partially repealed 1865-6, p. 749. i IS LEGISLATION PRTOR TO THE CODES. 1852. Page. Chap. 171 98 An act l<> provide for the incorporation of water companies. (Extending act of 1850, chap. 128.) See, further, act of 1858, p. 218. 172 100 An act concerning the Independent Order of Odd Fellows. Amended 1856, p. 12.">. 1853. 87 65 An acl to provide for the formation of corpora- tions for certain purposes (manufacturing, mining, mechanical, mercantile, wharfing, dock- ing, or chemical). Amended 1855, p. 205; supplemented 1S57, p. 121; extended IS5S, p. 218 : amended and supplemented 1S58, p. 133 : 1859, p. !>:!; amended ISC,;!. p. 736; 1863-4, p. 149; amended and supplemented 1S(i!l-7<(. PP. 132, 364; made applicable 1869-70, p. 822; amended 1S71-2, p. 526. '.)'.) 72 An act to provide for the incorporation of rail- road companies. Amended 1854, p. 82; 1855. p. 100; 1856, p. 89 ; supplemented 1857, p. 197 ; supplemented and amended 1858, pp. .">17, 326; repealed 1861, p. f 1861, p. 607. I 111 7."! An act for the incorporation of wagon-road com- panies. Amended 1856, p. 71. IP) 92 An act to amend an act concerning corporations. (1850, chap. 128). Provides for Masonic cor- porations. 1.09 121 An act to authorize the formation of corporations for the construction of plank or turnpike roads. Amended 1854, p. 74; supplemented and amended 1857, pp. 171, 280; sec. 34 repealed 185S, p. 14-"; partially repealed 1858, p. 265. 274 lT.'i An act to amend an acl relating to corporations (1850, chap. 128). Provides for the forma- tion of corporations for the purpose of erecting (did Fellows' halls. Supplemented 1857, p. 208; extended 1867-8, p. 201. STATUTES REPEALED BY THE CODE. 719 1855. Page. Chap. 128 105 An act prohibiting any person or persons, asso- ciation, company or corporation, from exercis- ing the privileges of hanking or creating paper to circulate as money. 1857. 75 80 An act to further extend the act concerning cor- porations, passed April 22. 1850 (chap. L28). Provides for benevolent and cemetery associa- I ions. 1858. 57 C>s An acl to further extend I lie ad concerning cor- porations, passed April 22. 1850 (chap 128). Amended and supplemented 185S, p. 264. Pro- vides further for benevolent associations. 21 S 262 An act for the incorporation of water companies. Amended 1861, p. 22S. Extends act of 1S53, providing for formation of corpora I ions for certain purposes. 1859. 1"4 lid An act concerning agricultural societies. Amended 1862, p. :!7 : 1869-70, p. 31; 1X77-8, ]». 84. - t >'-'> 262 Authorizing counties to become stockholders in railroad companies. Amended I860, p. 20S : repealed by Constitution of California, 1S79, art. IV. sec. 31. 281 267 An acl to authorize the incorporation of rural cemetery associations. Amended 1863-4, p. 12 ; 1891, ip. 264; supplemented 1899, p. 36. (For copy of act see Appendix, under head "Ceme- teries." ( 309 287 An acl for the protection of gas lighl companies. 1861. 11 51 An acl in reference to corporations organized in this slate for the purpose of mining out of this state. 720 LEGISLATION PRIOR TO THE CODES. 1861 — Continued. Page. Chap. 533 485 567 503 An act for the protection of water companies. An act to authorize the formation of corporations to provide the members thereof with home- steads, or lots of land, suitable for homesteads. Supplemented 1863-4, p. 4!>2 ; amended 1867-8, p. 539; 1809-70, p. 474; supplemented 1873-4, p. 525. 607 532 An act to provide for the incorporation of rail- mail companies, and the management of the affairs thereof, and other matters relating thereto. Amended 1S62, pp. 498, 547; 1863, p. 610; 1865-6, p. 310; amendatory act of 1863 amended 1867-8, p. 705 : original acl further amended 1869-70, p. ~>77. 1862. lit!) 1X7 An act to provide for the formation of corporations for the accumulation and investment of funds and savings. Amended 1863-4, pp. 158, 531 ; 1865-6, p. 626; supplemented 1867-8, p. 459; amended 1869-70, p. 130; made applicable 1869-70. p. 524; further amended 1871-2, p. 132. 243 227 An act providing for a tax on foreign insur- ance companies doing business in this state. Amended and supplemented 1803-4, pp. 131. 394; partially repealed 1807-S. p. 330; made applicable and partially repealed 1S67-8, p. 341. 28S 262 An act providing for regulation of the telegraph, and to secure secrecy and fidelity in the trans- mission of telegraphic messages. Amended 1863-4, p. 231'. 540 417 An act to authorize the incorporation of canal companies, and the construction of canals. Amended 1865-6, pp. 53, (504 ; supplemented 1865-6, p. 786; amended 1867-8, p. 134. (See. further, act of 1869-70, p. 660; supplemented 1871-2, p. 732.) STATUTES REPEALED BY THE CODES. 721 Page. Chap. 1863 - 34 32 An act amendatory of an act concerning corpora- tions. (1850, chap. 12S.) Provides for incor- poration of California Pioneers. 101 94 An act concerning the Independent Order of Good Templars. Granted corporate powers under act of 1850, chap. 128. 290 215 An act concerning street railroads. Provides penalty for overcharge. <>24 404 An act in reference to library associations. Pro- visions for incorporation, etc. ; amended 1869- 70, p. 36G. 1863-4. 70 70 An act authorizing mining companies or corpora- tions to change their principal place of business. 303 295 An act validating and legalizing defective articles or certificates of incorporation. 429 379 An act authorizing mining corporations to estab- lish transfer agencies in other states. 1865-6. 458 370 An act concerning assessments upon stock of cor- porations. Supplemented 1869-70, p. 229. 469 386 An act to provide for the formation of chambers of commerce, boards of trade, mechanics insti- tutes, and other kindred protective associa- tions. Amended 1867-8, p. 5 ; amendatory act amended 1885, p. 76. 743 543 An act relating to fire and marine insurance com- panies. Sections 11 and 12 repealed 1867-8, p. 330. 752 546 An act to provide for the incorporation of mutual insurance companies for the insurance of life and health, and against accidents. Sec. 14 repealed 1867-8, p. 330 ; act amended 1867-8, p. 661 ; 1880, p. 229. 1867-8. 201 208 An act concerning the Ancient Jewish Order of Kesher shel Barsel (extending act of 1853, p. 274, chap. 175). 31— CL 71 72 107 116 132 138 722 LEGISLATION PRIOR TO THE CODES. 1867-8— Continued. Page. Chap. 204 214 An act to provide for the incorporation of such institutions of learning, science and art, as may be established by the state. 310 288 An act concerning the Independent Order of B'nai B'rith (extending act of 1853, p. 274, chap. 175). 323 296 An act prescribing certain conditions for the transaction of insurance business in the State of California. Supplemented 1869-70, p. 321. 330 300 An act creating the office of insurance commis- sioner. 1869-70. An act to authorize the incorporation of yacht clubs. An act relating to certificates of incorporation. Amendment of articles, etc. An act amendatory of and supplemental to an act to provide for the formation of corporations for certain purposes. (Stats. 1853, p. 87, chap. 65.) 229 165 An act supplemental to an act concerning assess- ments on stock of corporations. (Stats. 1865-6, p. 458, chap. 376.) 321 221 An act supplemental to an act prescribing certain conditions for the transaction of insurance business. (Stats. 1867-8, p. 323, chap. 296.) 304 254 An act supplemental to an act to provide for the formation of corporations for certain purposes. (Stats. 1853, p. 87, chap. 65.) 481 360 An act concerning street railroads, franchises, etc. Amended 1869-70, p. 780 ; 1871-2, p. 515. 523 380 An act to provide for the formation of corpora- tions for the accumulation of funds and savings, and the direct promotion of manufacturing and mechanic arts, agriculture, and mining. 660 454 An act to authorize the incorporation of canal companies, and to provide for the construction of canals and ditches. Supplemented 1871-2, p. 732. STATUTES REPEALED BY THE CODES. 723 1869-70 — Continued. Page. Chap. 720 497 An act concerning corporations for charitable and beneficial purposes. Provides for incorpo- ration of Improved Order of Red Men, or similar societies. 822 553 An act to provide for the formation of corpora- tions for certain purposes. Trading, manu- facturing, mechanical or other lawful business or purposes! 859 SCO An act to provide for the official valuation of life insurance policies. Amended 1S71-2, p. 97 ; amendatory act repealed 1877-8, amendments to codes, p. 83. 88] 578 An act concerning foreign corporations. Designa- tion of agent, etc. In many respects super- seded by act passed 1871-2, p. 820, chap. 5G0, as amended by act of 1889, p. 111. which act was superseded by Civ. C. sees. 405, 400 as adopted in 1905. SX.'i .ISO An act to provide for the construction and main- tenance of toll roads within the State of Cali- fornia. STATUTES CONTINUED IN FORCE. At the time of the adoption of the codes the following statutes affecting corporations were continued in force by special enact- ment (Penal Code, section 23. subdivisions 8 and 20, and Political Code, section 19, subdivisions 8 and 20). Page. Chap. 1867-8. 004 454 An act for the more effectual prevention of cruelty to animals, approved March 30, 18GS. Amended 1S71-2, p. 393; repealed 1873-4, p. 502. 1869-70. 815 547 An act concerning gas companies (franchises, etc.). Superseded and in effect repealed by act of 1895, p. 191, chap. 109, which act was amended 1897, p. 210; repealed 1903, p. 32. See, also, sec. 19, art. XI, Constitution, as amended in 1884. f'24 FORMS AND PRECEDENTS. FORMS AND PRECEDENTS FOR USE OF CORPORATIONS. (Whenever the word "county" occurs, if it applies to San Francisco it should read "city and county.") CERTIFICATE OF ELECTION TOICONTINUE EXISTENCE UNDER SECTION 287 OF THE CIVIL CODE. (Applies to corporations existing January 1, 1873.) We, the undersigned, directors of the and the secretary of the same, do hereby certify : That the was a corporation existing on the day of , , and formed under the laws of the State of California, and is still existing ; That at a regular meeting of the directors of said corporation held on the day of , , at the hour of . . . o'clock in the of that day, at the office or principal place of business of said corporation in , in said state, at which meeting all the directors of said corpo- ration were present and voted, said directors and said corpora- tion then and there, by the unanimous vote of all the directors of said corporation, made an election and all said directors then and there unanimously resolved to continue the existence of said corporation, the , under the provisions of the Civil Code of the State of California applicable thereto (approved March 21st, 1872) and the statutes amendatory thereof and supplemental thereto. In Witness Whereof, we, the said directors and said secretary, have hereunto set our hands and affixed the seal of said corporation, this. . . .day of [corporate SEAL.] Directors. Secretary. CONTINUANCE OF EXISTENCE UNDEB CODES. <_•> Note. — Continuance of existence under the code may also be effected if voted for by stockholders representing a majority of the capital stock, or by a majority of the members, or by the directors if authorized by the written consent of that number of such stockholders or members. (See Civ. C. § 2 87.) State of California, j gs County of \ On this day of. , A. D , before me, , a notary public in and for the said county of residing therein, duly commis- sioned and sworn, personally appeared known to me to be the persons whose names are subscribed to and who executed the within instrument or certificate, and acknowledged to me that they executed the same. In Witness Whereof, I have hereunto set my hand and affixed my official seal the day and year last above [seal.] written. Notary Public in and for the said county of , State of California. [Indorsed."] Filed in the office of the county clerk of the county of , State of California, this day of , A. D , County Clerk. By Deputy Clerk. State of California, j ss County of \ I , county clerk of the county of State of California, hereby certify the foregoing to be a full, true and correct copy of the original filed in my office on the day of , A. D Attest my hand and my official seal this day of [seal.] , A. D , County Clerk. By , Deputy Clerk. 26 FORMS AND PRECEDENTS. CERTIFICATE OF EXTENSION OF TERM OF CORPO- RATE EXISTENCE UNDER SECTION 401 OF THE CIVIL CODE. (As adopted in 1905. See Civ. C. see. 401, p. 88, ante.) At a meeting of the stockholders of , a corporation, held on the day of , A. D at the principal place of business of said corporation at county of , State of California (said meeting having been expressly called by the directors of said corporation for considering the subject of extending the term of the corporate existence of said corporation), the following resolution, to wit : Resolved, That the hereby extends the term of its corporate existence from years, the period set forth in its original articles of incorporation, to the period of years from its formation. was offered by , seconded by , and was thereafterwards voted upon by the stockholders present at said meeting, and was voted for by [stockholders representing two thirds of the capital stock] [two thirds of the members] of said corporation and was carried; and we hereby certify that the foregoing is a full, true and correct statement of the proceedings of the said meeting upon such vote upon said resolution. [corporate Chairman of said meeting. seal. ] Secretary of said meeting. Approved : Members of the board of directors of said corporation and a majority thereof. N 0TE . — Extension can also be effected by written assent of two thirds of the members, or of stockholders representing two thirds of the capital stock, certified by the chairman and secre- tary of the meeting and a majority of the directors. EXTENSION OF CORPORATE EXISTENCE. 727 State of California, „ , V ss. County of ) On this day of A. D , before me, a notary public in and for the said county of , State of California, residing therein, duly commissioned and sworn, personally appeared known to me to be the chairman of the meeting of the stockholders of a corporation. held on the day of , A. D , as described in the within aud annexed instrument, whose name is subscribed to said instrument as such chairman, and known to me to be the secretary of said meeting of said stockholders of said company, whose name is subscribed to said instrument as such secretary, and they severally acknowledged to me that they executed said instrument as such chairman and secretary respectively of said meeting of stockholders of said corporation ; and on the same day personally appeared before me ; known to me to be the directors of said and lo be and to constitute a majority of the directors of said cor- poration, whose names are subscribed to said instrument as such directors, and as a majority thereof, and they severally acknowl- edged to me that they executed said instrument as directors of said In Witness Whereof, I have hereunto set my hand and affixed my official seal at my office in the county of State of California, the [SEAL,] day and year in this certificate last above written. Notary 1'ublic in and for the county of Stale of < Jalifornia. [Indorsed.] filed in the office of the county clerk of the county of State of ( Jalifornia, this day of \. I) County Clerk. By Deputy Clerk. 728 forms and precedents. State of California, ss. County of I , county clerk of said county, do hereby certify the foregoing to be a full, true and correct copy of the certificate of extension of term of corporate exist- ence of , a corporation, on file in my office, and that I have carefully compared said copy with the original. In Witness Whereof, I have hereunto set my hand and [seal.] aifixed my official seal, this day of , A. D , Clerk. By , Deputy Clerk. CERTIFICATE OF EXTENSION OF CORPORATE EXIST- ENCE UNDER SECTION 7, ARTICLE XII, CONSTITUTION. We, the undersigned, president and secretary, and we, the undersigned, a majority of the directors of the do hereby certify : That the is a corporation incorporated on the day of A. D. ..... for a period of years, and formed under the laws of the State of California, and is still existing; That at a [regular meeting] [called meeting] of the stock- holders of said corporation [called for the express purpose of considering the subject of the extension of its corporate exist- ence] held on the day of , A. I) a I the office or principal place of business of said corporation at in said state, at which meeting | stockholders representing two thirds of the capital stock] [two thirds of the members] of said corporation were present and voted, said stockholders and said corporation then and there, by the affirmative vote of [stockholders representing two thirds of the capital stock] [two thirds of the members] of said corpora- tion did then and there resolve to extend the existence of said corporation, the , under the provisions of section 7, article XII, of the constitution of the EXTENSION OF CORPORATE EXISTENCE. 729 State of California, for a period of years from and after the day of , A. D In Witness Whereof, wo, the said president and said secretary, and we, the said directors of said cor- | corporate poration. have hereunto set our hands and affixed seal. | the seal of said corporation, this.... day of , A. I) President of said corporation. Secretary of said corporation. Approved : Members of the board of directors of said corporation, and a majority thereof. Note. — Extension under this head can also be effected by written assent of stockholders representing two thirds of the capital stock or of two thirds of the members of the corporation, attested by the president and secretary and directors, as above. State of California, ) oo y ss. County of \ On this day of , A. D , before me, , a notary public in and for the said county of , State of California, residing therein, duly commissioned and sworn, personally appeared known to me to be the president of a corporation described in the within and annexed instrument, whose name is subscribed to said instrument as such president, and , known to me to be the secretary of said , whose name is subscribed to said instrument as such secretary, and they severally acknowledged to me that they executed said instrument as president and secretary respectively of said cor- poration ; and on the same day personally appeared before me, T.*»0 FORMS AM) PRECEDENTS. known to me to he the directors of said , and to be and to constitute a majority of th<* directors of said corporation, whose names are subscribed to said instrument as such directors, and as a majority thereof, and they severally acknowledged to me that they executed said instrument as di reel ors of said /// Witness Whereof, I have hereunto set my hand and affixed my official seal at my office in the county of State of California, the [SEAL.] day and year in this certificate last above written. Notary Public in and for the county of State of California. [Indorsed.'] Filed in the office of the county clerk of the county of State of California, this day of A. D County Clerk. By Deputy Clerk. State ok California, I - s.s. < !ounty of ) I ? county clerk of the county of State of California, hereby certify the foregoing to be a full, true and correct copy of the original certificate of extension of corporate existence of , a corporation. tiled in my office on the day of A. D Attest my hand and my official seal this day of | seat..] \- 1> County Clerk. By 1 >eputy < Merk. INCORPORATION WITH CAPITAL STOCK. CORPORATIONS FORMED WITH CAPITAL STOCK. ARTICLES OF INCORPORATION OF THE Know all Men by These Presents: That we, the undersigned, a majority of whom are citizens and residents of the State of California, have this day volun- tarily associated ourselves together for the purpose of forming a corporation under the laws of the State of California. And We Hereby Certify, First: That the name of said corporation shall be Second : That the purposes for which it is formed are Third: That the place where the principal business of said corporation is to be transacted is Fourth: That the term for which said corporation is to exist is years from and a tier the date of its incor- poration. Fifth : That the number of directors or trustees of said cor- poration shall be and that the names and residences of the directors or trustees who are appointed for the first year and to serve until the election and qualification of such officers, are as follows, to wit : NAMES. WlliiSE RESIDENCE IS AT. i..'- FORMS AND PRECEDENTS. * Sixth: That the amount of the capital stock of said cor- poration is dollars, and the number of shares into which it is divided is of the par value of dollars each. Seventh : That the amount of said capital stock which has been actually subscribed is dollars. and the following are the names of the persons by whom the same has been subscribed, to wit : NAMES OF SUBSCRIBERS. NO. OF SHARES. AMOUNT. f In Witness Whereof, We have hereunto set our hand and seals, this day of , A. D. 19. . Signed and Sealed in the Presence of: .[Seal.] . [Seal.] . [Seal.] . [Seal.] . [Seal.] . [Seal.] [Seal.] * See section 290, subdivision 6, Civil Code, for statement articles must contain where shares are classified into preferred and common stock. ■j- All directors should sign and acknowledge. incorporation wttii capital stock. 733 State of California, ) v SS. County of } On this day of , A. D , before me, a notary public in and for said county, residing therein, duly commissioned and sworn, per- sonally appeared known to me to be the person. . whose name subscribed to the foregoing instrument, and ..he., duly acknowledged to me that . .he. . executed the same. In Witness Whereof, I have hereunto set my hand and affixed my official seal, at my office in said [Seal.] county, the day and year in this cer- tificate last above written. Notary Public in and for the county of , State of California. [Indorsed.] Filed in the office of the county clerk of the county of this day of A. D County Clerk. By , Deputy Clerk. State of California, j y ss. County of J I, , county clerk of the county of State of California, do hereby certify the within to be a full, true, and correct copy of articles of incorporation of as remains on file in this office. In Witness Whereof, I have hereunto set my hand and affixed my official seal, this day of , A. D I SEAL. | , Clerk. By , Deputy Clerk. .°>4 FORMS AND PBECEDENTS. CORPORATIONS FORMED WITHOUT CAPITAL STOCK. ARTICLES OF INCORPORATION OF THE Know oil Men by These Presents: That we. the undersigned, citizens and residents of the Stal" of California, do hereby voluntarily associate ourselves together (ny the purpose of incorporating a private corporation under Hie laws of the State of California. And We do Hereby Certify, FlBST : That the name of said corporation shall he Second : That the purposes for which said corporation is formed are Thibd: That the place where the principal business of'said corporation is to be transacted is Fourth: That the term for which said corporation is to exist is years, from and after the date of its incorporation. Fifth : That the number of directors of said corporation shall be , and the names and residences of the directors who are appointed for the first year, and to serve until the election of such officers, and their qualification, are as follows, to wit : NAMES. RESIDENCES. 1 INCORPORATION WITHOUT CAPITAL STOCK. 7:!.". That on the day of A. 1> in the county of in said State of California, an election was held for directors; that said election was held in accordance with a resolution adopted at the last prior regular meeting of said association, held on the day of A. I> in the office of said association at State of California ; that notice of such meeting for the election of directors was given to the members of said association; that a majority of the members of said association who were present voted at such election, and that the result thereof was that the directors hereinbefore named were declared duly elected. /// Witness Whereof, We have hereunto set our hands and seals, this day of A. D [Seal.] [Seal.] [Seal.] [Seat,.] [Seal.] [Seal.] [Seal.] [Seal. | [Seal. | [Seal.] [Seal.] Signed and Sealed in the Presence of: State of California, ) County of \ and being duly sworn, depose and say that they were the officers that conducted the election for directors above mentioned; that said election was held, and that the time and place of said election and the result thereof, as above set forth, art 1 true of their own knowledge. Subscribed and sworn to before me. this. . . .day of | a. d / ■•■;•■• ( hair man. Notary Public in and for I ' [seal. ] the " county of ) Secretary. State of California. 73*; forms and precedents. State of California, ss. County of On this day of V. D , before me, a notary public in and for said county, residing therein, duly commissioned and sworn, personally appeared known to me to be the person., whose name subscribed to the foregoing instrument, and .... duly acknowledged to me that .... executed the same. In Witness Whereof, I have hereunto set my hand and affixed my official seal, at my office in said county, [seal.] the day and year in this certificate last above written. Notary Public in and for the county of , State of California. [Indorsed,'] Filed in the office of the county clerk of the countv of this day of , A. D , County Clerk. By , Deputy Clerk. State of California, County of I, , county clerk of the county of , State of California, do hereby certify the within to be a full, true and correct copy of articles of incorporation of as remains on file in this office. In Witness Whereof, I have hereunto set my hand and affixed my official seal this day f seal.1 of , A. D , Clerk. By , Deputy Clerk. CO-OPERATIVE ASSOCIATIONS. 737 CO-OPERATIVE ASSOCIATIONS. ARTICLES OF INCORPORATION. OF THE Know all Men by These Presents: That we, the undersigned, a majority of whom are citizens and residents of the State of California, have this day voluntarily associated ourselves together for the purpose of forming a cooperative association under the provisions of sections 6536, 653c, and 653d of the Civil Code of the State of California. And We Hereby Certify, First : That the name of said corporation shall be Second : That the purposes for which said corporation is formed are Third : That the place where the principal business of said corporation is to be transacted is Fourth : That the term for which said corporation is tu exist is years from and after the date of its incorporation. Fifth: That the number of directors of said corporation shall be and the following are the names and residences of those who are appointed for the first year: NAMES. RESIDENCES. 138 FORMS AND PRECEDENTS. Sixth : That the amount which each member shall pay upon admission, as membership fee. is dollars, that the parties signing these articles have actually paid said sum of dollars each as membership fee. and that the right of each and every member shall be equal. In Witness Whereof, We have hereunto set our hands and seals, this day of A. 1 » [Ska [Seal.1 [Seat. [Seal.' [Seal.; [Seal.; [Seal.' [Seai [Seal.' [Seal.1 [Seai.1 State of California. < County of \ On this day of V. I > be! me a notary public in and for the county of residing therein, duly commissioned and sworn, personally appeared known to me to be the person. . whose name subscribed to the within instrument, and .... acknowledged to me that .... ited the same. In Witness Whereof, I have hereunto set my hand and affixed my official seal the day and year in this eer- [SEAL.] tificate last above written. Notary Public in and for the county of State of California. [Indorsed.] Filed in the office of the county clerk of the county of State of California, this day of A. D County Clerk. By I teputy Clerk. co-operative associations. 739 State of California, } County of j I county clerk of the county of State of California, do hereby certify the within to be a full, true, and correct copy of articles of incorporation of as remains on file in this office. In "Witness Whereof, I have hereunto set iuv hand and affixed my official seal this day of A. D [seal. ] , Clerk. By , Deputy Clerk. CERTIFICATE OF CREATION OF BONDED INDEBTEDNESS. State of California. ) > ss. County of \ We , president of , a corporation duly incorporated, organized, and existing under and by virtue of the laws of the State of California, and chairman of the i ting of the stockholders thereof hereinafter mentioned, and , secretary of said corporation and secretary of said meeting of the stockholders thereof hereinafter mentioned ; and we. the undersigned being a majority of the directors of said a corporation, do hereby certify and declare as follows : That is and was during all the times hereinafter mentioned a corporation duly incor- porated, organized, and existing under and by virtue of the laws of the State of California, and having its office and principal place of business at , State of California, as by its articles of incorporation, duly filed in the office of the county clerk of said and in the office of the secretary of state of the State of Cali- fornia, will more fully appear; 740 FORMS AND PRECEDENTS. That the amount of the capital stock of the said corporation authorized by its articles of incorporation is dollars, divided into shares of the par value of dollars each ; that of said shares shares have been subscribed for and are issued and outstanding ; That the number of directors of said corporation as provided by its articles of incorporation is , and said constitute a majority of said board of directors ; That said is and was at all the times herein mentioned the president of said corporation, and is and was at all the times herein mentioned the secretary of said corporation ; That at a meeting of the board of directors of said duly called, noticed and held at the office of the company, room , California, on the day of , , at which meeting of said board all the members thereof were present and con- curred therein, the following resolution was adopted by the unanimous vote of all the directors of said corporation, viz. : "Whereas, The directors of a corporation created, organized, and existing under the laws of the State of California, deem it expedient to create a bonded indebtedness of the corporation to the amount of in United States gold coin, for the purpose of providing moneys to pay the existing indebtedness of the corpo- ration and acquiring property to be used in the business of the corporation, and in extending the business and developing the properties of the corporation, and for legitimate and necessary purposes, which bonded indebtedness shall be secured by a mortgage or deed of trust covering all of the property, both real and personal, now owned by the corporation, or which it may hereafter acquire. Now, therefore, be it Resolved, That a meeting of the stockholders of this corpo- ration be, and the same is hereby called, and will be held at the office of the corporation, room , State of California (that being the office and principal place of business of the corporation, and the build- ing where the board of directors usually meet) on the day of at the hour of .... o'clock ..m., for the purpose of considering and acting upon a proposition to create a bonded indebtedness to the CREATION OF BONDED INDEBTEDNESS. 741 amount of , United States gold coin, for the purpose of providing moneys to pay the existing indebtedness of the corporation, and acquiring property to be used in the business of the corporation, and in extending the business and developing the properties of the corporation, and for legitimate and necessary purposes, and to secure the same by ;i mortgage or deed of trust covering all of the property, both real and personal, now owned by the corporation or which it may hereafter acquire ; and that the secretary of the corporation cause notice of said meeting to be given to the stockholders of said corporation, by publication in a news- paper printed and published in , State of California, once a week for at least sixty days prior to the said day of , which notice shall specify the object of the meeting, and shall state the amount of the bonded indebtedness which it is proposed to create and shall be in substantially the following form : "NOTICE to the stockholders of the is hereby given in pursuance of a resolution of the board of directors of said corporation, unanimously adopted at a meeting of said board, held at the office of the company, in the , State of California, on the day of a meeting of the stockholders of the will be held at the office of the company, room , State of Cali- fornia (the same being the principal place of business of said corporation and the building where said board of directors usu- ally meet) , on , the day of at the hour of .... o'clock . . m., for the purpose of considering and acting upon a proposition to create a bonded indebtedness of said corporation, to the amount of , in United States gold coin, for the purpose of providing moneys to pay the existing indebtedness of the corpo- ration and in extending the business and developing the prop- erties of the corporation, and for legitimate and necessary purposes, such bonded indebtedness to be secured by a mortgage or deed of trust upon all the property now owned by the corpo- ration, or which it may hereafter acquire. "By order of the board of directors. "Secretary of the " And further Resolved, That in addition to such notice by pub- lication the secretary of this corporation shall address a like notice to each of the stockholders of this corporation, whose names appear on the corporation's books, as sufficiently ad- dressed, at his place of residence, if known, and if not known, 742 FOEMS AND PRECEDENTS. then at the principal place of business of the corporation, which notice shall be mailed to such stockholders at least thirty (30) days before the day appointed for such meeting. And we further certify that the by-laws of do not prescribe, and never have prescribed, the newspaper in which notices of meetings of its stockholders or directors are to be published ; And we do further certify that, in pursuance of the foregoing resolution, the said , the secretary of said corporation, caused to be published in , which is, and was at all times herein mentioned, a newspaper of general circulation printed and published daily in said , State of California, a notice whereof the following is a copy [insert printed copy of newspaper notice]. That said publication of said notice was commenced in said newspaper on , and the same was published in the regular issues of said newspaper on the following days, to wit : being once a week for at least sixty (60) days prior to , t ho day of , the day fixed for said stockholders' meeting, and that the affidavit of the due publication of said notice, marked exhibit "A," is hereto at- tached and made a part hereof ; And we further certify that on the day of a true copy of said notice was, by the secretary of said corporation, addressed and mailed to each of the stockholders of said corporation whose names appeared upon the books of the corporation as sufficiently addressed, and to every stockholder of the corporation whose name appeared upon the books of the corporation as sufficiently addressed from and including the said day of , to and including the day of , Said notices were mailed to said stockholders by depositing the same, addressed to each of said stockholders at his place of residence, in the United States post office in , State of California, with the postage thereon fully prepaid : that at the time said notices were so addressed and mailed to such stockholders, the name of each stockholder of the corpo- ration appeared on the books of the corporation sufficiently addressed, and the residence of each stockholder was known to CREATION OF BONDED INDEBTEDNESS. 743 said secretary ; and that the affidavit of said the secretary of said corporation, marked exhibit "B," showing such mailing of such notices, is hereto attached and made a part hereof ; And we do further certify and declare that in pursuance of said resolution and notice, and on the day appointed therein, to wit : on , the day of at the hour of o'clock — M. of that day, at the office of said corporation, room State of California (the same being the principal place of busi- ness of the corporation, and being the building where the board of directors usually meet), said meeting of the stock- holders of duly took place and was held ; that the said meeting was called to order by , the president of said corpo- ration, and on motion duly made, seconded and carried, the said , president of said corporation. was unanimously elected chairman of the meeting and acted as such chairman, and on motion duly made, seconded and carried, , the secretary of said corporation. was unanimously elected secretary of said meeting and acted as such secretary ; And we do further certify and declare that at said stock- holders' meeting there were present, in person and represented by proxies in writing, duly filed with the secretary as required by the by-laws of the corporation, stockholders holding and representing upon the books of the company shares of the subscribed capital stock thereof; And we do further certify and declare that the following proceedings of said meeting of stockholders were then taken and had : The chairman stated that the meeting had been called by the board of directors of the corporation for the purpose of considering and acting upon a proposition to create a bonded indebtedness of said corporation to the amount of dollars, in United States gold coin, for the purpose of providing moneys to pay the existing indebtedness of the corporation and acquiring property to be used in the business of the corporation and in extending the business and developing the properties of the corporation and for legitimate and necessary purposes ; v 744 FOKMS AND PRECEDENTS. The secretary thereupon read the resolution of the board of directors adopted at the meeting of the board held on calling such meeting of stockholders, which resolution is hereinbefore set forth ; and also read the notice of the meeting, which notice is hereinabove set forth ; It having been shown that the publication and service of the notice of the meeting had been made in the manner and in all respects as required by law, the stockholders thereupon pro- ceeded to consider said proposition, and, after discussing and considering the same , a stockholder of the corporation, offered the following resolutions, and moved their adoption : Whereas, Heretofore, to wit : on the .... day of A. D , the board of directors of the a corporation, by resolution duly passed and adopted, by the unanimous vote of said board, all of the directors being present, ordered and called a meeting of the stockholders of the corporation to be held on this day of A. D at the hour of .... o'clock . . m. of this day, at the office of the corporation, room in the State of California (that being the principal place of business and the office of the corporation, and the building where the board of directors usually meet), for the object and purpose of then and there considering and acting upon a proposition to create a bonded indebtedness of the corporation to the amount of dollars, to the end and for the purpose of providing moneys to pay the existing indebtedness of the corporation and acquiring property to be used in the business of the corporation, and in extending the business and developing the properties of the cor- poration, and for legitimate and necessary purposes, which bonded indebtedness shall be secured by a mortgage or deed of trust covering all of the property, both real and personal, now owned by the corporation, and which it may hereafter acquire : and Whereas, In pursuance thereof, a notice of the time and place of said meeting, specifying the object of said meeting and the amount of the bonded indebtedness which it is proposed to create, has been published in , a newspaper printed and published daily in State of California, and designated therefor in said resolution of the board of directors ordering and calling said meeting, once a week for at least sixty (60) days prior to the date of said meet- ing, and, in addition to said notice by publication, the secretary of the corporation did address a like notice to each of- the stock- CREATION OF BONDED INDEBTEDNESS. 745 holders of the corporation at his place of residence, which notices, so addressed, were mailed, in the United States post office at , California, with the United States postage thereon fully prepaid, to each of the stockholders of the corpora- tion, more than thirty (30) days before the day appointed for such meeting, — all of which is now shown to have been done as required by law and the said resolution of the board of directors ; now, therefore, be it Resolved, That a bonded indebtedness of the , to the amount of dollars, in United States gold coin, be, and the same is, hereby authorized and created, for the purpose of providing moneys to pay the existing indebtedness of the corporation and acquiring property to be used in the business of the corporation, and in extending the business and developing the properties of the cor- poration, and for legitimate and necessary purposes; and be it further Resolved, That the bonded indebtedness hereby authorized and created shall be represented by bonds of this corporation, of the denomination of dollars each, bearing date and payable on the day of in the year : that said bonds shall bear interest at the rate of per cent per annum, from their date until paid, payable semi- annually, and shall have appropriate coupons attached for each interest payment ; and that both the principal and interest of said bonds shall be payable in United States gold coin, of the present standard of weight and fineness ; and be it further Resolved, That the board of directors, for the purpose of securing the payment of said bonds, and the interest thereon, be, and it is, hereby authorized, empowered, and directed to prepare, execute, acknowledge, and deliver, or to cause to be prepared, executed, acknowledged, and delivered, in the name and under the seal of this corporation, to the of as trustee, a mortgage or deed of trust covering all of the real and personal property, wheresoever situated, now owned by this corporation, and which it may here-' after acquire ; that each of said bonds shall bear a certificate signed by the trustee, certifying that the same is one of the series of bonds referred to in said mortgage or deed of trust, and that such mortgage or deed of trust and said bonds and coupons shall be made in such form and contain such provisions, terms and conditions, in all respects, as the board of directors may deem necessary, proper or expedient in the premises, or may authorize to be executed ; and be it further Resolved, That the said bonds and the whole thereof, be sold and disposed of by and under the direction of the board of direc- 32— cl 746 FORMS AND PRECEDENTS. tors, in such lots and parcels, and in such manner, and upon such terms as to the board shall seem proper ; and be it further Resolved, That the board of directors be, and it is hereby expressly authorized, empowered, and directed to do and perform each and every act, deed and thing whatsoever which to the said board of directors shall seem requisite, or necessary, or proper, to fully carry out the objects and intent of these resolutions, and to fully accomplish the purposes and objects for which said bonded indebtedness shall have been created and authorized. The motion to adopt said resolutions was seconded by , a stockholder of the corporation. The chairman put the question on the adoption of the resolu- tions, and the stockholders then proceeded to vote upon a call of the roll, by "ayes" and "noes," upon said motion to adopt the resolutions, and the following named stockholders, owning and holding respectively the number of shares of the subscribed capital stock of said corporation set opposite their several and respective names, voted in favor of the adoption of said resolu- tions, that is to say : being the unanimous vote in favor of the adoption of said reso- lutions by all the stockholders present and represented by proxy at said meeting. Whereupon, The chairman declared that the motion to adopt said resolutions had been unanimously carried, and that said resolutions had been passed and adopted by the vote of all stockholders present and represented by proxy at said meeting, namely, by stockholders representing shares of the subscribed capital stock of the corporation ; all of which appears of record in the minutes of said meeting of the board of directors of said corporation, and in the minutes of the meeting of the stockholders thereof, as recorded and preserved in its record book ; and we do further certify and declare that by the proceed- ings aforesaid a bonded indebtedness of , a corporation, has been created, and authorized to be created, to the amount in the aggregate of dollars, United States gold coin ; that the amount of stock rep- resented at said stockholders' meeting was shares of the par value of dollars each, aggregating dollars of par value ; that the vote by which said bonded indebtedness was created, accom- plished, and authorized, was a vote in favor thereof by stock- CREATION OF BONDED INDEBTEDNESS. 747 holders representing shares of the subscribed capital stock of the corporation, which is more than two thirds of the subscribed capital stock of said corporation. In Witness Whereof, We have hereunto set our hands and caused the corporate seal of said corporation to be hereunto affixed this day of , A. D Chairman of said meeting of stockholders of , and president of said corporation. | (i IKPORATE SEAL.] Secretary of said meeting of stockholders of , and secretary of said corporation. Directors. State of California, I County of \ On this day of , A. D , before me, , a notary public in and for the said county of , State of California, residing therein, duly commissioned and sworn, personally appeared , known to me to be the president of , a corporation described in the within and annexed instrument, and the chairman of the meet- ing of stockholders of said corporation, whose name is subscribed to said instrument as such chairman, and , known to me to be the secretary of said and the secretary of said meeting of said stockholders of said company, whose name is subscribed to said instrument as such secretary, and they severally acknowledged to me that they executed said instrument as such chairman and secretary respec- tively of said meeting of stockholders of said corporation, and as president and secretary respectively of said corporation ; and on the same day personally appeared before me, 74S FORMS AND PRECEDENTS. known to me to be the directors of said , whose names are subscribed to said instrument as such directors. and they severally acknowledged to me that they executed said insl rumen t as directors of said /// Witness Whereof, I have hereunto set my hand and affixed my official seal at my office in the county of , State of California, the [seal.] day and year in this certificate last above written'. Notary Public in and for the county of , Stale of California. EXHIBIT "A." State of California, ) County of ) of the said county of , being duly sworn, deposes and says, that he is a citizen of the United States; that he is and was at all times hereinafter mentioned, over twenty-one years of age ; and is competent to be a witness on the hearing of the matters mentioned in the annexed notice ; that lie has no interest whatsoever in the matters mentioned therein; and that he is and was during all the time embraced in the period of the publication herein mentioned, the principal clerk of the printers and publishers of , a newspaper printed and published daily in said , and has charge of all the advertisements in said newspaper; and that the of which the following is a printed copy [here insert printed copy of newspaper notice] has been published in the above-named newspaper, commencing (first insertion) , , and ending ( last insertion ) , .... , (both clays inclusive), and further sayeth not. Subscribed and sworn to before me, this. . . .day of , \ A. D / Notary Public in and for [seal.] the county of State of California. CREATION OF BONDED INDEBTEDNESS. 7t!) EXHIBIT "B." State of California, ) County of ) , being duly sworn, deposes and says : That he is, and was at all the times herein mentioned, the secretary of , a corporation created, organized and existing under the laws of the State of California, and having its office and principal place of business in , State of California ; that on the day of , , he addressed a true copy of the notice which is hereto affixed and made a part hereof to each one of the stockholders of whose names appeared on the company's books as stockholders from and including the day of , , to and including the said clay of , , at the respective addresses of said stockholders at their respective places of residence, and on said day of , deposited the same in the United States post office at , in said state, with the postage thereon fully prepaid ; that each of said notices was enclosed in a separate envelope, sealed, with the United States postage fully prepaid thereon, and the said respective places of residence and respective addresses of said stockholders appeared at said time upon the company's books and were known to affiant. Subscribed and sworn to before me, this. . . .day of . . . . A. D / Notary Public in and for I [seal.] the county of ,j State of California. ' [Indorsed.] Filed in the office of the county clerk of the county of Stale of California, this day of , A. D , County Clerk. By , Deputy Clerk. 750 forms and precedents. State of California, , ss. County of I, , county clerk of the county of , State of California, hereby certify the foregoing to be a full, true and correct copy of the original cer- tificate as to creation of bonded indebtedness of filed in my office on the day of , A. D Attest my hand and my official seal this day of [seal.] , A. D , County Clerk. By , Deputy Clerk. CERTIFICATE OF INCREASE OF CAPITAL STOCK. A special meeting of the stockholders of the , a corporation organized and existing under the laws of the State of California, was held at the office of said corporation, at room in the State of California (said being the principal place of business of said corporation, and said room being the office of said corpora- tion in said and the room where its board of directors usually meets), on , the day of , , at o'clock in the in accordance with the resolution and order of the board of directors of said corporation, calling said meeting, and the notices thereof given, addressed and mailed as hereinafter set forth. On motion duly made, seconded, and carried, was elected president of said meeting and on like motion, duly made, seconded, and carried, " was elected secretary of said meeting. The entire capital stock of said corporation was, on said day of , , dollars, divided into shares of dollars each, and the total number of subscribed shares of said corpora- tion was on said day, and now is, shares. There were present, in person, or by proxy, at said meeting the shareholders owning and holding subscribed INCREASE OF CAPITAL STOCK. 751 capital stock of said corporation. On motion duly made, sec- onded, and carried, the chairman caused the secretary to read the resolution of the board of directors calling said meeting of stockholders, which said resolution is in words and figures fol- lowing : Be it resolved and ordered that a meeting of the stockholders of the , a corporation, be called for, and held on , the day of at .... o'clock in the of that day, at the office of said corporation at room No in the , State of California ( said place of meeting being at the principal place of business of said corporation and at the building where the board of directors usually meet), for the purpose of considering and acting upon a proposition to increase the capital stock of said corporation from dollars divided into shares of the par value of dollars each, to dollars divided into shares of the par value of dollars each ; That notice of said meeting be published in a newspaper published in said , once a week for at least sixty days. That the secretary of said corporation is nereby directed to address and mail a notice of said meeting to each of the stock- holders of said corporation, in the manner prescribed by section 359 of the Civil Code of said State of California, at least thirty days before said day appointed for said meeting and that said notice be in the following form: "NOTICE TO STOCKHOLDERS OF "Notice is hereby given that, in pursuance of a resolution and order of the board of directors of the , a corporation organized and existing under the laws of the State of California, unanimously adopted at a regular meeting of said board, duly held on the day of at the office of said corporation, in , in said State of California, a meeting of the stockholders of said corporation is hereby called for and will be held at the office of said corporation, at room , in said (said place of meeting being at the principal place of business of said corporation and at the building where the board of directors usually meet), on the day of , , at ... o'clock in the of that day, for the purpose of considering and acting upon the proposition to increase the capital stock of said corporation from dollars divided into shares of the par value of dollars 752 FORMS AND PRECEDENTS. each, to dollars divided into shares of the par value of dollars each. "The amount to which it is proposed to increase the capital stock is dollars. "By order of the board of directors. "Dated "Secretary of " The by-laws of said corporation do not prescribe any news- paper in which notices of meeting of the corporation or its stock- holders or directors are to be published. The secretary there- upon read the following affidavits of himself and , to wit : AFFIDAVIT OF State of California, } V ss. County of j , being duly sworn, deposes and says that he is and at all the times hereinafter mentioned was a male citizen of the United States and over the age of twenty- one years; that he is, and for more than a year continuously last past has been, secretary of a corporation organized and existing under and by virtue of the laws of the State of California ; that on the day of , he addressed to each of the stockholders of said corporation whose names appear on the books of said company as sufficiently addressed, at his place of residence (the place of residence of each of said stockholders then and now being known to affiant) a notice of which the following is a true copy. [Here insert copy of newspaper notice.] And that on said day of , , he deposited in the United States post office in , county of , State of California, with postage fully prepaid, each and all of said notices addressed as aforesaid; that the stockholders to whom said notices were addressed and mailed as aforesaid, were, on said day of , , and now are, the stockholders of said corporation. Subscribed and sworn to before me, this. . . .day of , A. D Notary Public in and for [seal.] the county of , State of California. INCBEASE OF CAPITAL STOCK. 753 AFFIDAVIT OF State of California, ( County of ) , of , having been first duly sworn, deposes and says : That he is a citizen of the United States ; that he is and at all the times hereinafter mentioned was over twenty-one years of age and competent to be a witness on the hearing of the matters men- tioned in the printed notice hereinafter set forth ; that he has no interest whatsoever in the same ; that he is the principal clerk of the printers and publishers of a newspaper printed and published daily (Sundays and legal holidays excepted) in , State of Cali- fornia, and has charge of all the advertisements and notices published in said newspaper. That an advertisement of a notice to stockholders of of which the following is a printed copy [here insert printed copy of notice] was published in the above-named newspaper (Sundays and legal holidays excepted) for a period of once a week for at least sixty days and once a week for two months, on the follow- ing dates, to wit : Subscribed and sworn to \ before me, this. . . .day of J A. D ' Notary Public in and for [seal.] the comity of State of California. Thereupon, upon motion duly made, seconded and carried, it was by the meeting Resolved, That notice of this meeting has been given in accord- ance with the requirements of the laws of the State of California and that more than two thirds of all the capital stock of this" cor- poration is at this meeting represented and the owners thereof present, and that this meeting is competent to proceed with the transaction of the business for which it has been called. Thereupon, a motion was duly made, and seconded that the following resolution be adopted, to wit: Resolved by the stockholders of representing more than two thirds of all the subscribed capital stock of said corporation, in meeting duly assembled and called 754 FORMS AND PRECEDENTS. by the board of directors of said corporation, that said corpora- tion increase its capital stock from dollars divided into shares of the par value of dollars each, to dollars divided into shares of the par value of dollars each, and that the said capital stock of dollars be and the same is hereby increased to dollars divided into shares of the par value of dollars each ; that the cnairman and secretary of this stockholders' meeting and a majority of the directors of said corporation sign the certificate required by law, and that said secretary file the same in the office of the county clerk of the county of State of California, and file a certified copy thereof in the office of the secretary of state of said state. Upon being put to vole, said motion was unanimously carried, and said resolution adopted, by a vote of the stockholders of said corporation, said stockholders owning and representing capital stock. The chairman thereupon declared the result of said vote as above stated and there being no further business to be transacted, the meeting, on motion duly made, seconded and carried, adjourned. , Chairman. , Secretary. Wo, the undersigned , chairman, and , secretary, of the aforesaid special meeting of the stockholders of the , a corporation organized and existing under and by virtue of the laws of the State of California, and being board of directors of said corporation, do hereby certify that all the foregoing is true and correct and is a true and full record of the proceedings had and business done at said meeting of stockholders ; and we further certify that the board of directors of said corporation, on the day of at a regular meeting of said board at which a majority of said board was present, unanimously passed and adopted the resolution set forth in the foregoing proceedings as having been adopted by said board and that, in pursuance of said resolution and order of said board of directors, notice of said meeting of stockholders (which notice is here- inbefore set forth) was given by publication once a week for at least sixty days, in a newspaper published in the county INCBEASE OF CAPITAL STOCK. 755 where the principal place of business of said corporation is located, in the manner stated in the foregoing affidavit of ; and that the secretary of said corporation also addressed a copy of said notice to each of its stockholders at his known place of residence, at least thirty days before the day appointed for said meeting of stockholders, in the manner stated in the foregoing affidavit of ; that the originals of said affidavits of , and are now on file in the office of the secretary of said corporation ; that said meeting of stockholders was held at the time and place indicated in said notice ; that said place of meeting was at the principal place of business of said corporation and at the building where the board of directors usually meet ; that at said meeting there were present all the stockholders of said corporation, said stockholders owning and representing subscribed capital stock, to wit shares; that the resolutions set out in the foregoing statement as being passed and adopted at said meeting of stockholders were duly adopted by an affirmative vote representing subscribed capital stock of said corporation. to wit : shares ; and that thereupon and thereby the capital stock of said corporation was increased from dollars divided into shares of the par value of dollars eacli to dollars divided into shares of the par value of dollars each. In Witness Whereof, wo have hereunto set our hands and seals this day of , [corporate Chairman of said meeting of stockholders seal.] [and President of said corporation]. Secretary of 'said meeting of stockholders .[and of said corporation]. Being and constituting a majority of the Board of Directors of said corporation. 7."(j forms and precedents. State of California, County of On this day of , A. D , before me, , a notary public in and for the county of , State of California, residing therein, duly commissioned and sworn, personally appeared known to me to be the directors of the the corporation mentioned in the foregoing certificate of pro- ceedings, and to be and constitute board of directors of said ; and they each duly and severally acknowledged to me that they executed the foregoing instrument as such directors respectively. In Witness Whereof, I have hereunto set my hand and affixed my official seal the day and year in this [seal.] certificate last above written. Notary Public in and for the county of , State of California. State of California, ) County of \ On this day of , A. D before me, , a notary public in and for the county of , State of California, residing therein, duly commissioned and sworn, personally appeared , known to me to be the president of , the corporation mentioned in the foregoing certificate, and , known to me to be the secretary of said corporation, and they each duly and severally acknowledged to *ie that they have read the contents of the said foregoing certificate and that the same are true of their own knowledge. President Secretary. In Witness Whereof, I have hereunto set my hand and affixed my official seal the day and year in this [seal.] certificate last above written. Notary Public in and for the county of , State of California. INCEEASE OF CAPITAL STOCK. 757 [Indorsed.] Filed in the office of the county clerk of the county of State of California, this day of , A. D , County Clerk. By , Deputy Clerk. State of California, ) V oft. County of \ I, , county clerk of the county of , State of California, hereby certify the foregoing to be a full, true and correct copy of the original filed in my office on the day of A. D Attest my hand and my official seal this [SEAL.] day of , A. D , County Clerk. By , Deputy Clerk. CERTIFICATE FOR INCREASING OR DECREASING THE NUMBER OF DIRECTORS. State of California, |_ County of j Know all Men by These Presents, that I, , the secretary of , a corporation, formed and existing under the laws of California, do hereby certify : That a regular meeting of the stockholders of said corporation was held at its office at , in in said county, at o'clock . . . m. ou the day of ; that the stockholders of said corporation were then and there present at said meeting; that at said meeting a resolution the number of the directors of said corporation from to was regularly proposed, voted upon and adopted by the uuani- 758 FOBMS AND PRECEDENTS. mous vote of of said stockholders ; and that the following is a true copy of said resolution, to wit : "Resolved, That the number of directors of be and is hereby ' . . . . from to , to take effect on the day of , A. D " In Witness Whereof, I have hereunto set my hand and [corporate affixed hereunto the corporate seal of said cor- seal.] poration this day of , A. D Secretary of [Indorsed.] Filed in the office of the county clerk of the county of , State of California, this day of , A. D , County Clerk. By Deputy Clerk. State of California, ss. County of I, , county clerk of the county of , State of California, hereby certify the foregoing to be a full, true and correct copy of the original certificate as to filed in my office on the day of , A. D Attest my hand and my official seal this day of I seal. | , A. D County Clerk. By , Deputy Clerk. REMOVAL OF PRINCIPAL PLACE OF BUSINESS. 759 CERTIFICATE OF REMOVAL OF PRINCIPAL PLACE OF BUSINESS. Whereas, The owners and holders of more than two thirds of the issued capital stock of this corporation, the (organized and existing under the laws of the State of California and having its principal place of busi- ness at rooms , in the city of ), to wit, the owners and holders of issued capital stock of this corporation, have consented in writing and author- ized, empowered, and directed this board of directors and officers of this corporation to change and remove the principal place of business of this corporation from its present location, to wit, said city of , to the city of in said State of California, — which consent was filed and is now on file in the office of this company ; now therefore be it Resolved, That the principal place of business of this corpo- ration, to wit, , in State of California, be and the same is hereby changed and removed therefrom to , in said State of California, such removal and change to take effect on the day of , A. D ; And that the secretary of this corporation be and he is hereby authorized, empowered, and directed to cause a notice of the intended removal and change of the prin- cipal place of business of this corporation to be published at least once a week for three successive weeks in some newspaper published in the county of ' said state, (said county being the county wherein the present principal place of business of this corporation is situated) ; And that whenever such change is made said secretary is hereby directed to file in each office where the original articles of incorporation are or any copy thereof is required to be filed, a copy of this resolution, together with a copy of the affidavit showing the publication above directed to be made, all duly certified by the president and secretary of this corporation, with the corporate seal affixed; And that the president, and secretary of this corporation be 760 FOBMS AND PRECEDENTS. and they are hereby authorized, empowered and directed, acting jointly or either acting alone, to do any and all other acts or things requisite or necessary in their judgment to fully and com- pletely effect the change and removal of the principal place of business of this corporation as above provided, in accordance with the laws of the State of California relating thereto. State of California, ) County of \ The undersigned, , the president, and , the secretary, respectively of (a corporation duly organized and existing under the laws of the State of California), do hereby certify and declare : That the annexed and foregoing resolution removing and changing the principal place of business of said corporation from , in said state, at rooms therein, to , in said state, at No street therein, is a full, true, and correct copy of a resolution duly passed and adopted at a meeting of the board of directors of said company, held at its said place of business in the city of , on , the day of , , of which said meeting all directors of said corporation had due and legal notice and a majority and quorum of said board were present at said meeting and unanimously voted in favor of the adoption of said resolution; and That the annexed and foregoing affidavit, showing publication of the notice of the removal and change of the principal place of business of said corporation is a full, true, and correct copy of the affidavit showing such publication as therein set forth and that the original thereof is on file in the office of said com- pany. In Witness Whereof, We, the president and secretary respectively of said company, have hereunto signed fcoRPOHATi-; our names as such and affixed the corporate seal [SEAli.] of' said company this day of , A. D. President. Secretary. REMOVAL OF PRINCIPAL PLACE OF BUSINESS. 761 State of California, I County of \ On this, the day of , A. D , before me, , a notary public in and for said county of , State of California, residing therein, duly connnissioned and sworn, personally appeared , known to me to be the president, and , known to me to be the secretary of the , the corporation described in the within instrument, and they severally acknowledge that they executed such instrument as president and secretary respec- tively of said company. In Witness Whereof, I have hereunto set my hand and affixed my official seal, at my office in the county [seal.] of , the day and year in this certificate last above written. Notary Public in and for the county of , State of California. AFFIDAVIT OF PUBLICATION OF NOTICE. In the matter of the change of the principal place of business of the from to , Cal. State of California, ) V (so. County of ) , of the said county, being duly sworn, deposes and says : That he is and at all times herein mentioned was a citizen of the United States, over twenty-one years of age ; that he is not a party to, nor interested in the matter mentioned herein ; and that he is the principal clerk of the printer and publisher of the , a newspaper of general circulation printed and published weekly in said county, and that the notice, of which the annexed is a printed copy, has been published once a week for four successive weeks in the above named newspaper, commencing on the day of , , and ending on the day 762 FOBMS AND PRECEDENTS. of (both days inclusive), and as often as said newspaper was regularly issued during said time, to wit: Subscribed and sworn to before me, this day of A. D. (signed) Notary Public in and for |seal.] the county of , State of California. NOTICE. Pursuant to the written consent of the holders of more than two thirds of the issued capital stock of (a corporation duly organized and existing under the laws of the State of California), which consent has been duly filed in the office of said corporation in the county of , said state, on the .... day of , , and pursuant to a resolution of the board of directors of said corporation, which resolution was duly passed at meeting of said board of directors duly called and held at the said office of said corporation, on the day of , at which meeting more than a quorum of the directors of said corporation was present Notice is hereby given that the principal place of business of said corporation will, on the day of , , be changed and removed from the county of , State of California, to the county of , in said state, at therein, after which date the principal place of business of said corporation will be the said , at therein. This notice is published by order of the board of directors of said Dated Cal A. D [corporate seal.] Secretary of ORDER FOR CHANGE OF NAME. 763 ORDER FOR CHANGE OF NAME. In the Superior Court of the State of California, in and for the County of In the Matter of the Petition of , a corporation, for change of name. This matter having come on regularly for hearing in open court this day, the petitioner herein appearing by its attorney and no remonstrance appearing, and both oral and documentary evidence being intro- duced and it appearing therefrom to the court that the petition in this matter was regularly filed according to law and that the publication of said petition and order was duly made according to law, and that the certificate of the secretary of state was duly obtained and filed herein according to law, and that the matters set forth in said petition are in fact true ; and it further appearing to the court that there is good reason for the change of name prayed for as set forth in the petition and that there are no valid objections to such change of name, and the court having considered the petition herein and the testimony both oral and documentary ; now therefore, It is Ordered, Adjudged and Decreed that the name of , a corporation organized and existing under the laws of the State of California, be and the same is hereby changed to the name of the Dated this day of , A. D [seal.] Judge of the Superior Court. [Indorsed.] Filed in the ofBce of the county clerk of the county of State of California, this day of , A. D , County Clerk. By , Deputy Clerk. State of California, County of I, county clerk and ex officio Clerk of the superior court, do hereby certify the foregoing to 764 FORMS AND PRECEDENTS. be a full, true and correct copy of the original order for change of name of on file in my office and that I have carefully compared the same with the original. In Witness Whereof, I have hereunto set my hand and affixed the seal of the superior court, this [seal.] day of , A. D , County Clerk. By , Deputy Clerk. ORDER FOR VOLUNTARY DISSOLUTION. In the Superior Court of the State of California, in and for the county of In the Matter of the Application of , a corporation, I No for a decree of voluntary dissolution. The verified application of the above-named corporation, , praying for a decree of voluntary dissolution, coming on regularly this day of , A. D , for hearing and determination, and the proofs and evidence, both documentary and oral, having been made and introduced and duly considered by the court, and it satisfactorily appearing to the court therefrom and it having been duly shown and proven thereby, and the court finding : That the said applicant, , is, and was at the time of filing said application, and since the day of , A. D , continuously has been a corporation duly incorporated and existing under and by virtue of the laws of the State of California ; with its principal place of business located in the county of , State of California ; That the said application, duly signed and verified as pre- scribed by law, and being in all respects in conformity with Title VI of Part III of the Code of Civil Procedure of the said State of California, was ordered filed by this court, and ORDER FOR VOLUNTARY DISSOLUTION. 765 notice thereof duly directed to be given by publication for thirty (30) days; that in accordance with the order of this court in that regard and pursuant to law the clerk of this said court has given thirty (30) days' notice of said application for dissolu- tion by publication in the a newspaper of general circulation printed and published in the , State of California, the last publication of said notice occurring on the day of A. D and that notice of said application has been given for the period, in the manner and in all respects as required by law and the order of this court ; and that no objection to said application has been made or tiled herein or otherwise ; That each and all of the allegations and statements in said application of said for voluntary dissolution, are true as alleged, and have been shown to be true in all respects ; That at a meeting of the stockholders of said applicant, called for that purpose, the dissolution of said corporation was resolved upon by a vote of more than two thirds of the stockholders, and of the holders of more than two thirds of the subscribed capital stock of said corporation ; That all claims and demands against the said corporation ap- plicant have been fully satisfied and discharged; Note, therefore, it is hereby ad jit dried, declared, and decreed: That said corporation applicant, said , be and the same is hereby dissolved and declared dissolved ; It is further declared and adjudged: That the board of directors of said applicant are entitled to and are hereby author- ized and empowered to settle all the affairs of said corporation and to distribute and convey all the property and assets of said corporation to its stockholders in proportion to their respective interests. Done in open court, this day of , A. D [seal.] Judge. [Indorsed.] Filed , A. D , County Clerk. By , Deputy Clerk. 766 forms and precedents State of California, County of i I , county clerk of the county of , State of California, and ex officio clerk of the superior court thereof, hereby certify that the foregoing is a full, true and correct copy of the original decree of dissolu- tion of , a corporation in the above entitled cause, filed in my office on the day of , A. D In Witness Whereof. I hove hereunto set my hand and seal of said court, this day of , [SEAL.] A. D , County Clerk. By Deputy Clerk. FEDERAL CORPORATION TAX LAW. 7fi7 FEDERAL CORPORATION TAX LAW. An act to provide revenue, equalize duties, and encourage the industries of the United States, and for other purposes. Approved August 5, 1909. * * * * * * * Ed. Note. — Only such portion of the act is given herewith as provides for an income tax on corporations. Corporation tax — Who must pay — Amount of tax — Exemptions. Sec. 38. That every corporation, joint stock company or association, organized for profit ami having a capital stock rep- resented by shares, and every insurance company, now or here- after organized under the laws of the United States or of any state or territory of the United States or under the acts of con- gress applicable to Alaska or the District of Columbia, or now or hereafter organized under the laws of any foreign country and engaged in business in any state or territory of the United States or in Alaska or in the District of Columbia, shall be subject to pay annually a special excise tax with respect to the carrying on or doing business by such corporation, joint stock company or association, or insurance company, equivalent to one per centum upon the entire net income over and above five thou- sand dollars received by it from all sources during such year, exclusive of amounts received by it as dividends upon stock of other corporations, joint stock companies or associations, or insurance companies, subject to the tax hereby imposed ; or if organized under the laws of any foreign country, upon the amount of net income over and above five thousand dollars received by it from business transacted and capital invested within the United States and its territories, Alaska, and the District of Columbia during such year, exclusive of amounts so received by it as dividends upon stock of other corporations, joint stock companies or associations, or insurance companies, subject to the tax hereby imposed. Provided, however, that nothing in this section contained shall apply to labor, agricultural or horticultural organizations, or to fraternal beneficiary societies, orders, or associations operating under the lodge system, and providing for the payment of life, 70S FEDERAL CORPORATION TAX LAW. sick, accident, and other benefits to the members of such societies, orders, or associations, and dependents of such members, nor to domestic building and loan associations, organized and operated exclusively for the mutual benefit of their members, nor to any corporation or association organized and operated exclusively for religious, charitable, or educational purposes, no part of the net income of which inures to the benefit of any private stock- holder or individual. Net income, how ascertained — Domestic corporations — Foreign corporations. Second — Such net income shall be ascertained by deducting from the gross amount of the income of such corporation, joint stuck company or association, or insurance company, received within the year from all sources (first) all the ordinary and necessary expenses actually paid within the year out of income in the maintenance and operation of its business and properties, including all charges such as rentals or franchise payments, required to be made as a condition to the continued use or pos- session of property; (second) all losses actually sustained within the year and not compensated by insurance or otherwise, includ- ing a reasonable allowance for depreciation of property, if any, and in the case of insurance companies the sums other than divi- dends, paid within the year on policy and annuity contracts and the net addition, if any, required by law to be made within the year to reserve funds; (third) interest actually paid within the year on its bonded or other indebtedness to an amount of such bonded and other indebtedness not exceeding the paid-up capital stock of such corporation, joint stock company or association, or insurance company, outstanding at the close of the year, and in the case of a bank, banking association or trust company, all interest actually paid by it within the year on deposits ; (fourth) all sums paid by it within the year for taxes imposed under the authority of the United States or of any state or territory thereof, or imposed by the government of any foreign country as a condition to carrying on business therein; (fifth) all amounts received by it within the year as dividends upon stock of other corporations, joint stock companies or associations, or insur- ance companies, subject to the tax hereby imposed. Provided, that in the case of a corporation, joint stock com- pany or association, or insurance company, organized under the laws of a foreign country, such net income shall be ascertained FEDERAL COBPOBATIOJS TAX LAW. 769 by deducting from the gross amount of its income received within the year from business transacted and capital invested within the United States and any of its territories, Alaska, and the District of Columbia (first), all the ordinary and necessary expenses actually paid within the year out of earnings in the maintenance and operation of its business and property within the United States and its territories, Alaska, and the District of Columbia, including all charges such as rentals or franchise pay- ments required to be made as a condition to the continued use or possession of property; (second) all losses actually sustained within the year in business conducted by it within the United States or its territories, Alaska, or the District of Columbia not compensated by insurance or otherwise, including a reasonable allowance for depreciation of property, if any, and in the case of insurance companies the sums other than dividends, paid within the year on policy and annuity contracts and the net addition, if any, required by law to be made within the year to reserve funds; (third) interest actually paid within the year on its bonded or other indebtedness to an amount of such bonded and other indebtedness, not exceeding the proportion of its paid-up capital stock outstanding at the close of the year which the gross amount of its income for the year from business trans- acted and capital invested within the United States and any of its territories, Alaska, and the District of Columbia bears to the gross amount of its income derived from all sources within and without the United States; (fourth) the sums paid by it within the year for taxes imposed under the authority of the United States or of any state or territory thereof: (fifth) all amounts received by it within the year as dividends upon stock of other corporations, joint stock companies or associations, and insur- ance companies, subject to the tax hereby imposed. In the case of assessment insurance companies the actual deposit of sums with state or territorial officers, pursuant to law, as additions to guaranty or reserve funds, shall be treated as being payments required by law to reserve funds. Deductions — When tax computed — When returns to be made, to whom, and where — Form to be prescribed by commissioner of internal revenue — What to contain. Third — There shall be deducted from the amount of the net income of each of such corporations, joint stock companies, or associations, or insurance companies, ascertained as provided in 33— CL 770 FEDERAL CORPORATION TAX LAW. the foregoing paragraphs of this section, the sum of five thou- sand dollars, and said tax shall be computed upon the remainder of said net income of such corporation, joint stock company or association, or insurance company, for the year ending December thirty-first, nineteen hundred and nine, and for each calendar year I hereafter ; and on or before the first day of March, nineteen hun- dred and ten, and the first day of March in each year thereafter, a true and accurate return under oath or affirmation of its presi- dent, vice-president, or other principal officer, and its treasurer or assistant treasurer, shall be made by each of the corporations, joint stock companies or associations, and insurance companies, subject to the tax imposed by this section, to the collector of internal revenue for the district in which such corporation, joint stock company or association, or insurance company, has its principal place of business, or, in the case of a corporation, joint stock company or association, or insurance company, organized under the laws of a foreign country, in the place where its prin- cipal business is carried on within the United States, in such form as the commissioner of internal revenue, with the approval of the secretary of the treasury shall prescribe, setting forth, (first) the total amount of the paid-up capital stock of such corporation, joint stock company or association, or insurance company, outstanding at the close of the year; (second) the total amount of the bonded and other indebtedness of such cor- poration, joint stock company or association or insurance com- pany at the close of the year; (third) the gross amount of the income of such corporation, joint stock company or association, or insurance company received during such year from all sources, and if organized under the laws of a foreign country the gross amount of its income received within the year from business transacted and capital invested within the United States and any of its territories, Alaska, and the District of Columbia; also the amount received by such corporation, joint stock com- pany or association, or insurance company, within the year by way of dividends upon stock of other corporations, joint stock companies or associations, or insurance companies, subject to the tax imposed by this section ; (fourth) the total amount of all the ordinary and necessary expenses actually paid out of earnings in the maintenance and operation of the business and properties of such corporation, joint stock company or association, or insur- ance company, within the year, stating separately all charges FEDERAL CORPORATION TAX LAW. 771 such as rentals or franchise payments required to be made as a condition to the continued use or possession of property, and if organized under the laws of a foreign country the amount so paid in the maintenance and operation of its business within the United States and its territories, Alaska, and the District of Columbia; (fifth) the total amount of all losses actually sus- tained during the year and not compensated by insurance or otherwise, stating separately any amounts allowed for deprecia- tion of property, and in the case of insurance companies the sums other than dividends paid within the year on policy and annuity contracts and the net addition, if any, required by law to be made within the year to reserve funds ; and in the case of a corporation, joint stock company or association, or insurance company, organized under the laws of a foreign country, all losses .actually sustained by it during the year in business con- ducted by it within the United States or its territories, Alaska, and the District of Columbia, not compensated by insurance oi- otherwise, stating separately any amounts allowed for deprecia- tion of property, and in the case of insurance companies the sums other than dividends, paid within the year on policy and annuity contracts and the net addition, if any, required by law to be made within the year to reserve fund; (sixth) the amount of interest actually paid within the year on its bonded or other indebtedness to an amount of such bonded and other indebted- ness not exceeding the paid-up capital stock of such corporation, joint stock company or association, or insurance company, out- standing at the close of the year, and in the case of a bank, banking association or trust company, stating separately all interest paid by it within the year on deposits ; or in case of a corporation, joint stock company or association, or insurance company, organized under the laws of a foreign country, interest so paid on its bonded or other indebtedness to an amount of such bonded and other indebtedness not exceeding the proportion of its paid-up capital stock outstanding at the close of the year, which the gross amount of its income for the year from business transacted and capital invested within the United States and any of its territories, Alaska, and the District of Columbia, bears to the gross amount of its income derived from all sources within and without the United States; (seventh) the amount paid by it within the year for taxes imposed under the authority of the United States or any state or territory thereof, and sepa- 772 FEDERAL CORPORATION TAX LAW. rately the amount so paid by it for taxes imposed by the govern- ment of any foreign country as a condition to carrying on business therein; (eighth) the net income of such corporation, joint stock company or association, or insurance company after making the deductions in this section authorized. All such returns shall as received be transmitted forthwith by the col- lector to the commissioner of internal revenue. Commissioner may require further information — May examine books and papers and summon witnesses — May invoke aid of courts — May amend return. Fourth — Whenever evidence shall be produced before the com- missioner of internal revenue which in the opinion of the com- missioner justifies the belief that the return made by any corporation, joint stock company or association, or insurance company, is incorrect, or whenever any collector shall report to the commissioner of internal revenue that any corporation, joint stock company or association, or insurance company, has failed to make a return as required by law, the commissioner of internal revenue may require from the corporation, joint stock company or association, or insurance company making such return, such further information with reference to its capital, income, losses, and expenditures as he may deem expedient ; and the commissioner of internal revenue, for the purpose of ascer- taining the correctness of such return or for the purpose of making a return where none has been made, is hereby authorized, by any regularly appointed revenue agent specially designated by him for that purpose, to examine any books and papers bear- ing upon the matters required to be included in the return of such corporation, joint stock company or association, or insur- ance company, and to require the attendance of any officer or employee of such corporation, joint stock company or associa- tion, or insurance company, and to take his testimony with reference to the matter required by law to be included in such return, with power to administer oaths to such person or per- sons ; and the commissioner of internal revenue may also invoke the aid of any court of the United States having jurisdiction to require the attendance of such officers or employees and the pro- duction of such books and papers. Upon the information so acquired the commissioner of internal revenue may amend any return or make a return where none has been made. All pro- FEDERAL CORPORATION TAX LAW. 778 ceedings taken by the commissioner of internal revenue under the provisions of this section shall be subject to the approval of the secretary of the treasury. Commissioner to make assessments — Penalty for fraudulent return or failure to make same; exception and extension to make — Penalty; assessment and collection of — Assessments; notification of; when payable; penalty for delinquency. Fifth — All returns shall be retained by the commissioner of internal revenue, who shall make assessments thereon : and in case of any return made with false or fraudulent intent, he shall add one hundred per centum of such tax, and in case of a refusal or neglect to make a return or to verify the same as aforesaid he shall add fifty per centum of such tax. In case of neglect occasioned by the sickness or absence of an officer of such cor- poration, joint stock company or association, or insurance com- pany, required to make said return, or for other sufficient reason, the collector may allow such further time for makiug and deliv- ering such return as he may deem necessary, not exceeding thirty days. The amount so added to the tax shall be collected at the same time and in the same manner as the tax originally assessed unless the refusal, neglect, or falsity is discovered after the date for payment of said taxes, in which case the amouut so added shall be paid by the delinquent corporation, joint stock company or association, or insurance company, immediately upon notice given by the collector. All assessments shall be made and the several corporations, joint stock companies or associations, or insurance companies, shall be notified of the amount for which they are respectively liable on or before the first day of June of each successive year, and said assessments shall be paid on or before the thirtieth day of June, except in cases of refusal or neglect to make such return, and in cases of false or fraudulent returns, in which cases the commissioner of internal revenue shall, upon the discovery thereof, at any time within three years after said return is due, make a return upon information obtained as above provided for, and the assessment made by the commissioner of internal revenue thereon shall be paid by such corporation, joint stock company or association, or insurance company immediately upon notification of the amount of such assessment; and to any sum or sums due and unpaid after the thirtieth day of June in any year, and for ten days after notice 774 FEDERAL CORPORATION TAX LAW. and demand thereof by the collector, there shall be added the sum of five per centum on the amount of tax unpaid and interest at the rate of one per centum per month upon said tax from the time same becomes due. Assessment returns public record. Sixth — When the assessment shall be made, as provided in this section, the returns, together with any corrections thereof which may have been made by the commissioner, shall be filed in the office of the commissioner of internal revenue and shall con- stitute public records and be open to inspection as such. Unlawful to divulge information — Penalty. Seventh — It shall be unlawful for any collector, deputy col- lector, agent, clerk, or other officer or employee of the United States to divulge or make known in any manner whatever not provided by law to any person any information obtained by him in the discharge of his official duty, or to divulge or make known in any manner not provided by law any document received, evi- dence taken, or report made under this section except upon the special direction of the president; and any offense against the foregoing provision shall be a misdemeanor and be punished by a fine not exceeding one thousand dollars, or by imprisonment not exceeding one year, or both, at the discretion of the court. Refusal or neglect to make return — Penalty — False or fraudulent return; penalty for — All laws applicable to tax extended — Jurisdiction of courts. Eighth — If any of the corporations, joint stock companies or associations, or insurance companies, aforesaid, shall refuse or neglect to make a return at the time or times hereinbefore specified in each year, or shall render a false or fraudulent return, such corporation, joint stock company or association, or insurance company, shall be liable to a penalty of not less than one thousand dollars and not exceeding ten thousand dollars. Any person authorized by law to make, render, sign, or verify any return who makes any false or fraudulent return, or state- ment, with intent to defeat or evade the assessment required by this section to be made, shall be guilty of a misdemeanor, and shall be fined not exceeding one thousand dollars or to be imprisoned not exceeding one year, or both, at the discretion of the court, with costs of prosecution. FEDERAL CORPORATION TAX LAW. 775 All laws relating to the collection, remission and refund of internal revenue taxes, so far as applicable to and not incon- sistent with the provisions of this section, are hereby extended and made applicable to the tax imposed by this section. Jurisdiction is hereby conferred upon the circuit and district courts of the United States for the district within which any person summoned under this section to appear to testify or to produce books, as aforesaid, shall reside, to compel such attend- ance, production of books, and testimony by appropriate process. When act shall take effect. Sec. 42. That unless otherwise herein specially provided, this act shall take effect on the day following its passage. (Approved. Signed five minutes after five o'clock p. m., August 5, 1909 ; in effect August 6, 1909. ) INDEX. APPENDIX INDEX 777 GENERAL INDEX 789 APPENDIX INDEX. FEDERAL CORPORATION TAX LAW. 1\\ :i: An act of Congress to provide revenue, equalize duties, and encourage the industries of the United States, and for other purposes. Approved August 5, 1909 Til 7 FORMS AND PRECEDENTS. Articles of incorporation, of co-operative associations 737 corporation with capital stock. . .". 731 corporation without capital stock 734 Bonded indebtedness, creation of 739 Business, principal place of, removal 759 Capital stock, increase of 750 Directors, increase or decrease of number of 757 Dissolution, voluntary, order for 7(>4 Existence, corporate, continuance of, under § 287 of the Civil Code 724 extension of, under § 401 of the Civil Code 26 extension of, under §7, Art. XII, of the Constitution... 728 Name, change of, order for 763 LEGISLATION PRIOR TO THE CODES. Corporation legislation enacted prior to establishment of the codes, and provisions of Civil Code for repeal of existing statutes 715 Statutes continued in force by the codes 723 repealed by the codes 717 STATUTES AT LARGE. ADVERTISEMENTS. See Fraudulent Reports. AGRICULTURAL ASSOCIATIONS. An act entitled an act to form agricultural districts, to provide for formation of agricultural associations therein, and for the management and control of the same by the state, and to repeal all acts and parts of acts in conflict with this act. Approved March 31, 1897; stats. 1897, p. 304 439 An act to form agricultural districts, to provide for the formation, organization and powers, of agricultural asso- ciations therein and for the management and control of the same by the state, and repealing all acts and portions of acts in conflict with this act. Approved April 17, 1909; stats. 1909, p. 979 447 778 APPENDIX INDEX. AGRICULTURAL ASSOCIATIONS— Continued. Page. An act authorizing district agricultural associations organ- ized under the laws of the State of California, to lease lands owned, managed or controlled, in trust or other- wise, to municipal corporations, counties or cities and counties, in which such lands are situated, and repealing all acts and parts of acts in conflict herewith. Approved April 22, 1909; stats. 1909, p. 1082 453 ANIMALS. An act for the more effectual prevention of cruelty to animals. Approved March 20, 1874; stats. 1873-4, p. 499. Codified. (History) 454 An act to prevent the spread of contagious diseases among animals. Approved March 20, 1905; stats. 1905, p. 317... 454 ANTI-TRUST. See Combinations. BANKS AND BANKING. An act providing for the dissolution and winding up of savings banks, trust companies, and banks of deposit, and providing for the disposition of all funds deposited therein and not claimed withn five years after such banks have ceased to do business, or after the com- mencement of proceedings to dissolve. Approved March 31, 1891; stats. 1891, p. 271 455 An act to compel savings banks to publish a sworn state- ment of all unclaimed deposits. Approved March 23, 1893; stats. 1893, p. 183. Superseded and repealed. (His- tory) 457 An act to compel all depositaries of money and commer- cial banks to publish a sworn statement of all unclaimed deposits. Approved February 25, 1897; stats. 1897, p. 27. Superseded and repealed. (History) 457 An act creating a board of bank commissioners, and pre- scribing their duties and powers. Approved March 24, 1903; stats. 1903, p. 3G5. Superseded and repealed. (History) 458 An act to authorize the deposit of state moneys in banks in this state, and to repeal all acts or parts of acts in conflict with this act. Approved February 28, 1907; stats. 1907, p. 67 458 An act to provide for and regulate the deposit of county and municipal moneys in banks and banking corpora- tions, limiting the amount of public moneys that may be deposited therein, and providing a penalty for the illegal deposit and use thereof. Approved March 23, 1907; stats. 1907, p. 974 461 An act to define and regulate the business of banking. Approved March 1, 1909; stats. 1909, p. 87 465 BATH HOUSES. An act to secure the safety of the public at bathing places upon the seacoast and lakes. Approved March 10, 1909; stats. 1909, p. 261 514 APPENDIX INDEX. 770 BOARDS OF TRADE. See Chambers of Commerce. BENEFICIAL AND RELIEF ASSOCIATIONS. Page. An act relating: to mutual beneficial and relief associations. Approved March 28, 1874; stats. 1873-4, p. 745. Superseded. (History) 515 BONDS. An act to facilitate the giving- of bonds required by law. Approved March 12, 1885; stats. 1885, p. 114 515 An act providing- for the cancellation of bonds given to secure the performance of the terms and conditions of franchises or privileges granted by the legislative or other governing body of counties or municipalities, the release of the sureties on such bonds, and the filing and acceptance of new bonds in lieu thereof. Approved March 20, 1907; stats. 1907, p. 747 517 BRIDGES. An act to provide for bridges across navigable streams, and across estuaries, ponds, swamps, or arms of bays that may be outside of the line of navigable waters. Approved March 14, 1881; stats. 1881, p. 76 51S An act concerning bridges across navigable streams. Ap- proved February 25, 1897; stats. 1897, p. 21 520 An act to enable adjoining counties to enter into agree- ments for the construction, rebuilding, replacing, or relocation of bridges over navigable waters between said counties, jointly with other persons or corporations. Approved March 23, 1907; stats. 1907, p. 982 522 BROKERS. An act fixing the rates of interest and charges on loans upon chattel mortgages on certain personal property, and prescribing penalties for the violation of the act. Ap- proved March 20, 1905; stats. 1905, p. 422. Unconstitu- tional. (History) 523 An act to provide for the incorporation of associations for lending money on personal property, and regulating the same, and to forbid certain loans of money, property or credit. Approved March 21, 1905; stats. 1905, p. 711. Unconstitutional. (History) 5::: An act to define personal property brokers and regulate their charge and business. Approved April 16, 1909; stats. 1909. p. 969 52:: BUILDING AND LOAN COMMISSIONERS. An act creating a bureau of building and loan supervision; providing for the appointment of administration offi- cials therefor to be known as the building and loan commissioners; prescribing their duties, powers and com- pensation; providing for a secretary, his powers and com- pensation; providing for the rental of offices for the use of the bureau and for traveling and office expenses; provid- ing a system for licensing building and loan and other asso- 780 APPENDIX INDEX. BUILDING AND LOAN COM M ISSIONERS— Continued. Page. ciations, and for assessing and collecting the license fees necessary to meet the salaries and other expenses; pro- viding a course of procedure where violations of law, or unsafe practices are found to exist, or are reported by the commissioners to the attorney general; providing for involuntary liquidation by trustees, and proceedings in connection therewith; providing for exemption of property of associations in liquidation from attachments, executions and liens, pending liquidation; providing for and requiring associations to procure licenses, pay assessments levied for pro rata of salaries and expenses, and to make and file reports; providing penalties for violations of law and orders of the commissioners; pro- viding for succession in office, and repealing all acts and parts of acts in conflict herewith. Approved March 21, 1905 ; stats. 1905, p. 659 526 CEMETERIES. An act to authorize the incorporation of rural cemetery associations. Approved April 18, 1859; stats. 1859, p. 281. 536 An act supplemental to an act entitled "An act to author- ize the incorporation of rural cemetery associations," approved April 28, 1859, authorizing such association to erect, purchase, or lease buildings and furnaces and other works for cremation of human bodies; also, to erect or lease buildings in which shall be entombed only the ashes of cremated dead, to make provision for the care of the burial places and ashes of the dead; also, to provide for the cremation of the unclaimed dead and bodies liable, if interred, to spread disease. Approved March 1, 1899 ; stats. 1899, p. 36 542 An act to provide the manner of execution of deeds by cemetery corporations. Approved March 26, 1895; stats. 1895, p. 75 544 CERTIFICATES. An act providing for the issuance of duplicate certificates, where certificates issued under authority of law have been lost or destroyed by conflagration or other public calamity. Approved June 16, 1906; stats. 1906, p. 71 544 CHAMBERS OF COMMERCE. An act to provide for the formation of chambers of com- merce, boards of trade, mechanic institutes, and other kindred protective associations. Approved March 31, 1866; stats. 1865-6, p. 469. Superseded. (History) 545 CHILDREN. An act for the incorporation of societies for the preven- tion of cruelty to children. Approved April 3, 1876; stats. 1875-6, p. 830. Codified. (History) 545 COMBINATIONS. An act to prevent combinations to obstruct the sale of live stock in the State of California. Approved Febru- ary 27, 1893; stats. 1893, p. 30 545 APPENDIX INDEX. 781 COMBINATIONS— Continued. Page. An act to limit the meaning of the word "conspiracy" and also the use of "restraining orders" and "injunc- tions," as applied to disputes between employers and employees in the State of California. Approved March 20, 1903; stats. 1903, p. 289 548 An act to define trust and to provide for criminal penalties and civil damages, and punishment of corporations, per- sons, firms, and associations, or persons connected with them, and to promote free competition in commerce and all classes of business in this state. Approved March 23, 1907 ; stats. 1907, p. 984 549 CONSPIRACY. See Combinations. CO-OPERATIVE ASSOCIATIONS. An act to define co-operative business corporations, and to provide for the organization and government thereof. Approved April 1, 1878; stats. 1877-8, p. 883. Superseded. (History) 554 An act to provide for incorporation, operation, and man- agement of co-operative associations. Approved March 27, 1895; stats. 1895, p. 221. Codified. (History) 554 CREMATORIES. An act to prevent the propagation of disease through con- tamination of the atmosphere by gases or fumes arising from crematories for the disposition of garbage, ashes, offal, and other refuse matter, and to prescribe pen- alties. Approved April 17, 1909; stats. 1909, p. 978 555 DAY OF REST. See Hours of Labor. DEMURRAGE. See Railroads. EMPLOYMENT AND EMPLOYMENT AGENTS. An act to prevent misrepresentations of conditions of em- ployment, making it a misdemeanor to misrepresent the same and providing penalties therefor. Approved March 20, 1903 ; stats. 1903, p. 2G9 556 An act defining the duties and liabilities of employment agents, making the violation thereof a misdemeanor and fixing penalties therefor. Approved February 12, 1903; stats. 1903, p. 14 557 An act to regulate and license the conducting and opera- ting Qf employment agencies and to provide a revenue therefrom, for the enforcement of the provisions of this act and other acts relating to employment agents and employment agencies. Approved March 6, 1909; stats. 1909, p. 191 560 EMIGRATION. An act to promote emigration from the State of California. Approved March 26, 1880; stats. 1880, p. 15 563 782 APPENDIX INDEX. EXECUTORS. Page. An act authorizing certain corporations to act as executor and in other capacities, and to provide for and regulate the administration of trusts by such corporations. Ap- proved April 6, 1891; stats. 1891, p. 490 564 FACTORIES AND WORKSHOPS. See Help and Sanitation. FOREIGN CORPORATIONS. An act in relation to foreign corporations. Approved April 1, 1872; stats. 1S71-2, p. 826. Superseded. (History) 572 An act requiring corporations organized under the laws of another state, territory or foreign country, to file a certified copy of their articles of incorporation in the office of the secretary of state, and a certified copy thereof, duly certified by the secretary of state of this state, in the office of the county clerk of the county where its principal place of business is located and also where such corporation owns property, and requiring such corporation to pay to the secretary of state the same fees as are paid by corporations formed under the laws of the State of California and providing for a pen- alty for the violation of the provisions of this act. Ap- proved March 8, 1901; stats. 1901, p. 108. Superseded. (History) 572 FRANCHISES. An act relating to the granting by counties and munici- palities of franchises for the construction of paths and roads for the use of bicycles and other horseless vehicles. Approved March 21, 1897; stats. 1897, p. 191. Superseded. (History) 572 An act providing for the sale of street railroad and other franchises in counties and municipalities, and providing conditions for the granting of such franchises by legisla- tive or other governing bodies, and repealing conflicting acts. Approved March 22, 1905; stats. 1905, p. 777 573 FRAUDULENT REPORTS. An act to protect stockholders and persons dealing with corporations in this state. Approved March 29, 1878; stats. 1877-8, p. 695 578 An act to prevent false and incorrect representations and advertisements concerning articles offered for sale and prescribing a punishment for the violation thereof. Ap- proved April 22, 1909; stats. 1909, p. 1078 579 GAME PRESERVES. An act to provide for the transfer to the State of Cali- fornia by owners of patented lands therein of the right to preserve and protect wild game on such patented lands; to define the duties of the state board of fish com- missioners in relation to the control of such rights, and to declare the hunting of wild game within the exterior boundaries of the land to which such right attaches, a misdemeanor. Approved March 21, 1907; stats. 1907, p. 788 579 APPENDIX INDEX. 783 GAS COMPANIES. Page. An act concerning gas companies. Approved April 4, 1870; stats. 1869-70, p. 815. Superseded: (History) 581 An act to provide for the letting of contracts for lighting of streets and public buildings in cities and towns in the State of California. Approved March 26, 1895; stats. 1895, p. 191. Repealed. (History) 581 HEALTH AND SANITATION. An act to provide for the proper sanitary condition of factories and workshops, and the preservation of the health of the employees. Approved February 6, 1889; stats. 1889, p. 3 582 An act providing for the sanitation of food producing establishments, places where food is stored, prepared, kept or manufactured and in which food is distributed; regulating the health of persons by whom the materials from which food is prepared or the finished product is handled; providing for the inspection of such places, per- sons and things; declaring places and things in violation of this act to be nuisances dangerous to health and pro- viding for the abatement of the same; making viola- tions of this act misdemeanors; and providing for the punishment of the same. Approved March 6, 1909; stats. 1909, p. 151 5S4 An act declaring property infested with certain rodents to be a public nuisance; requiring owners, occupants, and persons having possession of or dominion over such prop- erty to endeavor to exterminate and destroy such rodents; providing for the inspection of property by boards of health and health officers; authorizing boards of supervisors and other governing bodies to purchase materials and employ inspectors to prosecute such work of extermination; authorizing state and local health authorities to prosecute such work in certain cases; pro- viding for the payment of the expense thereof; making the amount of such expense a lien on the property; pro- viding for the collection of such amount by foreclosure of such lien and declaring any violation of the provisions thereof to be a misdemeanor. Approved March 13, 1909; stats. 1909, p. 311 588 HOLIDAYS. An act declaring February 12th, the birthday of Abraham Lincoln, a legal holiday and providing for a half-day session in the public schools on such holiday, and for certain exercises in the public schools. Approved April 13, 1909 ; stats. 1909, p. 861 59 1 HOSPITALS. An act to promote the public welfare, by providing for the conveyance, holding and protection of property, and the creation of trusts for the founding, endowment, erection and maintenance within this state of hospitals for the relief of the sick and for training schools for nurses. Approved February 19, 1907; stats. 1907, p. 10.. 591 784 APPENDIX INDEX. HOURS OF LABOR. PAGE. An act to provide for a. day of rest from labor. Approved February 27, 1893; stats. 1893, p. 54 591 An act to provide for a lunch hour for laborers in saw- mills, shakemills, shingle-mills, and logging-camps. Ap- proved February 28, 1901; stats. 1901, p. 75 595 An act to regulate the work and hours of employees en- gaged in selling, at retail, drugs and medicines, and compounding physicians' prescriptions, and providing a penalty for the violation thereof. Approved February 28, 1905 ; stats. 1905, p. 28 595 An act regulating the hours of employment in under- ground mines and in smelting and reduction works. Ap- proved March 10, 1909; stats. 1909, p. 279 597 INSURANCE. An act relating to life, health, accident, and annuity or endowment insurance on the assessment plan, and the conduct of the business of such insurance. Approved March 19, 1891; stats. 1891, p. 126. Codified. (History).. 598 An act to provide for the organization and management of county fire insurance companies. Approved April 1, 1897; stats. 1S97, p. 439 598 An act providing for the organization and management of mutual flre insurance companies. Approved March 19, 1907; stats. 1907, p. 631 604 An act relating to life, health and accident insurance of live stock on the assessment plan and the conduct of the business of such insurance. Approved March 23, 1907; stats. 1907, p. 952 608 An act to establish a standard form of fire insurance policy and to prevent variations therefrom, excepting under certain stated conditions and restrictions. Ap- proved March 18, 1909; stats. 1909, p. 404 614 INTEREST. See Brokers. LICENSE TAX. An act to enforce the collection of license taxes. Ap- proved March 21, 1872; stats. 1871-2, p. 539 624 An act relating to revenue and taxation, providing for a license tax upon corporations, and making an appropria- tion for the purpose of carrying out the objects of this act. Approved March 20, 1905; stats. 1905, p. 493 625 LIMITATION OF ACTIONS. An act respecting the limitation of actions. Approved March 11, 1872; stats. 1871-2, p. 319. Superseded. (His- tory) 631 An act supplementary to an act entitled an act defining the time for commencing civil actions, passed April twenty-second, eighteen hundred and fifty. Approved March 16, 1872; stats. 1871-2, p. 401. Superseded. (His- tory) 631 APPENDIX INDEX. 785 LOANS ON PERSONAL PROPERTY. See Brokers. MECHANIC INSTITUTES. See Chambers of Commerce. MINES AND MINING. Page. An act for the protection of miners. Approved March 16, 1872; stats. 1871-2, p. 413 632 An act for the protection of coal mines and coal miners. Approved March 27, 1874; stats. 1873-4, p. 726 633 An act for the better protection of the stockholders in corporations formed under the laws of the State of California, for the purpose of carrying- on and conducting the business of mining. Approved March 30, 1874; stats. 1873-4, p. 866. Codified. (History) 635 An act for the further protection of stockholders in min- ing companies. Approved April 23, 1880; stats. 1880, p. 131. Repealed. (History) 636 An act to establish a uniform system of mine bell signals, to be used in all the mines operated in the State of California, and for the protection of miners. Approved March 8, 1893; stats. 1893, p. 82 636 MUNICIPAL CORPORATIONS. An act to provide for the organization, incorporation, and government of municipal corporations. Approved March 13, 1883 ; stats. 1883, p. 93 638 PERSONAL PROPERTY BROKERS. See Brokers. PUBLIC WELFARE. See Health and Sanitation ; Hospitals. RAILROADS. An act to enable railroad companies to complete their rail- roads. Approved April 1, 1878; stats. 1877-8, p. 944. (His- tory) 645 An act to create the office of commissioner of transporta- tion, and to define its powers and duties; to fix the maxi- mum charges for transporting passengers and freights on certain railroads; and to prevent extortion and unjust discrimination thereon. Approved April 1, 1878; stats. 1877-8, p. 969. Repealed. (History) 645 An act permitting and authorizing railway and other corporations, organized under the laws of this state, or of any state or territory of the United States of America, or any act of congress of the United States of America, to do business in this state on equal terms. Approved April 3, 1880; stats. 1880, p. 21. Superseded. (History).. 645 An act to organize and define the powers of the board of railroad commissioners. Approved April 15, 1880; stats. 1880, p. 45. Repealed. (History) 645 786 APPENDIX INDEX. RAILROADS— Continued. Page. An act to compel railroad corporations, or individuals own- ing railroads, to operate their roads. Approved April 15, 1880; stats. 1880, p. 43 646 An act to provide for the management and operation of railroads above certain elevations. Approved February 9, 1897; stats. 1897, p. 5 647 An act to provide for the appointment of policemen, with the powers of peace officers, to serve upon -the premises, cars or boats of railroad and steamship companies. Ap- proved March 23, 1901; stats. 1901, p. 666 647 An act providing for the organization of the railroad com- mission of the State of California, denning its powers and duties and the powers and duties of transportation companies, their officers and employees, and defining offenses by transportation companies, their officers, em- ployees and other persons, and providing penalties there- for; and repealing an act entitled, "An act to create the office of commissioner of transportation, and to define its powers and duties; to fix the maximum charges for transporting passengers and freight on certain railroads, and to prevent extortion and unjust discrimination therein," approved April 1, 1878, and also repealing an act entitled "An act to organize and define the powers of the board of railroad commissioners," approved April 15, 1880. Approved March 19, 1909; stats. 1909, p. 499... 648 An act requiring persons, corporations, receivers or trus- tees operating lines of railway to furnish cars for ship- ment of freight upon written application from shippers of freight and providing a penalty and damages to be paid by such persons, corporations, receivers or trustees to shippers for failure to do so and providing a penalty and damages to be paid to persons, corporations, receivers or trustees operating such railway lines by the applicant or shipper for failure to load or unload cars so fur- nished. Approved April 20, 1909; stats. 1909, p. 1007 670 Rules of the railroad commission. Adopted by the com- mission June 8, 1909 674 STREET RAILROADS. An act to limit and fix the rates of fares on street rail- roads in cities and towns of more than one hundred thousand inhabitants. Approved January 1, 1878; stats. 1877-8, p. 18 679 An act to confirm, ratify, and make valid ordinances here- tofore passed by the trustees, council, or other body in- trusted with the government of any incorporated city, city and county, or town, giving authority and permis- sion to propel cars upon railroad tracks laid through the streets and public highways of such incorporated city, city and county, or town, by electricity. Approved Feb- ruary 25, 1891; stats. 1891, p. 12: 680 APPENDIX INDEX. 787 STREET RAILROADS— Continued. Page. An act requiring city, city and county, or town author- ities to exact and require from persons or corporations seeking permission and authority to lay railroad tracks through streets or public highways of any incorporated city, city and county, or town, a satisfactory promise and undertaking to permit and allow mail carriers in the employ of the United States government at all times, while engaged in the actual discharge of duty, to ride on the cars of such railroad without paying fare; and to make such promise and undertaking a condition prece- dent to the granting of such permission and authority by such governing board. Approved February 27, 1893; stats. 1893, p. 44 681 An act to authorize cities and towns to grant franchises for the construction and maintenance of railroads beyond the limits of such cities or towns leading to public parks owned thereby. Became a law March 1, 1897; stats. 1897, p. 46 682 TRADE-MARKS. An act to protect the owners of bottles, boxes, siphons, and kegs used in the sale of soda waters, mineral or aerated waters, porter, ale, cider, ginger ale, milk, cream, small beer, lager beer, weiss beer, beer, white beer, or other beverages. Approved March 31, 1891; stats. 1891, p. 217 683 TRUST COMPANIES. See Banks and Banking ; Executors. UNITED STATES. An act granting rights of way for lines, roads, structures, levees, canals, and excavations to the United States, over the public lands of this state. Approved March 21, 1907; stats. 1907, p. 848 687 WAGES. An act to provide for the payment of the wages of me- chanics and laborers employed by corporations. Ap- proved March 31, 1891; stats. 1891, p. 195. Unconstitu- tional. (History) 687 An act requiring every corporation doing business in this state to pay their employees, and each of them, at least once in each and every month, the wages earned by such employee; to limit the defenses which may be set up by such corporation to assignments of wages, set-off or counter-claims, or the absence of such employee at the time of making payment, and in case of such absence the wages are payable upon demand; to prohibit assignments of wages for the purpose of evading the provisions of this act and agreements to accept wages at longer periods than as herein provided as a condition of employment; to fix a penalty for this violation of the provisions of this act by such corporation, and to provide for the dis- position of any fines recovered from corporations viola- ting the same. Approved March 29, 1897; stats. 1897, p. 231. Unconstitutional. (History) 688 788 APPENDIX INDEX. WAREHOUSEMEN. PAGB. An act concerning warehouse receipts, and the issuing, sale and transfer thereof, and the sale of goods, wares and merchandise stored in public or private warehouses in other states. Approved March 20, 1905; stats. 1905, p. 322 688 An act to make uniform the law of warehouse receipts. Approved March 19, 1909; stats. 1909, p. 437 690 WATER COMPANIES. An act to regulate and control the sale, rental, and dis- tribution of appropriated water in this state, other than in any city, city and county, or town therein, and to secure the rights of way for the conveyance of such water to the places of use. Approved March 12, 1885; stats. 1885, p. 95 707 An act declaring upon what terms contracts between per- sons, companies, associations, or corporations furnishing water for irrigation to the consumers of such water shall be valid, and to provide that such contracts shall be deemed based upon sufficient consideration. Approved March 16, 1901 ; stats. 1901, p. 331 712 An act to provide for the recordation of contracts and subscription agreements to stock in water users' asso- ciations, organized in conformity with an act of congress, approved June 17, 1902, and to regulate recorders' fees for filing, recording and indexing same. Approved March 20, 1907; stats. 1907, p. 749 714 GENERAL INDEX. EXPLANATION. For general provisions, applicable to and governing all cor- porations, see general headings as they occur, as "Articles of Incorporation," "By-laws," "Capital Stock." For additional or exceptional provisions respecting certain specified classes of corporations in particular, see the respective name headings as they occur enumerated in their order, as "Agricultural Fair Corporations," "Banks," "Carriers." ACCOUNTS. See BOOKS AND RECORDS. ACKNOWLEDGMENTS. Page. Form of. C. C. § 1190 235 Of instruments by a corporation. C. C. § 1161 233 Proof to accompany. C. C. § 1185 234 ACTIONS. Against corporations, where instituted. Const., Art. XII, § 16 15 Can not be defended or maintained by corporation if articles are not filed as required. C. C. § 299 38 Civil, against a corporation, service of summons. C. C. P. § 411 384 against directors and stockholders to recover penalties or enforce liabilities. C. C. P. §359 382 against officers of corporation on refusal to transfer stock. C. C. § 324 58 dissolution by state. C. C. § 358 72 inquiry into affairs of corporation in suit by state. C. C. §358 72 place of trial in certain cases. C. C. P. § 395 383 pleadings, verification of by corporation. C. C. P. § 446.. 386 publication of summons, in certain cases. C. C. P. §412 3S4 recovery of assessment on capital stock. C. C. §349.... 69 recovery of deposits, no time limit. C. C. P. §348 382 recovery of penalties, by purchaser of franchise at sale under execution. C. C. §390 86 recovery of stock sold for assessment. C. C. § 347 68 residence may be recorded for service of summons. C. C. § H63 234 security for costs, when required. C. C. P. §1036 394 stockholders, against, for recovery of debt. C. C. §322.. 55 sue and be sued, corporate right to. Const., art. XII, § 4 12 790 GENERAL INDEX. ACTIONS— Continued. Page. Civil, sue and be sued, powers. C. C. §354, subd. 2 70 time for commencement of, against directors or stock- holders for enforcement of liability. C. C. P. §359 382 time for commencement of, against directors, to recover stock sold for assessment. C. C. § 347 GS time for commencement of, against directors, when statute of limitations not to apply. C. C. § 309 40 usurpation of franchise. C. C. P. § 803 39 J Criminal, against corporations, summons. Pen. C. §1390.. 433 examination of charge. Pen. C. § 1393 434 form of summons. Pen. C. § 1391 434 indictment, appearance and plea. Pen. C. §1396 435 prosecution of. Pen. C. § 1395 434 return of depositions. Pen. C. § 1394 434 summons, how and when served. Pen. C. § 1392 434 warrant of arrest, summons in case of corporation. Pen. C. § 1427 435 when fine imposed, collection of. Pen. C. §1397 435 ADMINISTRATORS. See BANKS. See, also, Appendix Index, BANKS AND BANKING; EXECUTORS. ADVERTISEMENTS. See, also, REPORTS; also, Appendix Index, FRAUDULENT REPORTS. Flag of the United States, not to be used. Pen. C. § 310.. 409 Misrepresentation of quality of goods. Pen. C. § 654a 432 Names, fraudulent use of. Pen. C. §559 424 Publication of false reports. Pen. C. § 564 426 AFFAIRS. See, also, BUSINESS. Affairs and business may be inquired into on information of attorney general. C. C. § 358 72 Affairs and conditions of corporations may be examined by legislature. C. C. § 383 84 of corporations, may be inquired into at request of gov- ernor. C. C. § 382 84 AFFIDAVITS. See ACKNOWLEDGMENTS. AGENTS. See, also, FOREIGN CORPORATIONS. Appointment of, corporate power to do so. C. C. § 354, subd. 5 70 AGRICULTURAL DISTRICTS. See Appendix Index, AGRI- CULTURAL ASSOCIATIONS. AGRICULTURAL FAIR CORPORATIONS. By-laws, must provide for charges and membership fees. C. C. §622 196 Capital stock not to be held. C. C. § 622 196 Indebtedness, limitations on. C. C. §621 195 Non-profit in character. C. C. §622 196 Property, quantity which may be held. C. C. § 620 195 See, also, Appendix Index, Agricultural Associations. ANIMALS. See CHILDREN AND ANIMALS. See, also, Appendix Index, ANIMALS. GENERAL INDEX. 791 ARTICLES OF INCORPORATION. Page. Acknowledged and subscribed, how and by whom. C. C. §292 3G Amendment of, and filing of amendment. C. C. § 362 78 Actions in relation to property can not be maintained or defended unless certified copies filed in counties where property is situated. C. C. § 299 38 Certified, are prima facie evidence. C. C. § 297 38 Certified copy, a certified copy of, may be filed to replace original lost or destroyed. C. C. § 297a 38 when certified by county clerk and filed with secretary of state. C. C. § 296 37 when certified by county clerk, fee for certifying. Pol. C. § 4300a 372 when certified by secretary of state, and filed in each county where property is situated. C. C. § 299 38 when copy made by secretary of state, fee for making. Pol. C. § 416, subds. 1 and 3 261 when copy supplied by applicant, fee for making. Pol. C. § 416, subds. 2 and 3 261 County clerk, fees for certifying to copy of. Pol. C. § 4300a 372 fees for filing and indexing. Pol. C. § 4300a 372 Definition of. C. C. § 289 33 Error in filing, how corrected. C. C. §363 79 Filed in each county where property is held. C. C. § 299.. 38 with county clerk and secretary of state. C. C. § 296.... 37 Forms for. See Appendix Index, Forms and Precedents. Name must not be taken closely resembling any existing corporation. C. C. § 296 37 Original to be filed with county clerk where principal place of business is situated. C. C. § 296 37 certified copy to be filed with secretary of state. C. C. § 296 37 certified copy thereof to be filed in each county where property is situated. C. C. § 299 38 Restoration of when lost or destroyed. C. C. § 297a 38 See, also, Appendix Index, Certificates. Secretary of state, fee, affixing certificate and seal of state. Pol. C. § 416, subd. 3 261 fee for comparing. Pol. C. § 416, subd. 2 261 fee for copying. Pol. C. § 416, subd. 1 261 fee for filing amended articles. Pol. C. § 416, subd. 10... 261 fee for filing, apportioned to amount of capital stock. Pol. C. §416, subd. 4 261 fee for recording. Pol. C. § 416, subd. 5 261 ASSESSMENTS. See, also, CAPITAL STOCK. Action for recovery of stock sold for. C. C. § 347 68 Capital stock, assessments on. C. C. § 331 63 Contents of notice. C. C. § 338 66 Delinquent notice. C. C. § 337 65 sale, extension of time. C. C. § 345 68 792 GENERAL INDEX. ASSESSMENTS— Continued. Page. Failure of publication not to invalidate. C. C. §346 68 Limitation of, on capital stock. C. C. § 332 63 Notice of. C. C. § 335 64 affidavit of publication. C. C. § 348 69 gives jurisdiction to sell stock. C. C. §340 66 time of publication. C. C. § 339 66 Not to be levied, when. C. C. § 333 64 Order levying, what must contain. C. C. §334 64 Publication and service of notice. C. C. § 336 65 Sale of stock for, corporation may purchase. C. C. § 343... 67 of stock for, to be at public auction. C. C. § 341 66 of stock to pay, highest bidder to be purchaser. C. C. §342 67 waivure of sale and proceedings to collect by action. C. C. §349 69 Stock purchased by corporation at sale for, disposition of. C. C. §344 67 Taxation*- property, assessment for purposes of, by assess- ors and board of equalization. See Property; Taxation. ASSOCIATIONS AND COMPANIES. Included in term "corporations." Const., art. XII, §4 12 ATTACHMENT AND EXECUTION. Attachment, of property, real and personal. C. C. P. § 542 388 of shares of stock. C. C. P. § 541 388 Execution, sale under, of property. C. C. P. § 688 391 sale under, of shares of stock. C. C. P. § 688 391 what exempt from sale under. C. C. P. §690 392 See, also, Capital Stock; Property. ATTORNEY GENERAL. Action against corporation for unlawful holding of fran- chise. C. C. P. § 803 393 Building and loan associations, action against, for failure to report. C. C. § 645 206 Co-operative agricultural, viticultural, and horticultural associations, inquiry into business of. C. C. §653s... 225 Co-operative business associations, action against. C. C. § 653j 219 inquiry into affairs of. C. C. § 653k 219 Co-operative corporations, non-profit, inquiry into business of. C. C. § 653z 230 Examination of affairs of corporations. C. C. §382 84 Foreign corporations, action against, for failure to file articles of incorporation. C. C. § 410 93 Governor may require to inquire into affairs of corpora- tion. Pol. C. § 380, subd. 6 260 Information of, and inquiry into affairs of corporation. C. C. § 358 72 Insurance commissioner to submit documents for examina- tion. Pol. C. § 596a -'74 GENERAL INDEX. 793 ATTORNEY GENERAL— Continued. Page. Insurance companies, action against insolvent. Pol. C. § 604 281 Investment companies, action to dissolve. Pol. C. §635d.. 304 defense of action against state treasurer. Pol. C. 635e.. 304 examination of. Pol. C. § 635i 306 Railroad companies, collect penalty from in certain in- stances. C. C. § 494 139 Treasurer of state, defense of action against, for recovery of taxes. Pol. C. § 3669 362 AUTOMOBILES. Insurance of. See Insurance, Team and Vehicle. Roads for, and other horseless vehicles. See Roads, Toll; Roads, Wagon. BANK COMMISSIONER. See, Appendix Index, BANKS AND BANKING. BANKS. See, also, BANKS, SAVING AND LOAN; also, Appendix Index, BANKS AND BANKING; EXEC- UTORS. Actions against, to recover deposits, no time limit. C. C. P. § 348 382 Administrators. See Executors. Amount of capital stock required to be subscribed before authorized to do business. C. C. § 290a 35 Application of provisions for co-operative business asso- ciations. C. C. § 6531 219 of provisions for non-profit co-operative corporations. C. C. § 653za 230 Bank paper, unlawful substitution as monev. Pen. C. § 648 432 Bullion, gold, purchased by, certain provisions not to apply. Note to Pen. C. § 343 411 Capital stock, amount actually paid up must be published. C. C. § 583a 167 amount which must be paid in before commencing busi- ness. C. C. § 290a 35 manner of issue. C. C. § 300 40 Circulate nothing but lawful money. Const, art. XII. $ 5.. 12 Dissolution. See, Appendix Index, Banks and Banking. Deposits, receiving of, by insolvent banks. Pen. C. §562.. 425 unclaimed,' statement of required. C. C. § 5S3b 168 Dividends, how and when declared. C. C. § 583 Hi? upon wiiat paid. C. C. § 300 40 Executors. See, also, Appendix Index, Banks and Bank- ing; Executors, corporations to act as, appointment by courts in probate matters. C. C. P. §1348 403 corporations to act as, capital stock required to be paid in before commencing business. C. C. § 290a 35 corporations to act as, right to use word "trust" in name. C. C. §290% 35 when guilty of embezzlement. Pen. C. § 506 421 34— CL 704 GENERAL INDEX. BANKS — Continued. Page. Fraudulent appropriation of property, penalty. Pen. C. § 506 421 Formed under general laws. Const., art. XII, §5 12 Insolvent bank, receiving deposits. Pen. C. §562 425 Name, of friendly society, not to be adopted or used. C. C. P. §1276 401 Persons not incorporated must show true names. C. C. § 582 166 Property, taxation of, statement required by assessor. Pol. C. § 3629 353 Public money may be deposited with. Const., art. XI, §161/, 7 Records, certain, accessible to public. C. C. §321 52 of meetings for issuance of capital stock. C. C. § 300.... 40 Trust companies. See, also, Executors. See. also, Ap- pendix Index, Banks and Banking; Executors, amount of capital stock which must be paid in before doing business. C. C. § 290a 35 "trust" or "trustee" not to be used as part of corporate name unless authorized. C. C. § 290^ 35 Trustees. See Executors. Unclaimed deposits, statement of, required. C. C. §583b.. 168 BANKS, NATIONAL. Assessment of shares, notice to shareholders. Pol. C. § 3610 347 Property, other than real estate, exempt from taxation. Pol. C. §3608 346 Shareholders in, assessed on valuation of stock. Pol. C. | 3609 346 Shares of stock in, assessment and taxation of. Pol. C. § 3608 346 of stock in, collection of assessment. Pol. C. § 3610 347 See, also, Appendix Index, Banks and Banking. BANKS, SAVING AND LOAN. See, also, BANKS. Also, Appendix Index, BANKS AND BANKING. Bonds purchased by, must be of certain description. C. C. § 574 163 Capital stock, amount paid up must be published. C. C. § 583a 167 certificates to issue. C. C. § 572 163 Certificates of deposit, transferable. C. C. §576 165 Create debts, phrase not to apply to certain transactions. C. C. §579 166 Deposits, certificates of. C. C. § 576 165 unclaimed, statement of required. C. C. § 583b 168 unclaimed, when application for dissolution. C. C. P. § 1 234 400 Depositors, have priority of security. C. C. §573 163 Directors or officers must not borrow deposits or become indorsers. C. C. § 578 166 Dissolution, application for. C. C. P. §1234 400 GENERAL INDEX. 795 BANKS. SAVING AND LOAN— Continued. Page. Dividends, how declared. C. C. § 573 163 how and when declared. ('. C. § 5S3 167 unclaimed, at time of application for dissolution. C. C. P. § 1284 400 Funds may be loaned and invested. C- C. § 571 162 Loans, limitation of. C. C. §571 162 on mining stock, prohibited. C. C. § 581 166 on real estate, limitation of. C. C. § 581 166 Minor children may make deposits and draw dividends. C. C. § 575 164 Officers or directors must not borrow deposits or become indorsers. C. C. § 578 166 Officer overdrawing- account. Pen. C. § 561 425 Persons not incorporated must show true names. C. C. § 582 166 Property, acquirement and handling of. C. C. § 574 163 Reserve fund to be created. C. C. §583 167 Stockholders, security of. C. C. § 573 163 Surplus fund to be created. C. C. § 583 167 Unclaimed deposits, statement of required. C. C. § 583b... 168 Women, married, may make deposits and draw dividends. C. C. §575 164 BENEVOLENCE AND CHARITY. See. also, CO-OPERA- TIVE BUSINESS ASSOCIATIONS; NON-PROFIT CORPORATIONS; ORPHAN ASYLUMS; RELIGIOUS CORPORATIONS. Business, place of, need not be maintained. Const., art. XII, § 14 14 Co-operative business associations, organized as. C. C. § 653b 214 Directors, election of, certain conditions not to apply. C. C. § 307 45 number of. C. C. 290, subd. 5 33 number of and qualification. C. C. § 305 44 Hall associations, directors of, number. C. C. §305 44 Name, change of, how effected. C. C. P. § 1276 401 Records of, reference to. C. C. § 37S 83 BEQUESTS. Limitation of dispositions. C. C. § 1275 236 To corporations, restrictions on. C. C. §1313 236 BICYCLES AND MOTORCYCLES. Insurance of. See Insurance, Team and Vehicle. Paths and roads for. See Roads, Toll; Roads, Wagon. BOARD OF EQUALIZATION, STATE. See EQUALIZA- TION. BOARDS OF TRADE. See COMMERCE, TRADE, AND MECHANIC ARTS. BOND INVESTMENT COMPANIES. See INVESTMENT COMPANIES. 796 GENERAL INDEX. BONDS AND INDEBTEDNESS. Page. Bonds, are property, subject to taxation. Const., art. XIII, §1 19 denned as property, for purposes of taxation. Pol. C. § 3617 348 fraudulent exchange of. Pen. C. § 560, subd. 5 424 issuance of, how effected. C. C. § 359 72 issuance of, regulations. Const., art. XII, §11 14 lost or destroyed, duplicates may be obtained, how. C. C. §329 61 Bonded indebtedness, consolidation of. C. C. § 359, subds. 6, 7, and 8 72 certificate of prepared. C. C. § 359, subd. 7 72 certificate of to be filed. C. C. § 359, subd. S 72 increase of, regulation. Const., art. XII, §11 14 increasing or diminishing. C. C. § 359 72 Forms for certificates. See Appendix Index, Forms and Precedents, fee for filing certificates in relation to. Pol. C. § 416 261 BONDS, SURETY. See INSURANCE, FIDELITY AND SURETY; also, Appendix Index, BONDS. BOOKS AND RECORDS. Accounts, frauds in keeping. Pen. C. § 563 425 Books and records, adjourned meetings, keeping of record. C. C. § 312 49 fraudulent keeping of. Pen. C. § 563 425 lost or destroyed, how replaced. C. C. § 365 80 See, also, Certificates, refusal of inspection by member or stockholder. Pen. C. § 565 426 required to be kept. C. C. § 377 83 stock and transfer book. C. C. § 378 83 BRIDGES AND FERRIES. See, also, Appendix Index. BRIDGES. Annual report to supervisors. C. C. § 530 153 to supervisors, further provisions. Pol. C. §2847 324 Application for authority, notice of. Pol. C. §2853 326 Application for construction, action when majority of supervisors are interested. Pol. C. §4323 374 made to supervisors. Pol. C. § 2843 322 notice of. Pol. C. § 2844 323 regulations by supervisors. Pol. C. § 2845 323 supervisor interested not to act. Pol. C. §2852 325 Application of title to natural persons. C. C. §531 154 Assessment of property for purposes of taxation, how di- vided between counties. Pol. C. § 3643 355 Banks of streams or waters to be kept in repair. Pol. C. § 2858 327 Bond, conditions of, and execution. Pol. C. §2850 325 fixed by supervisors. Pol. C. § 2845 323 Companies, not to be chartered or licensed by legislature. Const., art. IV, § 25, subd. 25 4 GENERAL INDEX. 797 BRIDGES AND FERRI ES— Continued. Page. Construction, and operation, regulated by supervisors. Pol. C. §2845 323 must be commenced, and completed, when. C. C. § 529. 152 Corporate existence terminates, under certain contingen- cies. C. C. § 529 152 Estimate to determine license tax and rate of tolls. Pol. C. § 2848 324 Franchise, application for, when majority of supervisors are interested. Pol. C. § 4323 374 expiration by limitation, becomes public highway. Pol. C. §2619 310 power of supervisors to grant. Pol. C. § 4041, subds. 4 and 32 369 License, issued by clerk of supervisors. Pol. C. § 2849 325 License tax, annually fixed by supervisors. Pol. C. § 3378. 344 delinquent, collection. See Appendix Index, License Tax. fixed by supervisors. Pol. C. § 2845 323 how paid, when uniting two counties. Pol. C. §2851 325 increase or diminution of. Pol. C. §2846 323 rate of, inquiry by supervisors. Pol. C. § 284S 324 revenues from, how applied. Pol. C. § 2857 326 Mile limit, between bridges or ferries. Pol. C. § 2853 326 Operation must commence, when. C. C. §529 152 Owner of land entitled to preference in authority to con- struct. Pol. C. § 2854 326 Property, where assessed for purposes of taxation. Pol. C. § 3643 355 Report to supervisors annually. Pol. C. §2847 324 Right of way, acquirement of lands. Pol. C. §2855 326 Toll, authority to take must be obtained. C. C. §528 152 increase or diminution of. Pol. C. § 2S46 323 rate of, fixed by supervisors. Pol. C. §2845 ". . . 323 rate of, inquiry by supervisors. Pol. C. §2848 324 rate of, to be posted. Pol. C. § 2856 326 taking without authority. Pen. C. § 386 417 Toll bridge, animals, number of, which may be driven upon. Pol. C. § 2876 329 application for authority to construct. Pol. C. §2870.... 327 application, hearing of. Pol. C. § 2871 328 completion of bridge, certificate to issue. Pol. C. § 2878.. 329 county may purchase bridge. Pol. C. §2881 330 draws or swings, when navigable waters. Pol. C. § 2875. . 329 driving over faster than a walk, penalty. Pen. C. § 388. 418 fast driving over bridge, notice of penalty. Pol. C. § 2938 337 highways, public, use of. Pol. C. §2874 328 license tax, rate to be prescribed by supervisors. Pol. C. § 2878 329 navigable streams, channels to be kept clear. Pol. C. § 2877 329 penalty for avoiding tolls. Pol. C. §2880 330 persons exempt from paying toll. Pol. C. § 2879 330 regulations by supervisors. Pol. C. §2876 329 requirements for construction. Pol. C. §2873 328 r98 GENERAL INDEX. BRIDGES AND FERRI ES— Continued. Page. Toll bridge, sale of bridge to county. Pol. C. § 2881 330 supervisors, to grant authority. Pol. C. §2872 328 toll, avoidance of, penalty. Pen. C. § 389 418 toll, rate of to be prescribed by supervisors. Pol. C. § 2878 329 weight which may be put upon. Pol. C. §2876 329 Toll ferry, application for construction, to supervisors. Pol. C. § 2892 330 authority to construct, granted by supervisors. Pol. C. § 2893 331 notice of application for construction. Pol. C. §2892 330 notice of application for construction, proof of. Pol. C. § 2893 331 not to be chartered or licensed by legislature. Const., art. rv, § 25, subd. 25 4 penalties, disposition of. Pol. C. § 2895 332 regulations by supervisors. Pol. C. § 2894 331 toll, avoidance of, penalty. Pen. C. §389 418 violation of conditions of keeping, penalty. Pen. C. § 387 418 BROKERS. See, also, BROKERS, PERSONAL PROPERTY. Classification of, for county license purposes. Pol. C. § 3379 344 License tax imposed upon. Pol. C. §3379 344 BROKERS, PERSONAL PROPERTY. See Appendix Index, BROKERS. BUILDERS. Mechanical appliances, safety of, for those engaged in structural work. Pen. C. § 402c 418 BUILDING AND LOAN ASSOCIATIONS. See, also, Appen- dix Index, BUILDING AND LOAN COMMISSIONERS. Annual report of association. C. C. § 645 206 Application of provisions for co-operative business asso- ciations. C. C. § 6531 219 of provisions for non-profit co-operative corporations. C. C. § 653za '. 230 Arrears in payments, default, and forfeitures. C. C. § 639. 203 Articles of incorporation, amended on reincorporation. C. C. § 648a 208 what shall state. C. C. § 633 199 Associations defined. C. C. § 648 207 subject to state control. C. C. § 644 206 Bonds upon which loans may be made or in which funds may be invested. C. C. § 647 207 Capital stock, classification of. C. C. § 634 200 exemption from attachment or execution. C. C. P. § 690, subd. 19 392 exempt from execution, to one thousand dollars. C. C. § 643 205 of what shall consist. C. C. § 634 200 maturity of and order of payment. C. C. § 636 202 GENERAL INDEX. 7!>'.» BUILDING AND LOAN ASSOCIATIONS— Continued. Page. Capital stock, various forms of. C. C. § 648a 208 Definition of "building and loan associations." C. C. § 648.. 207 Directors, a majority of, may be selected from holders of guarantee stock. C. C. § 634 200 Dividends, on reserve fund. C. C. § 641 204 Foreign corporations, deposit required from. C. C. §646... 207 See, also, General Index, Foreign Corporations. Formation and powers of. C. C. § 633 199 with or without guarantee or capital stock. C. C. § 648a. 208 Interest on loans, security, and repayment. C. C. § 638... 203 Investments in bonds. C. C. § 647 207 Loans, arrears in payments on. C. C. § 639 203 interest on, security, and repayment. C. C. §638 203 restrictions on. C. C. § 637 202 upon bonds. C. C. § 647 207 Membership, qualifications for. C. C. §643 205 Minor, may hold stock. C. C. § 643 205 Profits and losses. C. C. § 641 204 Property, real, purchase of. C C. § 640 204 Reincorporation of existing associations. C. C. § 64Sa 208 Report, annual, of association. C. C. §645 206 Reserve fund. C. C. § 641 204 Retiring of free shares. C. C. § 635 201 Stockholders, withdrawal of. C. C. § 642 205 BUILDING AND LOAN COMMISSIONERS. Appendix Index. BUSINESS. Affairs and conditions may be inquired into by state. C. C. §§ 382, 383 84 Commenced within one year. C. C. § 358 72 Conducted by directors. C. C. § 305 44 Inquiry into, by attorney general. C. C. § 358 72 Limitation of. Const., art. XII, § 9 13 Place of, must be maintained. Const., art. XII, § 14 14 Principal place of, articles of incorporation must set forth. C. C. § 290 33 how changed. C. C. § 321a 53 Record of, to be kept. C. C. § 377 83 Resumption of, prior to suit for dissolution. C. C. §358... 72 Transfer of, as a whole. C. C. § 361a 77 BUTTER. Renovated or process, sale of, regulated. Pen. C. § 383a. . 417 BY-LAWS. Adopted, a code of, must be, within certain time. C. C. § 30] Il' certified and opened for public inspection. C. C. § 304... 43 Amendment or repeal of. C. C. § 304 43 Contents of. C. C. § 303 i:; may provide for issuance of certificates for stock prior to full payment. C. C. § 323 57 Corporate power to make. C. C. §354, subd. 6 7 GENERAL INDEX. BY-LAWS— Continued. Page. New, adopted, record must be made. C. C. 304 43 Repeal, must be recorded. C. C. § 304 43 Violation of, penalty may be prescribed. C. C. § 303, subd. 7 43 CANAL COMPANIES. See WATER AND CANAL COM- PANIES. CAPITAL STOCK. See, also, ASSESSMENTS; STOCK- HOLDERS. Action for recovery of, when sold for assessment. C. C. §347 68 limitation of time for. C. C. P. § 341 381 Amount of, articles must set forth. C. C. § 290, subd. 6 33 subscribed, articles to set forth. C. C. § 290, subd. 7 33 which must be represented at meetings. C. C. §312 49 Assessment, action by directors for recovery. C. C. § 349.. 69 directors may levy. C. C. § 331 63 limitation of. C. C. § 332 63 Attachment and sale of shares under execution. C. C. P. § 541 388 how effected. C. C. P. § 542, subd. 4 388 sale under execution. C. C. P. § 688 391 what exempt from. C. C. P. § 690 392 Buying or selling, in stock board, regulated by legislature. Const., art. IV, § 26 5 Certificate book, lost or destroyed, restoration. C. C. § 365 80 Certificates, issuance of, on what terms. C. C. § 323 57 lost or destroyed, how replaced. C. C. § 328 60 Change of principal place of business, consent necessary of holders of two thirds. C. C. § 321a 53 Classification of common or preferred in articles of incor- poration. C. C. § 290, subd. 6 33 Common, classification of, in articles. C. C. § 290, subd. 6. 33 Contracts for purchase or sale of, without intention to de- liver, void. Const., art. IV, § 26 5 Cumulative voting at elections of directors. C. C. § 307. ... 45 Deceased person, estate of, stock owned by may be repre- sented, how. C. C. § 313 50 Decrease of, to amount less than indebtedness, prohibited. C. C. § 359, subd. 5 72 Directors must be shareholders. C. C. §305 44 Division and distribution of, when authorized. C. C. § 309. 46 Fee for filing certificate of increase. Pol. C. 416, subd. 7.. 261 for filing certificate of decrease. Pol. C. § 416, subd. 8... 261 for issuing certificate of filing increase or decrease. Pol. C. §416, subd. 12 261 Fictitious buying or selling of, prohibited. Const., art. IV, §26 5 Form for increase or decrease. See Appendix Index, Forms and Precedents. Fraudulent disposition of. Pen. C. § 560, subds. 2, 3, 4, and 5 424 increase of. Pen. C. § 558 423 subscription for. Pen. C. § 557 423 GENERAL INDEX. 801 CAPITAL STOCK— Continued. Page. Highest bidder to be purchaser, when sold for assessment. C. C. § 342 67 Increase of, regulation. Const., art. XII, §11 14 or decrease of, by directors, only as provided. C. C. § 309 46 or decrease, certificate of to be filed, where. C. C. § 359, subd. 8 , 72 or decrease, form for. See Appendix Index, Forms and Precedents, or decrease, notice of meeting to be given and publica- tion made. C. C. § 359 72 or decrease, not to be effected by amending articles of incorporation. C. C. § 362 78 or decrease, two-thirds vote of stockholders required. C. C. § 359, subd. 1 72 Increasing or diminishing, division or distribution, by directors, liability for unlawful act. C. C. 309 46 manner of effecting. C. C. § 359 72 Insane person, estate of, stock owned by may be repre- sented, how. C. C. § 313 50 Issuance of, regulations. Const., art. XII, §11 14 Issued only for valid consideration. C. C. § 359 72 Jurisdiction to sell for assessment is acquired by notice. C. C. § 340 66 Lost or destroyed certificates, court may order new or duplicate. C. C. § 328 60 Margin, sale of stock on, prohibited. Const., art. IV, § 26.. 5 Married woman may transfe-r. C. C. § 325 58 dividends may be paid to. C. C. § 325 58 Minor, estate of, stock owned by may be represented, how. C. C. §313 50 Non-resident owner must give bond at time of transfer. C. C. § 326 59 Owners of shares are called stockholders. C. C. § 298 38 liability. C. C § 322 55 Personal property, and are transferable by indorsement and delivery. C. C. § 324 58 Power of corporations to sell for assessments. C. C. § 354, subd. 7 70 Preferred, classification of, in articles. C. C. § 290, subd. 6. 33 Record of, where kept. Const., art. XII, §14 14 transfer of shares. C. C. § 324 58 Recovery of, when sold for delinquent assessments. C. C. § 347 68 when sold, time limit for action. C. C. P. § 341 381 Sale, for assessment, corporation may purchase. C. C. §343 67 at public auction for assessment. C. C. § 341 66 under execution. C. C. P. § 688 391 Shares of, are not subject to taxation. Pol. C. § 3608 346 held in trust, liability. C. C. § 322 55 national bank stock. See Banks, National. §02 GENERAL INDEX. CAPITAL STOCK— Continued. Page. Sold for assessment and purchased by corporation, dis- position of. C. C. § 344 67 for delinquent assessment, action for recovery. C. C. 8 347 ". 68 for delinquent assessment, time of commencing- action to recover. C. C. P. 8 341 381 State not to be subscriber for. Const., art. XII, § 13 14 Taxation of, except national banks, forbidden. Pol. C. 8 3608 346 Transfer of shares, procedure. C. C. § 324 58 Voting power of, at elections for directors. Const., art. XII, 8 12 14 cumulative, at elections. C. C. 8 307 45 when portion owned by corporation. C. C. § 344 67 where common and preferred, the same. C. C. 8 290, subd. 6 33 Withdrawal of, liability of director. C. C. 8 309 46 When portion sold to corporation for assessment, majority of remaining shares to govern at meetings. C. C. § 344 67 CARRIERS. See, also, CANAL COMPANIES; CARRIERS, MARINE; CARRIERS OF MESSAGES; CARRIERS OF PERSONS; CARRIERS OF PROPERTY; RAIL- ROADS; STREET RAILROADS; TELEGRAPH AND TELEPHONE CORPORATIONS; TRANSPORTATION COMPANIES. Action against, for recovery of penalty. C. C. 8 2170 249 Birds, game, limit on shipment of. Pen. C. 8 627b 429 game, unlawful shipment of. Pen. C. § 627a 428 non-game, unlawful shipment of. Pen. C. 8 637d 431 transportation of, for scientific purposes. Pen. C. 8 637e. 431 Contract, special, may be made for limit of obligations. C. C. § 2174 250 for release of certain obligations, void. C. C. §2175 250 written, effect of acceptance. C. C. § 2176 251 Defined and described. C. C. § 2168 249 Description of. Const., art. XII, § 17 15 Fraudulent appropriation of property. Pen. C. §505 421 Game, limit of shipment of. Pen. C. § 627b 429 unlawful transportation of. Pen. C. § 627a 428 Interest in, by officers or employees, limited to ownership of stock. Const., art. XII, § 18 16 Liability, agreements in anticipation of, void in certain cases. C. C. § 2175 250 effect on of written contract. C. C. 8 2176 251 letters or packages of value, information required. C. C. § 2177 251 Obligation to carry. C. C. § 2169 249 Obligations, limited only by special contract. C. C. § 2174. 250 certain, can not be released. C. C. § 2175 250 Operation, failure to start on schedule time, penalty. C. C. 8 2170 249 starting at time and place announced. C. C. 8 2172 250 GENERAL INDEX. 803 CARRIERS— Continued. PAGE. Preference not to be given. C. C. §2170 249 which must be given. C. C. § 2171 250 Rates, compensation to be reasonable. C. C. §2173 250 when lowered in competition, not to be increased. Const., art. XII, § 20 16 Sharing of earnings forbidden. Const., art. XII, § 20 It) Time-tables established. C. C. § 2170 249 CARRIERS, MARINE. See, also, CARRIERS; CARRIERS OF PERSONS; CARRIERS OF PROPERTY. See, also. Appendix Index, EMIGRATION. Liability of. C. C. §2197 255 of marine carrier, further regulated by congress. C. C. § 2198 255 Perils cf the sea defined. C. C. § 2199 255 CARRIERS OF MESSAGES. See, also, CARRIERS; TELE- GRAPH AND TELEPHONE CORPORATIONS. Damages, in case of refusal or postponement of message. C. C. § 2209 257 Messages, by telegraph, order of transmission. C. C. § 2207 257 other than by telegraph, order of transmission. C. C. § 2208 257 Minors not to be sent to certain places. Pen. C. § 273e. . . . 408 CARRIERS OF PERSONS. See, also, CARRIERS; RAIL- ROADS; STREET RAILROADS. Baggage, delivery of at arrival of passenger. C. C. § 2183. . 252 liability for. C. C. § 2182 252 lien on for payment of fare. C. C. § 2191 254 manner of transportation. C. C. § 2183 252 obligation to carry. C. C. § 2180 251 of what may consist. C. C. § 2181 252 Bicycles, obligation to carry. C. C. §2181 252 Fare, lien on baggage for payment. C. C. § 2191 254 not payable after ejection. C. C. § 2190 254 payable on demand. C. C. § 2187 253 refusal to pay, ejection. C. C. § 2188 253 when additional may be collected. C. C. § 2189 253 Foreign corporations have same rights as domestic com- panies. C. C. § 407 92 Lien upon baggage for payment of fare. C. C. § 2191 254 Overloading of vehicle forbidden. C. C. § 2185 253 Rules for conduct of business. C. C. § 2186 253 violation of by passenger, ejection. C. C. §2188 253 Refusal to carry passenger, penalty. Pen. C. §365 414 Seat must be provided for every passenger. C. C. § 2185... 253 Vehicles in sufficient number must be provided. C. C. § 2184 253 CARRIERS OF PROPERTY. See, also, CARRIERS; RAIL- ROADS. Foreign corporations have same rights as domestic cor- porations. C. C. §407 92 804 GENEKAL ENDEX. CARRIERS OF PROPERTY— Continued. PAGE. Freight, delivered beyond usual route, proof in case of loss. C. C. §2202 256 delivery of, beyond usual route. C. C. § 2201 256 property, received as, may be held for charges. Pol. C. § 3152 338 sale of, when perishable. C. C. § 2204 256 unclaimed, may be sold for charges. Pol. C. § 3153 338 valuable, extent of liability. C. C. § 2200 256 Liability for delay. C. C. § 2196 255 for loss, exceptions. C. C. § 2194 254 for valuables, extent of. C. C. § 2200 256 in case of loss of freight consigned beyond usual route. C. C. §2202 256 when exemptions do not apply. C. C. § 2195 255 Perishable property, sale of. C. C. § 2204 256 Responsiblity of carrier, ceases, when. Pol. C. §3155 339 Service, other than carriage and delivery. C. C. § 2203.... 256 Valuables, extent of liability. C. C. § 2200 256 CEMETERY ASSOCIATIONS. See, also, CEMETERY COR- PORATIONS. Burial grounds for deceased members of non-profit cor- porations. C. C. § 595 ITS See, also, Non-Profit Corporations; Co-operative Busi- ness Associations. Church cemeteries. See Religious Corporations. CEMETERY CORPORATIONS. See, also, CEMETERY AS- SOCIATIONS; also, Appendix Index, CEMETERIES. Bonds, issuance of. C. C. § 611 192 Elections, voting power of members. C. C. § 609 192 Income from property, how applied. C. C. §616 194 Land, quantity which may be held. C. C. § 608 191 Lands, sale of, how effected. C. C. § 615 194 Lot owners, previous to purchase, rights of. C. C. § 614... 194 Lots or plats are inalienable, except under certain condi- tions. C. C. § 613 193 Members, voting power of. C. C. § 609 192 Payments required to be made on bonds. C. C. § 611 192 Perpetual care, provision for. C. C. § 612 193 Personal property, amount which may be held. C. C. §610.. 192 Plats or lots transferable only under certain conditions. C. C. §613 193 Property, for income, may be held. C. C. § 616 194 Report to be made annually by directors. C. C. § 609 192 Title, may take and hold, for consideration. C. C. § 612.... 193 CERTIFICATES. Forms. See Appendix Index, Forms and Precedents. Lost or destroyed, how replaced. C. C. § 365 80 See, also, Books and Records; also, Appendix Index, Certificates. CERTIFICATES OF INCORPORATION. Issued by secretary of state. -C. C. § 296 37 fee for issuance. Pol. C. § 416, subd. 6 261 See, also, Articles of Incorporation. GENERAL INDEX. 805 CERTIFICATES OF INVESTMENT. See INVESTMENT COMPANIES. CHAMBERS OF COMMERCE. See COMMERCE, TRADE, AND MECHANIC ARTS. CHANGE OF NAME. See NAME. CHARTERS. See, also, EXISTENCE. Page. Existing at time of adoption of constitution, not valid un- less operations begun. Const., art. XII, §6 12 Legislature not to extend. Const., art. XII, §7 12 CHILDREN AND ANIMALS. Aid from magistrates and public officers. C. C. § 607c... 188 Agents and members, authorized to act as police officers. C. C. § 607f 189 Child, may be arrested, under certain conditions. C. C. § 607g 190 may be committed as provided for. C. C. § 607g 190 Complaints by society for violation of law. C. C. § 607b 187 Corporations for protection of, how formed. C. C. §607.. 187 Fines, penalties, and forfeitures, disposition of. C. C. § 607e 188 Members and agents, authorized to act as police officers. C. C. § 607f 189 Pre-existing corporations, how affected. C. C. § 607d 188 Property held by. C. C. § 607a 187 Weapons, in cities of the first class, permission to carry must be obtained from police commissioners. C. C. § 607f 189 CHINESE. Corporations not to employ. Const., art. XIX, § 2 26 Employment of, by corporations or corporation officers forbidden. Pen. C. §§ 178, 179 408 CHURCHES. See, also, RELIGIOUS CORPORATIONS. Are exempt from taxation. Const., art. XIII, § iy 2 20 Buildings, used for religious purposes exclusively," exempt from taxation. Pol. C. §3611 347 CITIES. See, also, Appendix Index, FRANCHISES; MU- NICIPAL CORPORATIONS. Authority of common council to grant certain privileges. Pol. C. §4410 375 of common council to make certain contracts. Pol. C. § 4412 376 Reservations by, in case of granting certain privileges. Pol. C. §4411 375 in making certain contracts. Pol. C. §4413 376 Water companies, contracts or grants by cities or towns. C. C. §§548, 549 156 CODES. Civil, portions relating to private corporations 27 terms used in, definitions. C. C. § 14 28 Civil Procedure, portions relating to private corporations.. 377 terms used in, definitions. C. C. P. § 17 378 806 GENERAL INDEX. CODES -Continued. PAGE. Penal, portions relating' to private corporations 405 terms used in. definitions. Pen. C. §7 405 Political, portions relating to private corporations 258 terms used in. definitions. Pol. C. § 17 259 terms used in, definitions (taxation). Pol. C. §3617 348 COLLEGES AND INSTITUTIONS OF HIGHER EDUCA- TION, CONSOLIDATION. See, also, COLLEGES AND SEMINARIES OF LEARNING; RELIGIOUS CORPO- RATIONS. Authorization to consolidate, under certain conditions. C. C. §652 211 Consolidated corporations, how organized. C. C. §652 211 Dissolution of corporations absorbed by new corporation. C. C. §653 212 Grants, disposition of. C. C. § 653 212 Property, conveyance of, to new corporation. C. C. § 653.. 212 Trustees, number and election of. C. C. §652 211 COLLEGES AND SEMINARIES OF LEARNING. See, also, COLLEGES AND INSTITUTIONS OF HIGHER EDU- CATION, CONSOLIDATION; NON-PROFIT CORPO- RATIONS; RELIGIOUS CORPORATIONS. Articles of incorporation, what must contain. C. C. § 649.. 209 Business, place of. need not be maintained by educational corporations. Const., art. XII, § 14 14 By-laws of. C. C. § 650, subd. 12 209 Educational corporations, existing, may reincorporate. C. C. §651 210 Property handled by. C. C. §650, subds. 5 and 6 209 Reincorporation of existing corporations, how effected. C. C. § 651 210 Trustees, number of. C. C. § 649, subd. 4 209 powers and term of. C. C. § 650 209 COMMERCE, TRADE, AND MECHANIC ARTS. Articles of incorporation to be filed. C. C. § 591 174 Assessments, power to levy and collect. C. C. § 592d 176 By-laws must provide for certain matters. C. C. § 592c... 176 Capital stock and certificates may be issued. C. C. §592... 175 Commerce or manufacture, corporations not to engage in. C. C. §591 174 Directors or trustees, and their powers. C. C. § 592a 175 Formation of, by twenty or more persons. C. C. §591 174 Pre-existing corporations may acquire powers and privil- eges. C. C. § 592e 176 Property, provisions for. C. C. § 592b 175 Stockholders have distinct rights apart from members. C. C. S •">!'- 175 COMMON CARRIERS. See CARRIERS. CONSOLIDATION. Bonded indebtedness. C. C. §359, subd. 6 72 Specified corporations. See name headings, as Colleges, Mining Corporations. Railroads. GENERAL INDEX. 807 CONSTITUTION OF CALIFORNIA. Pack. Actions against corporations, where commenced. Art. XII, §16 15 Associations and companies, what are included in term "corporations." Art. XII, S 4 12 Banking corporations, formed under general laws. Art. XII, §5 12 Banks, not to circulate anything but lawful money. Art. XII, §5 12 public money may be deposited with. Art. XI, § 16 J/2 7 Benevolent and charitable organizations, need not maintain place of business. Art. XII, S 14 14 Bonded indebtedness, increase of, regulation. Art. XII, § 11 14 Bonds are property, subject to taxation. Art. XIII, §1.... 19 issuance of, regulations. Art. XII, § 11 14 Bridges, not to be chartered or licensed by legislature. Art. IV, § 25. subd. 25 4 Business, limitation of. Art. XII, §9 13 place of, must be maintained. Art. XII, § 14 14 place of, need not be maintained by benevolent, educa- tional, or religious organizations. Art. XII, §14 14 Canal companies. See, also. Carriers. are common carriers. Art. XII, § 17 15 subject to legislative control. Art. XII, § 17 15 Capital stock, contracts for purchase or sale of, without intention to deliver, void. Art. IV, § 26 5 fictitious buying or selling of, prohibited. Art. IV, § 26.. 5 increase of, regulation. Ait. XII, § 11 14 issuance of, regulations. Art. XII, § 11 14 not to be subscribed for by state. Art. XII, § 13 14 record of, where kept. Art. XII, § 14 14 voting power of, at elections for directors. Art. XII, § 12 14 Carriers. See, also, Canal Companies; Railroads; Trans- portation companies. common, description of. Art. XII, § 17 15 interest in, by officers or employees, limitation on. Art. XII, § 18 16 rates, when lowered in competition, not to be increased. Art. XII, § 20 16 sharing of earnings forbidden. Art. XII, § 20 16 Charters, existing at time of adoption of constitution, not valid unless operations begun. Art. XII, §6 12 not to be extended by legislature. Art. XII. § 7 12 not to be issued by legislature to ferries, bridges, or roads. Art. IV, § 25, subd. 25 4 Churches are exempt from taxation. Art. XIII, § l\(, 20 Chinese not to be employed. Art. XIX, S 2 26 Convict labor, not to be let out by contract to corpora- tions. Art. X, § 6 7 Co-operative associations, elections in, how conducted. Art. XII, § 12 14 Corporate existence, extension of. Art. XII, S7 12 808 GENERAL INDEX. CONSTITUTION OF CALI FORN I A— Continued. Page. Credit, public, giving or lending of by legislature, pro- hibited. Art. IV, § 31 6 not to be loaned or subscriptions made to capital stock by state. Art. XII, § 13 14 Definition of term "corporations." Art. XII, §4 12 Directors, election of, voting power of stock. Art. XII, §12 14 liability of. Art XII, § 3 11 Dues from corporations, how secured. Art. XII, § 2 11 Educational corporations need not maintain a place of busi- ness. Const., art. XII, § 14 14 Elections, for directors, voting power of stock. Art. XII, §12 14 Eminent domain, corporation not to obstruct rights of way to navigable waters. Art. XV, § 2 25 corporate property subject to. Art. XII, § 8 13 corporate right of way. Art. I, § 14 2 water front, right to, exists in state. Art. XV, §1 25 Equalization, boards of, state and county, how constituted and elected. Art. XIII, § 9 21 powers of. Art. XIII, § 9 21 Existence of corporation, how extended. Art. XII, §7 12 Extension of corporate existence, how effected. Art. XII, §7 12 Ferries, not to be chartered or licensed by legislature. Art. IV, § 25, subd. 25 4 Fines, not to be remitted by legislature. Art. IV, § 25, subd. 26 4 Foreign corporations, not to be allowed more favorable conditions than domestic corporations. Art. XII, § 15.. 15 Forfeitures, not to be remitted by legislature. Art. IV, § 25, subd. 26 4 Formation of corporations to be under general laws. Art. XII, §1 10 Franchises, are property, subject to taxation. Art. XIII, §1 19 existing at time of adoption of constitution, not valid unless operations begun. Art. XII, § 6 12 not to be extended by legislature. Art. XII, §7 12 transfer of, does not release liability. Art. XII, §10 13 water companies, right to collect rates by, is a franchise. Art. XIV, § 2 25 Gas corporations. See, also, Lighting corporations. use of streets for pipes and conduits. Art. X, § 19 8 charges by, when regulated by legislature. Art. IV, § 33 6 Immunities, limitations on. Art. I, § 21 2 special, not to be given by legislature. Art. IV, § 25, subd. 19 4 Income tax, assessment and collection of. Art. XIII, § 11.. 23 Interest, rate of, not to be regulated by legislature. Art. IV, § 25, subd. 23 4 GENERAL INDEX. 809 CONSTITUTION OF CALIFORNIA— Continued. Page. Land, large holdings of, discouraged. Art. XVII, § 2 26 Lands, tide, not to be granted or sold to corporations. Art. XV, §3 25 Laws, general only to be passed, when can be made applicable. Art. IV, § 25, subd. 33 4 of general nature, to have uniform operation. Art. I, §11 ] special, forbidden in enumerated cases. Art. IV, § 25.... 4 Legislation, releasing or extinguishing obligations, forbid- den. Art. IV, § 25, subd. 16 4 relating to corporations, legislature to pass. Art. XII, § 24 19 special, forbidden, in enumerated cases. Art. IV, §25.. 4 Liabilities, not released by transfer of franchise. Art. XII, §10 13 Licenses, not to be issued by legislature to ferries, bridges, or roads. Art. IV, § 25, subd. 25 4 Lighting corporations, use of streets by. Art. X, § 19 8 See, also, Gas corporations. Lotteries, prohibited. Art. IV, § 26 5 Money, lawful, only, to be circulated. Art. XII, §5 12 rate of interest on, not to be regulated by legislature. Art. IV, § 25, subd. 23 4 state, county, and municipal, may be deposited in banks. Art. XI, § 16^ 7 Mortgages, taxation of. Art. XIII, § 4 21 Municipal functions, not to be delegated to corporations. Art. XI, § 13 7 Organization of corporations, to be under general laws. Art. XII, § 1 10 Penalties, not to be remitted by legislature. Art. IV, § 25, subd. 26 4 Privileges, exclusive, forbidden. Art. IV, §25, subd. 19 4 special, limitations. Art. I, § 21 2 Private property can not be taken without compensation. Art. I, § 14 2 rights of. Art. I, § 14 2 Property, assessment of, where and by whom. Art. XIII, §10 23 definition of. Art. XIII, § 1 19 taxation of. Art. XIII, § 1 19 Public credit, giving or lending of by legislature, pro- hibited. Art. IV, § 31 6 not to be loaned or subscriptions made by state. Art. XII, § 13 14 Public officers not to accept passes from transportation companies. Art. XII, § 19 16 Railroad commissioners, election of by districts. Art. 17, §22 17 powers of. Art. XII, § 22 17 Railroad districts, apportionment of state into. Art. XII, §22 17 counties contained in first apportionment. Art. XII, § 23 19 S10 GENERAL INDEX. CONSTITUTION OF CALI FORN I A— Continued. Page. Railroads are common carriers. Art. XII, §17 15 assessment of property, where made. Art. XIII, §10.... 23 discrimination by, forbidden. Art. XII, §21 17 taxation of, in case of mortgages. Art. XIII, § 4 21 not to issue passes to public officers. Art. XII, § 19 16 rates, when lowered in competition, not to be increased. Art. XII, § 20 ; 10 rights of connection, crossing, or intersection. Art. XII, § 17 15 subject to legislative control. Art. XII, §17 15 See, also, Carriers. Real estate, holding of limitations on. Art. XII, § 9 13 Religious organizations, need not maintain place of busi- ness. Art. XII, § 14 14 Rights of way to navigable waters not to be obstructed. Art. XV, § 2 25 of corporations. Art. I, § 14 2 See, also, Eminent Domain. Roads not to be chartered or licensed by legislature. Art. IV, § 25, subd. 25 4 Securities, taxation of. Art. XIII, § 4 21 State aid of private corporations forbidden. Art. IV, § 22.. 3 not to loan credit to or subscribe for stock of corpora- tions. Art. XII, § 13 14 Stockholders, liability of. Art. XII, § 3 11 Storage corporations. See Warehousemen. Suits against corporations, where instituted. Art. XII, § 16 15 Taxation, churches exempt from. Art. XIII, § H/ 2 20 of incomes, assessment and collection of. Art. XIII, §11 23 of mortgages. Art. XIII, § 4 21 of securities. Art. XIII, § 4 21 legislature to pass laws to enforce. Art. XIII, § 13 23 property subject to. Art. XIII, § 1 19 property, where and by whom assessed. Art. XIII, § 10.. 23 Telegraph corporations, charges by, to be regulated by legislature. Art. IV, § 33 C Transportation companies. See, also, Canal Companies; Carriers; Railroads. are common carriers. Art. XII, § 17 15 discrimination by, forbidden. Art. XII, § 21 : 17 not to issue passes to public officers. Art. XII, § 19 16 subject to legislative control. Art. XII, § 17 15 Trustees, boards of. See Directors. Warehousemen, storage corporations, charges by, when regulated by legislature. Art. IV, § 33 6 Water, right to collect rates for, is a franchise. Art. XIV, § 2 25 use of, when public use. Art. XIV, § 1 24 Water companies, rates to be fixed by law. Art. XIV, § 1.. 24 right to collect rates is a franchise. Art. XIV, § 2 25 use of streets by, for pipes. Art. X, § 19 8 use of water by, subject to state control. Art. XIV, § 1.. 24 GENERAL INDEX. 811 CONSTITUTION OF CALI FORN I A— Continued. Page. Water front, access to, not to be obstructed. Art. XV, § 2. 25 eminent domain exists in state. Art. XV, SI 25 tide lands fronting on, to be withheld from grant or sale. Art. XV, § 3 25 Wharfage corporations, charges by, when regulated by legislature. Art. IV, § 33 6 CONTRACTS. See, also, FRANCHISES. Corporate power to enter into. C. C. §354, subd. S 70 CONTROLLER OF STATE. County clerks to notify of county rate of taxation. Pol. C. § 3667 300 Duty of, with reference to record of railway assessments. Pol. C. § 3667 360 Publication by, of notice of taxation. Pol. C. § 3668 361 Suit by, for delinquent taxes. Pol. C. § 3670 364 See, also, Equalization; Property; Taxation. CONVICT LABOR. Contracting of, to corporations forbidden. Const., art. X. §6 7 CO-OPERATIVE ASSOCIATIONS. Agricultural, mercantile, and manufacturing, elections in. how conducted. Const., art. XII, §12 14 Fees for filing articles with secretary of state, specified. Pol. C. § 416, subd. 4 261 CO-OPERATIVE ASSOCIATIONS, AGRICULTURAL, VITI- CULTURAL, AND HORTICULTURAL, NON-PROFIT. Agents or officers, power of association to appoint. C. C. § 653v. subd. 1 223 Articles of incorporation, amendment of. C. C. § 653r 221 amendment of, in certain cases. C. C. § 650o 221 must set forth certain facts. C. C. § 653o 221 Business, may be inquired into by state. C. C. § 653s 225 By-laws, adoption of. C. C. § 653p 222 contents of. C. C. § 653p 222 Capital stock, not to issue. C. C. § 653n 220 Consolidation. C. C. § 653q, subd. 3 223 Directors, election of. C. C. § 653p, subds. 1 and 2 222 number of. C. C. § 653o, subd. 5 221 number of, provided for in by-laws. C. C. § 653p 222 Dissolution. C. C. § 653q, subd. 4 22:; Existence, term of. C. C. § 653o, subd. 4 221 Existing corporations, privilege of reincorporation. C. C. § 653r 224 Formation of. C. C. § 653m 220 Members, number, qualification, and withdrawal. C. C. § 653p, subd. 5 222 payment by, of fees or other compensation to association. C. C. § 653p, subd. 4 222 power of association to admit or ex"pel. C. C. § 653q, subd. 1 223 voting power of. C. C. § 653o, subd. 6 221 812 GENERAL INDEX. CO-OPERATIVE ASSOCIATIONS, ETC.— Continued. Page. Membership, conditions of. C. C. § 653p, subd. 3 222 forfeiture of. C. C. § 653q, subd. 1 223 qualifications for. C. C. § 653n 220 transfer of. C. C. § 653n 220 Non-profit in character. C. C. § 653n 220 Powers of corporation. C. C. § 653m 220 enumerated. C. C. § 653q 223 Property. C. C. § 653q, subd. 2 223 Proxies, by-laws to regulate use of. C. C. § 653p, subd. 6.. 222 Quorum, by-laws to provide for. C. C. § 653p 222 Reincorporation of existing corporations. C. C. § 653r 224 CO-OPERATIVE ASSOCIATIONS, BUSINESS. Application of title, to certain corporations. C. C. § 6531... 219 Articles of association. C. C. § 653d 215 fee for filing. Pol. C. § 416, subd. 4 261 fee for filing amended. Pol. C. § 416, subd. 10 261 fee for recording. Pol. C. § 416, subd. 5 261 of consolidated associations. C. C. § 653i 218 Associates and members, admission of. C. C. § 653h 217 Attachments and executions, liability in connection with. C. C. § 653f 217 Benevolent associations. C. C. § 653b 214 Books to be kept. C. C. § 653e 215 Business, right to do, inquh-y into by attorney general. C. C. § 653k 219 principal place of. C. C. § 653d 215 By-laws, adoption of. C. C. § 653e 215 Capital stock, not to issue. C. C. § 653b 214 Certificates of membership to be issued. C. C. § 653b 214 Consolidation of associations. C. C. § 653i 218 Directors and officers, term and compensation. C. C. § 653e 215 Dissolution. C. C. § 653j 219 Educational associations. C. C. § 653b 214 Elections. C. C. § 653c 214 conduct of. C. C. § 653e 215 Existence, term of. C. C. § 653d 215 Fees and dues of members. C. C. § 653e 215 Formation of. C. C. § 653b 214 form for. See Appendix Index, Forms and Precedents. Indebtedness, by-laws must provide for. C. C. § 653c 214 contraction of. C. C. § 653h 217 liability for. C. C. § 653f 217 Industrial associations. C. C. § 653b 214 Members, interest of. C. C. § 653e 215 rights of. C. C. § 653c 214 voting power of. C. C. § 653c 214 Membership, qualifications for. C. C. § 653c 214 succession of. C. C. § 653e 215 transfer of. C. C. § 653b 214 Political associations'. C. C. § 653b 214 Powers. C. C. § 653h 217 GENERAL INDEX. 813 CO-OPERATIVE ASSOCIATIONS, BUSIN ESS— Contd. Page. Profits, division of among members, by-laws to provide time and manner. C. C. § 653e 215 Property, real and personal. C. C. § 653h 217 Purposes, alteration of. C. C. § 653g 217 Social associations. C. C. § 653b 214 CO-OPERATIVE CORPORATIONS, BUSINESS. By-laws of, what may provide. C. C. § 653a 213 Formation of, for any lawful business. C. C. § 653a 213 Profits, how divided. C. C. § 653a 213 may be divided among persons other than stockholders. C. C. § 653a 213 CO-OPERATIVE CORPORATIONS, NON-PROFIT. Articles of incorporation, amendment of. C. C. § 653y 229 what must set forth. C. C. § 653v 226 Application of laws to certain corporations. C. C. § 653za.. 230 Business, inquiry into, may be made by state. C. C. §653z 230 By-laws, adoption of. C. C. § 653w 227 Capital stock, not to issue. C. C. § 653u 226 Consolidation with other like corporations. C. C. § 653x, subd. 3 228 Directors, how removed. C. C. § 653w, subd. 1 227 number of. C. C. § 653v, subd. 5 226 Dissolution. C. C. § 653x, subd. 4 228 Existence, term of. C. C. § 653v, subd. 4 226 Formation of corporation. C. C. § 653t 225 original members to subscribe to articles of incorporation. C. C. § 653v, subd. 7 226 Members, number and qualification. C. C. § 653w, subd. 4. 227 three may organize. C. C. § 653t 225 voting powers of, determined. C. C. § 653v, subd. 6 226 voting powers of, when unequal. C. C. § 653zb 230 Membership fee. C. C. § 653w, subd. 3 227 how constituted. C. C. § 653u 226 transfer of. C. C. § 653u 226 when shall cease. C. C. § 653w, subd. 2 227 Powers of corporation enumerated. C. C. § 653x 228 Purposes. C. C. § 653t 225 Property rights. C. C. § 653x, subd. 2 22S CORPORATE EXISTENCE. See EXISTENCE. CORPORATION LAWS. See LAWS. CORPORATION SOLE. See RELIGIOUS CORPORATIONS. COUNTIES. Credit of, not to be loaned to corporations. Pol. C. § 4004.. 369 Franchises and contracts. See Franchises; Supervisors; see, also, Appendix Index, Franchises. Taxation by, basis of. Pol. C. § 3671 365 equalization of state taxes among. Pol. C. § 3692. 365 814 GENERAL INDEX. COUNTY CLERKS. See, also, FEES. Page. Fees of. Pol. C. § 4300a 372 COURTS OF JUSTICE. See, also, HOLIDAYS. Days when business may be transacted. C. C. P. § 133 379 Holidays, appointments on. C. C. P. § 135 380 are non-judicial days. C. C. P. § 134 380 special, restriction on judicial business. C. C. P. § 135... 3S0 CREDIT, PUBLIC. Giving or lending of by legislature, prohibited. Const., art. IV, § 31 6 Not to be loaned or subscriptions made to capital stock by state. Const., art. XII, § 13 ". 14 Of counties, not to be loaned. Pol. C. § 4004 369 CREMATORIES. See Appendix Index, CEMETERIES; CREMATORIES. DEBENTURE INVESTMENT. See INVESTMENT COM- PANIES. DEBTS AND CREDITS. See, also, BONDS AND IN- DEBTEDNESS. Credits, assessment of, statement required by assessor. Pol. C. § 3629 353 denned for purposes of taxation. Pol. C. § 3617, subd. 6.. 348 Debt, denned for purpose of taxation. Pol. C. § 3617, subd. 6 348 Debts and credits, attachment of, how effected. C. C. P. § 542, subd. 5 388 DEFINITIONS. Articles of incorporation denned. C. C. § 289 33 Corporation defined by constitution. Const., ait. XII, §4.. 12 denned by Civil Code. C. C. § 283 31 Director defined in relation to certain offenses. Pen. C. § 572 428 Members and stockholders defined. C. C. § 298 38 Public and private corporations defined. C. C. §284 31 Terms and words used in Civil Code. C. C. § 14 28 used in Code of Civil Procedure. C. C. P. § 17 378 used in Penal Code. Pen. C. §7 405 used in Political Code. Pol. C. § 17 259 used in Political Code (taxation). Pol. C. §3617 348 DIRECTORS. See, also, CAPITAL STOCK; ELECTIONS; MEETINGS. Absent from meeting, assent presumed to illegal acts unless dissent be recorded. Pen. C. § 570 427 Action of, on continuance of existence under code. C. C. § 287 32 on extension of corporate existence. C. C. § 401 88 on renewal of corporate existence. Const., art. XII, § 7.. 12 Actions against, to be commenced within three years. C. C. P. § 359 382 for recovery of stock sold for delinquent assessment, within six months. C. C. § 347 6S GENERAL INDEX. 815 DIRECTORS— Continued. Page. Articles of incorporation must state names and number of. C. C. § 290, subd. 5 33 Assessments, power to levy. C. C. § 331 63 Business of corporation to be conducted by. C. C. § 305. ... 44 capital stock held by, amount to be fixed by by-laws. C. C. § 305 44 Chosen from among members or stockholders. C. C. § 305.. 44 Election, annually. C. C. § 302 42 by-laws may provide for mode and manner of. C. C. § 303, subd. 4 43 how conducted. C. C. § 307 45 new election may be ordered by court. C. C. § 315 51 notice of election, how given. C. C. §§ 301, 302 42 •notice of election, waivure of by stockholders. C. C. § 302 * 42 postponement of. C. C. § 314 50 voting power of stock. Const., art. XII, § 12 14 voting power of stock, cumulative. C. C. § 312 49 voting power of stock, when portion owned by corpora- tion. C. C. § 344 67 False reports by, civil liability. C. C. § 316 51 criminal liability. Pen. C. § 564 426 See, also, Appendix Index, Fraudulent Reports. Fraud, definition of term "director" in relation thereto. Pen. C. § 572 428 in organization or increase of capital stock. Pen. C. §558 423 keeping accounts or records. Pen. C. § 563 425 Fraudulent action by. Pen. C. § 560 424 Increase or decrease of, by vote of stockholders. C. C. § 290 33 certificate of, to be filed. C. C. § 290, subd. 5 33 fee for filing certificate of increase or decrease with sec- retary of state. Pol. C. § 416, subd. 17 261 for issuing of certificate by secretary of state of in- crease or decrease of. Pol. C. § 416, subd. 18 261 form of certificate to be used by corporation. See Appen- dix Index, Forms and Precedents. Liability of. Const., art. XII, § 3 11 civil, for false records or reports. C. C. § 316 51 contract to relieve, is void. C. C. § 327 59 for certain acts during administration, statute of limita- tions not to apply. C. C. § 309 46 for embezzlement during administration. Const., art. XII, §3 11 Majority of members of hoard must be residents of Cali- fornia. C. C. § 305 44 Meeting, absent from, assent presumed to illegal acts unless dissent be recorded. Pen. C, S 570 427 held at office or principal place of business. C. C. S 319.. 52 notice uf. by-laws to prescribe. (\ ('. §303, subds. 1 and 8 43 notice of special, how given. C. C. § 320 52 816 GENERAL INDEX. DIRECTORS— Continued. Page. Meetings, presence at meeting deemed concurrence in pro- ceedings, unless dissenting in writing. Pen. C. § 569... 427 time of, by-laws to prescribe. C. C. § 303, subd. 1 43 Must be elected on first Tuesday in June, unless by-laws provide otherwise. C. C. § 302 42 Notice of election, or waivure thereof. C. C. §§ 301, 302 42 Number of, articles of incorporation must state. C. C. § 290, subd. 5 33 not less than three C. C. § 305 44 not to be changed by amending articles of incorporation. C. C. § 362 78 Organization of board. C. C. § 308 46 Powers of, in relation to debts, capital stock, and divi- dends. C. C. § 309 46 in relation to the levy of assessments. C. C. § 331 63 to settle affairs at dissolution. C. C. § 400 87 Presumed to have knowledge of affairs of corporation. Pen. C. §568 427 Present at meeting, deemed to consent to proceedings, un- less dissenting in writing. Pen. C. § 569 427 Qualifications and duties, by-laws may provide. C. C. § 303, subd. 4 43 for election as directors, certain prescribed. C. C. §305 44 Quorum of, a majority. C. C. § 308 46 must be present to make meetings valid. C. C. § 305 44 Removal from office. C. C. § 310 48 Trustees for creditors at dissolution. C. C. § 400 87 Vacancies in board, how filled. C. C. § 305 44 DISSOLUTION. Attorney general may sue for on behalf of state. C. C. §358 72 Capital stock, division and distribution of, at time of, by directors. C. C. § 309 46 Creditor may apply for, when. C. C. § 358 72 Directors are trustees unless otherwise ordered. C. C. §400 87 Fee for filing copy of decree of court. Pol. C. § 416, subd. 25 261 Legislative power to dissolve all corporations. C. C. § 404. 90 Voluntary, appeal from judgment roll. C. C. P. §1233 399 application made to superior court. C. C. P. § 1227 398 application, objections to. C. C. P. § 1231 399 application, publication of. C. C. P. § 1230 399 application, verification and signatures required. C. C. P. §1229 399 application, what to contain. C. C. P. § 1228 39S application, when heard. C. C. P. § 1232 399 appointment of receiver. C. C. P. § 564 390 appointment of receivers by court. C. C. P. § 565 391 order of court for dissolution, by superior court. C. C. P. § 1232 399 GENEBAL INDEX. 817 DISSOLUTION— Continued. Page. Voluntary, order of court for dissolution, copy of decree to be filed with secretary of state. C. C. P. § 1232 399 order of court, form. See Appendix Index, Forms and Precedents. DISTRICT ATTORNEY. Examination by, of affairs of corporations when required by governor. C. C. § 382 84 DIVIDENDS. See, also, CAPITAL STOCK; DIRECTORS. Can be made from surplus profits only. C. C. § 309 46 Fraudulent making of, penalty. Pen. C. §560 424 EDUCATIONAL ASSOCIATIONS. See, also, COLLEGES AND SEMINARIES; CO-OPERATIVE BUSINESS ASSOCIATIONS; NON-PROFIT CORPORATIONS. Business, place of, need not be maintained. Const., art. XII, § 14 14 Incorporation as co-operative business association. C. C. S 653b 214 ELECTIONS. See, also, CAPITAL STOCK; DIRECTORS; MEETINGS; MEMBERS; PROXIES; STOCKHOLD- ERS. Annual, must be held. C. C. § 302 42 Ballots and manner of voting. C. C. § 307 45 Complaints may be referred to superior court. C. C. §315. 51 to superior court, election may be set aside. C. C. § 312. . 49 Capital stock, amount which must be represented. C. C. §312 49 how voted. C. C. § 307 45 when portion owned by corporation. C. C. § 344 67 Conduct of. Const., art. XII, § 12 14 Cumulative voting. C. C. § 307 45 New, may be ordered by superior court in certain contin- gencies. C. C. § 315 51 Notice of, how given. C. C. 301, 302 42 how given, by-laws to provide. C. C. § 303, subd. 4 43 may be waived. C. C. § 302 42 Officers, other than directors, by-laws mav provide for. C. C. § 303, subd. 6 4?. Representation at, of capital stock. C. C. § 312 49 of members or stockholders. C. C. § 312 49 of minors, insane, or deceased persons. C. C. § 313 50 Postponement of. C. C. § 314 50 Set aside, may be, by superior court. C. C. § 312 49 Time of, may be fixed by by-laws. C. C. § 303, subd. 4 43 Waivure of notice by stockholders. C. C. § 302 42 ELECTRIC LIGHT COMPANIES. See LIGHTING COR- PORATIONS. EMINENT DOMAIN. See, also, RIGHTS OF WAY. Corporate property subject to. Const., art. XII, §8 13 Corporation not to obstruct rights of way to navigable waters. Const., art. XV, § 2 L'.'i 35 — ci. SIS GENERAL INDEX. EMINENT DOMAIN— Continued. Page. Right of way of corporation. Const., art. I, §14 2 Water front, right to, exists in state. Const., art. XV, § 1. 25 EQUALIZATION, STATE BOARD OF. Assessment by, basis for county rate. Pol. C. § 3671 365 Blank forms, prescribed for statements to assessors. Pol. C. § 3630 354 Election and powers. Const., art. XIII, §9 21 Powers and duties enumerated. Pol. C. §3692 365 Railroad franchises and other property, assessment of, how and when. Pol. C. § 3665 357 Railroad property, assessment of. Pol. C. §3664 356 Railway assessments, record of apportionment of. Pol. C. § 3666 359 Railways, assessment of property of. Pol. C. § 3628 351 EXECUTION. See ATTACHMENT AND EXECUTION; PROPERTY. EXECUTORS. See, also, BANKS. See, also, Appendix In- dex, BANKS AND BANKING; EXECUTORS. Amount of capital stock which must be subscribed before doing- business. C. C. § 290a 35 Appointment of corporation to act as. C. C. P. § 1348 403 Must comply with certain conditions before can use word "trust." C. C. § 290 1 ._, 35 EXISTENCE. Articles of incorporation must state term for which or- ganized. C. C. § 290, subd. 4 33 Begins upon issuance of certificate of incorporation by sec- retary of state. C. C. § 296 37 Can not be extended by amending articles of incorporation. C. C. §362 78 Certificate of continuance filed, where. C. C. §287 32 of continuance, issued by secretary of state. Pol. C. §416, subd. 14 261 of extension to fifty years, filed, where. C. C. § 401 88 of renewal of existence for fifty years, to be filed. Const.. art. XII, §7 12 Continuance of, may be for time prescribed by law. C. C. § 283 31 under code. C. C. § 287 32 Corporations formed prior to adoption of codes, how af- fected. C. C. § 288 32 Extension of, for full term of fifty years from incorporation when originally incorporated for shorter period. C. C. §401 SS renewal of incorporation for fifty years further. Const., art. XII, § 7 12 Fees for filing and issuing certificates of continuance of existence. Pol. C. § 416, subds. 13 and 14 261 Forms and precedents for certificate of continuance. See Appendix Index. GENERAL INDEX. S19 EXISTENCE— Continued. Page. Term of, articles of incorporation must set forth. C. C. § 290, subd. 4 33 to commence upon filing articles and issuance of certifi- cate. C. C. § 290 37 EXPLOSIVES. Record of to be kept. Pen. C. § 375a 410 FARM NAME. Registered as trade-mark. Pol. C. § 3196a 340 Use of, as trade-mark. Pol. C. § 3190b 341 FEES. County clerk. Pol. C. § 4300a 372 Insurance commissioner. Pol. C. § 605 282 Secretary of state. Pol. C. § 410 261 See Secretary of State. FERRIES. See BRIDGES AND FERRIES. FISH WAYS. Fish, screens for protection of. Pen. C. §629 429 Fishways must be provided bv corporations using streams. Pen. C. §637 430 FOREIGN CORPORATIONS. Actions against, evidence required. C. C. § 400 91 against, for failure to file copies of articles of incorpo- ration. C. C. § 410 93 can not be maintained or defended unless articles are filed as required. C. C. § 400 65 manner of commencing. C. C. P. § 411 384 secretary of state, service on, when valid. C. C. § 405. ... 91 security for cost's may be required by defendant in action brought by foreign corporation. C. C. P. § 1030 394 security for costs, not given, action may be dismissed. C. C. P. § 1037 395 service of process in actions against. C. C. § 405 91 summons, publication of, in certain cases. C. C. P. § 412. 384 Agent, appointment of, required. C. C. § 405 91 revocation and designation of new. C. C. § 400 91 fee for filing designation of, with secretary of state. Pol. C. §410, subd. 20 201 Articles of incorporation, certified copies must be filed, where. C. C. § 40S 93 corporations exempt from provisions which have com- plied with provisions of certain acts. C. C. § 410 93 failure to file articles, penalty. C. C. § 410 91 fee for filing, issuing certified copies, etc. See Fees. not filed as required, effect on actions. C. C. §400 65 Building and loan associations, agent of, and deposit which must be made before doing business. C. C. § 040 207 See, also, General Index, Building and Loan Associa- tions; Appendix Index. Building and Loan Commis- sioners. Costs, security for, when plaintiff. C. C. P. § 1030 394 820 GENERAL INDEX. FOREIGN CORPORATIONS— Continued. Page. Costs, security not given, action may be dismissed. C. C. P. § 1037 395 Designation of agent. C. C. § 405 91 revocation. C. C. § 406 91 Directors, fraudulent acts by, if doing business in this state. Pen. C. § 571 428 Elections, at meetings held in California, certain previsions to apply. C. C. § 307 45 Executors. See General Index, Executors. Failure to file copy of articles of incorporation, penalty. C. C. § 410 93 Fees, articles of incorporation, must pay same as domestic corporations. C. C. § 409 93 county clerk. Pol. C. § 4300a 372 insurance commissioner. Pol. C. §605 282 secretary of state. Pol. C. § 416 261 Fraudulent or unlawful acts, liability. Pen. C. $571 428 Insurance companies. See Insurance Companies, Foreign. Investment companies. See, also, Investment Companies, General Index, application of laws relating to investment companies. Pol. C. § 6351 307 articles of incorporation, filing of copy of. Pol. C. § 635c. 303 bankruptcy, action by attorney general to declare. Pol. C. § 635i 306 business not to be commenced before making deposit. Pol. C. § 635k 307 cash or securities to be deposited with treasurer of state. Pol. C. § 635b 302 enjoined from doing business for non-compliance with law. Pol. C. § 635d 304 examination by attorney general. Pol. C. § 635i 306 loans, out of reserve fund, limit. Pol. C. § 635g 305 penalties for violation of law. Pol. C. § 635j 307 reserve fund, creation of. Pol. C. § 635h 306 reserve fund, limitation of loans from. Pol. C. § 635s.... 305 securities exchanged, substituted for cash deposit. Pol. C. § 635f 305 Laws of California, application of. Const., art. XII, § 15... 15 Liability of stockholders, same as domestic corporations. C. C. § 322 55 when incurred by officers or directors. Pen. C. i 571 428 License tax. See Appendix Index, License Tax. Mln j ng corporations, books and balance sheets open for inspection. C. C. § 588 171 See, also, Mining Companies, General Index. Railroad, same rights as domestic corporations. C. C. 5 407. 92 See, also, Railroads, General Index. Statute of limitations, entitled to benefit of. C. C. § 406 91 Stockholders, liability of, same as those of domestic cor- porations. C. C. § 322 55 Sureties. See, also, Insurance, Fidelity and Surety, Gen- eral Index; also, Appendix Index, Bonds. Undertakings or bonds, sureties on. C. C. P. | 1056 J95 sole surety, when. C. C. P. $ 1057 S»6 GENERAL INDEX. 821 FORMATION. See, also, ARTICLES OF INCORPORATION; BY-LAWS; DIRECTORS; ELECTIONS; MEMBERS; STOCKHOLDERS. Page. Corporations to be formed under general laws. Const., art. XII, § 1 10 Purpose for which private corporations may be organized. C. C. § 28G 31 FORMS. See, also, Appendix Index, FORMS AND PRECE- DENTS. Assessment for purposes of taxation, statement required, blank forms for to be furnished by county supervisors. Pol. C. § 3630 354 FRANCHISES. See, also, CITIES; SUPERVISORS; also. Appendix Index, FRANCHISES; MUNICIPAL COR- PORATIONS. Action against corporation for usurpation. C. C. P. § 803.. 393 Are property, subject to taxation. Const., art. XIII, §1... 19 Assessment of, where. Pol. C. § 3628 351 Defined as property, for taxation. Pol. C. §3617 348 Existing at time of adoption of constitution, not valid un- less operations begun. Const., art. XII, § 6 12 Foreign concessions, franchises, grants, sale of. C. C. §364 80 Not to be extended by legislature. Const., art. XII, § 7.... 12 Purchaser of, at sale under execution may recover pen- alties. C. C. § 390 86 at sale under execution must conduct business. C. C. § 389 86 Redemption from sale under execution. C. C. §392 86 Sale, lease, or transfer of, requires two thirds consent of stockholders. C. C. § 361a 77 Sale of, situated in foreign country. C. C. § 364 80 under execution. C. C. § 388 85 under execution, where made. C. C. § 393 86 Supervisors, general powers to grant. Pol. C. §4041 369 when majority of supervisors are interested, action. Pol. C. § 4323 371 Transfer of, does not release liability. Const., art. XII, §10 13 FRATERNAL AND SECRET SOCIETIES. See, also, BE- NEVOLENCE AND CHARITY; COLLEGES; CO-OP- ERATIVE ASSOCIATIONS; INSURANCE, MUTUAL; NON-PROFIT CORPORATIONS. Assessment insurance provisions not applicable to. C. C. § 453p 119 Exempt from insurance laws of California. Pol. C. § 630.. 298 FRAUDS. See, also, ADVERTISEMENTS; REPORTS; also, Appendix Index, FRAUDULENT REPORTS. Certificates, records, or reports, false, by officer. C. C. § 316 51 Management of corporations, persons embraced In term "director." Pen. C. { 572 428 S22 GENERAL INDEX. FRIENDLY SOCIETIES. See, also, NON-PROFIT COR- PORATIONS. Page. May hold certain real estate. C. C. §590 179 GAS COMPANIES. See LIGHTING CORPORATIONS. GOVERNOR. Examination into affairs of corporations may be ordered by. C. C. § 382 84 May give instructions to institute actions against foreign corporations failing to file articles. C. C. § 410 9:: May require inquiry into affairs of corporations. Pol. C. § 380, subd. 6 260 HALL ASSOCIATIONS. See, also, CO-OPERATIVE BUSI- NESS ASSOCIATIONS; NON-PROFIT CORPORA- TIONS. Benevolent or charitable societies, hall associations of, number of directors for. C. C. § SOT, 4 1 See, also, Benevolence and Charity. HOLIDAYS. Are non-judicial days, except for certain purposes. C. C. P. S 134 380 Appointments on non-judicial days. C. C. P. §135 380 Designated by Civil Code. C. C. § 7 27 by Code of Civil Procedure. C. C. P. § 10 377 additional provisions when falling on Sunday, rule for. C. C. P. § 11 37s by Political Code. Pol. C. § 10 258 additional provisions when falling on Sunday. Pol. C. §11 259 Lincoln day. See Appendix Index, Holidays. Special, restriction of judicial business on. C. C. P. § 135.. 380 HOMESTEAD CORPORATIONS. Articles of incorporation and by-laws must be furnished shareholders. C. C. § 558 159 Borrow and loan money, for what purpose. C. C. § 560 159 By-laws, special provisions required. C. C. §558 159 Dividends, on termination of corporate existence. C. C. § 563 161 Existence, term of, ten years. C. C. §557 158 Indebtedness, how may be incurred. C. C. §560 159 Installments, time of payment must be specified in by- laws. C. C. § 558 159 Premiums, payment of. C. C. § 504 161 Property, division of, at termination of corporation. C. C. §563 101 limitation of amount to be held. C. C. § 502 160 must not be handled for speculation. C. C. § 502 100 Report of condition to be published annually. C. C. § 505. 161 publication in certain cases. C. C. § 566 162 Rights and powers, forfeiture of, for violation of law. C. C. §562 160 GENERAL INDEX. 823 HOMESTEAD CORPORATIONS— Continued. Page. Stock, shares of, delinquent sale of. C. C. § 559 159 exempt from attachment or sale, to certain liniit. C. C. P. § 690, subd. 11 392 when held by children. C. C. § 561 160 when held by married women. C. C. § 561 160 Termination of corporate existence, proceedings for divi- sion and dissolution. C. C. S 563 161 HORSELESS VEHICLES. Insurance of. See Insurance, Team and Vehicle. Roads for. See Roads, Toll; Roads. Wagon. IMMUNITIES. Limitations on. Const., art. I, § 21 2 Special, not to be given by legislature. Const., art. IV, § 25, subd. 19 4 IMPROVEMENTS. Assessment of, separate from land. Pol. C. S 3627 350 Defined for purposes of taxation. Pol. C. § 3617, subd. 4. . . . 348 See, also. Property; Taxation. INCOME TAX. Assessment and collection, amount and manner. Const., art XIII, SI I 23 National Income tax. Sec Appendix Index. Federal Cor- poration Tax Law. INDEBTEDNESS. See BONDS AND INDEBTEDNESS. INDUSTRIAL ORGANIZATIONS. Incorporation as co-operative business associations, pro- vision for. C. C. § 653b 214 See, also, Non-Profit Corporations. INJUNCTION. To suspend general and ordinary business. C. C. P. § 531 . . 387 INSURANCE COMMISSIONER. See. also. INSURANCE COMPANIES. Actions against insurance commissioner, right of. Pol. c. S 631 : l".in Actuary may be employed by. Pol. C. §601 277 Agents and solicitors, list of. to be kept. Pol. C. S 633 299 power of attorney. Pol. ('. §633 299 Annual report to governor. Pol. < '. §595 270 Assessors must be furnished with certain data. Pol. C. S 625 295 Attachments may lie issued by, for disobedience of sub- poenas. Pol. C. § 599 276 Assessments for expenses may be levied. Pol. C. § 606 283 Bond, official, of insurance commissioner. Pol. C. §593.... 266 Certificates, certain, to he submitted to attorney general for examination. Pol. ('. S 596a 274 of authority for doing business to be issued to insurance companies. Pol. C. § 596 272 824 GENERAL INDEX. INSURANCE COMMISSIONER— Continued. Pack. Certificate, of authority for doing business, revocation of when insolvent. Pol. C. § 603 280 of authority for doing business, when may be restored after revocation. Pol. C. § 603a 281 of authority to do business issued to foreign company, revocation in case of transfer of action to United States courts. Pol. C. § 60S 284 of deposit of securities. Pol. C. § 619 292 Compliance with law must be required. Pol. C. § 626 296 Examine financial condition of companies. Pol. C. § 595 270 insolvent companies, alleged. Pol. C. §597 274 securities deposited. Pol. C. § 621 293 Deposit of securities with. Pol. C. § 618 291 Deposits from life companies, and registration of policies. Pol. C. § 634 300 required from foreign companies. Pol. C. § 594a 269 Documents to be filed with. Pol. C. § 607 283 Duties of, in general. Pol. C. § 595 270 Eligibility. Pol. C. §588 265 Estimation of condition of liability companies. Pol. C. § 602a 278 Fees to be paid to, by companies. Pol. C. § 605 282 Fines, assessments, etc., payable on demand. Pol. C. § 634b 301 Examination of affairs of domestic corporation doing busi- ness of mutual assessment insurance. C. C. §4531 117 Expenses, bills for, in connection with mutual assessment companies. C. C. § 453o 119 I nsolvency proceedings. Pol. C. § 604a 282 Insolvent company reported to attorney general. Pol. C. § 604 281 Issue license to foreign mutual assessment companies. C. C. § 453i 116 License to citizen to solicit insurance for companies not authorized to transact business in this state. Pol. C. § 596 272 Life policies, registration of, and deposit of securities with treasurer of state. Pol. C. § 034 300 separate valuation of. Pol. C. § 628 296 valuation of. Pol. C. § 629 297 May require information from companies concerning pol- icies. Pol. C. § 598 275 Must approve name and issue certificate to corporation for mutual insurance on the assessment plan. C. C. § 453e 114 Mutual companies, organized under act of 1851, annual report of. Pol. C. § 614 289 foreign, assessment, issuance of license to. C. C. § 453i. 116 life and casualty, revocation of license. C. C. §450 106 Name of companies to be approved. Pol. C. § 609 285 Obligations imposed by other states or countries, to be observed. Pol. C. § 618 291 GENEBAL INDEX. 825 INSURANCE COMMISSIONER— Continued. Page. Obligations, or prohibitions, imposed by other states or countries, excessive. Pol. C. § 622 293 Office, expense of. Pol. C. § 591 265 to be in San Francisco. Pol. C. § 592 265 Papers required to be filed by companies. Pol. C. § 607.... 283 Penal offense, district attorney to be notified. Pol. C. § 632 299 Penalties, collected from companies, for failure to file re- quired statements or stipulations. Pol. C. § 617 291 payable on demand. Pol. C. § 634b 301 Policies, examination of, power. Pol. C. § 596 272 lost or destroyed, duty in relation to. Pol. C. § 598 275 Policyholder, information furnished to. Pol. C. §598 275 Restoration of authority after revocation. Pol. C. § 603a... 281 Revoke certificates of insolvent companies. Pol. C. § 603. .. 280 Records kept by commissioner. Pol. C. § 600 276 Salary of commissioner. Pol. C. § 589 265 of deputy. Pol. C. § 589 265 Securities, deposit of. Pol. C. § 618 291 examination of. Pol. C. § 621 293 withdrawal of. Pol. C. § 620 292 Service upon foreign companies. Pol. C. §616 290 Special fund provided. Pol. C. § 591 '265 Subpoenas may be issued. Pol. C. 599 276 Surety companies, list of, furnished to county clerks. Pol. C. § 625a 295 Tax on gross premiums. Pol. C. § 622a 294 Verification of reports and statements required. Pol. C. § 610 285 Withdrawal from state, notice of, must be published by commissioner. Pol. C. § 631a -298 INSURANCE COMPANIES. See, also, INSURANCE COM- MISSIONER; also, Appendix Index. INSURANCE. Action against insurance commissioner, right of. Pol. C. § 631 298 to recover on contract of insurance, defendant claim- ing exemption, what must set up. C. C. P. § 437a 386 Agent, license to procure insurance in certain companies. Pol. C. § 596 272 power of attorney. Pol. C. § 633 299 Annual statements, contents of. Pol. C. §612 285 forms for. Pol. C. § 615 289 to be filed. Pol. C. § 611 285 Application of provisions for co-operative business asso- ciations. C. C. § 6531 219 of provisions for non-profit co-operative corporations. C. C. § 653za 230 Articles and certificates to be filed with insurance commis- sioner. Pol. C. § 607 283 Assessments for expenses of commissioner. Pol. C. §606.. 283 Bond required from agent for company not authorized to do business In California. Pol. C. § 596 272 826 GENERAL INDEX. INSURANCE COMPANIES— Continued. Pace. Books of subscription for unsubscribed capital stock. C. C. §414 95 Burning or destroying, willful, of insured property. Pen. C. § 548 422 Capital and accumulations, how invested. C. C. §421 97 Capital stock, definition of words. Pol. C. § 634a 301 Certificate of authority required to do business. Pol. C. § 596 272 restoration, after revocation. Pol. C. S 003a 281 revocation, of insolvent companies. Pol. C. §603 280 surrender of. Pol. C. §595 270 Certificate of deposit of securities, issuance of. Pol. C. § 619 292 Classification of insurance. Pol. C. § 594 266 Company, definition of word. Pol. C. § 634a 301 Compliance with law required. Pol. C. § 626 296 Contract of insurance, action to recover upon, what defend- ant claiming exemption must set up. C. C. P. § 437a. . 386 Deposit of securities. Pol. C. § 618 291 Directors liable for loss in certain cases. C. C. § 418 96 Dividends, on what paid and when declared. C. C. § 417... 96 Fees of insurance commissioner. Pol. C. § 605 282 Fines, assessments, etc., payable on demand. Pol. C. § 634b 301 Fraudulent claim for insurance, penalty. Pen. C. § 549.... 422 destruction of property by insured, penalty. Pen. C. § 548. 422 I nsol vency, defined. Pol. C. § 602 277 proceedings. Pol. C. § 604a 282 Insolvent companies, revocation of certificates. Pol. C. §603 280 restoration of authority after revocation. Pol. C. § 003a. . 281 to be reported to attorney general. Pol. C. § 604 281 to submit books for examination. Pol. C. § 597 274 Insurance classified. Pol. C. §594 266 Liabilities, estimation of. Pol. C. § 602a 278 License to agent to procure insurance in companies not authorized to do business in this state. Pol. C. §596... 272 Name, approval of by insurance commissioner. Pol. C. § 609 285 Obligations or prohibitions imposed by other states or countries, compliance with. Pol. C. § 618 291 when imposed on California companies by other states or countries, in excess of requirements of this state. Po!. C. §622 293 Papers which must be filed with insurance commissioner. Pol. C. § 607 283 Payments on gold basis. Pol. C. § 627 296 Penal offense, district attorney to be notified. Pol. C. §632 299 Penalties for failure to file required statements or stipula- tions. Pol. C. § 617 291 payable on demand. Pol. C. § 634b 301 GENERAL IiXDEX. 82 INSURANCE COMPANIES— Continued. PAGE. Policy, how issued and by whom signed. C. C. § 416 96 information concerning-, may be obtained. Pol. C. § 598.. 275 lost, stay of rights. Pol. C. § 598 275 Policyholders may obtain certain information. Pol. C. § 598 275 Power of attorney of agent. Pol. C. § 633 299 Premiums, tax on gross. Pol. C. § 622a 294 Real property, what may be held. C. C. § 415 95 Restoration of authority after revocation. Pol. C. §603a.. 281 Statements, annual, contents of. Pol. C. §612 285 filed with insurance commissioner. Pol. C. § 611 285 forms for. Pol. C. § 615 289 penalty for failure to file. Pol. C. § 617 291 Securities deposited with insurance commissioner. Pol. C. § 618 291 examination of. Pol. C. §621 293 withdrawal of. Pol. C. § 620 292 Special license, bond required by agent. Pol. C. § 596 272 Surrender of certificate issued by commissioner. Pol. C. § 595 270 Tax on gross premiums. Pol. C. § 622a 294 Taxes, etc., when payable. Pol. C. § 634b 301 Verification of reports and statements. Pol. C. § 610 285 INSURANCE COMPANIES, ACCIDENT, DISABILITY, HEALTH OR SICKNESS. Annual statement, contents of. Pol. C. §613 287 Capital stock required. Pol. C. § 594 266 Classification of accident, disability, sickness or health in- surance. Pol. C. §594, subd. 6 266 Insolvent condition, what constitutes. Pol. C. §602 277 Investments allowed. C. C. § 421, subd. 6 97 Reserve fund, computation of. Pol. C. § 602a 278 INSURANCE COMPANIES, BOILER AND MACHINERY. Capital stock required. Pol. C. § 594 266 Classification of boiler and machinery insurance. Pol. C. § 594, subd. 9 266 Insolvent condition, what constitutes. Pol. C. §602 277 INSURANCE COMPANIES, BURGLARY. Capital stock required. Pol. C. § 594 266 Classification of burglary insurance. Pol. C. § 594, subd. 10. 266 Insolvent condition, what constitutes. Pol. C. §602 277 INSURANCE COMPANIES, COUNTY FIRE. See Appendix Index, INSURANCE. INSURANCE COMPANIES, CREDIT. Capital stock required. Pol. C. § 594 266 Classification of credit insurance. Pol. C. §594, subd. 11.. 266 Insolvency, condition of. Pol. C. §602 277 INSURANCE COMPANIES, DISABILITY. See ACCIDENT, DISABILITY, HEALTH OR SICKNESS. S28 GENERAL INDEX. INSURANCE COMPANIES, DISCOVERY OF FIRE AND SAVING OF PROPERTY AND HUMAN LIFE FROM CONFLAGRATION. See UNDERWRITERS. INSURANCE COMPANIES, EMPLOYEE'S LIABILITY. Page. Capital stock required. Pol. C. § 594 266 Classification of employee's liability insurance. Pol. C. § 594, subd. 8 266 Condition, how estimated. Pol. C. § 602a 278 Insolvency, what constitutes. Pol. C. §602 277 INSURANCE COMPANIES, FIDELITY AND SURETY. See, also, Appendix Index, BONDS. Bonds, or undertakings by, requisites of. C. C. P. § 1057... 396 Capital stock required. Pol. C. § 594 266 Classification of fidelity and surety insurance. Pol. C. § 594, subd. 5 266 I nsol vency, condition of. Pol. C. § 602 277 May become sole sureties, on bonds or undertakings. C. C. P. $1056 ,. 395 Official bonds accepted as sole security on. Pol. C. §955.. 308 less than the penal sum. Pol. C. § 956 308 Undertakings or bonds by, requisites of. C. C. P. § 1057... 396 INSURANCE COMPANIES, FIRE. See, also, INSURANCE, MARINE; also, Appendix Index, INSURANCE. Articles of incorporation to designate scope of business. C. C. § 426 99 Assessments on capital stock of corporation. C. C. 332 63 Capital stock, amount required. Pol. C. §594 266 assessment of. C. C. § 332, subd. 3 63 investment of. C. C. § 421, subd. 6 97 must be paid up in cash within twelve months. C. C. § 424 99 paid up, certificate of to be filed. C. C. § 425 99 Classification of fire insurance. Pol. C. §594, subd. 2 266 Dividends, amount to be reserved before making. C. C. § 429 100 amount to be reserved before making, when capital less than $200,000. C. C. § 430 100 Insolvency, what constitutes. Pol. C. § 602 277 Investments allowed. C. C. § 421, subd. 6 97 Limit of risk. C. C. 428 100 Policy not to be issued until 25 per cent of capital paid up. C. C. 8 424 99 standard form of. Act of 1909 614 Property which may insure. C. C. § 426 99 Reinsurance. C. C. § 426 99 INSURANCE COMPANIES, FOREIGN. See, also, FOR- EIGN CORPORATIONS; INSURANCE COMMIS- SIONER; INSURANCE COMPANIES; also, Appendix Index, BONDS; INSURANCE. Action against insurance commissioner, right of. Pol. C. §631 298 Action not to be transferred to United States courts. Pol. C. § 608 3«4 GENERAL INDEX. 829 INSURANCE COMPANIES, FOREIGN— Continued. Page. Agent must be designated. Pol. C. § 616 290 power of attorney. Pol. C. § 633 299 procuring business for company which has not complied with laws, penalty. Pen. C. § 439 420 Annual statements, contents of. Pol. C. §612, subd. 6 285 to be filed. Pol. C. § 611 285 forms for. Pol. C. § 615 289 life, health and accident companies. Pol. C. §613 287 penalties for failure to file. Pol. C. § 617 291 Articles and certificates to be filed with insurance commis- sioner. Pol. C. § 607 283 Bond required before commencing business. Pol. C. § 623.. 294 separate, when required. Pol. C. § 623 294 Business, withdrawal, notice of. Pol. C. § 631a 298 Capital stock, definition of words. Pol. C. § 634a 301 required, amount of. Pol. C. § 594 266 Certificate to do business required. Pol. C. §596 272 Compliance with law required. Pol. C. § 626 296 Company, definition of word. Pol. C. § 634a 301 Deposit of securities. Pol. C. § 594a 269 securities required, additional, when additional are re- quired of domestic companies by other states or coun- tries. Pol. C. § 622. . . .' 293 Documents, certain, must be filed with insurance commis- sioner. Pol. C. § 607 283 Fees, county clerk. Pol. C. § 4300a 372 insurance commissioner. Pol. C. §605 282 secretary of state. Pol. C. § 416 261 Fines, assessments, etc., payable on demand. Pol. C. § 634b 301 Joint stock and mutual companies, assets required in lieu of capital stock. Pol. C. § 594 266 Laws, excessive, of other states or countries, when applied to domestic corporations, same laws to be applied in return to companies of such other states or coun- tries. Pol. C. § 622 293 Life policy must contain certain provisions. C. C. § 450 106 Live stock, assessment plan. See Appendix Index, Insur- ance. Mutual assessment companies, certified copy of charter to be filed with insurance commissioner. C. C. § 4531 116 license to be issued to. C. C. § 453i 116 must file annual statement with insurance commissioner. C. C. § 4531 117 See, also, Insurance, Mutual Assessment Plan, General Index. Mutual or joint stock companies, assessment required in lieu of capital stock. Pol. C. § 594 266 Obligations or prohibitions, imposed by other states or countries, applied in return. Pol. C. § 622 293 Papers required to be filed with insurance commissioner. Pol. C. § 607 283 Payments on gold basis. Pol. C. § 627 296 830 GENERAL INDEX. INSURANCE COMPANIES, FOREIGN— Continued. Page. Penal offense, district attorney to be notified. Pol. O. § 632 299 Penalties for failure to file required statements or stipula- tions. Pol. C. § 617 291 payable on demand. Pol. C. § 634b 301 Policies, procuring of, for companies not authorized to do business in this state, conditions. Pol. C. §596 272 Power of attorney of agent. Pol. C. § 633 299 Premiums, tax on gross. Pol. C. § 622a 294 Securities, deposited with insurance commissioner. Pol. C. § 618 291 examination of. Pol. C. § 621 293 issue of certificates for securities deposited. Pol. C. § 619. 292 must be deposited by. Pol. C. § 594a 269 when laws of other states or countries require additional securities of domestic corporations, retaliation. Pol. C. §622 293 withdrawal of. Pol. C. § 620 '. 292 Service of notice or summons. Pol. C. § 616 290 Statements, annual, contents of. Pol. C. §612, subd. 6 285 forms for. Pol. C. § 615 289 to be filed. Pol. C. § 612 285 penalty for failure to file. Pol. C. S 017 291 Sureties. See Foreign Corporations; Insurance, Fidelity and Surety; also, Appendix Index, Bonds. Tax on gross premiums. Pol. C. § 622a 294 Verification of reports and statements. Pol. C. §610 285 Withdrawal from state. Pol. C. § 595 270 from state, notice of. Pol. C. § 631a 298 INSURANCE COMPANIES, FRATERNAL AND SECRET SOCIETIES. Are not affected by laws governing mutual assessment companies. C. C. § 453p 119 Exempt from insurance laws of California. Pol. C. § 630... 298 INSURANCE COMPANIES, LIFE. Accumulations, investments allowed. C. C. §421, subd. 6.. 97 Annual statements to insurance commissioner. Pol. C. § 613 287 Capital stock, investment of. C. C. §421, subd. 6 '.'7 required amount. Pol. C. § 594 266 Classification of life insurance. Pol. C. §594, subd. 1 260 Dividends, how and when made. C. C. § 452 1<>7 Exemption from execution, of moneys and benefits. C. C. P. § 690, subd. IS 392 I nsol vency, what constitutes. Pol. C. § 602 277 Loans on policies. C. C. § 421, subd. 7 97 Policy must contain certain provisions. C. C. § 450 106 Policies, exempt from attachment and execution. C. C. P. § 690, subd. 18 392 registration of, and deposit. Pol. C. § 634 ■! |111 valuation of, by actuary. Pol. C. § 601 277 GENERAL INDEX. 831 INSURANCE COMPANIES, LI FE— Continued. Page. Policies, valuation of, separate. Pol. C. § fi28 296 valuation of, what basis. Pol. C. §629 297 Statements, annual, contents of. Pol. C. § 613 287 INSURANCE COMPANIES, MARINE. See. also, INSUR- ANCE. FIRE. Articles of incorporation to designate scope of business. C. C. § 426 99 Assessment on capital stock of corporation. C. C. § 332.... 63 Capital stock, amount required. Pol. C §594 266 assessment of. C. C. § 332, subd. 3 63 investment of. C. C. § 421, subd. 6 97 must be paid up in cash within twelve months. C. C. § 424 99 paid up, certificate to be filed. C. C. § 425 99 Classification of marine insurance. Pol. C. § 594, subd. 3. . 266 Dividends, amount to be reserved before making. C. C. § 429 100 amount to be reserved before making, when capital less than $200,000. C. C. § 430 100 Insolvency, what constitutes. Pol. C. § 602 277 Investments allowed. C. C. § 421, subd. 6. . 97 Limit of risk. C. C. § 428 100 Policies not to be issued until 25 per cent of capital paid up. C. C. § 424 99 Property which may insure. C. C. § 426 99 Reinsurance. C. C. § 426 99 INSURANCE COMPANIES. MISCELLANEOUS. Capital stock required. Pol. C. § 594 266 Classification of miscellaneous insurance. Pol. C. § 594, subd. 14 266 Insolvency, condition of, what constitutes. Pol. C. §602... 277 INSURANCE COMPANIES, MUTUAL, ASSESSMENT, LIFE, HEALTH, ACCIDENT, ANNUITY OR EN- DOWMENT. Agent not to solicit until certain requirements are met. C. C. § 453e 114 Annual statement to be filed with insurance commissioner. C. C. § 4531 117 Application for insurance, requirements. C. C. § 453j 117 Attachments and executions not to apply to benefits there- under. C. C. § 453k 117 Certificate to be issued to by insurance commissioner. C. C. § 453e 114 Contracts, contents and effect of. C. C. § 453g 115 defined and prescribed. C. C. § 453d 113 limitations upon. C. C. § 453j 117 Deposit required. C. C. § 453e Ill Discontinuance of business, disposition of reserve fund. C. C. § 4531i 115 Emergency fund must be accumulated. C. C. § 453h 115 832 GENERAL INDEX. INSURANCE COMPANIES, ETC.— Continued. Page. Existing corporations, right of to reincorporate. C. C. § 453f 114 Expenses of insurance commissioner, provision for. C. C. § 453o 119 Formation of corporations. C. C. § 453e 114 Fees paid to insurance commissioner. C. C. § 453n 119 Foreign companies. See Foreign Insurance Companies. Fraternal and secret societies exempt from certain pro- visions. C. C. § 453p 119 Insurance commissioner to present bills for certain ex- penses in connection with. C. C. § 453o 119 Membership required before doing business. C. C. § 453e.. 114 Name of, to be approved by insurance commissioner. C. C. § 453e 114 Policies, lapsing of, forbidden, without specified notice. C. C. § 453m US Pre-existing companies, rights of. C. C. § 453f 114 Reserve fund must be accumulated. C. C. § 453h 115 INSURANCE COMPANIES, MUTUAL, ASSESSMENT, LIVE STOCK, LIFE, HEALTH AND ACCIDENT. See Ap- pendix Index, INSURANCE. INSURANCE COMPANIES, MUTUAL, BENEFIT AND LIFE. Articles of incorporation. C. C. § 452a 108 Assessments, how levied. C. C. § 453 109 By-laws may provide for what. C. C. § 453 109 Formation of. C. C. § 452a 108 INSURANCE COMPANIES, MUTUAL, FIRE. See Appendix Index, INSURANCE. INSURANCE COMPANIES, MUTUAL, LIFE. HEALTH, ACCIDENT. Capital stock required. C. C. § 437 102 Directors, alteration of number of. C. C. § 443 105 Dividends, how and when made. C. C. § 452 107 Fixed capital, constituted, how. C. C. § 439 103 declaration of, to be filed. C. C. § 440 104 Guarantee fund required. C. C. § 437 102 what shall constitute. C. C. § 438 103 Guarantee notes and interest thereon. C. C. § 441 104 Policy must contain certain provisons. C. C. §450 106 Policyholder for life, right of to vote. C. C. § 442.* 105 Premiums, payment of. C. C. § 446 105 Shares, limit of number of, which may be held. C. C. §445 105 INSURANCE COMPANIES, PLATE GLASS. Capital stock required. Pol. C. § 594 266 Classification of plate glass insurance. Pol. C. § 594, subd. 7 266 Insolvency, condition of, what constitutes. Pol. C. §602... 277 GENERAL INDEX. 833 INSURANCE COMPANIES. SPRINKLER. PAGE. Capital stock required. Pol. C. § 594 266 Classification of sprinkler Insurance. Pol. C. § 594, subd. 12. 266 Insolvency, condition of, what constitutes. Pol. C. § 602... 277 INSURANCE COMPANIES, TEAM AND VEHICLE. Capital stock required. Pol. C. § 594 266 Classification of team and vehicle insurance. Pol. C. § 594, subd. 13 266 Insolvency, condition of, what constitutes. Pol. C. §602... 277 INSURANCE COMPANIES, TITLE. Capital stock required. Pol. C. § 594 266 Classification of title insurance. Pol. C. § 594, subd. 4 266 Dividends, made only after certain reservations. C. C. § 432 101 Insolvency, what constitutes. Pol. C. § 602 277 i n vestment of capital. C. C. § 421, subd. 5 97 Surplus fund required. C. C. § 432 101 INTEREST. Rate of, not to be regulated by legislature. Const., art. IV. § 25. subd. 23 4 INVESTMENT COMPANIES. Application of laws concerning. Pol. C. §6351 307 Articles of incorporation, and accompanying statement. Pol. C. § 635c 303 Bankruptcy, action by attorney general to declare. Pol. C. § 635i 306 Business not to be commenced before making deposit. Pol. C. § 635k 307 when not licensed by certain authorities, securities to be deposited with state treasurer. Pol. C. § 635b 302 Cash or securities deposited with treasurer of state. Pol. C. § 635b 302 Definition of investment company. Pol. C. § 635a 302 Deposit with treasurer of state, requirements for. Pol. C. § 635b 302 withdrawal of, upon ceasing to do business. Pol. C. § 635e 304 Examination by attorney general. Pol. C. §6351 306 License to do business, when not issued by certain author- ities, securities to be deposited with state treasurer. Pol. C. § 635b 302 Loans out of reserve fund, limit. Pol. C. § 635g 305 Penalties for violation of law. Pol. C. § 635j 307 Reserve fund, creation of. Pol. C. § 635h 306 limitation of loans from. Pol. C. § 635g 305 Securities to be deposited with treasurer of state in cer- tain cases. Pol. C. § 635b 302 substituted for cash deposit. Pol. C. § 635f 305 Statement accompanying articles of incorporation. Pol. C. § 635c 303 Violation of law, penalty. Pol. C. § 635j 307 Withdrawal, from state. Pol. C. § 635e 304 834 GENERAL INDEX. LABOR ORGANIZATIONS. See, also. Appendix Index, COMBINATIONS. Page. Agreement not to join, forced, as condition of employment, penalty. Pen. C. § 679 433 Trade-mark, adopted by, protection of. Pol. C. §3201 342 adoption and use of. Pol. C. § 3200 \ 342 LAND. See, also, PROPERTY. Assessment of, in parcels. Pol. C. S 3628 35] separate from improvements. Pol. C. § 3627 350 statement required by assessor. Pol. C. § 3620 353 Defined as real estate, for purposes of taxation. Pol. C. § 3617 34S Large holdings discouraged. Const., art. XVII, §2 20 Tide, not to be granted or sold to corporations. Const., art. XV, § 3 25 LAWS. Corporation, application of general provisions affecting all corporations. C. C. § 403 90 legislative right to amend or repeal or dissolve corpora- tions created thereunder. C. C. § 404 90 legislature to pass, relating to. Const., art. XII, §24 19 Existing, repealed, on adoption of code. C. C. § 288 32 General nature, to have uniform operation. Const., art. I. §11 1 General only to be passed, when can he made applicable. Const, art. IV, § 25, subd. 33 4 Legislation, special, forbidden, in enumerated cases. Const., art. IV. §25 4 LICENSE TAX. See Appendix Index, FEDERAL CORPO- RATION TAX LAW; LICENSE TAX. LIGHTING CORPORATIONS. Cities may allow use of streets. Const., art. X. § 19 8 Contracts, cities of fifth and sixth classes. See Appendix Index, Municipal Corporations. Franchises. See, also, Appendix Index, Franchises; Mu- nicipal Corporations. Gas companies, advance payment for service pipe. C. C. § 030 107 charges by, when regulated l>v legislature. Const., art. IV, § 33 6 contracts with cities for supply of gas. Pol. C. § 4412.... 376 contracts with cities, reservations and restrictions by common council. Pol. C. § 4413 376 duty to furnish gas. C. C. § 629 196 franchises, granting of, by common council of cities. Pol. C. § 4410 375 franchises, reservation by cities. Pol. C. § 4411 375 right to inspect meters. C. C. § 631 198 right to shut off supply from consumer. C. C. § 632 198 use of streets by, for pipes and conduits. Const., art. X, § 19 8 GENERAL INDEX. 835 LIGHTING CORPORATIONS— Continued. PAGE. Electric light companies, advance payment for construction of line. C. C. § 630a 197 duty to furnish electricity. C. C. § 62!) 196 right to inspect meters. C. C. § 631 198 right to shut off supply from consumer. C. C. § 632 198 LOTTERIES. Prohibited. Const., art. IV, §26 5 MARRIED WOMEN. Deposits in savings and loan societies and drawing of divi- dends. C. C. §575 1,;l See, also, Appendix Index. Banks and Banking. Dividends on stock, payment to. C. C. § 325 58 Giving of proxies by. C. C. § 325 58 Homestead corporations, shares held in. C. C. §501 160 Transfer of shares of capital stock. C. C. § 325 58 MECHANICS. Provision for scaffolding, ladders, etc. Pen. C. § 402c 41S MECHANICS' INSTITUTES. See COMMERCE, TRADE, AND MECHANIC ARTS. MEETINGS. See. also, ELECTIONS; MEMBERS; STOCK- HOLDERS. Adjournment of. C. C. § 312 4!i Assembled by consent of members or stockholders are valid. C. C. § 31S 52 Assented to by members or stockholders are valid. C. C. § 317 r >- Attendance, amount necessary, before business can be con- ducted. C. C. § 312 I' 1 By-laws may provide for manner of calling and conduct- ing. C. C. § 303 43 meeting to adopt. C. C. § 301 42 Elections, how stock must be represented. C. C. §312 4i» Held at principal place of business. C. C. § 319 52 Justice of the peace may order in certain contingencies. C. C. §311 *9 Members or stockholders, who entitled to vote, and use of pi-oxies. C. C. § 321b 54 Notice of, by-laws may provide for manner of giving. C. C. § 303, subd. 1 43 by-laws may provide for publication. C. C. § 303. subd. S. 43 for adoption of by-laws, how given. C. C. § 301 42 for election of directors, how given. C. C. §§ 301, 302.... 42 waivure of notice of election. C. C. § 302 42 when waived, proceedings are validated, however called. C. C. §317 52 Proxies, use of, at meetings. C. C. § 321b 54 See, also. General Index, Proxies. Publication of notice of, by-laws may provide for. C. C. § 303, subd. 8 43 Quorum. See General Index. Quorum. S36 GENERAL INDEX. MEETINGS— Continued. Page. Representation at, amount necessary for conduct of busi- ness. C. C. § 312 49 Special, how called. C. C. § 320 52 Stock, how represented at general meetings. C. C. § 312... 49 how represented when portion of stock is owned by cor- poration. C. C. § 344 '. 67 owned by minors, insane or deceased persons, how rep- resented. C. C. § 313 50 Stockholders or members, who entitled to vote, and use of proxies. C. C. § 321b 54 MEMBERS. See, also, ELECTIONS; MEETINGS. Action on amendment of articles of incorporation. C. C. § 362 78 on extension of corporate existence for remainder of fifty-year term. C. C. § 401 88 on renewal of corporate existence for fifty years. Const., art. XII, § 7 12 Admitted to corporation. C. C. §354, subd. 7 70 By- laws, assent of to adoption of. C. C. § 301 42 may amend or repeal. C. C. § 304 43 Consent of, for continuance of existence under code. C. C. §287 32 Definition of. C. C. § 298 38 Directors elected by. C. C. § 302 42 may be removed from office by. C. C. § 310 48 Liability of. C. C. § 322 55 Meeting of, justice of the peace may order new, when. C. C. § 311 49 use of proxies. C. C. § 321b 54 waiver of notice of, validates proceedings, however called. C. C. § 317 52 who entitled to vote. C. C. § 321b 54 Quorum, number necessary to constitute. C. C. § 312 49 provided for, may be, in by-laws. C. C. § 303, subd. 2... 43 MESSAGES. See, also, CARRIERS. Minors not to be employed to deliver, to certain places. Pen. C. § 273e , 408 Persons or corporations sending messages by, to immoral places, penalty. Pen. C. § 273f 409 MILL SITES. See MINING CLAIMS. MINING CLAIMS, TUNNEL RIGHTS, MILL SITES. See, also, MINING COMPANIES. Co-owners, delinquent, notice to. C. C. § 1426o 242 Existing districts, not affected. C. C. § 1426r 244 Lode claims, boundaries. C. C. § 1426a 238 how located. C. C. § 1426 237 record of location. C. C. § 1426b 238 Mill site, location of. C. C. § 1426J 241 record of location. C. C. § 1426k 241 Mining districts, existing, not affected. C. C. 5 1426r 244 GENERAL INDEX. 837 MINING CLAIMS, ETC.— Continued. Page. Notice of location, amendment of. C. C. § 1426h 240 lode claim. C. C. § 1426 237 mill site. C. C. § 14261 241 placer claim. C. C. § 1426c 238 tunnel right. C. C. § 1426e 239 Placer claim, location of. C. C. § 1426c 238 record of location. C. C. § 1426d 239 Records, are evidence. C. C. § 1426p 243 copies of, as evidence. C. C. § 1426q 243 Survey of claims. C. C. § 1426i 240 Tunnel right, boundaries. C. C. § 1426f 239 location of. C. C. § 1426e 239 record of location. C. C. § 1426g 240 Work, annual, required. C. C. § 14261 241 failure to perform, disqualifies for relocation. C. C. § 1426s 244 fee for recording. C. C. § 1426n 242 record of. C. C. § 1426m 241 MINING COMPANIES. See, also, FOREIGN CORPORA- TIONS; MINING CLAIMS; also, Appendix Index, HOURS OF LABOR; MINES AND MINING. Agencies in other states for transfer of stock. C. C. § 586. 169 Books and balance sheets, open for inspection. C. C. § 588. 171 Consolidation of. C. C. § 587a 170 Defined as real estate, for purposes of taxation. Pol. C. § 3617, subd. 2 34S Directors, accounts and duties. C. C. § 588 171 liabilities. C. C. § 590 173 Fish, screens for protection of. Pen. C. § 629 429 Fish ways, must be provided. Pen. C. § 637 430 President, duty and liability. C. C. § 590 173 Secretary, accounts and duties. C. C. § 588 171 Statement of operations monthly. C. C § 588 171 Stock, agencies for transfer of. C. C. § 586 169 issued at transfer agencies, requirements. C. C. § 587. . . . 170 Stockholder may examine mine with expert. C. C. § 589.. 172 right to recover damages for refusal to permit inspec- tion of mine. C. C. § 590 173 Superintendent, accounts and report. C. C. § 588 171 MONEY. Lawful, only, to be circulated. Const., art. XII, § 5 12 Not created or issued. C. C. § 356 71 Public, may be deposited in banks. Const., art. XI, § 16%. . 7 Rate of Interest on, not to be regulated by legislature. Const., art. IV, § 25, subd. 23 4 Unlawful substitutes for. Pen. C. § 648 432 MORTGAGES. Classified with real estate, for purposes of taxation. Pol. C. { 3617, subd. 2 348 How assessed. Pol. C. $ 3627 350 Taxation of. Const., art. XIII, {4 21 See, also, Property; Taxation. S38 GENERAL INDEX. MUNICIPAL FUNCTIONS. Page. Delegation of to corporations, prohibited. Const., art. XI, § 13 7 NAME. Articles of incorporation must set forth. C. C. § 290 33 Application for change of, by corporation, certificate of secretary of state to accompany. C. C. P. § 1278 402 hearing. C. C. P. § 1278 402 where made. C. C. P. § 1275 401 Change of, copy of decree to be filed, where. C. C. § 300a. 41 tiled with secretary of state. C. C. P. S 1279 403 how effected. C. C. P. § 1276 401 not to be made by amending' articles of incorporation. C. C. § 362 78 Corporate succession by, right of. C. C. §354, subd. 1 70 Decree of court changing, to be filed with secretary of state. C. C. P. § 1279 403 of court changing, to be filed with secretary of state and county clerks. C. C. S 300a II Fee for filing copy of decree of change. Pol. C. § 416, subd. 25 261 Misnomer does not invalidate instrument. C. C. § 357 72 New one applied for, must not resemble name of another' existing corporation. C. C. P. § 127S 402 Not to resemble another so closely as to deceive. C. C. § 296 37 Order for change of, made by court. C. C. P. § 127S 402 form for. See Appendix Index, Forms and Precedents. Petition for change of, order to show cause. C. C. P. § 1277 402 Resembling any existing coi-poration not to be taken. C. C. § 296 37 "Trust" or "trustee" in corporate name forbidden unless authorized. C. C. § 290y 2 35 NATIONAL GUARD. Discrimination against members of. forbidden. Pen. C. § 421 419 NON-PROFIT CORPORATIONS. Admission fees and dues. C. C. § 599, subd. 2 180 Any number of persons may incorporate. C. C. § 593 177 Articles of incorporation, must contain what, in case of consolidation. C. C. § 605 185 must contain what facts. C. C. § 594 178 what may provide for. C. C. § 599 ISO Bonds of, may be issued. C. C. § 59S 179 Burial grounds may be held. C. C. § 595 17.x plots may be disposed of. C. C. § 598 179 By-laws, what may provide for. C. C. § 599 ISO Cemetery purposes, land which may be held for. C. C. § 595 178 Consolidation of like corporations. C. C. § 605 185 Directors, election and number of. C. C. § 593 177 GENERAL INDEX. 839 NON-PROFIT CORPORATIONS— Continued. Page. Directors, increase or decrease of. C. C. § 599, subd. 5 L80 must be members of corporation. C. C. § 305 44 must make annual report. C. C. § 597 179 organization of. C. C. § 599, subd. 5 180 Elections, how conducted. C. C. §599, subd. 3 ISO Fees for riling articles. Pol. C. § 416, subd. 4 261 Indebtedness, contracting and securing. C. C. § 599, subd. 6. 180 Members, admitted after incorporation. C. C. §600 181 expulsion or suspension. C. C. § 599, subd. 4 180 Membership, qualification for. C. C. §599, subd. 1 180 rights or privileges of, not transferable. C. C. § 601 181 Property, mortgage or sale of. C. C. § 598 179 nature of which may be acquired. C. C. § 595 178 Quorum, by-laws may provide what shall constitute. C. C. § 312 49 what shall constitute. C. C. § 599, subd. 3 180 Real estate, amount which may be held. C. C. § 595 178 NON-PROFIT CORPORATIONS, CO-OPERATIVE. See CO-OPERATIVE. OFFICERS. See, also, DIRECTORS. Directors, elected by members or stockholders. C. C. §302. 42 duties and qualifications may be fixed in by-laws. C. C. § 303, subd. 4 43 organization of must be immediately accomplished by election of a president, secretary, and treasurer. C. C. § 308 16 Officers, compensation and duties may be provided for in by-laws. C. C. §303, subd. 5 43 other than directors, by-laws may provide for manner of election and tenure of office. C. C. § 303, subd. 6 43 Subordinate, appointment of. C. C. §354, subd. 5 70 ORGANIZATION. See, also, ARTICLES OF INCORPORA- TION; BY-LAWS; DIRECTORS; ELECTIONS. Corporate organization to be under general laws. Const., art. XII. §1 10 Effected within one year. C. ( !. S 358 72 Fraudulent, penalty. Pen. C. §558 423 ORPHAN ASYLUMS. See, also, NON-PROFIT CORPORA- TIONS; RELIGIOUS CORPORATIONS. Orphan asylums may own certain real estate. C. C. § 595.. IT* PACK TRAILS. See ROADS, TOLL. PAWNBROKERS. Failure to keep certain register, penalty. Pen. C. §339.... 410 Gold bullion and quartz purchased, record of to be kept. Pen. C. §339 410 Refusal to allow inspection by officer, penalty. Pen. C. § 3 13 HI PERSONAL PROPERTY. See PROPERTY. 840 GENERAL INDEX. PIONEER SOCIETIES. Page. May hold certain real estate. C. C. § 596 179 See, also, Non-Profit Corporations; Co-operative Busi- ness Associations. PLACE OF BUSINESS. See BUSINESS. POLITICAL ASSOCIATIONS. Incorporation as co-operative business associations. C. C. § 653b 214 See, also, Non-Profit Corporations. POLL TAX, ROAD. Liability of employer. Pol. C. §2671 510 POWERS. See, also, DIRECTORS. Cease when business is not commenced within limited period. C. C. § 358 72 Controlled and exercised bv directors or trustees. C. C. § 305 44 Enumerated, as to what a corporation may exercise. C. C. § 354 70 Limitation of. C. C. § 355 71 Retained after sale of franchise under execution. C. C. § 391 86 Right to exercise, attorney general may inquire into. C. C. § 358 72 PRIVATE CORPORATIONS. Definition of. C. C. § 284 31 Purposes for which may be formed. C. C. § 286 31 PRIVATE PROPERTY. See PROPERTY. PRIVILEGES. Exclusive forbidden. Const., art. IV, §25, subd. 19 4 Special, limitations. Const., art. I, § 21 2 PROPERTY. See, also, PROPERTY, PERSONAL; PROP- ERTY, PRIVATE; PROPERTY, REAL; TAXATION. Articles of incorporation must be filed in county where situated. C. C. § 299 38 Assessed in county where situated. Pol. C. § 3641 355 where and by whom. Const., art. XIII, § 10 23 Assessment of, at cash value. Pol. C. § 3627 350 blank forms of statement. Pol. C. § 3630 354 Definition of, by constitution. Const., art. XIII, §1 19 C. C. § 14 28 C. C. P. § 17 378 Pen. C. § 7 405 Pol. C. § 17 259 Pol. C. § 3617 348 Fraudulent appropriation of, by officer of corporation. Pen. C. §504 420 handling of. Pen. C. § 506 421 In foreign country, sale of. C. C. § 364 80 Ownership denned. C. C. § 654 231 GENERAL INDEX. 841 PROPERTY— Continued. Page. Ownership, in what may exist. C. C. § 655 231 Sale of, under execution. C. C. P. § 688 391 Situated in foreign country, sale of. C. C. § 364 80 Statement required by assessor. Pol. C. §3629 353 Subject to taxation. Pol. C. § 3607 345 Taxation of. Const., art. XIII, SI 19 PROPERTY, PERSONAL. See, also, .PROPERTY. Attachment of, how effected. C. C. P. §542 388 Defined. C. C. § 14 28 C. C. P. §17 378 Pen. C. § 7 405 Pol. C. § 17 259 for purpose of taxation. Pol. C. § 3617, subd. 4 348 Sale of, under execution. C. C. P. § 688 '. 391 Trade- marks. C. C. § 991 232 See, also, General Index. Trade- marks. PROPERTY, PRIVATE. See, also. PROPERTY. Can not be taken without compensation. Const., art. I, §14 2 Rights of. Const., art. I, S 14 2 PROPERTY, REAL. See, also, PROPERTY. Coextensive with what. C. C. § 14 28 Defined. C. C. P. §17 378 Pen. C. §7 405 Pol. C. § 17 259 Holding of. Const., art. XII, § 9 13 How much may be acquired and held by corporations. C. C. § 360 76 Power of corporations to purchase and hold. C. C. § 354, subd. 4 70 Real estate defined. Pol. C. § 3617 348 Sale of, under execution. C. C. P. §688 391 PROXIES. At elections. C. 0. § 312 49 At meeting of members or stockholders. C. C. § 321b 54 By-laws may provide manner of voting. C. C. § 303, subd. 3. 4o Married women may give valid. C. C. § 325 58 PUBLIC CORPORATIONS. Defined. C. C. §284 31 PURPOSES. Articles of incorporation must set forth. C. C. § 290 33 PUBLIC CREDIT. See, CREDIT, PUBLIC. QUARRIES. Defined as real estate for taxation purposes. Pol. C. § 3617, subd. 2 348 See, also, Mining Companies; Property. 36— CL 842 GENERAL INDEX. QUORUM. Page. Board of directors, majority constitutes. C. C. §308 46 By-laws may provide for. C. C. § 303, subd. 2 43 Elections or votes, majority of members or of capital stock represented. C. C. § 312 49 when portion of stock owned by corporation. C. C. § 344. 67 See, also, Directors; Meetings; Members; Stockholders. RAILROAD COMMISSIONERS. See, also, Appendix In- dex, RAILROADS. Changes in rates, schedule of, must be served on com- panies affected. C. C. § 489 137 Election of, by districts. Const., art. 17, § 22 17 Powers of. Const., art. XII, § 22 17 RAILROAD DISTRICTS. Apportionment of state into. Const., art. XII, §22 17 Counties contained in first apportionment. Const., art. XII, § 23 19 RAILROADS. See, also, CARRIERS; RAILROAD COMMIS- SIONERS; also, Appendix Index, RAILROADS. Animals, care of, during transportation. Pen. C. §369b... 416 Annual report by corporation. C. C. §480 133 Application of provisions for co-operative business asso- ciations. C. C. § 6531 219 of provisions for non-profit co-operative corporations. C. C. § 653za 230 Are common carriers. Const., art. XII, § 17 15 Articles of incorporation must make certain statements. C. C. § 291 36 when consolidation made with other roads. C. C. § 473.. 129 Assessment of property for purpose of taxation, where made. Const., art. XIII, § 10 23 Accommodations for passengers must be furnished. C. C. § 481 133 sufficient room to be furnished. C. C. §483 134 Badges must be worn by employees. C. C. § 488 136 Baggage, checking of. C. C. § 479 132 Bell to be rung at certain places. C. C. § 486 136 Bonds may be issued to borrow money. C. C. § 456 121 sinking fund to redeem must be provided. C. C. § 457. . . . 121 Borrowing money. C. C. §456 121 Brakes and fenders required on certain cars. Pen. C. § 3G9a 415 Business must be reported on annually. C. C. §480 133 Capital stock, amount necessary to be ascertained. C. C. § 458 122 assessments on. C. C. § 332 63 fixed, when paid in, certificate to that effect. C. C. § 459. 122 must be reported on annually. C. C. §480 133 not transferable under certain conditions. C. C. § 455.... 120 percentage which must be paia on subscribed. C. C. §294 36 requirements for subscription to. C. C. § 293 36 Certificate of incorporation, requirements for. C. C. § 295.. 37 GENEBAL INDEX. 843 RAILROADS— Continued. Page. Check to be affixed to baggage. C. C. § 479 132 Combinations with other carriers prohibited. Const., art. XII, § 20 16 Consolidation with other corporations, how effected. C. C. § 473 129 Construction commenced within certain limit of time and continued. C. C. § 468 126 lands and materials for construction of road, power to purchase or condemn. C. C. § 465, subd. 7 123 machinery and buildings to be erected and maintained. C. C. §465, subd. 9 123 power of corporation to undertake. C. C. § 465, subd. 4.. 123 rails, quality and pattern of. C. C. § 491 138 surveys, right of way to make. C. C. § 465, subd. 1 123 Contracts allowed with other roads for use of tracks. C. C. § 473a 130 Crossings and intersections, adjustment of. C. C. §469.... 127 condemnation for right of way. C. C. § 469 127 crossings, acquirement of additional lands and material. C. C. §472 128 crossings at public highways, duty of company to pre- pare. Pol. C. § 2694 311 crossings, road may to be carried under, over, or on a level. C. C. § 472 128 cross or intersect highways, streams, etc., power to. C. C. §465, subd. 5 123 cross or intersect with other railroads, power to. C. C. § 465, subd. 6 123 Directors, elected when. C. C. § 454 120 Discrimination by, forbidden. Const., art. XII, §21 17 Dividends must be reported upon annually. C. C. § 480.... 133 Elevated roads. C. C. § 492 138 Fences must be maintained. C. C. § 485 135 Foreign companies have same rights as domestic corpora- tions. C. C. § 407 92 may lease or use road in common. C. C. § 473a 130 Franchises, assessment of, how and when made. Pol. C. § 3665 357 assessment of, power of state board of equalization. Pol. C. § 3692, subd. 5 365 assessment of, where and by whom. Pol. C. § 3628 351 elevated or underground roads. C. C. § 492 138 elevated or underground roads, application of provisions for. C. C. § 493 139 lease of whole or part of other roads. C. C. § 473a 130 of other roads, acquirement of. C. C. §465, subd. 12 123 sale of to other roads. C. C. § 494 139 Freight, property as, received by, may be held for charges. Pol. C. § 3152 338 property as, sold for charges, disposition of surplus pro- ceeds. Pol. C. § 3154 339 property as, unclaimed, may be sold for charges. Pol. C. §3153 338 rates for. See Rates. 844 GENERAL INDEX. RAILROADS— Continued. Page. Freight train, liability to passengers riding on. C. C. § 483.. 134 printed regulations, application of. C. C. § 484 135 Indebtedness, must be reported on annually. C. C. § 480... 133 unlawful contracting of, penalty. Pen. C. §566 426 unlawfully contracted, valid as against company. Pen. C. § 567 427 Liabilities and penaities, damages on refusal to transport. C. C. § 482 134 during transportation of persons on baggage or work cars. C. C. § 483 134 for injuring animals, in case fences are not maintained. C. C. §485 135 in case bell is not rung or whistle sounded. C. C. § 486. . 136 in case of failure to post rules. C. C. § 484 135 on refusal to furnish tickets. C. C. § 490 138 when increasing rates of purchased roads. C. C. § 494. . . . 139 Line of road may be changed. C. C. § 467 126 must not be changed to avoid places named in articles of incorporation. C. C. § 467 126 Maps and profiles to be filed. C. C. § 466 126 Mortgages may be given to borrow money. C. C. § 456.... 121 taxation of, in case of. Const., art. XIII, § 4 21 Motive power, what may be used. C. C. § 465a l-- r > Operation, definition of. C. C. § 468 126 must be established and maintained. C. C. § 468 126 of road, when above elevation of 5,000 feet. C. C. § 468.. 126 Overcharge by officer or employee, penalty. Pen. C. § 525.. 421 Passes not to be issued to public officers. Const., art. XII, § 19 16 Powers, enumerated. C. C. § 465 123 Property, apportionment of assessment of, record. Pol. C. § 3666 359 assessment of, by state board of equalization, annually. Pol. C. § 3665 357 assessment of, by state board of equalization, statement to be furnished by corporation. Pol. C. § 3664 356 assessment of, powers of state board of equalization with reference to. Pol. C. § 3692 365 assessment of, where and by whom. Pol. C. § 3628 351 real, by grants and donations, right of to receive, hold, or convey. C. C. § 465, subd. 2 123 real, right to acquire and hold. C. C. § 465, subd. 3 123 rolling stock, rails, etc., assessment of. Pol. C. § 3665 357 sale of property to other roads. C. C. § 494 139 statement of, to state board of equalization. Pol. C. § 3664 356 Public lands, abandoned by corporation, revert to state. C. C. § 477 , 131 right of way not to apply to land within municipalities. C. C. § 475 131 right of way over. C. C. § 474 131 wood, stone and earth may be taken from. C. C. §476.. 131 Rails, designated, quality. C. C. § 491 138 GENERAL INDEX. 845 RAILROADS — Continued. Page. Rates, any increase of on purchased road not to be made without governmental authority. C. C. § 494 139 fare can not to collected unless badge is shown. C. C. § 488 136 overcharge by officer or employee. Pen. C. § 525 421 power of corporation to make. C. C. § 465, subd. 10 123 refusal of passenger to pay fare. C. C. § 487 136 tolls and compensation, regulation of. C. C. § 465, subd. 10 1 23 when changed, must be posted. C. C. § 489 137 special for commutation or excursion tickets. Const., art. XII, §21 17 when lowered in competition, not to be increased. Const., art. XII, § 20 16 when lowered in competition, on purchased roads, not to be raised without certain permission. C. C. §494 139 when regulated by railroad commissioners, must be served on companies. C. C. § 489 137 Report by corporation to be made annually. C. C. § 480.... 133 Rights of connection, crossing, or intersection. Const., art. XII. § 17 joining or uniting with other roads. C. C. § 465, subd. 6. . 123 Right of way over public lands. I '. C. § 474 131 over public lands not to apply to municipalities. C. r '. § 475 13J streets and highways within incorporated cities or towns not to be used without municipal authoritv. C. ( ' § 470 when selected, must be submitted to certain authorities. C. C. § 478 132 Rolling stock, power of assessment of, by state board of equalization. Pol. C. § 3692 365 when and where assessed. Pol. C. § 3665 357 Rules and regulations must be posted up in cars. C. C. §484 135 Speed of cars and locomotives, power to regulate. C. C. S 465, subd. 11 123 Subject to legislative control. Const., art. XII, §17 15 Taxes, assessment by state board of equalization, paid to state treasurer. Pol. C. § 3669 recovery of, illegally levied. Pol. C. § 3669 Tickets must be furnished on tender of fare. C. C. Time tables, notice to be given publicly of starting and running cars. C. C. §481 133 to be regulated. C. C. § 465, subd. 10 123 Transportation, damages, liability for, in case of refusal. C. C. § 482 134 of persons and property. C. C. § 481 133 persons and property to be carried, and tolls received therefor. C. C. § 465, subd. 8 tolls and compensation for, regulation of. C. C. § 465 subd. 10 123 Underground roads. C. C. § 492 138 846 GENERAL INDEX. RAILROADS— Continued. Page. Wharves and piers, authority to construct. Pol. C. § 2921.. 336 Whistle to be sounded at certain places. C. C. §486 136 RAILROADS, STREET. See, also, CARRIERS. Accommodations, comfort and convenience required. C. C. § 501 143 Actions against company, proof of agency in certain cases. C. C. §506 145 Application of laws relative to railroads. C. C. §510 147 of title to natural persons. C. C. § 511 147 Brakes. C. C. § 501 143 Brakes and fenders. Pen. C. § 369a 415 Cars, license tax upon. C. C. § 50S 146 Consolidation with other corporations, articles of incorpo- ration and consolidation. C. C. § 473 129 with other corporations, procedure. C. C. § 473 129 Construction, conditions required by local authorities. C. C. § 498 142 grading, tracks for. C. C. § 509 146 obstruction of streets, limitation upon. C. C. § 500 143 time allowed for. C. C. § 502 144 Contracts, cities of the fifth and sixth classes. See Ap- pendix Index, Municipal Corporations. Crossings and intersections, other tracks. C. C. §500 143 Fare, rate of. C. C. § 501 143 Franchises. See, also, Appendix Index, Franchises; Mu- nicipal Corporations. authority to lay tracks, how obtained. C. C. § 497 141 cities and towns may make certain reservations. C. C. § 497 141 forfeited when construction not completed within certain time. C. C. § 502 144 further regulations may be attached when granted. C. C. § 503 144 Hours of labor of employees. Pol. C. § 3246 343 penalty for employing persons for excessive hours. Pol. C. §3250 343 Liabilities and penalties, in case comfort and safety not provided. C. C. § 501 143 in case of overcharge. C. C. § 504 145 in case of refusal to furnish tickets. C. C. § 505 145 in case of working employees over twelve hours. Pol. C. § 3250 343 Lines may be used by different companies under certain conditions. C. C. § 499 142 Motive power, determined by local government. C. C. § 497 141 on tracks for grading purposes. C. C. § 509 146 Rates, not to exceed certain limits. C. C. §501 143 overcharge not allowed. C. C. § 504 145 Right of way, along streets. C. C. § 497 141 forfeited when construction not completed. C. C. § 502... 144 restrictions upon. C. C. § 498 142 GENERAL INDEX. 847 RAILROADS, STREET— Continued. Page. Streets and highways, municipalities reserve certain rights in reference to. C. C. § 507 . . 146 repair of. C. C. § 507 146 Streets or tracks may be used by different companies. C. C. § 499 142 Tickets must be furnished to purchasers. C. C. § 505 145 Track, authority to lay. C. C. § 497 141 laying, limit on obstruction of streets. C. C. § 500 143 manner of construction, specifications for. C. C. § 498.... 142 use of by two or more lines of road. C. C. § 499 142 when crossing other tracks, requirements. C. C. § 500.... 143 REAL ESTATE AND REAL PROPERTY. See PROPERTY. RECEIVERS. See, also, DISSOLUTION. Appointment of, in event of dissolution. C. C. P. § 564 390 by court. C. C. P. § 565 : 391 RECORDS. See BOOKS AND RECORDS. RELIGIOUS CORPORATIONS. See, also, BENEVOLENCE AND CHARITY; COLLEGES AND SEMINARIES OF LEARNING; NON-PROFIT CORPORATIONS. Articles of incorporation mav include church discipline. C. C. §599, subd. 7 180 what must set forth. C. C. § 594 178 Buildings, used for religious purposes exclusively, exempt from taxation. Pol. C. § 3611 347 Business, place of, need not be maintained. Const., art. XII, §14 14 By-laws, what may provide. C. C. § 599 180 Cemetery purposes, holding of land for. C. C. § 595 178 holding of land for, when incorporated as a church or society. C. C. § 603 183 land held for, when incorporated as a corporation sole. C. C. §602 181 land held for, when corporations are formed by repre- sentative body. C. C. § 604 184 Churches, exempt from taxation. Const., art. XIII, §1^4... 20 Churches and societies, how incorporated. C. C. § 603 183 Consolidation of like corporations. C. C. §605 185 Corporation, sole, articles of incorporation must set forth certain facts. C. C. § 602 181 authorities and powers. C. C. § 602 181 continuance of existence under § 287, Civil Code. C. C. § 602 181 continuous existence of. C. C. § 602a 183 property held by. C. C. § 602 181 Directors, election of. C. C. § 603 183 election of, certain conditions not to apply. C. C. § 307.. 45 Exempt from certain limitations as to land. C. C. § 595.... 178 Name, change of, how effected. C. C. P. § 1276 401 Property held by. C. C. § 603 183 restrictions which do not apply. C. C. §595 17s 848 GENERAL INDEX. RELIGIOUS CORPORATIONS— Continued. Page. Property, when consolidated corporations. C. C. §605 185 when incorporated as corporation sole. C. C. § 602 181 when incorporated by representative body. C. C. § 604.. 184 Records of. C. C. § 378 S3 Representative body, may incorporate, how. C. C. § 604... 184 Rules, regulations, or discipline of religious societies may govern. C. C. § 599, subd. 7 ISO REPORTS. See, also, ADVERTISEMENTS. Frauds in. Pen. C. § 564 426 Unauthorized use of names in. Pen. C. § 559 -424 RESIDENCE. See, also, ACTIONS. Recorded for purpose of summons. C. C. §1163 234 RIGHT OF WAY. See, also, EM IN ENT DOMAIN. Not to be obstructed to navigable waters. Const., art. XV, § 2 25 Of corporations. Const., art. I, § 14 2 ROADS. See, also, ROADS, TOLL; ROADS, WAGON. Road companies not to be chartered or licensed by legisla- ture. Const., art. IV, § 25, subd. 25 4 Road poll tax, liability for, of employers. Pol. C. § 2671 310 ROADS, TOLL. See, also, ROADS, WAGON. Abandonment of road. Pol. C. § 2799 317 Action for penalty or trespass. Pol. C. § 2817 320 Application of provisions of law. Pol. C. § 2802 31S Application for construction, and notice thereof. Pol. C. § 2779 312 grant of, by supervisors. Pol. C. § 2782 313 hearing upon. Pol. C. § 2781 313 special meeting of supervisors to consider. Pol. C. § 2780. 312 when unnecessary. Pol. C. § 2789 315 Appraisement and award in case of sale to county. Pol. C. §2801 318 Automobiles and other horseless vehicles, roads for, pro- visions to apply. Pol. C. § 2S02 318 Branches and extensions. Pol. C. § 27S6 314 Breadth of way. Pol. C. § 2784 313 Bridges across streams. Pol. C. § 2791 315 See, also, General Index, Bridges and Ferries. Commissioners, appointed to lay out road. Pol. C. § 2782.. 313 '•mnpensation of. Pol. C. § 2785 314 how appointed for other counties. Pol. C. § 2783 313 laying out of road by. Pol. C. § 2781 313 Completion of road and inspection. Pol. C. § 2797 316 Construction, character of and requirements. Pol. C. § 2793. 315 County may purchase road. Pol. C. § 2S00 317 Damages for use of highways. Pol. C. § 2788 314 Defects in road, report of. Pol. C. § 2829 321 Encroachments, removal of. Pol. C. § 2815 319 penalty for failure to remove. Pol. C. § 2816 319 GENERAL INDEX. S49 ROADS, TOLL— Continued. PAGE. Fees for inspection of road. Pol. C. § 2831 321 Franchise, expiration by limitation, road becomes public highway. Pol. C. § 2619 310 power of supervisors to grant. Pol. C. § 4041, subds. 4, 32, and 33 369 Franchise or license, application for, when majority of supervisors are interested. Pol. C. § 4323 '374 Guideposts. Pol. C. § 2796 316 Horseless vehicles, roads for, application of provisions. Pol. C. § 2802 318 paths and roads for, franchises granted by supervisors. Pol. C. § 4047 372 Highways, exclusive use of lands forming, damages. Pol. C. 2788 314 Inspection of road on completion. Pol. C. § 2797 316 Lands acquired by grant. Pol. C. § 2787 314 Map of road. Pol. C. § 2785 314 Milestones and posts. Pol. C. § 2795 316 Orchards and gardens, road through. Pol. C. § 2790 315 Out of repair, gate to be thrown open. Pol. C. § 2827 320 penalty for closing gate. Pol. C. § 2828 320 Pack trails. Pol. C. § 2832 321 Plank road, how constructed. Pol. C. § 2793 315 not to be constructed on road of another company with- out consent. Pol. C. § 2792 315 Plank road companies, bridge of, fast driving over, notice of penalty. Pol. C. § 2938 337 Prosecution of company for disobedience of notice for re- pairs. Pol. C. § 2830 321 Relaying of road, material. Pol. C. § 2794 316 Right of way over disputed land. Pol. C. § 2787 314 through orchards and gardens. Pol. C. § 2790 315 when obtained by purchase or gift. Pol. C. § 2789 315 Road companies, not to be chartered or licensed by legis- lature. Const., art. IV, § 25, subd. 25 4 Turnpike roads, how constructed. Pol. C. §2793 315 Sale of road to county. Pol. C. § 2800 317 appraisement in case of. Pol. C. § 2801 318 Toll, commencement of taking. Pol. C. §2798 317 gates and tollhouses. Pol. C. § 2798 317 taking without authority. Pen. C. § 380 417 persons exempt from payment. Pol. C. § 2814 318 Width of road. Pol. C. § 2793 315 breadth of way. Pol. C. § 2784 313 ROADS, WAGON. See, also, ROADS, TOLL. Application of title to natural person. C. C. § 523 151 Articles of incorporation must also state, what. C. C. § 291. 36 must be accompanied by certain affidavit before certifi- cate of incorporation may be issued by secretary of state. C. C. § 295 37 Assessment of, for taxation, where. Pol. C. §3663 355 850 GENERAL INDEX. ROADS, WAGON— Continued. Page. Bicycles, motor cycles, and other horseless vehicles, roads for. C. C. § 524 151 Bridges and ferries may be maintained. C. C. § 514 148 See, also, General Index, Bridges and Ferries. Capital invested, how repaid. C. C. § 521 150 Certificate of incorporation, requirements for. C. C. § 295.. 37 Commissioners to lay out road. C. C. § 512 147 Crossings, how constructed. C. C. § 513 148 Defects in road, notice of. Pol. C. § 2827 320 Dividends, percentage allowed. C. C. § 514 148 Franchise, expiring by limitation, road becomes public highway. Pol. C. § 2619 310 power of supervisors to grant. Pol. C. § 4041, subds. 4, 32, and 33 369 Horseless vehicles, construction of paths or roads for. C. C. § 524 151 paths and roads for, power of supervisors to grant fran- chises. Pol. C. § 4047 372 Map to be filed. C. C. § 513 148 Out of repair, gate to be thrown open. Pol. C. § 2827 320 penalty for closing gate. Pol. C. § 2828 320 Percentage which must be paid on stock subscribed before articles of incorporation can be filed. C. C. §294 36 Property may be mortgaged. C. C. § 522 151 Rates of toll to be posted. C. C. § 516 149 Repair of bridges, ferries, and roads. C. C. §514 148 Subscription, amount required, to capital stock. C. C. § 293 36 Toll, avoiding payment of, penalty. C. C. § 519 150 detention for non-payment of, not to be unreasonable. C. C. §518 150 detention until same is paid. C. C. § 517 149 fraudulently avoiding, penalty. C. C. §520, subd. 4 150 not to be taken on public roads. C. C. § 515 149 overcharge of, penalty. C. C. § 518 150 persons exempt from payment. Pol. C. §2814 318 rate of, to be fixed by supervisors. C. C. § 514 148 rate of, to be posted. C. C. § 516 149 reduction of, when capital invested is repaid. C. C. § 521 150 unlawful taking of, penalty. C. C. § 514 148 Trespasses upon property of corporation, penalty. C. C. § 520 150 Width of road. C. C. § 513 148 of road, common road. Pol. C. § 2793 315 SAVINGS AND LOAN SOCIETIES. See BANKS, SAVING AND LOAN. SEAL. Corporation may make and use. C. C. § 354, subd. 3 70 SECRETARY OF STATE. Affixing certificate and seal of state, fee. Pol. C. § 416, subd. 3 261 GENERAL INDEX. 851 SECRETARY OF STATE— Continued. Page. Agent, notice of appointment of, fee for filing. Pol. C. § 416, subd. 20 261 Articles of incorporation, fee for filing. Pol. C. § 416, subd. 4 261 fee for recording. Pol. C. § 416, subd. 5 261 when amended, fee for filing. Pol. C. § 416, subd. 10 261 Bonded indebtedness, certificate of creation of or increase or decrease of, fee for filing. Pol. C. § 416, subd. 11 261 Certificate of incorporation, issuance of, fee. Pol. C. § 416, subd. 6 261 Business, principal place of, filing notice of removal, fee. Pol. C. § 416, subd. 9 261 Capital stock, certificate of increase of, fee for filing. Pol. C. § 416, subd. 7 261 certificate of decrease of, fee for filing. Pol. C. § 416, subd. 8 261 certificate of increase or decrease of, fee for issuance. Pol. C. § 416, subd. 12 261 Certificate of filing, any document, fee for issuance, unless otherwise provided. Pol. C. § 416, subd. 16 261 Certified copies, of any document, affixing certificate and seal to. Pol. C. § 416, subd. 3 261 comparing, with original or with copy of original on file in office. Pol. C. § 416, subd. 2 261 copying. Pol. C. § 416, subd. 1 261 when copy furnished by applicant, fee for issuance. Pol. C. § 416, subds. 2 and 3 261 when copy made by secretary of state, fee for issuance. Pol. C. § 416, subds. 1 and 3 261 Comparing of copy of any document with original, or with certified copy of original, fee. Pol. C. § 416, subd. 2 261 Continuance of existence, certificate on, fee for filing. Pol. C. § 416, subd. 13 261 certificate of, fee for issuance. Pol. C. § 416, subd. 14 261 Copying document or paper on file, fee. Pol. C. § 416, subd. 1 2G1 Directors, increase or decrease of number of, fee for filing certificate. Pol. C. § 416, subd. 17 261 increase or decrease of number of, fee for issuance of certificate. Pol. C. § 416, subd. 18 261 Dissolution, order and decree of court for, filing copy of, fee. Pol. C. § 416, subd. 25 261 Name, change of, order and decree of court, filing copy of, fee. Pol. C. § 416, subd. 25 261 Trade- mark, filing of claim to, and issuance of certificate of filing, fee. Pol. C. § 416, subd. 15 261 See, also, Fees; County Clerk; Insurance Commissioner. SECRET SOCIETIES. See FRATERNAL AND SECRET SOCIETIES. SECURITIES. See, also, BONDS AND INDEBTEDNESS; MORTGAGES; PROPERTY; TAXATION. Assessment and taxation. Const., art. XIII, § 4 21 Falsification of. Pen. C. § 563 425 852 GENERAL INDEX. SOCIAL ORGANIZATIONS. See, also, CO-OPERATIVE BUSINESS ASSOCIATIONS; NON-PROFIT CORPO- RATIONS. Page. Directors, election of, certain conditions not to apply. C. C. §307 45 number of and term. C. C. § 290, subd. 5 33 Exempt from certain limitations as to land. C. C. § 595 178 Incorporation as co-operative business associations. C. C. § 653b 214 SPORTING CLUBS. See, also, CO-OPERATIVE BUSINESS ASSOCIATIONS; NON-PROFIT CORPORATIONS. Aquatic sport, property may be set aside for, by harbor commissioners. Pol. C. § 2524a 309 STATE. See, also, ATTORNEY GENERAL. Aid of private corporations forbidden. Const., art. IV, §22 3 Credit not to be loaned to corporations or subscriptions made to stock. Const., art. XII, § 13 14 May inquire into affairs of corporation and bring action for dissolution. C. C. § 358 72 STATE BOARD OF EQUALIZATION. See EQUALIZA- TION. STATUTE OF LIMITATIONS. Actions against banking corporations to recover deposits, no time limit. C. C. P. § 348 382 Directors, in certain cases, no statute of limitations to bar action against. C. C. § 309 46 Foreign corporations must comply with certain conditions before entitled to benefit. C. C. § 406 91 STOCKHOLDERS. See, also, CAPITAL STOCK; ELEC- TIONS; MEETINGS. Action on amendment of articles of incorporation. C. C. § 362 7S on continuance of existence under code. C. C. § 287 32 on extension of corporate existence. C. C. § 401 88 on renewal of corporate existence. Const., art. XII, § 7.. 12 Actions against, joint or several. C. C. § 322 55 to be brought within three years. C. C. P. § 359 382 Admitted to corporation. C. C. § 354, subd. 7 70 By-laws, assent to adoption of. C. C. § 301 42 may amend or repeal. C. C. § 304 43 Consent, written, and all present, validates proceedings at meetings, however called. C. C. §§ 317, 31S 52 Deceased persons, representation of. C. C. §313 50 Definition of "stockholders." C. C. § 298 38 term "stockholder" as applied to certain persons. C. C. § 322 55 Directors elected by. C. C. § 302 42 election of, notice may be waived in writing. C. C. § 302 42 GENERAL INDEX. 853 STOCKHOLDERS— Continued. Page Directors, increase or decrease of number by stockholders. C. C. § 290, subd. 5 33 may be removed from office by stockholders. C. C. § 310. 48 must be elected from among stockholders. C. C. § 305... 44 Franchises, consent of two thirds of stock required to lease or transfer. C. C. § 361a 77 Insane persons, representation of. C. C. § 313 50 Justice of the peace may be applied to to order meeting. when. C. C. § 311 49 Liability of, constitutional. Const., art. XII, §3 11 no difference between holders of common and preferred stock. C. C. § 290, subd. 6 33 under code. C. C. § 322 55 when stock held in representative capacity as security, or by a trustee. C. C. § 322 55 Meeting of, amount of stock which must be represented. C. C. § 312 . 49 by-laws may provide for. C. C. § 303, subds. 1 and 2 43 held where. C. C. § 319 52 representation of minors, insane or deceased persons. C. C. §.313 50 notice of, how given, in certain cases, and waivure of notice. C. C. §§301, 302 42 validation of, however called, by written assent. C. C. §§ 317, 318 52 , voting power of stock at. Const., art. XII, §12 14 voting power of stock, cumulative. C. C. § 307 45 voting power of stock, when portion owned by corpora- tion. C. C. § 344 67 who entitled to vote at. C. C. § 321b 54 Minors, representation of. C. C. § 313 50 Non-resident, bond required when stock transferred. C. C. § 326 59 Protection. See Appendix Index, Fraudulent Reports. Proxy, by-laws may prescribe mode of voting by. C. C. 303, subd. 3 43 constitutional right to use. Const., art. XII, § 12 14 right to vote by. C. C. § 307 45 use of at meetings. C. C. 321b 54 Quorum, what constitutes. C. C. § 312 49 what constitutes, by-laws may provide. C. C. § 303, subd. 2 43 Stock owned by corporation, majority of remaining shares is majority for voting purposes. C. C. § 344 67 Two-thirds interest required to sell property in foreign country. C. C. § 364 80 Vote necessary on increasing or diminishing capital stock or bonded indebtedness. C. C. § 359 72 STORAGE CORPORATIONS. See WAREHOUSEMEN. SUCCESSION. Right of, by corporate name. C. C. § 354, subd. 1 70 See, also, Existence. S54 GENERAL INDEX. SUITS. See ACTIONS. SUMMONS. See ACTIONS. SUPERVISORS. See, also, FRANCHISES; also, Appendix Index, FRANCHISES. Page. Application for franchise, when majority of board are in- terested. Pol. C. § 4323 374 Powers of, in general, in relation to franchises. Pol. C. § 4041 360 in relation to franchises, additional. Pol. C. § 4047 372 SURETIES. See INSURANCE, FIDELITY AND SURETY; also, Appendix Index, BONDS. TAXATION. See, also, EQUALIZATION, STATE BOARD OF; PROPERTY. Capital stock, exempt from. Pol. C. § 3608 346 national bank stock, shares are subject to. Pol. C. §§ 3608, 3609 346 Certain taxes payable to treasurer of state. Pol. C. § 3669 362 County rate of, basis for. Pol. C. § 3671 365 Delinquent taxes, controller of state to sue. Pol. C. § 3670.. 364 Equalization of, by state board of equalization. Pol. C. § 3692 365 Income tax, assessment and collection. Const., art. XIII, § 11 23 national, upon corporations. See Appendix Index, Fed- eral Income Tax Law. Legislature to pass laws to enforce. Const., art. XIII, § 13 23 License tax, annual, upon corporations. See Appendix In- dex, License Tax. Property, subject to. Const., art. XIII, § 1 19 where and by whom assessed. Const., art. XIII, §10 23 Securities. Const., art. XIII, § 4 21 TELEGRAPH AND TELEPHONE CORPORATIONS. See, also, CARRIERS; also, Appendix Index, UNITED STATES. Application of provisions for co-operative business associa- tions. C. - C. § 6531 219 of provisions for non-profit co-operative corporations. C. C. § 653za 230 Articles of incorporation, what must state. C. C. §291 36 Assessment of, for purposes of taxation. Pol. C. § 3663.... 355 Cables, damage to. C. C. § 539 155 Certificate of incorporation, requirements for. C. C. § 295.. 37 Construction of lines over public property. C. C. § 536 155 Contracts, cities of the fifth and sixth classes. See Appen- dix Index, Municipal Corporations. Charges, of telegraph corporations, regulation of by the legislature. Const., art. IV, § 33 6 GENERAL INDEX. 855 TELEGRAPH AND TELEPHONE CORPORATIONS— Contd. Franchises. See, also, Appendix Index, Franchises, Mu- nicipal Corporations. Page. may be leased or sold. C. C. § 540 156 Minors not to be sent to certain places. Pen. C. § 273e 408 Monument to be erected by, showing location of cable. C. C. § 539 155 Property of, damage to, liability. C. C. §537 155 malicious or willful damage to, penalty. C. C. § 538 155 may be leased or sold. C. C. § 540 156 Percentage which must be paid on stock subscribed. C. C. § 294 36 Rights of way. C. C. § 536 155 Subscription required to capital stock. C. C. § 293 36 TERM OF EXISTENCE. See EXISTENCE. TOLL ROADS. See ROADS, TOLL. TRADE-MARKS. See, also, Appendix Index, TRADE- MARKS. Adoption of, by labor organization. Pol. C. § 3200 342 Appropriated for exclusive use. C. C. § 991 232 Are property. C. C. § 655 231 Assignment of. Pol. C. § 3199 342 Certificate of filing. Pol. C. § 3198 341 Counterfeited trade- mark, definition of phrase. Pen. C. § 352 413 Counterfeiting of. Pen. C. § 350 412 Definition of phrase "trade-mark." Pen. C. §353 413 of "trade-marks." Pol. C. § 3196 340 Destroying or defacing. Pen. C. § 354 }i 414 Exclusive use of, how secured. Pol. C. § 3197 341 Farm name may be registered. Pol. C. § 3196a 340 use of, as trade-mark. Pol. C. § 3196b 341 Fees for filing with secretary of state. Pol. C. § 416, subd. 15 261 Filing of. Pol. C. § 3197 341 Forged trade-mark, definition of phrase. Pen. C. §352.... 413 Fraudulent use of. Pen. C. § 349a 411 Identical with one already filed, not to be adopted. Pol. C. § 3198 341 Injunction against wrongful use of. Pol. C. §3199 342 Labor organization may adopt and use. Pol. C. § 3200 342 using, right of protection. Pol. C. § 3201 342 Record of. Pol. C. § 3198 341 Refilling of casks, bottles, or other receptacles bearing trade-mark. Pen. C. § 354 413 Selling or refilling casks or receptacles bearing trade-mark. Pen. C. § 354^ 414 See, also, Appendix Index, Trade-marks. Similar to one already filed, not to be adopted. Pol. C. § 3198 341 Statement accompanying, warranted. C. C. §1773 245 S5G QENEBAL INDEX. TRADE- MARKS— Continued. Page. United States flag, not to be used. Pen. C. § 310 409 Warrant of, by sale of article. C. C. § 1772 24T, TRAILS. See ROADS, TOLL; ROADS, WAGON. TRANSPORTATION COMPANIES. See, also, CANAL COMPANIES; CARRIERS; RAILROADS. Are common carriers. Const., art. XII, § 17 15 Discrimination by, forbidden. Const., art. XII. §21 17 Passes to public officers not to be issued. Const., art. XII, § 19 16 Subject to legislative control. Const., art. XII, §17 15 TREASURER OF STATE. Action against, for recovery of taxes. Pol. C. §3669 362 Payment to, of certain taxes. Pol. C. § 3669 362 Investment companies, deposit of cash or securities by. Pol. C. § 635b 302 duty of, with reference to. Pol. C. § 635d 304 securities substituted for cash deposit. Pol. C. § 635f 305 withdrawal of deposit by. Pol. C. § 635e 304 TRUST COMPANIES. See Banks; also, Appendix Index, BANKS AND BANKING; EXECUTORS. TRUST, CRIMINAL. See Appendix Index, COMBINA- TIONS. TRUSTEES, BOARDS OF. See DIRECTORS. TUNNEL RIGHTS. See MINING CLAIMS. TURNPIKES. See ROADS, TOLL; ROADS, WAGON. UNDERTAKINGS. See SURETIES. UNDERWRITERS. Incorporation of, to discover and prevent fires and save life and property. C. C. § 453a 109 Expenses of. C. C. § 453c Ill Members of, yearly statement required from. C. C. § 453c. Ill Powers of. C. C. § 453a 109 Rights of way of, when running' to fires. C. C. § 453b 110 Yearly meeting of members, and provision for expenses. C. C. § 453e Hi UNITED STATES. Flag, not to be used for advertising purposes. Pen. C. § 310 409 Right of way over public lands. See Appendix Index, United States. WAGON ROADS. See ROADS, WAGON. WAREHOUSEMEN. See, also, Appendix Index, WARE- HOUSEMEN. Fire, liability for damage. C. C. § 1858e 24« Penalties and liabilities for violation of law. C. C. § 1858f.. 248 GENERAL INDEX. 85Y WAREHOUSEMEN— Continued. Page. Property, advances made upon may be sold after sixty days. Pol. C. § 3156 339 liability for damage to, when stored. Pol. C. § 3155 339 receipted for, must not be removed without consent. C. C. § 1858a 246 received by, may be held for charges. Pol. C. § 3152 338 sold for charges, disposition of surplus proceeds. Pol. C. § 3154 339 unclaimed, may be sold for charges. Pol. C. § 3153 338 Receipts, classification of. C. C. § 1858b 247 negotiable, indorsement of. C. C. § 1858c 247 non-negotiable, delivery of property. C. C. § 1858d 247 not to issue until property is received. C. C. § 1858 246 regulations for issue. C. C. § 1858 246 Storage corporations, charges by, when regulated by legis- lature. Const., art. IV, § 33 6 WATER. See, also, WATER AND CANAL COMPANIES. Right to collect rates for. is a franchise. Const., art. XI V, § 2 25 Use of, is public use, when. Const., art. XIV, § 1 24 WATER AND CANAL COMPANIES. See, also. Appendix Index, WATER COMPANIES. Canal companies, are common carriers. Const., art. XII, §17 15 crossings, at public highways, duty of company to pre- pare. Pol. C. § 2694 31] subject to legislative control. Const., art. XII, §17 15 See, also, Carriers. Water companies, contracts with cities for supply of water. Pol. C. §4412 376 contracts with cities, reservations and restrictions by common council. Pol. C. § 4413 376 contracts with cities', restrictions and regulations. C. C. §§ 548, 549 156 furnished free in case of fire. C. C. § 549 156 See, also, Appendix Index, Municipal Corporations, franchises, granting of, by common council of cities. Pol. C. § 4410 375 franchises, reservation by cities. Pol. C. § 4411 375 See, also. Appendix Index, Franchises; Municipal Cor- porations. rates to be fixed by law. Const., art. XIV, § 1 24 right to collect rates is a franchise. Const., art. XIV, § 2 25 transfer of shares of stock in. C. C. § 324 58 use of streets by, for pipes. Const., art. X, § 19 8 use of water by, subject to state control. Const., ait. XIV, § 1 24 water rights may be divided among stockholders. C. C. § 309 46 37— CL 858 GENERAL INDEX. WATER AND CANAL COM PAN I ES— Continued. Page. Water and canal companies, authority to be obtained from local government. C. C. § 548 156 bridges, construction and repair of. C. C. § 551 157 crossings, regulations concerning. C. C. §551 157 delivery of water, regulations for. C. C. § 549 156 ditches, assessment of, for purposes of taxation. Pol. C. § 3663 355 fish, screens for protection of. Pen. C. § 629 429 nshways must be provided. Pen. C. § 637 430 highways not to be obstructed. C. C. § 551 157 irrigation, risht to use water for is an easement. C. C. g 552 15S obligation to furnish water. C. C. § 552 158 rates may be regulated by municipality. C. C. § 548 156 rates must be reasonable. C. C. § 549 156 WATER FRONT. Access to, not to be obstructed. Const., art. XV, §2 25 Eminent domain exists in state. Const., art. XV, SI 25 Tide lands fronting on. to be withheld from grant or sale. Const., art. XV, § 3 25 WATER USERS. See Appendix Index, WATER COM- PANIES. WHARVES, CHUTES AND PIERS. Action, final, of supervisors on application for construction. Pol. C. § 2910 334 Annual report to supervisors. C. C. § 530 153 Application of title to natural persons. C. C. §531 154 Application for construction, what to contain. Pol. C. § 2907 333 Authority to construct and operate, granted by super- visors. Pol. C. § 2906 332 granting of, by incorporated cities and towns. Pol. C. § 2920 336 restrictions on. Pol. C. § 2919 336 to take tolls for twenty years. Pol. C. § 2910 334 to take tolls must be obtained. C. C. § 528 152 to use land and water on either side of wharf. Pol. C. § 2912 334 Cities and towns, incorporated, granting of authority by. Pol. C. § 2920 336 See, also, Appendix Index, Municipal Corporations. Construction must be commenced and completed, when. C. C. §529 152 must be completed within two years. Pol. C. § 2919 336 Corporate existence terminates, under certain contingen- cies. C. C. § 529 152 Dimensions required. Pol. C. §2914 335 Franchise, application for, when majority of supervisors are interested. Pol. C. § 4323 374 GENERAL INDEX. 859 WHARVES, CHUTES AND PI ERS— Continued. Page. Franchise, power of supervisors to grant. Pol. C. § 4041, subds. 4 and 32 369 what constitutes. Pol. C. § 2915 335 License, and license tax. Pol. C. § 2917 336 fixed annually by supervisors. Pol. C. § 3378 344 term of. Pol. C. § 2906 332 Operation must commence, when. C. C. § 529 152 Penalty, when out of repair. Pol. C. § 2918 336 Railroads, authority to construct wharves and piers, granting of. Pol. C. § 2921 336 Repairs. Pol. C. S 291S 336 Right of way, application for. Pol. C. § 2908 333 first to be obtained. Pol. C. § 2913 334 notice to non-resident owner. Pol. C. § 2909 333 on either side of wharf. Pol. C. § 2912 334 on overflowed and tide lands. Pol. C. § 2911 334 Supervisors, final action of, on application for authority to construct. Pol. C. § 2910 334 Tolls, authority to take must be obtained. C. C. § 528 152 rate of, how fixed by supervisors. Pol. C. § 2916 335 Wharfage corporations, charges by. when regulated by leg- islature. Const., art. IV, §33 6 University of California Library Los Angeles This book is DUE on the last date stamped below. i / UC SOUTHERN REGIONAL LIBRARY FACILITY AA 000 340 458 9 UinilUMfHl (ill;! l§l# nnSB