The affairs of a corporation are usually closed up by a “receiver,” who collects the bills, disposes of the property, pays the indebtedness as far as he can, and distributes the residue among the stockholders.

COMPARISON OF PARTNERSHIP WITH CORPORATION.

POINTS OF PARTNERSHIP.  CORPORATION. 
COMPARISON.

1.  Status.  A collection of natural A fictitious person.
                  persons.

2.  Formation.  By agreement.  By legislative
          
                                      enactment.

3.  Powers.  Those of natural persons.  Only those conferred
                                                by law.

4.  Debts.  All partners liable for all Stockholders not
                  debts. usually liable.

5.  Transfer of    Dissolves partnership.         New stockholder
interest by sale                                succeeds to shares of
or death.                                       the old.

Pertinent Questions.

Who constitute the managing body in a school district?  In a town?  In a village?  In a city?  In a county?  In the state?  In the United States? [Footnote:  The United States:  “Its charter, the constitution....  Its flag the symbol of its power; its seal, of its authority.”—­Dole.] In a railroad?  In a mining company?  In a bank?  In a church?  In a college?

Write a list of all the corporations that you know or have ever heard of, grouping them under the heads public and private.

How could a pastor collect his salary if the church should refuse to pay it?

Could a bank buy a piece of ground “on speculation?” To build its banking-house on?  Could a county lend money if it had a surplus?  State the general powers of a corporation.  Some of the special powers of a bank.  Of a city.

A portion of a man’s farm is taken for a highway, and he is paid damages; to whom does said land belong?  The road intersects the farm, and crossing the road is a brook containing trout, which have been put there and cared for by the farmer; may a boy sit on the public bridge and catch trout from that brook?  If the road should be abandoned or lifted, to whom would the use of the land go?

CHAPTER XXXV.

COMMERCIAL PAPER.

Kinds and Uses.—­If a man wishes to buy some commodity from another but has not the money to pay for it, he may secure what he wants by giving his written promise to pay at some future time.  This written promise, or note, the seller prefers to an oral promise for several reasons, only two of which need be mentioned here:  first, because it is prima facie evidence of the debt; and, second, because it may be more easily transferred or handed over to some one else.