be filed for record in the office of the secretary of the state, and thereafter said vote shall be a perpetual limitation upon the powers of such corporation.

Sec. 41. Supervision of investment companies; guaranty limited. Every corporation which has power to or does sell or negotiate its own choses in action, or sell, guarantee, or negotiate the choses in action of other persons or corporations as investments, shall be under the supervision of the commissioner on building and loan associations and subject in that particular to all the laws relating to the examination and report of banks, savings banks, and trust companies. Said commissioner, in his annual report, shall clearly describe the various classes of assets and liabilities of each, and state any special provision which has been made for the payment of such liabilities. No corporation doing business as aforesaid shall guarantee, by endorsement or otherwise, debenture bonds secured by loans upon real estate to an amount exceeding ten times the amount of the capital stock paid up in cash and the cash surplus of said corporation.

NOTE.

Chapter 293 of the Public Acts of 1911 prescribes the conditions which must be complied with before the stock of any mining or oil corporation incorporated in this or any other state, may be sold or offered for sale in Connecticut; and § 5 of this chapter

provides that no investment company shall do business in this state until it has been licensed by the Building and Loan Commissioner.

AN ACT CONCERNING THE SALE OF SECURITIES.

Statement to be

filed with commissioner on building and loan associa

tions.

SECTION 1. No shares or certificates of stock in any mining or oil corporation established under the laws of this or any other state, nor any such shares or certificates or other securities of any other such corporation not incorporated under the laws of this state or authorized to do business in this state, shall be sold or offered for sale in this state until such corporation has filed with the commissioner on building and loan associations a statement or certificate showing the financial condition of such corporation, the location of the mine or mines, or oil properties, or other plant or property owned by such corporation, with, in the case of a mining or oil corporation, plans of the same, the amount of work done thereon, the amount of cash expended for improvements thereon, and the condition of the plant and machinery connected therewith, nor until said commissioner has given permission in writing for such sale or offer. Such statement or certificate shall be subscribed and sworn to by the president, treasurer, and secretary of said corporation. The building and loan commissioner shall make such investigation of the affairs of said corporation as may be necessary to ascertain its condition and the value of its said securities, and on becoming satisfied, after such examination, that the sale of such securities should be permitted, may issue to said corporation a permit, in writing, authorizing the sale of the same in this state. For the filing of such statement or certificate and for such examination a fee of twenty-five dollars shall be paid to said commissioner, for the use of the state, whether or not permission is granted thereon as aforesaid. Such permit, if given, shall be valid for one

year from its date unless said commissioner shall, within said time, revoke the same for cause, and such permission may be renewed for a period of one year, in the discretion of the commissioner, upon payment of a fee of twenty-five dollars for each renewal.

Penalty.

SEC. 2. Any person engaged in the business of selling or offering for sale any such shares, certificates of stock, or securities, a permit for the sale of which, as provided for in section one of this act, has not been given and in effect at the time of such sale or offer, shall be fined not more than one hundred dollars for each offense.

SEC. 3. The building and loan commissioner shall report to the attorney-general the names Building and of all persons and corporations who, to Loan Commishis knowledge, are engaged in the sale sioner to report to of securities in violation of the provisions of this act, and the attorneygeneral shall cause prosecutions therefor to be instituted by the proper authorities.

the attorney-gen

eral.

SEC. 4. The foregoing provisions shall not apply to any corporation all of whose mines, Certain corporaplant, or property are situated within tions excepted. this state.

SEC. 5. No investment company as defined by section forty-one of chapter 194 of the public acts of 1903 shall do business in this state until

licensed.

it has been licensed by the commissioner. Investment on building and loan associations in the companies to be manner provided by section 4009 of the general statutes regarding foreign building and loan associations, and violations of this provision shall be subject to the penalties provided by section forty-five of said chapter 194 of the public acts of 1903.

SEC. 6. Chapter 196 of the public acts of 1903 and chapter 232 of the public acts of Repeal. 1911 are hereby repealed.

Sec. 42. Collection of taxes on shares.

When any corporation has power to impose a tax on its stock, it may appoint a collector thereof, who shall receive from its treasurer a rate bill, and a warrant signed by any justice of the peace, directing such collector to collect the sums specified in such rate bill; and on neglect of any stockholder to pay the tax due from him within the time limited by such corporation, the collector may levy such warrant on his shares, or such part thereof as may be necessary to satisfy such tax and costs, and shall proceed therein in the manner provided by law for the collection of executions when levied on the shares of the capital stock of a corporation; and the fees of such collector shall be the same as are allowed to officers on executions.

NOTES.

This section was originally enacted in 1824 and has been in force ever since. Whatever may be its exact meaning, it has never been construed by the courts.

Taxation by the State of Shares in Corporations is provided for by Public Acts of 1905, Chap. 54, as follows:

"Section 2331 of the general statutes as amended by chapter 204 of the public acts of 1903 is hereby amended by striking out in the sixteenth

and pay tax to

line of said section the words 'first day Certain corporaof February' and inserting in lieu tions to report thereof the words 'thirtieth day of state. September next prior thereto,' so that

said section as amended shall read as follows: The secretary, treasurer, or cashier, of every bank,

national banking association, trust, insurance, investment, and bridge company, whose stock is not exempt from taxation, shall, annually, in October, on or before the fifteenth day thereof, file in the office of the tax commissioner of this state a statement under oath, showing the number of shares of its capital stock and the market value thereof on the first day of October, the name and residence of each stockholder, and the number of shares owned by each on said last named date; and, on or before the last day of the following February, each of the corporations aforesaid shall pay to the treasurer of this state a tax of one per centum on the market value of each share of its stock, as such value may be determined under the provisions of section 2332, less the amount of taxes paid by such corporation upon its real estate in Connecticut during the year ending on the thirtieth day of September next prior thereto, all of which real estate shall be assessed and taxed in the town or other taxing district within which it is located."

Taxation of property of corporations whose stock is not liable to taxation, is provided for by Gen. St., Rev. of 1902, as follows:

66

"§ 2328. Property of corporation, how assessed. The whole property in this state of every corporation organized under the law of this state, whose stock is not liable to taxation, and which is not required to pay a direct tax to this state in lieu of other taxes, and whose property is not expressly exempt from taxation, and the whole property in this state of every corporation organized under the law of any other state or country, shall be set in its list and liable to taxation in the same manner as the property of individuals."

Under § 2328 cash on hand or on deposit in this state belonging to a foreign corporation is taxable, and the fact that such corporation is in the hands of ancillary receivers appointed by a court of this