What is the effect when a corporation fails to comply with all the organization requirements? What is the standing of an oral contract for the sale of stocks or bonds? May a corporation like a mine or a railroad company own and operate a store? Are special charters granted by the state legislature? May a corporation owning stock in another corporation, of the same state, vote the stock? Does the state tax the capital stock of the company, or only its assets?

What showing is required to prove non-participation in a monopoly or trust? What things are necessary to procure a receivership?

How are the affairs of a corporation whose charter has expired by lapse of time closed out? Mention some statutory grounds for forfeiture of charter at the suit of the state. What formalities are required of a foreign corporation before it can transact business in your state?

EDWARD D. WHITE

Chief Justice of the United States; appointed Associate Justice of the Supreme Court in 1894, Chief Justice in 1910.

There are three momentous periods in American jurisprudence: first, constitutional construction, second, constitutional reconstruction, and third, public policy versus consolidation and integration of business interests. The first has its Marshall, the second its Chase, and the third its White. Questions of immense importance to humanity are being settled by the Supreme Court at the present time, questions revolutionary in their character in so far as gigantic business enterprises are concerned. The present Chief Justice has this to say of the court over which he presides:

The most powerful court of the world. It is the only one that can nullify an act of the people of the nation, or the peoples' representatives. Ours is the only nation in which the Supreme Court assumes to be a co-ordinate branch of the government. It is the more remarkable that a popular government should be the one in which the most powerful and the one completely irresponsible department of government has no direct connection with the people.

338. Introduction. The subject of insurance as treated in this chapter deales solely with insurance of personal property and buildings. The insurance company offers to the business man protection against certain losses. By securing small sums, called premiums, from many, it assumes the risk of protecting the many, knowing from experience that the losses will fall on but a few, and from careful estimates that the many small sums will exceed the few partial or whole losses, and leave a profit to the insurer. While there are several classes of insurance, the following are the most important: fire, life, and marine.

339. Fire Insurance. This is an undertaking on the part. of the insurance company to indemnify the insured in case of loss or damage by fire.

1. Parties. The parties to an insurance contract are known as insurer and insured. The insurer is generally a company

organized under the insurance laws of the state for the express purpose of conducting the insurance business. The two chief classes of companies are the mutual and the stock companies. A mutual company is composed of property owners who desire insurance, and the premiums are paid in the form of assessments which are levied only to pay losses and to defray ordinary expenses. If there are no losses, the assessments are only nominal just large enough to cover the incidental expenses. A great deal of insurance in this country is carried by mutual companies or associations.

A stock company is an incorporated insurance organization charging a regular fixed rate or premium for the protection afforded, and this rate is intended to meet losses and pay dividends to the stockholders.

2. Subject Matter. Any personal property may be the subject matter of an insurance agreement, but the insured must have an insurable interest. The insured may possess a full title or a partial one; that is, he may be the absolute owner, in part or in whole, or he may be one who holds only a mortgage or other lien on property. The whole interest or the several partial interests may each be a separate subject matter, and one policy may cover the entire property running to each, as his interest may appear, or each may have a separate policy.

It is the general rule in this country that the insurer's interest in the goods must be disclosed; goods held by a trustee, or by a commission merchant, must be insured as such.

3. Consideration. The contract of fire insurance requires a consideration. This is usually a certain per cent. of the value of the property, or of the amount insured, and is called the premium. The premium rate varies with the risk; the greater the probability of loss, the greater is the cost of insurance. A structural steel building used for offices will be insured against loss by fire at a lower rate than a less modern building filled with inflammable material. The rate is established in most of the large cities by a board of underwriters. All companies, therefore, charge the same rate on the same risk. If the risk increases or decreases