(navigation image)
Home American Libraries | Canadian Libraries | Universal Library | Community Texts | Project Gutenberg | Children's Library | Biodiversity Heritage Library | Additional Collections
Search: Advanced Search
Anonymous User (login or join us)
Upload
See other formats

Full text of "The Revised Laws of the Commonwealth of Massachusetts, enacted November 21, 1901, to take effect January 1, 1902. Vol. 2, Chapters 109-227"

THE 



REVISED LAWS 



OF 



Enacted November 21, 1901, 
To take Effect January 1, 1902. 

WITH THE 

CONSTITUTION OF THE UNITED STATES, THE CONSTITUTION OF THE 

COMMONWEALTH, AND TABLES SHOWING THE DISPOSITION 

OF THE PUBLIC STATUTES AND OF STATUTES 

PASSED SINCE THE ENACTMENT OF 

THE PUBLIC STATUTES. 

Vol. II. 

Chaptees 109-227. 




BOSTON: 
WRIGHT & POTTER PRINTING CO., STATE PRINTERS, 

18 Post Office Square. 
1902. 



946 



POWERS, DUTIES, ETC., OF CORPORATIONS. [CHAP, 109. 



TITLE XV. 



Chapter 109. 
Chapter 110. 
Chapter 111. 
Chapter 112. 
Chapter 113. 
Chapter 114. 
Chapter 115. 
Chapter 116. 
Chapter 117. 
Chapter 118. 
Chapter 119. 
Chapter 120. 
Chapter 121. 
Chapter 122. 
Chapter 123. 

Chapter 124. 
Chapter 125. 
Chapter 126. 



OF CORPORATIONS. 

-Of Certain Powers, Duties and Liabilities of Corporations. 

-Of Manufacturing and other Corporations. 

-Of Railroad Corporations and Railroads. 

-Of Street Railway Companies. 

-Of Savings Banks and Institutions for Savings. 

-Of Co-operative Banks. 

-Of Banks and Banking. 

■Of Trust Companies. 

- Of Mortgage Loan and Investment Companies. 
-Of Insurance. 

-Of Fraternal Beneficiary Corporations. 

-Of Assessment Insurance. 

•Of Gas and Electric Light Companies. 

- Of Companies Engaged in the Transmission of Electricity. 
-Of Proprietors of Wharves, Real Estate lying in Common, 

General Fields, and Aqueduct Corporations. 
-Of Agricultural and Horticultural Societies. 
Of Corporations for Charitable and other Purposes. 
•Of Foreign Corporations. 



CHAPTEE 109. 

OF CERTAIN POWERS, DUTIES AND LIABILITIES OF CORPORATIONS. 

Sections 1-3. — Legislative Powers over Corporations. 

Sections 4-11. — Powers of Corporations. 

Sections 12-17. — Organization . 

Sections 18-31. — Capital Stock and Bonds. 

Sections 32-39. — Lists of Stockholders and Transfer of Shares. 

Section 40. — Unclaimed Dividends. 

Sections 41-51. — Attachment and Sale of Franchise. 

Sections 52-57. — Dissolution of Corporations. 



Provisions of 
this chapter to 
apply to all 
corporations, 
except, etc. 
P. S. 105, § 1. 



LEGISLATIVE POWERS OVER CORPORATIONS. 

Section 1. The provisions of this chapter, unless expressly 1 

limited in their application, shall apply to all corporations created 2 

by or organized under the laws of this commonwealth, except so far 3 

as they are inconsistent with other provisions of these statutes rela- 4 

tive to particular classes of corporations, or with the provisions 5 

of special laws. 6 



Chap. 109.1 powers, duties, etc., of corporations. 947 

1 Section 2. Corporations now existing shall continue to exercise Existing cor- 

2 and enjoy their powers and privileges according to their respective continue 8 

3 charters and to the laws now in force, and shall continue subject to 1I29,' 53?'§| 16, 

4 all the liabilities to which they are now subject, except so far as said r S 38 , §§ i, 36. 

5 powers, privileges and liabilities are modified or controlled by the §§ 4 o°' §1; 

6 provisions of these statutes. p.' s. 165,1-2. 

1 Section 3. Every act of incorporation passed since the eleventh jecft^aitlra-' 

2 day of March in the year eighteen hundred and thirty-one shall be ig3o° 8 i repBaL 

3 subject to amendment, alteration or repeal by the general court. R. s. 38, §36; 

4 All corporations which are organized under general laws shall be g.'s. 68, §41. 

5 subject to such laws as may be hereafter passed affecting or altering 23 p'ick/334. ' ' 

6 their corporate rights or duties or dissolving them. Corporations 9 cuth] m. 

7 shall, notwithstanding such repeal or dissolution, be subject to the i 3 ^ray 2 239 

8 provisions of sections fifty-three and fifty-four. Such laws of l 5 ®™/'^- 

9 amendment, alteration or repeal or such dissolution shall not take 5 Alien,' 230.' 

10 away or impair any remedy which may exist by law consistently 13 Alien! 29.' 

11 with said sections against the corporation, its members or officers, 10I Mass.' 446! 

12 for a liability previously incurred. 109 Mass. 103, 

118 Mass. 290, 561. 123 Mass. 32. 147 Mass. 569. 

POWERS OF CORPORATIONS. 

1 Section 4. Every corporation, except as otherwise expressly General 

2 provided, may, in its corporate name, sue and be sued, appear, i8°o^, e 65 S ,'§i. 

3 prosecute and defend to final judgment and execution ; have a com- \m' t H; § i. 

4 mon seal, which it may alter at pleasure ; elect in such manner as it f^ fi 8 ' § 6; 

5 may determine all necessary officers, fix their compensation and f$ s-^, §2; 

6 define their duties and obligations; and make by-laws and regula- £•' £• i° 5 > § 4 - 

~ " o 10 Mass. 91. 

7 tions for its own government, the due and orderly conducting of its io Gray, 582. 

8 affairs and the management of its property. 

1 Section 5. Every corporation may by its by-laws, except as By -laws. 

2 otherwise expressly provided, determine the manner of calling and 1829; 53! § 1! 

3 conducting its meetings ; the number of members which shall con- r. s. 38, §6; 

4 stitute a quorum ; the number of shares which shall entitle the q] f % Q> § 2; 

5 members to one or more votes; the mode of voting by proxy; p'| 7 105 §5 

6 the mode of selling shares for the payment of assessments ; and 8 M et. 301, 325. 

7 the tenure of office of the several officers ; and may annex suitable 

8 penalties to such by-laws, not exceeding twenty dollars for one 

9 offence ; but no by-law shall be made by a corporation which is 
10 inconsistent with law. 

1 Section 6. Every corporation may convey land to which it has Conveyance of 

2 a legal title. G. S. 68, § 8. P. S. 105, § 6. U Allen, 65. R. s." 44, § 6. 

1 Section 7. A corporation which is organized under general change of 

2 laws or created by special charter for the purpose of carrying on a 1877*67?" 

3 mechanical or manufacturing business in a city or town named in p * s> 105> § 7 * 

4 its agreement of association or charter may extend or remove its 

5 business or any part thereof to any other city or town in this com- 

6 monwealth, and may purchase, hold and convey so much real and 

7 personal estate in such other city or town as may be necessary for 

8 the purpose of carrying on its business therein. 



948 



POWERS, DUTIES, ETC., OF CORPORATIONS. [CHAP. 109. 



Corporate 
name. 
1891, 257. 
149 Mass. 436. 



Section 8. A corporation which is organized under the general 1 

laws may assume any name which, in the judgment of the commis- 2 

sioner, indicates that it is a corporation ; but it shall not assume the 3 

name of another corporation established under the laws of this com- 4 

mon wealth, or of a corporation, firm, association or person carrying 5 

on business in this commonwealth, at the time of such organization 6 

or within three years prior thereto, or assume a name so similar 7 

thereto as to be liable to be mistaken for it, except with the consent 8 

in writing of said existing corporation, firm or association or of 9 

such person previously filed with the commissioner of corporations. 10 

The supreme judicial court or the superior court shall have jurisdic- 11 

tion in equity, upon the application of any person interested or 12 

affected, to enjoin such corporation from doing business under a 13 

name assumed in violation of the provisions of this section, although 14 

its certificate of organization may have been approved and a certifi- 15 

cate of incorporation may have been issued to it. 16 



name geof Section 9. Upon the application of any corporation, authorized 1 

1891, 360, §§ i, by a V ote of two-thirds of the stockholders present and voting at a 2 

i892,i98,2oi. meeting called for the purpose, the commissioner of corporations 3 

1 895 104 ■ 

1898,' 474,' § 9. may, after public notice of such application, authorize such corpora- 4 

1899, 164, 442, ^ Qn ^ Q c ] ian g e j^ s name# if it has no capital stock, the application 5 

i90i, 422, § 9. ma y k e authorized by a two-thirds vote of the persons legally quali- 6 

fied to vote in meetings of the corporation present and voting on 7 

the question of the change of name. The approval of the insurance 8 

commissioner shall be required for applications by corporations 9 

which are subject to the provisions of chapters one hundred and 10 

eighteen, one hundred and nineteen and one hundred and twenty. 11 

ol^belfited Section 10. A certified copy of such authorization and a cer- 1 

vm Ho 01 ?? 3 r 6' tificate of the vote of the corporation, signed and sworn to by the 2 

' president, treasurer and a majority of the directors, or if it has no 3 

such officers, by its presiding and financial officers and a majority 4 

of its other officers having the powers of directors, shall be filed in 5 

the office of the secretary of the commonwealth. The commissioner 6 

shall require public notice to be given of the change so authorized ; 7 

and upon receipt of proof thereof the secretary of the commonwealth 8 

may grant a certificate of the name which the corporation shall bear, 9 

which, subject to the provisions of section eight, shall thereafter be 10 

its legal name. 11 



Rights and 
liabilities 
under new 
name. 
1891, 360, § 4. 



Section 11. A corporation shall have the same rights, powers 1 

and privileges and be subject to the same duties, obligations and 2 

liabilities under its new name as before its name was changed, and 3 

may sue and be sued by its new name ; but any action brought 4 

against it by its former name shall not be defeated on that account, 5 

and, on motion of either party, the new name may be substituted 6 

therefor. 7 



ORGANIZATION. 



Limit of time 
for organiza- 
tion. 

1856, 264, § 1. 
G. S. 68, § 2. 
P. S. 105, § 8. 
1898, 336. 



Section 12. A corporation which is created by special charter 1 

shall, if no time is limited therein, be organized within two years after 2 

the passage of its act of incorporation. Within thirty days after 3 

the final adjournment of the meeting for organization of any such 4 



Chap. 109.] powers, duties, etc., of corporations. 949 

5 corporation, the recording officer thereof shall make, sign, swear to 

6 and file in the office of the secretary of the commonwealth a certifi- 

7 cate stating the date on which the meeting for organization was held, 

8 the names of the officers elected at such meeting and the amount 

9 of capital stock, if any, fixed under its charter. 

1 Section 13. The first meeting of such corporation, unless other- First meeting 

2 wise provided in its act of incorporation, shall be called by a notice, corporations. 

3 signed by the person or by a majority of the persons named in" Jl^; f| f f; 

4 such act, setting forth the time, place and purposes of the meeting, r 3 ! fHf 

5 and delivered seven days at least before the meeting to each member g 5 | ug- 

6 or published in a newspaper of the county in which the corporation p.' s.' 105, §9. 

7 is established, if any; otherwise in a newspaper of an adjoining 3 Met. 282. ' 

8 county. The persons so named and their associate subscribers to 12 AUen, 362. 

9 stock before the date of the act shall hold the franchise or privileges ioojass. 9 385. 

10 granted until the corporation is organized. The notice of the first {^ Mass' 482! 

11 meeting of an incorporated religious society may be affixed to the 

12 door or to some other conspicuous part of its meeting house. 

1 Section 14. The first meeting of a corporation organized under —of corpora- 

2 general laws which make no provision for the calling thereof may be ized under 

3 called in the manner set forth in the agreement of association, or, & en s er 68, §T. S * 

4 if it makes no provision, by a notice signed by a majority of the p - s - 105 >§ 10 - 

5 associates and published as prescribed in the preceding section. 

1 Section 15. If, by reason of the death or absence of the officers Meeting called 

2 of a corporation, or other cause, there is no person duly authorized tiie'peace, 

3 to call or preside at a legal meeting, a justice of the peace may, upon ^j^V 

4 written application of three or more of the members, issue a warrant ]|- 1 1|> 1 1- 

5 to any one of them, directing him to call a meeting by giving such p - s - 10 ^- § "• 

6 notice as had been previously required by law, and may in the same 

7 warrant direct him to preside at the meeting until a clerk is duly 

8 chosen and qualified if no officer is present legally authorized to 

9 preside. 



1 Section 16. A corporation when so assembled may elect officers Election of 

2 to fill vacancies, and may act upon such other business as may by i833, e 49.' 

3 law be transacted at a regular meeting. p. s. 105, § 12. §; f ; ^; | jj; 



1 Section 17. An executor, administrator, guardian, conservator Executors, 

2 or trustee shall represent the shares of his trust at all meetings of i829,53^i2. te " 

3 the corporation, and may vote as a stockholder. i838,'98,'§ !. 5- 

G. S. 68, § 11. P. S. 105, § 13. 9 Cush. 192. 101 Mass. 398. 



CAPITAL STOCK AND BONDS. 



1 Section 18. The par value of shares in the capital stock of a Par value of 



shares. 



1. 



2 corporation, if organized for any of the purposes mentioned in sec- i860, 128, § 

3 tions five, six, eleven and thirteen of chapter one hundred and ten, ifroj 224J § 7. 

4 may be such amount, not less than twenty-five nor more than one J|i|' f 6 - 

5 hundred dollars, as maybe fixed in its agreement of association, foXof' §16; 

6 and if organized for any of the purposes mentioned in sections 1894, 500. 

1898 503 6 2 

7 seven and eight of said chapter, may be one hundred dollars or any 

8 other amount fixed in its agreement of association. Such corpora- 



950 



POWERS, DUTIES, ETC., OF CORPORATIONS. [CHAP. 109. 



tion may, at a meeting of stockholders called for the purpose, 9 

change the par value of its shares if a certificate of such change 10 

shall, within ten days thereafter, be made, signed and sworn to by 11 

its president, treasurer and a majority of its directors, or other 12 

officers having the powers of directors, and, having been approved 13 

as to its form by the commissioner of corporations, be filed in the 14 

office of the secretary of the commonwealth. The par value of the 15 

shares of the capital stock of all other corporations, unless other- 16 

wise expressly provided by law, shall be one hundred dollars, and 17 

any corporation which may be organized with shares of a par value 18 

other than one hundred dollars may, in like manner, change the par 19 

value to that amount. 20 



Shares not to 
be issued for 
less than par. 
J851, 133, § 16. 
1858, 167. 



Section 19. No corporation, unless specially authorized, shall 1 
issue a share for a less amount to be actually paid in thereon than 2 
the par value of the shares at the date of issue. 3 



1859, 104. 
G. S. 68, § 9. 



1871, 392, § 3. 
1873, 39, § 1. 



P. S. 105, § 17; 106, § 41. 
157 Mass. 71. 



Stock or scrip 
dividends for- 
bidden, when. 
1868, 310, § 1. 
1871, 389. 
1874, 372, § 177. 
P. S. 105, §18; 
112, § 61. 
1894, 350, § 1. 



Section 20. No telegraph, telephone, gas light, electric light, 1 

steam railroad, street railway, aqueduct or water company estab- 2 

lished under the laws of this commonwealth shall declare any stock 3 

or scrip dividend or divide the proceeds of the sale of stock or scrip 4 

among its stockholders ; nor shall any such company issue any share 5 

of stock to any person unless the par value Of the shares so issued 6 

is first paid in cash to its treasurer ; and no railroad corporation 7 

shall without authority of the general court increase its capital stock 8 

beyond the maximum amount fixed by its act of incorporation or 9 

fixed under the provisions of section sixty-one of chapter one hun- 10 

dred and eleven. 11 



Liability of 
directors. 
1868, 310, § 2. 
P. S. 105, § 19; 
112, § 61. 
1894, 350, § 2. 



Section 21. All certificates of stock or scrip which are issued 1 

in violation of the provisions of the preceding section shall be void ; 2 

and the directors of the corporation which issues them shall be 3 

liable to a penalty of one thousand dollars each, to be recovered 4 

by indictment in any county in which any of them reside ; but if 5 

any such director proves that, before such issue, he filed his dissent 6 

in writing thereto with the clerk, or was absent and at no time 7 

voted therefor, he shall not be so liable. 8 



Certificate of 
payment of 
capital stock. 
1894, 380, § 1. 



Section 22. Immediately after the payment of the capital of an 1 

aqueduct or water company, as authorized by the commissioner of 2 

corporations, a certificate, signed and sworn to by its president, 3 

treasurer and a majority of its directors, stating the fact of such 4 

payment, the manner in which the capital has been paid in and has 5 

been invested or voted to be invested, and approved by the com- 6 

missioner of corporations, shall be filed in the office of the secretary 7 

of the commonwealth. 8 



ca^itaPb °con Section 23. A conveyance to a corporation described in the 

veyanceof preceding; section of real or personal property at a fair valuation 

1894, 380, § 2. shall be a sufficient payment of the capital stock to the extent of 

such value, if a description of such property and a statement of 

the value at which it has been taken in payment, in such detail as 



1 

2 
3 
4 
5 



Chap. 109.] powers, duties, etc., of corporations. 951 

6 the commissioner of corporations shall require or approve, is included 

7 in the certificate mentioned in the preceding section, and a state- 

8 ment that he is satisfied that such valuation is fair and reasonable 

9 is indorsed by him upon such certificate. 

1 Section 24. Eailroad corporations and street railway companies issue of capital 

2 shall issue only such amounts of stock and bonds, coupon notes and i875, i6i. 

3 other evidences of indebtedness payable at periods of more than lsk.'^'fi- 

4 twelve months after the date thereof, and gas and electric light com- imfwitfi? L 

5 panies, corporations established for and engaged in the business of ^f' A ' Q ' 

6 transmitting intelligence by electricity, aqueduct and water com- 

7 panies, shall issue only such amount of stock and bonds, as the 

8 board of railroad commissioners in the case of railroad corporations 

9 or street railway companies, the board of gas and electric light 

10 commissioners in the case of gas or electric light companies, may 

11 from time to time vote, or the commissioner of corporations in the 

12 case of the other corporations hereinbefore specified may from time to 

13 time determine, is reasonably necessary for the purpose for which 

14 such issue of stock or bonds has been authorized. Said boards or 

15 commissioner shall render a decision upon an application for such 

16 issue within thirty days after the final hearing thereon. Such de- 

17 cision shall be in writing, shall assign the reasons therefor, shall, if 

18 authorizing such issue, specify the respective amounts of stock or 

19 bonds, or of coupon notes or other evidences of indebtedness as 

20 aforesaid, which are authorized to be issued for the respective pur- 

21 poses to which the proceeds thereof are to be applied, shall, within 

22 seven days after it has been rendered, be filed in the office of the 

23 board or commissioner rendering it and a certificate of the vote of 

24 the board or of the decision of the commissioner shall, within three 

25 days after such decision has been rendered and before the stock or 

26 bonds or coupon notes or other evidences of indebtedness as afore- 

27 said are issued, be filed in the office of the secretary of the common- 

28 wealth, and a duplicate thereof delivered to the corporation which 

29 shall enter the same upon its records. A company which is within 

30 the provisions of this section shall not apply the proceeds of such 

31 stock or bonds or coupon notes or other evidences of indebtedness 

32 as aforesaid to any purpose not specified in such certificate. The 

33 provisions of this section shall not require the approval of the board 

34 of railroad commissioners to the issue by any railroad corporation 

35 of capital stock or bonds, or of coupon notes or other evidences of 

36 indebtedness as aforesaid, duly authorized by law of this common- 

37 wealth, the proceeds of which are to be expended in another state 

38 or country or which are to pay for borrowed money expended in 

39 another state or country. 

1 Section 25. A railroad corporation or street railway company, Limit of issue 

2 unless expressly authorized by its charter or by special law, shall not bonds™tc. 

3 issue bonds, coupon notes or other evidences of indebtedness pay- ill?; Ilf) | i; 

4 able at periods of more than twelve months after the date thereof 

5 to an amount which, including the amount of all such securities 

6 previously issued and outstanding, exceeds in the whole the amount 

7 of its capital stock at the time actually paid in ; but this limitation 

8 shall not apply to the issue of bonds for the purpose of paying and 

9 refunding at maturity bonds lawfully issued prior to the second 



952 POWERS, DUTIES, ETC., OF CORPORATIONS. [ClIAP. 109. 

day of June in the year eighteen hundred and ninety-seven ; and 10 

such corporation shall not issue the securities mentioned in this 11 

section unless authorized by a vote of its stockholders at a meet- 12 

ing called for the purpose. 13 

ofga^compa- Section 26. If, when the board of gas and electric light com- 1 

mes to be made missioners approves an issue of new stock or bonds by a gas or 2 

1896, 473. electric light company, it determines that the fair structural value 3 

of the plant of such company is less than its outstanding stock and 4 

debt, it may prescribe such conditions and requirements as it deter- 5 

mines are best adapted to make good within a reasonable time the 6 

impairment of the capital stock; or, before allowing an increase, it 7 

may require the capital stock to be reduced by a prescribed amount 8 

not exceeding the amount of such impairment. The amount of im- 9 

pairment and the conditions and requirements imposed shall be 10 

stated in the annual report of the board. 11 

Enforcement Section 27. The supreme iudicial court or the superior court 1 

of statutes. ..,.. . r . J 1 . r „ 

1894,450, §3; shall have mrisdiction in equitv, upon the application of the board 2 

452 § 3 ■ 462 §3 . .. ,1 •/ > ■ ■ i. £ r 

1896,473. ' of railroad commissioners, the board of gas and electric light com- 3 

missioners, the commissioner of corporations, respectively, of the 4 

attorne}^ general, of any stockholder or of any interested party, to 5 

enforce the provisions of the three preceding sections and all lawful 6 

orders and decisions, conditions or requirements of said boards or 7 

commissioner made in pursuance thereof. 8 

1894*450 8 § 2- Section 28. A director, treasurer or other officer or agent of 1 

452, § 2; 462, § 2. anv corporation named in section twenty-four who knowingly votes 2 

to authorize the issue of, or knowingly signs, certifies or issues, 3 

stock or bonds contrary to the provisions of the four preceding sec- 4 

tions, or who knowingly votes to authorize the application, or know- 5 

ingly applies the proceeds, of such stock or bonds contrary to the 6 

provisions of said sections, or who knowingly votes to assume or 7 

incur, or knowingly assumes or incurs in the name or behalf of such 8 

corporation, any debt or liability except for the legitimate purposes 9 

of the corporation shall be punished by a fine of not more than one 10 

thousand dollars or by imprisonment for not more than one year, 11 

or by both such fine or imprisonment. 12 

Notice tp Section 29. If a corporation, except a corporation described in 1 

of increase of the following section, increases its capital stock and no other provi- 2 

1870, 179. sion therefor is made by law, its directors shall forthwith give notice 3 

§ 8 4. * 109 ' 392 ' in writing thereof to each stockholder who was such at the date of 4 

wsMass'.yi 3 .' the vote to increase, stating the amount of the increase, the number 5 

of shares or fractions of shares of the new stock which such stock- 6 

holder is entitled to take, and the time, not less than thirty days 7 

after the date of such vote, within which such new stock shall be 8 

taken ; and, within said time, each stockholder may take at par his 9 

proportion of such new shares, according to the number of his shares 10 

at the date of such vote to increase. If, at the expiration of said 11 

time, any shares remain untaken, the directors shall sell them by 12 

public auction for the benefit of the corporation at not less than 13 

the par value thereof. 14 



Chap. 109.] powers, duties, etc., or corporations. 953 

1 Section 30. If a corporation which owns op operates a railroad beTffereduV 

2 or street railway, a gas light, electric light, aqueduct or water com- stockholders 

J . to i • 1 • t i n i • i • upon increase 

3 pany, or a corporation which is established tor and is engaged in the of capital 

4 business of transmitting intelligence by electricity, increases its mo, iva 

5 capital stock, such new shares as are necessary to produce the i878iS9,§i;" 

6 amount of increased capital stock which has been authorized shall, fgfs, 84, § l. 

7 except as provided in the following section, be offered proportion- p 7 |' io^s 1 ^- 

8 ately to its stockholders at not less than the market value thereof ii^§58;'ii3, ' 

9 at the time of increase, to be determined by the board of railroad 1893, 315, §i. 

1894 47*^ SI 

10 commissioners in the case of a railroad corporation or street 

11 railway company, by the board of gas and electric light comniis- 

12 sioners in the case of a gas light or electric light company, and by 

13 the commissioner of corporations in the case of an aqueduct or water 

14 company or of a corporation which is established for and is engaged 

15 in the business of transmitting intelligence by electricity, taking 

16 into account previous sales of stock of the corporation and other 

17 pertinent conditions, which determination shall be in writing and 

18 with the date thereof shall be certified to and recorded in the books of 

19 the corporation. The directors, upon the approval of such increase 

20 as provided in section twenty-four and the determination of the 

21 market value as hereinbefore provided, shall cause written notice of 

22 such increase to be given to each stockholder who was such at the date 

23 of the vote to increase, stating the amount of such increase, the 

24 number of shares or fractions of shares to which he, according to the 

25 proportionate number of his shares at the date of such vote, is en- 
2(3 titled, the price at which he is entitled to take them, and fixing a time, 

27 not less than fifteen days after the date of such determination, within 

28 which he may subscribe for such additional stock. Each stockholder 

29 may, within the time limited, subscribe for his portion of such stock, 

30 which shall be paid for in cash before the issue of a certificate therefor. 

1 Section 31. If the increase in the capital stock which is sub- foidatauction 

2 ject to the provisions of the preceding section does not exceed four Ym^rd 

3 per cent of the existing capital stock of the corporation, the directors, isn! 392, § 2. 

4 without first offering the same to the stockholders, may, and if, after 305;'333. 

5 the expiration of the time limited in the notice required by the pre- ms, 84, '§ 2. 6 ' 

6 ceding section, any shares remain unsubscribed for by the stock- p.'s.io6, §40; 

7 holders entitled to take them, the directors shall sell them by auction "f^ 859 ' U3 ' 

8 to the highest bidder at not less than the par value thereof to be J|^> |i|> |. 2 j 2 

9 actually paid in cash. Such shares shall be offered for sale in the 

10 city of Boston or in such other city or town as may be prescribed 

11 by such commissioners; and notice of the time and place of such 

12 sale shall be published at least five times during the ten days im- 

13 mediately preceding the sale in each of at least three of such daily 

14 newspapers as may be prescribed by such commissioners. No shares 

15 shall be sold or issued under this or the preceding section for a less 

16 amount to be actually paid in cash than the par value thereof. 



LISTS OF STOCKHOLDERS AND TRANSFER OF SHARES. 

1 Section 32. The treasurer or cashier of every corporation shall holders o°en 

2 keep an accurate list of its stockholders and of the number of shares *° inspection. 

3 owned by each, which shall at all times, upon written application by o. s. 68,"§io. 

"PS 10^ S 21 

4 a stockholder, be exhibited for his inspection. Such officer who 



954 



POWERS, DUTIES, ETC., OF CORPORATIONS. [CHAP. 109. 



refuses so to exhibit such list shall forfeit fifty dollars for each 5 
offence. 6 



Record of 
Barnes and 
residences of 
stockholders. 
1859, 227. 
G. S. 68, § 20. 
1861, 120. 
1864, 201, § 1. 
P. S. 105, § 22. 



Section 33. Every corporation shall record the names and 1 

residences of all its stockholders, and all changes therein of which 2 

it is notified, shall issue no certificate of stock to a stockholder or 3 

purchaser of a share until he informs the corporation of his actual 4 

residence and shall pay no dividend to a stockholder whose actual 5 

residence is unknown or uncertain until he informs the corporation 6 

thereof. 7 ' 



List of stock- 
holders to be 
filed with sec- 
retary. 
1889, 222, § 3. 
[1 Op. A. G. 
278.] 



Records of 
transfers. 
1847, 107. 
G. S. 68, § 12. 
P. S. 105, § 23. 



Section 34. Every corporation shall, within fifteen days after 1 

a request in writing by a stockholder thereof, made not less than 2 

thirty nor more than sixty days prior to the time fixed for the annual 3 

meeting of stockholders, cause a complete list of the stockholders as 4 

of the sixtieth day prior to the time so fixed, with the residence of 5 

and the number of shares belonging to each stockholder, to be made 6 

and filed in the office of the secretary of the commonwealth. The 7 

list shall be in such form as the commissioner of corporations shall 8 

require or approve, and shall be signed and sworn to by the treas- 9 

urer of the corporation or by some other officer cognizant of the 10 

facts specially appointed by the corporation to make the same. If 11 

a corporation and its treasurer or other officer so specially appointed 12 

omit or neglect to cause a list of stockholders to be so made and 13 

filed, they shall each forfeit not more than one thousand dollars to 14 

be recovered in the manner provided in section eighty-four of 15 

chapter one hundred and ten. 16 

Section 35. All records of transfers of stock in any corporation 1 

which is created by the sole authority of this commonwealth shall be 2 

made and kept therein. The officer of every such corporation whose 3 

duty it is to record such transfers shall be a resident of this com- 4 

monwealth at the time of his appointment ; and if he ceases to be 5 

such resident, his office shall become vacant. 6 



Transfer of 

stock. 

1851, 133, § 9. 

1855, 68, § 3. 

1881, 302. 

P. S. 105, § 24. 

12 Gray, 213. 

129 Mass. 435. 

138 Mass. 240, 

244. 

116 U. S. 8. 



Section 36. The sale, assignment or transfer of stock in a cor- 1 

poration shall not, except as provided in the following section, affect 2 

the right of the corporation to pay any dividend due thereon or 3 

affect the title or rights of an attaching; creditor until it has been 4 

recorded upon the books of the corporation or until a new certifi- 5 

cate has been issued to the person to whom it has been transferred ; 6 

but no attachment of such stock as the property of the vendor 7 

which is made after such sale, assignment or transfer shall defeat 8 

the title or affect the rights of the vendee, if such record is made 9 

or a new certificate is issued within ten days after such transfer is 10 

made. 11 



Same subject. 

1884, 229. 

138 Mass. 240, 

244. 

159 Mass. 64. 



Section 37. The delivery of a certificate of stock of a corpora- 1 

tion to a bona fide purchaser or pledgee, for value, with a written 2 

transfer thereof, or with a written power of attorney to sell, assign 3 

or transfer the same, signed by the person named as the shareholder 4 

in such certificate, shall be a sufficient delivery to transfer the title 5 

as against all persons ; but no such transfer shall affect the right of 6 

the corporation to pay any dividend due upon the stock or to treat 7 



Chap. 109.] powers, duties, etc., of corporations. 955 

8 the holder of record as the holder in fact until it has been recorded 

9 upon the books of the corporation, or until a new certificate has been 
10 issued to the person to whom it has been so transferred. 

1 Section 38. If, in transfers of stock as collateral security, the Transfer of 

2 debt or duty which is intended to be secured thereby is substantially rfty. as secu ~ 

3 described in the deed or instrument of transfer, and if the certificate G. 3 l. 9 68, § § 3 i3. 

4 issued to the pledgee or holder expresses on its face that it is so held f x - c U sn 5 'i!f 5 " 

5 and the name of the pledgor is stated therein, the pledgor alone }•> Gray, 216. 

Till 10 Allen, 505. 

6 shall be liable as a stockholder. 176 Mass. 442. 127 Mass. 563. 

1 Section 39. The treasurer, cashier or other officer who has the Record of 

2 lawful custody of the records of transfers of shares, upon the written exhibitedto 6 

3 request of a creditor of the general owner of stock pledged or trans- request? 3 upon 

4 ferred, shall exhibit to him the record of such transfer; and in case g. 3 | 68 §u 

5 of refusal, and of loss to the creditor by reason thereof, the corpora- ^cu'sn^iol 2 ^" 

6 tion shall be liable for the amount of the loss. 



UNCLAIMED DIVIDENDS. 

1 Section 40. Each corporation in this commonwealth shall, ^aime'ddiVi- 

2 once in every five years, publish three times successively in a de ^^^ 

3 newspaper in the city of Boston, and also in a newspaper, if any, 1837, 56. 

4 in the county in which the corporation is established, a list of all p.' s." 105, § 27. 

5 dividends which have remained unclaimed for two years or more 

6 and the names of the persons to whose credit such dividends stand. 



ATTACHMENT AND SALE OF FRANCHISE. 

1 Section 41. If, by an order of county commissioners or by the warrants of 

2 verdict of a jury, damages have been assessed for an injury to againstcor- 

3 property by the doings of any corporation which is authorized to images 8 f ° r 

4 receive toll, except a railroad corporation, and the damages remain jjp|' ^'Aq 

5 unpaid for thirty days after the order or verdict, the owner thereof ^, 259, § 5. 

6 may have a warrant of distress against the corporation for such p. s.' 105, § 29. 

7 damages, with interest thereon and costs. 

1 Section 42. The franchise of a corporation which is authorized ^.anchiseon° f 

2 to receive toll, and all the rights and privileges thereof, shall be v-io n ra r s % e&& ' 

3 liable to attachment on mesne process. g. s. 68, §25. r. s'. m,'§ 11. 

P. S. 105, § 30. 5 Cush. 509. 11 Allen, 71. 171 Mass. 61. 

1 Section 43. If a judgment is recovered against a corporation saieof, on 

2 which is authorized to receive toll, its franchise and all the rights isio^iIT^'l* 5 ' 

3 and privileges thereof, so far as relate to the receiving of toll, and R 2 s.44*'§ § i2. 

4 all other corporate property, real and personal, may be taken on p"f'io|A 2 fi 

5 execution or warrant of distress and sold by public auction. ?„9 l iS h -^ 09 ^ 

J * 170 Mass. 203. 

1 Section 44. The officer who has' such execution or warrant of Mode of sale. 

2 distress shall, thirty days at least before the sale of any franchise or 18-24! 121! § 1! 

3 other corporate personal property, give notice of the time and place g*. s*. es' § 27'. 

4 of sale by posting a notice thereof in the city or town in which the P ' s * 105 ' § 32 ' 

5 corporation is established or has its principal place of business, and 

6 by causing an advertisement of the sale, stating the name of the 



y 



956 



POWERS, DUTIES, ETC., OF CORPORATIONS. [CHAP. 109. 



creditor, the amount of the execution or warrant of distress, and 7 

the time and place of sale, to be inserted three weeks successively 8 

in a newspaper, if any, published in said city or town ; otherwise 9 

in a newspaper published in the county in which such city or town 10 

is situated ; the last publication to be at least four days before the 11 

sale. 12 



Section 45. 



The officer who levies such execution or warrant 1 

2 
3 



Adjournment. 
1810, 131, § 5. 

g I' 68'! 28* °^ Stress may adjourn the sale for not more than seven days, and 
p. s. ioo, § 33. so from time to time until the sale is completed. 



Highest bid- 
der, how deter- 
mined. 
1810, 131, § 2. 
R. S. 44, § 15. 
G. S. 68, § 29. 
P. S. 105, § 34. 



Section 46. In the sale of such franchise, the person who satis- 1 

fies the execution or warrant of distress with all legal fees and ex- 2 

penses thereon and who agrees to take such franchise for the 3 

shortest period of time and to receive during that time all such toll 4 

as the corporation would by law be entitled to demand shall be con- 5 

sidered the highest bidder. 6 



Officer's return 
to transfer the 
right of toll, 

1810, 131, § 2. 
R. S. 44, § 16. 
G. S. 68, § 30. 
P. S. 105, § 35. 



Section 47. The officer's return on the execution or warrant of 1 

distress shall transfer to the purchaser all the privileges and immu- 2 

nities of the corporation, so far as relate to the right of demanding 3 

toll ; and the officer shall, immediately after the sale, deliver to the 4 

purchaser an attested copy of the execution or warrant and the 5 

return thereon, \ which shall entitle said purchaser or his assigns to 6 

demand and receive to his own use all the toll which accrues within 7 

the time limited by the term of his purchase, in the same manner 8 

and under the same regulations as the corporation was before author- 9 

ized to demand and receive the same. 10 



Remedy of 
purchaser for 
damages. 
1826, 116. 
R. S. 44, § 17. 
G. S. 68, § 31. 
P. S. 105, § 36. 



Section 48. A purchaser of the franchise of a corporation under 1 

a sale upon execution or warrant of distress, or his assigns, may 2 

recover in an action of tort any penalties imposed by law for an 3 

injury to the franchise or for other cause which such corporation 4 

would have been entitled to recover during the time limited in the 5 

purchase of the franchise ; and during that time, the corporation 6 

shall not be entitled to prosecute for such penalties. 7 



continue 68 t0 Section 49. The corporation whose franchise has been so sold 1 

1810, lsi, § 2. shall in all other respects retain its powers, be bound to the perform- 2 

g - . s". 68, § zi ance of its duties and be liable to the same penalties and forfeitures 3 

' '" as before the sale. 4 



Redemption of 
franchise. 
1810, 131, § 2. 
R. S. 44, § 19. 
G. S. 68, § 33. 
P. S. 105, § 38. 



Section 50. The corporation may, at any time within three 1 

months after the time of sale, redeem the franchise by paying or 2 

tendering to the purchaser or his assigns the amount which he paid, 3 

with twelve per cent interest thereon, but without any allowance 4 

for the toll which he has received ; and upon such payment or tender, 5 

the franchise and all the rights and privileges thereof shall revert and 6 

belong to the corporation as if no such sale had been made. 7 



Xlidi l ng s f pr °" Section 51. All proceedings under the provisions of the ten 1 
i 81 2.' W'o § £ preceding sections shall be in the county in which the creditor 2 
g'. §'. 68', § si. resides or the corporation is established or has its principal place 3 



P. S. 105, § 39. 



of business. 



Chap. 109.] powers, duties, etc., of corporations. 957 

dissolution of corporations. 

1 Section 52. If a majority in number or interest of the members Dissolution of 

2 of a corporation desire to close its affairs, they may file a petition i|o^ 55?§§ i, S 3. 

3 therefor in the supreme judicial court or the superior court, setting £' f; io5, § § 8 4o. 

4 forth in substance the grounds of their application, and the court, 9 Gray' m!' 393, 

5 after notice to parties interested and a hearing, may decree a disso- limits' 2$' 

6 lution of the corporation. A corporation so dissolved shall be held 119 Mass. 447. 

7 to be extinct in all respects as if its corporate existence had expired 

8 by its own limitation. 

1 Section 53. Every corporation whose charter expires by its own continuation 

2 limitation or is annulled by forfeiture or otherwise, or whose corpo- to^iose^n-'"" 8 

3 rate existence for other purposes is terminated in any other manner, m^is. 

4 shall nevertheless be continued as a body corporate for three years §; |; *|> | ^ 

5 after the time when it would have been so dissolved, for the purpose £•£. 105, §41. 

. . ■ i /» 1 i« 16 Mass. 245. 

6 of prosecuting and defending suits by or against it and of enabling 22 Pick. iso. 

^ ^ . ~ . ^23 Pick 345 

7 it gradually to settle and close its affairs, to dispose of and con- 123 Mass. 32. 

8 vey its property and to divide its capital stock, but not for the pur- 6 ass ' 443 ' 

9 pose of continuing the business for which it was established. 

1 Section 54. If the charter of a corporation expires or is annulled, t^ 6 ^ 8, 

2 or if the corporation is dissolved as provided in section fifty-two, or ]| 5 f-|^f| 8 ' 9 " 

3 if its corporate existence for other purposes is terminated in any g. s. 68, §§ '37, 

4 other manner, the supreme judicial court or the superior court, upon p.'s. 105, §§ 42, 

5 application of a creditor, stockholder or member, shall have jurisdic- 1884,203. 

6 tion in equity to appoint one or more receivers to take charge of its 157 Mass ' 8L 

7 estate and effects and to collect the debts and property due and 

8 belonging to it ; with power to prosecute and defend suits in its 

9 name or otherwise, to appoint agents under them and to do all 

10 other acts which might be done by such corporation, if in being, 

11 which may be necessary for the final settlement of its unfinished 

12 business. The powers of such receivers may be continued as long 

13 as the court finds necessary for said purposes. 

1 Section 55. The receivers shall pay all debts due from the cor — to pay debts 

2 poration if the funds in their hands are sufficient therefor ; and if surplus. 

3 they are not, they shall distribute them ratably among the creditors r 8 !. 1 ^ 10. 

4 who prove their debts in the manner directed by any decree of g. 5 |. 5 68, § §39. 

5 the court for that purpose. If there is a balance remaining after f G r" ay 05 3 8 | 44 " 

6 the payment of the debts, the receivers shall distribute and pay it to 

7 those who are justly entitled thereto as having been stockholders 

8 or members of the corporation, or their legal representatives. 

1 Section 56. If a petition, signed and sworn to by a majority in surrender of 

2 number or interest of the members of a corporation organized under incorporation. 

3 the general laws, except a corporation created for the purpose of 1898 > 502 - 

4 business or profit having a capital stock divided into shares or which 

5 is under the supervision of the insurance commissioner, has, with the 

6 certificate of incorporation, been filed in the office of the secretary 

7 of the commonwealth stating that such members desire to surrender 

8 the certificate of incorporation and to have the corporation dissolved 

9 and giving their reasons therefor, the secretary, if he considers such 
10 reasons sufficient, shall require the petitioners to publish a notice 



958 



MANUFACTURING AND OTHER CORPORATIONS. [CHAP. 110. 



Returns to 
secretary of 
dissolution. 
1880, 157. 
P. S. 105, § 45. 



in one or more newspapers in the county in which the corporation 11 

is located that, for reasons which appear to him to be sufficient, the 12 

certificate of incorporation of the corporation therein named is an- 13 

nulled. Upon the filing by the petitioner with the secretary of a 14 

copy of each newspaper in which the notice of dissolution was 15 

ordered to be published, the corporation shall be dissolved, subject 16 

to the provisions of the three preceding sections. . 17 

Section 57. If a corporation is dissolved, the clerk of the court 1 

in which the decree for dissolution is entered shall forthwith make 2 

return thereof to the secretary of the commonwealth, giving the name 3 

of the corporation dissolved and the date upon which such decree 4 

was entered. 5 



CHAPTBE 110. 

of manufacturing and other corporations. 

Section 1. — Commissioner of Corporations. 

Sections 2, 3. — Corporations Governed by this Chapter. 

Sections 4-21. — Formation of Corporations. 

Sections 22-68. — Powers and Liabilities. 

Sections 69, 70. — Co-operative Associations. 

Section 71. — Fishing Associations . 

Sections 72-75. — Swine Slaughtering Associations. 

Sections 76-81. — Gas, Pneumatic, etc., Companies. 

Sections 82, 83. — Confirmation of Organization or Proceedings. 

Sections 84,85. — Penalties for Omissions to File Certificates, etc. 

Section 86. — Fees. 



Commissioner 
of corpora- 
tions. 

1870, 224, § 61. 
1879, 288, § 1. 
P. S. 106, § 1. 
1900, 261. 



COMMISSIONER OF CORPORATIONS. 

Section 1. The commissioner of corporations shall be sworn to 1 

the faithful performance of his duties. He shall examine the certifi- 2 

cates submitted to him under the provisions of these statutes, and 3 

make suitable indorsements upon such as conform to the require- 4 

ments of law. He shall keep a record of the names of corporations 5 

which submit certificates to his inspection, with the date of inspec- 6 

tion and of his certificates when given, and the result in brief of 7 

his inspection. He shall bring instances of neglect or of omission 8 

on the part of corporations to comply with the provisions of this 9 

chapter to the knowledge of the attorney general, for the enforce- 10 

ment of the penalties therefor. He shall receive no fees for the 11 

performance of his duties. If a vacancy exists or if the commis- 12 

sioner is absent from his office, the first clerk shall perform the 13 

duties of the commissioner, and legal process served upon said clerk 14 

shall have the same force and effect as if served upon the commis- 15 

sioner. 16 



Corporations 
governed by 
this chapter. 
R. S. 38, § 1. 
G. S. 60, § 1. 
1870, 224, §§ 13, 
64,65. 



CORPORATIONS GOVERNED BY THIS CHAPTER. 

Section 2. All corporations organized or chartered under or 1 

subject to the provisions of this chapter, of chapter one hundred and 2 

six or one hundred and seven of the Public Statutes, of the statutes 3 

in amendment thereof or in addition thereto, of chapter two hundred 4 



Chap. 110.] manufacturing and other corporations. 959 

5 and ninety-five of the statutes of the year eighteen hundred and p 7 !' ^' 1 3 \ 

6 seventy-four, of chapter two hundred and twenty-four of the statutes 10 7, § 1. ' 

7 of the year eighteen hundred and seventy, of the statutes in amend- 

8 ment thereof or in addition thereto, of chapter one hundred and 

9 eighty-seven or two hundred and ninety of the statutes of the year 

10 eighteen hundred and sixty-six, of chapter sixty or sixty-one of the 

11 General Statutes, of chapter one hundred and thirty-three of the 

12 statutes of the year eighteen hundred and fifty-one, or of chapter 

13 thirty-eight of the Revised Statutes, corporations established by 

14 special charters subsequent to the twenty-third day of February 

15 in the year eighteen hundred and thirty for the purpose of carrying 

16 on any kind of manufacture, and those which in compliance with 

17 law have voted to adopt the provisions of chapter fifty-three of the 

18 statutes of the political year eighteen hundred and twenty-nine, of 

19 chapter thirty-eight of the Revised Statutes, of chapter sixty of the 

20 General Statutes, of chapter two hundred and twenty-four of the 

21 statutes of the year eighteen hundred and seventy, or of chapter one 

22 hundred and six of the Public Statutes, and have performed the 

23 things in that behalf prescribed in the several statutes so adopted, 

24 and those which shall comply with the provisions of the following 

25 section and the respective officers and stockholders of all such cor- 

26 porations shall be subject to the provisions of this chapter. 

1 Section 3. If any manufacturing corporation chartered before corporations 

2 the twenty-third day of February in the year eighteen hundred and 7w<taSb%t e ~ 

3 thirty, at a legal meeting called for the purpose, accepts the pro- i^*^*^' 

4 visions of this chapter, and causes to be recorded in the registry of **• s - 38 > §§ 26 > 

5 deeds in the county or district in which such corporation is estab- »• s. 60, §§ 28, 

6 lished a certificate, signed by its president, treasurer, clerk and a isto, 224, § 65. 

7 majority of its directors, stating the amount of its capital actually c j. 4'. ' 

8 paid in, and, if any part thereof has been divided or withdrawn, p - 8 - 106 >§*- 

9 the amount so divided and withdrawn, and also the amount of its 
10 debts and credits, and an estimate of the value of its real and per- 
il sonal estate for the purpose of carrying on its business at the time 

12 of making such certificate ; and if such officers make oath that they 

13 have carefully examined the records and accounts of said corpora- 

14 tion, and have faithfully estimated the value of its property and 

15 funds, and that said certificate signed by them is true according to 

16 their best knowledge and belief; then such corporation with its 

17 members and officers shall be subject to the provisions of this 

18 chapter applicable to such corporations ; and no stockholder therein 

19 shall be liable for any debts of the corporation contracted after the 

20 recording of such certificate, except for the causes and in the manner 

21 hereinafter provided. 

FORMATION OF CORPORATIONS. 

Purposes, Number of Associates and Limits of Capital Stock. 

1 Section 4. Any persons, to the number hereinafter provided, formations' 

2 who associate themselves by an agreement in writing hereinafter jssi, 133, § 1. 

. ° . ® 1852 9. 

3 described with the intention of forming a corporation for any pur- g. s. ei, § 1. 

1870 224 S 1 

4 pose hereinafter specified, upon complying with the provisions of p. s. 106, §6. 

5 section twenty, shall be and remain a corporation. 15 Gray! 211,' 

12 Allen, 273, 362. 98 Mass. 98. 101 Mass. 381, 385. [1 Op. A. G. 47, 185.] 494, 



960 



MANUFACTURING AND OTHER CORPORATIONS. [CHAP. 110. 



Formation of 
corporations 
tor mechani- 
cal, mining or 
manufactur- 
ing business. 
1851, 133, §§ 1, 2. 
1855, 68, § 1. 
G. S. 61, § 1. 

1870, 224, § 2. 

1871, 110, § 1. 
1875, 177, § 3. 
P. S. 106, § 7. 
1899, 199, § 1. 



Section 5. For the purpose of carrying on any mechanical or 1 

manufacturing business, except that of distilling or manufacturing 2 

intoxicating liquors, three or more persons may associate them- 3 

selves, with such capital, not less than five thousand dollars, as is 4 

fixed in the agreement of association, and, for the purpose of carry- 5 

ing on any mining business, three or more persons may associate 6 

themselves, with a capital of not less than five thousand nor more 7 

than one million dollars. 101 Mass. 385. 173 Mass. 254. 8 



— for printing, 

publishing, 

etc. 

1852, 9. 

G. S. 61, § 1. 

1862, 182. 

1870, 224, § 2. 

P. S. 106, § 8. 

101 Mass. 385. 

121 Mass. 539. 



Section 6. For the purpose of printing and publishing news- 1 

papers, periodicals, books or engravings, of carrying on any agri- 2 

cultural, horticultural or quarrying business, or of cutting, storing 3 

and selling ice, three or more persons may associate themselves, 4 

with a capital of not less than five thousand nor more than five hun- 5 

dred thousand dollars. 6 



ative r tTade; er " Section 7. For the purpose of co-operation in carrying on any 1 

1866 290 §§i5 business authorized in the two preceding sections, and of co-opera- 2 

18701224', §3.' tive trade, seven or more persons may associate themselves, with a 3 

capital of not less than one thousand nor more than one hundred 4 

thousand dollars. 5 



1879, 210. 

P. S. 106, § 9. 



canafs?etc n !"or Section 8. For the purpose of opening outlets, canals or 1 

fish pagation ° f ditches for the introduction and propagation of herrings and ale- 2 

1866, 187, § i. wives, three or more persons may associate themselves, with a capi- 3 

p. s'. 106, § lb. tal of not less than one thousand nor more than five thousand 4 

dollars. 5 



— for making 
gas and fur- 
nishing steam 
and hot water. 
1855, 146, § 1. 
1857, 276, § 1. 
G. S. 61, § 15. 
1870, 224, § 5. 
1879, 202, § 1. 
P. S. 106, § 11. 
1885, 240, § 1. 
1891, 189, § 1. 
1893, 397. 



Section 9. For the purpose of making, selling and distributing 1 

gas for light, or for heating, cooking, chemical and mechanical pur- 2 

poses, or for the purpose of generating and furnishing steam or hot 3 

water for heating, cooking and mechanical power, or for the purpose 4 

of generating and furnishing hydrostatic or pneumatic pressure for 5 

mechanical power, in any city or town, or for any two or more of 6 

said purposes, ten or more persons may associate themselves, with 7 

a capital of not less than five thousand nor more than five hundred 8 

thousand dollars. 9 



— as common 
carriers of per- 
sons or prop- 
erty. 

1870, 224, § 6. 
1873, 179. 
r. S. 106, § 12. 



Section 10. For the purpose of transacting the business of a 1 

common carrier of persons or property, three or more persons may 2 

associate themselves, with a capital of not less than five thousand 3 

nor more than one million dollars, with power to contract for the 4 

carriage of persons or property beyond the limits of this common- 5 

wealth, but not to purchase or operate railroads, canals or ferries. 6 



— for erecting, 
etc., hotels and 
public halls. 
1872, 244. 
P. S. 106, § 13. 
1888, 116. 



Section 11. For the purpose of erecting and maintaining a 1 

hotel, public hall or building for manufacturing or mechanical pur- 2 

poses, three or more persons may associate themselves, with a capital 3 

of not less than five thousand nor more than five hundred thousand 4 

dollars, but with no power to engage in the business of an inn- 5 

keeper. 6 



slaughtering Section 12. For the purpose of buying and slaughtering swine, 1 
etc - and of melting and rendering and pork packing, three or more per- 2 



Chap. 110.] manufacturing and other corporations. 961 

3 sons may associate themselves, with a capital of not less than one 1874, 295, § 1. 

4 hundred thousand nor more than five hundred thousand dollars. 

1 Section 13. For the purpose of carrying on any lawful business Formation of 

2 not mentioned in the eight preceding sections, except distilling or fo'rln^ott.er 

3 manufacturing intoxicating liquors, buying and selling real estate, ^"except, 

4 banking, insurance, and any other business the formation of corpo- ^4 165 

5 rations for which is otherwise regulated by these statutes, three or f^™! | 5 ] f- 

6 more persons may associate themselves, with a capital of not less [iop.A.G.153, 

7 than one thousand nor more than one million dollars. 

1 Section 14. Any or all of the creditors of any corporation which takTirp a bu£- t0 

2 exists by authority of this commonwealth and is organized or char- n ess ^a^ 

3 tered for any purpose designated in this chapter, which has been poration.' 

4 adjudged bankrupt or insolvent or has made an assignment of its p. s. 106, § 15. " 

5 property for the benefit of its creditors, or any or all persons for 

6 whose benefit such corporation has assigned the whole or any part 

7 of its property, and such other person or persons in either case as 

8 they may select, may associate themselves for the purpose of form- 

9 ing a corporation to acquire the whole or any part of the property 

10 of such debtor corporation and to carry on the business previously 

11 authorized to be carried on by it. 

Agreement, Name and Organization. 

1 Section 15. The agreement of association shall state that the contents of 

2 subscribers thereto associate themselves with the intention of forming lfs^ia!, 1 ^. 

3 a corporation, the corporate name assumed, the purpose for which wef.^Vri. 

4 it is formed, the city or town, which shall be in this commonwealth, p 7 | i^'|i' 6 

5 in which it is established or located, the amount of its capital stock gi Ma^s'llf " 

6 and the par value and number of its shares. 

1 Section 16. Any name may, subject to the provisions of section corporate 

2 eight of chapter one hundred and nine, be assumed by a corporation, l^T/m, § 6. 

3 If organized for the purposes mentioned in sections seven or eight, or §70/ 224, § § 8. 

4 under the provisions of chapter one hundred and fourteen or section ^If |||' § 5 - 

5 thirty of chapter one hundred and eighteen, or if subject to any of ™~y lit' !r- 

6 the provisions of chapter one hundred and sixteen, the words nV,§3;ii9,§28. 

7 "co-operative" or "fishing" or "co-operative bank" or "insur- is*?,' 214, § 30. 

8 ance ", or ' ' mutual insurance " if organized upon the mutual prin- i894J 522' § 30! 

9 ciple, or ' ' trust company ", respectively, shall form part of the name. lo1 Mass " 560- 

1 Section 17. The first meeting shall be called by a notice signed how^iiedal'd 

2 by one or more of the subscribers to such agreement, stating the ^-l'^- 

3 time, place and purpose of the meeting, a copy of which notice o. s. 6i,'§ 3.' 

4 shall, seven days at least before the day appointed for the meeting, mo; 224', § 9'. 

5 be given to each subscriber, or left at his usual place of business or P * s ' 106 ' § 18 ' 

6 residence, or deposited in the post office, postpaid, and addressed to 

7 him at his usual place of business or residence. Whoever gives 

8 such notice shall make affidavit of his doings, which, with a copy of 

9 the notice, shall be recorded in the records of the corporation. 

1 Section 18. The subscribers to the agreement of association subscribers to 

2 shall hold the franchise until the organization has been completed ; rtistn*butioii 18 o! 

shares. 



962 



MANUFACTURING AND OTHER CORPORATIONS. [CHAP. 110. 



1870, 224, § go. and, unless it is otherwise provided in such agreement, each sub- 
loi Mass. 385.' scriber who elects to take such shares at the first meeting may take 
such proportion of the shares of the capital stock as the number 
of subscribers to the agreement bears to the whole number of 
shares, or any part of such proportion, upon paying the assessments 
thereon as called for by the corporation. All shares not so taken 
shall be disposed of as the corporation determines. 

choice"** 1011 ' Section 19. At such first meeting, including any necessary or 

records' reasonable adjournment, an organization shall be effected by the 

^51, 133, §§4, 5. choice by ballot of a temporary clerk, who shall be sworn, and by 

1870,' 224, § io. the adoption of by-laws, and the election, in the manner provided 

' 'in section twenty-three, of directors, treasurer, clerk and such other 

officers as the by-laws may provide ; but at such first meeting no 

person shall be eligible as a director who has not subscribed the 

agreement of association. The temporary clerk shall make and 

attest a record of the proceedings until the clerk has been chosen 

and sworn, including a record of such choice and qualification. 



Certificate of 
organization 
to be filed. 
1851, 133, § 4. 
1855, 68, § 2. 
1857, 276, § 1. 
G. S. 61, § 8. 
1870, 224, §11. 
P. S. 106, § 21. 
151 Masa. 560. 



Section 20. The president, treasurer and a majority of the 
directors, shall forthwith make, sign and swear to a certificate set- 
ting forth a true copy of the agreement of association with the names 
of the subscribers thereto, the date of the first meeting and the suc- 
cessive adjournments thereof, if any, and shall submit such certificate 
and also the records of the corporation to the commissioner of cor- 
porations, who shall examine the same, and who may require such 
other evidence as he may judge necessary. If it appears that the 
requirements of the preceding sections preliminary to the establish- 
ment of the corporation have been complied with, the commissioner 
shall so certify and approve the certificate by his indorsement thereon. 
Such certificate shall thereupon be filed by said officers in the office 
of the secretary of the commonwealth, who, upon payment of the 
fee hereinafter provided, shall cause the same with the indorsement 
thereon to be recorded, and shall thereupon issue a certificate in the 
following form : — 



3 
4 

5 
6 

7 
8 
9 

1 
2 
3 
4 
5 
G 
7 
8 
9 
10 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 



Commonwealth of Massachusetts. 

Be it known that whereas [the name of the subscribers to the agreement of 
association] have associated themselves with the intention of forming a corpora- 
tion under the name of [the name of the corporation] , for the purpose [the pur- 
pose declared in the agreement of association] , with a capital of [the amount 
of capital fixed in the agreement of association] , and have complied with the 
provisions of the statutes of this commonwealth in such case made and provided, 
as appears from the certificate of the president, treasurer and directors of said 
corporation, duly approved by the commissioner of corporations and recorded in 
this office: now, therefore, I [the name of the secretary], secretary of the com- 
monwealth of Massachusetts, do hereby certify that said [the names of the 
subscribers to the agreement of association] , their associates and successors, 
are legally organized and established as, and are hereby made, an existing cor- 
poration under the name of [name of the corporation], with the powers, rights 
and privileges, and subject to the limitations, duties and restrictions, which by 
law appertain thereto. 

Witness my official signature hereunto subscribed, and the seal of the com- 
monwealth of Massachusetts hereunto affixed, this day of in the 
year . [the date of execution of the certificate.] 

The secretary shall sign the same and cause the seal of the com- 17 
monwealth to be thereto affixed, and such certificate shall have the 18 



Chap. 110.] manufacturing and other corporations. 963 

19 force and effect of a special charter and shall be conclusive evi- 

20 dence of the existence of such corporation. He shall also cause a 

21 record of such certificate to be made, and a certified copy of such 

22 record may be given in evidence with like effect as the original 

23 certificate. 

1 Section 21. Any corporation organized under the provisions certain corpo- 

2 of chapter one hundred and thirty-three of the acts of the year ^certificate. 

3 eighteen hundred and fifty-one, chapter sixty-one of the General i^s'.ic«, § §22. 

4 Statutes, or chapter one hundred and eighty-seven or two hundred 

5 and ninety of the acts of the year eighteen hundred and sixty- 

6 six, which at a meeting of its stockholders regularly notified for 

7 that purpose votes to comply with the provisions of this section, 

8 may submit to the commissioner of corporations a certificate signed 

9 and sworn to by its president, treasurer, clerk and a majority of 

10 its directors, setting forth a copy of its articles of agreement, with 

11 the names of the subscribers thereto, and a copy of the vote afore- 

12 said, and produce evidence of its regular organization according to 

13 law or of confirmatory action under the provisions of this chapter, of 

14 sections seventy-nine and eighty of chapter one hundred and six of 

15 the Public Statutes, of section sixty-six of chapter two hundred and 

16 twenty-four of the acts of the year eighteen hundred and seventy, 

17 of section four of chapter sixty-one of the General Statutes, or of 

18 section three of chapter four hundred and seventy-eight of the 

19 acts of the year eighteen hundred and fifty-five. 

20 The commissioner shall thereupon examine such certificate and 

2 1 evidence of organization ; and if it appears that the provisions of 

22 law have been complied with, he shall so certify and approve the 

23 certificate by his indorsement thereon. The secretary of the com- 

24 monwealth shall, upon the same being deposited in his office, and 

25 upon payment of the fee hereinafter provided, cause the same, with 

26 the indorsement thereon, to be recorded, and shall issue a certificate 

27 in the following form : — 

Commonwealth of Massachusetts. 

Be it known that whereas [the names of the original subscribers] formerly- 
associated themselves with the intention of forming a corporation under the 
name of [the name of the corporation] , for the purpose [the purpose declared 
in the articles of agreement] , under the provisions of [the designation of the 
statute under the provisions of which organization was effected] , with a capital 
of [the amount of the capital stock as it stands fixed by the corporation at the 
date of the certificate] , and the provisions of the statutes of this commonwealth 
in such case made and provided have been complied with, as appears from the 
certificate of the president, treasurer, and directors of said corporation, duly 
approved by the commissioner of corporations and recorded in this office : now, 
therefore, I [the name of the secretary], secretary of the commonwealth of 
Massachusetts, do hereby certify that said [name of the corporation] is legally 
organized and established as an existing corporation, with the powers, rights 
and privileges, and subject to the limitations, duties and restrictions, which by 
law appertain thereto. 

Witness my official signature hereunto subscribed, and the seal of the com- 
monwealth of Massachusetts hereunto affixed, this day of in the year 
[the date of execution of the certificate.] 

28 The secretary shall sign the same and cause the seal of the com- 

29 monwealth to be thereto affixed, and such certificate shall be conclu- 

30 sive evidence of the existence of such corporation at the date of 



964 



MANUFACTURING AND OTHER CORPORATIONS. [CHAP. 110. 



such certificate. He shall also cause a record of such certificate to 31 
be made, and a certified copy of such record may be given in evi- 32 
dence with like effect as the original certificate. 33 



Officers. 
1808, 65, § 1. 
1829, 53, § 1. 
R. S. 38, §§ 2, 3. 
G. S. 60, §§ 3, 5. 
1866, 290, § 3. 
1870, 224, §§ 15, 
17. 

1874, 349, § 1, 
cl. 1. 



POWERS AND LIABILITIES. 

By-Laws, Officers, etc. 

Section 22. The business of every corporation which is sub- 1 

ject to the provisions of this chapter shall be managed and conducted 2 

by a president, a board of not less than three directors, a clerk, 3 

treasurer and such other officers and agents as the corporation au- 4 

thorizes for that purpose. The directors shall choose one of their 5 

number as president. p. s. 106, §§ 23, 25. 147 Mass. 224. 6 



— how chosen. 
1808, 65, § 1. 
1829, 53, § 1. 
R. S. 38, §§ 3-5. 
G. S. 60, § 4. 
1870, 224, § 16. 
P. S. 106, § 24. 
8 Cush. 93. 



Section 23. The directors, clerk and treasurer shall be chosen 1 

annually by the stockholders by ballot, and shall hold office for one 2 

year and until others are chosen and qualified in their stead. The 3 

manner of choosing or appointing all other agents and officers, and 4 

of filling all vacancies, shall be prescribed by the by-laws. 5 

7 Gray, 1. 15 Gray, 211. 



Clerk. 
Treasurer. 
Bond. 
1808, 65, § 1. 
1829, 53, § 1. 
R. S. 38, § 4. 
G. S. 60, § 6. 
1870, 224, § 18. 



Section 24. The clerk shall be sworn, shall record all votes in 1 

a book to be kept for that purpose and shall perform all other 2 

duties assigned to him. The treasurer shall give bond for the faith- 3 

ful performance of his duty in such sum and with such sureties as 4 

shall be required by the by-laws. p. s. 106, §26. 15 Gray, 211. 5 



Voting by 

proxy. 

R. S. 38, § 7. 

G. S. 60, § 7. 

1870, 224, § 19. 

P. S. 106, § 27. 



Section 25. Absent stockholders may vote at all meetings by 1 

proxy, authorized in writing, which, if the maker thereof resides in 2 

the United States, shall be executed and dated within six months 3 

previous to the meeting at which it is used. 4 



Quorum of 
stockholders. 
1829, 53, § 15. 
R. S. 38, § 7. 
G. S. 60, § 7. 
1870, 224, § 20. 
P. S. 106, § 28. 



Stockholder 
to have certifi- 
cate of stock. 
1808, 65, § 3. 
1829, 53, § 3. 



Section 26. Every such corporation may determine by its by- 1 

laws what number of stockholders shall attend, either in person or 2 

by proxy, or what number of shares or amount of interest shall be 3 

represented at any meeting, to constitute a quorum. If the quorum 4 

is not so determined, a majority in interest of the stockholders shall 5 

constitute a quorum. 6 

Capital Stock. 

Section 27. Each stockholder shall be entitled to a certificate 1 

of his stock, signed by the treasurer of the corporation and sealed 2 

R. S. 38, §10. G. S. 60, §10. 1874, 349, § 1. & 



with its seal 

1852, 180. 



1870, ;A24, § 23. 



P. S. 106, § 29. 



Transfer of 
shares. Lost 
certificates. 
1808, 65, § 4. 
1829, 53, § 4. 
R. S. 3S, § 12. 
1846, 45. 
G. S. 60, § 13. 
1870, 224, § 26. 
P. S. 106, § 30. 
12 Gray, 213. 
8 Allen, 15. 
138 Mass. 240. 



Section 28. Shares may be transferred by the stockholder by an 1 

instrument in writing signed by him, which shall be recorded by 2 

the clerk in a book to be kept for that purpose. The purchaser 3 

named in such instrument so recorded shall, upon production thereof 4 

to the treasurer and delivery to him of the former certificate, be en- 5 

titled to a new certificate. In case of the loss of a certificate, a 6 

duplicate certificate may be issued upon such reasonable terms as the 7 

directors shall prescribe. 8- 



Chap. 110.] manufacturing and other corporations. 965 

1 Section 29. The amount of the capital stock of every corpora- capital stock 

2 tion which is established by special charter and which is subject to speclalPy mes 

3 the provisions of this chapter, shall, at the first meeting of the cor- howHmlted. 

4 poration, unless the charter otherwise provides, be fixed and limited iHg^lff; 

5 by the corporation and divided into shares, of which a record shall §' l'lo'§9' 

6 be made by the clerk. p. s. 106, § 32. 6 Gray, 586. isVo, 224, § 22. 

1 Section 30. The capital stock of every corporation which is -iwin- 

2 subject to the provisions of this chapter, the amount whereof has reduced. 01 

3 been fixed and limited by such corporation according to law, shall it 2 !. Ifs, §1'. 

4 remain so fixed, subject to increase or reduction pursuant to the g. 5 s'.6 3 o% § 8 8 ;'6i 

5 provisions of this chapter. 1870, 224, § 21. p. s. ioe, §33. § 6 - 

i 

1 Section 31. Every corporation which is subject to the provi- reductfon^ 

2 sions of this chapter, unless otherwise expressly provided, at a capital stock. 

3 meeting; called for the purpose, may increase or reduce the amount 10. ' 

4 of its capital stock and the number of shares therein, within the 20. 

5 amount limited by its charter, if a chartered corporation, and by 1I55' iff; 1 1; 

6 the provisions of this chapter, if organized under general laws. (ffs'. 2 6o, §§ 11 

7 The limitation of such increase for such mechanical or manufacturing: SjL 6 l<J 6 ; Q 

O 18oo, 283, § 8. 

8 corporations, except those created for distilling or manufacturing- 1866, 290, § 5. 

r ' 1 o o 1870, 224 § 24 

9 intoxicating liquors, shall be the amount determined bv the stock- i87i| no| § 2. ' 

10 holders at a meeting called for the purpose. The capital stock of a 1375', 177, § 3. 

11 corporation which is established in this commonwealth and is subject io'6f§34. §43: 

12 to taxation under the provisions of section forty-nine of chapter 1899 ' 199 ' § 2 - 

13 fourteen shall not be reduced except upon application to the supreme 

14 judicial court. Written notice of such application shall be given to 

15 the tax commissioner and to the attorney general at least ten days 

16 before the hearing. 

1 Section 32. A corporation which is created by special charter certain corpo- 

2 for the purpose of carrying on any mechanical or manufacturing fncr°ate™nd 

3 business and which has not accepted the provisions of this chapter isr^noiT^ 1 ' 

4 or the corresponding provisions of earlier laws, a corporation which ^f^h 

5 is created by special charter for the purpose of mining whether p - s - 106, § 35. 

6 otherwise subject to the provisions of this chapter or not, and, sub- 

7 ject to the provisions of section twenty-four of chapter one hun- 

8 dred and nine, a corporation which is created by special charter or 

9 organized under general laws for the purpose of making and selling 

10 gas for light in a city or town, whether otherwise subject to the 

11 provisions of this chapter or not, may increase its capital stock to an 

12 amount not exceeding one million dollars, and may reduce the same, 

13 subject to the provisions of this chapter. 

1 Section 33. A mechanical, manufacturing or gas corporation —may hold 

2 whose capital stock is increased under the provisions of the preced- isTi/iiofI 3*. y ' 

3 ing section may hold real property necessary for the purposes for p'l'.io6f§36. 

4 which it was organized. 

1 

1 Section 34. If a corporation which is subject to the provisions Disposition of 

2 of this chapter, except a co-operative association or a corporation isto, i79. ies ' 

3 mentioned in section thirty of chapter one hundred and nine, in- ^77' 230' §3. 

4 creases its capital stock, its directors shall give written notice of fg^j^g' \| 7 ' 

5 such increase to each of its stockholders in the manner provided in 



966 



MANUFACTURING AND OTHER CORPORATIONS. [CHAP. 110. 



section twenty-nine of chapter one hundred and nine, and each stock- 6 

holder may take his proportion of the new shares as is provided in 7 

said section. The shares which are not so taken may be sold or 8 

issued in such manner as its stockholders may by vote direct ; but 9 

no shares shall be so sold or issued for a less amount than the par 10 

value thereof. 11 



Disposition of 
new shares 
of co-opera- 
tive associa- 
tions. 
1871, 109. 
1877, 230, § 3. 



Section 35. If a co-operative association increases its capital 1 

stock the new shares may be sold or issued in such manner as the 2 

stockholders may by vote direct, but not for a less amount than the 3 

par value thereof. p. s. 106, § 38. 4 



Special stock. 
1855, 290. 
G. S. 60, § 12. 
1870, 224, § 25. 
P. S. 106, § 42. 
15 Gray, 274. 
136 Mass. 207. 
139 Mass. 5. 



Section 36. A corporation which is subject to the provisions 1 

of this chapter may, by a vote of three-fourths of its general stock- 2 

holders at a meeting duly -called for the purpose, issue special stock, 3 

the total amount of which outstanding at any time shall not exceed 4 

two-fifths of the actual capital paid in on the general and special 5 

stock, and shall be subject to redemption at par after a fixed time 6 

which shall be expressed in the certificates. Holders of special stock 7 

shall be entitled to receive, and the corporation shall be bound to 8 

pay thereon, a fixed half-yearly sum or dividend, which shall be ex- 9 

pressed in the certificates, not exceeding four per cent, and they 10 

shall not be liable for the debts of the corporation beyond their 11 

stock. 12 



Employees' 

stock. 

1886, 209, § 1. 



Dividends on 

employees' 

stock. 

1886, 209, § 2. 



Transfer of 

employees' 

stock. 

1886, 209, § 3. 



Section 37. A corporation which is subject to the provisions 1 

of this chapter may, by a vote of its general stockholders at a meet- 2 

ing called for the purpose, issue employees' stock to be held only by 3 

the employees of such corporation. The par value of the shares of 4 

such employees' stock shall be ten dollars, and the purchasers thereof 5 

may pay for them in monthly instalments of one dollar upon each 6 

share. The total amount of such employees' stock outstanding at 7 

any time shall not exceed two-fifths of the actual capital paid in on 8 

the general and employees' stock. 9 

Section 38. If a dividend is paid by such corporation to its 1 

stockholders, the holders of employees' stock shall receive upon each 2 

share which has been paid for in full in time to be entitled to a 3 

dividend, an amount which shall bear such proportion to the amount 4 

paid as a dividend upon each share of the general stock of such 5 

corporation as the par value of the shares of such employees' stock 6 

bears to the par value of the shares of such general stock. 7 

Section 39. The shares of employees' stock shall not be sold 1 

or transferred except to an employee of such corporation or to the 2 

corporation itself. A corporation which issues employees' stock may 3 

prescribe by its by-laws the number of shares which may be held 4 

by any one employee and the method of transfer and redemption 5 

of such stock as is held by any person after he ceases to be an 6 

employee of the corporation. 7 



Assessments 
upon shares. 
1808, 65, § 5. 
1829, 53, § 5. 
R. S. 38, § 13. 



Section 40. Every corporation which is subject to the pro- 1 
visions of this chapter may, from time to time at a legal meeting 2 
called for the purpose, assess upon each share such amount of 3 



L 



Chap. 110.] manufacturing and other corporations. 967 

4 money as it considers proper, not exceeding in the whole the par g. s. 60, § u. 

- 1870 99d K 97 

5 value thereof, unless the price is fixed as provided by section thirty p. s. 106, § 43. 

6 of chapter one hundred and nine, and, in such case, not exceeding 

7 said price. Such assessments shall be paid to the treasurer at such 

8 times and by such instalments as the corporation directs. 

1 Section 41 . If the stockholder neglects to pay an amount duly sale of shares 

2 assessed on his shares for thirty days after the time appointed for mentl asseBS ' 

3 payment, the treasurer of the corporation may sell by public auction iH; 1$; f k 

4 a sufficient number thereof to pay all assessments then due from <|; |; |<j' | \f 

5 him with necessary and incidental charges. p. s. 106, §44. i87o, 224, § 28. 

14 Maes. 285. 16 Mass. 94. 14 Pick. 483. 121 Mass. 272. 

1 Section 42. The treasurer shall give notice of the time and and deed of le ' 

2 place appointed for such sale, and of the amount due on each share, fg^^ 8 ? 1 ^ " 

3 by advertising the same three weeks successively before the sale ^29] 53! § 5! 

4 in a newspaper, if any, published in the county in which the cor- g'^s'. 60', § ie. 

5 poration is established ; otherwise in a newspaper published in an p 8 . s! 106; f 11'. 

6 adjoining county ; and a deed of the shares so sold, made by the 

7 treasurer and acknowledged before a justice of the peace and re- 

8 corded as provided in section twenty-eight, shall transfer said shares 

9 to the purchaser, who shall be entitled to a certificate therefor. 

1 Section 43. A corporation which is subject to the provisions of ^meifof*' 

2 this chapter shall not commence the transaction of the business for ^ 2 | ^ §6- 

3 which it was organized or chartered until the whole amount of its n. 

4 capital stock has been paid in and a certificate of that fact, and of 1857! m', § 1! 

5 the manner in which the same has been paid in and, at the time of is'; ei, §8. ' 

6 making the certificate, been invested or voted by the corporation iIto! 224) 1 12. 

7 to be invested, signed and sworn to by the president, treasurer and p^s'.ioe'lle 

8 a majority of the directors, has been filed in the office of the secre- fo^MassHsi 

9 tary Of the Commonwealth. 127 Mass. 564. 152 Mass. 428. 155 Mass. 184. 117 Mass. 478. 

1 Section 44. The capital stock, except as provided in this and the —how paid in. 

2 following section, shall be paid in in cash. The conveyance to the r 2 |'.?8,§ 24. 

3 corporation of real or personal property at a fair valuation shall be Sto.'I^.V^. 

4 a sufficient paying in of its capital stock to the extent of such ^ 7 | ^ |?- 47 

5 value, if a statement, made, signed and sworn to by its president, 48 - 

6 treasurer and a majority of its directors, giving a description of such 

7 property and the value at which it has been taken in payment, in 

8 such detail as the commissioner of corporations shall require or 

9 approve, and indorsed with his certificate that he is satisfied that 

10 said valuation is fair and reasonable, is filed with the secretary of 

11 the commonwealth. Such statement shall be included in the certifi- 

12 cate of payment of capital required by the preceding section. No 

13 note or obligation given by a stockholder, whether secured by pledge 

14 or otherwise, shall be considered as payment of any part of the 

15 capital stock. 

1 Section 45. If the corporation was organized for the purpose —may be paid 

2 of acquiring claims against, or property of, a bankrupt or insolvent property 3 fn° 

3 corporation, or property conveyed by it for the benefit of its credits i87V275^§ e 2 S , - 3. 

4 ors, as provided in section fourteen, any such claims or property P-s. 106, §49. 

5 may be assigned and conveyed to the corporation in payment for 



968 



MANUFACTURING AND OTHER CORPORATIONS. [CHAP. 110. 



Business 

powers of 

corporations. 

1851, 133, § 7. 

1855, 478, § 1. 

1857, 24. 

G. S. 61, § 7. 

1866, 290, § 2. 

1870, 224, §§ 15, 

31. 

P. S. 106, §§ 23, 

50. 

157 Mass. 37. 



shares of its capital stock at a fair and reasonable valuation, to be 6 

determined and approved by the commissioner as provided in the 7 

preceding section ; and his decision that such valuation is fair and 8 

reasonable, when made and certified as therein required, shall be 9 

final. No claim shall be so assigned or conveyed after three years 10 

from the date when the original corporation was adjudicated bank- 11 

rupt or insolvent or made such assignment for the benefit of its 12 

creditors. 13 

Business of Corporation. 

Section 46. A corporation which is subject to the provisions 1 

of this chapter may in its corporate name purchase, hold and convey 2 

real and personal property necessary for the purposes of its organ- 3 

ization ; may carry on its business, or so much thereof as is con- 4 

venient, beyond the limits of this commonwealth, and may there 5 

purchase and hold real or personal property necessary for conduct- 6 

ing its business ; but it shall not direct its operations or appropriate 7 

its funds to any other purpose than that specified in its agreement 8 

of association or its charter, as the case may be, except as provided 9 

in section seven of chapter one hundred and nine and in the three 10 

following sections. No conveyance or mortgage of its real prop- 11 

erty, or lease thereof for more than one year, shall be made unless 12 

authorized by a vote of the stockholders at a meeting called for the 13 

purpose. 14 



Change of 
corporate 
business. 
1875, 177, § 4. 
P. S. 106, § 51. 
1885, 310. 



Section 47. A corporation which is subject to the provisions of 1 

this chapter may, by a vote of all its stockholders at a meeting duly 2 

called for the purpose, alter, add to or change the business for the 3 

transaction of which it was incorporated, but it shall not engage in 4 

any business which is not authorized by the provisions of this 5 

chapter. A certificate setting forth such alteration, addition or 6 

change,. signed and sworn to by the president, treasurer and a major- 7 

ity of the directors, shall be filed in the office of the secretary of the 8 

commonwealth. 9 



Gas companies 
may furnish 
steam, etc. 
1879, 202, § 2. 
P. 8. 106, § 52. 
1885, 240, § 1. 



Section 48. Any gas company which was organized or chartered 1 

before the ninth day of April in the year eighteen hundred and 2 

seventy-nine may engage in the business of making, selling and dis- 3 

tributing gas for heating, chemical and mechanical purposes, or of 4 

generating or furnishing steam or hot water for heating, cooking 5 

and mechanical power in a city or town, by a vote of four-fifths of 6 

the stockholders representing not less than two-thirds of the stock, 7 

at a meeting duly called for that purpose, upon filing in the office of 8 

the secretary of the commonwealth a certificate as provided in the 9 

preceding section. 10 



of^kfetcf 6 Section 49. A corporation which is organized or chartered for 1 

g 5 I eo '§37- * ne manufacture of cotton or woollen goods may, by a vote of four- 2 

lro 224' 3i' fift ns of all its stockholders at a meeting called for the purpose, 3 

p. s. io6, § 53. carry on the manufacture of silk, linen, flax or rubber goods. 4 



hospitals! in Section 50. A manufacturing corporation may, by a vote of a 1 

1889,258. majority of the stock represented at a meeting of the stockholders 2 



Chap. 110.] manufacturing and other corporations. 969 

3 thereof, appropriate not more than five thousand dollars or an 

4 annual sum of not more than five hundred dollars for the support 

5 of free beds in one or more hospitals in this commonwealth, for the 

6 use of its employees. 

Certificates and Returns. 

1 Section 51. Every corporation chartered by this commonwealth ^of^andP" 

2 or organized under the general laws for the purpose of business or fon. _^ 

3 profit, which has a capital stock divided into shares, except banks, R. s. 38, § 22. 

4 co-operative banks, savings banks and institutions for savings, insur- i85i| 133; §§ 9, 

5 ance companies, including the Massachusetts Hospital Life Insurance \m, 438. 

6 Company, steam and street railway companies, safe deposit and ilp;^. 83 ' 

7 trust companies and the Collateral Loan Company, shall annually 24'- S 6i 60 §io 23 ' 

8 file in the office of the secretary of the commonwealth, within thirty i»|. 210. 

9 days after the date fixed in its by-laws for its annual meeting last istoJ 224; § 33. 

10 preceding the date of such certificate, or within thirty days after the 1874! 349', § 1. ' 

11 final adjournment of said meeting, but not more than three months Ss?,' 225.' § 5 ** 

12 after the date so fixed for said meeting, a certificate signed and sworn Jf^ gg|; 

13 to by its president, treasurer and at least a majority of its directors, 

14 stating the date of holding such meeting, the amount of capital stock 

15 as it then stands fixed by the corporation, the amount then paid in, 

16 the name of each shareholder and the number of shares standing in 

17 his name, and the assets and liabilities of the corporation, in such 

18 form, with such detail and of such date as the commissioner of cor- 

19 porations shall require or approve. Such certificates shall, by the 

20 act of filing, be considered as recorded and shall be preserved by the 

21 secretary in book form convenient for reference. 

1 Section 52. Such certificate of a corporation which has a capital ^|f c r ation by " 

2 stock of one hundred thousand dollars or more shall be accompanied i|^. *&• 

3 by a written statement under oath by an auditor to be employed by 

4 a committee of three stockholders who are not directors which shall 

5 be selected at the annual meeting of the stockholders, or, if there 

6 are less than three stockholders other than directors, to be employed 

7 by the directors, stating that such certificate represents the true con- 

8 dition of the affairs of said corporation as disclosed by its books at the 

9 time of making such audit. The statement of the auditor shall be 

10 filed by him with said certificate in the office of the secretary of the 

11 commonwealth and shall be attached to and form a part of said cer- 

12 tificate. The auditor shall be sworn to the faithful performance of 

13 his duties by a justice of the peace or some other magistrate au- 

14 thorized to administer oaths or affirmations ; and evidence of such 

15 appointment and qualification shall be filed in the office of the com- 

16 missioner of corporations. 

1 Section 53. If a corporation fails for two successive years to corporations 

2 file such annual certificate, the supreme judicial court, upon applica- suc^fertincate 

3 tion by the commissioner, after notice and a hearing, may decree a Solved 6 d18 " 

4 dissolution of the corporation. p. s. ioe, § 55. 1887, 225. 1896, 369. 1877 > 230 > § 2 - 

1 Section 54. A corporation which is subject to the provisions of {^j^g of 0f 

2 this chapter shall, upon an increase of its capital stock, within thirty ^P^L 8 *? g k - 

3 days after the payment or collection of the last instalment thereof, g.' s'. 6i,'§ 9.' 



970 



MANUFACTURING AND OTHER CORPORATIONS. [CHAP. 110. 



1870, 224, § 34. 
P. S. 106, § 56. 



file a certificate of the amount of such 



and the fact of 



increase 

such payment, signed and sworn to by its president, treasurer and 
a majority of its directors, in the office of the secretary of the com- 
monwealth. 



4 

5 
6 

7 



Certificate 
of reduction 
of capital. 
1855, 478, § 5. 
G.S. 61, §9. 
1870, 224, § 35. 
P. S. 106, § 57. 



Fishing associ- 
ations to file 
certificate of 
authority. 
1870, 224, § 36. 
P. S. 106, § 58. 



Section 55. A corporation which is subject to the provisions of 1 

this chapter shall, within thirty days after a reduction of its capi- 2 

tal stock is voted, file in the office of the secretary of the common- 3 

wealth a copy of the vote authorizing such reduction, signed and 4 

sworn to by its clerk. 5 

Section 56. A corporation which is organized under authority 1 

of this chapter for the purposes specified in section eight shall, 2 

within thirty days after obtaining the Avritten authority required by 3 

section seventy-one, file a copy of the same, certified by the city or 4 

town clerk, as the case may be, in the office of the secretary of the 5 

commonwealth. 6 



Examination 
and indorse- 
ment of cer- 
tificates. 
1870, 224, § 37. 
P. S. 106, § 59. 
1887, 225. 
1896, 369. 
1898, 503, § 1. 
|10p. A. G. 
203, 278.] 



Section 57. The certificate or copy which is required to be 1 

filed by the provisions of section eighteen of chapter one hundred 2 

and nine and sections forty-three, forty-seven, fifty-one, fifty-four, 3 

fifty-five and fifty-six of this chapter shall, before filing, be sub- 4 

mitted to the commissioner of corporations, who shall examine the 5 

same ; and if it appears to him to be a sufficient compliance in form 6 

with the requirements of this chapter, he shall certify his approval 7 

thereof by indorsement upon the same ; but he shall indorse only 8 

the date and fact of submission to his inspection upon the copies 9 

of votes of corporations or the authorizations of municipal author- 10 

ities required by the preceding section ; and upon the payment of 11 

the fee hereinafter provided, the same may be filed in the office 12 

of the secretary of the commonwealth, who shall receive and record 13 

the same in books to be kept for the purpose ; and, upon such 14 

filing, the corporation and its officers shall be conclusively held to 15 

have complied with the requirements of this chapter in respect to 16 

the filing of such certificate, except that it may be shown in 17 

evidence that the statements made in such return were false, and 18 

were known to be so by any officer or officers signing or making 19 

oath to the same. 20 



Liability of 
officers for 
debts and con- 
tracts. 
1821, 38. 
1829, 53, §§ 8, 9. 
R. S. 38, §§ 23- 
25, 28. 

G. S. 60, §§ 17- 
25, 30. 

1862, 218, § I. 
1870, 224, § 38. 
1875, 177, § 2. 
1877, 230, § 1. 
P. S. 106, § 60. 
1898, 266. 
10 Gray, 232, 
600. 

12 Gray, 203. 
15 Gray, 216. 

5 Allen, 398. 

6 Allen, 579. 
101 Mass. 385. 



Liability of Officers and Stockholders. 

Section 58. The officers of a corporation which is subject to 1 

the provisions of this chapter shall be jointly and severally liable 2 

for its debts and contracts in the following cases, and not other- 3 

wise : — 4 

The president and directors shall be so liable, — 5 

First, For making or consenting to a dividend if the corporation 6 

is or thereby is rendered insolvent, to the extent of such dividend. 7 

Second, For debts contracted between the time of making or 8 

assenting to a loan to a stockholder and the time of its repayment, 9 

to the extent of such loan. 10 

Third, If the debts of a corporation exceed its capital, to the 11 

extent of such excess existing at the time of the commencement of 12 

the suit against the corporation in which the judgment was recov- 13 



Chap. 110.] manufacturing and other corporations. 971 

14 ered upon which the suit in equity to enforce such liability is brought ™f Mass. 523. 

_ . _ . _ _ ■ - lib Mass. 29o. 

15 as hereinafter provided. 127 Mass. 563. 

16 The president, directors, and treasurer shall be so liable, — 148 Mass! 226.' 

17 Fourth, For signing any statement filed under the provisions of 156 Mass! 490! 

18 section forty-four, if the property mentioned in such statement 173 Mass- 242 - 

19 is not conveyed and taken at a fair valuation ; but only the officer 

20 or officers who sign the statement shall be so liable. 

21 The president, directors and other officers shall be so liable, — 

22 Fifth, For signing any certificate which is required by law know- 

23 ing it to be false ; but only the officer or officers who have knowl- 

24 edge thereof shall be liable. 

25 Sixth, For debts contracted before the original capital has been 

26 fully paid in and the certificate of such payment has been filed in 

27 accordance with the provisions of section forty-three. 

1 Section 59. The members or stockholders in any corporation Liability of 

2 which is subject to the provisions of this chapter shall be jointly and oi°membe?s S 

3 severally liable for its debts or contracts in the following cases, ^26,' 137, §2. 

4 and not otherwise : — io 2 n 53 ' §§ 6 ' 7 ' 

5 First, For such as may be contracted before the original capital K|^ 3 |^§§ 16 » 

6 is fully paid in ; but only those stockholders who have not paid in 1351,133,' §15; 

7 full the par value of their shares, and those who have purchased such 1852,9. 

8 shares with knowledge of the fact, shall be liable for such debts. G.s.*6o,'§§i2, 

9 Second, For the payment of all debts existing at the time when is62, 2 ^iif'§ § 2 16 " 

10 the capital is reduced, to the extent of the amounts withdrawn and H™' ™> | ^ 9 - 

11 paid to stockholders. p 7 liul\'6i 

12 Third, If special stock is created under the provisions of section 13 pick. 484. ' 

. . . 21 Pick 454 

13 thirty-six, the general stockholders shall be liable for all debts and 6 Met. 114. ' 

14 contracts until the special stock shall have been fully redeemed. scush.ik. 

15 Fourth, For all money due to operatives for services rendered 10 Bray, 232! 

16 within six months before demand made upon the corporation, and le Graf' 127' 

17 its neglect or refusal to make payment. 6 Alien'' -"9' 

18 Any such member or stockholder who pays, on a iudgment or 106 Mass. 131. 

19 otherwise, more than his proportion of any such debt shall have a 127 Mass! wt, 

20 claim for contribution against the other members or stockholders. 134' Mass. 590. 

1 Section 60. A stockholder or officer in such corporation shall ^officers 1 " 8 

2 not be held liable for its debts or contracts unless a judgment has ^f^]^ 1 ?' 

3 been recovered against it and it has neglected for thirty days after 1352! 24. ' 

4 demand made on execution to pay the amount due, Avith the officer's is'62,'218, §3." 

5 fees, or to exhibit to him real or personal property of the corporation 1870! 224! § It'. 

6 subject to be taken on execution, sufficient to satisfy the same, and fAUenfsi. 62 ' 

7 the execution has been returned unsatisfied. 127 Mass. 563. 174 Mass. 434. nt Mass' 380' 



1 Section 61. The clerk or other officer who has charge of the cierttofur. 

2 records of any such corporation against which judgment has been so wfthifamesof 

3 recovered and execution so issued and returned unsatisfied, upon stockholders. 

4 reasonable request of the judgment creditor or of his attorney, shall {gTo'l^'lli 

5 furnish to him a certified list of the names of all persons who were p - s - 106 > § 63 - 

6 officers and stockholders in such corporation at the time of the com- 

7 mencement of the suit in which judgment was recovered. 

1 Section 62. After the execution has been so returned, any creditor may 

2 creditor may file a bill in equity, in behalf of himself and all other e^uttyVgamst 



972 



MANUFACTURING AND OTHER CORPORATIONS. [CHAP. 110. 



corporation 
officers and 
stockholders. 
1808, 65, § 6. 
1817, 1S3. 
1826, 137, § 1. 
1829, 53, § 11. 
P. S. 38, §§ 29- 
31; 44, §22. 

1851, 315, §§ 1, 3. 

1852, 24. 

G. S. 60, §§ 31, 
32, 34; 68, § 17. 
1862, 218, § 4. 
1866, 290, § 10. 
1870, 224, § 42. 
P. S. 106, § 64. 

8 Cush. 93. 

9 Cush. 192. 



creditors of the corporation, against it and all persons who were 3 

stockholders therein at the time of the commencement of the suit in 4 

which such judgment was recovered, or against all the officers who 5 

are liable for its debts and contracts, for the recovery of the money 6 

due from the corporation to himself and the other creditors for 7 

which the stockholders or officers may be personally liable by reason 8 

of any act or omission on the part of the corporation or that of its 9 

officers or any of them, setting forth the judgment and proceedings 10 

thereon, and the grounds upon which it is expected to charge the 11 

stockholders or officers personally. 12 



11 Gray, 139. 
14 Gray, 193. 
3 Allen, 485. 



9 Allen, 471. 
101 Mass. 385. 
108 Mass. 404, 523. 



109 Mass. 473. 
115 Mass. 286. 
118 Mass. 269. 



127 Mass. 563, 592. 
144 Mass. 399. 
173 Mass. 242. 



Stockholders 
to be assessed 
in proportion 
to stock. 
1862, 218, § 5. 
1870, 224, § 43. 
P. S. 106, § 65. 
16 Gray, 127. 
127 Mass. 586. 



Section 63. Such sums as may be decreed to be paid by the 1 

stockholders in such suit in equity shall be assessed upon them in 2 

proportion to the amounts of stock held by them respectively at the 3 

time when the suit in which said judgment was recovered was begun ; 4 

but no stockholder shall be liable to pay a larger sum than the 5 

amount of stock held by him at that time at its par value. 6 



Liability of 
estates in 
hands of ex- 
ecutors, etc. 
1826, 137, § 4. 
1829, 53, § 12. 
R. S. 38, § 34. 
1838, 98, § 1. 
G. S. 68. § IS. 
1862, 218, § 6. 



Section 64. The estates and funds in the hands of executors, 1 

administrators, guardians, conservators or trustees shall be liable to 2 

no greater extent than the testator, intestate, ward or person inter- 3 

ested in the trust fund would have been, if living and competent to act 4 

and hold the stock in his own name. 1870, 224, § 44. p. s. 106, § 66. 5 

10 Pick. 370. 6 Met. 114. 9 Cush. 192. 101 Mass. 60. 



Suit in equity, 
not abated by 
death of one 
defendant. 
1862, 218, § 7. 
1870, 224, § 45. 
P. S. 106, § 67. 
173 Mass. 242. 



Section 65. If a defendant dies during the pendency of such a 1 

suit in equity, it shall not abate thereby ; but his estate in the hands 2 

of his executor or administrator shall be liable to the same extent as 3 

he would be if living. Such executor or administrator may vol- 4 

untarily appear and become a party to the suit or may be summoned 5 

by the plaintiff. 6 



~i^ ndl8 ' Section 66. Such suit in equity shall not be dismissed by the 1 

i87o' 224 ! 46 plaintiff without an order of court and such notice to other credit- 2 
p. s'. io6, § 68. ors as the court may find reasonable under the circumstances. 3 



— not abated 
by non- 
joinder of 
persons liable. 
1862, 218, § 9. 
1870, 224, § 47. 
P. S. 106, § 69. 



Section 67. No such suit in equity shall be abated by reason 1 

of the non-joinder of persons liable as defendants unless the plain- 2 

tiff, after being notified by plea or answer of the existence of such 3 

persons, unreasonably neglects to make them parties. 10 Alien, 352. 4 



Suits may be 

defended by 

stockholder. 

1867, 36, §§1,2. 

1870, 224, §§ 48, 

49. 

P. S. 106, §§ 70, 

71. 

15 Gray, 216. 

14 Allen, 470. 



Section 68. If, in a suit against a corporation which is estab- 1 

lished by the laws of this commonwealth, it appears to the court 2 

that one of the objects of the suit is to obtain a judgment against 3 

the corporation in order to enforce an alleged liability of a person 4 

who has been or is a stockholder or officer thereof, any such stock- 5 

holder or officer may be permitted, on petition, to defend such suit, 6 

and in such case the court may require of him or of a person in his 7 

behalf, a bond with sufficient surety or sureties, conditioned to pay 8 

to the plaintiff all costs which may accrue and be taxed to him after 9 

the filing of said petition. 10 



Chap. 110.] manufacturing and other corporations. 973 

co-operative associations. 

1 Section 69. A corporation which is organized for the purposes Profits of co- 

2 set forth in section seven shall distribute its profits or earnings ciationsThow " 

3 among its workmen, purchasers and stockholders at such times and ig^gof^. 

4 in such manner as shall be prescribed by its by-laws, and as often p 7 !' lot §72 

5 at least as once in twelve months ; but no distribution shall be made 

6 unless at least ten per cent of the net profits have been appropriated 

7 for a contingent or sinking fund, until an amount has accumulated 

8 equal to thirty per cent of its capital stock. 

1 Section 70. No person shall hold shares in any co-operative no person to 

2 association to an amount exceeding one thousand dollars at their par one thousanof 11 

3 value, nor shall any stockholder be entitled to more than one vote stock! 80 * 

4 upon any subject. 1870, 224, § 52. p. s. 106, § 73. 1866 > 290 > § 7 - 

FISHING ASSOCIATIONS. 

1 Section 71. A corporation which is organized for the purposes Fishing asso- 

2 set forth in section eight may purchase and hold real estate necessary i87ol 224, § 54. 

3 for opening outlets, canals, sluice ways or ditches for the passage p - s - 106 > § 74 - 

4 of herring and alewives ; but before making any such purchase or 

5 doing any acts in pursuance of its organization, it shall obtain 

6 written authority from the mayor and aldermen of the city or the 

7 selectmen of the town within which its works are to be located. 

SWINE SLAUGHTERING ASSOCIATIONS. 

1 Section 72. A corporation which is organized for the purposes slaughtering 

2 set forth in section twelve may take, by purchase or otherwise, and may C take ?and 

3 hold such parcel of land, not exceeding one hundred acres in extent p. 7 !'. 107', § 2*. 

4 and situated in such place as the state board of health may determine 1886 > 101 > § 4 - 

5 to be suitable for said business ; and shall, within sixty days after 

6 the time of taking any land otherwise than by purchase, cause to be 

7 signed by its president and filed in the registry of deeds for the 

8 county or district in which said land lies a description thereof as 

9 certain as is required in a common conveyance of land and a state- 

10 ment of the purpose for which it is taken ; but no land shall be so 

11 taken without the approval in writing of the mayor and aldermen 

12 of the city or of the selectmen of the town in which it lies. 

1 Section 73. Such corporation shall be liable to pay all damages Liability for 

2 sustained by any persons in their property by the taking of any land Triaifryjury 

3 for the purposes described in section twelve. Whoever sustains p. 7 s'.io7',§l'. 

4 damages as aforesaid, and does not agree with such corporation 

5 upon the amount to be paid therefor, may, within one year after 

6 the taking of said land, apply by petition to the superior court in 

7 the county in which said land is situated for the assessment of 

8 damages. The clerk shall thereupon issue a summons to the cor- 

9 poration, returnable on the return day next following the expiration 

10 of fourteen days at least after the issuing of said summons, to appear 

11 and answer to the said petition. Said summons shall be served 

12 fourteen d&ys at least before the return day by leaving a copy 

13 with the clerk of the corporation. The amount of such damages 

14 shall be assessed by a jury unless the parties in writing waive their 



974: 



MANUFACTURING AND OTHER CORPORATIONS. [CHAP. 110. 



right to a jury ; and the verdict of the jury, being accepted and 15 

recorded by the court, or the award of the court, if a trial by jury 16 

is waived, shall be final and judgment shall be rendered and execu- 17 

tion issued thereon. The petitioner shall recover costs if the 18 

amount of said judgment exceeds the amount tendered to him for 19 

his damage before the filing of said petition ; otherwise the corpora- 20 

tion shall recover its costs. 21 



Buildings, 
etc. ; regula- 
tion by state 
board. 
1874, 295, § 4. 
P. S. 107, § 4. 



Section 74. Such corporation shall build upon such land suita- 1 

ble buildings for the slaughtering of swine and for melting and 2 

rendering, and all necessary stables and out-buildings. No such 3 

building shall be erected until the plans thereof, with all details of 4 

construction, have been submitted to and approved by said state 5 

board or by a person designated by it to examine them. The cor- 6 

poration shall carry on all its business in accordance with such regu- 7 

lations as said state board shall, from time to time, establish and 8 

furnish in writing to the clerk of the corporation ; and for each vio- 9 

lation of said regulations it shall forfeit not less than twenty nor 10 

more than five hundred dollars. 11 



Slaughtering 
business, how 
conducted. 
1874, 295, § 4. 
P. S. 107, § 5. 



Section 75. Such corporation may, subject to the provisions of 1 

the three preceding sections, manufacture and sell any of the usual 2 

products of said slaughtering and melting and rendering business, 3 

or may lease, or permit other persons to use, its buildings or parts 4 

thereof on such terms as may be agreed upon. Each member of 5 

the corporation may slaughter swine on said premises, subject to 6 

such regulations and tariff of prices as the corporation may, by vote 7 

at any regular meeting, establish and to the regulations of said 8 

state board. Whoever, being engaged in business on the premises 9 

of such corporation, violates any regulation of said state board, shall 10 

forfeit not less than twenty nor more than five hundred dollars. 11 



Gas light com- 
panies, etc., 
may open 
streets, when. 
1855, 146, § 2. 
G. S. 61, § 16. 
1870,224, § 56; 
353, § 2. 
1879, 202, § 1, 
last cl. 

P. S. 106, § 75. 
1885, 240, § 1. 
1896, 544, § 1. 
1899, 453. 
12 Allen, 75. 



— liable to re- 
pay damages, 
etc. 

1860, 121. 
P. S. 106, § 76. 
1896, 544, § 2. 



GAS, PNEUMATIC, ETC., COMPANIES. 

Section 76. Gas light companies, corporations organized for 
the purpose of transporting the United States mail, merchandise and 
other articles by means of pneumatic pressure or power, corpora- 
tions engaged in or organized for the purpose of manufacturing, 
buying, selling, distributing or dealing in artificial cold and refrig- 
erating and cooling materials and corporations organized for any of 
the purposes mentioned in section nine may, with the consent in 
writing of the mayor and aldermen of a city or the selectmen of a 
town, dig up and open the ground in any of the streets, lanes and 
highways thereof, so far as is necessary to accomplish the objects of 
the corporation ; but such consent shall not affect the right or 
remedy to recover damages for an injury caused to persons or 
property by the acts of such corporations. They shall put all such 
streets, lanes and highways into as good repair as they were in 
when opened ; and upon failure so to do within a reasonable time, 
shall be guilty of a nuisance. 



1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 



Section 77. If a person who is injured in his person or prop- 1 

erty by a defect in a highway which is caused by the operations 2 

of a company or corporation described in the preceding section in 3 

laying down or repairing its pipes or otherwise obstructing such 4 



Chap. 110.] manufacturing and other corporations. 975 

5 way recovers damages therefor of the city or town wherein such 

6 injury is received, such city or town shall, if such company or cor- 

7 poration is liable for said damages and has reasonable notice to 

8 appear and defend the original action, be entitled to recover of such 

9 company or corporation the damages so recovered from it with the 
10 taxable costs of both parties in such action. 

1 Section 78. The mayor and aldermen of a city or the selectmen Gasiightcom. 

2 of a town in which pipes or conductors of such company or cor- ?<? beregiu' 

3 poration are sunk may regulate, restrict and control all acts and men! etc. select ' 

4 doings of such company or corporation which may in any manner Jf 5 | 1 ^ 1 6 ' § § ^ 

5 affect the health, safety, convenience or property of the inhabitants p 7 !^? Hi- 
fi of such city or town. 

1 Section 79. A manufacturing or other corporation which has its other com- 

2 place of business in a city or town in which a gas light corporation Eoid e |aT stock. 

3 proposes to manufacture gas for light may hold not more than ten ofl. H'iii 

4 per cent of the capital stock of such gas corporation. p 7 s lots' ItI 

1 Section 80. Corporations which are organized under the pro- Gasforheat- 

2 visions of section nine for the purpose of making, selling and p'ofes* 5 '' Fur * 

3 distributing gas - for heating, cooking, chemical and mechanical 1885 ' m 

4 purposes shall have all the powers and privileges and be subject to 

5 all the duties, restrictions and liabilities of gas light companies under 
fi the general laws. Gas used for such purposes, except illuminating 

7 gas as defined by section fourteen of chapter fifty-eight, shall not be 

8 used for domestic purposes unless connected with a chimney or flue 

9 having direct connection with the open air. Whoever violates the 

10 provisions of this section shall be punished by a fine of not more 

11 than twenty dollars for each offence. 

1 Section 81. If a corporation which has a franchise in and the interest upon 

2 use of the public streets of a city or town for the supply and dis- ?und ant7 

3 tribution of gas, water, electric light or power, or for the mainten- 1901 ' 470 - 

4 ance of communication by wire or otherwise, holds for a longer 

5 period than six months money which is collected in advance from 

6 its customers to guarantee it against loss of charges or tolls, it shall 

7 pay annually upon said guaranty fund interest at the rate of four 

8 per cent per annum to the depositor thereof, which shall be applied 

9 to the payment of charges and tolls by said depositors. The 

10 annual return required of such corporation by section fifty-one shall 

11 include a true statement of all moneys, and of the value of any 

12 collateral, so held as a guaranty for the payment of charges or tolls, 

13 specifying the amount so deposited by the inhabitants of each city 

14 or town. If such corporation fails or neglects to make such return 

15 or fails, neglects or refuses to pay such interest it shall be punished 

16 by a fine of not less than one hundred nor more than five hundred 

17 dollars for each offence. 

CONFIRMATION OF ORGANIZATION OR PROCEEDINGS. 

1 Section 82. If doubts arise as to the legality of the organization confirmation 

2 of a corporation which was intended to be formed under the pro- ^ n T . 8&niza " 

3 visions of chapter sixty-one of the General Statutes or of any general g?s'. 6 7 i% § 4.' 

4 or special statute conferring similar rights upon corporations organ- }|^ |^> | ^ 



976 



MANUFACTURING AND OTHER CORPORATIONS. [CHAP. 110. 



1874, 349, § 1, 

last cl. 

P. S. 106, § 79. 



Confirmation 
of subsequent 
proceedings. 
1874, 349, § 2. 
P. S. 106, § 80. 



ized under its provisions, its stockholders, at a special meeting 5 

called for the purpose in the manner provided in section seventeen 6 

or by a justice of the peace upon the written request therefor of a 7 

majority of the acting directors, may by vote confirm such organiza- 8 

tion and all proceedings under it, and by so doing and depositing 9 

and filing a copy of such vote in the office of the secretary of the 10 

commonwealth, such corporation and its subsequent acts shall be 11 

held legal and valid, as if the original organization had been legal. 12 

Section 83. If doubts arise as to the legality of the organiza- 1 

tion of any corporation created by special charter for a purpose 2 

mentioned in this chapter, which is in the exercise of its franchise, 3 

or as to the regularity or sufficiency of the proceedings of any 4 

such corporation, whether created by special charter or formed 5 

under general laws, in consequence of failure subsequent to the 6 

organization to comply with the directions or requirements of any 7 

statute, the stockholders, at a special meeting called for the 8 

purpose in the manner provided in the preceding section, may 9 

by vote confirm such defective proceedings and all subsequent 10 

proceedings of the corporation dependent thereon. The clerk 11 

shall thereupon make a certificate under oath setting forth the 12 

particular matters especially causing the doubt, and a copy of the 13 

call of the meeting and of the vote of the stockholders, and the date 14 

of holding the meeting, which he shall present to the commissioner 15 

of corporations, who shall examine the same, and, if he finds that 16 

the provisions of this section have been complied with, shall so cer- 17 

tify by indorsement thereon. Upon filing the certificate so indorsed 18 

in the office of the secretary of the commonwealth, such proceedings 19 

shall be taken to be legal and valid as fully as if the requirements 20 

of the statutes had been complied with. 21 



PENALTIES FOR OMISSIONS TO FILE CERTIFICATES, ETC. 



Penalties for 

omitting to file 

certificates. 

1863, 246. 

1866, 290, § 9. 

1870, 224, § CO. 

1877, 57. 

P. S. 106, §§ 81, 

82. 

1887, 225. 

1896, 369. 



Penalty for 

refusing to 

give certified 

list. 

1864, 219, § 2. 

1870, 224, § 60. 

P. S. 106, § 83. 



Section 84. A corporation which, being subject to the pro- 1 

visions of this chapter, omits to cause to be filed any certificate 2 

or copy which is required by sections fifty-one, fifty-four and fifty- 3 

five shall forfeit two hundred dollars, to be recovered by action of 4 

tort brought in the name of the commonwealth in the county of 5 

Suffolk or in the county in which the corporation is established ; 6 

and its president, treasurer and directors, for the time being, shall 7 

in addition be jointly liable in a like amount for such omission ; 8 

and all forfeitures by a corporation under the provisions of this 9 

chapter may also be collected by information in equity, which may 10 

be brought in the county of Suffolk and shall be brought in the 11 

supreme judicial court in the name of the attorney general, at the 12 

relation of the commissioner of corporations ; and upon such in- 13 

formation the court may issue an injunction restraining the further 14 

prosecution of the business of the corporation named therein until 15 

such forfeitures, with interest and costs, are paid and until the 16 

returns required by this chapter are filed. 17 

Section 85. If an officer unreasonably refuses to give the cer- 1 

tified list mentioned in section sixty-one or wilfully gives a false 2 

list, he shall be liable to the judgment creditor for double the 3 

amount of all damages occasioned by such refusal or false list. 4 



Chap. 111.] railroad corporations and railroads. 977 

FEES. 

1 Section 86. The fees for filing and recording the certificates Fees for filing, 

2 which are required by this and the preceding chapter to be filed cate' 8 certlfl " 

3 with the secretary of the commonwealth shall be as follows : — Ss?," 225.' § S4 " 

4 For filing and recording the certificates required by sections 1896 > 369 - 

5 twenty and twenty-one, including the issuing of the certificate of tion. 

6 organization by the secretary, one-twentieth of one per cent of the ml', 7J5*' § 2 " 

7 amount of the capital stock as fixed by the agreement of association ; iffj; f^; § 59- 

8 but not less in any case than five nor more than two hundred dollars. 

9 For filing; and recording the certificate required by section fifty- — of increase 

of capital 

10 four, one-twentieth of one per cent of the amount by which the 1863,231, §2. 

11 capital is increased; but the amount so to be paid shall not, if i87i;356. 

12 added to the amount previously paid for filing and recording cer- 1896 > 523 >§ 2 - 

13 tificates under the provisions of sections twenty, twenty-one and 

14 fifty-four, exceed two hundred dollars ; and a corporation which 

15 has so paid two hundred dollars shall pay a fee of one dollar for each 

16 certificate thereafter filed and recorded under the provisions of sec- 

17 tion fifty-four. 

18 For filing and recording; the certificates required by sections forty- —of change of 

foU61H668 

19 seven and forty-eight, one dollar for each certificate. 1875, m,'§ 4. 

1879, 202, § 2. 1895, 169. 

20 For filing and recording the certificate required by section fifty- —of condition. 

21 one, five dollars. 

22 For filing and recording the certificate required by section ten of n ~ an f e ° hange of 

23 chapter one hundred and nine, one dollar. 1896, 523, §1. 

24 For filing and recording any other certificate required by law, one — other cer- 

25 dollar. 1870, 224, § 59. 1896, 523, §1. 

26 For official copies of any of the records mentioned in this chapter, copies. 

27 the rates now fixed by chapter two hundred and four for copies of ' ' 

28 similar records furnished by the secretary of the commonwealth. 



CHAPTER 111. 

of railroad corporations and railroads. 

- Matters of Construction. 
• Corporations Subject to this Chapter. 
-Rights Reserved by the Commonwealth. 

- Board of Railroad Commissioners. 

- General Powers and Duties of Board. 
•State Directors. 
-Charters. 

- Organizations under the General Law. 
-City and Town Subscriptions. 
-Meetings, Officers. 
-Capital Stock. 

- Bonds and Mortgages. 
•Taking Stock, etc., of Other Corporations. 

Books and Returns. 

•Location and Construction of Railroad. 
Sections 149-160. — Abolition of Grade Crossings. 



Sections 


1,2. 


Sections 


3-5. 


Sections 


6,7. 


Sections 


8-10. 


Sections 


11-27. 


Sections 


28,29. 


Sections 


30-34. 


Sections 


35-48. 


Sections 


49-54. 


Sections 


55-58. 


Sections 


59-62. 


Sections 


63-76. 


Sections 


77-82. 


Sections 


83-87. 


Sections 


88-148. 



978 RAILROAD CORPORATIONS AND RAILROADS. [CHAP. 111. 

Section 161. — Branche s and Extensions . 

Sections 162, 163. — Opening the Railroad for Use. 

Sections 164-168. — Remedy for Labor, etc., furnished for Construction. 
Sections 169-248. — Equipment and Operation. 
Sections 249-262. — Offences and Penalties. 
Sections 263-269. — Accidents. 
Section 270. — Damages by Fire. 

Section 271. — Encroachment on Lands of Corporation. 

Sections 272-278. — Connecting Railroads. 
Sections 279, 280. — Railroads for Private Use. 

Sections 281-285. — Corporations to Construct Railroads in Foreign 

Countries. 

MATTERS OF CONSTRUCTION. 

mi?3rt, § 2. Section 1 . In this and the following chapter, unless the context 1 

im'iw'* 1 ' otherwise requires : 2 

i9o!' 503' s L " R a il roa d s an d railways " means all railroads and railways except 3 

tramways in mines and marine railways. 4 

' ' Railroad " means a railroad or railway of the class usually oper- 5 

ated by steam power. 6 

" Street railway " or " railway " means a railroad or railway, in- 7 

eluding poles, wires or other appliances and equipment connected 8 

therewith of the class operated by motive power other than steam 9 

and usually constructed in, under or above the public ways and 10 

places. 11 

" Eailroad corporation " and " railroad company " means the cor- 12 

poration which lays out, constructs, maintains or operates a railroad 13 

of the class usually operated by steam power. 14 

"Location", as applied to a street railway, means the grant to 15 

a street railway company of the right to construct, maintain and 16 

operate a street railway in a public way or place. 17 

" Original", as applied to a street railway location in a city or 18 

town, means the first location granted to the company in such city 19 

or town. 20 

" The board " means the board of railroad commissioners. 21 

" Public way " means any way laid out by public authority. 22 

4?toin a inatter 8 Section 2 . The duties imposed by the provisions of this chapter 1 

arising in Bos- U p 0n the mayor and aldermen of cities or the county commissioners 2 

i88i' 9iVi 5 ' as a tribunal of original jurisdiction relative to the fixing of routes 3 

p. s. 112, §2. or to the location, construction, maintenance and operation of rail- 4 

roads shall, in the city of Boston, unless it is otherwise expressly 5 

provided, devolve upon the board of aldermen of said city. When, 6 

in cases arising in said city, a jury is required, application therefor 7 

shall be made to the superior court in the manner prescribed in 8 

section ninety of chapter forty-eight, and duties devolved upon the 9 

county commissioners by reference or appeal from the mayor and 10 

aldermen of other cities shall devolve upon the board of railroad 11 

commissioners. 12 

CORPORATIONS SUBJECT TO THIS CHAPTER. 

8ub^ctto 10 this Section 3. Railroad corporations which have been heretofore 1 

R ia s pt 39'§45 established in this commonwealth shall be subject to the provisions 2 

g. s. 63^ § 1. f this chapter ; which, so far as inconsistent with charters granted 3 



1885, 194, § 2. 



Chap. 111.] kailroad corporations and railroads. 979 

4 since the eleventh day of March in the year eighteen hundred and p 7 f iii'llj' 

5 thirty-one, shall be an alteration and amendment thereof; but the n* Mass. 379. 

6 provisions of this section shall not impair the validity of any special 

7 power heretofore conferred by charter or other special act upon a 

8 particular railroad corporation which had exercised such power 

9 before the first day of February in the year eighteen hundred and 

10 seventy-five, or prevent the continued exercise thereof conformably, 

11 so far as may be, to the provisions of this chapter. 

1 Section 4. A railroad corporation chartered by the concurrent corporations 

2 legislation of this and other states shall, as regards any portion of concurrent 

3 its road lying within this commonwealth, be entitled to all .the i$4,m°§'w. 

4 benefits and be subject to all the liabilities of the railroad corpora- " ' s 

5 tions of this commonwealth. 

1 Section 5. If a railroad which has been laid out and constructed —or trustees 

f • 1 i operating 

2 by one corporation is lawfully maintained and operated by another roads ° f other 

3 corporation, the latter corporation shall be subject to the provisions 1874, 372, § 3. ' 

4 of this chapter respecting or arising from the maintenance and m Mass. 574. 

5 operation of such railroad, as if such railroad had been laid out and 174Mass - 379 - 

6 constructed by it. If a railroad is lawfully maintained and operated 

7 by trustees, they shall in like manner be subject to the provisions of 

8 law respecting or arising from the maintenance and operation of 

9 such railroad which apply to the corporation for whose stockholders 
10 or creditors they are trustees. 

RIGHTS RESERVED BY THE COMMONWEALTH. 

1 Section 6. The provisions of this chapter shall not impair the Rights of com- 

2 rights of the commonwealth as asserted or reserved in previous ^s.lslf^si. 

3 statutes, and the commonwealth may, at any time during the con- §72/ If,' |il. 8 * 

4 tinuance of the charter of a railroad corporation after the expiration \^' 372 > §§ 178 « 

5 of twenty years from the opening of its road for use, purchase of the p - 8.112, §§ 6,7. 

6 corporation its road and all its franchise, property, rights and privi- 

7 leges by paying therefor such amount as will reimburse to it the 

8 amount of capital paid in, with a net profit thereon of ten per cent a 

9 year from the time of the payment thereof by the stockholders to 
10 the time of the purchase. 

1 Section 7. The commonwealth may, at any time after one common. 

2 year's notice in writing to a railroad corporation, take and possess tateroad? 7 

3 its road, franchise and other property ; and shall pay therefor such ^7o, n 325, § 2. 

4 compensation as may be awarded by three commissioners, who p 7 |' iiff| 81 " 

5 shall be appointed by the supreme judicial court, who shall be sworn 

6 to appraise the same justly and fairly and who shall estimate and de- 

7 termine all damages sustained by it by such taking. A corporation 

8 which is aggrieved by their determination may have its damages 

9 assessed by a jury in the superior court for the county of Suffolk, in 
10 the manner provided in section ninety of chapter forty-eight. 

BOARD OF RAILROAD COMMISSIONERS. 

1 Section 8. There shall be a board of railroad commissioners Railroad com- 

2 consisting of three competent persons, one of whom shall annually, Serks^etc 8 ' 

3 before the first day of July, be appointed by the governor, with the 1864 ' 152 ' § *' 



980 



RAILROAD CORPORATIONS AND RAILROADS. [CHAP. 111. 



1869, 408, §§ 1, 

13. 

1874, 372, § 6. 

1876, 185, §3; 

206, § 1. 

P. S. 112, §§ 9, 

11. 

1887, 334, § 2. 

1894, 535, §§ 1, 2. 

1895, 313. 

153 Mass. 169. 



advice and consent of the council, for a term of three years from 4 

said day. The board shall have a clerk, who shall be appointed by 5 

the governor, who shall keep a full and faithful record of its pro- 6 

ceedings and who shall serve such notices as the commissioners may 7 

require. The board may employ an assistant clerk, who shall per- 8 

form such clerical and other office work as the board may require 9 

and who, in the absence or during the disability of the clerk, may, 10 

if so directed by the board, perform his duties. The board may 11 

employ an accountant, skilled in the methods of railroad accounting, 1 2 

who shall, under its direction, supervise the method by which the 13 

accounts of corporations operating railroads or street railways are 14 

kept. The board may from time to time if, in its opinion it is 15 

necessary, appoint competent railroad and railway inspectors, not 16 

exceeding one for every one thousand miles of railroad track, each 17 

for a term of three years, and may for cause remove any such in- 18 

spector and appoint another in his place. Appointments to fill a 19 

vacancy shall be for the residue of the unexpired term. It shall 20 

appoint one or more competent experts to examine the reports 21 

required by section one hundred and sixty -nine. The commis- 22 

sioners and clerk shall be sworn before entering upon the per- 23 

formance of their duties and shall not be in the employ of or own 24 

stock in a railroad corporation or street railway company, nor 25 

shall they personally, or through a partner or agent, render any 26 

professional service or make or perform any business contract with 27 

or for a railroad or street railway corporation chartered under the 28 

laws of this commonwealth, except contracts made with them as 29 

common carriers, nor shall they, directly or indirectly, receive a 30 

commission, bonus, discount, present or reward from any such 31 

corporation. 32 



Salary of com- 
missioners, 
clerk, etc. 
1864, 152, § 8. 
1869, 408, §§ 7, 8. 

1873, 377, § 6. 

1874, 372, § 17. 
1876, 185, § 3. 
1879, 287, § 1. 
P. S. 112, § 10. 
1885, 119, 164. 
1890, 200, § 1. 

1894, 535, § 7. 

1895, 313. 

1900, 406. 

1901, 54. 



Section 9. The annual salary of the chairman of the board 1 

shall be five thousand dollars, that of the other commissioners four 2 

thousand dollars each, of the clerk twenty-five hundred dollars, of 3 

the assistant clerk not more than twelve hundred dollars and of each 4 

railroad and railway inspector fifteen hundred dollars, payable by 5 

the commonwealth. The commissioners shall be provided with an 6 

office in the state house, or in some other suitable place in the city 7 

of Boston, in which their records shall be kept. In the performance 8 

of their official duties, they shall be transported over the railroads 9 

and railways in this commonwealth free of charge, and may employ 10 

and take with them experts or other agents whose services they 11 

consider temporarily of importance. The board may expend not 12 

more than three thousand dollars annually in procuring necessary 13 

books, maps, statistics and stationery and in defraying expenses 14 

incidental and necessary to the performance of its duties, and not 15 

more than twenty-five hundred dollars annually in defraying the 16 

compensation of an accountant. A statement of such expenditures 1 7 

shall accompany its annual report. 18 



Apportion- 
ment of 
salaries, etc. 
1864, 152, § 7. 
1869, 408, § 9. 
1874, 372, § 18. 
1878, 167, § 1. 
P. S. 112, § 12. 
1887, 334, § 4. 



Section 10. The annual expenses of the board, including the 1 

salaries of the commissioners, clerk, assistant clerk, the compensa- 2 

tion of the accountant, the expenses incurred under the provisions 3 

of section one hundred and sixty-nine, the incidental expenses of the 4 

board and the salaries and expenses of the railroad and railway in- 5 



Chap. 111.] railroad corporations and railroads. 98] 

6 spectors shall be apportioned by the tax commissioner among the ism, 200, § 3. 

7 several railroad and street railway corporations and, on or before 1895,' iiil 88 " 

8 the first day of July in each year, he shall assess upon each of said 1897 ' 376, § 4 - 

9 corporations its share of such expenses, in proportion to its gross 

10 earnings from the transportation of persons and property for the 

1 1 year last preceding the year in which the assessment is made ; and 

12 such assessments shall be collected in the same manner as taxes 

13 upon corporations. 

GENERAL POWERS AND DUTIES OF BOARD. 

1 Section 11. The board shall make an annual report, which shall ^^ 11 ioi r f| ) 3 rt - 

2 be transmitted to the secretary of the commonwealth, on or before j 1 ; 



1870, 307, § 2. 



3 the first Wednesday in January, and be laid before the general i874| 372; §§ 9, 



14, 15. 



4 court. The report shall include such statements, facts and explana- p.'s.ii2,§§i3, 

5 tions as will disclose the actual working of the system of railroad 16, 26 " 

6 transportation in its bearing upon the business and prosperity of 

7 the commonwealth, such suggestions as to its general railroad 

8 policy, or any part thereof, or the condition, affairs or conduct of 

9 any railroad corporation, as may seem to it appropriate, such tables 

10 and abstracts of all the returns required to be made by railroad 

11 corporations as it considers expedient and a report of any proceed- 

12 ings taken under the provisions of section fifteen. 

1 Section 12. The board shall have the general supervision of all i^a 80 * 

2 railroads and railways, and shall examine the same; and the com- ^'f^-ii 2 ' 5 - 

3 missioners shall keep themselves informed as to the condition of p.s'. 112, §11. 

4 railroads and railways and the manner in which they are operated ess.] 

5 with reference to the security and accommodation of the public, and 

6 as to the compliance of the several corporations with their charters 

7 and the laws of this commonwealth. 

1 Section 13. The provisions of the following seven sections shall ^.ffi*^ 

2 apply to all railroads and railways, and to the corporations, trustees ff^Vsf"^ 8 ' 

3 or others who own or operate them. p. s. 112, §u. 187*1 372I § 7. 

1 Section 14. If, in the judgment of the board, any such cor- Board to 

2 poration has violated a law, or neglects in any respect to comply lnceof°iaws." 

3 with the terms of the act by which it was created or with the provi- \^ $?; 1 f; 

4 sions of any law of this commonwealth, it shall give notice thereof in pJs'.iiI'.Im, 

5 writing to such corporation ; and thereafter, if such violation or 

6 neglect continues, shall forthwith present the facts to the attorney 

7 general for his action. 

1 Section 15. If the board is of opinion that repairs are nee- Nou«ofne£ 

2 essary upon any railroad, or that an addition to its rolling stock, etcf r: 

3 or an addition to or change of its stations or station houses, or a if^sralfl; 

4 change in its rates of fares for transporting freight or passengers or p - s - 112 > § 16 - 

5 in the mode of operating its road and conducting its business, is 

6 reasonable and expedient in order to promote the security, con- 

7 venience and accommodation of the public, it shall in writing inform 

8 the corporation of the improvements and changes which it recom- 

9 mends should be made. 



982 



RAILROAD CORPORATIONS AND RAILROADS. [CHAP. 111. 



Examination 

of condition of 

road. 

1869, 408, § 4. 

1874, 372, § 10. 

P. S. 112, § 17. 



Section 16. Upon the application of the mayor and aldermen 1 

of a city or the selectmen of a town within which a part of any 2 

railroad is located, alleging grounds of complaint, the board shall 3 

examine the condition and operation of such railroad ; and if, upon 4 

the petition in writing of twenty or more legal voters in such city 5 

or town to the mayor and aldermen or selectmen to make such 6 

application, they refuse so to do, they shall indorse upon the 7 

petition the reason of such refusal and return it to the petition- 8 

ers, who may, within ten days thereafter, present it to the board 9 

and it may thereupon make such examination as if called upon by 10 

the mayor and aldermen or the selectmen, first giving to the 11 

petitioners and to the corporation reasonable notice in writing of 12 

the time and place of making such examination. If, upon such 13 

examination, it appears to the board that the complaint is well 14 

founded, it shall so adjudge, and shall in writing inform the cor- 15 

poration which operates such railroad of its adjudication. 16 



of accents! 1 Section 17. The board shall investigate the causes of any ac- 1 

lira' 98 8 «V 4 ' cident on a railroad or street railway which results in loss of life ; 2 

1874^ 372, § ii. and of other accidents which, in its judgment, require investigation. 3 

employees 8 by Section 18. An employee may make complaint in writing to 1 

^94,535, §6. the board of a defect in the ways, works, machinery or appliances 2 

of a railroad or street railway, and the name of the complainant 3 

shall not be divulged. 4 



Information 
to board by 
railroads. 
1869, 408, § 6. 
1874, 372, § 12. 
P. S. 112, § 19. 



Section 19. Every railroad corporation shall at all times, upon 1 

request, furnish to the board any information which may be required 2 

by it relative to the condition, management and operation of the 3 

road, and copies of all leases, contracts and agreements for trans- 4 

portation with express companies or otherwise to which such cor- 5 

poration is a party, and also with the rates for transporting freight 6 

and passengers upon its road and other roads with which its busi- 7 

ness is connected. 8 



Effect of ad- 
vice of board. 
1869, 408, § 12. 
1874, 372, § 13. 
P. S. 112, § 20. 



Section 20. No request or advice of the board shall in any 1 

manner impair the legal duties and obligations of a railroad corpo- 2 

ration or its legal liability for the consequences of its acts or of the 3 

neglect or mismanagement of any of its agents or servants. 4 



Annual exam- 
ination of 
books and 
accounts. 
1876, 185, § 2. 
P. S. 112, § 21. 



Section 21. The board shall from time to time in each year 1 

examine the books and accounts of every corporation which operates 2 

a railroad or street railway and require them to be kept in a uniform 3 

manner and upon the system prescribed by the board. Statements 4 

of the doings and financial condition of the several corporations 5 

shall be prepared and published at such times as the board shall 6 

consider expedient. 7 



Other exam- 
inations of 
books and 
financial con- 
dition. 
1876, 185, § 4. 
P. S. 112, § 22. 



Section 22. Upon the application in writing of a director, or of 1 

any person or persons who own one-fiftieth part of the paid-in capital 2 

stock of a corporation which operates a railroad or street railway, or 3 

who own the bonds or other evidences of indebtedness of such cor- 4 



Chap. 111.] railroad corporations and railroads. 983 

5 poration equal in amount to one-fiftieth part of its paid-in capital 

6 stock, the board shall examine the books and the financial condition 

7 of said corporation, and shall cause the result of such examination 

8 to be published in one or more daily newspapers in the city of 

9 Boston. 

1 Section 23. The board shall at all times have access to the list Board to have 

2 of stockholders of every corporation which operates a railroad or of stock- 

3 street railway, and may at any time cause the whole or a part im, e i£i § 5. 

4 thereof to be copied for its information or for the information of fiop"!'.!*! 3 ' 

5 stockholders in such corporation. ^ 78 -J 

1 Section 24. A corporation which refuses to submit its books to Penalty upon 

2 the examination of the board or unreasonably neglects to keep its for^eiusS| 8 to 

3 accounts in the method prescribed by the board shall forfeit not etc. bmit b0 ' 

4 more than five thousand dollars for every such refusal or neglect. ^ 7 | ^| |^ 

1 Section 25. In all cases investigated and inquiries made by the commissioners 

2 board and in all proceedings before it, any member thereof may witnesses™ 011 

3 summon witnesses in behalf of the commonwealth and may ad- p 7 s'. 1 rji ! ,f 25. 

4 minister oaths and take testimony. The fees of such witnesses for 1901 > 286 - 

5 attendance and travel shall be the same as for witnesses before the 

6 superior court, and shall be paid by the commonwealth upon the 

7 certificate of the board filed with the auditor. 

1 Section 26. The board shall prescribe the form for the annual Board topre- 

2 returns to be made by railroad corporations, may, from time to °| 7 o e |^ n |§ 3 4 

3 time, make changes and additions in such form and shall give to the 1874; 372! § 15'. ' 

4 corporations one vear's notice of any changes or additions which re- p.'s. 112, §26. 

5 quire an alteration in the method or form of keeping their accounts. 

6 It may change the form of such returns to conform to the form of 

7 returns required by the interstate commerce commission if it gives 

8 to the corporations one month's notice of such change ; and shall 

9 annually, on or before the fifteenth day of June, furnish blank 

10 forms of such returns. If a return is defective or appears to be 

11 erroneous, the board shall notify the corporation to amend it within 

12 fifteen days. The original of each return or amended return, sub- 

13 scribed and sworn to by the directors, treasurer and chief account- 

14 ing officer of the corporation, shall be preserved in the office of the 

15 board. 

1 Section 27. In any case in which the consent or approval of &| v i | lonby 

2 the board which may be required by law for any crossing at grade [™*»}£§ *■ 

3 is given, the board may, after notice to the parties interested and a 

4 hearing, impose conditions, limitations, restrictions and regulations 

5 relative to such crossing, its construction and use, and may from 

6 time to time change and modify them. 

STATE DIRECTORS. 

1 Section 28. State directors of railroad corporations shall #S£gSKS* 

2 annually, on or before the second Wednesday of January, make a °«- m 

3 report to the general court, suggesting any measures which may p. s. 112,127. 



984 



RAILROAD CORPORATIONS AND RAILROADS. [CHAP. 111. 



be necessary to secure to the public the greatest convenience and 
economy in freight and travel. 



Ineligibility as 
state directors, 



Section 29. A member of the general court shall not, during the 

p 7 | ip ! § 28 3 ' term for which he is elected, be eligible to the office of state director 

in a railroad corporation ; and a person who is in the employ of a 

railroad corporation, or who owns stock therein, shall not be eligible 

to the office of state director in such corporation. 



4 

5 

1 
2 
3 
4 
5 



Petition for 

charter to be 

accompanied 

by report of 

engineer, map, 

etc. 

1833, 176. 

R. S. 39, § 46. 

1848, 327, § 1. 

1849, 131, § 2. 
G. S. 63, § 13. 
P. S. 112, § 29. 



CHARTERS. 

Section 30. No petition to the general court for a charter for a 1 

railroad corporation shall be acted upon unless it is accompanied 2 

with a map of the proposed route on an appropriate scale and with 3 

a profile thereof on a vertical scale of ten to one as compared with 4 

the horizontal scale ; nor unless it is accompanied and supported 5 

by the report of a skilful engineer, founded on actual examination 6 

of the route, and by other proper evidence showing the character 7 

of the soil, the manner in which it is proposed to construct the road, 8 

the general profile of the surface of the country through which it is 9 

proposed to be made, the feasibility of the route and an estimate 10 

of the probable expense of construction. 11 



bi a piacldin t0 Section 31. Plans and profiles which may be presented to a com- 1 
^ateHbrary. m ittee of the general court in the hearing of a petition for such a 2 
g. s. 63,'§ 14. charter shall be placed by it in the state library. p. s. 112, § 30. 3 



Petition not to 
be acted upon 
until notice, 
etc. 

1833, 176. 
R. S. 39, § 47. 
G. S. 63, § 15. 
P. S. 112, § 31. 



Road to be 
within limits 
specified. 
P. S. 39, § 48. 
G. S. 63, § 16. 
P. S. 112, § 32. 



Section 32. No such petition shall be acted upon until notice 1 

thereof has been published according to law, designating the intended 2 

route with such certainty as to give reasonable notice to all persons 3 

interested therein that their rights may be affected by the granting 4 

of the petition and that they may have an opportunity to appear 5 

and object thereto ; but the provisions of this section and of section 6 

thirty shall not prevent the general court from requiring further 7 

surveys, plans and estimates. 8 

Section 33. Every charter shall confine the road within the 1 

limits indicated by the notice required in the preceding section, shall 2 

specify the several cities and towns through which the road may 3 

pass and shall otherwise designate the route on which the road is 4 

authorized to be made with as much certainty as the nature of the 5 

case will admit. 6 



Chartered 
roads to be 
located, etc., 
under this 
chapter. 
1S74, 372, § 33. 
P. S. 112, § 33. 
1882, 265, § 3. 



Section 34. The routes of railroads which are established by 1 

special charter, including branches and extensions, shall be fixed 2 

according to the provisions of sections forty-two and forty-three 3 

except so far as they may have been fixed by special statute ; and 4 

such railroads, branches and extensions shall be located and con- 5 

structed according to the provisions of this chapter regulating the 6 

location and construction of railroads by corporations established 7 

under general laws, except that section forty shall not apply if 8 

authority to so locate and construct has been granted by special act 9 

of the general court. 10 



Chap. 111.] railroad corporations and railroads. 985 

organizations under the general law. 

Agreement of Association, Corporate Name, etc. 

1 Section 35. Twenty-five or more persons, a majority of whom Formation of 

2 are inhabitants of this commonwealth, may associate themselves by corporations. 

3 an agreement in writing with the intention of forming a railroad Jiff; S^Vm. 

4 corporation ; and upon complying with the provisions of section $$£& ||^ 

5 forty-six shall, with their associates and successors, be and remain a 

6 corporation with the powers and privileges and subject to the duties, 

7 liabilities and restrictions set forth in this chapter and in any general 

8 laws applicable thereto. 

1 Section 36. The agreement of association shall set forth the Agreement of 

2 name of the corporation ; the termini of the railroad proposed to be 1I72 °53^§°2.' 

3 built; its length as near as may be ; the name of each county, city § 8 2 7 o.' 298 ' 37 "' 

4 and town through or into which its route extends ; its gauge, which p 7 f n| §35 

5 shall be either four feet eight and one-half inches, or three feet ; the 

6 amount of its capital stock, which shall not be less than ten thousand 

7 dollars for each mile, if the gauge is four feet eight and one-half 

8 inches, and not less than live thousand dollars for each mile if the 

9 gauge is three feet ; and the names of at least nine persons to act as 

10 a board of directors until others are chosen by the corporation. 

11 Each associate shall subscribe to the agreement his name, residence, 

12 post office address and the number of shares of stock which he 

13 agrees to take ; but no subscriber shall be bound to pay more than 

14 ten per cent of the amount of his subscription unless a corporation 

15 is duly established. 

1 Section 37. The corporate name assumed shall be one not in corporate 

2 use bv anv other corporation in this commonwealth and shall contain 1872, 53, §§' 3, 4. 

3 the words "railroad company" at the end thereof. The associates p.' s. 112, § 36. 

4 may from time to time, at a meeting called for the purpose, reduce 

5 the amount of the capital stock, but not below the limit prescribed 

6 in the preceding section ; and they may, in like manner, change the 

7 gauge of their road to the other gauge allowed by said section. 

8 The directors shall be subscribers to the agreement of association 

9 and a majority of them shall be inhabitants of this commonwealth. 

10 They shall appoint a clerk and a treasurer, who shall hold their re- 

11 spective offices until a clerk and treasurer of the corporation are 

12 chosen. The directors may fill any vacancy in their board or in 

13 the office of clerk or treasurer before the establishment of the cor- 

14 poration. 

1 Section 38. The directors shall cause a copy of the agreement ^j^™^. 

2 of association to be published in one or more newspapers in each mentor asw- 

3 county in which the road is proposed to be located at least once in J«J»£l* 

4 each of three successive weeks, and shall also cause a copy of said p.s'.Vi2,§37. 

5 agreement to be posted in each city or town in which the road is 

6 proposed to be located at least three weeks before proceeding to fix 

7 its route. The certificate of the clerk under oath of the posting and 

8 publication shall be evidence thereof. 



986 



RAILROAD CORPORATIONS AND RAILROADS. [CHAP. 111. 



Map of route, 
report of 
engineer and 
estimates. 
1872, 53, § 6; 
180, § 3. 
1874, 372, § 23. 
P. S. 112, § 38. 
124 Mass. 375. 



Fixing of the Route. 

Section 39. The directors shall prepare a map of the proposed 1 

route on an appropriate scale, with a profile thereof on a vertical 2 

scale of ten to one as compared with the horizontal scale, and shall 3 

procure the report of a skilful engineer, based on actual examination 4 

and survey, showing the kind and amount of excavation, filling, 5 

bridging and masonry required, the proposed grades, the number 6 

of highways and of other railroads, if any, and of navigable streams 7 

and tide waters, if any, to be crossed, and the manner proposed for 8 

crossing the same, the general profile of the surface of the country 9 

through which the road will pass, the feasibility of the route, the 10 

manner of constructing the road and a detailed estimate of the cost 11 

of construction. 12 



Certificate 
of public 
exigency. 
1882, 265, § 1. 



Section 40. After compliance with the provisions of sections 1 

thirty-five to thirty-eight, inclusive, and within thirty days after the 2 

first publication of notice of the agreement of association therein 3 

required, the directors therein named shall apply to the board for a 4 

certificate that public convenience and necessity require the con- 5 

struction of a railroad as proposed in such agreement. If the board 6 

refuses to issue such certificate, no further proceedings shall be had, 7 

but the application may be renewed after one year from the date 8 

of such refusal. 9 



Submission of 
map, etc., to 
mayor and 
aldermen, etc. 
1873, 121, § 2. 
1874, 372, § 24. 
P. S. 112, § 39. 



Section 41. The directors shall submit said map and report 1 

to the mayor and aldermen of every city and to the selectmen of 2 

every town named in the agreement of association, who shall there- 3 

upon appoint a time and place for a hearing, of which notice shall 4 

be given by publication in one or more newspapers published in the 5 

county for two successive weeks, the last publication to be at least 6 

two days prior to the hearing, and by posting copies of the notice 7 

in two or more public places in the city or town at least two weeks 8 

before such hearing. 9 



Route may be 
agreed upon. 
1872, 53, §7; 
180, § 3. 
1874, 372, § 25. 
P. S. 112, § 40. 
124 Mass. 376. 



— fixed by 
board, when. 
1872, 53, § 8; 
180, § 3. 
1874, 372, § 26. 
P. S. 112, § 41. 
124 Mass. 376. 



Section 42 . If the mayor and aldermen of a city or the select- 1 

men of a town named in the agreement of association, after such 2 

notice, exhibition of the map and the hearing, agree with the direct- 3 

ors as to the proposed route or as to any route of their railroad in 4 

said city or town, they shall in such agreement fix the route and 5 

sign and give to the directors a certificate setting it forth. 6 

Section 43. If they fail so to agree, the directors may petition 1 

the board to fix the route in said city or town ; and the board, after 2 

due notice to said mayor and aldermen or selectmen, shall hear the 3 

parties and fix the route in such city or town and make a certifi- 4 

cate setting forth the route as fixed by it, which shall be certified 5 

by its clerk to the directors. The costs of the petition shall be 6 

paid by the directors. All variations from the route first proposed 7 

shall be made upon the map. 8 



Spurs and 
branches. 
1873, 121, § 3. 
1874, 372, § 27. 
P. S. 112, § 42. 
124 Mass. 376. 



Section 44. The route fixed under the provisions of the pre- 1 
ceding two sections may include such spurs, branches and connecting 2 
and terminal tracks in any city or town as may be necessary to 3 



Chap. 111.] railroad corporations and railroads. 987 

4 enable the corporation conveniently to collect and deliver passengers 

5 and freight therein ; but no such branch, spur or connecting or 

6 terminal track shall be laid longitudinally within the limits of a 

7 public way without the consent of the mayor and aldermen or the 

8 selectmen, who, in giving such consent, may impose such conditions 

9 as to the location, construction and use thereof as may be agreed 

10 upon between themselves and the directors. Corporations which 

11 own or operate any such tracks so laid longitudinally in a public 

12 way shall, in respect to the same, be liable to the city or town for 

13 all loss or damage caused to it by the construction and use of such 

14 tracks and by the negligence or default of the agents or workmen 

15 of such corporations on such way. 

1 Section 45. When responsible persons have, in good faith, S^* 1 *^* 6 ' 

2 subscribed the amount of capital stock required by section thirty- report to be 

Q6t)Ofiit6Cl with 

3 six to the agreement of association and at least ten per cent of the board, when. 

4 par value of each share thereof has been actually paid in cash to the 1874^ 372, §28. 

5 treasurer, the directors, clerk and treasurer shall indorse upon p - s - 112 > § 43 - 

6 the agreement of association or annex thereto their certificate set- 

7 ting forth these facts and that it is intended in good faith to locate, 

8 construct, maintain and operate the railroad upon the route fixed, 

9 shall also annex to said agreement the certificate of publication 

10 mentioned in section thirty-eight and the several certificates fixing 

11 the route, shall present the same for inspection to the board and 

12 shall at the same time deposit in the office of the board the report 

13 of the engineer and the map. 

Certificate of Incorporation. 

1 Section 46. When it is shown to the satisfaction of the board p n e C OTpOTa ti f n . 

2 that the requirements of this chapter preliminary to the establish- ^72, j^y^ 

3 ment of a corporation have been complied with, and that an amount wsi! iei! ^ 

4 sufficient in its judgment to pay all damages immediate or conse- 

5 quential which may be occasioned by laying out, making and 

6 maintaining the railroad, or by taking any land or materials therefor, 

7 has in good faith been paid in cash to the treasurer, and when said 

8 board is satisfied by a bond, or such other assurance of good faith as it 

9 may consider necessary and require, that said amount wall remain in 

10 the hands of said treasurer until it is drawn out for the lawful ex- 

11 penditures of the corporation, the clerk of the board, upon its order, 

12 shall indorse upon the agreement of association or annex thereto a 

13 certificate stating that such requirements appear to have been com- 

14 plied with. The directors shall thereupon file the agreement of asso- 

15 ciation, with all the certificates indorsed thereon or annexed thereto, 

16 in the office of the secretary of the commonwealth ; who, upon the 

17 payment to him of a fee of fifty dollars, shall record the agreement 

18 of association and certificates indorsed thereon in a book to be kept 

19 for that purpose, and shall issue a certificate substantially in the 

20 following form : — 

Commonwealth of Massachusetts. 
Be it known that whereas [names of the subscribers to the agreement of *£™ ®* to# 
association] have associated themselves with the intention of fonning a corpora- 
tion under the name of the [name of the corporation], for the purpose of 
locating, constructing, maintaining and operating a railroad [description of the 
road as in the agreement of association], and have complied with the statutes of 



988 



RAILROAD CORPORATIONS AND RAILROADS. [CHAP. 111. 



this commonwealth in such cases made and provided : now, therefore, I, , 

secretary of the commonwealth of Massachusetts, do hereby certify that the 
persons aforesaid, their associates and successors, are legally established as a 
corporation under the name of the [name of the corporation] , with all the 
powers and privileges, and subject to all the duties, liabilities and restrictions, 
set forth in all general laws which now are or hereafter may be in force relating 
to railroad corporations. 

In witness whereof, I have hereunto subscribed my official signature, and 
affixed the seal of said commonwealth, this day of , in the year 

[day, month and year.] 



Certificate to 
be recorded. 



The certificate shall be recorded with the agreement of association ; 21 

and the original certificate or a certified copy of the record thereof 22 

shall be conclusive evidence of the establishment of the corporation 23 

at the date of such certificate. 24 



Proceedings 
void, when. 
1882, 265, § 2. 



Organizi 


ition 


of corporation, 


etc. 






1872, 


53,| 


jll. 


1874, 


372, 


§30. 


1878, 


215. 




1879, 


156. 




P. s. 


112, 


§45. 


First meeting. 



Increase and 
reduction of 
capital stock. 

1872, 53, § 15. 

1873, 121, § 1. 



Limit of time 
for construc- 
tion of road. 
1872, 53, § 16. 



Section 47. The agreement of association and all proceedings 1 

thereunder, including the fixing of the route, shall be void unless 2 

the certificate of incorporation is issued within one year after the 3 

time the route is fixed as provided in sections forty -two or forty- 4 

three . 5 

Organization, etc. 

Section 48. Upon the issue of such certificate of incorporation, 1 

the corporation may organize ; and, upon compliance with the pro- 2 

visions of section eighty-eight, may locate its railroad upon the 3 

route fixed, and may construct, maintain and • operate the same in 4 

the manner hereinafter prescribed, subject to the following provi- 5 

sions : — 6 

First, The first meeting shall be called by a notice signed by a 7 

majoritjr of the directors, stating the time, place and purpose of such 8 

meeting ; and the clerk shall, seven days at least before the day 9 

appointed therefor, deliver to each subscriber, or leave at his usual 10 

place of business or residence, or deposit in the post office, prepaid, 11 

and directed to him at his post office address, a copy of such notice. 12 

The clerk shall make an affidavit of his doings relative thereto, 13 

which shall be recorded with the records of the corporation. 14 

Second, If the capital stock fixed in the agreement of association 15 

is found to be insufficient for the construction and equipment of the 16 

railroad, the corporation at a meeting called for the purpose may, 17 

subject to the provisions of section twenty -four of chapter one hun- 18 

dred and nine, increase the same, from time to time, to the amount 19 

necessary for those purposes. It may, at a meeting called for the 20 

purpose, reduce the amount of the capital stock, but not below 21 

the limit prescribed in section thirty-six ; and in like manner may, 22 

subject to the provisions of the fifth clause of this section, change 23 

the gauge to the other authorized gauge. A certificate of the in- 24 

crease or reduction of capital or change of gauge shall, within 25 

thirty days thereafter, be filed in the office of the secretary of the 26 

commonwealth. 27 

Third, If such corporation does not begin the construction of its 28 

road and expend thereon at least ten per cent of the amount of its 29 

original capital stock within two years after the date of its certificate 30 

of incorporation and does not complete and open its road for use 31 

within four years after said date, its corporate powers and existence 32 

shall cease. 33 



Chap. 111.] railroad corporations and railroads. 989 

34 Fourth, No corporation which has a railroad of the gauge of three capital stock 

35 feet shall commence running its trains until its paid-up capital stock ™f r aii.' 

36 is equal to at least one-half of its cost, including equipment. Smuss 

37 Fifth, No corporation organized to construct its road on a gauge change of 

38 of three feet shall change such gauge to four feet eight and one-half fatel eregu " 

39 inches without complying with all provisions of law relative to the 1879 > is6 - 

40 capital stock of roads of the wide gauge ; and the fact that such 

41 provisions have been complied Avith shall be shown to the satisfac- 

42 tion of the board and indorsed by its clerk upon the certificate of 

43 such change of gauge before it is filed in the office of the secretary. 

CITY AND TOWN SUBSCRIPTIONS. 

1 Section 49 . Any town within which the road of a railroad cor- city and town 

2 poration organized after the first day of February in the year lsroSfK 8 " 

3 eighteen hundred and seventy-five, or the road of a railroad cor- j^a*.' 5 1; 

4 poration then existing and whose road was not then constructed, is p 7 s'nl' §4 6 

5 located or terminates, and any such city having by the latest census, 138 Mass. 286.* 

6 state or national, less than thirty thousand inhabitants, may subscribe 

7 for and hold shares of the capital stock or the securities of any or 

8 all such corporations to an amount not exceeding, for the aggre- 

9 gate in all such corporations two per cent of the valuation of such 

10 city or town for the year in which the subscription is made ; and any 

11 such town which has a valuation of not more than three million 

12 dollars may so subscribe for and hold the securities of such corpora- 

13 tions or either of them to an additional amount not exceeding one 

14 per cent of the valuation of such town in the year in which the sub- 

15 scription is made : provided, that two-thirds of the legal voters in 

16 such city or town, present and voting by ballot and using the voting 

17 list, at legal meetings called for the purpose and held in like manner 

18 as the meetings for the choice of municipal officers are held therein, 

19 vote so to subscribe. The provisions of this section shall not author- 

20 ize a city or town to make subscriptions to a greater amount than is 

21 authorized by section twenty-three of chapter twenty-seven. 

1 Section 50. A city or town, by vote passed in accordance with ^ become 

2 the provisions of the preceding section, may become an associate ^In? 0018 * 6 ' 

3 under the provisions of section thirty-five in the formation of a rail- ^MfJ« s 2; 

4 road corporation to construct a road located or terminating therein, p. s. 112, §47. 

5 with all the powers and privileges enjoyed by an individual associate. 

1 Section 51. The form in which the matters provided for in the Person to^exe- 

2 preceding two sections shall be voted upon shall be determined in town vote. 

3 cities by a concurrent vote of both branches of the city council, if ist-»; 'J^V: § 3'; 

4 two branches exist, otherwise by vote of the legislative board of the F?sfn2,§48. 

5 city, and in towns, by the selectmen ; and if a city or town has 

6 voted to subscribe to such stock or securities or to become an 

7 associate in the formation of such corporation, the mayor and alder- 

8 men if there is such board, otherwise the mayor, and in towns, the 

9 selectmen shall select some person who may, in behalf of the city or 
10 town, execute its vote. 

1 Section 52. A subscription which is authorized by vote under ^J;*;;; 1 '^ 

2 the provisions of section forty-nine shall be void unless actually montho after 



990 RAILROAD CORPORATIONS AND RAILROADS. [CHAP. 111. 

1874, 251, § 4; made by the persons authorized within twelve months after said 3 

p. s: ii2, §49. vote ; and unless, within said period, a part thereof is actually paid, 4 

<509°f" A " G ' or some proceeding is commenced by the corporation to enforce 5 

payment thereof, and at least twenty per cent of the capital stock of 6 

the corporation is actually paid in cash, and at least ten per cent 7 

of the capital stock is actually expended by it in the construction 8 

of its road. 9 

town 8 may Section 53. Cities and towns so subscribing for stock or securi- 1 

tax o™ioan y to y ^ es ma y ra, i se money to pay for the same by tax, or, within the limits 2 

pay for stock, prescribed by section twenty-three of chapter twenty-seven, by 3 

1874) 25i; § 5- loan, and may issue their notes or bonds for such loan, and may hold 4 

1876, 175. and dispose of such stock and securities in like manner as other town 5 

FiV Mass. 226.' property; and the selectmen of towns, and such persons as may 6 

be authorized by the legislative board of cities, may represent their 7 

respective municipalities at all meetings of the corporations in 8 

which the stock or securities are held and vote upon all the shares 9 

of stock owned by them respectively. 10 

to°secretarrof Section 54. The city or town clerk shall transmit to the secre- 1 

wealth 11 " * ar ^ r °^ ^ ne comm onwealth and to the board a certified copy of any 2 

1870, 64. vote of the city or town to subscribe for the stock of a railroad 3 

is93,'423,§5.' corporation or to pledge its credit or grant aid to the same, within 4 

thirty days after the day on which the vote is taken ; and if he neg- 5 

lects or refuses so to do he shall be punished by a fine of not less 6 

than five nor more than fifty dollars. 7 

MEETINGS, OFFICERS. 

meeting. Section 55. Every railroad corporation shall hold at least one 1 

g I'll' It 1 ' mee ting in each year for the choice of directors. Such meeting 2 

1863,' 212. shall be known as the annual meeting, and shall be held at some 3 

1874', 323; 372, convenient place established by the by-laws. At such meeting the 4 

p. s. ii2, § 5i. corporation shall fix the number of directors for the ensuing year, 5 

which number shall not be less than five. 6 

fngs^uow 66 *" Section 56. The president of a railroad corporation or of a 1 

1876 201 street railway company shall, within ten days after receiving a 2 

p. s'. ii2, § 52. written request therefor signed by not less than thirty stockholders, 3 

1897 99 . °. * . 

call a special meeting, which shall be held not more than thirty 4 

days after the date of the call. If the number of stockholders of 5 

the corporation is less than thirty, such meeting shall be called upon 6 

the request of a majority thereof. A president who neglects to call 7 

such meeting, when so requested, shall be punished by a fine of not 8 

less than one hundred nor more than one thousand dollars. 9 

ho°iders f 8tock " Section 57. The commonwealth, cities, towns and railroad cor- 1 

R r s X 39% 50 porations may at all meetings vote upon all the shares of stock held 2 

1848,68.' by them and each individual stockholder shall be entitled to one 3 

g. s. 63, §§ 5, 6. vote for each share held by him, not exceeding, however, one-tenth 4 

inf-j Q70 R<\ A_~\ ^J 

42.' ' part of the whole capital stock unless the vote of a certain proportion 5 

p 8 s'. nl, §§ 53, °f the capital stock is required by law. No vote shall be given upon 6 

M - shares owned by the corporation, or pledged in any form to or for its 7 



Chap. 111.] railroad corporations and railroads. 991 

8 benefit. No proxy shall be valid unless executed and dated within 

9 six months before the meeting at which it is used. 

1 Section 58. The immediate government and direction of the Directors, 

2 affairs of the corporation shall be vested in a board of directors, S urerand 

3 who shall hold their offices for one year and until others are elected jf ^ % § 49 

4 in their places. The directors shall elect one of their number to be G -. s -<^§2'.' 

5 president, and may elect another to be vice-president. They may mm! 372, § 43. 

6 choose a clerk, who shall be sworn, and a treasurer, who shall give fe Gray,' Jot?' 

7 bond in the sum required by the by-laws, with sureties, for the fit &??». 

8 faithful performance of his duties. 117 Mass. 226. 

CAPITAL STOCK. 

1 Section 59. The shares in the capital stock may be transferred Transfer of 

2 by an instrument in writing, recorded either bv the treasurer, 1833, m, §s. 

3 or by an officer duly authorized by the directors, in books to be g. a. es, § n. 

4 kept at such place as they may appoint. No transfer of shares, illf; lot'. § u ' 

5 unless so recorded, shall be valid against any person other than the f 2 ' Gray% § if, 6 ' 

6 transferrer or his representatives, except as provided in sections | 2 {- ]len U2 ' 

7 thirty-six and thirty-seven of chapter one hundred and nine. Upon f^^' "jjl 

8 making the transfer, a new certificate shall be issued. 159 Mass.' 64. ' 

1 Section 60. The directors may from time to time assess upon Assessments 

2 each share such amounts, not exceeding in all one hundred dollars R?s n 39 h , a §53- 

3 on a share or the price fixed under the provisions of section thirty- q 5 | 3 ^ 3 §§ g_ 10 

4 one of chapter one hundred and nine, as they think proper, and w 7 | 37 | | *£• 

5 may direct the same to be paid to the treasurer, who shall give notice 13 Met. 311. 

6 thereof to the subscribers or stockholders. If a subscriber has 1 Gray, 544. 

7 made no payment upon his shares, the directors, thirty days after 4Gray,'6i." 

8 an assessment has become due, may declare them forfeited, and may g Gray,' 5%! 

9 transfer them to any responsible person who subscribes for them and no Mast 21I; 

10 pays the assessments then due. If a stockholder neglects, for thirty 113 Ma88 - 79 - 

11 days after notice from the treasurer, to pay an assessment upon his 

12 shares, the directors may order the treasurer, after giving notice of 

13 the sale, to sell such shares by public auction to the highest bidder, 

14 and, upon the payment by him to the corporation of the unpaid 

15 assessments, of interest to the date of sale and of the charges of sale, 

16 the shares shall be transferred to him. If within thirty days after 

17 the sale the purchaser does not make said payment to the corpora- 

18 tion, the sale shall be cancelled and the stockholder shall be liable 

19 to the corporation for the unpaid assessments, interest thereon and 

20 charges of sale. If the amount so paid by the purchaser to the cor- 

21 poration is more than the amount for which the shares were sold, 

22 the stockholder shall be liable to the purchaser for the deficiency ; 

23 if it is less, the purchaser shall be liable to the stockholder for the 

24 surplus. 

1 Section 61. A railroad corporation, for the purpose of building increase of 

2 a branch or extension, or of aiding in the construction of another rail- VsVi , m, §2^ 

3 road, or of taking stock in a grain elevator corporation in the organ- . L ' § 

4 ization of which it is an associate, or of erecting and operating g£jgj 

5 grain elevators within this commonwealth, or of building depots, or 

6 of abolishing grade crossings, or of making permanent investments 



992 



RAILROAD CORPORATIONS AND RAILROADS. [CHAP. 111. 



Forfeiture for 
unauthorized 
increase of 
capital stock. 
1871, 389. 
1874, 372, § 177. 
P. S. 112, § 61. 
109 Mass. 99. 
142 Mass. 146. 



or improvements, or of funding its floating debt, or of refunding its 7 

funded debt, or for the payment of money borrowed for any lawful 8 

purpose, or for other necessary and lawful purposes, may, from 9 

time to time, in accordance with the provisions of section twenty- 10 

four of chapter one hundred and nine, increase its capital stock or 11 

bonds beyond the amounts fixed and limited by its agreement of 12 

association or its charter, or by any special law. IS 

Section 62. If a railroad corporation which owns a railroad in 1 

this commonwealth and is consolidated with a corporation in another 2 

state which owns a railroad therein increases its capital stock or the 3 

capital stock of such consolidated corporation, except as authorized 4 

by this chapter, without authority of the general court, or without 5 

such authority extends its line of road, or consolidates with any 6 

other corporation, or makes a stock dividend, the charter and fran- 7 

chise of such corporation shall be subject to forfeiture. 8 



Issue of bonds 
to fund float- 
ing debt. 
1854, 286, §§ 1, 
2,4. 

G. S. 63, §§ 120, 
121. 
1869, 131, § 1. 

1874, 372, § 49. 

1875, 58. 

1876, 170. 

P. S. 112, § 62. 

1887, 191. 

1894, 462. 

1897, 337. 

10 Allen, 448, 

459. 

157 Mass. 40. 

171 Mass. 242. 



BONDS AND MORTGAGES. 

Section 63. A railroad corporation may, by vote at a meeting 1 

called for the purpose, in accordance with the provisions of this and 2 

of sections twenty-four and twenty-five of chapter one hundred and 3 

nine, but not otherwise, issue coupon or registered bonds, coupon 4 

notes or other evidences of indebtedness payable at periods of more 5 

than twelve months from the date thereof to provide means for 6 

funding its floating debt, or for the payment of money borrowed for 7 

any lawful purpose, and may mortgage or pledge, as security for the 8 

payment of such indebtedness, a part or all of its road, equipment 9 

or franchise, or a part or all of its real or personal property. Such 10 

bonds, coupon notes or other evidences of indebtedness may be 11 

issued in amounts of not less than one hundred dollars each, pay- 12 

able in periods not exceeding fifty years from the date thereof, 13 

and may bear interest not exceeding seven per cent a year, pay- 14 

able annually or semi-annually, to an amount which, including that 15 

of bonds, coupon notes or other evidences of indebtedness pre- 16 

viously issued, does not exceed in all the capital stock of the cor- 17 

poration actually paid in at the time ; and such bonds, coupon 18 

notes or other evidences of indebtedness shall be recorded by its 19 

treasurer in books to be kept in his office. A bond, coupon note or 20 

other evidence of indebtedness shall not be issued unless approved 21 

by a person appointed by the corporation for that purpose, who 22 

shall certify that it is properly issued and recorded. 23 



bl^ds tered Section 64. At the request of the owner or holder of any 1 

1874' 372' uk) -4 ' cou P on bonds lawfully issued, other than bonds guaranteed by the 2 

p. s'. U2, § 63'. commonwealth, the railroad corporation which issued them may 3 

issue registered bonds in exchange for them, upon such terms and 4 

under such regulations as its directors may prescribe, and with the 5 

consent and approval of the trustees, if any, to whom a mortgage or 6 

pledge has been executed ; and such registered bonds shall, with the 7 

exception of the coupons, correspond in all respects with the coupon 8 

bonds for which they are exchanged, and shall be in conformity with 9 

all laws authorizing the issue of the coupon bonds. Such exchange 10 

shall not affect a mortgage or pledge given as security for the pay- 11 



Chap. 111.] railroad corporations and railroads. 993 

12 ment of such coupon bonds, and such mortgage or pledge shall 

13 remain in full force as security for such registered bonds ; and the 

14 coupon bonds shall be cancelled and destroyed at the same time that 

15 the registered bonds are issued in exchange therefor. 

1 Section 65. No railroad corporation which has issued bonds Mortgage to 

2 shall subsequently execute a mortgage upon its road, equipment and prevIous°iy ds 

3 franchise or upon any of its real or personal property, without in- isl^fase, § 3. 

4 eluding in and securing by such mortgage all bonds previously g-_|' -^ 'Uj* • 

5 issued and all its pre-existing debts and liabilities. p. s'. 112', § 64. 

1 Section 66. All bonds or notes which are issued by a railroad f e e c c t -£u; le8 co1 " 

2 corporation shall be binding and collectible in law, although nego- *| 5 | ™, § 5. 

3 tiated and sold by it or its agents at less than par. 1874/372, § 52.' 

J ° r P. S. 112, §65. 

1 Section 67. If a railroad corporation, having executed a mort- Trustees 

2 gage of its property, rights and privileges, or of a part thereof, to possession 

3 trustees for the benefit of its general creditors or of a particular wftneorpora- 

4 class of creditors, makes default in the performance of the condition ^ n d to °P erate 

5 of the mortgage so that the trustees or their successors are entitled ^'.esS'ia*. 

6 to the actual possession and usufruct of the property, rights and P-s. 112, §66. 

7 privileges therein conveyed, in trust for the purposes specified in 

8 the mortgage, the trustees, after entry, instead of retaining actual 

9 possession of the mortgaged premises and running the trains under 

10 their own direction and on their own responsibility, may contract 

11 with the corporation or other competent party to take or retain for 

12 them the possession of the mortgaged premises, and to use and operate 

13 the same on its own responsibility under the direction of its officers, 

14 accounting with the trustees for the earnings and income, and pay- 

15 ing over the net income and profits periodically, when and as far as 

16 it may by the terms of the mortgage be necessary for the perform- 

17 ance of its conditions, if at a meeting of the bondholders or creditors 

18 under the mortgage, duly notified ten days before said meeting in 

19 two or more daily newspapers published in the city of Boston and 

20 in at least one newspaper in each county through which the road is 

21 located, a majority in interest of the bondholders or creditors present 

22 or represented so vote by each casting one vote personally or by 

23 proxy for everyone hundred dollars held by him. All liabilities in- 

24 curred by the corporation or other party in operating the road under 

25 such contract shall be held as claims against and be paid out of the 

26 income, in the same manner and to the same extent as if the property 

27 had remained in the actual possession of the trustees and been 

28 operated by them. 

1 Section 68. Trustees in possession of a railroad under a Trustees in 

./. • 1 1 l j • Tk \ possession to 

2 mortgage shall annually notify a meeting, to be held in December, call annual 

3 of the bondholders or creditors for whose security they hold the S&3f?H4& 

4 road in trust, such notice to be published at least ten days before g^.O.Hi*, 

5 such meeting, in two or more daily newspapers in the city of Boston **> U2 > §§ ,i7 - 

6 and in at least one newspaper in each county through which the 

7 road is located ; and at such meeting they shall submit a report for 

8 the year, similar to the annual report of railroad directors to stock- 

9 holders. If they fail to call such meeting, five or more bondholders 



994 



RAILROAD CORPORATIONS AND RAILROADS. [CHAP. Ill 



or creditors, whose claims secured by the mortgage amount to not 10 
less than ten thousand dollars, may in the same manner call such 11 
meeting, to be held in the January following said December. 12 



Election and 
confirmation 
ot trustees. 
1857, 178, § 4. 
G. S. 63, § 127. 
P. S. 112, § 69. 



Section 69. At the annual meeting held under the provisions 
of the preceding section, the bondholders or creditors may elect 
three trustees under the mortgage, for the ensuing year and until 
others are chosen and qualified, each bondholder or creditor casting 
in person or by proxy one vote for every one hundred dollars due 
and secured to him under the mortgage. And the trustees or any 
of them or a bondholder or creditor may submit the proceedings of 
the meeting to a justice of the supreme judicial court, in court or 
at chambers, first giving notice of his intention to submit the pro- 
ceeding's and to move for the confirmation thereof to the former 
trustees under the mortgage, to the trustees of all other existing 
mortgages upon the road and to the corporation, seven days at least 
before the hearing thereon ; which notice may be served by an officer 
or disinterested person. The justice may hear the parties, ratify 
the election and make such order and decree as he may find neces- 
sary and just to transfer the property to the new trustees ; which 
order and decree shall be filed in the office of such clerk of the court 
as the justice may direct. 



1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 



Equity juris- 
diction of 
supreme 
judicial court. 
1857, 178, § 5. 
G. S. 63, § 1-28. 
P. S. 112, § 70. 
127 Mass. 43. 
171 Mass. 244. 



Section 70. The supreme judicial court shall have jurisdiction 
in equity of all cases arising under the provisions of the preceding 
two sections, and of all questions arising out of railroad mortgages, 
and may summarily remove a trustee under a railroad mortgage, 
whether he is in possession of the railroad or not, and appoint a 
new trustee in his stead. 



1 

2 
3 
4 
5 
6 



Mortgage, etc., 
ot road to 
common- 
wealth. 
Terms. 
1838, 99, § 4. 
G. S. 63, § 129. 
P. S. 112, § 71. 



Section 71. If a railroad corporation is required to convey its 1 

road, franchise and property in pledge or mortgage to the common- 2 

wealth to secure a loan or debt owing or to become due from it 3 

to the commonwealth, the conveyance shall by its terms be of the 4 

road, franchise and property of the corporation as the same exist 5 

at the time of the execution of such conveyance, whether the cor- 6 

poration has acquired a full title to the land upon which its road is 7 

authorized to be made or not, or whether its road is completed or 8 

not ; and the conveyance shall be in full force without a record 9 

thereof. 10 



— what prop- 
erty bound by. 
1838, 99, § 5. 
G. S. 63, § 130. 
P. S. 112, § 72. 



Section 72. The conveyance shall, as against claims or encum- 1 

brances to which the road, franchise or property may be thereafter 2 

subjected, operate to cover and bind land included within the loca- 3 

tion of the road, the title to which or the easement upon which shall 4 

be thereafter acquired, and additions thereafter made to the road 5 

by labor, materials or otherwise, and land thereafter purchased and 6 

appropriated for depots for the road and buildings or fixtures placed 7 

thereon, and also engines, cars or other apparatus placed upon the 8 

road or procured therefor, as fully as if the road had been completed 9 

and all said property had been acquired and owned by the corpora- 10 

tion at the time of the execution of the conveyance ; but it shall not 11 

include or affect personal property which may have been sold by the 12 



Chap. 111.] railroad corporations and railroads. 995 

13 corporation to a bona fide purchaser before the commonwealth took 

14 possession thereof under the conveyance. 

1 Section 73. The treasurer and receiver general shall forthwith Mortgage, etc., 

2 upon the delivery of all such bonds and mortgages cause them to W^o 600 

3 be recorded in the registry of deeds in each county and district p.' I' Ss»Vro.' 

4 through which the road conve} r ed thereby may pass. 

1 Section 74. A purchaser of a railroad at a sale under a valid ^fserunl 1 ?' 

2 foreclosure of a legal mortgage thereof and his successors in title foreclosure. 

3 shall be subject to all and the same duties, liabilities and restrictions, m Mass. 244. 

4 and have all and the same powers and rights, relative to the con- 

5 struction, maintenance and operation of said railroad which the 

6 mortgagor was subject to and had at the time of said sale. 

1 Section 75. A contract for the sale of railroad or street railway conditional 

2 rolling stock may stipulate that the title to the property sold or Itock/ rolllng 

3 contracted to be sold shall not vest in the purchaser until the pur- 1894> 326, §§ *• *• 

4 chase price is fully paid, or that the vendor shall have and retain a 

5 lien thereon for the unpaid purchase money although possession 

6 thereof may be delivered immediately or at any subsequent time, 

7 and a contract for the leasing or hiring of such property may stipu- 

8 late for a conditional sale thereof at the termination of such con- 

9 tract, and that the rentals or amounts to be received thereunder 

10 may, as paid, be applied and treated as purchase money, and that 

1 1 the title to the property shall not vest in the lessee or bailee until 

12 the purchase price shall have been paid in full and until the terms 

13 of the contract shall have been fully performed, notwithstanding de- 

14 livery to and possession by such lessee or bailee. No such contract 

15 shall be valid as against any subsequent attaching creditor or any 

16 subsequent bona fide purchaser for value and without notice unless 

17 it is in writing executed by the parties and duly acknowledged by 

18 the vendee, lessee or bailee before a magistrate authorized to take 

19 acknowledgments of deeds, and in the same manner as deeds are 

20 acknowledged, and recorded in the office of the secretary of the 

21 commonwealth ; nor unless each locomotive, engine or car so sold, 

22 leased or hired, or contracted to be sold, leased or hired as afore- 

23 said, shall have the name of the vendor, lessor or bailor plainly 

24 marked on each side thereof, followed by the word " owner", " les- 

25 sor" or "bailor", as the case may be. The provisions of chapter 

26 one hundred and ninety-eight shall not apply to such contracts. 



fees. 



1 Section 76. A contract authorized by the preceding section rcec°rd^con 

2 shall be recorded by the secretary of the commonwealth in a book im,'m,§2, 

3 to be kept for that purpose, and upon payment in full of the pur- 

4 chase money and the performance of the terms and conditions stipu- 

5 lated in such contract, a declaration in writing thereof may be made 

6 by the vendor, lessor or bailor, or his assignee on the margin of the 

7 record of the contract, duly attested, or it may be made by a sepa- 

8 rate instrument, to be acknowledged by the vendor, lessor or bailor, 

9 or his assignee, and recorded as aforesaid. A fee of five dollars 

10 shall be paid to the secretary of the commonwealth for recording 

11 such contract or declaration, and a fee of one dollar for noting such 

12 declaration on the margin of the record. 



996 



RAILROAD CORPORATIONS AND RAILROADS. [CHAP. 111. 



Taking stock 
or bonds in 
other corpora- 
tions. 

1868, 347, § 1. 
1872, 53, §17; 
180, § 2. 
1874, 372, § 53. 
P. S. 112, § 74. 



TAKING STOCK, ETC., OF OTHER CORPORATIONS. 

Section 77. No railroad corporation, unless authorized by the 1 

general court or by the provisions of the following five sections, shall 2 

directly or indirectly subscribe for, take or hold the stock or bonds 3 

of or guarantee the bonds or dividends of a,ny other corporation ; 4 

and the amount of the bonds of one or more other corporations 5 

subscribed for and held by a railroad corporation, or guaranteed by 6 

it conformably to special authority of the general court or the au- 7 

thority given in said sections, with the amount of its own bonds 8 

issued in conformity with sections sixty-three and sixty-four, shall 9 

not exceed at any time the amount of its capital stock actually 10 

paid in cash. 11 



Taking stock 
in a telegraph 
company. 
1849, 93, § 8. 
G. S. 63, § 12. 
1874, 372, § 54. 
P. S. 112, § 75. 



Section 78. A railroad corporation may hold stock in a tele- 1 

graph company whose telegraph connects two or more places on the 2 

railroad to an amount not exceeding two hundred dollars for each 3 

mile of railroad so connected. 4 



Guaranty of 
bonds in steam- 
ehip com- 
panies. 
1868, 347, § 2. 
1874, 372, § 55. 
P. S. 112, §76. 



Section 79. A railroad corporation may guarantee, to an amount 1 

not exceeding five per cent of its capital stock, the bonds of any 2 

corporation incorporated by the general court for the purpose of 3 

carrying freight, passengers and mails between any port of this 4 

commonwealth and Europe ; or, upon adequate security therefor, 5 

may issue its own bonds to the same amount, conformably to the 6 

provisions of section sixty-three. 7 



portion may Section 80. A railroad corporation may become an associate 1 

become asso- under the provisions of chapter one hundred and ten in the forma- 2 

ciate in grain x x _ 

elevator cor- tion oi a corporation tor the purpose ot erecting and operating a 3 

poration . ... ° * 

1874, 384,'§§ i, 2. grain elevator within this commonwealth, and may take stock in any 4 

78. ' ' ' ' elevator corporation so organized and at all meetings and in all 5 

transactions of such elevator corporation, the president of the rail- 6 

road corporation, or in his absence any officer appointed by its board 7 

of directors, may represent, act and vote in the name of such rail- 8 

road corporation. 9 



roads e may g Section 81. If two corporations own and operate connecting 

guarantee each railroads wholly constructed, either corporation may guarantee the 

other's bonds. J . ' \ 1 j 

1870, 325, § 4. bonds ot the other, upon such terms and to such an extent as may 
be authorized at a meeting called for the purpose, if the bonds so 
guaranteed do not exceed the amount of the capital stock of the 
corporation by which they were issued which has been actually paid 
in cash by its stockholders, and if they are in all other respects 
issued in conformity with law. 



1871, 384 
1874, 372, § 56. 
P. S. 112, § 79. 



Railroad cor- 
porations may 
aid in con- 
struction of 
branches, etc. 
1874, 351, §4; 
372, § 57. 
P. S. 112, § 80. 
171 Mass. 239. 



Section 82. A railroad corporation may aid in the construction 
of any branch or connecting railroad within the limits of this com- 
monwealth, whether connecting by a railroad or steamboat line, by 
subscribing for shares of stock in such corporation, or by taking its 
notes or bonds to be secured by mortgage or otherwise, and may 
vote on all shares of stock so subscribed for and held ; but no corpo- 
ration shall so subscribe to an amount in excess of two per cent of 
its paid-up capital stock, or mortgage its property to secure the 



1 

2 
3 
4 
5 
6 
7 
8 

1 

2 
3 
4 
5 
6 
7 
8 



Chap. 111.] railroad corporations and railroads. 997 

9 loans or subscriptions made by any other corporation under the 

10 provisions of this section, except by a vote of a majority in interest 

11 of the stockholders at a meeting called for that purpose. 

BOOKS AND RETURNS. 

1 Section 83. Eailroad corporations shall keep their books and Books, ac- 

. . „ r .-I, counts and an- 

2 accounts in a unitorm manner, upon the system prescribed by the nual returns. 

3 board, and shall at all times submit their books to the inspection of i837, - 226, §5.* 

4 the board or of any committee of the general court which may ilii, it'. § 2 * 

5 be authorized to inspect them; and the directors shall annually, lis?; 102; | § i!' *' 

6 on or before the first Wednesday of September, transmit to the i^;tl; 

7 board a report of their doings for the year ending on the thirtieth ilJT'lio 8 ™ 

8 day of June preceding, which shall be called the annual return and ^|VAf- 

9 which shall be sworn to by them and by the treasurer and the 134. ' 

10 chief accounting officer of the corporation. Such report shall state i863| 224,' § 1.' 

11 whether any fatal accident or serious injury has occurred to a pas- is69!«y ' 

12 senger or other person upon the road during the year, and, if so, jljl ' 307 ' 51 ' 

13 the cause of such accident or injury and the circumstances under J|^> ^ § 52> 

14 which it occurred ; shall set forth copies of all contracts or leases J||*> |?|> f^. 

15 made with other railroad corporations during the year and specify u' ' ' 

16 the receipts and expenditures under the same ; and shall include a i889,'328,'§i. ' 

17 detailed statement of all particulars relative to the railroad, its busi- 

18 ness, receipts and expenditures during the year, in such form as 

19 shall from time to time be prescribed by the board under the pro- 

20 visions of section twenty-six. The books of each corporation shall 

21 be so kept that returns may be made in exact conformity with the 

22 form so prescribed ; and the accounts shall be closed on the thirtieth 

23 day of June in each year, so that a balance sheet of that date can 

24 be taken therefrom and included in the return. 

1 Section 84. At the time of making such annual return, each u^and^e 8 " 

2 railroad corporation shall pay to the treasurer and receiver general ^ e [ 3 f^ e 3 raL 

3 twenty dollars, which shall be applied to the payment of the expense mm! w£ § ^ 

4 of the printing and binding of the returns of the several railroad r.'s. 112', § 82/ 

5 corporations. 

1 Section 85. Every railroad corporation which operates a rail- & 8 terlyre - 

2 road within this commonwealth shall, within fifty days after the ex- ig». *}• 

3 piration of each quarter of the calendar year, transmit to the board 

4 a quarterly statement of its business and financial condition, in such 

5 form and with such detail as the board may require, which shall at 

6 reasonable times be open to public inspection. A railroad corpora- 

7 tion which neglects to comply with the provisions of this section shall 

8 forfeit fifty dollars for each day during which such neglect continues. 

1 Section 86. Every railroad corporation shall, during the con- Lessee ofroad 

2 tinuance of any lease which it has taken of the railroad of another tarasreqniwd 

3 corporation, make all the returns required of the lessor, and pay the ise*. iot.'s »■ 

4 fee required by section eighty-four ; and during the continuance of 187 v m \ s 173. 

5 such lease, the lessor shall not be required to make such returns P.s.ua,S88. 

6 or payment, if, when requested by the lessee, the lessor furnishes 

7 all the information in its possession needed to make such returns ; 

8 but if a railroad in this commonwealth is leased to a lessee in 



998 



RAILROAD CORPORATIONS AND RAILROADS. [CHAP. 111. 



another state, the lessors in this commonwealth shall make the 9 
annual return and payment. 10 



Penalty for 
neglect to 
make annual 
return. 
R. S. 39, § 82. 
1851, 10-2, § 2. 
1857, 40, § 6. 
G. S. 63, § 135. 

1863, 224, Vi. 

1864, 167, § 2. 
1874, 372, § 174. 
P. S. 112, § 84. 



Section 87. Every railroad corporation which neglects to make 1 

the annual return within the time prescribed in section eighty- 2 

three, or to make the payment prescribed in section eighty-four, or 3 

to supply defects and omissions within fifteen days, when pointed 4 

out by the board as provided in section twenty-six, shall forfeit, in 5 

each case, fifty dollars for each day during which such neglect con- 6 

tinues : and if a corporation unreasonably refuses or neglects to make 7 

a report or return as prescribed by section eighty-three, it shall 8 

forfeit for every such refusal or neglect not more than five thousand 9 

dollars. 10 

LOCATION AND CONSTRUCTION OF RAILROAD. 

Conditions Precedent. 

Prerequisites Section 88. A railroad corporation shall not locate or begin to 1 

railroad. construct its road or a branch or extension thereof, or enter upon 2 

g. s. 63,'§ 7.' and use land or other property, except for making surveys, until a 3 

18781 215; || \\ I sworn estimate of the total cost of constructing the same, prepared 4 

p 8 s'.ii2,§§85t' by ^s chief engineer, has been submitted to the board and approved 5 

86, 136. by jt . nor un til the board is satisfied that an amount of the capital 6 

stock of the corporation equal to at least fifty per cent of such 7 

estimated cost has been actually subscribed by responsible parties 8 

without any condition which invalidates the subscription, and that 9 

twenty per cent of the par value of each share has been actually paid 10 

in ; and that the authority and consent required by section ninety- 11 

eight have been obtained ; nor until the clerk of the board, upon its 12 

order, has filed a certificate with the secretary of the commonwealth 13 

that the provisions of this section have been observed ; nor until 14 

the corporation has paid to the secretary a fee of fifty dollars for 15 

filing such certificate. The supreme judicial court shall have juris- 16 

diction in equity if the board certifies a location before ascertaining 17 

that the authority and consent required by section ninety-eight have 18 

been obtained. The certificate of a master in chancery or a justice 19 

of a court of record for the county in which a subscriber resides 20 

that he owns property in his own name equal in value, above all 21 

encumbrances, to the amount of his subscription shall be conclusive 22 

evidence of his responsibility. If the board refuses its approval to 23 

an estimate or a subscription list so submitted, it shall in writing 24 

state its reasons therefor in detail at the time and shall include them 25 

in its next annual report. 26 

Section 89. No railroad or part thereof which is operated by 1 

steam power shall hereafter be located or constructed within three 2 

miles of the state house without the previous consent in writing of 3 

the board and of the mayor and aldermen of any city or of the 4 

selectmen of any town in which the location is sought. 5 



Location not 
to be within 
three miles of 
state house. 
1882, 265, § 4. 



Location and 
construction. 
R. S. 39, § 54. 
1853, 351, § 1. 
G. S. 63, § 17 . 



Laying out Railroad. 

Section 90. A railroad corporation may lay out its road not 1 

more than five rods wide ; and for the purpose of cuttings or em- 2 

bankments or of procuring stone and gravel and for depot and sta- 3 



Chap. 111.] railroad corporations and railroads. 999 

4 tion purposes may purchase or otherwise take, in the manner mm, 372, § 58. 

5 hereinafter provided, as much land as may be necessary for the g^tsfL? 88 '" 

6 proper construction and security of its road. u Gray, 93, 553. tr^Si 

109 Mass. 527. 118 Mass. 391. 134 Mass. 14. 161 Mass. 387. 4 Grav' toi 

113 Mass. 277. 124 Mass. 368. 141 Mass. 481. 167 Mass. 369. w«Wi»«. 

1 Section 91. The corporation shall, Avithin one year after the ramp of the 

2 filing of the certificate of the clerk of the board with the secretary Rs^'s 75. 

3 of the commonwealth as provided in section eighty-eight, file with %-f'ifi V5I 

4 the commissioners of each county through which the proposed road Hif ' If f ' |A 4 

5 may pass the location of the road as laid out, defining the courses, p. s'. 112, §§ 89,' 

6 distances and boundaries of such portion of it as lies within each 2 Gray, sso. 

7 county, certified by the clerk of the board, and in such form and 127 Mast 57I 

8 with such other particulars as may be required by the rules of the ]i\ Mass! If 1 ' 

9 board; and until such location has been duly filed, the corporation ue MaBS - 194# 

10 shall not enter upon or use any land or other property, except for 

11 making surveys. The supreme judicial court shall have jurisdiction 

12 in equity of any violation of the provisions of this section by any 

13 entry upon or use of lands. 

1 Section 92. The corporation may, within one year after it has Location of 

2 purchased or acquired land for railroad purposes, file with the com- Faxfd hased 

3 missioners of each county in which such land is situated a location 1895> 356, 

4 thereof, defining the courses, distances and boundaries of such land 

5 and certified by the clerk of the board in such form and with such 

6 other particulars as the rules of the board may require. 

1 Section 93. A railroad corporation, having taken land for its Direction of 

2 road, may vary the direction of the road in the city or town in varied!* 7 e 

3 which such land is situated ; but it shall not locate any part thereof r 33 !.^'^. 

4 outside the limits of the route fixed under the provisions of sections §74,'3?i, §59. 

5 forty-two and forty-three, without the consent in writing of the fgraylko 90 ' 

6 mayor and aldermen or selectmen, if it was fixed under the provi- 109 Mass. 528. 

7 sions of section forty-two, or of the board, if it was fixed under the 

8 provisions of section forty-three. The corporation shall, before the 

9 expiration of the time required for completing the road, file with 

10 the county commissioners the location of the different parts where 

11 such variations have been made ; but the time for completing the 

12 road shall not be extended in consequence of such variations. 

1 Section 94. A railroad corporation, with the approval in writing improvement 

2 of the board obtained upon petition and after due notice to all persons Sot So™" 

3 interested, may, for the purpose of improving the alignment of its 161MasB -< 

4 road, change its location, subject to the provisions of this chapter 

5 relative to the fixing of the route of railroads, the laying out of the 

6 same and the taking of land and the payment of damages therefor. 

1 Section 95. Ifa railroad corporation, for the purpose of making Limits of jand 

2 or securing its road or for depot or station purposes, requires land |?route,how 

3 or materials outside the limits of the route fixed, or requires addi- wj^ 148,5 8. 

4 tional land for one or more new tracks adjacent to other land occu- J^* ${ffi 

5 pied by such corporation by a track or tracks already in use, and is &fft\$ 

6 unable to obtain it by agreement with the owner, it may apply to «£!«& 

7 the county commissioners, who, after notice to the owner, may pre- iyf.iMi,s9i. 

8 scribe the limits within which it may be taken without his permis- 119 Mass. sie. 



1000 



RAILROAD CORPORATIONS AND RAILROADS. [CHAP. 111. 



141 Mass. 481. 
161 Mass. 387. 



sion in the manner hereinafter provided ; and the corporation shall, 9 

within one year after the decree, file with the commissioners of each 10 

county in which the land is situated, a location thereof, duly certified 11 

by the clerk of the board, defining the courses, distances and boun- 12 

daries thereof, in such form and with such other particulars as the 13 

rules of the board may require. If highways, buildings, parks or 14 

cemeteries are to be taken, the consent of the city or town in 15 

which the land is to be taken shall first be obtained. 16 



Land outside 
limit taxable. 
1853, 351, § 3. 
G. S. 63, § 20. 
1874, 372, § 62. 



Section 96. Land outside the limits of the route fixed as afore- 1 
said, which is taken or purchased for railroad, depot or station pur- 2 
poses shall not be exempt from taxation. 3 



P. S. 112, § 92. 



1895, 356. 



4 Met. 564. 



8 Cush. 237 



Rules as to 
form, etc., of 
records, etc. 
1878, 135, § 2. 
P. S. 112, § 93. 



Section 97. The board shall, from time to time, prescribe rules 1 

relative to the form in which all records of locations of railroads 2 

shall be made, the particulars to be contained therein and the man- 3 

ner in which such records shall be uniformly kept for preservation 4 

and convenient reference in the offices of the clerks of the several 5 

counties. No such record shall be filed until the clerk of the board 6 

certifies thereon that it has been prepared in conformity with the 7 

rules of the board. 8 



136. 



Taking Land and Damages therefor. 

fo"tal?nsr lte8 Section 98. No railroad corporation shall take, by purchase or 
land otherwise, or enter upon or use, except for making surveys, any 

p.^s. ii2, §§ 94,' land or other property for the construction of its road or of any 
branch or extension thereof until the county commissioners of the 
county in which such land or other property is situated, after hear- 
ing the parties, have determined the manner in which the railroad 
shall cross the highways and other ways within such county, nor 
until it has obtained from the board the consent required by sections 
one hundred and twenty-four and one hundred and twenty-eight in 
all cases in which the county commissioners adjudge that public 
necessity requires the crossing at the same level ; and notice of such 
hearing shall be given by publication for three successive weeks in 
one or more newspapers published in such county, the last publica- 
tion to be at least seven days before the hearing. The supreme 
judicial court shall have jurisdiction in equity of violations of the 
provisions of this section. 



1 

2 

3 

4 

5 

6 

7 

8' 

9 

10 

11 

12 

13 

14 

15 

16 



Taking land, 
and damages 
therefor. 

1833, 187, § 1. 

1834, 137, § 1. 

1835, 148, § 3. 
P. S. 39, §§ 55, 
5K, 63, 76. 
1849, 153. 

1853, 351, § 1. 

1854, 448, § 33. 
G. S. 63, §§ 19, 
21, 36, 39. 
1874, 372, § 63. 
P. S. 112, § 95. 
23 Pick. 376. 

3 Met. 380. 

3 Cush. 107. 

4 Cush. 291, 467. 



Section 99. If a railroad corporation is not able to obtain by 1 

agreement with the owner the land or materials necessary for its 2 

purposes as described in sections ninety, ninety-one, ninety-three 3 

and ninety-five, it may take the same. It shall pay all damages 4 

caused by laying out, making and maintaining its road, or by taking 5 

land or materials therefor ; and such damages, upon the application 6 

of either party, shall be estimated by the county commissioners in 7 

the manner provided with reference to the laying out of highways ; 8 

and if it is intended to take land or materials, application may be 9 

made before the actual taking and appropriation thereof. 10 



10 Cush. 385. 

11 Cush. 506. 

12 Cush. 224, 605. 
2 Gray, 1. 

4 Gray, 301. 



14 Gray, 553. 
7 Allen, 313. 
14 Allen, 57. 
103 Mass. 1, 10. 
105 Mass. 303. 



107 Mass. 352. 
109 Mass. 527. 
113 Mass. 52, 277. 
121 Mass. 124. 
124 Mass. 118. 



125 Mass. 1. 
127 Mass. 571. 
141 Mass. 174. 
144 Mass. 139. 
152 Mass. 506. 



Chap. 111.] railroad corporations and railroads. 1001 

1 Section 100. No application to the county commissioners to Limitation of 

2 estimate damages for land or other property taken shall, except as is i^ St^ 1 ! 8 " 

3 provided in sections one hundred and fourteen to one hundred and f; §'• ^'| ;j|- 

4 sixteen, inclusive, be sustained, unless it is made within three years ji&gjf' - 

5 after the filing of the location. 

1874, 372, § 64. P. S. 112, § 96. 7 Met. 78. 7 Gray, 389, 450. 

1 Section 101. Upon application to the county commissioners by securities for 

2 either party for an estimate of damages, they shall, if requested by coTts! scs and 

3 the owner, require the corporation to give security to their satisfac- iH; \fg' t | f ; 

4 tion for the payment of all damages and costs which may be awarded ^fl 9 ^ 61- 

5 by them or by a jury for the land or other property taken ; and if, g-| '•&• § 3 |- 

6 upon petition of the owner and notice to the adverse party, any p. s. 112, § 97. 

• 127 Mass 50 

7 security taken appears to them to have become insufficient, they shall 153 Mass! 565. 

8 require the corporation to give further security to their satisfaction. 

1 Section 102. After the county commissioners have made their Tender to 

2 estimate, the corporation may tender to the owner of the land or 1833, 187, §4. 

T? ft QO £ ft*) 

3 other property the amount of damages estimated, in full satisfaction g. s. 63, § 35! 

4 thereof, with costs. pJl.iil,!!!'. 

1 Section 103. Either party, if dissatisfied with the estimate of the Application 

2 county commissioners, may, at any time within one year after it has i833?i87?§ 1. 

3 been completed and returned, apply for a jury to assess the damages. itfs.¥^§§ 57, 

4 If no such application is made, the commissioners, after the expira- i^ 1)125j§3 . 

5 tion of said year, may issue warrants of distress to compel the pay- ^ ef.'l 22, 

6 ment of the damages, with interest and costs. 37. ' 

o ' lb 1 A, 2bl. 

1874,372,5 67. 21 Pick. 258. 119 Mass. 485. 128 Mass. 347. 

P. S. 112, § 99. 1 Gray, 72. 125 Mass. 483. 139 Mass. 173. 

1 Section 104. When either party applies for a jury to assess the Proceedings.^ 

2 damages, the proceedings shall be the same as are provided for the r. s. 39,'§§ 56, ' 

3 recovery of damages in the laying out of highways ; but upon such i S3 6, 278, § 2. 

4 application, the prevailing party shall recover costs. If the owner iHg;!!: 83, 

5 has refused the tender mentioned in section one hundred and two, g.s.63,§§21, 

6 he shall pay all costs caused by the application and arising after g^^Mf^ 

7 the tender unless, upon the final hearing, he recovers a greater isMct. .ws. 

8 amount of damages than the amount tendered. If the corporation scusIuJl^ 

9 applied for the jury, and upon the final hearing the damages esti- 135 Maes". sm 

10 mated by the county commissioners are not reduced, it shall pay all 139 

11 costs caused by the application. 

1 Section 105. If the corporation does not pay the amount of gg^JS^we. 

2 damages awarded by the jury within thirty days after such aAvard, g&fM 8 - 

3 a warrant of distress or execution may issue to compel the payment *f «y» 

4 thereof with costs and interest. m Mass. 50. p. sf. 1 12", § loi. 



1 Section 106. After a railroad corporation has taken land or £■»«£•* 

2 other property in the manner hereinbefore authorized, it shall, before ggoi^. ? | 

3 proceeding to construct the road, furnish a plan of the land to the zj.wjif 

4 owner, and, upon request of the owner or occupant, shall fence it G.d.«j.'fM. 

5 and, upon demand made by the owner of such other property within ^.StiA. 

6 three years after the taking thereof, shall, within thirty days, furnish Jg^SJ; 

7 him with a plan or description thereof in writing. 



1002 



RAILROAD CORPORATIONS AND RAILROADS. [CHAP. 111. 



Right to use 
of land sus- 
pended, when. 
1833, 187, §§ 2, 3. 
R. S. 39, §§ 60, 
61. 

1854, 2. 

1855, 9, §§ 1-3. 
G. S. 63, §§ 32- 
34,45. 

1874, 372, §§ 65, 
67, 69, 70, 72. 
P. S. 112, §§ 97, 
99, 101, 102, 104. 
127 Mass. 50. 



Section 107. All the right and authority of a railroad corpora- 1 

tion to enter upon and use land or property taken by it, except for 2 

making surveys, shall be suspended until it gives the security re- 3 

quired by section one hundred and one ; or, if for thirty days after 4 

a warrant has issued under the provisions of section one hundred 5 

and three, it neglects to pay the same, until payment thereof; or 6 

until it satisfies a warrant or execution issued under the provisions 7 

of section one hundred and five ; or until it delivers a description 8 

or plan as required by section one hundred and six ; and during the 9 

time in which its right to enter upon or use land or other property 10 

is so suspended, the supreme judicial court, upon petition of an 11 

owner of the land or other property, shall have jurisdiction in equity 12 

to prohibit and restrain the corporation from entering upon or using 13 

such land or property. 14 



Change of 
location by 
county com- 
missioners, 
when. 

1872, 53, §13; 
180, § 3. 
1874, 372, § 71. 
P. S. 112, § 103. 



Section 108. An owner of land who is aggrieved by the loca- 1 

tion of a railroad crossing his land in such manner as to be of 2 

grievous damage, which could be avoided without serious injury to 3 

others, may, within thirty days after receiving the plan of his land 4 

as provided in section one hundred and six, petition the commis- 5 

sioners of the county in which the land lies, who shall give due 6 

notice land hear the parties, either at their regular meeting or at a 7 

meeting called by their chairman for the purpose. If it appears 8 

that such location will greatly and unnecessarily damage the peti- 9 

tioner and that it can be so changed as to entirely or partially avoid 10 

such damage without material detriment to the line of the railroad 11 

and without great injury to other parties, the commissioners shall 12 

change such location accordingly. They shall give to each party a 13 

certificate of their determination within sixty days after receiving 14 

the petition. The compensation of the commissioners, not exceed- 15 

ing five dollars each a day and their necessary expenses, which shall 16 

be retained to their own use, and the costs of the petition, shall be 17 

paid by the corporation ; but if the commissioners decide that the 18 

petition was frivolous, such compensation, expenses and costs shall 19 

be paid by the petitioner. 20 



Jurisdiction of 
commissioners 
over land in 
contiguous 
counties. 
1853, 5, §§ 1, 2. 
G. S. 63, § 23. 
1874, 372, § 73. 
P. S. 112, § 105. 



Section 109. If land which is owned by one person lies con- 
tiguously in different counties, an application for damages under the 
provisions of section ninety-nine may be made by the owner of the 
land to the commissioners of any of such counties ; and the com- 
missioners of the county to whom application is first made shall 
have exclusive jurisdiction, with like powers and duties as are set 
forth in said section and section one hundred and eighteen ; and 
either party may apply for a jury as provided in section one hun- 
dred and three, and such jury shall be from the same county as the 
commissioners, and shall estimate such damages as though the land 
lay entirely in one county. 



1 

2 
3 
4 
5 
6 
7 
8 
9 
10 
11 



touttSmay^e. Section 110. If land or other property of a person who is 
R a | e iatW es ' un( ^ er guardianship or if land which is held in trust is taken for the 
g!_s.' 63,' § 24.' use of a railroad, the guardian or trustee may release all damages, 
p. s. ii2, § 106. in like manner as if the land or other property were held in his own 
right. 



1 
2 
3 
4 
5 



Chap. 111.] railroad corporations and railroads. 1003 

1 Section 111. If a tenant for life or for years and the remainder- Assessment of 

2 man or reversioner claim damages for the laying out or alteration df«K?i f n- r 

3 of a railroad or if it appears that the real estate taken or affected is f^f^ t §§ 2 2 

4 encumbered by a contingent remainder, executory devise or power g.s'. 63,'§25.'" 

5 of appointment, the damages shall be assessed and paid over and 1875 > ml §§ M- 

6 disposed of in the manner provided in sections seventeen, eighteen, 

7 nineteen and twenty-six of chapter forty-eight relative to damages 

8 assessed in like cases in laying out highways. 

1 Section 112. If the land is mortgaged, both the mortgagor - when lands 

2 and the mortgagee, in addition to their rights under the mortgage, i855"^ f §§ g i^ d ' 

3 shall have the same powers, rights and privileges, and be subject to g\ 5 s.63 §26 

4 the same liabilities and duties, as are provided in this chapter for p 7 f nf t^L 

5 land owners in cases of damages arising under the provisions of e Gray, 470. 

6 section ninety-nine ; and all petitions for the estimation of such 

7 damages shall state all mortgages which are known by the petitioner 

8 to exist upon the premises. Mortgagors and mortgagees may join 

9 in any such petition, and the tribunal to which it is presented shall 
10 order the petitioner to give notice thereof to all parties who are hi- 
ll terested as mortgagors or mortgagees, by serving on each of them, 

12 fourteen days at least before the time of hearing, an attested copy 

13 thereof and of the order thereon, that they may become parties to 

14 the proceedings. 



1 Section 113. If mortgagors or mortgagees commence or be- Apportion- 

2 come parties to such proceedings, entire damages shall, upon final ™£e S .° am ' 

3 judgment, be assessed for the property taken, and such portion g~!.68,'/!£"* 

4 thereof shall be ordered to be paid to every mortgagee who is a p^l'.iilllog. 

5 party in the order of his mortgage, as is equal to the amount then 5Gray,47o. 

6 unpaid thereon, and the balance to the mortgagor; and separate 

7 judgment shall be entered accordingly for each mortgagee, who 

8 shall hold his judgment in trust, first, with any proceeds realized 

9 thereon, to satisfy his mortgage debt, and, after such debt is in any 

10 way satisfied, to assign the judgment or pay over any balance of 

11 proceeds to the mortgagor or other person entitled thereto. 

1 Section 114. If the time for locating or constructing a rail- ggfSStoSJ; 

2 road shall be extended by statute, all unsettled claims against the ^ n n ^ revive 

3 corporation for damages to land shall be revived, and the claimants JgJJg. w 

4 for such damages may apply to the county commissioners, or for a r. s. 112, § iio. 

5 jury, if the estimate of the commissioners has been completed and 

6 returned, within one year after the passage of such statute. The 

7 provisions of this section shall not include cases in which, by rea- 

8 son of a defect in the original location of a road already constructed, 

9 a new location is rendered necessary. 



1 Section 115. If a suit is brought in which the right of the cor- Apportion 

2 poration to lay out and construct its road on a particular location is withtaone 

3 drawn in question, applications to the county commissioners for the S^naata* 

4 estimation of damages caused by the taking of land or property gjffi. 01 

5 within such location maybe made within one year after the final gf|^.«^ 

6 determination of such suit upon the merits, if such suit is brought ^s.eMsfc 

7 within one year after the time of such taking, or is brought for the f-Agty™ 

8 purpose of trying the same right which was drawn in question in an m Maw, m 



1004 



RAILROAD CORPORATIONS AND RAILROADS. [CHAP. 111. 



earlier suit which was commenced within one year after the time of 9 

taking and which failed for want of jurisdiction, defect of form or 10 

other like cause which was not decisive of the merits of the con- 11 

troversy, and is brought within six months after the determination 12 

of such former suit. 13 



New applica- 
tion if proceed- 
ings are 
quashed. 
1847, 181, § 2. 
G. S. 63, § 31. 
1874, 372, § 80. 
P. S. 112, § 112. 
125 Mass. 484. 



Section 116. If a person applies for an estimate of his damages 1 

within the time limited by law, or applies for a jury to assess the 2 

damages, or is a party to such application by another person for a 3 

jury, and the petition or other proceeding is quashed, abated or 4 

otherwise avoided or defeated for any inaccuracy, irregularity or 5 

matter of form, or if, after verdict for such applicant or other party, 6 

the judgment is arrested or reversed on a writ of error, or the pro- 7 

ceedings are quashed on certiorari, such applicant, petitioner or 8 

other party may commence such proceedings anew at any time 9 

within one year after such abatement, reversal or other determina- 10 

tion. 11 



Damages for 
elevated rail- 
ways. 
1890, 368, § 2. 



Construction, 
etc., of em- 
bankments 
may be 
ordered. 
1841, 125, §§ 1, 3. 
G. S. 63, § 40. 
1874, 372, § 81. 
P. S. 112, $ 113. 
154 Mass. '314. 



Section 117. The building or use of a railway in any public 
way in the manner described in section one hundred and ninety- 
nine shall create a new servitude, for which any person who is 
injured may recover damages in the manner provided in the preced- 
ing nineteen sections and all the provisions of this chapter relative to 
security for damages shall apply thereto. For the purpose of esti- 
mating such damages, the abutters on such ways shall be considered 
to be the owners of the fee thereof to the centre of such way ; and 
the bonds of such railwaj^s provided for in this chapter shall be 
approved by a justice of the superior court instead of the county 
commissioners. 



At the time of estimating damages to land owners 



Embankments, Fences, etc 

Section 118 
under the provisions of section ninety-nine, the county commis 
sioners shall in addition thereto order the corporation to construct 
and maintain such embankments, culverts, walls, fences or other 
structures as they judge reasonable for the security and benefit of 
such owners, and shall prescribe the time and manner of making or 
repairing them, and it shall not be competent for a jury to reverse 
such order. 



1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 



1 

2 
3 
4 

5 
6 

7 
8 



Enforcement 
of order. 
1841, 125, § 2. 
G. S. 63, § 41. 
1874, 372, § 82. 
P. S. 112, § 114. 
6 Cush. 420. 
1 Gray, 614. 



Section 119. If the corporation neglects to comply with such 1 

order, the supreme judicial court, upon application of the land 2 

owner or his assigns who is interested in its execution, shall have 3 

jurisdiction in equity to enforce the specific performance thereof. 4 

Or if the corporation, for more than forty-eight hours after notice 5 

of such neglect, given in writing to the president or superintendent, 6 

fails to commence the work required to be done, or thereafter un- 7 

reasonably delays to complete it, the person so interested may, in 8 

an action of tort against the corporation, recover double the 9 

damages sustained by him by reason of the neglect. 10 



Section 120. 



Fences. 

1846, 271, §§ 3, 4. 

tain suitable fences, with convenient bars, gates or openings therein, 



Every railroad corporation shall erect and main- 1 
w- upon both sides of the entire length ot its railroad, except at the 6 



Chap. 111.] railroad corporations and railroads. 1005 

4 crossings of a public way or in places where the convenient use of 18 ?*> 372, § 84. 

5 the road would be thereby obstructed, and except at places where, p. s'. 112', § 115. 

6 and so long as, it is specially exempted from the duty of so doing loc'ush.' 12. 

7 by the board. Such an exemption granted prior to the first day of lAiufn,'^ 05 ' 

8 August in the year eighteen hundred and eighty-two shall not be re- ?02 J Mafs 5 383 

9 voked except upon new proceedings had under the provisions of this {nf jj!p SB ' ]??• 

10 section, notice of which shall be given to the corporation interested, losMassim 

11 and published once in each of three successive weeks in a newspaper 564. 

12 published in each county in which the land is situated. The cor- ill Mast 2I 8 ' 

13 poration shall also construct and maintain sufficient barriers, where 157 mIss! 297! 

14 it is necessary and practicable so to do, to prevent the entrance of 

15 cattle upon the road. A corporation which unreasonably neglects 

16 to comply with the provisions of this and the following section shall, 

17 for every such neglect, forfeit not more than two hundred dollars 

18 for every month during which the neglect continues ; and the 

19 supreme judicial court shall have jurisdiction in equity to compel 

20 the corporation to comply with such provisions, and, upon such 

21 neglect, to restrain and prohibit it from crossing a highway or 

22 town way, or from using any land, until such provisions shall have 

23 been complied with. 

1 Section 121. If a person other than the railroad corporation is cost of fenc- 

2 required by law or contract to erect or maintain fences along a part cofWedfrom 

3 of the line of the railroad, the corporation shall erect such fences llra, ^^?' 

4 or keep them in repair as provided in the preceding section, and S 2 Mass.24. 16i 

5 may recover the reasonable cost thereof in an action of contract 

6 from such person. If he is an owner of land adjoining such line, 

7 the corporation shall also have a lien upon said land for labor 

8 performed and furnished and all materials furnished and used by 

9 it in erecting and repairing such fences, upon such land and for 

10 the costs which may arise in enforcing it ; and it shall be enforced 

11 in the manner provided for enforcing liens in chapter one hundred 

12 and ninety-seven. 

Crossings. 

1 Section 122. If two or more railroad corporations whose separaMonof 

2 tracks cross each other at the same level agree to separate the fn»- s by^gree- 

3 grades, they may apply to the board, which shall thereupon deter- mh'm. 

4 mine when, in what manner and by which corporation said work p - s - m - § m - 

5 and each portion thereof shall be done, and shall apportion all 

6 charges and expenses caused by making such alterations and all 

7 future charges for keeping the necessary structures connected there- 

8 with in repair among said corporations. For said purposes, the 

9 corporations may, under the direction of the board, make all neces- 

10 sary changes in the location, grade and construction of said rail- 

11 roads and, so far as may be necessary, may take additional land 

12 therefor, and may raise, lower or otherwise change any and all 

13 highways and town ways ; and in the exercise of said powers said 

14 corporations, and any person who sustains any damage thereby, 

15 shall have all the rights, privileges and remedies, and be subject to 

16 all the duties, liabilities and restrictions provided by law in the 

17 case of land taken by railroad corporations. The supreme judicial 

18 court shall have jurisdiction in equity to enforce compliance with 

19 all such orders of the board. 



1006 



RAILROAD CORPORATIONS AND RAILROADS. [CHAP. 111. 



Crossings of 
one railroad 
with another, 
or over navi- 
gable waters. 

1872, 53, § 12; 
180, § 3. 

1873, 121, § 4. 
1874,122; 372, 
§85. 

1881, 156. 

P. S. 112, § 118. 

125 Mass. 253. 



Section 123. No railroad shall be constructed across another 1 

railroad at the same level without the consent in writing of the 2 

board, nor across navigable or tide waters without the consent 3 

in writing of the board of harbor and land commissioners, and 4 

in such manner as said boards, respectively, shall prescribe, nor 5 

across any portion of the deep channel of Boston harbor below the 6 

bridges existing on the thirtieth day of March in the year eight- 7 

een hundred and eighty-one, without special legislative authority. 8 

Any littoral proprietor whose access to the sea is obstructed 9 

or interrupted by the location and construction, after said day, 10 

of any railroad across tide water, otherwise than by a bridge with 11 

a suitable draw, may recover all damages caused by such loca- 12 

tion and construction of the corporation whose railroad is so lo- 13 

cated, in the same manner and with the same rights as to security 14 

as are provided by law in relation to damages caused by laying 15 

out and maintaining railroads ; but this provision as to damages 16 

shall not apply to any railroad constructed under the provisions of 17 

chapter two hundred and fifty-two of the acts of the year eighteen 18 

hundred and eighty. Associates for the purpose of constructing a 19 

railroad under the provisions of section thirty-five, or a corporation 20 

which proceeds to construct its road or branch or extension thereof, 21 

shall not take proceedings which involve a new crossing of one 22 

railroad by another at the same level, unless such crossing is first 23 

approved in writing by the board ; and every preliminary approval 24 

of a plan for such crossing shall be subject to revision by the board. 25 

The supreme judicial court shall have jurisdiction in equity, upon 26 

information filed by the attorney general, of violations of the pro- 27 

visions of this section. 28 



Railroad, 
crossing a 
highway, not 
to obstruct 
the same. 
R. S. 39, § 66. 
1846, 271, § 1. 
G. S. 63, §§ 46, 
47. 

1874, 372, § 86. 
1876, 73. 
P. S. 112, § 119. 
14 Gray, 379. 
14 Allen, 444. 



Section 124. A railroad which is laid out across a public way 1 

shall be so constructed as not to obstruct the same ; and, unless 2 

the county commissioners and the board authorize a crossing at 3 

the same level as provided in section one hundred and twenty-eight, 4 

it shall be constructed so as to pass either over or under the way, 5 

as prescribed in 'the following section, and conformably to any 6 

decree which may be made by the county commissioners under the 7 

provisions of section one hundred and twenty-six. 8 



Space under 
bridge regu- 
lated. 

1846, 271, § 1. 
G. S. 63, § 47. 

1874, 372, § 87. 

1875, 219. 

P. S. 112, § 120. 
130 Mass. 361. 
176 Mass. 145. 



Section 125. If the railroad is constructed to pass over the 1 

way, a sufficient space shall be left under the railroad conveniently 2 

to accommodate the travel on the way. If the railroad is constructed 3 

to pass under the way, the railroad corporation shall build such 4 

bridges, with their abutments and suitable approaches thereto, as 5 

will accommodate the travel upon the way ; but no bridge for any 6 

purpose shall be constructed over a railroad at a height less than 7 

eighteen feet above the track of such railroad, except by the consent 8 

in writing of the board. The supreme judicial court shall have ju- 9 

risdiction in equity to enforce compliance with the provisions of 10 

this section. 11 



may 
be raised or 



Section 126. A railroad corporation may raise or lower a 1 

lowered under public way for the purpose of having its road pass over or under 2 

county com- the same ; but before proceeding to cross or to alter or exca- 3 

S3l!T87? r § S 5. vate for the purpose of crossing the way, it shall obtain from the 4 



Chap. 111.] railroad corporations and railroads. 1007 

5 county commissioners a decree prescribing what alterations may be r. s. 39, § 67. 

6 made in the way and the manner and time of making the alterations alvli'f^. 

7 or structures which the commissioners may require at the crossing; pjl'. ^112', 1 121 

8 and before entering upon, excavating or altering the way, it shall f^Eh'i*" 

9 give to the city or town in which the crossing is situated security, 1' Alien, 329. 

10 satisfactory to the commissioners, that it will faithfully comply with 113 Mass. 52/ 

11 the requirements of the decree to their acceptance, and will indem- 134Mass - 549 - 

12 nify the city or town against all damages and charges by reason of a 

13 failure so to do. 

1 Section 127. A railroad corporation may alter the course of a course of high- 

2 public way for the purpose of facilitating the crossing thereof by altered? 7 be 

3 its road or of permitting its road to pass at the side thereof rI'.^'/to 

4 without crossing, if, after due notice to the city or town in which £? 4 | l ^\ .. 

5 the way is situated, the county commissioners decide that such ist4, 372, §'s9. 

x S 112 § 1^** 

6 alteration will not essentially injure the way and make a decree 14 Alien,' 444. ' 

7 prescribing the time and manner of such alteration. The corpora- 

8 tion shall pay all damages caused to private property by the 

9 alteration, as in case of land taken for its road. 

1 Section 128. If a railroad is laid out across a public way, crossing nigh- 

2 the county commissioners, upon the application of the railroad wayata°ie°ei. 

3 corporation or of the mayor and aldermen of the city or select- 5^' 152> §§ 2> 

4 men of the town in which the crossing is situated, after due ilf2' 37-2' 1 96 

5 notice to all persons interested and a hearing, may adjudge that *£ 7 | ^J 

6 public necessity requires the crossing at the same level, and may, 

7 if the board also consents in writing to such crossing at the same 

8 level, make a decree specially to authorize and require the corpo- 

9 ration so to construct its road, in such manner as shall be prescribed 

10 in the decree, and said commissioners may modify the terms of such 

11 decree or may revoke it at any time before the construction of the 

12 railroad at such crossing. 



1 Section 129. A railroad corporation whose road is crossed by Rails to bepro- 

2 a public way at the same level shall, at its own expense, so guard or way crossing." 

3 protect its rails by plank, timber or otherwise as to secure a safe ofs'.ls/leo. 

4 and easy passage across its road; and if, in the opinion of the i?7s*. ms* 1 ia*. 

5 county commissioners, any subsequent alteration of the highway or ]$ jj;^; ? 4 I5 . 

6 other way or additional safeguards are required at the crossing, ie4Mass. 3<i. 

7 they may order the corporation to establish the same as provided 

8 in section one hundred and twenty-six. 

1 Section 130. A public way may be laid out across a railroad w&pm&ybe 

2 previously constructed, if the county commissioners adjudge that j^^; 1 ' 088 

3 the public convenience and necessity so require ; and in such case, g^f-ft ^^ 

4 after due notice to the railroad corporation and a hearing of all g. d. es/§§ 57- 

5 parties interested, they may thus lay out or may authorize a city or ism, 872, § ». 

6 town, upon petition of the mayor and aldermen or selectmen p. |. im, 5 125. 

7 thereof, to lay out a way across a railroad, in such manner as not p^gffl}' 

8 to injure or obstruct the railroad, and otherwise in conformity with l$jfii*§j t 

9 the provisions of sections one hundred and twenty-four and one i«MaBs.^ ; 

10 hundred and twenty-five ; but they shall not permit it to cross at a 173 Mass. 12. 

11 level with the railroad unless public necessity so requires and the 

12 board consents thereto in writing, in which case the county com- 



1008 



RAILROAD CORPORATIONS AND RAILROADS. [CHAP. 111. 



missioners may give special authority for such crossing as provided 13 
in section one hundred and twenty-eight. 14 



Alterations of 
canals. 

1837, 226, §§ 1, 4. 
G. S. 63, §56. 
1874, 372, § 93. 
P. S. 112, § 126. 



Section 131. A railroad corporation may, with the consent of 
a canal corporation, alter the course of a canal or of a feeder to a 
canal, which interferes with the convenient location of its road. 
Damages caused by taking property therefor shall be estimated and 
paid as in case of land taken under the provisions of section ninety- 
nine . 



1 
2 
3 
4 
5 



Obstructions 
and repairs at 
crossings. 
1855, 350, § 2. 
G. S. 63, § 49. 
1874, 372, § 94. 
P. S. 112, § 127. 



Repairs of 
bridges, etc. 
R. S. 39, § 72. 
1846, 271, § 1. 
1851, 88. 
1855, 350, § 4. 
G. S. 63, §§ 61, 
67, 69. 

1872, 262, § 6. 
1874, 372, § 95. 
P. S. 112, § 128. 
7 Cush. 490. 
12 Allen, 254. 
97 Mass. 430. 
131 Mass. 516. 

138 Mass. 454. 

139 Mass. 528. 
159 Mass. 289. 



Alteration of 

crossings. 

1842, 22. 

G. S. 63, §§ 53, 

54. 

1872, 262, §§ 1, 2. 

1874, 305, §§1,3; 

372, § 96. 

P. S. 112, § 129. 

1885, 194, § 2. 

6 Cush. 424. 

116 Mass. 73. 

153 Mass. 218. 

154 Mass. 410. 
164 Mass. 551. 
171 Mass. 135. 



Section 132. If, upon application to the county commissioners 1 

by the mayor and aldermen of a city or selectmen of a town, and 2 

after due notice to the corporation which owns or operates a rail- 3 

road, it appears that the railroad so crosses a public way as to 4 

obstruct it, contrary to the provisions of section one hundred and 5 

twenty-four, or of a decree made under the provisions of section 6 

one hundred and twenty-six, or that the corporation refuses or 7 

neglects to keep a bridge or other structure which is required or 8 

necessary at such crossing in proper repair, the county commissioners 9 

may make a decree prescribing what repairs shall be made by the 10 

corporation at the crossing, and the time within which they shall be 11 

made, and shall order the corporation to pay the costs of the appli- 12 

cation. They may further order the corporation to give security, 13 

as provided in section one hundred and twenty-six, for the faithful 14 

performance of the requirements of the decree and for the indemnity 15 

of said city or town upon a failure in such performance. 16 

Section 133. Every railroad corporation shall, except as pro- 1 

vided in sections one hundred and forty-nine to one hundred and 2 

sixty, inclusive, at its own expense, construct, maintain and keep 3 

in repair all bridges, with their approaches and abutments, which it 4 

is authorized or required to construct over or under a canal or 5 

public way ; and a city or town may recover of the railroad corpo- 6 

ration whose road crosses a public way therein all damages, charges 7 

and expenses incurred by such city or town by reason of the neglect 8 

or refusal of the corporation to erect or keep in repair all structures 9 

required or necessary at such crossing ; but if, after the laying out 10 

and making of a railroad, the county commissioners authorize a 11 

public way to be laid out across the railroad, all expenses of and 12 

incident to constructing and maintaining the way at such crossing 13 

shall be borne by the county, city, town or other owner of the 14 

same, unless otherwise determined by an award of a special com- 15 

mission, under proceedings in accordance with the provisions of 16 

the following five sections. 17 

Section 134. If a public way and a railroad cross each other, 1 

and the mayor and aldermen of the city or the selectmen of the 2 

town in which the crossing is situated, or the directors of the rail- 3 

road corporation, are of opinion that it is necessary for the security 4 

or convenience of the public that an alteration which does not in- 5 

volve the abolition of a crossing at grade should be made in the 6 

crossing, the approaches thereto, the location of the railroad or 7 

way, or in a bridge at the crossing, they shall apply to the county 8 

commissioners, or, if the crossing is situated in the city of Boston, 9 



Chap. 111.] railroad corporations and railroads. 1009 




13 forthwith certify their decision to the parties and to the board. 



1 Section 135. If it is decided that the location of the railroad Land may be 

2 or of the way shall be changed, land or other property may be taken ages assessed"' 

3 therefor according to the provisions of law authorizing the taking of w^sw.' § 2; 

4 land by railroad corporations or for highways or town ways, as the fs'sf.'wI.'fVS. 

5 case may be ; and all damages caused by such taking or other- m Mas8- 135 " 

6 wise shall be assessed in the manner provided in case of the taking 

7 of land by railroad corporations, or for highways and town ways, 

8 respectively. 

1 Section 136. A special commission of three disinterested per- Award to be 

2 sons, who shall be appointed as provided in the following section, ^hucom- 

3 shall determine which party shall carry such decision into effect and S^faS' § 2 

4 which party shall pay the charges and expenses of making such J|Z|> f& || 8 - 

5 alteration and the future charges for keeping such crossing and the p - s - 112 '> § 131 - 

6 approaches thereto in repair, as well as the costs of the application i887| 295! 

7 to the county commissioners, or the board of railroad commission- 164 Mass! 311! 

8 ers, and of the hearing before said special commission ; and it may 

9 apportion all such charges, expenses and costs between the railroad 

10 corporation, and the counties, cities or towns in which said cross- 

11 ing is situated and other cities and towns which may be specially 

12 benefited. Any county, and any city or town in which the crossing 

13 is not situated, may be omitted from the apportionment if it seems 

14 just. 

1 Section 137. Upon the application of the county commission- special com. 

2 ers, the board of railroad commissioners, the mayor and aldermen, p 'fnt?neiS I of. 

3 the selectmen or the directors of the railroad corporation for the ll?!; 37't I^' 

4 appointment of such commission, the superior court shall cause notice \^> f^; § h 

5 thereof to be given to the other parties interested, fourteen days at p 7 f i"' f V32. 

6 least before the time fixed for the hearing; and thereupon, after a 1885, 194,' § 5. 

7 hearing, shall appoint such commission, one member of which shall 

8 be a member of and designated by the board. The special commis- 

9 sion shall meet as soon as may be after its appointment, and, after 

10 notice to and a hearing of the parties, shall make its award in writ- 

11 ing and return the same into said court. 

1 Section 138. A party who is aggrieved by said award ma}^, Revision by 

2 within fourteen days after it has been so returned, apply to the 1875/231, §§2,3. 

3 court for a jury to revise and determine any matter of fact found P> sf.iiMius. 

4 therein ; and thereupon the court, after due notice to all parties }« JJjjbb. 474. 

5 interested, shall order a trial by jury at the bar of the court in the 

6 same manner as civil cases are tried by jury. The decree of the 

7 court upon said award or upon the verdict of a jury shall be final 

8 and binding, and said court shall have jurisdiction in equity to en- 

9 force compliance therewith and also to issue and enforce such inter- 
10 locutory decrees and orders as justice may require. 

1 Section 139. The party designated for that duty, having car- gewrejy after 

2 ried into effect the decision of the county commissioners, may, in proportion of 

expense. 



1010 



RAILROAD CORPORATIONS AND RAILROADS. [CHAP. 111. 



187-2, 262, § 5. 
1874, 372, § 101. 
P. S. 112, § 134. 
6 Cush. 424. 



an action of contract, recover of any other party the proportion 3 

awarded to be paid by such other party, with interest ; and if the 4 

party so designated unreasonably neglects or refuses to carry the 5 

decision into effect, any other party who is affected by such neglect 6 

or refusal may proceed to do it, and may, in an action of contract, 7 

recover from each or all of the others the proportion awarded to be 8 

paid by him or them, respectively, and from the party so neglecting 9 

or refusing, all charges, expenses and costs occasioned thereby. 10 



County com- 
missioners to 
have jurisdic- 
tion of ob- 
structions. 
1849, 222, § 4. 



Section 140. County commissioners shall have original juris- 1 
diction of questions relative to obstructions to highways or town 2 
ways which are caused by the construction or operation of railroads. 3 



G. S. 63, § 62. 
1874, 372, § 102. 



P. S. 112, § 135. 
4 Cush. 63. 



2 Gray, 54. 
14 Gray, 93. 



141 Mass. 17. 
155 Mass. 16. 



— orders of, 
how enforced. 
1849, 222, § 5. 
1855, 350, § 3. 
G. 8. 63, §§ 50, 
63. 

1874, 372, § 103. 
1881, 111, § 4. 
P. S. 112, § 136. 
7 Cush. 506. 
174 Mass. 379. 



Section 141. The supreme judicial court shall have jurisdiction 1 

in equity to compel railroad corporations to raise or lower a public 2 

way which the county commissioners have decided is necessary for 3 

the security of the public to be raised or lowered, and to compel 4 

them to comply with the orders of count}^ commissioners relative 5 

to obstructions of such ways by them ; and if, upon the petition of 6 

the mayor and aldermen of a city or selectmen of a town, it appears 7 

that a corporation has excavated or altered a public way without 8 

obtaining the decree and giving the security required by section one 9 

hundred and twenty-six, or has neglected for fifteen days to give 10 

security as required by section one hundred and thirty-two, said 11 

court may enjoin it from entering upon, altering, excavating or 12 

crossing the way until such decree has been obtained or such secu- 13 

rity given. 14 



Crossing a 
private way. 
1833, 187, § 5. 
R. S. 39, § 71. 
G. S. 63, § 28. 
1874,362; 372, 
§104. 



Section 142. An application for damages which have been sus- 1 

tained by the owner of a private way, by reason of a railroad crossing 2 

the same, shall be made within three years after the time when the 3 

way was so obstructed, and not afterward, p. s. 112, §137. 103 Mass. 1. 4 



Severance of 
private land 
by crossing. 
1857, 213, §§ 1-4. 
G. S. 63, §§ 64- 
66. 

1874, 372, § 105. 
P. S. 112, § 138. 
1897, 264. 
14 Alien, 444. 
103 Mass. 1. 



Section 143. If a railroad which has been lawfully laid out 1 

through land without the consent of the owner thereof separates a 2 

portion of such land from another or from a public way, and the 3 

owner, having a right to cross the railroad, cannot agree with the 4 

corporation as to the place or manner in which he shall cross, or if 5 

a crossing is inconvenient, either party, in a case which does not 6 

involve the abolition of a crossing at grade, may apply to the county 7 

commissioners, who, after taking a recognizance from the applicant 8 

to the county, with sureties to their satisfaction, for the payment 9 

of costs and expenses according to their order, and after notice to 10 

the other party and a hearing, may make an order relative to such 11 

crossing and to the costs of the application ; but they shall not order 12 

the corporation to construct or maintain a crossing without its con- 13 

sent, unless it is liable by law or by agreement to construct a cross- 14 

ing for the owner of the land, or is the applicant. 15 



rat^ffby rau d Section 144. If by the laying out of a railroad or the widen- 1 
road. i n g f its roadbed, a person is cut off from access to land owned by 2 



Chap. 111.] railroad corporations and railroads. 1011 

3 him, and has neither received compensation nor made an agreement 1892 > *n- 

4 with the corporation relative thereto, the board, after notice to the 165 Mass. iii. 

5 parties and a hearing, may order a crossing to be made and main- 

6 tained at the expense of the railroad corporation, specifying definitely 

7 the character thereof and when it may be used. If the railroad cor- 

8 poration neglects for ninety days after the date of such order to 

9 comply therewith, it shall forfeit five dollars for every day there- 

10 after during which such neglect continues, which shall be recovered 

11 by the person aggrieved. The amount recovered shall be equally 

12 divided between the plaintiff and the county within which the cross- 

13 ing was ordered to be maintained. 

1 Section 145. A party who is aggrieved by a decision or order Appeal from 

2 of the county commissioners in any matter or proceeding arising musioners! 1 " 

3 under the provisions of sections one hundred and thirty-four or one iti Vass. Jos? 3 ' 

4 hundred and forty-three, or by their unreasonable refusal or neglect 

5 to announce a decision in any such matter or proceeding for sixty 

6 days after the first day fixed for a hearing thereon, may appeal to 

7 the board of railroad commissioners by filing a notice of appeal with 

8 the county commissioners within ten days after the decision or order 

9 appealed from, or in case of a refusal or neglect to announce a 

10 decision, within ten days after the expiration of sixty days from the 

11 first day fixed for a hearing thereon. The proceedings before the 

12 county commissioners in which the appeal is taken shall thereupon 

13 be stayed. 

1 Section 146. The appellant, to perfect the appeal, shall, within ^ e p r r e c ^ eding8 

2 twenty days after filing the notice thereof, file with the clerk of the iss2, 135, §§ 4, 5. 

3 board a petition stating the reasons for the appeal, and shall, within 

4 ten days after filing the petition, cause a certified copy thereof to be 

5 served upon the county commissioners. An appeal may be waived 

6 at any time before a hearing thereon by agreement of the parties 

7 in writing, filed with the county commissioners and the board. If 

8 the appellant fails to perfect the appeal, or if the appeal is waived, 

9 the matter may proceed before the county commissioners as if no 
10 appeal had been taken. 

1 Section 147. The board shall hear the appeal authorized by Hearing of 

2 section one hundred and forty-five in the county in which it is powers of 

3 taken, unless the parties in writing otherwise agree. Upon such im,m, §§e, 7. 

4 appeal, the board shall have the same powers and perform the same 

5 duties as county commissioners in like matters and proceedings, and 

6 shall be governed by the provisions of law relative to hearings 
and determinations by, and decisions and orders of, the county 



8 commissioners in such matters and proceedings. 

1 Section 148. No right of way across any railroad track or loca- mghtrf ^ 

2 tion which is in use for railroad purposes shall be acquired by pre- acquireaby 

3 scription. The provisions of this section shall not apply to rights \mM. 

4 of way which existed on the fifth day of June in the year eighteen {$ jg» $; 

5 hundred and ninety-two. 

142 Mass. 21. 144 Mass. 336. 145 Mass. 433. 176 Maes. 860. 



1012 



KAILROAD CORPORATIONS AND RAILROADS. [CHAP. 111. 



Commission 
to abolish 
grade cross- 
ings. 
1885, 194, § 1. 

1890, 4'28, §§ 1, 
11. 

1891, 262. 
1894, 216. 
1897, 264. 

153 Mass. 161, 
228. 

154 Mass. 411. 
158 Mass. 300. 
161 Mass. 259. 
175 Mass. 430. 



ABOLITION OF GRADE CROSSINGS. 

Section 149. The mayor and aldermen of a city or the selectmen 1 

of a town in which a public or private way and a railroad cross each 2 

other at grade, the directors of the railroad corporation, or, upon 3 

instructions from the governor and council given after notice to 4 

parties interested and a hearing, the attorney general, may file a 5 

petition in the superior court stating that the petitioners are of 6 

opinion that it is necessary for the security and convenience of the 7 

public that an alteration should be so made in such crossing, in the 8 

approaches thereto, in the location of the railroad or public or 9 

private way, or in the grades thereof, as to avoid a crossing at grade, 10 

or that such crossing should be discontinued with or without build- 11 

ing a new way in substitution therefor. The superior court shall 12 

thereupon have jurisdiction in equity, after notice by the petitioner 13 

to the board of railroad commissioners of the entry, of such petition, 14 

and after such notice by advertisement or otherwise as the court 15 

shall order and a hearing, in its discretion, to appoint a commission 16 

of three disinterested persons. 17 



Petition may 
embrace 
several cross- 
ings, etc. 

1890, 428, §§ 2, 8. 

1891, 33, § 1. 



Section 150. A petition under the provisions of the preceding 1 

section may include several crossings or several railroads crossing 2 

at or near the same point, or by order of the court two or more 3 

petitions may be consolidated and heard as one. Service of such 4 

petition and of all notices or processes thereunder may be made 5 

upon the commonwealth by serving upon the attorney general per- 6 

sonally, or by leaving in his office, an attested copy thereof. 7 



Commission 
to prescribe 
the alterations. 

1890, 428, § 3. 

1891, 33, § 2. 
1894, 216. 
1897, 264. 

153 Mass. 576. 
161 Mass. 33. 
169 Mass. 495. 
172 Mass. 5, 117. 



Section 151. The commission appointed under the provisions 1 

of section one hundred and forty-nine shall meet at once, and if, 2 

after notice and a hearing, it decides that the security and con- 3 

venience of the public require the alterations, including the change 4 

or discontinuance of a private way, if any, to be made, it shall pre- 5 

scribe the manner and limits thereof and shall determine which of 6 

the parties shall do the work, or shall apportion the work to be done 7 

between each of the railroad corporations and the city or town. 8 

The railroad corporation shall pay sixtj^-five per cent of the total 9 

actual cost of the alterations as aforesaid, including therein in addi- 10 

tion to the cost of construction, the cost of the hearing, the com- 11 

pensation of the commissioners and auditors and all damages, except 12 

as otherwise provided. The remaining thirty-five per cent shall 13 

be apportioned by the commission between the commonwealth and 14 

the city or town in which the crossing or crossings are situated, but 15 

not more than ten per cent shall be apportioned to such city or 16 

town. The commission shall equitably apportion the sixty-five 17 

per cent to be paid by the railroad corporation between the several 18 

railroads which may be parties to the proceedings. If the cross- 19 

ing was established after the twenty-first day of June in the year 20 

eighteen hundred and ninety, no part of said cost shall be charged 21 

to the commonwealth. If the crossing is of a railroad and a 22 

private way, and no crossing of a public way is abolished in con- 23 

nection therewith, the entire cost as aforesaid shall be paid by the 24 

railroad corporation. 25 



Chap. 111.] railroad corporations and railroads. 1013 

1 Section 152. The commission shall specify what portion, if Ending of 

/» .. -,. . ini commission. 

2 any, of an existing public or private way shall bo discontinued, the contents. 

3 grades for the railroad and the way, the general method of construe- 1890,428, §4. 

4 tion and what land or other property it considers necessary to be ism, 2u. 

5 taken ; but if such decision involves a change in the grade of the rail- iSm. 356. 

6 road, the consent of the board of railroad commissioners to such J71 Mass! m 

7 change shall first be obtained. Said commission shall forthwith re- 

8 turn its decision to the superior court, the decree of which, confirm- 

9 ing such decision, shall be final and binding. If the commission 

10 decides that the location of the railroad or of the public or private 

11 way shall be changed, the decree of the court confirming such 

12 decision shall constitute a taking of the specified land or other 

13 property ; and the clerk of said court shall, within thirty days after 

14 said decree, cause a copy of such decision and decree to be filed 

15 with the county commissioners of the county or counties in which 

16 the land or other property taken and the crossing are situated, to 

17 be recorded in the registry of deeds for the counties and districts 

18 in which such land, property and crossings are situated, and to be 

19 filed with the auditor of the commonwealth. Said taking shall be a 

20 taking by the city or town, if the land is to be used for a public way, 

21 or by the railroad corporation, if the land is to be used for a private 

22 way or by the railroad. 

1 Section 153. All damages which may be sustained by any per- damages. 

2 son in his property by the taking of land for, or by the alterations ism', 123'. 

3 of the grade of, a public way, or by an abutter thereon, by the if^ieS: 

4 discontinuance of such public way, to the same extent as damages Jgj*j; |~; 

5 are recoverable by abutters on ways discontinued by towns, shall \™ Mass. ito. 

6 primarily be paid by the city or town ; and all damages which may J»Jg»£§J 

7 be caused by the taking of land for the railroad or by the change g*- MflM> ' M0 ' 

8 or discontinuance of a private way in connection with the aboli- 173 Mass. «g. 

9 tion of a grade crossing shall primarily be paid by the railroad cor- 176 Mass! 101'. 

10 poration ; and all damages which may be sustained by any person 

11 by the abolition of private ways, except as hereinbefore provided, 

12 shall be entirely paid by the railroad corporation. If the parties 

13 interested cannot agree upon said damages, any party may have 

14 the damages determined by a jury in the superior court for the 

15 county in which the property and crossing are situated, on petition, 

16 brought within one year after the date of the decree of the court 

17 confirming the decision of said commission, in the same manner as 

18 damages may be determined which are caused by the taking of 

19 land for the locating of railroads and the laying out or discontinu- 

20 ance of public ways, respectively, in such city or town ; but all 

21 expense wBich results from the necessary relocating or changing of 

22 streams and water courses forming the natural drainage channels 

23 of the territory in which alterations of grades are authorized and of 

24 sewers, drains and pipes therein owned and Operated by municipal 

25 corporations shall be primarily paid by said city or town, and shall 

26 be a part of the actual cost of the alterations mentioned in section 

27 one hundred and fifty-one. Parties who recover damages m such 

28 proceedings shall also recover costs as in other civil cases, and the 

29 court may in its discretion allow, as a part of such costs, the rca- 
50 sonable expenses incurred for surveys and plans. 



1014 



RAILROAD CORPORATIONS AND RAILROADS. [CHAP. 111. 



Maintenance 
of crossing 
and ap- 
proaches. 

1890, 428, § 6. 

1891, 33, § 2. 



Auditor, 
duties, com- 
pensation. 
1890, 428, § 7. 

1893, 283. 

1894, 545. 
1898, 538. 

161 Mass. 32. 

162 Mass. 564. 
172 Mass. 117. 



Section 154. After the completion of the work, the expense of 1 

maintenance and repair shall be paid as follows : if the public way 2 

crosses the railroad by an overhead bridge, the framework of the 3 

bridge and its abutments shall be maintained and kept in repair by 4 

the, railroad corporation, and the surface of the bridge and its ap- 5 

proaches shall be maintained and kept in repair by the city or town 6 

in which they are situated ; if the public way passes under the 7 

railroad, the bridge and its abutments shall be maintained and kept 8 

in repair by the railroad corporation, and the public way and its 9 

approaches shall be maintained and kept in repair by the city or 10 

town in which they are situated ; if several railroads cross a public 1 1 

way at or near a given point, the commission shall apportion and 12 

award in what manner and proportion each of said railroad cor- 13 

porations shall maintain and keep in repair the framework of the 14 

bridge and its abutments if the public way crosses the railroad by 15 

an overhead bridge, and the bridge and its abutments if the public 16 
way passes under said railroads. 



Section 155. The court shall appoint an auditor, who shall be 
a disinterested person, not an inhabitant of the city or town in which 
the crossing is situated, whose compensation shall be determined 
by the court and to whom shall from time to time be submitted all 
accounts of expense incurred by the railroads, city, town, commis- 
sion or auditor, and who shall audit the same and make report 
thereon to the court. Such auditing, when accepted by the court, 
shall be final. A certified copy of such report and the decree of the 
court thereon shall be filed with the auditor of the commonwealth. 
The court shall, from time to time, issue its decrees for payments 
on the part of the railroad corporation, not exceeding the amounts 
apportioned to it by said auditor, and for the payment by the com- 
monwealth of a sum not exceeding the amounts apportioned to it 
and to the city or town ; and such city or town shall repay to the 
commonwealth the amount apportioned to it by said auditor, with 
interest thereon, payable annually at the rate of four per cent from 
the date of the acceptance of the report of the auditor. Such repay- 
ment of the principal shall be made annually in such amounts as the 
auditor of the commonwealth may designate ; and the amount of 
payment designated for the year, with the interest due on the out- 
standing principal, shall be included by the treasurer and receiver 
general in the amount charged to such city or town, and shall be 
assessed upon it in the apportionment and assessment of its annual 
state tax. The treasurer and receiver general shall in each year 
notify such city or town of the amount of such assessment, which 
shall be paid by it into the treasury of the commonwealth as a part 
of, and at the time required for, the payment of its state tax. When 
the final assessment on a city or town has been paid by it, the treas- 
urer and receiver general shall repay to it, in reduction of said final 
payment, the amount of interest, if any, which has been assessed to 
and paid by it in excess of the actual interest cost to the common- 
wealth for money borrowed for the abolition of grade crossings pre- 
vious to the payment of said final assessment ; and such excess of 
interest, if any, shall be on the exact amounts repaid by such city 
or town to the commonwealth on which interest has been collected 
under the provisions of this section, and no more. 



17 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

28 

29 

30 

31 

32 

33 

34 

35 

36 



Chap. 111.] railroad corporations and railroads. 



1015 



1 

2 
3 

4 
5 
6 

7 



Section 156. The superior court shall have jurisdiction in Enforcement 
equity to enforce compliance with the provisions of sections one lmjis, § s. 
hundred and forty-nine to one hundred and sixty, inclusive, and mMss. 564. 
with the decrees, agreements and decisions made thereunder; and 
may issue and enforce such interlocutory decrees and orders as 
justice may require, and any order, appointment or decree under 
the provisions of said sections may be made in any county. 



1 Section 157. If the board of aldermen of a city or the select- ^fa^r 1188 

2 men of a town in which a public way and a railroad cross each ment » s t0 

i lfcpT*fi t"i on fl 

3 other and the directors of the railroad corporation are of opinion isao, 428, § 9. 

4 that it is necessary for the security and convenience of the public 5 a8S " 16 ' 

5 that alterations should be made in such crossing, in the approaches 

6 thereto, in the location of the railroad or public way or in the 

7 grades thereof, or in a bridge at such crossing, or that such crossing 

8 should be discontinued with or without building a new way in sub- 

9 stitution therefor, and they agree as to the alterations which should 

10 be made, an instrument in writing signed, in behalf of a city, by the 

11 mayor, duly authorized by the board of aldermen, or, in behalf of a 

12 town, by the chairman of the selectmen, duly authorized by the 

13 selectmen, and by the president of the railroad corporation, duly 

14 authorized by its directors, specifying the manner and limits within 

15 which the alterations shall be made, and by which party the work 

16 shall be done, or how it shall be apportioned between the city or 

17 town and the railroad corporation, the general method of construc- 

18 tion, the grades for the railroad and the public way or ways, and 

19 also what land or other property it is necessary to take, and what 

20 portion, if any, of an existing public way is to be discontinued, 

21 and how the cost thereof shall be apportioned between the city or 

22 town and the railroad corporation, shall be valid and binding on the 

23 city or town and the railroad corporation, respectively, and have 

24 the same force and effect as a decree of the court under the provi- 

25 sions of section one hundred and fifty-two, if the board, after 

26 notice to all parties interested by advertisement and a public 

27 hearing, approve of the alterations set forth in the agreement as 

28 necessary for the convenience and security of the public. Said 

29 approval by the board shall constitute a taking of the land and 

30 other property specified in the agreement as necessary to be 

31 taken, and the clerk of said board shall, within thirty days after 

32 such approval, cause a copy of the agreement and approval to 

33 be filed with the county commissioners of the county or counties 

34 in which the land or other property taken and the crossing are 

35 situated, to be recorded in the registry of deeds for the counties 

36 and districts in which such land, property and crossing are sit- 

37 uated, and also to be filed with the auditor of the commonwealth. 

38 The provisions of section one hundred and fifty-two relative to the 

39 taking of land under a decree of the court and of section one hun- 

40 dred and fifty-three relative to the recovery of damages sustained 

41 by any person in consequence of such taking, or of the alterations 

42 made in pursuance of said decree, shall apply to the taking of land 

43 and to damages sustained under an agreement made pursuant to 

44 the provisions of this section, except that the petition for the 

45 determination of damages maybe brought within one year after 

46 the date of the approval of such agreement by the board of rail- 



1016 



RAILROAD CORPORATIONS AND RAILROADS. [CHAP. 111. 



road commissioners. The crossing and approaches shall be main- 47 

tained and kept in repair as provided in section one hundred and 48 

fifty-four. If the agreement provides for the abolition of a public 49 

grade crossing, the board of railroad commissioners shall keep itself 50 

informed of the progress and character of the work and of the 51 

amounts reasonably expended for work done or for damages, so 52 

far as rendered necessary for the abolition of the grade crossing ; 53 

and for that purpose it may employ -any necessary agents, and, 54 

from time to time as it may consider proper, shall issue certified 55 

statements of the amount legally and properly expended for such 56 

abolition of a grade crossing; and the commonwealth shall pay to 57 

the parties entitled thereto under the agreement twenty per cent of 58 

such expenditure. 59 



Payments by 
the common- 
wealth. 
Bonds. 
Sinking fund. 
1890, 4-28, § 10. 
1893, 424. 
1896, 439, §§ 1, 3. 
[1 Op. A. G. 
305.] 



Section 158. The amount to be paid under the provisions of 1 

the preceding nine sections by the commonwealth in any one year, 2 

the year beginning with the twenty-first day of June, shall not 3 

exceed five hundred thousand dollars, and the total amount shall 4 

not exceed five million dollars ; but if in any year the expenditure 5 

by the commonwealth shall not amount to five hundred thousand 6 

dollars, the unexpended balance thereof shall be added to the five 7 

hundred thousand dollars allowed to be paid by it in any subsequent 8 

year. In computing and estimating the amount paid and to be paid 9 

by the commonwealth, the amounts apportioned to cities and towns 10 

and advanced by the commonwealth under the provisions of section 11 

one hundred and fifty-five shall not be included. The treasurer and 12 

receiver general shall pay the amount of cost apportioned to the 13 

commonwealth from any money not otherwise appropriated, and 14 

shall from time to time, on request of the governor and council, 15 

issue and sell bonds, shall establish a sinking fund for the payment 16 

thereof into which shall be paid any premiums received on the sale 17 

of said bonds and shall apportion thereto from year to year, in 18 

addition, amounts sufficient with their accumulations to extinguish 19 

at maturity the debt incurred by the issue of said bonds. The 20 

amount necessary to meet the annual sinking fund requirements 21 

and to pay the interest on said bonds shall be raised by taxation 22 

from year to year. From the proceeds of the sale of such bonds, 23 

there shall be paid into the treasury of the commonwealth such 24 

amounts as may have been expended therefrom under the provisions 25 

of this section. 26 



Board to have 
notice of 
petitions 
entered and to 
decide which 
shall be acted 
on. 
1S90, 428, § 11. 



Section 159. If applications are made for changes in grade cross- 1 

ings, which will, in the opinion of the board after an examination of 2 

the decision of the commission appointed by the court, require a 3 

larger expenditure in any one year on the part of the commonwealth 4 

than the amount authorized by the preceding section, said board shall 5 

decide which, if any, of said pending petitions shall be proceeded 6 

with during the year ; and no decree shall be entered under any such 7 

petition until a certificate has been filed thereon by the board that, 8 

in its judgment, the expenditure on the part of the commonwealth 9 

will not exceed the amount provided for by said section. 10 



of sections 



hundred and 



vfs r ionsnotto Section 160. The provisions ot sections one 

^PrS^o *,» thirty-four to one hundred and forty-one, inclusive, and one hun- 

1890,428, § 12. J •> * ' 



1 

2 



Chap. 111.] railroad corporations and railroads. 1017 

3 dred and forty-five to one hundred and forty-seven, inclusive, so 

4 far as they relate to proceedings for the abolition of grade cross- 

5 ings, shall not apply to cases within the provisions of the preceding 

6 eleven sections. 

BRANCHES AND EXTENSIONS. 

1 Section 161. A railroad corporation, after having finished the Branches and 

2 construction of its main road and put it in operation, may build ^■g'^ 

3 branches or extensions thereof in accordance with the provisions ^ 5; 37 -' ^ 31 » 

4 of this chapter, if an amount of additional capital stock, applicable i|Ij>> ][f 

5 solely to the construction of such branch or extension, has been p. s'. 112, §§ 139, 

6 subscribed and a certificate of the board that public convenience 1882, 265, §§ 1, 3. 

7 and necessity require the construction of the branch or extension 124 lass 

8 has been obtained and a certificate of the clerk of the board has 

9 been filed according to the provisions of section eighty-eight, and 

10 it may build such branches or extensions without additional capital 

11 stock, if its indebtedness is not thereby increased ; but the provi- 

12 sions of this section shall not invalidate a lease or contract between 

13 railroad corporations which is made pursuant to law. Upon the 

14 filing of such certificate, fifty dollars shall be paid to the secretary 

15 of the commonwealth. If the construction of such branch or exten- 

16 sion is not begun and at least ten per cent of the additional capital 

17 stock is not expended thereon within two years after the date of the 

18 certificate required by section eighty-eight and the branch or exten- 

19 sion completed and put in operation within four years after said 

20 date, the power of the railroad corporation to construct the same 

21 shall cease. 

opening the railroad for use. 

1 Section 162. No railroad or branch or extension thereof shall ^oad^nouo be 

2 be opened for public use until the board, after an examination, g^ c e ™ e 

3 certifies that all laws relative to its construction have been complied i874,'223;'372, 

4 with, and that it appears to be in a safe condition for operation. p. s.112, §ui. 

1 Section 163. When a railroad or a branch or extension thereof JSSdte ta 

2 is finished and opened for public use, the corporation by which it ^licuse^ 

3 was constructed shall, within one year thereafter, file in the office bejug,etc. 

4 of the secretary of the commonwealth a map and profile thereof, iso '§ s! ' 

5 with tables of grade and curvature and a statement of the other p.'|'.m,'§ u'->. 

6 characteristics of the road, certified by its president and engineer in 

7 such form as the board may prescribe. 



1 



REMEDY FOR LABOR, ETC., FURNISHED FOR CONSTRUCTION. 

Section 164. A person to whom a debt is due for labor per- A^on^ataet 

2 formed or for materials furnished and actually used in constructing roadfor ^bor 

3 a railroad under a contract with a person, other than the owner of ^|, »», § l.^" 

4 the railroad, who has authority from or is rightfully acting for such u 6 Mass. rao. ' 

5 owner in furnishing such labor or materials shall have a right of m Ma8B - wo - 

6 action against such owner to recover such debt with costs, except as 

7 provided in the following four sections. 

1 Section 165. No such person who has contracted to construct (Xwe^.r* 

2 the whole or a specified part of such railroad shall have such right action. 

3 of action. 1873,353, §2. p. s. 112, § i-m. 



1018 



RAILROAD CORPORATIONS AND RAILROADS. [CHAP. 111. 



127 Mass. 101. 



amount of debt Section 166. No such person shall have such right of action 1 

i873 e 3K ed 5 3 f° r l a ^ 0r performed, unless, within thirty days after ceasing to 2 

p. s'. 112, § 145. perform it, he files in the office of the clerk of a city or town in 3 

19,7 Maan 101 i . , n . -, ■, r. -, . J , 

which any of said labor was performed a written statement, under 4 

oath, of the amount of the debt so due him and of the name of the 5 

person or persons for whom and by whose employment the labor 6 

was performed. Such right of action shall not be lost by a mistake 7 

in stating the amount due ; but the claimant shall not recover as 8 

damages a larger amount than is named in said statement as due him, 9 

with interest thereon. 10 



tent^tote Section 167. No such person shall have such right of action 

187*353 «4 f° r ma t er i a l s furnished, unless, before beginning to furnish them, 

p. s'. Hi, § U6. he files in the office of the clerk of the city or town in which any of 

the materials were furnished a written notice of his intention to claim 

such right, in the manner provided for filing the statement named in 

the preceding section. 



1 
2 
3 
4 
5 
6 



Limitation of 
actions. 
1873, 353, § 5. 
P. S. 112, § 147. 
127 Mass. 101. 



Section 168. No such action shall be maintained unless it is 1 
commenced within sixty days after the plaintiff ceased to perform 2 
such labor or to furnish such materials. 3 



Examination 
of railroad 
bridges. 
1887, 334, 
1899, 286. 



1-3. 



EQUIPMENT AND OPERATION. 

Railroad Bridges. 

Section 169. Every railroad corporation and street railway 1 

company shall upon request of the board and at least once in two 2 

years cause an examination of its bridges and of the approaches 3 

thereto to be made by a competent and experienced engineer, who 4 

shall report the result of his examinations, his conclusions and 5 

recommendations to the corporation, and it shall forthwith trans- 6 

mit a copy of the report to the board. Before a street railway 7 

company builds a bridge, it shall first submit the plans thereof to 8 

the board for approval. If a new bridge has been built, the railroad 9 

corporation or street railway company shall forthwith cause such 10 

examination and report to be made and transmitted to the board. 11 

The reports shall furnish such information, in such detail and with 12 

such drawings or prints, as may be requested in writing by the 13 

board. The board may make further examination of the bridge 14 

structure if necessary or expedient. The provisions of this section 15 

shall not exempt a corporation from making other and more fre- 16 

quent examinations of its bridges and the approaches thereto. 17 



Superintend- 
ents of draw- 
bridges. 
1855, 434, §§ 1, 2. 
G. S. 63, § 73. 
1863, 131, § 1. 
1874, 372, § 108. 
P. S. 112, § 148. 



Drawbridges. 

Section 170. Every railroad corporation shall provide for each 1 

drawbridge upon the line of its road a steady and discreet superin- 2 

tendent, experienced in the management of vessels, who shall have 3 

full control and direction of the passing of vessels through the draw ; 4 

and the corporation shall make and enforce regulations for each 5 

drawbridge conformable to the following seven sections. 6 



Every such drawbridge shall be kept closed at all 1 

The 2 



£ r ^S ges Section 171. 

to be kept % 

closed, except, times, except while open tor the actual passage of vessels 

1855, 434, §§ 2, 3. * XT I , 



Chap. 111.] railroad corporations and railroads. 1019 

3 superintendent shall at all hours of the day and night be ready to g. s. 63, § 74. 

4 open the draw; shall decide, having regard to the convenient and ilfS; sffc 1 169. 

5 secure passage of engines and trains and the state of the tide, when p - s - 112 ^ § 149< 

6 and in what order vessels may pass, allowing no unnecessary deten- 

7 tion ; shall give all necessary advice and furnish proper facilities for 

8 such passing; and shall keep posted in a convenient place, for the 

9 inspection of all interested, a printed copy of the regulations relat- 
10 ing to the drawbridge. 

1 Section 172. The master of a vessel who applies to pass such v e as s s e a f e h f w 

2 draw shall give to the superintendent a true report of his vessel's regulated. 

3 draught of water, and shall be governed by him as to priority of g. s'. 63,'§§ 75, " 

4 right if two or more vessels apply at the same time to pass . In ism, 372, § 110. 

5 passing, he shall, unless otherwise directed by the superintendent, 127 Mass. 7. ' 

6 go to the right according to the tide, if practicable, and shall so 146MaS8 - 621 - 

7 place his buoys, warping-lines, anchors or cables as neither to 

8 interfere with other vessels nor obstruct the bridge ; and he shall be 

9 allowed a reasonable time for his vessel to pass. A railroad train 

10 shall be allowed fifteen minutes to cross a draw before and after it 

11 is due by its time table, and any approaching train shall be allowed 

12 a further reasonable time to pass. 

1 Section 173. Every drawbridge shall be furnished with con- Drawbridge 

2 spicuous day and night signals, which shall be displayed at all times isf 3, a i|i , § 3. 

3 in such manner as clearly to indicate to the engineman of an pJl.nl.lili. 

4 approaching train whether the draw is open or closed. 

1 Section 174. The railroad corporation may erect, at a distance -gates- 

2 of five hundred feet from every drawbridge, or at such other distance mm, sra, § 112. 

3 as may on its application be prescribed by the board, and on each 

4 side thereof, a substantial gate, so constructed and connected with 

5 the draw by suitable mechanism, that the draw, when in position 

6 for the passage of trains, cannot be opened or moved until the gates 

7 have been closed across the track in such manner as to be a barrier 

8 and warning to any train which approaches in either direction. 



1 Section 175. If a drawbridge is not furnished with such gates, Enghiemnnto 

2 and in all cases if by reason of darkness or otherwise the gates bridge is 

3 or signals connected with a drawbridge are not visible from the mkwsi, 1 6. 

4 engine of an approaching passenger train, the engineman of such ^l.^f ms. 

5 train shall bring it to a full stop at a distance of not less than three 

6 hundred nor more than eight hundred feet from the drawbridge, 

7 and, before proceeding, shall positively ascertain that the draw is 

8 properly closed for the passage of trains ; except that if the draw- 

9 bridge is between two railroad crossings at grade, within .six 

10 hundred feet of each other, one stop only shall be required for such 

11 crossings and drawbridge. 

1 Section 176. A railroad corporation which neglects to comply gjjjgw^ 

2 with the provisions of sections one hundred and seventy-three and for neglect, 

3 one hundred and seventy-five shall forfeit one hundred dollars for && mi, * ^ 

4 each day such neglect is continued ; and an engineman or superin- p.jf.m^ ,,,. 

5 tendent of a drawbridge who violates any provision of said sections 



1020 



RAILROAD CORPORATIONS AND RAILROADS. [CHAP. 111. 



or any regulation established in conformity therewith for such 6 

drawbridge by the corporation by which he is employed shall forfeit 7 

one hundred dollars for each offence, which shall be recovered in 8 

the county in which the offence is committed, to the use of the in- 9 

former. 10 



otatructfng su- Section 177. Whoever obstructs the superintendent in the 
lt e c rintendent ' P er f° rmanc e of his duties or violates any provision of the preceding 
g 5 | tif'M -%"-' seven sections shall, unless therein otherwise provided, forfeit 
so. ' ' not less than three nor more than fifty dollars. Whoever breaks, 

p._s. 112, § 155. defaces or impairs any such bridge or a wharf or pier appurtenant 
thereto, or, without the consent of the superintendent, unnecessarily 



opens or obstructs the draw or makes fast or moors any scow, raft 
or other vessel to such bridge within wake of the draw shall forfeit 
not less than three nor more than twenty dollars. Whoever 
wilfully injures or damages a railroad bridge, wharf or pier, or 
wilfully disturbs or hinders the superintendent in the performance 
of his duties, shall forfeit for each offence not less than fifty nor 12 
more than one hundred dollars, and be further liable in damages to 13 
the corporation against which the offence is committed. 14 



1 

2 
3 
4 
5 
6 
7 
8 
9 
10 
11 



Stations. 

^paifsenger 11 Section 178. A railroad corporation which has established and 

regulated maintained a passenger station throughout the year for five consec- 

18-4 3-2' 116 U ^ ve y ears a t an y point upon its road shall not abandon such sta- 

p. s. 112, § 156. tion, unless it is relocated under the provisions of the following 

137 Mass 45 • ... . 

158 Mass! 104. section, nor substantially diminish the accommodation furnished by 



the stopping of trains thereat as compared with that furnished at 
other stations on the same road. The supreme judicial court, upon 
an information filed by the attorney general at the relation of ten 
legal voters of the city or town in which such station is located, shall 
have jurisdiction in equity to restrain the violation of the provisions 10 
of this section. 11 



stations and f Section 179. A railroad corporation may relocate passenger 1 

freight depot, stations and freight depots, with the approval in writing of the 2 

1874,' 372; § 117. board and of the city council of the city or the selectmen of the 3 

P S 112 5 157 . • . . 

137 Mass. 45. ' town in which such stations or depots are situated. 158 Mass. 104. 4 

to be indicated. Section 180. Every railroad corporation shall indicate to its 1 

iCTif 106 8 ' passengers the name of each way station by placing at or near the 2 

p. s'. 112, § 158. station a proper and conspicuous sign or signs, and shall forfeit fifty 3 

dollars for each violation of the provisions of this section. 4 



Compensation 
for joint occu- 
pation. 
1893, 142. 



Section 181. If one railroad corporation occupies or uses, 1 

or has a right to occupy, enter upon and use, a station, road or 2 

grounds of another, or any portion thereof, the board, upon petition 3 

of either party and after notice to the other and a hearing, shall 4 

determine the compensation to be paid for such occupancy and use. 5 

Its award shall be binding upon the parties thereto for five years, 6 

or until it is revised or altered by the board, and upon the request 7 

in writing of a party affected thereby, filed within thirty days after 8 



Chap. 111.] railroad corporations and railroads. 1021 

9 the rendering thereof, the award shall be filed in the supreme judi- 

10 cial court which shall have jurisdiction to revise the same as if the 

11 award had been made by a commission appointed by said court. 

Switches. Bridge Guards. 

1 Section 182. All switches which are laid in a railroad track g^Ls 

2 which is used or intended to be used by passenger or mixed trains, J 87 *' 24 - 

3 including those so laid in renewal of existing switches, shall be p. s'. 112, § 159. 

4 some kind of safety switch approved in writing by the board. For 

5 each switch laid in violation of the provisions of this section, the 

6 railroad corporation shall forfeit two hundred dollars, and the fur- 

7 ther sum of five dollars for each day the switch is used. 

1 Section 183. The frogs, switches and guard rails, except guard ^^4 

2 rails on bridges, which are in or connected with the railroad tracks }886, 120. 

3 operated or used by any railroad corporation shall be kept so 

4 blocked by some method approved by the board as to prevent 

5 employees from being caught therein. A railroad corporation 

6 which violates the provisions of this section shall be punished by a 

7 fine of not less than ten nor more than one hundred dollars for each 

8 offence. 

1 Section 184. Every railroad corporation, at every bridge or Bridge guards. 

2 other structure, any portion of which crosses the railroad above the istoI !?6 2 ' 3 ' 

3 track, shall erect and maintain suitable bridge guards which shall be § 8 n9. 226 ' 372 ' 

4 approved by the board and be erected and adjusted to its satisfac- p. 8 s'.ii2 §160. 

5 tion. A corporation which neglects to comply with the provisions 175 Mass. 150. 

6 of this section shall forfeit fifty dollars for each month's neglect. 

7 Whoever wilfully destroys or breaks any such bridge guard shall be 

8 punished by a fine of not more than one hundred dollars or by 

9 imprisonment for not more than thirty days. 

Signals, etc., at Crossings. 

1 Section 185. If two railroads cross each other at the same level, f^^af £ade 

2 the engineman of every freight train and, if both roads are used ^^gf s j 2 

3 for passenger traffic, of every passenger train, upon approaching W5|39;W|L 

4 such crossing, shall stop his engine within five hundred feet there- u.^ ' 

5 from, and shall not resume his course until signalled so to do, when ism! 372; § 121. 

6 he shall pass slowly over the crossing ; but one stop shall be sufficient p ' S- 112 ' § 16L 

7 for all such crossings within six hundred feet of each other upon the 

8 same railroad. Every engineman who fails so to stop his engine 

9 shall forfeit one hundred dollars for each offence ; and the corpora- 

10 tion on whose road the offence is committed shall forfeit the further 

11 amount of three hundred dollars. 

1 Section 186. The board shall make general regulations for all p r ° e a sS?™ies 

2 such crossings or special regulations for such particular crossings as i^'g^f^i. 

3 it may designate, and in such detail as it may consider expedient ; ish! w| m 

4 and the supreme judicial court may issue any processes necessary 

5 to secure the enforcement of such regulations, or, upon the petition 

6 of said board, may enjoin the running of trains on a railroad upon 

7 which any regulation relative to such crossing is not exactly ob- 



1022 RAILROAD CORPORATIONS AND RAILROADS. [CHAP. 111. 

served. The approval of the board shall be required for a system 8 

of signals to be established and maintained in concert by corpora- 9 

tions operating railroads which cross each other ; but no such regu- 10 

lation or system of signals shall exempt a railroad upon or across 11 

which passenger trains are run by steam power from the require- 12 

ments of the preceding section unless a system of interlocking or 13 

automatic signals, approved in writing by the board, is adopted by 14 

both corporations. 15 

signals?* 1115 Section 187. The board may, on the application of a railroad 1 

1885, 85. corporation whose road crosses another railroad at the same level, 2 

after notice to the parties and a hearing, authorize the applicant at 3 

its own expense, to establish and maintain a system of interlocking 4 

or automatic signals at any crossing of said roads and to erect and 5 

maintain the necessary wires, rods, signal posts and signals, in 6 

such manner as the board shall prescribe. Such corporation, after 7 

the system has been established and approved in writing by the 8 

board, shall be exempt as to such crossing from the requirements 9 

of section one hundred and eighty-five so long as the board con- 10 

tinues its approval. Upon payment to such corporation by the 11 

corporation owning or operating the other railroad at such crossing 12 

of so much of the cost of establishing such system of signals as, 13 

upon petition of the latter corporation and a hearing, is awarded 14 

by the board, both railroads shall, as to that crossing, be exempted 15 

from the requirements of said section. Until such payment the 16 

latter corporation shall semi-annually contribute toward the expense 17 

of operating said signals an amount equal to the cost to it of oper- 18 

ating the signals used by it at said crossing before the establishment 19 

of the signals herein provided for. After the payment of such 20 

award, the expense of maintaining and operating such system of 21 

signals shall be borne by the two railroad corporations according to 22 

the proportions fixed by the award for paying the original cost of 23 

the signals. So much of the award as relates to the cost of main- 24 

taining and operating said signals may, at the request of either 25 

party, be revised at the expiration of five years from the original 26 

award or from any revision thereof. 27 

?r e "hi8ti e e rung Section 188. Every railroad corporation shall cause a bell of 1 

s <^. n( *ed. a t least thirty-five pounds in weight, and a steam whistle, to be 2 

R|'. 39.' § 78. placed on each locomotive engine passing upon its road; and such 3 

g. s. 63,' § 83. bell shall be rung or at least three separate and distinct blasts of 4 

1874' 372, § 123. such whistle sounded at the distance of at least eighty rods from 5 

is90,' 173.' § 163 ' the place where the road crosses upon the same level any highway, 6 

locushfiei. town way or travelled place over which a signboard is required to 7 

i!o m"ss' 239 ^e mam tained as provided in sections one hundred and ninety and 8 

153 Mass! 57, 82. one hundred and ninetv-one ; and such bell shall be rung or such 9 

157 Mciss 340 • ■ 

159 Mass! 32.' whistle sounded continuously or alternately until the engine has 10 

170 Mais! 430.' crossed such way or travelled place. The provisions of this section 11 

shall not affect the authority conferred upon the board by the pro- 12 

visions of the folio wino- section. 13 



& 



whistles 5 of Section 189. The board, upon petition, and after notice to 1 

i8 g 5 U 334 d ' ^he railroad corporation and a public hearing, may, for good cause 2 
i89v>04. shown, recommend to such railroad corporation such changes as it 3 



Chap. 111.] railroad corporations and railroads. 1023 

4 considers proper in the manner of making up and shifting freight 

5 trains or freight cars, and to the sounding of whistles on locomo- 

6 tives, and it may by an order in writing forbid or regulate the 

7 sounding of whistles on the locomotives of such corporation at 

8 any specified grade crossings of the tracks of such corporation with 

9 any highway or public way. The corporation which is subject to 

10 the provisions of such order shall thereafter, until the order shall 

11 have been modified or annulled by the board, conform in all respects 

12 to the terms thereof. 

1 Section 190. Every railroad corporation shall cause boards, signboards at 

2 well supported by posts or otherwise at such height as to be easily way| mgs of 

3 seen by travellers, and not obstructing travel, containing on each afl.^'^g. 

4 side in capital letters at least nine inches long the following inscrip- \^ fff' | \- 

5 tion, — Railroad Crossing — Look out for the Engine, — to be ^■ 6 f- 8 6 1 3, '| 2 84 - 

6 placed and constantly maintained across each highway or town way 1872) 191. 

7 where it is crossed by the railroad at the same level ; or the corpo- mj>\ 219! 

8 ration may substitute therefor warning boards on each side of the p.'s. 112, §164. 

9 crossing, of such form, size and description as the board shall ap- il Mass! 135. 
10 prove. 

1 Section 191. The mayor and aldermen of a city or the select- "^ i J* cro ] s 1 8i ^ s8 

2 men of a town in which a travelled place is crossed by a railroad at places, when. 

• 1859 125 § 2 

3 the same level, if of opinion that it is necessary for the better g. s. 63,' § 8.5. 

4 security of the public that boards such as are described in the p.'s'. 112' § 165". 

5 preceding section should be maintained at such travelled place, may i4oiass 98 238. 

6 in writing request the railroad corporation to erect and maintain 170 Mass! 436. 

7 them. If it refuses or neglects so to do, they may apply to the 

8 county commissioners. If the commissioners, after notice and a 

9 hearing, decide that such erection is necessary for the better security 

10 of the public, the corporation shall comply with their decision and 

11 shall pay the costs of the application. If they decide that it is not 

12 necessary, one-half of such costs shall be paid by the city or town 

13 and one-half by the corporation. 

1 Section 192. The board, after notice to a railroad corporation Gates, etc., at 

2 whose road crosses a highway, town way or travelled place at the i83o S , s u| 8 §§ 4, 6. 

3 same level, and a hearing, may direct in writing that gates shall be ^'49,'2^2, § §§°i-3. 

4 erected at said crossing across said way or place and that an agent }§£; fj{; 

5 be stationed thereat to open and close such gates when an engine or £ 5 | " 2 6 ^- §§ 8& _ 

6 train passes, or that a flagman be stationed at the crossing, who fV^ §3 

7 shall display a flag when an engine or train passes, or that such is65|289!§2! 

8 crossing shall be provided with such an electric signal as the board p.'s. 112', § lee'. 

9 determines the better security of human life or the convenience of J^; Mo! 

10 the public travel requires, and the corporation shall comply with JgjgS; $J; 

11 Such Order. 153 Mass. 167. 

1 Section 193. The supreme iudicial court shall have jurisdiction Enforcement 

~ . . „ \. .1,1 •• e j.i j* of preceding 

2 in equity to enforce compliance with the provisions 01 the preceding sections. 

3 three sections, and a railroad corporation which unreasonably neg- e.^.89,'§81. 

4 lects to comply with an order or decision made under the provisions gjf; $A%; 

5 of the preceding two sections shall forfeit not more than one thou- i|M. |j*. « *» 

6 sand dollars for every such neglect. p. s. 112, §§ 164, 168. 



1024 



RAILROAD CORPORATIONS AND RAILROADS. [CHAP. 111. 



Signals at 
overhead 
crossings. 
1891, 129. 



Section 194. The board may require a railroad corporation 1 

whose railroad crosses a highway by a crossing above the level of 2 

the highway to give such signal of the approach of trains to any 3 

such crossing as the board may designate. The board may in each 4 

case determine the nature of the signal to be given and, in its 5 

discretion, may require an automatic signal. The supreme judicial 6 

court shall have jurisdiction in equity to compel railroad corpora- 7 

tions to comply with orders made by the board under the provisions 8 

of this section. 9 



standing wood Section 195. If the view of a railroad crossing or highway at 1 

i889 r 37i mg8- grade is obstructed by standing wood in woodlands, the railroad 2 

corporation or ten citizens of a town may petition the county com- 3 

missioners for the county in which such crossing is situated for the 4 

removal of such standing wood ; and the commissioners after notice 5 

and a hearing, shall make such orders as to such removal as the & 

public safety demands. They shall also prescribe the limits within 7 

which such standing wood shall be taken and shall determine the 8 

damage sustained. Such damage and the expense incident thereto 9 

shall be assessed and collected in the manner provided for the taking 10 

of land by railroad corporations, and shall be paid by the railroad 11 

corporation. Either party who is aggrieved by the decision of the 12 

commissioners, may appeal therefrom in the manner provided in 13 

section one hundred and three. 14 



Penalty on 
corporation 
for obstructing 
highways, etc. 
1854, 378. 
G. S. 63, § 68. 
1871, 83, 316. 
1874, 372, § 129. 
V. S. 112, § 169. 
1895, 173. 
112 Mass. 412. 
135 Mass. 550. 
156 Mass. 159. 
169 Mass. 403. 



Section 196. No railroad corporation and no receiver or assignee 1 

thereof, or its or his servants or agents, shall wilfully or negligently 2 

obstruct or unnecessarily or unreasonably use or occupy a highway, 3 

town way or street, nor in any case obstruct, use or occupy it with 4 

cars or engines for more than five minutes at one time ; and if a 5 

highway, town way or street has been thus used or occupied with 6 

cars or engines, no railroad corporation, its receivers or assignees, 7 

shall again use or occupy it with the cars or engines of a freight 8 

train until a sufficient time, not less than three minutes, has been 9 

allowed for the passage across the railroad of such travellers as 10 

were ready and waiting to cross when the former occupation ceased. 11 

A corporation, receiver or assignee who violates the provisions of 12 

this section shall forfeit one hundred dollars. 13 



w^ys^bycars* Section 197. Upon an application to the board, according to the 1 

regulated. provisions of section sixteen, which states that a crossing of a rail- 2 

road with a highway, town way or street at the same level is 3 

improperly used by a railroad corporation with its freight engines, 4 

freight cars or freight trains to the unreasonable inconvenience or 5 

danger of the public, said board, after due notice, shall hear the par- 6 

ties ; and, if public convenience or safety so requires, it may direct 7 

that after a date to be fixed by it such railroad corporation shall not 8 

use such crossing or any part thereof for making up, connecting or 9 

disconnecting freight trains, or the engines or cars of such trains, 10 

or for the purpose of distributing freight or freight cars ; and to 11 

prevent the same may prescribe and direct such changes to be made 12 

in the construction of side tracks, branches and connections, in 13 

proximity to such crossings, and such regulations limiting the use 14 

of such crossings, as may be necessary. The board may at any time 15 



Chap. 111.] railroad corporations and railroads. 1025 

16 modify its order after a hearing and for cause shown. The supreme 

17 judicial court shall have jurisdiction in equity on application of the 

18 attorney general to enforce compliance with any order made under 

19 the provisions of this section. 

Equipment of Engines, Cars, Trains, etc. 

1 Section 198. Railroad corporations which are subject to the Electricity a 

2 provisions of this chapter may operate their railroads by electricity. SsbJu^ ™ 5 *' 

1 Section 199. A railroad or street railway corporation which is Meigs system. 

2 organized or operated under the laws of this commonwealth may 1890 ' 368 ' § x ' 

3 build and use the Meigs system of elevated railway if each city in 

4 which the tracks of said corporation or any part thereof are located, 

5 by vote of a majority of all the members of the city council thereof, 

6 and each town in which such tracks or portion thereof are located, 

7 by vote taken by ballot at a town meeting, assent thereto and if the 

8 location in Boston shall first have been approved by the board ; but 

9 no portion thereof shall be built upon any part of Boston common. 

1 Section 200. Every railroad corporation shall cause a good and brake e men d 

2 sufficient brake to be attached to every car used upon its railroad i||7, 226, § s. 

3 for the transportation of passengers, and to every car used for the g. s. 63,'§§ 8i, 

4 transportation of freight, except four-wheel cars used only for 1869, 426. 

5 freight; and shall cause at least one trusty and skilful brakeman for p. s'. 112, § 170. 

6 every two cars in a passenger train to be stationed thereon and one 

7 such brakeman upon the last car of every freight train, which car 

8 shall always be equipped with a good and sufficient brake. A cor- 

9 poration which violates any provision of this section shall forfeit 
10 not more than one hundred dollars. 

1 Section 201. A railroad corporation, in moving traffic between safety ap- 

2 points in this commonwealth, shall not use any locomotive which is freight trains. 

3 not equipped with a power driving wheel brake and appliances for 1895 ' 362 ' § 1- 

4 operating the train brake system ; nor run any train in such traffic 

5 unless a sufficient number of cars in it are so equipped with power or 

6 train brakes that its speed can be controlled by the engineman of 

7 the locomotive which is drawing such train, without the use of the 

8 common hand brakes by the brakemen. When such corporation 

9 has equipped a sufficient number of its cars with such power or train 

10 brakes, it may lawfully refuse to receive from connecting lines of 

11 railroad any cars used in such traffic which are not sufficiently 

12 equipped with such power or train brakes as will work and readily 

13 interchange with the brakes in use on its own cars. 



o v 



1 Section 202. A railroad corporation which operates a railroad foup^rson 

2 or an}^ portion thereof within this commonwealth shall cause to be f^^™ 1-8 - 

3 placed upon both ends of every freight car owned by it and which 

4 it may lawfully use such automatic or other safety coupler as the 

5 board, after an examination and test, may prescribe, and the board 

6 may annul any such requirement made by it. The supreme judi- 

7 cial court, upon the application of the attorney general, may enforce 

8 the provisions of this section. 



1026 



RAILROAD CORPORATIONS AND RAILROADS. [CHAP. 111. 



Automatic 
couplers for 
freight cars. 
1895, 362, § 2. 



Grab irons. 
1895, 362, § 3. 



Section 203. A railroad corporation, in moving traffic between 
points in this commonwealth, shall not haul or permit to be hauled 
or used on its lines any car which is not equipped with couplers 
coupling automatically by impact, and which can be uncoupled in 
some other way than by men going between the ends of the cars. 

Section 204. A railroad corporation, in moving traffic between 
points in this commonwealth, until otherwise ordered by the board, 
shall not use any car, except flat cars equipped with automatic 
couplers, which is not provided with secure grab irons or hand 
holds on the ends and sides for greater security to men in coupling 
and uncoupling cars. 



1 
2 
3 
4 
5 

1 

2 
3 
4 
5 
6 



Standard 
height of 
drawbars for 
freight cars. 
1895, 362, § 4. 



Section 205. The standard height of drawbars for freight cars, 1 

measured perpendicularly from the level of the top of the rails to 2 

the centres of the drawbars, shall be thirty-four and one-half inches 3 

for standard gauge railroads and twenty-six inches for narrow 4 

gauge railroads, with a maximum variation from such standard 5 

height, in either case, of three inches between the drawbars of 6 

empty and loaded cars ; and no freight car with drawbars which 7 

do not comply with the above standard, whether loaded or un- 8 

loaded, shall be used in moving traffic between points in this com- 9 

mo n wealth. 10 



Penalty. 
1895, 362, § 5. 



Section 206. A railroad corporation which violates any of the 1 

provisions of sections two hundred and one and two hundred and 2 

three to two hundred and five, inclusive, shall, for each offence, 3 

forfeit one hundred dollars which shall be recovered in an action 4 

of tort to the use of the commonwealth by the attorney general or 5 

the district attorney for the district in which such offence was 6 

committed. 7 



Limitation of 
preceding 
sections. 
1S95, 362, § 5. 



Section 207. The provisions of sections two hundred and one 1 
and two hundred and three to two hundred and six, inclusive, shall 2 
not apply to trains composed of four-wheel cars, or to locomotives 3 

4 



used in hauling such trains 



Extension of 
time for 
equipment. 
1895, 362, § 6. 



Section 208. The board of railroad commissioners may from 1 

time to time, after hearing and for good cause, exempt, until a date 2 

fixed by it, any railroad corporation from the requirements of sec- 3 

tions two hundred and one and two hundred and three to two hun- 4 

dred and five, inclusive. 5 



Assumption 
of risk by 
employee 
restricted. 
1895, 362, § 7. 



Section 209. An employee of a railroad corporation who is 1 

injured by any locomotive, car or train which is used contrary to 2 

the provisions of sections two hundred and one and two hundred 3 

and three to two hundred and five, inclusive, shall not be con- 4 

sidered to have assumed the risk of such injury, although he con- 5 

tinues in the employment of such corporation after the unlawful 6 

use of such locomotive, car or train has been brought to his 7 

knowledge. 8 



Tools to be 
carried with 
trains. 



Section 210. Every railroad corporation shall equip each of its 1 
trains, for use in case of accident, with two guide plates, two jack 2 



Chap. 111.] railroad corporations and railroads. 1027 

3 screws, two crowbars, one pinch bar, one claw bar, one spike 1870,372. 

4 hammer, two sharp axes, and ropes or chains suitable for hauling ml; 372, § 131. 

5 cars ; and shall also equip each car of every passenger train which is S'sf," 54 2 § 1 171 " 

6 owned or regularly used by it, including mail and baggage cars, with 

7 two sets of tools, consisting of an axe, a sledge hammer, a crowbar, 

8 hand saw and pail, which shall all be maintained in good condition, 

9 and one set of which shall be kept upon the inside and the other upon 

10 the outside of each such car, in a convenient place and in a manner 

11 approved by the board ; but one set shall be sufficient if so placed 

12 as to be accessible both from the inside and outside of such car. 

13 A corporation which violates the provisions of this section shall 

14 forfeit five hundred dollars. 

1 Section 211. Every passenger, baggage, mail and express car, safeguards 

2 which is owned or regularly used on any railroad in this common- im^, § 3!' 

3 wealth, in which heating apparatus may be placed, shall be provided 

4 with such safeguards against fire as the board in writing shall 

5 approve. A corporation which violates the provisions of this sec- 

6 tion shall forfeit three hundred dollars for each offence. 

1 Section 212. A passenger, mail or baggage car in this common- Heating of 

2 wealth shall not be heated by a stove or furnace which is kept inside lf^f, 36-f. ulate<i " 

3 the car or suspended therefrom unless it is temporarily necessary by 1891> m 

4 reason of an accident or other emergency, and no method of heating 

5 such cars nor heater shall be used until it shall have been approved 

6 in writing by the board ; but the board may from time to time grant 

7 such exemptions from the requirements of this section as may seem 
S to it necessary or reasonable and may grant permission to any rail- 
9 road corporation to make such experiments in heating its passenger 

10 cars as the board determines is proper. A corporation which vio- 

11 lates the provisions of this section shall forfeit not more than five 

12 hundred dollars. 

1 Section 213. A passenger car on a railroad shall not be lighted no t s to n if e er cars 

2 by naphtha, nor bv an illuminating- oil or fluid made in part of "gated by 

011 1 ■ 1 .n ■ ci 11 explosive oils. 

3 naphtha or which will ignite at a temperature 01 less than three ises, 286. 

4 hundred degrees Fahrenheit. A corporation which violates the i874| 372; § 132. 

5 provisions of this section shall forfeit not more than five hundred ' ' ' 

6 dollars . 

1 Section 214. Every passenger, baggage, mail and express car, Platform 

2 which is owned or regularly used on any railroad in this common- fgoo.W 

3 wealth shall be provided at each end thereof with platform gates of 

4 a pattern approved by the board. A railroad corporation which 

5 runs, hauls or permits to be hauled or used on its road any car in 

6 violation of the provisions of this section shall, for each offence, for- 

7 feit one hundred dollars to the use of the commonwealth, and the 
•8 attorney general or the district attorney for the district in which 
9 such violation occurred shall bring an action therefor. 



o 



1 Section 215. A railroad corporation which uses any vacuum Mufflers with 

2 brake shall provide and use on every locomotive equipped there- brakes" 

3 with a muffler or other appliance, approved in writing by the board, p 37 !*.!^!! Ivi," 

4 for deadening the noise incident to the operation of such brake ; m - 



1028 



RAILROAD CORPORATIONS AND RAILROADS. [CHAP. 111. 



Mufflers with 
safety valves. 
1879, 284, § 2. 
P. S. 112, § 175. 



Penalties. 
1879, 284, § 4. 
P. S. 112, § 176. 



Testing of 
locomotive 
boilers. 
1882, 73. 



but any other appliance may be used upon any locomotive for the 5 

purpose of experiment only, for not more than thirty days, but not 6 

upon more than two locomotives of the same corporation at any 7 

one time. Every application to the board for approval of such 8 

appliances shall be in writing ; and such approval may be revoked 9 

by the board by written notice to the corporation. 10 

Section 216. A railroad corporation which uses upon its locomo- 1 

tives a pop or other safety valve shall provide and use therewith a 2 

suitable and sufficient appliance for deadening the sound made by 3 

steam escaping therefrom, and, if it materially retards the escape of 4 

steam or increases the pressure upon the boiler, the corporation 5 

shall use an additional safety valve without such appliance, set at 6 

a higher point than the other but below the point at which ex- 7 

plosion is likely to occur. 8 

Section 217. A corporation which violates any provision of the 1 

preceding two sections shall forfeit not less than one hundred nor 2 

more than three hundred dollars for every locomotive used by it in 3 

violation thereof, and a further sum of five dollars for each day 4 

upon which such locomotive shall be run in violation thereof. 5 

Section 218. The board may make, and from time to time 1 

revise, regulations for testing the boilers of locomotives, and shall 2 

communicate such revision to every person or corporation which 3 

operates a railroad in this commonwealth. The tests under such 4 

regulations shall, if possible, be made by the master mechanic of 5 

the corporation, firm or person which constructs, repairs or uses 6 

such boilers. A person or corporation using a locomotive on a 7 

railroad in this commonwealth the boiler of which has not been 8 

tested in accordance with the provisions of this section shall be 9 

punished by a fine of twenty dollars for every day during which 10 

such use continues, to the use of the commonwealth. 11 



commodatfons' Section 219. Every railroad corporation shall furnish reason- 1 

g 4 | es'^iio a ^ e accomm °dations for the convenience and safety of passengers ; 2 

1874,' 372, § 133. and for every wilful neglect to provide the same shall forfeit not 3 

' ' less than five nor more than twenty dollars. 4 

and f bad4s ps Section 220. Every railroad corporation shall provide a uniform 1 

for employees. na t or cap and distinguishing badges, which shall be worn by all its 2 

§ 134. employees whose duties relate immediately to the transportation of 3 

1 ft7fi *?^ J. */ ■/ ■*• 

p. s. us, § 178. passengers or their baggage. A corporation which neglects to pre- 4 

scribe and furnish such uniform hat or cap and badges shall forfeit 5 

one hundred dollars for each week of such neglect ; and if such an 6- 

employee neglects to wear the same when on duty, the corporation 7 

which employs him shall for each case of such neglect forfeit 8 

twenty-five dollars ; and no employee, unless wearing his uniform 9 

hat or cap and badge, shall be permitted to exercise any authority 10 

or to perform any of the duties of his office. 11 



ness r e b xa n mina- Section 221. A railroad corporation shall not employ any 1 

tion for. person or keep him in its employ in a position which requires the 2 

p. s. 112, § 179. employee to distinguish form or color signals, unless he has been 3 

1883, 125. 



Chap. 111.] railroad corporations and railroads. 1029 

4 examined for color-blindness or other defective sight by a com- 

5 petent person employed by the corporation and has received a 

6 certificate that he is not disqualified for such position by color- 

7 blindness or other defective sight. A railroad corporation which 

8 violates the provisions of this section shall forfeit one hundred 

9 dollars. 

1 Section 222. The board may require railroad corporations to Further 

2 equip their cars with such other appliances as in its judgment are l^at^f." 

3 necessary for the further protection of life in all passenger trains 

4 which are used in this commonwealth. 

Inspection of Equipment. 

1 Section 223. Eailroad and railway inspectors who are ap- Duties of 

2 pointed under the provisions of section eight shall, under the direc- IsaJfsM, 1 "^ 3, 4. 

3 tion of the board, examine the roadbed, tracks, crossings, stations, 1897 > 376 >§ 1 - 

4 rolling stock, machinery, equipments, appliances and grounds used 

5 in or in connection with the operation of railroads or street railways ; 

6 and if they are considered by an inspector not to be in compliance 

7 with the requirements of law, or to be in such condition as to 

8 endanger the safety of the public or of employees, he shall so 

9 report in writing to the board, which, if it considers it necessary, 

10 shall give notice to the corporation or to the persons who own or 

11 operate the railroad or street railway of such failure to comply 

12 with the requirements of the law or of such defects, with such 

13 recommendation as it may consider necessary or proper. 

1 Section 224. An inspector shall, under the direction of the investigation 

2 board, investigate as promptly as may be any accident upon or re- i894, C 535, e §5 8 .' 

3 suiting from the operation of a railroad or street railway which 189 ~> 376 > § 2. 

4 causes the death or risks the life of a passenger, employee or other 

5 person, and shall report thereon to the board. He shall attend the 

6 inquest held in the case of any such death by accident and may 

7 cause any person who has knowledge of the facts or circumstances 

8 connected with such death to be summoned as a witness to testify 

9 at the inquest. 

Fares, Tolls, Charges and Regulations. 

1 Section 225. A railroad corporation may establish for its sole Rates of fare, 

2 benefit fares, tolls and charges upon all passengers and property iishedand 

3 conveyed or transported on its railroad, at such rates as may be r. v s S 39;§s3. 

4 determined by its directors, and may from time to time by its j*^ -J3. §112. 

5 directors regulate the use of its road; but such fares, tolls and ^I'^l'liso 

6 charges, and such regulations, shall at all times be subject to revision 12 Gray,' iso. ' 

7 and alteration by the general court or by such officers or persons as 170 Mass! 205. 

8 it may appoint for the purpose, anything in the charter of a railroad 

9 corporation to the contrary notwithstanding. 

1 Section 226. A railroad corporation shall not demand or receive Extra fares 

2 for any single ticket bought or fare paid on a train 01 elsewhere isHtIz. 

3 than at its ticket offices more than ten cents in excess of the tariff 1900, 154 - 

4 rates charged at its ticket offices. When such excess is received, 



1030 



RAILROAD CORPORATIONS AND RAILROADS. [CHAP. 111. 



the conductor or other person receiving it shall give to the passenger 5 

a printed certificate which shall entitle him to receive the excess so 6 

paid at any station of the corporation in exchange for such certifi- 7 

cate. A railroad corporation which violates any provision of this 8 

section shall be punished by a fine of not less than ten nor more than 9 

fifty dollars. 10 



Commutation 
tickets. 
1900, 395. 



Section 227. Every railroad corporation which has a terminus 1 

in Boston, except the Boston, Revere Beach and Lynn Railroad 2 

Company, shall sell a commutation ticket good for not more than 3 

twenty-five trips between Boston and a station in the suburban dis- 4 

trict, so called, which is named therein at the lowest rate for each 5 

trip which was charged between said points on the first day of July 6 

in the year nineteen hundred, except the rates charged for season 7 

tickets and for tickets on workingmen's trains. 8 



Transportation of Passengers. 

Section 228. A railroad corporation may make contracts for 1 

the conveyance of passengers upon designated trains for a specific 2 

distance at fixed times, at such reduced rates of fare as the parties 3 

may agree upon. Tickets may be issued for such passengers, upon 4 

which shall be plainly printed the terms upon which they may be 5 

used. Such tickets shall not be transferable without the consent 6 

of the corporation, nor shall they entitle the holder to ride upon a 7 

train which is not therein designated. 8 



passengers at 
reduced rates. 
1871, 143. 
1874, 372, 5 135. 
P. S. 112, § 181. 



Bicycles as 
baggage. 
1900, 318. 



Section 229. A railroad corporation which owns or operates a 1 

railroad of standard gauge in this commonwealth shall check and 2 

transport between stations within the limits of this commonwealth, 3 

as baggage, and subject to the same charges, terms and liabilities as 4 

other baggage and to no other, one bicycle for each passenger who 5 

pays by a mileage book, by a ticket other than a season ticket, or 6 

in cash, the established fare, if it is not less than ten cents, exclusive 7 

of rebate. The weight of the bicycle shall be included in determin- 8 

ing the total weight of the baggage to be transported for such pas- 9 

senger. Such corporation shall not require such bicycle to be 10 

crated, covered or otherwise protected. 11 



Baggage 
checks. 
1854, 23. 
G. S. 63, § 111. 
1874, 372, § 136. 
P. S. 112, § 182. 
15 Gray, 447. 
7 Allen, 329. 



Section 230. Every railroad corporation shall, upon request, 1 

give checks to passengers for their baggage when delivered for trans- 2 

portation, and shall re-deliver the baggage to the passengers upon 3 

the surrender of such checks. A corporation which violates the pro- 4 

visions of this section shall forfeit ten dollars for each offence. 5 



fn^and 10 " 1 " Section 231. Every railroad corporation which has a terminus 1 

i8- e 2 ni 348 train8 ' * n Boston shall, upon the application of two hundred or more 2 

p. s'. 112, § 183. persons therefor, furnish on each week day a morning train in and 3 

an evening train out for distances not exceeding fifteen miles, or 4 

suitable cars attached to other trains, and reaching and leaving 5 

Boston at about six o'clock in the forenoon and afternoon, or at 6 

such hours as may be fixed by the board ; and for such trains, shall 7 

furnish season tickets good once a day each way for six days in the 8 



Chap. 111.] raijlroad corporations and railroads. 1031 

9 week, at a rate not exceeding, for yearly tickets, three dollars a 
10 mile and for quarterly tickets, one dollar a mile. 

1 Section 232. Every railroad corporation which has a terminus wqrkingmen-8 

2 in Boston shall furnish such number of workingmen's trams, not fm*m. 

3 less than two each way, as the board, upon a petition for such trains 

4 filed with it, shall in each case order. Such trains shall arrive at 

5 and depart from Boston between six and half past seven o'clock in 

6 the morning and between the same hours in the evening and special 

7 cars maj r be provided therefor. Season tickets, good once a day 

8 each wa} r for six days in the week, shall be furnished for such trains 

9 at a rate not exceeding, for yearly tickets, three dollars a mile, and 
10 for quarterly and weekly tickets, one dollar a mile. 

1 Section 233. Every railroad corporation shall sell to an express season tickets 

2 messenger or to a person who conducts a local express business, messenger. 

3 as provided in section two hundred and forty-one, in its trains or lm ' m ' §§ 2> 5- 

4 cars within this commonwealth, a season ticket for his personal 

5 transportation, at a price not exceeding that at which similar 

6 tickets are sold to passengers, upon receiving from him a release 

7 of all right, to whomsoever accruing, to damages or compensation 

8 for death or for any personal injury received by him while riding 

9 on such ticket. The supreme judicial court or the superior court 

10 shall have jurisdiction to enforce the provisions of this section by 

11 injunction, mandamus or other suitable process. 

1 Section 234. Any person who, being governor, lieutenant Free passes to 

•/ i. o o 7 state officers 

2 governor, member of the council, member or member-elect of the forbidden. 

3 general court, justice of the supreme judicial court, justice of the ' • ' 

4 superior court, judge of probate, justice of a police, district or 

5 municipal court or a county commissioner, who requests, for him- 

6 self or another, accepts or uses any free pass upon a railroad, or 

7 any ticket which entitles him to transportation upon a railroad, for 

8 which he has paid a less price than is demanded of the public 

9 generally, and an officer, agent or employee of a railroad corporation 

10 who issues, delivers or offers to any person hereinbefore mentioned 

11 or to or for any other person at the request, solicitation or procure- 

12 ment of any such person a free pass or any ticket which entitles 

13 him to transportation at a less rate of fare than is demanded of the 

14 public generally, shall be punished by a fine of not less than one 

15 hundred nor more than one thousand dollars. 

1 Section 235. A railroad corporation which does business in women, etc., 

2 this commonwealth shall not require women or children to ride in C ar S 8 m ° king 

3 smoking cars. For a violation of the provisions of this section the 1888 > 176 - 

4 corporation, or any officer or employee thereof, shall be punished by 

5 a fine of not less than ten nor more than fifty dollars for each offence. 

Transportation of the Mails. 

1 Section 236. Every railroad corporation shall, upon request ^J^fg^a 

2 of the postmaster general or of an authorized agent of the post office states mails, 

3 department, carry the mails at such times and upon such trains as i8e7,&i,§i. 

4 may be desired by him upon the terms provided in the following p ' 

5 two sections. „_ 



1032 



RAILROAD CORPORATIONS AND RAILROADS. [CHAP. 111. 



Compensation 
for carrying 
mails, how 
determined. 
1867, 351, § 2. 
P. S. 112, § 185. 



Revision of 

rates. 

1867, 351, § 3. 

P. S. 112, § 186. 



Receipts to 
shippers of 
merchandise. 

1872, 308. 
1874, 372, § 137. 
P. S. 112, § 187. 



Section 237. A corporation which is unable to agree with the 1 

postmaster general or other proper officer of the United States as to 2 

the compensation to be paid for such transportation maj notify the 3 

postmaster general of its unwillingness to carry the mails upon the 4 

terms proposed ; and after the expiration of three months from 5 

the depositing of such notice in a post office in this commonwealth, 6 

addressed to the postmaster general, such corporation shall be ab- 7 

solved from the duty imposed in the preceding section, unless he or 8 

some officer or agent of the post office department within that time 9 

has filed a petition in the supreme judicial court in any county, pray- 10 

ing for the appointment of three commissioners to fix the price to be 11 

paid by the corporation for such service ; and the court, after due 12 

notice to the corporation, shall appoint three commissioners to hear 13 

the parties and determine such compensation, the award of a major 14 

part of whom, being made to and confirmed by said court, shall be 15 

final as to all past service and for the period of two years after such 16 

confirmation. 17 

Section 238. Upon application to said court by either party to 1 

such proceedings at any time after the expiration of two years from 2 

the confirmation of such award, the matter may be reopened, and 3 

the same or other commissioners shall rehear the parties, and the 4 

award of said commissioners or of a major part of them, when made 5 

to and confirmed by said court, shall be binding on the parties for 6 

two years more, when like proceedings may again be had on petition 7 

of either party. 8 

Transportation of Merchandise. 

Section 239. If a person delivers a commodity which is not 1 

extra hazardous to a railroad corporation for transportation, it shall, 2 

without additional charge, give to him, if requested at the time of 3 

such delivery, a receipt describing the same or the marks and num- 4 

bers on packages so delivered. A corporation which refuses to 5 

give such receipt shall forfeit fifty dollars to the person who is en- 6 

titled thereto. 7 



Equal facili- 
ties for trans- 
portation. 
1867, 339. 
1874, 372, § 138. 
P. S. 112, § 188. 
115 Mass. 116. 
128 Mass. 326. 
147 Mass. 35, 
266. 
165 Mass. 398. 



— to local 

expressmen. 

1894, 469, §§ 1, 

5,6. 

165 Mass. 398. 



Section 240. Every railroad corporation shall, subject to the 1 

provisions of section two hundred and forty-five, give to all per- 2 

sons reasonable and equal terms, facilities and accommodations for 3 

the transportation upon its railroad of themselves, their agents and 4 

servants, and of their merchandise and other property and for the 5 

use of its depot and other buildings and grounds ; and, at any point 6 

where its railroad connects with another railroad, it shall give rea- 7 

sonable and equal terms and facilities of interchange. 8 

Section 241. The provisions of the preceding section shall 1 

apply to all persons engaged only in a local express business for the 2 

forwarding of express matter between points within the common- 3 

wealth in the trains or cars of any railroad corporation, and to 4 

persons desiring to engage therein who obtain the recommendation 5 

of the board therefor, and who agree in writing to indemnify the 6 

corporation against all loss of and damage to any property which is 7 

carried by them on its trains. Such recommendation shall be given 8 

only after notice to all parties interested and a hearing thereon, and 9 

with due regard, among other considerations, to the public interest. 10 



Chap. 111.] railroad corporations and railroads. 1033 

11 Such corporation may contract with one or more persons for the 

12 express service over its road or system, subject to the rights of such 

13 persons as may then be engaged in, or shall have obtained the rec- 

14 ommendation aforesaid to conduct, such local express business 

15 thereon between points within this commonwealth under the pro- 

16 visions of this section ; and the terms, facilities and accommoda- 

17 tions provided for such last named persons shall not be unreasonable 

18 or unequal, having regard to the amount and character of the service 

19 and also to such reasonable regulation of said business as may be 

20 for the public interest and the efficient operation of the railroad. 

21 The provisions of this section shall not deprive any railroad cor- 

22 poration of any right which it has under its charter or under general 

23 law, to perform ail the transportation of property upon its road. 

24 The supreme judicial court or the superior court shall have juris- 

25 diction to enforce the provisions of this section by injunction, 

26 mandamus or other suitable process. 

1 Section 242. Every railroad corporation shall promptly for- Merchandise to 

2 ward merchandise consigned to or directed to be sent over another prompTiy rded 

3 road connecting with its road, according to the directions contained Gpi.^'/rk 

4 thereon or accompanying the same, and shall not receive and ^ 7 | i^' §189 

5 forward over its road merchandise consigned, ordered or expressly 

6 directed to be received and forwarded by a different route. 

1 Section 243. No railroad corporation shall charge or receive charges for 

2 for the transportation of freight to any station on its road a greater oTir^ghtf 41011 

3 amount than is at the time charged or received for the transporta- Jf^; f^f; § 140- 

4 tion of the like class and quantity of freight from the same original ^Mass. 561 90 * 

5 point of departure to a station at a greater distance on its road in 

6 the same direction. Two or more railroad corporations whose 

7 roads connect shall not charge or receive for the transportation of 

8 freight to any station on the road of either of them a greater amount 

9 than is at the time charged or received for the transportation of the 

10 like class and quantity of freight from the same original point of 

11 departure to a station at a greater distance on the road of either 

12 of them in the same direction. In the construction of this section, 

13 the amount charged or received for the transportation of freight 

14 shall include all terminal charges ; and the road of a corporation 

15 shall include all the road in use by it, whether owned or operated 

16 under a contract or lease. 

1 Section 244. A railroad corporation which violates any pro- Penalties on 

2 vision of the preceding four sections, in addition to liability for all 1959, 209, § 2.' 

3 damages sustained by reason of such violation, shall for each offence S'-f/24o. § 1M " 

4 forfeit two hundred dollars, which shall be recovered in an action Jgll 5141 ' 

5 of tort to his own use by the party aggrieved, or to the use of the f^^'.yf- 

6 commonwealth by the attorney general or the district attorney of 

7 the district in which such violation was committed ; but no such 

8 action shall be maintained unless brought within one year after the 

9 date of such violation. 

1 Section 245. A railroad corporation shall not in its charges pisorimtaa. 

« ,» . 1 . • 1 • 'a. jl • -Li l- ■ tot> n i' 1 freight 

2 for the transportation of freight or in doing its freight business, rates for. 

3 make or give any undue or unreasonable preference or advantage to JS^'Jl; 225 . 



1034 



RAILROAD CORPORATIONS AND RAILROADS. [CHAP. 111. 



Transporta- 
tion of milk. 
1879, 206, §§1,3. 
P. S. 112, § 192. 
1893, 210, § 1. 



or in favor of any person, firm or corporation, nor subject any per- 4 

son, firm or corporation to any undue or unreasonable prejudice 5 

or disadvantage. 6 

Transportation of Milk. 

Section 246. A railroad corporation shall not receive, forward 1 

or deliver milk in large quantities over any portion of its line or 2 

furnish or allow to others facilities or advantages for so doing, 3 

under contract, lease or hiring of cars or otherwise, without at the 4 

same time furnishing or providing the same or equal facilities and 5 

advantages, as regards time, care and preservation of the milk and 6 

the return of the empty cans, for receiving, forwarding and deliver- 7 

ing milk by the can over the same portion of its line ; nor without 8 

establishing a tariff for the milk by the can which is fairly pro- 9 

portionate to the rate or price which it charges or receives as 10 

aforesaid for milk in large quantities. 11 



— tariff for, 
how fixed. 
1879, 206, § 2. 
P. S. 112, § 193. 
1893, 210, § 2. 
158 Mass. 1. 



Section 247. Upon the petition of one or more persons who 
desire to forward milk by the can over any railroad or any portion 
or portions thereof, the board of railroad commissioners, after notice 
to the railroad corporation and a hearing, shall ascertain and com- 
pare the tariff established as aforesaid for milk by the can with the 
rate or price charged or received as aforesaid for milk in large 
quantities over such railroad or such portion or portions thereof; 
and if the former is, in the judgment of the board, unreasonably 
high, as compared with the latter, the board shall revise said tariff 
and shall fix such rates for milk by the can as in its judgment are 
fairly proportionate to the rate or price for milk in large quan- 
tities, including in both cases the same care and preservation of 
the milk and the return of the empty cans, as aforesaid ; and shall 
notify the corporation in writing of the rates by the can so fixed 
over such railroad or such portion or portions thereof; but milk 
received by one railroad corporation from another shall not be 
considered as received at the point of junction of the two roads, in 
comparing and fixing as aforesaid rates for milk by the can tendered 
at such point of junction. 



1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 



Penalties. 
1879, 206, § 3. 
P. S. 112, § 194. 
1893, 210, § 3. 



Section 248. A railroad corporation which refuses or neglects 1 

to receive, forward or deliver milk by the can over its railroad or 2 

any portion thereof at the tariff rates therefor, so fixed and notified 3 

to it by the board, shall forfeit to the person who tenders the same 4 

five dollars for each and every can of milk which it so refuses to 5 

receive or neglects to forward and deliver at the said tariff rates. 6 



Walking on 
track. 

1853, 414, § 4. 
G. S. 63, § 102. 
1S74, 372, § 148. 



OFFENCES AND PENALTIES. 



Section 249. Whoever without right knowingly stands or walks 1 
on a railroad track shall forfeit not less than five nor more than fifty 2 

dollars. P. S. 112, § 195. 142 Mass. 300. 3 



Loitering in 
station. 



Section 250. Whoever without right loiters or remains within 1 
ills' ilo 1 1 49 ' a s * a ^ on bouse of a railroad corporation or upon the platform or 2 
p. s'. ii2, § we. grounds adjacent to such station, after being requested to leave the 3 



Chap. 111.] railroad corporations and railroads. 1035 

4 same by a railroad police officer, shall forfeit not less than two nor 

5 more than twenty dollars. 

1 Section 251. Whoever fraudulently evades or attempts to evade Evading pay- 

2 the payment of a toll or fare lawfully established by a railroad cor- maf'wift™' 

3 poration or street railway company, either by giving a false answer &?gf. es/^us, 

4 to the collector of the toll or fare, or by travelling beyond the point Jf^ 229 §33 

5 to which he has paid the same, or by leaving the train or car with- J|^ ||i', § jjj^ 

6 out having paid the toll or fare established for the distance travelled, p s'. 112, § 197. 

. . 143 Mass 68 

7 or otherwise, shall forfeit not less than five nor more than twenty 174 Mass! 40L 

8 dollars. Whoever does not upon demand first pay such toll or fare 

9 shall not be entitled to be transported for any distance, and may be 

10 ejected from a street railway car ; but no person shall be removed 

11 from a car of a steam railroad corporation except as provided in 

12 section eighteen of chapter one hundred and eight, nor from a train 

13 except at a regular passenger station. 

1 Section 252. Whoever rides, drives or leads ahorse or other Riding or 

2 beast on a railroad which is opened for use without the consent of onaraiiroad. 

3 the corporation or its agent, except in the proper use of a street q\ 1; H[ f 103. 

4 railway, of a highway or other way, or of a travelled place at a p 87 !'. 112, §198. 

5 crossing of such railroad therewith upon the same level, shall forfeit 

6 not more than one hundred dollars for each offence, and be liable 

7 for any damage which results therefrom. 

1 Section 253. The person through whose fault or negligence a Negligence in 

2 horse or other beast goes at large within the limits of a railroad beast upon 

3 which is opened for use shall forfeit not more than twenty dollars r/s!°3V§ 86. 

4 for each offence, and be liable for any damage which results there- Svf/ara.lm 

5 from. p. s. 112, § 199. 

1 Section 254. Whoever enters upon or crosses a railroad at a Neglect to 

2 private way which is closed by gates or bars, and neglects to close private cross- 

3 them securely, shall forfeit not less than two nor more than ten 1862, 123. 

4 dollars for each offence, and be liable for any damage which results p 8 . 7 |'.m',|m 

5 therefrom. 

1 Section 255. Whoever wilfully and maliciously obstructs the obstructing 

n . „ . m j • • • passage of 

2 passing of any engine or car on a railroad, or in any way injures engine or car 

3 such road or anything pertaining thereto or any materials or imple- R D s a 39,°§77. 

4 ments for the construction or use thereof, or aids or abets in such ^74/3^ Vim. 

5 trespass, shall for each offence forfeit to the use of the corporation p. s. 112, § 201. 

6 treble the amount of damages proved to have been sustained there- 

7 by ; and may be further punished by a fine of not more than one 

8 thousand dollars or by imprisonment for not more than one year. 

1 Section 256. Whoever commits any of the acts mentioned in Punishment, 

_ . ,. .. , jii- i tj? when life is 

2 the preceding section in such manner as thereby to endanger lite endangered. 

3 shall be punished as provided in said section or by imprisonment <j. s'. es, § ioe. 

4 in the state prison for not more than twenty years. p. s. 112, § 202. 1874, 37 ' 2 ' § 155 * 



1 Section 257. Whoever, himself or by others, obstructs an ^SSmS^F 

2 engine or car passing upon a railroad, or endangers the safety endangering 

r> /»° I ,. OJr ,1 ■ 1 •j.j.'L • passengers, 

3 of persons conveyed in or upon the same, or aids or assists therein, | te . 

4 shall be punished by solitary imprisonment in the state prison for ^I.Wiot. 



1036 



RAILROAD CORPORATIONS AND RAILROADS. [CHAP. 111. 



1874, 372, § 156. 
P. S. 113, § 203. 
109 Mass. 345. 



Attempt to ob- 
struct engine 
or car. 
1852, 186, § 2. 
G. S. 63, § 108. 
1874, 372, § 157. 
P. S. 112, § 204. 
1890, 332. 
105 Mass. 53. 



Wilfully stop- 
ping train. 
1879, 177. 
P. S. 112, § 205. 
109 Mass. 345. 



not more than ten days and by imprisonment thereafter in said '5 

prison for not more than twenty years. 6 

Section 258. Whoever wilfully does or causes to be done any- 1 

thing with intent to obstruct an engine or car passing upon a rail- 2 

road, or with intent to endanger the safety of persons conveyed in 3 

or upon the same, or aids or assists therein, shall be punished by 4 

imprisonment in the state prison for not more than twenty years 5 

or by a fine of not more than five hundred dollars and imprison- 6 

ment in jail for not more than one year, and shall for each offence 7 

forfeit to the use of the corporation treble the amount of damages 8 

proved to have been sustained thereby. 9 

Section 259. Whoever wilfully and maliciously stops a train 1 

on a railroad or causes it to be stopped for the purpose of entering, 2 

leaving or wantonly delaying the same shall be punished by a fine 3 

of not more than one hundred dollars or by imprisonment for not 4 

more than one month. 5 



ThrowiDg 
missiles or 
assaulting 
engineer, etc. 
1880, 110. 
P. S. 112, § 206. 
145 Mass. 403. 



Section 260. Whoever wilfully throws or shoots a missile at a 1 

locomotive engine or railroad or street railway car, or at a person 2 

on such engine or car, or in any way assaults or interferes with a 3 

conductor, engineer, brakeman, motorman or driver while in the 4 

performance of his duty on or near a locomotive engine, car or train, 5 

or on or near a street railway car, shall be punished by a fine of not 6 

more than one hundred dollars or by imprisonment for not more 7 

than one year, or by both such fine and imprisonment. A person 8 

so offending may be arrested without a warrant by an officer author- 9 

ized to serve criminal process and kept in custody in jail or other 10 

convenient place not more than twenty-four hours, Sundays and 11 

legal holidays excepted, at or before the expiration of which time 12 

he shall be taken before a proper court or magistrate, and proceeded 13 

against according- to law. 14 



Tampering 
with tools. 
1882, 54, § 2. 



Injuring 

signal. 

1876, 63. 

P. S. 112, § 207 

1884, 5. 

1899, 252. 



Section 261. Whoever unlawfully uses, removes or tampers 1 

with any tools or appliances carried on the cars as required by 2 

section two hundred and ten shall be punished by a fine of not 3 

more than one hundred dollars or by imprisonment for not more 4 

than three months, or by both such fine and imprisonment. 5 

Section 262. Whoever unlawfully and intentionally injures, 1 

molests or destroys any signal of a railroad or street railway corpo- 2 

ration, or any line, wire, post or other structure or mechanism 3 

used in connection with such signal on a railroad or street railway, 4 

or destroys or in any way interferes with the proper working of 5 

such signal, shall be punished by a fine of not more than five 6 

hundred dollars or by imprisonment for not more than two years, 7 

or by both such fine and imprisonment. 8 



Notice of 
accidents. 
1849, 172, § 2. 
G. S. 63, § 100. 
1869, 408, § 14. 



ACCIDENTS. 



Section 263. Every railroad corporation shall give immediate 1 
notice of an accident on its road, which results in a loss of life to 2 
the medical examiner of the county who resides nearest to the place 3 



Chap. UK] railroad corporations and railroads. 1037 

4 of accident, and shall also, within twenty-four hours, give notice i873,98,§2. 

5 to the board of any such accident or of any accident of the descrip- \m] f' 2 ' § 159- 

6 tion of accidents of which the board may require notice to be given . p< S- 112, § m 

7 For each omission to give such notice the corporation shall forfeit 

8 not more than one hundred dollars. 

1 Section 264. If, upon the trial of an action against a city or Liability 

2 town, the plaintiff recovers damages for an injury to his person personal* 03 " 

3 or property which was caused by reason of a defect in a highway, ^n,ln, § wo. 

4 within the location of a railroad, and if the corporation which owns p - s'. 112, § 209. 

5 the road is liable for such damages and has had reasonable notice to 

6 defend the action, the city or town may recover such damages and 

7 the costs of both plaintiff and defendant in the action from the cor- 

8 poration. 

1 Section 265. If an engineman, fireman or other agent of a Penalty on en- 

2 railroad corporation is guilty of negligence whereby an injury is toTmghgmce. 

3 done to a person or corporation, he shall be punished by a fine of g. 3 s. 63% § 9 7 5. 

4 not more than one thousand dollars or by imprisonment for not p 7 |' 112 1 210 

5 more than twelve months. 

1 Section 266. Whoever, having the management of or control —for gross 

2 of a railroad train while being used for the common carriage of mfmagement 

3 persons, is guilty of gross negligence in or in relation to the man- 1853, 418.' 

4 agement or control thereof, shall be punished by a fine of not more i87f,'3?2, § § 9 i62. 

5 than five thousand dollars or by imprisonment for not more than p " s< 112, § 2n " 

6 three years. 

1 Section 267. If a corporation which operates a railroad or a penalty on 

2 street railway, by reason of its negligence or by reason of the un- for'ioss o? nfe 

3 fitness or gross negligence of its agents or servants while engaged gen°Je S etc egU " 

4 in its business, causes the death of a passenger, or of a person who Jjj*o> so- c<: , „ 
. . . ,, . „-. -ii- P . ,, 1853 > iU > §§ 1-3. 

5 is m the exercise of due care and who is not a passenger or 111 the p- s. 63, §§ 97- 

6 employ of such corporation, it shall be punished by a fine of not 1m, 229, §§ 37, 

7 less than five hundred nor more than five thousand dollars which isct, 164. 

8 shall be recovered by an indictment prosecuted within one year If. 1 ' 381 ' §§ 49, 

9 after the time of the injury which caused the death, and shall be \Hf \H' | § ] f • 

10 paid to the executor or administrator, one-half thereof to the use of p* 6 g m . 212 

11 the widow and one-half to the use of the children of the deceased ; or, iss3, 243.' 

12 if there are no children, the whole to the use of the widow; or, if iic'ush.'5i2. 

13 there is no widow, the whole to the use of the next of kin ; but a 10 Alien, 189. 

14 corporation which operates a railroad shall not be so liable for the loiMass.m 

15 death of a person while walking or being upon its road contrary to Jos Mass! 7? 6 ' 

16 law or to the reasonable rules and regulations of the corporation. J|o Mass. 372. 

17 Such corporation shall also be liable in damages in the sum of not JUjjJj^-gJj- 

18 less than five hundred nor more than five thousand dollars, which 135 Mass! 44s! 

19 shall be assessed with reference to the degree of culpability of the 139 Mass! 238, 

20 corporation or of its servants or agents, and shall be recovered in Hi'iufss. 471. 

21 an action of tort, commenced within one year after the injury which 1^ Mass! 426! 

22 caused the death, by the executor or administrator of the deceased J^ Mass! Its 

23 for the use of the persons hereinbefore specified in the case of an in- «g. 

1 n 'i 1 ■ j« 1 • • j/i 168 Mass. 79, 

24 dictment. If an employee of a railroad corporation, being in the ex- 113,300. 

25 ercise of due care, is killed under such circumstances as would have 624. 



1038 



RAILROAD CORPORATIONS AND RAILROADS. [CHAP. 111. 



156 Mass. 316, entitled him to maintain an action for damages against such corpo- 
159'Mass. 3, 536. ration if death had not resulted, the corporation shall be liable in 
i6i Mass! It', the same manner and to the same extent as it would have been if 
fel'Mass. 66. the deceased had not been an employee. But no executor or 
163 Mass. 132, administrator shall, for the same cause, avail himself of more than 
164 Mass. 425. one of the remedies given by the provisions of this section. 

166 Mass. 492. 171 Mass. 33, 52, 164. 172 Mass. 211. 173 Mass. 136. 175 Mass. 181. 



26 

27 
28 
29 
30 
31 



Liability for 
damages in 
case of col- 
lision, etc. 
1871, 352. 
1874, 372, § 164. 
1881, 199, §§ 2, 
5,6. 

P. S. 112, § 213. 
120 Mass. 372. 
125 Mass. 64. 
129 Mass. 440. 
133 Mass. 383, 
491. 

145 Mass. 286. 

146 Mass. 241. 
154 Mass. 402. 
159 Mass. 493. 
163 Mass. 132. 
172 Mass. 98. 



Section 268. If a person is injured in his person or property 1 

by collision with the engines or cars of a railroad corporation at a 2 

crossing such as is described in section one hundred and eighty-eight 3 

and it appears that the corporation neglected to give the signals 4 

required by said section, and that such neglect contributed to the 5 

injury, the corporation shall be liable for all damages caused by the 6 

collision, or to a fine recoverable by indictment as provided in 7 

the preceding section, or, if the life of a person so injured is lost, 8 

to damages recoverable in an action of tort, as provided in said sec- 9 

tion, unless it is shown that, in addition to a mere want of ordinary 10 

care, the person injured or the person who had charge of his per- 11 

son or property was, at the time of the collision, guilty of gross or 12 

wilful negligence, or was acting in violation of the law, and that 13 

such gross or wilful negligence or unlawful act contributed to the 14 

injury. 15 



Non-liability 
for acts of 
expressmen. 
1894, 469, § 3. 
170 Mass. 464. 



Section 269. A railroad corporation shall not be liable to any 1 

person for personal injuries which may be caused by the acts or 2 

omissions of any persons or companies who do an express business 3 

over its road or of their servants or agents. 4 



Loss by Are 
■caused by 
engine. 
1837, 226, §§ 9, 
10. 

1840, 85, § 1. 
O. S. 03, § 101. 
1864, 229, § 34. 
1871, 381, § 45. 
1874, 372, § 106. 
P. S. 112, § 214. 
1895, 293. 
13 Met. 99. 
4 Cush. 288. 
16 Grav, 71. 
2 Allen, 331. 
6 Allen, 87. 
8 Allen, 438. 
98 Mass. 414, 
422. 

103 Mass. 583. 
118 Mass. 543. 
121 Mass. 134. 



DAMAGES BY FIRE. 

Section 270. Every railroad corporation and street railway 1 

company shall be liable in damages to a person or corporation 2 

whose buildings or other property may be injured by fire communi- 3 

cated by its locomotive engines, and shall have an insurable interest 4 

in the property upon its route for which it may be so held liable, 5 

and may procure insurance thereon in its own behalf. If it is held 6 

liable in damages, it shall be entitled to the benefit of any insurance 7 

effected upon such property by the owner thereof, less the cost of 8 

premium and expense of recovery. The money received as 9 

insurance shall be deducted from the damages, if recovered before 10 

they are assessed ; and if not so recovered, the policy of insurance 11 

shall be assigned to the corporation which is held liable in dam- 12 

ages, and it may maintain an action thereon. 13 

145 Mass. 129. 169 Mass. 398. 171 Mass. 245. 165 U. S. 1. 



No prescrip- 
tive right in 
land of corpo- 
ration. 
1861, 100. 
1874, 372, § 107. 
P. S. 112, § 215. 



ENCROACHMENT ON LANDS OF CORPORATION. 

Section 271. No length of possession or occupancy of land 
which belongs to a railroad corporation by an owner or occupier 
of adjoining land, shall create in him or in a person who claims 
under him a right to such land of the corporation. 

146 Mass. 268. 161 Mass. 283. 



1 

2 
3 
4 



Chap. 111.] railroad corporations and railroads. 1039 

connecting railroads. 

1 Section 272. If a railroad constructed after the eighth day of Connecting 

2 April in the year eighteen hundred and seventy-two meets another panies ma^™~se 

3 railroad which terminates in the same city or town, or lawfully road S ot ers 

4 crosses another railroad at the same level therewith, the corporation iss?; 291,' §| 1,' I: 

5 by which either of said roads is owned may enter its road upon, fy d s - 68 ' §§ n8, 

6 unite the same with and use the road of the other ; if a railroad JfoYI' § 12; 

7 constructed after said day meets another railroad which passes is74, 372, § i65. 

8 through the same city or town, the corporation by which either of p. s. 112, § 216. 

9 said roads is owned may, with the written consent of the board and rd > >*-'•■- 

10 upon such terms as the board upon due hearing prescribes, enter its 

11 road upon, unite the same with and use the road of the other ; and 

12 if a railroad corporation whose road was constructed prior to said 

13 day is specially authorized to enter its road upon, unite the same 

14 with and use the railroad of another corporation, each of such 

15 corporations may enter upon, unite its road with and use the road 

16 of the other; but no locomotive engine or other motive power 

17 which is not owned and controlled by the corporation owning or 

18 lawfully operating the road shall be allowed to run upon a railroad 

19 except with the consent of such corporation. 

1 Section 273. If two corporations are authorized as in the compensation 

2 preceding section each to enter with its road upon, unite the same cars,etc! mg 

3 with and use the road of the other, each of them shall at reasonable Jf 4 ^; 291' |§ 2 i, 3. 

4 times and for a reasonable compensation draw over its road the g-_| -J^ § 'Y^ 

5 passengers, merchandise and cars of the other, and each of them p. s. 112, § 217. 

6 shall for a reasonable compensation provide upon its road con- 14 Alien, 469. 

7 venient and suitable station accommodations for the passengers and 

8 merchandise of the other corporation passing to and over it, and 

9 shall receive and deliver the same in the manner it receives 
10 and delivers its own passengers and freight. 

1 Section 274. If the corporations cannot agree upon the stated tion e oT™tes a or 

2 periods at which the cars of one shall be drawn over the other, and law. ijn. |§ i 2-4. 

3 upon the compensation to be paid therefor, or upon the terms and isos', 10.' 

4 conditions upon which accommodations shall be furnished for the pas- us. ' 

5 sengers and merchandise of the other, or if two corporations operat- Hf 2 ', m, § I'. 

6 ing roads of different gauges cannot agree as to the requisite terminal p. 7 |'. iil',§ m 

7 accommodation, or as to the manner in which freight and passengers i 4 C Gray 3 253 

8 shall be transferred from one road to the other and forwarded, 266 - 

9 the board, upon the petition of either party and after notice to 

10 the other, shall hear the parties, and determine, having reference 

11 to the convenience and interest of the corporations and of the public 

12 to be accommodated thereby, the stated periods for drawing cars, 

13 the compensation therefor, the terms and conditions for passengers 

14 and merchandise, or the requisite terminal accommodations and 

15 manner of transferring passengers and freight as aforesaid ; and, 

16 upon the application of either party, shall determine all questions 

17 between the parties relative to the transportation of freight and 

18 passengers and other business upon and connected with said roads 

19 in which they are jointly interested and the manner in which the 

20 business shall be done, and shall apportion to the corporations their 

21 respective shares of the expenses, receipts and income of the same; 



1040 



RAILROAD CORPORATIONS AND RAILROADS. [CHAP. 111. 



and the award of the board shall be binding upon the respective 22 

corporations for one year or until the board revises and alters the 23 

same ; and the compensation of the board for services and expenses 24 

under the provisions of this section shall be paid by the respective 25 

corporations in such proportions as the board shall determine and 26 

set forth in its award. Upon the request in writing of a party 27 

affected thereby, filed with the board within thirty days after the 28 

rendering thereof, the award shall be filed in the supreme judicial 29 

court which shall have jurisdiction to revise it as if it had been 30 

made by a commission appointed by said court. 31 



Connecting 
roads cbar- 



Section 275. Railroad corporations which are created by the 1 

tered by other ] aws f other states shall have all the rights and privileges relative 2 

to connecting roads, under the provisions of the preceding three 3 

4 



states. 
1860, 201. 

p.' s. 112, §219. sections, of corporations which are created by this commonwealth. 



Connecting 
companies 
may contract 
that one shall 
perform all 
transportation 
for the other. 
1838, 90, §§ 1-3. 
G. S. 63, §§ 115, 
116. 

1872, 180, § 1. 

1873, 361. 

1874, 372, § 170. 
1880, 205, § 1. 
P. S. 112, §§ 220, 
221. 

1894, 506, § 1. 
10 Gray, 103. 
5 Allen, 230. 
8 Allen, 438. 
[1 Op. A. G. 
118.] 



Section 276. Two railroad corporations which are incorporated 1 

under the laws of this commonwealth and whose roads enter upon 2 

or connect with each other may contract that either corporation 3 

shall perform all the transportation upon and over the road of the 4 

other ; and any such corporation may lease its road to any other 5 

such corporation. The facilities for travel and business on either 6 

of the roads of said corporations shall not thereby be diminished. 7 

Such leases shall be upon such terms as the directors agree and as a 8 

majority in interest of the stockholders of both corporations at meet- 9 

ings called for the purpose approve, subject to the provisions of 10 

section two hundred and seventy-eight. The income arising from 11 

such contracts or leases shall be subject to the provisions of law 12 

relative to the right of the commonwealth to purchase the roads of 13 

the railroad corporations or to reduce their tolls, in the same manner 14 

as that arising from the use of the roads. Copies of such contracts 15 

or leases shall be deposited with the board, and full statements of 16 

the facts shall be set forth in the next annual return of such corpora- 17 

tions. The provisions of this section shall not authorize a lease or 18 

contract between two railroad corporations each of which has a 19 

terminus in the city of Boston. The roads of two railroad corpora- 20 

tions shall be considered to enter upon or connect with each other, 21 

within the meaning of this section, if one of such roads enters upon, 22 

connects with or intersects a road leased to the other or operated by 23 

it under a contract as herein authorized. 24 



Term of lease 
not to exceed 
ninety-nine 
years, etc. 
1880, 205, § 2. 
P. S. 112, § 222. 



Leases, etc., to 
be approved 
by board. 
1894, 506, § 1. 



Section 277. A railroad corporation shall not lease or contract 1 

for the operation of its road for a period of more than ninety-nine 2 

years without the consent of the general court ; but the provisions 3 

of this section shall not render invalid a lease which was approved 4 

by the stockholders of a corporation before the first day of July in 5 

the year eighteen hundred and eighty. 6 

Section 278. No lease or purchase and sale of the franchise 1 

and property of a railroad corporation or street railway company, 2 

and no consolidation of two or more railroad corporations or street 3 

railway companies, whether authorized by general or special law, 4 

shall be valid or binding until the terms thereof shall, after notice 5 

and a public hearing, have been approved by the board and a certifi- 6 



Chap. 111.] railroad corporations and railroads. 1041 

7 cate signed by the board, setting forth the vote of approval, shall 

8 have been filed in the office of the secretary of the commonwealth. 

9 The board shall announce its decision within thirty days after the 

10 final hearing upon the application of any railroad corporation or 

11 street railway company for permission to lease or sell to, consolidate 

12 with or purchase the franchise and other property of, any other rail- 

13 road corporation or street railway company. 

RAILROADS FOR PRIVATE USE. 

1 Section 279. A person or corporation may construct a railroad R r ^ate dsfor 

2 for private use in the transportation of freight ; but shall not take 1871 > -^- 

3 or use lands or other property therefor without the consent of the ne.' '"' 

4 owner thereof. No such road shall be connected with a railroad 224.' 

5 without the consent of the railroad corporation ; nor shall it be con- 156Mass - 159 - 

6 structed across or upon a highway, town way or travelled place with- 

7 out the consent of the mayor and aldermen of the city or selectmen 

8 of the town, nor except in a place and manner approved by them. 

9 If the mayor and aldermen or selectmen consent, they shall from 

10 time to time make such regulations relative to the motive power to 

11 be used, the rate of speed to be run and the time and manner of 

12 using the road over and upon such way or travelled place, as in 

13 their judgment the public safety and convenience require, and they 

14 mav order such changes to be made in the track as are rendered 

15 necessary by the alteration or repair of such way. If they allow 

16 steam power to be used on such road, the provisions of this chapter 

17 relative to the crossing of ways and travelled places by railroad 

18 corporations shall apply to such road and to the person or corpora- 

19 tion who construct or operate the same. 

1 Section 280. If the consent of the board is required for the Regulation of 

2 crossing of a way or travelled place by a railroad for private use, lggo.^sl 8 ' 

3 it may limit the number of tracks and may impose other conditions 

4 relative to the use of the crossing by said railroad, and may from 

5 time to time modify such limitations and conditions. 

CORPORATIONS TO CONSTRUCT RAILROADS IN FOREIGN COUNTRIES. 

1 Section 281. Fifteen or more persons, a majority of whom are corporation to 

2 inhabitants of this commonwealth, may associate themselves by an roads in for- 1 ' 

3 agreement in writing, with the intention of forming a corporation fgfg, otmi' 68 ' 

4 to construct and operate a railroad or railroad and telegraph in any p - s - Ui > § 225 - 

5 foreign country, but in accordance with the laws of such country ; 

6 and, upon complying with the provisions of section two hundred 

7 and eighty-three, shall, with their associates and successors, be and 

8 remain a corporation for the purpose aforesaid, with the powers 

9 necessary and incident thereto, and with such powers and privi- 

10 leges, and subject to such duties, liabilities and restrictions, as to 

11 the location, construction, maintenance and operation of its railroad 

12 and telegraph and the transfer of its property by mortgage, lease 

13 or otherwise, as may be fixed by such country. 

1 Section 282. The agreement of association shall set forth the Agreement of 

2 name of the corporation , the names of at least nine persons to act w™ii4,Ti. 

1 I'. 8. J 12, §226. 



1042 



RAILROAD CORPORATIONS AND RAILROADS. [CHAP. 111. 



as a board of directors until others are chosen, the amount of its 3 

capital stock and, as far as may be practicable, the termini of the 4 

railroad and telegraph to be built. Each associate shall subscribe to 5 

the agreement his name, residence, post office address and the 6 

number of shares of stock which he agrees to take ; but no sub- 7 

scriber shall be bound to pay more than ten per cent of the amount 8 

of his subscription, unless a corporation is duly established. 9 



Certificate of 
compliance 
with require- 
ments. 
1879, 274, § 3. 
P. S. 112, § 227. 



Section 283. When it is shown to the satisfaction of the board 1 

that the requirements of the preceding two sections have been com- 2 

plied with, the clerk of the board, upon its order, shall indorse 3 

upon or annex to the agreement of association a certificate setting 4 

forth that fact. The directors shall thereupon file the agreement 5 

of association and certificate in the office of the secretary of the 6 

commonwealth, who, upon the payment to him of a fee of fifty 7 

dollars, shall record them in a book to be kept for that purpose, 8 

and shall issue a certificate substantially in the following form : — 9 



Certificate of 
incorporation. 



Commonwealth of Massachusetts. 

Be it known, that whereas [names of the subscribers to the agreement of asso- 
ciation] have associated themselves with the intention of forming a corporation, 
under the name of the [name of the corporation] , for the purpose of locating, 
constructing, maintaining and operating a railroad [or railroad and telegraph] 
[description of the road as in the agreement of association] , and have complied 
with the statutes of this commonwealth in such cases made and provided ; now, 
therefore, I, , secretary of the commonwealth of Massachusetts, do hereby 

certify that the persons aforesaid, their associates and successors, are legally 
established as a corporation, under the name of the [name of the corporation], 
with all the powers and privileges, and subject to all the duties, liabilities and 
restrictions, set forth in the general laws applicable to such corporations. 

In witness whereof, I have hereunto subscribed my official signature, and 
affixed the seal of said commonwealth, this day of , in the year 

[day, month and year] . 



The certificate so executed shall be recorded with the agreement 10 

of association ; and such certificate or a certified copy of the record 11 

thereof shall be conclusive evidence of the establishment of the cor- 12 

poration at the date of such certificate. 13 

reductfon°of Section 284. The corporation may from time to time, at a 1 

capitaistock. meeting of directors called for the purpose, reduce the amount 2 

p. s. 112, § 228. of the capital stock, or increase it for the purpose of constructing 3 

and equipping its road and extensions or branches thereof. If 4 

such increase or reduction is made, a certificate of the fact, signed 5 

by the president of the corporation, shall, within thirty days there- 6 

after, be filed in the office of the secretary of the commonwealth. 7 



Section 285. Such corporation shall be subject to the pro- 



statutes gov- 
erning such 

i879 P( 274 tl § > §5 8 '6 v i s i° ns °f the first clause of section forty-eight and sections fifty- 
139M 112 '' III' 9 ' ^ ve ' fifty-eight, fifty-nine, sixty and seventy-eight of this chapter, 
and of section fifty-two of chapter fourteen. 



1 
2 
3 
4 



Chap. 112.] steeet railway companies. 1043 

CHAPTEE 112. 

OF STREET RAILWAY COMPANIES. 

Section 1 . — Powers and Duties . 

Sections 2-14. — Formation. 

Sections 15-17 . — Meetings and Officers . 

Sections 18-26. — Capital Stock. Assessments. 

Sections 27-38. — Construction and Use of Tracks. 

Sections 39-61. — Operation of Road. Streets. 

Sections 62-68. — Crossings of Railroads. 

Sections 69-75. — Fares and Accommodations. 

Section 76. — Acquisition of Pleasure Resorts. 

Sections 77-84. — Connecting Roads. 

Sections 85-91. — Lease or Sale of Road. 

Section 92. — Extension of Franchise . 

Sections 93-98. — Books, Returns and Reports. 

Sections 99, 100. — Additional Remedies. 

POWERS AND DUTIES. 

1 Section 1. Street railway companies shall be subject to the Powers and 

2 provisions of this chapter. Companies which have been specially ra4iway f com eet 

3 chartered shall continue to exercise and enjoy the powers and privi- ^^g §§i 

4 leges granted and be subject to all the liabilities imposed by their ^4' 381 ' $5 / 

5 respective charters, except as modified and controlled by any act 58. 

6 in amendment thereof or by the provisions of this chapter. All p. s. 113, § 1. 

7 street railway companies whether organized under general or special igoo| i97, § | i! 28 

8 laws shall be subject to any other general laws applicable thereto. ViAnen > 262 - 

9 All provisions of law which may be in force at the time of the 

10 enactment hereof and are applicable to the Boston Elevated Eail- 

11 way Company or to companies whose railways were, on the first 

12 day of October in the year eighteen hundred and ninety-eight, 

13 leased or operated by it shall remain in full force and effect in 

14 respect to said company and companies. The provisions of law 

15 relative to street railway companies shall, as far as applicable, apply 

16 to a person, partnership or association constructing, maintaining or 

17 operating, under authority of law, a street railway. 

FORMATION. 

1 Section 2. Fifteen or more persons may associate themselves Formation of 

2 by an agreement in writing with the intention of forming a corpora- co^oratioT^ 

3 tion for the purpose of constructing and operating a street raibvay p^iS^fi. 

4 for the conveyance of passengers ; and, upon complying with the 

5 provisions of this chapter preliminary to the establishment of such 

6 corporation, shall, with their associates and successors, be and re- 

7 main a corporation. 

1 Section 3. The agreement of association, the mode of sub- £**S?t ; 

2 scribing and the amount which subscribers shall be bound to pay ggxiiL 1 

3 thereon shall be governed by the provisions of section thirty-six of ism; 229; § 21. 



1044 STREET RAILWAY COMPANIES. [CHAP. 112. 

i87i, 38i, § 27. chapter one hundred and eleven, except that the gauge of a street 4 

1877', 105. ' ' railway shall be four feet eight and one-half inches, the number of 5 

directors named in the said agreement shall be seven instead of 6 

nine, and the amount of the capital stock shall not be less than ten 7 

thousand dollars for each mile unless the railway is to be wholly 8 

outside of any city, in which case it may be not less than twenty- 9 

five hundred dollars for each mile. 10 

corporate Section 4. The corporate name shall be one which is not in 1 

name. r .,. 

1874, 29, §3. use by any other street railway company in this commonwealth and 2 

shall contain the words ' ' street railway company " at the end thereof. 3 

Directors to be Section 5. The directors shall be subscribers to the agreement 1 

subscribers. ., . . o 

cierk and of association, and a maioritv of them shall be inhabitants of the 2 

1874, 29, §4. cities and towns in which said railway may be located. They shall 3 

appoint a clerk and a treasurer, who shall hold their respective 4 

offices until a clerk and treasurer of the corporation are chosen. 5 

The directors shall fill any vacancy in their board, or in the office 6 

of clerk or treasurer. 7 

Agreement of Section 6. The directors, before proceeding to fix the route 1 

association to -i-ii r>i /» 

be published, of the road, shall cause a copy of the agreement of association to 2 

p. s. 113, § e. be published in one or more newspapers in each county in which 3 

the road is proposed to be located at least once in each of three sue- 4 

cessive weeks. The sworn certificate of the clerk shall be evidence 5 

of the publication. 6 

tracks. 011 ° f Section 7 . The board of aldermen of a city or the selectmen of a 1 

i87i' lii' I it' town, upon the petition of the board of directors of a company organ- 2 

187*1 29, § 6.^ ized under the provisions of this chapter or under a special act or of 3 

1898,' 578,' § i3. a majority of the directors of a company in process of organization 4 

175 Mass! sis', under the provisions of this chapter for an original location of tracks 5 

Jt89?f' A " G ' 392 ' in such city or town, shall give fourteen days' notice of the time and 6 

place for a hearing on such petition by publication thereof in one or 7 

more newspapers, if any, published in said city or town ; otherwise, 8 

in one or more newspapers published in the county in which the 9 

city or town is situated ; and if, after a hearing, they are of opinion 10 

that public necessity and convenience so require, they shall grant 11 

said location or any portion thereof, and may prescribe how the 12 

tracks shall be laid and the kind of rails, poles, wires and other 13 

appliances which shall be used, and impose such other terms, con- 14 

ditions and obligations in addition to the general provisions of law 15 

governing such companies as the public interest may in their 16 

judgment require. Such location shall be the true location if, 17 

within thirty days after receiving notice of the granting thereof, 18 

the directors file a written acceptance thereof with the board of 19 

aldermen or selectmen. If, within fifteen days after the granting 20 

of such location, not less than ten owners of real estate which abuts 21 

on a public way in which such location has been granted or a ma- 22 

jority in value of such owners, as determined by the last preceding 23 

assessment for taxation, file a written protest with the board of 24 

railroad commissioners, the location in such way shall not be valid 25 

until approved by said board after public notice and a hearing. A 26 



Chap. 112.] street railway companies. 1045 

27 street railway company shall not commence construction under a 

28 grant of location as aforesaid until the expiration of the time for 

29 filing such protest, nor, if such protest has been filed, until the 

30 board of railroad commissioners has finally approved such location. 

31 All locations which were granted or in use before the first day of 

32 October in the year eighteen hundred and ninety-eight are ratified 

33 and confirmed as if they had been accepted under the provisions 

34 of this section and shall continue in force, subject only to revoca- 

35 tion as provided in section thirty-two and to the general pro- 

36 visions of law governing such companies. 

1 Section 8 . When the track or tracks of the proposed company when tracks 

2 have been so located, the corporation may be established, and the etc.^corpifra. 

3 first meeting shall be called under the conditions and in the manner established. 

4 provided for railroad corporations in sections forty-five, forty-six, p 8 7 |' li' 3 § | t -9 ' 

5 and the first clause of section forty-eight, of chapter one hundred 1898,578,' §27. 

6 and eleven, which shall apply to street railway companies as far as 

7 appropriate, except so much of said section forty-six as requires a 

8 payment to be made to the treasurer in excess of ten per cent of 

9 the capital stock, or requires a bond or assurance. 

1 Section 9. A street railway company heretofore or hereafter Location on 

2 organized under the laws of this commonwealth or in process of iwi^osITl 

3 organization thereunder, having first obtained the approval of the 

4 aldermen of the city or selectmen of the town in which private land 

5 is situated to the construction of its railway thereon, may, for the 

6 purpose of avoiding grades and curves in a public street or way and 

7 for such other purposes incidental to the use of the public streets 

8 or ways as the board of railroad commissioners may in the manner 

9 hereinafter provided approve, petition said board for authority to 

10 construct and maintain parts of its railway and extensions thereof 

11 upon such private land outside the limits of such public ways. The 

12 company in such petition shall set forth the purpose for which 

13 such authority is desired in each case, and shall file with the peti- 

14 tion a plan, in such form and upon such scale as the board may 

15 prescribe, of the proposed railway or extension, and of the localities 

16 where it is desired to construct the same upon private land, and 

17 said board, after public notice and a hearing, if it is satisfied that 

18 public necessity and convenience demand that portions of the pro- 

19 posed railway or extension should be built outside the limits of 

20 public ways, substantially on the private land selected, and that 

2 1 the approval of the aldermen or selectmen of the city or town in 

22 which the land is situated has been obtained as aforesaid, may au- 

23 thorize the petitioner to construct and operate its railway upon and 

24 over private land, and for that purpose to purchase or lease private 

25 land or rights therein and thereover, in such cases and to such 

26 extent as the board is of opinion that public necessity and con- 

27 venience in the construction and operation of the proposed railway 

28 require. Said board in granting such authority may determine the 

29 kind of construction to be used, the grade and alignment of the 

30 tracks, and may order such special appliances to be furnished and 

31 such safeguards to be adopted in the construction and operation of 

32 the railway upon private land as, in its judgment, regard for public 

33 necessity, convenience and safety demands. 



1046 



STREET RAILWAY COMPANIES. 



[Chap. 112. 



Regulation of 
location on 
private land. 
1901, 503, § 2. 



Location for 
extension. 
1898, 578, § 14. 



Section 10. A street railway constructed, after the fourteenth 1 

day of June in the year nineteen hundred and one, upon private 2 

land shall not be opened for public use until the board, after an 3 

examination, certifies that all laws relative to its construction and 4 

all requirements of said board have been complied with, and that it 5 

appears to be in a safe condition for operation. Said board may, 6 

at any time after the opening of any street railway for public use, 7 

order such changes and improvements to be made in the construe- 8 

tion and operation of any part of the railway located on any private 9 

land as in its judgment may be necessary for public safety in the 10 
use thereof; and such order shall be complied with by the street . 11 

railway company. 12 

Section 11. A street railway company whose petition for an 1 

original location, made necessary to connect two towns or cities or 2 

a city and town, has in whole or in part been granted or refused, 3 

or has been neither granted nor refused in such connecting town or 4 

city within three months after the filing thereof, may, within thirty 5 

days of such grant or refusal of a location, or of the expiration of 6 

said three months, apply to the board of railroad commissioners 7 

for such location . If it shall appear at a hearing on said applica- 8 

tion, after such notice to the aldermen or selectmen and to all 9 

persons who own real estate which abuts upon any way in which 10 

such location was asked for, by publication or otherwise, as said board 11 

may order, that the company has already been granted and has duly 12 

accepted locations for a street railway in two towns or cities, or a 13 

town and city, adjoining the city or town in which such location has 14 

been asked for, and that a location is necessary to connect such 15 

existing locations, said board may, if it finds that public necessity 16 

and convenience so require, enter a decree granting a connecting 17 

location. In granting the location said board may prescribe the 18 

appliances and impose the conditions and obligations which are 19 

specified or referred to in section seven relative to the granting of 20 

original locations. No company shall commence construction under 21 

an order of a board of aldermen or of selectmen granting a loca- 22 

tion as aforesaid until the expiration of the time in which such 23 

application may be made to the board of railroad commissioners, 24 

nor, in case such application is made, until final action thereon has 25 

been had. 26 



Sale of railway 
by receivers. 
1900, 381, §§ 1, 
2,6. 



Section 12. A receiver of the property of a street railway 1 

company may, by order of the court, sell and transfer the road and 2 

property of such company, its locations and franchises, on such 3 

terms and in such manner as the court may order. The purchasers 4 

from such receiver, and a corporation organized under the provi- 5 

sions of the following section, if such road has been transferred to 6 

it, shall hold and possess said road, all its rights and franchises and 7 

all property acquired in connection therewith, with the same rights 8 

and privileges and subject to the same duties and liabilities as the 9 

original street railway company ; but no action shall be brought 10 

against such purchaser or such new corporation, to enforce any 11 

liability incurred by said original corporation, except debts and 12 

liabilities owing from said original corporation to any city or town 13 

within which the road is operated and taxes and assessments for 14 



Chap. 112.] street railway companies. 1047 

15 which said original corporation is liable under the statutes relating 

16 to street railways, which shall be assumed and paid by said new cor- 

17 poration. The provisions of this section shall not impair the 

1 8 powers of the holders of an outstanding mortgage to enforce their 

19 rights by suit or otherwise. 

1 Section 13. The purchasers at such sale shall, with their asso- organization 

2 ciates, to the number of at least fifteen, within sixty days after such r'atfon! corpo " 

3 sale, organize a corporation for the purpose of holding, owning and 1900 > 381 >§ 3 - 

4 operating the street railway purchased, by filing an agreement of 

5 association in the office of the secretary of the commonwealth set- 

6 ting forth the name of the corporation, the name of the corporation 

7 whose property and franchises have been purchased, the name of 

8 each city, town and county through which the route of the pur- 

9 chased street railway extends, the termini of said railway, the name 

10 of the court by which the sale was ordered, the date of such order, 

11 the date of the sale, the amount of the capital stock of the suc- 

12 cessor corporation and the names of at least seven persons to act as 

13 a board of directors until others are chosen by the corporation. 

14 Each associate shall subscribe to the agreement of association his 

15 name, residence, post office address and the number of shares of 

16 stock which he agrees to take. The secretary of the commonwealth 

17 shall record the agreement of association in a book kept by him for 

18 this purpose and shall issue a certificate of incorporation in the 

19 form which is authorized by section forty-six of chapter one hun- 

20 dred and eleven. When said certificate is issued the corporation 

21 shall organize in the manner provided for the organization of street 

22 railway companies in section eight. A corporation which is organ- 

23 ized under the provisions of this section may begin business as soon 

24 as it is organized. If said purchasers fail to organize a corporation 

25 as herein provided, all rights and powers to operate said road shall 

26 thereupon cease. 

1 Section 14. The capital of a corporation which is organized anSdutie^of 8 

2 under the authority of the preceding section shall be fixed at an |^ e g 81 §§4 5 

3 amount approved by the board of railroad commissioners, but shall 

4 not exceed the fair cost of replacing the road and property so ac- 

5 quired, less the amount of any outstanding mortgages to which the 

6 property may remain subject in the hands of such new corpora- 

7 tion. Such cost of replacing shall be determined by the board 

8 upon the application of the corporation. Such corporation shall 

9 have all the rights and be subject to all the duties of street rail- 

10 way companies, except as otherwise provided in the two preceding 

11 sections. 

MEETINGS AND OFFICERS. 

1 Section 15. The stockholders of every street railway company officers. 

2 shall annually choose by ballot from their own number a board i87i! ssi' 1 2! 

3 of not less than five directors, who shall hold their offices for one mWBeAei. 

4 year and until others are chosen in their places. The immediate 

5 government and direction of the affairs of the company shall be 

6 vested in the directors, who shall elect one of their number to 

7 be president of the board and of the company, a clerk, who shall be 

8 sworn, and a treasurer, who shall give bond with sufficient sureties, 



1048 



STREET RAILWAY COMPANIES. 



[Chap. 112. 



in the sum required by the by-laws, for the faithful performance of 9 

his duties. 10 

meetings. Section 16. The meetings of such company shall be called and 1 

i87i' iii' 1 1' notified in the manner provided in its by-laws , or, if the by-laws make 2 

p. s. 113, § lb. no provision therefor, in the manner provided in sections thirteen 3 

and fourteen of chapter one hundred and nine, as the case may be. 4 



Votes 
Proxies 



Section 17. At all meetings each stockholder shall be entitled 1 

ilfi' ill' llf'i* ^° one v0 ^ e f° r eacn snare h^d by him, not exceeding one-tenth 2 

p. s. ii3, §§ ii, part of the whole capital stock, unless the vote of a certain propor- 3 

1889, 2io. tion of the capital stock is required by law. No vote shall be given 4 

upon shares which are owned by the company or which are pledged 5 

in any form to or for its benefit. No proxy shall be valid unless 6 

executed and dated within six months previous to the meeting at 7 

which it is used. 8 



Issue of cer- 
tiflcate. Con- 
veyance of 
shares. 
1864, 229, §§ 6, 
10. 

1S71, 381, §§ 7, 
10. 

1SS1, 302. 
P. S. 113, § 13. 
150 Mass. 200. 



Directors per- 
sonally liable, 
when. 

1864, 229, § 6. 
1871, 381, § 7. 
P. S. 113, § 14. 



CAPITAL STOCK. ASSESSMENTS. 

Section 18. No certificate of stock in a street railway company 1 

shall be issued until the par value thereof shall have been actually 2 

paid in in cash. The shares may be transferred by a conveyance in 3 

writing, recorded either by the treasurer or by an officer duly author- 4 

ized by the directors, in books to be kept at such place within the 5 

commonwealth as they may appoint. No conveyance of shares, 6 

unless so recorded, shall be valid against any person other than the 7 

grantor or his legal representatives, except as provided in sections 8 

thirty-six and thirty-seven of chapter one hundred and nine. Upon 9 

making the transfer and surrendering the old certificate, a new cer- 10 

tificate shall be granted. 11 

Section 19. The directors of a street railway company shall 1 

be jointly and severally liable, to the extent of its capital stock, for 2 

all its debts and contracts until the whole amount of its capital 3 

stock as originally fixed by its agreement of association, or if a 4 

chartered company, by its directors, shall have been paid in, and a 5 

certificate stating the amount thereof so fixed and paid in shall have 6 

been signed and sworn to by its president, treasurer, clerk and a 7 

majority of its directors, and filed in the office of the secretary 8 

of the commonwealth. 9 



Increase of 
capital stock. 
1864, 229, § 7. 
1871, 381, § 8. 
1874, 29, § 15. 
P. S. 113, § 15. 
1887, 366. 
1896, 409. 



Section 20. A street railway company for the purpose of build- 1 

ing and equipping a branch or extension of its road upon a location 2 

duly granted or extended, or for other necessary and lawful pur- 3 

poses set forth in its petition to the board for authority therefor, 4 

may, from time to time, in accordance with the provisions of sec- 5 

tions twenty-four, thirty and thirty-one of chapter one hundred and 6 

nine, increase the capital stock beyond the amount fixed and limited 7 

by its agreement of association, or by any act of the general court 8 

relative thereto. If it appears that the assets or capital stock of a 9 

company are impaired, the board may prescribe such conditions and 10 

requirements as it considers proper, and shall state in its annual 11 

report the amount of such impairment and the conditions and re- 12 

quirements which were imposed. 13 



CHAP. 112.] STREET RAILWAY COMPANIES. 1049 

1 Section 21. A street railway company may issue capital stock ^ c [ t e a a 1 seof , 

2 to the amount which the board shall find to have been actually paid <» pay high. 

3 by, or to have become a legal liability of, such company under the ment^ sess 

4 provisions of sections thirty, thirty-three and thirty-four. 1898,578,^22. 

1 Section 22. Upon the petition of a street railway company for Reduction of 

2 authority to reduce its capital stock, presented in accordance with a i89 P o?326\ tock " 

3 vote of the stockholders at a meeting called for the purpose, the 

4 board may, after a hearing and such examination of the financial 

5 condition of the company as it considers necessary, authorize such 

6 reduction to be made if it appears to be consistent with the public 

7 interest and with the limitations imposed by general or special laws. 

8 A certificate of the amount of the reduction and of any terms and 

9 conditions imposed shall be forthwith filed by the board in the office 

10 of the secretary of the commonwealth. When such reduction is 

11 made, no money or other property shall be paid or transferred to the 

12 stockholders unless specially authorized by the board, and by a vote 

13 of the directors of the corporation taken by yeas and nays at a 

14 meeting called for the purpose. The directors who vote therefor 

15 shall be jointly and severally liable for the debts or contracts of the 

16 company which exist at the time when the capital stock is reduced, 

17 to the extent of the money or property paid or transferred to the 

18 stockholders. 

1 Section 23. A street railway company which has no preferred ^Jf age 

2 stock may, by vote of a majority in interest of its stockholders i889, 316, §§1, 

3 at a meeting: called for the purpose, in accordance with the pro- 1892, 192. 

• • 1 157 Mass 37 

4 visions of this section and of sections twenty-four and twenty-five 

5 of chapter one hundred and nine, authorize the issue of coupon or 

6 registered bonds in amounts of not less than one hundred dollars 

7 each, payable at periods of not more than twenty years after the 

8 date thereof, secured by a mortgage of a part or of the whole of 

9 its railway, equipments, franchise and other property, real or per- 

10 sonal, to provide means for construction and equipment, for funding 

11 so much of its floating debt as may have been incurred for con- 

12 struction, for the purchase of such real or personal estate as may 

13 have been necessary or convenient for the operation of its road, 

14 for refunding its funded debt, to provide means for building and 

15 equipping a branch or extension upon a location duly granted or 

16 extended or for the contemplated purchase of such additional real 

17 or personal property as may be necessary or convenient for the 

18 operation of its railway. Such bonds shall be recorded by the 

19 treasurer in books to be kept in his office, and shall not be issued 

20 until the board is satisfied that the value of the constructed tracks, 
2.1 the equipments and the other real and personal property of the 

22 company, taken at a fair value for railway purposes, and excluding 

23 the value of the franchise, equals or exceeds the amount of the 

24 capital stock outstanding and the debt and, after an examination of 

25 the assets and liabilities of the compan}^ and such further investiga- 

26 tion as it considers expedient, shall by vote approve their issue, nor 

27 until the bonds shall have been approved by a person appointed by 

28 the company for that purpose, who shall certify that they are 

29 properly issued and recorded. The vote approving such issue shall 

30 be in accordance with the provisions of section twenty-four of 



1050 



STREET RAILWAY COMPANIES. 



[Chap. 112. 



chapter one hundred and nine and shall specify the rate of interest, 31 

not exceeding six per cent per annum, which such bonds shall bear. 32 

Tppuifabfeto Section 24. The provisions of sections sixty-four to seventy, 1 

i889 d 3i6 «3 inclusive, of chapter one hundred and eleven shall apply to street 2 

railway companies which act under the provisions of the preceding 3 

section. 4 

laie e of I 8hares Section 25. The directors may from time to time assess upon 1 

1864 o-29 ««8 9 a ^ ^ e shares subscribed but not paid in, such amounts of money 2 

i87i| 38i', § 9.' " which are not in excess of their par value, as they think proper, 3 

' ' and may direct the same to be paid to the treasurer, who shall give 4 

written notice thereof to the subscribers. If a subscriber neglects 5 

to pay his assessment for thirty days after such notice, the directors 6 

may transfer the rights under such subscription to any person who 7 

subscribes for the same and pays the assessments due, or may order 8 

the treasurer, after giving notice of the sale, to sell such shares by 9 

public auction to the highest bidder and, upon the payment by him 10 

to the corporation of the unpaid assessments, of interest to the date 11 

of sale and of the charges of the sale, the shares shall be transferred 12 

to him. If, within thirty days after the sale, the purchaser does 13 

not make said payment to the corporation, the sale shall be cancelled 14 

and the subscriber shall be liable to the corporation for the unpaid 15 

assessments, the interest thereon and the charges of sale. If the 16 

amount so paid by the purchaser to the corporation is more than the 17 

amount for which the shares were sold, the subscriber shall be liable 18 

to the purchaser for the deficiency, if it is less, the purchaser shall 19 

be liable to the subscriber for the surplus. 20 



Companies 
may nold real 
and personal 
estate. 

1864, 229, § 13. 
1871, 381, § 13. 
1874, 29, § 10. 
P. S. 113, § 18. 



Section 26. A street railway company may purchase and hold 1 

such real and personal estate as may be necessary or convenient 2 

for the operation of its road ; but it shall not, except as provided 3 

in section eighty-seven, directly or indirectly, subscribe for, take or 4 

hold stock or bonds of a street railway company which is organized 5 

under the general laws unless specially so authorized by the general 6 

court. 7 



Certificate to 
be filed. 
1864, '229, § 6. 
1871, 381, § 6. 
P. S. 113, § 19. 
141 Mass. 496. 



CONSTRUCTION AND USE OF TRACKS. 

Section 27. No street railway company shall begin to build its 1 

road until it shall have filed in the office of the secretary of the com- 2 

mon wealth a certificate, signed and sworn to by its president, treas- 3 

urer, clerk and a majority of its directors, stating that the amount 4 

of its capital stock has been unconditionally subscribed for by re- 5 

sponsible parties, and that fifty per cent of the par value of each 6 

share thereof has been actually paid in in cash. 7 



Road to be 
built, etc., 
within eight- 
een months. 
1857, 198. 
G. S. 63, § 140. 
1864, 229, § 12. 



Section 28. If a street railway company does not build and put 1 
in operation some portion of its road within eighteen months after 2 
the date of its certificate of establishment, its corporate powers shall 3 



cease. 



1871, 381, § 12. 



P. S. 113, § 20. 



On private 



ian6? rlvate Section 29. Except as provided in this chapter and except 1 

i9oi, 503, §§3, 4. f or the purpose of reaching its car barns or repair shops, and of 2 



Chap. 112.] street railway companies. 1051 

3 reaching and providing convenient terminals in parks and pleasure 

4 resorts situated upon the line of its railway, a street railway com- 

5 pany shall not, unless authorized by special act of the general court 

6 so to do, construct or operate any part of its railway outside the 

7 limits of a public highway, street or bridge ; but a street railway 

8 company which, prior to the fourteenth day of June in the year 

9 nineteen hundred and one, without special legislative authority 

10 therefor constructed any part of its railway upon private land, with 

11 the consent of the owners of such land, or upon land leased or pur- 

12 chased by such company, or which prior to said date purchased or 

13 leased land for the purpose of constructing its railway thereon, or 

14 which prior to said date after public notice and a hearing obtained 

15 the approval of the aldermen of a city or of the selectmen of a 

16 town to the construction of a part of its railway upon private land 

17 within such city or town, and prior to said date actually with the 

18 consent of the owners of the land began, or obtained their consent 

19 to begin, such construction, may construct, maintain and operate its 

20 railway upon such private land, subject however to the provisions 

21 of this or the preceding chapter giving control to the board over 

22 street railways constructed upon private land. 

1 Section 30. The board of aldermen of a city or the selectmen Location, 

2 of a town, upon the petition of fifty legal voters or of the directors lsW^Tii." 

3 of a street railway company whose tracks are located in said city or lsgf ; 57I,' | fs .* 

4 town, after notice and a hearing as provided in section seven, may [iop a A.' g 85 ' 

5 grant a location for the extension of the tracks of such company and 392 > 489 -] 

6 prescribe how said tracks shall be laid and the kinds of rails, poles, 

7 wires and other appliances which shall be used ; but they shall im- 

8 pose no terms or conditions to such grant in addition to those im- 

9 posed by general laws on street railways in force on the first day of 

10 October in the }^ear eighteen hundred and ninety-eight, or such as 

11 may have been imposed in the original grant of location to such 

12 company in such city or town subsequent to said date. The pro- 

13 visions of section seven as to acceptance and as to protest of abut- 

14 ters and approval by the board of railroad commissioners shall apply 

15 to grants of extensions under the provisions of this section. 

1 Section 31. The board of aldermen of a city or the selectmen -alteration of. 

2 of a town, upon the petition of the directors of a street railway 1371! 38i)-§ is! 

i T* S IIS 6 22 

3 company whose tracks are located in said city or town, or upon the i898,'578,'§i6." 

4 petition of any interested party, after notice and a hearing as pro- *| JgJJ ^; 

5 vided in section seven, may alter the location of the tracks in the |^g 9 fj G - 

6 manner prescribed in, and subject to the provisions of, the preced- 

7 ing section. Such alterations shall be made by such company within 

8 such time, and the expense thereof shall be borne by such party or 

9 parties, and in such proportions, as the board of aldermen or select- 
10 men may determine. 

1 Section 32. The board of aldermen of a city or the selectmen -revocation 

2 of a town, after the expiration of one year from the opening for use ism, 229, § is. 

3 of a street railway in their city or town, and after notice as provided J^' 381 ' §§ 16> 

4 in section seven, and a hearing, if the public necessity and con- £ s. m, §§ 23, 

5 venience in the use of the streets so require, may, for good and |ff^^; 

6 sufficient reasons to be stated in the order therefor, revoke the 



1052 STREET RAILWAY COMPANIES. [CHAP. 112. 

location of a street railway in any highway or street in said city or 7 

town ; but unless, within thirty days after such order of revocation, 8 

the company consents thereto in writing, such order shall not be 9 

valid until approved by the board of railroad commissioners after 10 

public notice and a hearing. Upon the approval of such order of 11 

revocation, the company shall remove the railway in conformity 12 

with such order and shall put the surface of streets which has been 13 

disturbed by such removal into as good condition as the adjacent 14 

surface of said streets. If the company neglects to comply with 15 

such order after thirty days' notice of the approval thereof, the board 16 

of aldermen or the selectmen may cause it to be executed and the 17 

work to be done at the expense of the company, and such expense 18 

shall be recovered in an action of tort. 19 

pa S rt e of n ex nt ° f Section 33. If application is made for a location in a street or 1 

wldenin street highway m which no street car tracks are located, and such street 2 

1898, 578, § 19. or highway is widened under the provisions of chapter fifty by an 3 

order declaring the widening to be rendered necessary for the public 4 

convenience for the purpose of granting such location of street rail- 5 

way tracks therein, a proportionate share of the expense of such 6 

widening may be assessed upon a street railway company which 7 

accepts a location in the street or highway so widened ; but the 8 

amount of such assessment, in addition to the amounts assessed 9 

on real estate, shall not exceed one-half of the total cost of such 10 

widening. 11 



•&• 



^!radeof Uon Section 34. If a street or highway in which the tracks of a 1 

lm 57s y § 20 street railway company have been located for a period of five years 2 

is altered, or if the grade thereof is changed under the provisions 3 

of chapter fifty, the company shall pay such proportionate share of 4 

the expense thereof, including therein the necessary cost of chang- 5 

ing its railway to conform to such alteration or change of grade, as 6 

may be assessed upon it, provided that no such assessment shall 7 

exceed the aggregate amount of all the betterments assessed upon 8 

real estate, and that no such assessment shall exceed one-quarter 9 

of the total cost of such alteration or change of grade. 10 

iaw r appncSbi°e Section 35. The provisions of chapter fifty relative to the 1 

1898 578 §21 assessment of betterments on real estate, so far as applicable, shall 2 

apply to assessments made under the provisions of the two preced- 3 

ing sections. Said assessments shall be collected according to the 4 

provisions of chapter thirteen. 5 

taken up! be Section 36. If a street railway company voluntarily discon- 1 

i864 ei 229 § 19 t mues the use of any part of its tracks for a period of six months, 2 

i87i! 38i| § 25! the streets or highways occupied thereby shall, upon the order 3 

of the board of aldermen or selectmen, forthwith, at the expense 4 

of the company, be cleared of said tracks, and be put into as good 5 

condition for public travel as they were in immediately before 6 

being so occupied. 7 

dls?™n p t?nuance Section 37. The board of aldermen or selectmen may order a 1 

of - street railway company to discontinue temporarily the use of any 2 



Chap. 112.] street railway companies. 1053 

3 tracks within the limits of their city or town if they determine 1864, 229, § 20. 

4 that the safety or convenience of the inhabitants so requires. pJs'.iik, § m?. 

1 Section 38. If the selectmen of a town and the president of a Location of 

2 street railway company make application to the Massachusetts highway p^ed tobe 

3 commission, and with the application submit satisfactory plans, pro- £ ntroi ar der 

4 files and cross-sections of a way which the selectmen, or the county hi g hwa yco m - 

. 1 . -1 1 t i mission. 

5 commissioners 01 the county in which the town lies, have in writing 1901,414. 

6 requested the commonwealth to take charge of, said commission 

7 shall indicate on such plans and profiles a location and grade for 

8 the tracks of said street railway company. If said commission 

9 considers said way suitable for a state highway, and said commis- 

10 sion and the president of said street railway company agree as to 

11 the proportionate part of the cost of constructing it which shall be 

12 paid by the commonwealth and by the street railway company, 

13 then said commission may pay, out of the appropriations for the 

14 construction and repair of state highways, said proportionate part 

15 of the damages sustained by a person whose property is injured 

16 by the construction of such state highway, and of the cost of grading 

17 said road to the lines established by the Massachusetts highway 

18 commission. A way which is graded under the provisions of this 

19 section shall remain a town way or a highway, subject to all laws 

20 relative thereto, until said way is taken charge of as a state high- 

21 way by the commonwealth. 

OPERATION OF ROAD. STREETS. 

1 Section 39. A street railway or branch or extension of a opening for 

2 street railway shall not be opened for public use until the board, 1901,368. 

3 after an examination, certifies that all laws relative to its construc- 

4 tion have been complied with, and that it appears to be in a safe 

5 condition for operation. 

1 Section 40. The board of aldermen or the selectmen may from Rules as to 

2 time to time establish such regulations as to the rate of speed and etc* of spee ' 

3 as to the mode of use of the tracks within their city or town as the Jj$f; |?; f/fg, 

4 interest and convenience of the public may require, and a street ^; s 113) §§ 27> 

5 railway company whose servants or agents wilfully or negligently ^- Allen 287 

6 violate any such regulation shall forfeit not more than five hundred 167 Mass. 49.* 

7 dollars for each offence. 

1 Section 41. Street railway companies shall clear snow from clearing snow 

_ ,, ,. , J , ii_xi • from tracks. 

2 their tracks in such a manner as may be approved by the superm- i 89 8, svs, § 12. 

3 tendent of streets, or by any officer who exercises like powers in the 

4 city or town in which such tracks are situated. 

1 Section 42. The board of aldermen or the selectmen may from use of cars, 

2 time to time make such regulations as to the manner and extent of regulated.'' 

3 use of tracks, and the number and routes of cars of any and all com- Jjj$; f&} 13 - 

4 panies which run over such tracks within their city or town, as the ^s.ii8,§§29, 

5 interest of public travel may require, and, subject thereto, the direct- 

6 ors of a street railway company may from time to time establish 

7 regulations for the use of its road and cars, subject to the approval, 

8 revision or alteration of the board of railroad commissioners. 



1054 



STREET RAILWAY COMPANIES. 



[Chap. 112. 



takenup, a ete be Section 43. Cities or towns which, for any lawful purpose, 1 

lPi'lli'Uo * a ^ e U P' a ^ er or discontinue streets or highways in which the 2 

p. s'. ii3, §31. tracks of a street railway are located, shall not be liable in damages 3 

1QS TVTooo SKI J © 



135 Mass. 551. 



therefor to the street railway company. 



— portion of, 
to be kept in 
repair. 
1864, 2-29, § 18. 
1866, 286. 
1871, 381, § 21. 
1881, 121. 
P. S. 113, § 32. 
1898, 578, § 11. 
104 Mass. 18. 
109 Mass. 221, 
525. 

112 Mass. 57. 
116 Mass. 420. 
130 Mass. 492. 
132 Mass. 178. 
149 Mass. 335. 

168 Mass. 556. 

169 Mass. 508. 
173 Mass. 587. 



Company 
liable for 
defect in high- 
way, when. 
1866, 286. 
1871, 381, § 22. 
P. S. 113, § 33. 
112 Mass. 48. 



Guard 8 to be 
maintained 
upon bridges, 
etc. 



Section 44. Street railway companies shall not be required to 1 

keep any portion of the surface material of streets, roads and bridges 2 

in repair, but they shall remain subject to all legal obligations im- 3 

posed in original grants of locations and may, as incident to their 4 

corporate franchise, and without being subject to the payment of 5 

any fee or to any other condition precedent, open any street, road or 6 

bridge in which any part of their railway is located, for the purpose 7 

of making repairs or renewals of the railway, or of any part thereof, 8 

the superintendent of streets or other officer who exercises like 9 

authority, or the board of aldermen or selectmen issuing the neces- 10 

sary permits therefor in a city or town in which such are required. 11 

If, during the original construction or subsequent alteration or ex- 12 

tension or the making of any such repairs or renewals of any 13 

railway or a portion thereof, said surface material is disturbed, the 14 

companjr which owns or operates such railway shall, at its own 15 

cost, except as provided in sections thirty-one and sixty-one, 16 

replace to the reasonable satisfaction of the superintendent of 17 

streets, or other officer who exercises like authority, said surface 18 

material with the same form of construction as that which was 19 

disturbed, or, by first obtaining the approval thereof by such 20 

officer, with a different material and form of construction, and shall 21 

restore said street, road or bridge to as good condition as existed 22 

at the time of such disturbance. A street railway company shall 23 

be liable for any loss or injury which may be sustained by any per- 24 

son in the management and use of its tracks and during the con- 25 

struction, alteration, extension, repair or renewal of its railway, or 26 

while replacing the surface of any street which may have been dis- 27 

turbed as aforesaid, and which results from the carelessness, neglect 28 

or misconduct of its agents or servants who are engaged in the 29 

prosecution of such work, if notice of such loss or injury is given 30 

to the company and an action therefor is commenced in the manner 31 

provided by section twenty of chapter fifty-one. The provisions 32 

of this section shall not affect the duties or liabilities of any street 33 

railway company for or concerning the construction or maintenance 34 

of any bridge or part thereof which any private person or corpora- 35 

tion maybe liable, in whole or in part, to construct or maintain. 36 

Section 45. If, upon the trial of an action against a city, town, 1 

railroad corporation or bridge corporation, the plaintiff recovers 2 

damages for an injury to his person or property which was caused by 3 

reason of a defect in a street, highway or bridge which is occupied 4 

by the tracks of a street railway company, and the street railway 5 

company is liable for such damages and has had reasonable notice to 6 

defend the action, the city, town, railroad corporation or bridge 7 

corporation may recover the damages, and all the costs of both plain- 8 

tiff and defendant in the action from the street railway company. 9 

Section 46. Every street railway company shall erect and 1 

maintain suitable guards or railings upon every bridge or draw of 2 



Chap. 112.] street railway companies. 1055 

3 a bridge which is crossed by its track, which shall be sufficient to mo, 306. 

4 prevent its cars from running off and shall be satisfactory to the If. 1 ' m ' §§ 23, 

5 board of aldermen of the city or the selectmen of the town in f 5 ' s> 113> §§ u ' 

6 which such draw or bridge or any portion thereof is situated. If, 

7 for sixty days after service upon it of an order of a board of alder- 

8 men or the selectmen relative to such guards or railings, it neglects 

9 to comply therewith, it shall, for each month of such neglect sub- 

10 sequent to said sixty days, forfeit two hundred dollars, to the use 

11 of the city or town. 

1 Section 47. The board of aldermen or the selectmen mav estab- Notice ofap. 

_,.,, -!,• ..!-,. J proacn or cars. 

2 lish such regulations, requiring the driver, motorman or conductor ^>| 29 >§ 22 - 

3 to give notice or warning of the approach of street cars, as shall in p. s'. m', § 36. 

4 their opinion best secure the unobstructed use of the tracks and the 

5 free passage of the cars. 

1 Section 48. Whoever wilfully and maliciously obstructs a street p enaity for 

2 railway company in the legal use of a railway track, or delays the tracks. 

• • • 1864 229 § 22 

3 passing of the cars or railway carriages thereon, or aids in or abets i87i! 38i| § 29! 

4 such detention or delay, shall be punished by a fine of not more 1901,' 452.' §37 ' 

5 than five hundred dollars or by imprisonment for not more than 7AUen > 5 73. 

6 three months. 

7 Whoever commits any of said acts in such manner as to endanger 

8 the life or safety of persons conveyed in or upon said cars or railway 

9 carriages, or aids or assists therein, shall be punished by imprison- 

10 ment in the state prison for not more than ten years, or by a fine 

11 of not more than one thousand dollars. 

1 Section 49. If a street railway company, its agents or servants, — forobstruc 

2 wilfully or negligently obstruct a street or highway, or hinder the 1864, ^L 8 *^ 8 ' 

3 passing of carriages over the same, or wilfully detain the cars of pjs.ii3, §38. 

4 another company which has the lawful right to pass thereon, it 

5 shall be punished by a fine of not more than five hundred dollars ; 

6 and any such agent or servant shall be punished by a fine of not 

7 more than ten dollars or by imprisonment for not more than three 

8 months. 

1 Section 50. If a street railway company, its agents or servants — for allowing 

• sales bv chil 

2 allow a child under the age of ten years to enter upon or into drenoncars. 

3 any of its cars for the purpose of selling newspapers or other arti- 1889 > 229 - 

4 cles therein or offering them for sale, it shall forfeit fifty dollars for 

5 each offence which shall be recovered by any person by an action 

6 brought within three months after the offence has been committed. 



6* 



1 Section 51. A street railway company may use such motive Motive power. 

2 power on its tracks as the board of aldermen of cities or the select- mi, ssi, § u. 

3 men of towns, through which its tracks are located, may from time r - s - 113 » § 39 - 

4 to time permit. 



irds. 



1 Section 52. A street railway company shall equip its cars, Fenders and 

2 when in use, unless propelled by horse power, with s-ich fenders vsxfdE*' 

3 and wheel guards as may be required by the board, and the board HIS;!?!; 5 

4 may, from time to time, modify its requirements. 



1056 



STREET RAILWAY COMPANIES. 



[Chap. 112. 



Heating of 
street cars. 
1895, 136. 



Section 53. The board shall require street railway companies 1 

to heat their cars when in use for the transportation of passengers, 2 

at such times, by such means and to such extent, as the board 3 

determines, and a company shall forfeit twenty-five dollars for each 4 

trip run by any of its cars not so heated unless in case of accident 5 

to the heating process or apparatus. The district police shall cause 6 

the provisions of this section to be enforced. 7 



fing e cari9? ink " Section 54. A street railway company may allow street sprink- 1 

1897,315. ling cars or similar apparatus to be used upon its tracks, may fur- 2 

nish the motive power and use of tracks or other facilities, and may 3 

make contracts therefor ; but the provisions of this section shall be 4 

operative in the city of Boston only to such extent and subject to 5 

such regulations and restrictions as the board, having regard to the (> 

necessities of public travel, may approve. 7 



Gravel, etc., 
cars. 
1898, 328. 



Section 55. A street railway company may, with the consent of 1 

the mayor and board of aldermen of a city or the selectmen of a town, 2 

convey, in cars operated by electricity or horse power, over its tracks 3 

snow, ice, stones, gravel, dirt or street sweepings taken from any 4 

street or way over or through which its tracks are located, for the 5 

purpose of improving said street or way, or may convey to any point 6 

on its line necessary material for use in the construction, grading, 7 

repairing or improving of such street or way. 8 



Enclosed plat- 
forms. 
1897, 452, § 1. 
1900, 414, § 1. 



Section 56. On and after the first day of December in the year 1 

nineteen hundred and two, all street cars in use for the transporta- 2 

tion of passengers in December, January, February and March in 3 

each year, except as provided in the following section, shall have 4 

their platforms enclosed in such manner as to protect the motor- 5 

men, conductors or other employees who operate such cars from 6 

exposure to wind and weather in such manner as the board shall 7 

approve. 8 



Decisions of Section 57. All decisions heretofore rendered by said board 1 

thereto. under any provision of law shall continue to have the same force 2 

1 SO 1- A.R9 

1900U14! and effect as they have at the time when this act takes effect, but 3 

4 



they shall be subject to revision by the board. 



Definition. 

1897, 452, § 2. 
1900, 414, § 3. 



Section 58. Such street cars shall include all street cars which 1 

are operated by steam or electricity, which, while in motion, require 2 

the constant care or service of an employee upon the platforms of 3 

the car or upon one of them. 4 



F897 al 452' § 3 Section 59. A street railway company which fails or neglects 1 

i9ooJ4i4;§§4,5. to comply with the provisions of the three preceding sections shall 2 

be punished by a fine of not more than one hundred dollars for 3 

each day during which such neglect continues, and a superintendent 4 

or manager of such street railway who causes or permits such viola- 5 

tion shall be jointly and severally liable with said railway to said 6 

fine, and, in default of payment thereof, may be committed to jail 7 

until the fine is paid, but for not more than three months. 8 



Chap. 112.] street railway companies. 1057 

1 Section 60. A street railway company whose railway is con- Provisions of 

2 structed in part outside the limits of public ways shall, with respect iS.Toi!^ 5 ble " 

3 to the equipment, use and operation of its railway and transportation 

4 thereon, be subject to all the provisions of law relative to street 

5 railways and street railway companies, as fully as if its railway were 

6 located wholly within the limits of public ways. 

1 Section 61. If a public way in which a street railway location supervision by 

2 has been granted shall be thereafter laid out, taken charge of or co^JisliZ* 7 

3 constructed by or under the authority of the state highway commis- 1898 ' 578 ' § u ' 

4 sion, said commission shall thereafter, relative to the location and 

5 maintenance of street railways upon such state highway, have the 

6 same authority and exercise it in the same manner and subject to 

7 the same provisions as is conferred by the provisions of sections 

8 seven, eleven, thirty, thirty-one, thirty-two and forty-four upon 

9 boards of aldermen and selectmen, but subject to the same rights of 

10 abutters and of the street railway company, as is provided in sec- 

11 tion seven with respect to the relocation and maintenance of street 

12 railways in other public ways which are not under the charge of said 

13 commission. 

CROSSINGS OF RAILROADS. 

1 Section 62. If a street railway crosses at the same level a cars to stop at 

2 steam railroad where locomotive engines are in daily use, every crossings. 

3 driver or motorman of a car upon the street railway shall, when g^I.^'Imz. 

4 approaching the point of intersection, stop his car within one hun- if^' Is?' f s 3 ^ 

5 dred feet of the crossing. For each violation of the provisions of i?- g ' ,,»' 5S41 ' 

6 this section, the driver or motorman shall forfeit ten dollars and the 42. 

7 company which employs him shall forfeit twenty dollars. 

1 Section 63. A street railway shall not be constructed across Grade cross- 

2 the tracks of a railroad nor shall a railroad be constructed across islf, 229, u § ^^ 

3 the tracks of a street railway at the same level therewith without the pj^.m, §40. 

4 consent of the board of railroad commissioners or of a special board gfeVn'MW 

5 of commissioners appointed as provided in the following section. 

1 Section 64. A corporation which desires to construct its rail- commission. 

2 road across the tracks of a street railway or to construct its street 1895 > 426 > § 2 - 

3 railway across the tracks of a railroad at the same level therewith 

4 may elect whether the right to cross shall be determined by the 

5 board of railroad commissioners or by a board of special commis- 

6 sioners, and, upon exercising its election, its right to apply to the 

7 other board shall cease. If it elects a board of special commis- 

8 sioners, it shall apply to the superior court for the county in which 

9 the crossing is proposed to be made, which, after notice to all the 

10 parties interested and a hearing, shall appoint a commission of three 

11 disinterested persons, who, after hearing the parties, shall deter- 

12 mine whether the public convenience and safety reasonably require 

13 a crossing at the same level and, if so, how it shall be constructed, 

14 and shall make return thereof to the court within thirty days after 

15 the close of the hearing. Such return, when accepted by the court, 

16 shall be final between the parties. Such special commissioners shall 

17 be paid in the same manner as auditors who are appointed by the 

18 superior court. 



1058 



STREET RAILWAY COMPANIES. 



[Chap. 112. 



Abolition of 
grade cross- 
ings. 
1898, 404, § 1. 



Section 65. For the purpose of avoiding or abolishing a cross- 1 

ing of a railroad by the tracks of a street railway company at grade, 2 

the company may purchase or otherwise take land necessary there- 3 

for, not exceeding fifty feet in width, outside the limits of a public 4 

way ; but no land shall be so taken which cannot lawfully be taken 5 

for the laying out of a railroad, nor shall it be so taken until a plan 6 

on an appropriate scale, showing by metes and bounds the land pro- 7 

posed to be purchased or taken and the names of the owners thereof 8 

has, after notice to such owners, and after such public notice and 9 

hearing as is required by section seven, been approved in writing 10 

by the board of aldermen of the city or the selectmen of the town 11 

in which such land is situated ; nor shall the land of a railroad cor- 12 

poration or of another street railway company b6 so taken without 13 

its consent, without the approval of the board of railroad commis- l 



sioners, after notice and a hearing. 



15 



Description 
of land to be 
filed. 
1898, 404, § 2. 



Section 66. A deed or description, and a plan of the land so 1 

purchased or taken shall be filed in the registry of deeds for the 2 

county or district in which the land is situated ; and the provisions 3 

of law relative to the assessment, payment or recovery of damages 4 

for land and other property taken for railroad purposes shall apply 5 

to land and property taken under the provisions of the preceding 6 

section. , 7 



Construction 
of track out- 
side way. 
1898, 404, § 3. 



Section 67. A street railway company, which has acquired land 1 

for such purpose, may construct its railway over or under a railroad, 2 

in the manner agreed by the companies, or, if they do not agree, in 3 

the manner prescribed by the board ; but no overhead structure 4 

shall be built at a height of less than eighteen feet above the rail- 5 

road track without the consent in writing of the board. 6 



Structures 
within limits 
of way. 
1898, 404, § 4. 



Section 68. The board of aldermen of a city or the selectmen 1 

of a town may authorize structures or alterations within, or partly 2 

within, the limits of a public way which are necessary for carrying 3 

a street railway over or under a railroad, if such way is not thereby 4 

made unsafe for other public travel. If such public way is a state 5 

highway, the consent of the Massachusetts highway commission 6 

shall also be required. 7 



Reasonable 
accommoda- 
tions, etc. 

1864, 229, § 26. 

1865, 261. 
1871, 381, § 33. 
P. S. 113, § 43. 



FARES AND ACCOMMODATIONS. 

Section 69. Every street railway company shall furnish reason- 1 

able accommodations for the conveyance of passengers, and for every 2 

wilful neglect to provide such accommodations shall forfeit not less 3 

than five nor more than twenty dollars ; and its directors may estab- 4 

lish the rates of fare for all passengers and property conveyed or 5 

transported in its cars, subject, however, to the limitations named 6 

in its charter or hereinafter set forth. 7 



Additional 
accommoda- 
tions. 
1891, 216. 



Section 70. If, in the opinion of the board, additional ac- 1 

commodations for the travelling public are required upon any street 2 

railway, it may, after due notice to the company and a hearing, 3 

make an order requiring such additional accommodations to be pro- 4 

vided as it determines are just and may alter, renew or revoke the 5 



Chap. 112.] street railway companies. 1059 

6 order. A street railway company which, for more than one week 

7 after receiving notice in writing of such order, neglects to comply 

8 therewith, shall forfeit to the use of the city or town for which 

9 such additional accommodations are ordered, or if they are to be 

10 provided for more than one city or town, to the use equally of such 

11 cities or towns, one hundred dollars for each day thereafter during 

12 which such neglect continues. 

1 Section 71. Street railway companies may provide cars for special service 

2 special service and may make special rates therefor ; and may make mi,' 5is, § is. 

3 special rates for working men and working women on week days 

4 between the hours of five and seven in the morning and five and 

5 seven in the evening, and for children attending school. They shall 

6 not give free tickets or passes to any state, county or municipal 

7 official or to any person in the employ of the commonwealth or 

8 of any county, city or town, except policemen, firemen and letter 

9 carriers, in uniform ; but they may give them to a director of the 

10 company or to any person who is connected with it in any executive 

11 capacity. A violation of the provisions of this section shall be a 

12 sufficient reason for the board of railroad commissioners, in its dis- 

13 cretion, to approve the revocation of a location or any portion 

14 thereof. 

1 Section 72. The rates of fare charged by street or elevated fj^uputh 8 . 

2 railway companies for the transportation of pupils of the public j^dSe c 

3 schools between a given point, from or to which it is necessary for isoo, iw. 

4 them to ride in travelling to or from the school houses in which they 

5 attend school and their homes, whether such school houses are 

6 located in the city or town in which the pupils reside or in another 

7 city or town, shall not exceed one-half the regular fare charged by 

8 such street or elevated railway company for the transportation of 

9 other passengers between said points, and tickets for the transporta- 

10 tion of pupils as aforesaid, good during the days when said schools 

11 are in session, shall be sold by said companies in lots of ten each. 

12 A railway company which violates the provisions of this section 

13 shall forfeit twenty-five dollars for each offence. 

1 Section 73. All proceedings relative to the regulation of fares Regulation of 

2 upon street railways shall be governed by the provisions of chapter {m%29, § 26. 

3 one hundred and eleven relative to the changes and regulation of p 87 s'.n3,§M. 

4 fares upon railroads, and such provisions shall apply to street rail- i|of; ilo! § 23 ' 

5 ways. 

1 Section 74. No corporation which operates a street railway shall ^checks™ 1 

2 withdraw or discontinue the use of any free checks or free transfers regulated. 

3 from one car or line of cars to another without the approval ot the 

4 board. 

1 Section 75. A street railway company which is established J^g 1 ^ * 

2 under the laws of this commonwealth may carry the United States ^Y B 2w perB " 

3 mail, and may also act as a common carrier of newspapers in any 

4 city or town in which it is authorized to operate its railway, subject 

5 to such ordinances and by-laws as may from time to time be made 

6 by such city or town, and also subject to the provisions of chapter 

7 seventy and of all other laws relative to common carriers. 



1060 



STREET RAILWAY COMPANIES. 



[Chap. 112. 



Pleasure 

resorts. 
1895, 316. 



ACQUISITION OF PLEASURE RESORTS. 

Section 76. Street railway companies may, except in the city 1 

of Boston, acquire, hold, maintain and equip land for purposes of 2 

recreation and for pleasure resorts. Admission to the grounds of 3 

such pleasure resorts shall be free, subject to such restrictions as 4 

may be imposed by the mayor and aldermen of cities or the select- 5 

men of towns in which such grounds may be situated ; but said 6 

companies shall not sell intoxicating liquors nor allow them to be 7 

sold on said grounds. Such companies shall not acquire or sell 8 

such land without the approval of the board. Such companies may, 9 

in accordance with the provisions of section twenty -four of chapter 10 

one hundred and nine, increase their capital stock and issue bonds 11 

to the amount considered reasonably necessary by said board for 12 

the purposes named in this section, but not in any one case exceed- 13 

ing one hundred thousand dollars. 14 



Use of tracks 
of other roads 
regulated. 
1874, 29, § 12. 
P. S. 113, § 48. 
12 Allen, 262. 
118 Mass. 290. 
143 Mass. 200. 
175 Maes. 518. 



CONNECTING ROADS. 

Section 77. If the board of aldermen or the selectmen, after 1 

notice and a hearing, decide that public necessity and convenience 2 

so require, they ma}^ authorize a street railway company, whose 3 

tracks have been duly located in their city or town, and which owns 4 

and operates not less than two continuous miles of track, to enter 5 

upon and use with its horses and cars, within defined limits, the 6 

tracks of any other street railway company therein which it may 7 

meet or cross, subject to the provisions of the eight following 8 

sections. 9 



approval* t0 Section 78. A street railway company shall not run its cars 1 

1888, 278, § i. over or use the tracks of another street railway company until the 2 

authority therefor has been approved by the board of railroad com- 3 

missioners after a hearing of all parties in interest. 4 

Ia"ted whlfe" Section 79. If the track of either company is in two or more 1 

track is in two cities or towns, and the boards of aldermen or the selectmen thereof 2 

or more towns. ' . 

1874, 29, § 14. are unable to agree as to the necessity for such entry and use, the 3 

P S 113 § 49 *-' ^ ... 

143 Mass. 2oo.' board of railroad commissioners shall, upon the petition of either 4 

company, after a hearing, decide whether public convenience and 5 

necessity require such entry and use, and shall determine the extent 6 

of use of tracks and the number and routes of cars ; and its decision 7 

shall be final. 8 



— manner of, 
determined. 

1863, 223, §§ 1, 
2,5. 

1864, 229, § 29. 
1871, 3S1, § 38. 
P. S. 113, § 50. 
12 Allen, 262. 
118 Mass. 290. 
139 Mass. 454. 



Section 80. If a street railway company, which has been duly 1 

authorized by law, enters upon and uses or proposes to enter upon 2 

and use the tracks or any portion thereof of another company, and 3 

the companies cannot agree upon the manner and conditions of such 4 

entry and use or the compensation to be paid therefor, the board, 5 

after notice to and a hearing of the parties interested, shall deter- 6 

mine the rate of compensation to be paid for future use, and, if 7 

desired by either party, for past use ; or shall fix the manner and 8 

stated periods of such use, or the mode of connection of the tracks, 9 

having reference to the convenience and interest of the companies 10 

and of the public to be accommodated thereby. The award of the 11 



Chap. 112.] street railway companies. 1061 

12 board shall be binding upon the respective companies interested 

13 therein ; but no such award shall apply to a period of time covered 

14 by a previous award of commissioners or by an agreement of parties. 

1 Section 81. A street railway company which lawfully enters compensation 

2 upon and uses the tracks of another company shall thereafter, until m lnatiln deter " 

3 the rate of compensation has been agreed upon or fixed as provided il^l; |||' || lb 4 ' 

4 in the preceding section, pay for such use monthly at such rate as Sh' wi' « so' 

5 the board, upon petition of either party and notice to the other, shall 40 - ' 

6 from time to time order. If the compensation finally established by 52. " 3 ' §§51> 

7 the board for the prior use of tracks exceeds the rate previously fixed 

8 by it, the excess shall be paid by the company using the tracks ; 

9 and if it falls below such rate, the difference shall be deducted from 

10 the compensation subsequently accruing. If the company fails to 

11 make such payments monthly at the rate named by the board the 

12 supreme judicial court shall have jurisdiction in equity to enjoin the 

13 further use of said tracks until all payments in arrear have been 

14 made or satisfactorily secured. 

1 Section 82. In all cases heard before the board under the pro- Award, ex. 

2 visions of the two preceding sections, the expenses and costs attend- co8tsof and 

3 ing the same shall be paid by such party, or divided between the i||; f|j; | j$ 2 

4 parties in such proportions, as the board determines. p 7 s' iil'lei' 

1 Section 83. An award made by the board under the provisions —how revised. 

«j *• 1871 381 R 4.9 

2 of this chapter shall be forthwith filed in the supreme judicial court p. s'. 113, § 54. 

3 in the county in which the question passed upon arose, and shall be 

4 there subject to revision in the same manner as if the board had 

5 derived its power to act in the premises under the appointment of 

6 said court. 

1 Section 84. A street railway company, while using the tracks corporation 

2 of another company, shall conform to the rules and regulations from S-acfs of an. 

3 time to time established by the authorities of the respective cities form to rules. 

4 and towns through which its cars run, and to the rules and regula- H?f ; Hf; 1 1{; 

5 tions adopted by the company whose tracks it uses, for the regulation p - s - 113 > § 55 - 

6 of its own cars and employees, and shall keep an account of the 

7 number of cars daily run by it. 

lease or sale of road. 

1 Section 85. No street railway company shall lease or contract ^sed^rsoid 6 

2 for the operation of its railway for a period of more than ninety-nine ggf^ 6 ^ ' 

3 years without the consent of the general court, nor, except as pro- mi! 38i! § s\. 

4 vided in the three following sections, shall it sell its road unless i807,"2i3,'§3. " 

5 authorized so to do by its charter or by special act of the general n-futsi%L 

fi prmrr 15T M,,8S - 39 - 

O COUrt. 173 MaS8 . 287. 

1 Section 86. A street railway company which is incorporated |^on r of OBBoU ' 

2 under the laws of this commonwealth may sell and convey its fran- Jg*^ § L 

3 chise and property to, or may consolidate with, any other such street 

4 railway company whose railway connects with, intersects or forms 

5 a continuous line with its own if the facilities for travel on the 
f> railway of each of said companies shall not be thereby diminished 



1062 



STREET KAILAVAY COMPANIES. 



[Chap. 112. 



or the rates of fare increased, and such other company may pur- 7 

chase of or consolidate with it as aforesaid ; but such purchase and 8 

sale or consolidation shall not be valid or binding until the terms 9 

thereof have been agreed to by a majority of the directors and have 10 

been approved, at meetings called for the purpose, by a vote of 11 

two-thirds in interest of the stockholders of each of the contracting 12 

companies, and by the board of railroad commissioners as required 13 

by section two hundred and seventy-eight of chapter one hundred 14 

and eleven. 15 



Increase of 
capital. 
1897,' 269, § 2. 



Powers and 
duties of 
consolidated 
company. 
1897, 269, § 3. 



Section 87. The purchasing or consolidated company may, 1 

subject to the provisions of section twenty-four of chapter one hun- 2 

dred and nine, increase its capital stock and issue bonds to an 3 

amount necessary for the purposes authorized in the preceding sec- 4 

tion, and may exchange its securities for those of the selling or 5 

merged company, if the aggregate amount of the capital stock and 6 

debt of the two contracting companies shall not by reason of such 7 

purchase and sale or consolidation be increased. 8 

Section 88. Such purchasing or consolidated company shall 1 

have the powers and privileges, and be subject to the duties, liabili- 2 

ties and restrictions, of the company selling or merged, but no 3 

right to conduct an express business or to be a common carrier 4 

of merchandise shall, by reason of any such sale or consolidation, 5 

be allowed over any location where it had not been granted prior 6 

to the tenth day of April in the year eighteen hundred and ninety- 7 

seven. 8 



Operating 
contracts and 
leases. 
1897, 213, §§ 1, 2. 



Section 89. Two street railway companies which are incor- 
porated under the laws of this commonwealth, whose railways con- 
nect with or intersect each other or together form a continuous line, 
may contract that either company shall perform all the transporta- 
tion upon and over the railway of the other ; or any such company 
may lease its franchise, property and railway to any other such 
company ; but the facilities for travel on either of the railways of 
said companies shall not be thereby diminished or the rates of fare 
increased. Such contract or lease shall not be valid or binding 
until its terms have been agreed to by a majority of the directors 
and have been approved, at meetings called for the purpose, by the 
vote of a majority in interest of the stockholders of each of said 
companies, and have been approved by the board as required by 
section two hundred and seventy-eight of chapter one hundred and 
eleven. The income arising from such contracts or leases shall be 
subject to the provisions of law relative to the right to reduce their 
fares, in the same manner as that arising from the use of the rail- 
ways. Such railways shall be considered as connecting with or 
intersecting each other, or forming a continuous line, if one of them 
connects with or intersects or forms a continuous line with a railway 
leased to or operated by the other under a contract authorized by 
the provisions of this section. 



Section 90. 



Powers under 
contracts or 

1897^213, §4. operation, or takes a lease, of another railway shall, subject to the 
terms of such contract or lease, have and enjoy the powers and privi 



1 
2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 



A street railway company which contracts for the 1 

2 
3 



Chap. 112.] street railway companies. 1063 

4 leges, and shall be subject to the duties, liabilities and restrictions 

5 of the company which owns it ; but no right to carry on an express 

6 business or to be common carriers of merchandise shall be allowed 

7 over any location where it had not been granted prior to the twenty- 

8 ninth day of March in the year eighteen hundred and ninety-seven. 

1 Section 91. No street railway company shall appropriate any Proceeds of 

2 money for the payment of dividends which has been received for the useVfoVdiv?- 

3 sale of any portion of its railway unless it first reduces its capital fl^f 229, § 39. 

4 stock issued, by an amount which, at its par value, is equal to the p. 7 !'. 113, f 57. 

5 amount which such portion of its railway cost said company. 

EXTENSION OF FRANCHISE. 

1 Section 92. A street railway company which, by its charter or Extension of 

2 certificate of incorporation, or by special legislative act, is author- adjoTiu-og 1 ° 

3 ized to construct, maintain and operate a street railway in any city i896°56i. 

4 or town in this commonwealth, and which has constructed its rail- 

5 way therein, may, subject to the provisions of the general laws 

6 relative to the location, construction and operation of street rail- 

7 ways, extend its railway into such other cities and towns in this 

8 commonwealth adjoining those cities and towns only in which said 

9 street railway company was empowered to build and operate its road 

10 under its original charter, as the board shall, upon the application 

11 of such company, and after public notice and a hearing of all parties 

12 interested, certify that the public convenience requires. A duly 

13 attested copy of such certificate shall, within three days after the 

14 granting of the same, be filed by the board in the office of the secre- 

15 tary of the commonwealth. 

BOOKS, RETURNS AND REPORTS. 

1 Section 93. Every street railway company shall keep its books Books and 

2 and accounts in a uniform manner, upon the system heretofore pre- 1857, 40,' §§ 5, 6; 

3 scribed by the board ; and the directors of every company shall i 8 o8, le, §*s. 

4 annually, on or before the first Wednesday of November, transmit f^f' 63, §§ U3 > 

5 to the board a report of the doings of the company for the year i^ 64 - 229 > §§ 40 > 

6 ending on the thirtieth day of September preceding, which shall be i|70, 307, 383^ 

7 sworn to by themselves and by the treasurer and the superintendent 53, 56. 

8 of the companv. Such report shall set forth copies of all leases and § 1. ' 

9 contracts made during the year with other companies and mdi- 

10 viduals, and shall contain full and complete information upon the 

11 several items contained in the form prescribed by the board. A 

12 company which owns a leased road shall be responsible for the com- 

13 pleteness and correctness of its annual returns to the same extent 

14 as if the road was in its own possession. If a report is defective or 

15 appears to be erroneous, the board shall notify the company to 

16 amend it within fifteen days. A company which neglects to make 

17 a report, or to amend it when notified so to do, shall forfeit twenty- 

18 five dollars for each day during which such neglect continues. 

1 Section 94. The board may from time to time make changes in Board^may^ ^ 

2 and additions to the form of the returns required by the preceding rSfs; ™ 

3 section, if it gives to the several companies one year's notice of any ^mfft*' 



1064 



STREET RAILWAY COMPANIES. 



[Chap. 112. 



g. s. 63, § 145. such changes as require an alteration in the method or form of 
\m, Hi! I Mi keeping their accounts ; and shall annually, on or before the fifteenth 
p. s. ii3, § 59. fay f September, furnish blank forms for such returns. 



4 

5 
6 



toward ex ion Section 95. Every street railway company shall, at the time of 1 

pen se of print- transmitting- its annual report to the board, pay twenty dollars .to the 2 

in°" r6port. " 

1892, 254. ' treasurer and receiver general to be applied to the expense of print- 3 

ing and binding such report. 4 



Tables and 
abstracts of 
reports. 
1871, 381, § 55. 
P. S. 113, § 60. 



Lessee of road 

to make same 

report to 

lessor. 

1864, 229, § 24. 

1871, 381, § 32. 

P. S. 113, § 61. 



Records of 
proceedings 
before boards. 
1898, 578, § 25. 



Section 96. The board shall prepare tables and abstracts of the 1 

reports of the several companies, and transmit said reports and ab- 2 

stracts to the secretary of the commonwealth at the time and in the 3 

manner provided in section eleven of chapter one hundred and 4 

eleven for the transmission of the reports of railroad corporations. 5 

Section 97. The lessee of a street railway shall make to the 1 

company which owns it the same annual report under oath of the 2 

operations and business of the road as is required of the company 3 

which owns it ; and, for failure so to do, shall be liable in an action 4 

of tort to said company for all the penalties prescribed by law for 5 

failure by it to make its annual report. 6 

Section 98. Every state board and commission shall keep a 1 

record of its proceedings in any matter considered by it under the pro- 2 

visions of this chapter or under any laws affecting street railways, in 3 

which it shall enter every request made by any party before it for a 4 

ruling of law and of its action upon such request, and the neglect to 5 

either grant or refuse such request shall be taken in any judicial 6 

review of such proceedings as a refusal. 7 



Board to notify 
attorney gen- 
eral of viola- 
tions of law, 

1870, 307, §5; 

383, § 1. 

P. S. 113, § 62. 



ADDITIONAL REMEDIES. 

Section 99. If, in the judgment of the board, a street rail- 1 

way company has violated any law relative to such company, and 2 

after notice in writing from the board, continues such violation or 3 

refuses or neglects to make returns as required by law, or to amend 4 

the same when lawfully required so to do, the board shall forthwith 5 

present the facts to the attorney general for his action. 6 



Laws, how 
enforced. 
1861, 199, § 1. 
1864, 229, § 43. 
1866, 294, § 1. 
1871, 381, § 57. 
P. S. 113, § 63. 
1891, 293. 
1898, 578, § 25. 
161 Mass. 416. 
175 Mass. 518. 



Section 100. The supreme judicial court or the superior court 1 

shall have jurisdiction in equity, upon the petition of a street rail- 2 

way company, or of the mayor and aldermen of a city or the 3 

selectmen of a town in which the street railway is located, or of 4 

any interested party, to compel the observance of and to restrain the 5 

violation of all laws which govern street railway companies, and of 6 

all orders, rules and regulations made in accordance with the pro- 7 

visions of this chapter by the board of aldermen of a city, the select- 8 

men of a town or by the board of railroad commissioners, and to 9 

review, annul, modify or amend the rulings of any state board or 10 

commission relative to street railways as law and justice may 11 

require. 12 



Chap. 113.] savings banks. 1065 

CHAPTEK 113. 

OF SAVINGS BANKS AND INSTITUTIONS FOR SAVINGS. 

Sections 1-9. — Board of Commissioners of Savings Banks. 

Sections 10-13. — General Provisions. 

Sections 14-19. — Officers and Meetings. 

Sections 20-24. — Banking House. Transaction of Business. 

Sections 25-29. — Deposits, Loans and Investments. 

Sections 30-41. — Dividends and Payments. 

Sections 42-45. — Special Trust Funds. 

Sections 46-54. — Books and Returns. 

Sections 55, 56. — Unclaimed Deposits. 

BOARD OF COMMISSIONERS OF SAVINGS BANKS. 

1 Section 1. There shall be a board of commissioners of savings Board of com- 

2 banks consisting of three persons, one of whom shall annually "ppoStmlnt. 

3 before the first day of July be appointed by the governor, with the lill', 43. §§ *' 7 ' 

4 advice and consent of the council, for a term of three years from \^\> f^ §§ 1 7 

5 said day, and who may in like manner be removed. Said commis- g. s'.57,'§§ 1,2. 

6 sioners shall be sworn and the governor shall designate one mem- i87e| 231! §§ 1-3! 

7 ber of the board to be the chairman. 1894, 317, §1. 148 Mass. 242. i889,'32i,'§i.* 

1 Section 2 . The annual salary of the chairman of the board shall ^ l0 *ytn C i e 5 s and 

2 be three thousand five hundred dollars and that of the other com- Jjgs. jo-Vi) 

3 missioners three thousand dollars each. The board may employ is59|i48! 

4 two clerks ; the annual salary of the first clerk shall be two thousand i862,*2i2. 

ICfiC 1 GO C O 

5 dollars and that of the second clerk, fifteen hundred dollars. It may mo, 244! ' 

6 employ additional clerical and expert assistants as it may from time 1379; ill'; § 293, 

7 to time require and may annually expend therefor, including the | g | 161 §5 

8 actual travelling expenses of such assistants, not more than twenty- f^'Uflf- 

9 five hundred dollars. The board shall also be allowed its necessary 1886I252! 

10 office expenses and the actual expenses incurred in travelling in the 1892)248. 

1HQ4 m*7 £9. 

11 performance of its official duties. 1895,66. 1897,362. 

1 Section 3. The commissioners or one of them shall, at least ^n°tto n ex t ' 

2 once in each year and whenever they consider it expedient, visit banks by. 

3 each savings bank incorporated in this commonwealth, and, if it is 1m, 127, § 2. 

4 connected with a national bank, they shall make such arrangements is*66,"i 5 Jj, § §§ 2, 8. 

5 with the national bank examiner, if possible, that their visits shall pj|. ne, §3. 

6 be simultaneous. At such visits they shall have free access to the Js^;^^. 

7 vaults, books and papers, and shall thoroughly inspect and examine 

8 the affairs of said corporation, to ascertain its condition, its ability 

9 to fulfil its obligations and whether it has complied with the pro- 

10 visions of law. They shall preserve in a permanent form a full 

11 record of their proceedings, including a statement of the condition 

12 of each of said corporations. 

1 Section 4. Anv of the commissioners may summon the trustees, -may sum. 

m />i j- 11J.T.-J. mon and ex- 

2 officers or agents of such corporation, and sucn other witnesses as amine officers, 

3 he thinks proper, and examine them relative to the affairs, trans- isss, 14, § 3. 

4 actions and condition of the corporation, and for that purpose may lasii 127. § 3. 



1066 



SAVINGS BANKS. 



[Chap. 113. 



G. S. 57, § 5. 
1866, 192, § 3. 
1876, 231, § 3. 
P. S. 116, § 4. 
1894, 317, § 4. 



administer oaths. Whoever, without justifiable cause, refuses to 5 

appear and testify when so required, or obstructs a commissioner 6 

in the performance of his duty, shall be punished by a fine of not 7 

more than one thousand dollars or by imprisonment for not more 8 

than one year. 9 



Examination 
of bank on 
request of 
officers, etc. 
1851, 127, § 4. 
G. S. 57, § 6. 
1866, 192, § 4. 
1876, 231, § 3. 
P. S. 116, § 5. 
1894, 317, § 5. 



Section 5. Upon the written application under oath to the 1 

commissioners by five or more officers, trustees, creditors or de- 2 

positors of such corporation setting forth their interest and the 3 

reasons for making an examination and requesting them to examine 4 

such corporation, they shall forthwith make a full investigation of 5 

its affairs in the manner before provided. 6 



Proceedings 
when bank is 
insolvent or in 
a hazardous 
condition. 

1838, 14, § 5. 

1839, 27, § 2. 
1851, 127, § 5. 
G. S. 57, § 7. 
1866, 192, § 5. 
1876, 231, § 3. 
P. S. 116, § 6. 
1894, 317, § 6. 



Section 6. If upon examination a savings bank appears to be 1 

insolvent or its condition such as to render the continuance of its 2 

business hazardous to the public or to those having funds in its 3 

custody, the commissioners shall apply, or, if such corporation ap- 4 

pears to have exceeded its powers or failed to comply with any 5 

provision of law, may apply to the supreme judicial court, which 6 

shall have jurisdiction in equity of such application, for an injunc- 7 

tion to restrain such corporation, in whole or in part, from further 8 

proceeding with its business. The court may appoint one or more 9 

receivers to take possession of its property and effects, subject to 10 

such directions as may from time to time be prescribed by the court. 11 



Schedule of 

property to be 

made. 

1878, 253, § 5. 

P. S. 116, § 7. 

1894, 317, § 7. 



Section 7. "When receivers are so appointed the treasurer of 1 

the corporation shall make a schedule of its property ; and he, with 2 

the board of investment and other officers transferring its property 3 

to the receivers, shall make oath that said schedule sets forth all the 4 

property which the corporation owns or is entitled to. The treas- 5 

urer shall deliver said schedule to the receivers and a copy thereof 6 

to the commissioners, who may at any time examine under oath 7 

such treasurer, board of investment or other officers, to determine 8 

whether all the property which the corporation owns or is entitled 9 

to has been transferred to the receivers. 10 



Commissioners 
to examine 
accounts, etc., 
of receivers. 
1878, 253, §§ 1-4. 
P. S. 116, §§ 8, 
10. 

1894, 317, §§ 8, 
10. 



Section 8. The commissioners, or one of them, shall at least 
once in each year, and whenever they consider it expedient, ex- 
amine the accounts and doings of said receivers ; and shall care- 
fully examine and report upon all accounts and reports of receivers 
made to the supreme judicial court and referred to them by it ; and, 
for such purposes, shall have free access to the books and papers 
relating to the transactions of such receivers, whom they may ex- 
amine under oath relative to such transactions. If in their opinion 
such receiver has violated his duty they shall present the facts to 
the supreme judicial court. 



1 

2 
3 
4 
5 
6 
7 
8 
9 
10 



— to report vio- 
lations of law 
by officers. 
1838, 14, § 6. 
1851, 127, § 10. 
G. S. 57, § 9. 
1866, 192, § 7. 
1876, 231, § 3. 
1878, 253, § 6. 



Section 9. If, in the opinion of the commissioners, such corpo- 1 

ration or its officers or trustees have violated any law relative to 2 

savings banks, they shall forthwith report such violation to the 3 

attorney general, who shall forthwith, in behalf of the common- 4 

wealth, institute a prosecution for such violation. 5 

P. S. 116, § 9. 1894, 317, § 9. 



Chap. 113.] savings banks. 1067 

general provisions. 

1 Section 10. The words " savings banks " as used in this chapter savings banks 

2 shall include institutions for savings incorporated as such in this deflned - 

3 commonwealth. 

1 Section 11. No bank, and no person, association or body cor- unauthorized 

2 porate, except savings banks incorporated in this commonwealth, hfbited g pro * 

3 and trust companies so incorporated previous to the first day of \Hl[ ||o! § L 

4 January in the year eighteen hundred and ninety-three, and which 189 *> sn, § 52. 

5 were organized and doing business on the first day of October in 

6 said year, shall advertise or put forth a sign as a savings bank or 

7 in any way solicit or receive deposits as a savings bank. A bank, 

8 association, corporation or person violating this provision shall for- 

9 feit one hundred dollars for each day such offence shall be continued. 

1 Section 12. Savings banks incorporated in this commonwealth savings banks, 

2 shall be subject to the provisions of the following sections as far duties of. n 

3 as the same are consistent with the provisions of their respective r f.36S § 7i. 

4 charters ; and any such corporation may, by vote at its annual meet- ^' 7 f;|o3,| \ 35 ' 

5 ing or at a meeting called for the purpose, accept any provision of fagf^'l j 1 } - 

6 said sections which is inconsistent with its charter. 

1 Section 13. Savings banks and their officers shall be subject to General court 

2 examination by a committee of the general court appointed for the further 1 reguia- 

3 purpose, who may examine their affairs and shall have free access to Is^sf'aMiT. 

4 their books and vaults. An officer of any such corporation, or other r 3 |^36%§40 

5 person having charge of its books and property, who refuses or g'| 4 - 57 §§102 

6 neglects to exhibit the same to such committee or obstructs its J2^55i 527 

7 examination thereof, shall be punished bv a fine of not more than p. s'. ue, § 12. 

1894: 317 § 12 

8 ten thousand dollars or by imprisonment for not more than three 9 cu'sh. 604. ' 

9 years. 

OFFICERS AND MEETINGS. 

1 Section 14. The officers of such corporation shall be a president, officers of such 

t f 1 -1 ji • j corporations. 

2 one or more vice presidents, a board 01 not less than nine trustees, 1834, 190, §§ 2, 3. 

3 a treasurer, clerk and such other officers as it may find necessary 73. ' ' ' 

4 for the management of its affairs. Such officers shall be sworn, 137 . ' ' 8S ' 

5 and shall hold their several offices until others are chosen and quali- p. 7 s. 11I', § § i3. 3 " 

6 fied in their stead, except as hereinafter otherwise provided. The 1894 > 317 > § 13 - 

7 president, vice president and trustees shall be chosen from the mem- 

8 bers, and no person shall hold an office in two such corporations at 

9 the same time. 

1 Section 15. Every treasurer, vice treasurer and assistant treas- Treasurer to 

2 urer shall give bond to the satisfaction of the trustees for the faithful f£l 203! §'3 C 

3 performance of his duties and shall file with the board of commis- p, 8 s'.iil,§H. 

4 sioners of savings banks an attested copy thereof, with a certificate J||[j; ^ 

5 of its custodian that the original is in his possession. Such officer ]^'|^'|Ji 

6 shall notify said board of any change thereafter made therein. If he J^Mass. 73. 

7 fails, within ten days from the date thereof, to file a copy of his 

8 bond, or to notify the board of any change therein, he shall be 

9 liable to a penalty of fifty dollars. The board shall keep a record 



1068 



SAVINGS BANKS. 



[Chap. 113. 



Choice and 
appointment 
of officers. 
1834, 190, § 3. 
R. S 36, § 74. 
G. S. 57, § 138. 
1864, 126. 
1868, 49. 
1876, 203, « 4. 
P. S. 116, § 15. 

1893, 254, § 2. 

1894, 317, § 15. 



Special meet- 
ings. 

1834, 190, § 4. 
R. S. 36, § 75. 
G. S. 57, § 139. 
1876, 203, § 5. 
P. S. 116, § 16. 
1884, 150. 
1894, 317, § 16. 



showing when said bonds expire, and the changes so notified, and, 10 

when in its judgment it is necessary for the security of the deposi- 11 

tors, it shall require a new bond in such amount and with such 12 

sureties as said board may approve. Said officers shall give new 13 

bonds at least once in five years. 14 

Section 16. The officers of such corporation, except the treas- 1 

urer, vice treasurer and assistant treasurer, shall be chosen at its 2 

annual meeting to be held at such time as the by-laws direct, any- 3 

thing in its charter to the contrary notwithstanding. The treasurer, 4 

vice treasurer and assistant treasurer shall be appointed by the 5 

trustees and shall hold office during their pleasure. If an office 6 

becomes vacant during the year, the trustees may appoint a person 7 

to fill it until the next annual meeting ; and if a person chosen or 8 

appointed does not, within thirty days thereafter, take the oath, his 9 

office shall thereupon become vacant. The person acting as clerk 10 

at such meeting shall, within ten days thereafter, notify all persons 11 

elected to office ; and within thirty days thereafter shall publish in 12 

a newspaper published in the county in which the corporation is 13 

established a list of all persons who have taken the oath of office to 14 

which they were elected. A clerk who neglects to give such notice 15 

or make such publication or who makes a false publication, and a 16 

person who knowingly publishes or circulates, or knowingly causes 17 

to be published or circulated, a printed notice containing the name 18 

of a person as an officer of such corporation who has not taken the 19 

oath of office, shall be liable to a penalty of fifty dollars. 20 

Section 17. Such corporation may hold special meetings by 1 

order of its trustees ; and its clerk shall notify special meetings 2 

upon request in writing of ten members of the corporation. Notice 3 

of all meetings shall be given by advertisement in a newspaper 4 

published in the county in which the corporation is established, 5 

and by seasonably mailing to each member a written or printed 6 

notice thereof. 7 



Members of 
such corpora- 
tions. 

1834, 190, § 5. 
R. S. 36, § 76. 
G. S. 57, § 140. 
1876, 203, § 6. 
P. S. 116, § 17. 
1888, 120. 
1890, 222. 
1894, 317, § 17. 



Regular meet- 
ings of trus- 
tees, etc. 
1876, 203, § 7. 
P. S. 116, § 18. 
1882, 50. 
1888, 96. 
1894, 317, § 18. 



Section 18. Such corporation may, at a legal meeting, elect by 1 

ballot any citizen of this commonwealth to be a member thereof; 2 

and any person may, at an annual meeting, cease to be a member, 3 

if, three months at least before such meeting, he has filed with the 4 

clerk a written notice of his intention so to do. If a member fails 5 

to attend two consecutive annual meetings his membership may, by 6 

vote of the corporation at its next annual meeting, be declared 7 

forfeited. Such action and vote recorded shall be evidence of for- 8 

feiture of membership. No person shall continue to be a member 9 

after removing from this commonwealth. 10 

Section 19. A regular meeting of the board of trustees of such 1 

corporation shall be held at least once in three months, for the pur- 2 

pose of receiving the report of its treasurer and for the transaction 3 

of other business. A quorum shall consist of not less than seven 4 

trustees, but less than a quorum may adjourn from time to time or 5 

until the next regular meeting. At each regular meeting the trus- 6 

tees shall cause to be prepared a statement showing the condition of 7 

the corporation as it appears upon its books, in the form of a trial 8 



Chap. 113.] savings banks. 1069 

9 balance of its accounts, and such statement shall be posted in a con- 

10 spicuous place in its banking room, and there remain until the next 

11 regular meeting of said board. A record shall be made at each 

12 meeting of the transactions of the trustees and the names of those 

13 present. If a trustee fails both to attend the regular meetings of 

14 the board and to perform any of the duties devolving upon him 

15 as such trustee, for six consecutive months, his office shall there- 

16 upon become vacant. A record of such vacancy shall be entered 

17 upon the books of the corporation and a transcript of such record 

18 shall be sent by mail to the person whose office is thus made vacant. 

19 The trustees shall cause to be published semi-annually in a news- 

20 paper published in the county in which said corporation is located 

21 the names of the members of the board of investment or other offi- 

22 cers of such corporation charged with the duty of investing its funds. 

23 The first publication thereof shall be within thirty days of the elec- 

24 tion of said officers and the second publication at the expiration of 

25 six months therefrom. 



BANKING HOUSE. TEANSACTION OF BUSINESS. 

1 Section 20. Such corporation shall carry on its usual business Business to be 

2 at its banking house only, and a deposit shall not be received nor pay- tonk^houL 

3 ment on account of deposits be made by such corporation or by a i^' 2 53°'§ i. 

4 person on its account in any other place than at its banking house, ilH' 3i7 § § 1 i9 

5 which shall be in the city or town in which such corporation is estab- 

6 lished ; but its annual meeting and meetings of its trustees may be 

7 held at other Dlaces in such city or town. 

1 Section 21. A savings bank shall not occupy the same room connection be- 

2 with a bank or national banking association, unless such savings anTnatfonaf 8 

3 bank shall have first filed with the board of commissioners of l^f^, §§ 1,2, 

4 savings banks an agreement signed by the president and the cashier 

5 or treasurer of such bank or national banking association, in accord- 

6 ance with a vote duly passed by its board of directors or trustees, 

7 that it and they will permit and facilitate an examination of the 

8 books, accounts, vouchers, cash, securities and other property of 

9 such bank or banking association by the board of commissioners of 

10 savings banks, or by a person duly appointed by it, at such times 

11 and to such extent as may be considered necessary or expedient by 

12 said board to determine the condition of the savings bank. The 

13 expense of such examination shall be fixed by said board of com- 

14 missioners of savings banks and shall be paid by the bank or 

15 national banking association so examined. A duly certified copy of 

16 said vote shall be furnished at the same time with said agreement, 

17 and the agreement shall continue in force as long as such savings 

18 bank occupies the same room with such other bank or national 

19 banking association, or keeps any of its money or securities in the 

20 same vault with such other bank or national banking association. 

1 Section 22. A savings bank shall not transact its business over Business not 

2 the same counter or occupy in common the same safes or vaults with acted over 

3 a bank, national banking association or trust company j but a sav- ltf™^-?"^? 1 "' 

4 ings bank may occupy within such vault a safe or compartment over ^ 9 y- A - G - - 

5 which it has exclusive control, or may transact business over a part 



1070 



SAVINGS BANKS. 



[Chap. 113. 



Committee to 
examine con- 
dition. 
1898, 567, § 4. 



Bond by- 
savings bank. 
1898, 567, § 5. 



of the same counter which is separated by a suitable partition or 6 
lattice work from the part of the counter used exclusively by such 7 
other bank, banking association or trust company. 8 



Section 23. If a savings bank transacts its business within the 
same enclosure with a bank or national banking association a com- 
mittee of not less than three shall be chosen by the trustees of such 
savings bank from their own number, who shall at least once in 
every six months examine the condition of such savings bank at the 
same time that a similar examination is made of the condition of such 
bank or banking association by the directors thereof, or by any 
other person appointed by them. 



Section 24. If a 



savings 



bank transacts its business within 



the same enclosure with a bank or national banking association or 
if such banks have the same president, treasurer or cashier, the 
treasurer, tellers and clerks of the savings bank shall give a bond of 
a company authorized to transact fidelity insurance or corporate 
suretyship in this commonwealth, in a form and for a sum to be 
approved by the board of commissioners of savings banks. 



1 
2 
3 
4 
5 
6 
7 
8 

1 

2 
3 
4 
5 
6 
7 



Amount of 
deposits 
limited. 
1834, 190, § 6. 
R. S. 36, § 77. 
G. S. 57, § 141. 

1874, 393. 

1875, 100. 

1876, 203, § 8. 
P. S. 116, § 19. 
1889, 86; 449, 
§1. 

1894, 317, § 20. 



Investment of 
deposits, etc. 
P. S. 116, § 20. 

— in mort- 
gages. 
1834, 190, § 7. 
R. S. 36, § 78. 
G. S. 57, §§ 142, 
143. 

1876, 203, § 9, 

cl. 1. 

P. S. 116, § 20, 

cl. 1. 

1894, 317, § 21, 

cl. 1. 

[lOp. A. G. 

434.J 

— in public 
funds. 
1834, 190, § 7. 
R. S. 36, § 78. 
G. S. 57, § 142. 
1863, 175, § 1. 

1894, 317, § 21, 
cl. 2. 

1885, HI. 



DEPOSITS, LOANS AND INVESTMENTS. 

Section 25. Such corporation may receive deposits from any 
person until they amount to one thousand dollars ; and may allow 
interest upon such deposits, and upon the interest accumulated 
thereon, until the principal, with the accrued interest, amounts to 
one thousand six hundred dollars ; and thereafter upon no greater 
amount than one thousand six hundred dollars ; but the provisions 
of this section shall not apply to deposits by religious or charitable 
corporations, or to deposits made in the name of a judge of probate 
or by order of any court. 

Section 26. Deposits and the income derived therefrom shall 
be invested only as follows : — 1894, 317, § 21. 134 Mass. 177. 

First, In first mortgages of real estate situated in this common- 
wealth, not to exceed sixty per cent of the valuation of such real 
estate ; but not more than seventy per cent of the whole amount of 
deposits shall be so invested. A loan on mortgage shall not be 
made except upon the report of not less than two members of the 
board of investment, who shall certify, according to their best judg- 
ment, to the value of the premises to be mortgaged and such report 
shall be filed and preserved with the records of the corporation. 

Second, a. In the public funds of the United States, or of any 
of the New England states, or of the state of New York. 

1876, 203, § 9, cl. 2. 1880, 177. 1881, 214, § 2. P. S. 116, § 20, cl. 2. 

b. In the bonds or notes of a county, city or town of this com- 
monwealth. 

In the bonds or notes of an incorporated district in this com- 



monwealth whose net indebtedness does not exceed five per cent of 
the last preceding valuation of the property therein for the assess- 
ment of taxes. 

d. In the bonds or notes of any city of Maine, New Hampshire, 
Vermont, Rhode Island or Connecticut, whose net indebtedness 
does not exceed five per cent of the last preceding valuation of the 21 



1 

2 
3 
4 
5 
6 
7 
8 
9 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 
14 
15 
16 
17 
18 
19 
20 



Chap. 113.] savings banks. 1071 

22 property therein for the assessment of taxes ; or of any county or 

23 town of said states whose net indebtedness does not exceed three per 

24 cent of such valuation. 

25 e. In the notes of a citizen of this commonwealth with a ptedge investment of 

26 of any of the aforesaid securities at no more than the par value dep0Slts - 

27 thereof. 

28 /. In the legally authorized bonds of the states of Pennsylvania, 1882, 231. 

29 Ohio, Indiana, Illinois, Michigan, Wisconsin, Minnesota, Missouri ill?; Hi: 

30 and Iowa, and of the District of Columbia, and in the legally author- i 8 ! 8 ,; 1%. 

31 ized bonds for municipal purposes, and in the refunding bonds issued }ffy 16 *- G 

32 to take up at maturity bonds which have been issued for other than 190 -] 

33 municipal purposes, but on which the interest has been fully paid, 

34 of any city of the aforesaid states and of the state of New York, 

35 which has at the date of such investment more than thirty thousand 

36 inhabitants, as established by the last national or state census, or 

37 city census, certified to by the city clerk or treasurer of said city 

38 and taken in the same manner as a national or state census, preced- 

39 ing such investment, and whose net indebtedness does not exceed 

40 five per cent of the valuation of the taxable property therein, to be 

41 ascertained by the last preceding valuation of property therein for 

42 the assessment of taxes ; and in the note or notes of a citizen of this 

43 commonwealth, with a pledge as collateral of any of the aforesaid 

44 securities, the amount invested in such note or notes not to exceed 

45 in any case eighty per cent of the market value of the securities 

46 pledged. 

47 Third, a. In the first mortgage bonds of a railroad company — m railroad 

48 incorporated in anv of the New England states and whose road is etc. ' 

49 located wholly or in part in the same, whether such corporation is in 1863! 175, §1. 

50 possession of and is operating its own road or has leased it to another ci. 7 !'. 203, § 9 ' 

51 railroad corporation, and has earned and paid regular dividends of p. 8 s'.ii6,§2b, 

52 not less than three per cent per annum on all its issues of capital ^g 176 

53 stock for the two years last preceding such investment. issi', 196. 

J f b 1889,305. 

1894, 317, § 21, cl. 3. 1898, 184, § 1, cl. a, d. [1 Op. A. G. 149.] 

54 b. In the first mortgage bonds of a railroad company incorpo- 1887, 196. 

55 rated in any of the New England states and whose road is located ci. 9 !'. 1S4,§ ' 

56 wholly or in part in the same, guaranteed by a railroad company 

57 described in the preceding paragraph which is in possession of and 

58 is operating its own road. 

59 c. In the bonds or notes of a railroad company incorporated in i887, 196. 

60 this commonwealth and whose road is located wholly or in part 

61 therein, and is unencumbered by mortgage and which has paid a 

62 dividend of not less than five per cent per annum for two years last 

63 preceding such investment. 

64 d. In the bonds and notes of the Fitchburg Railroad Company i||5,348. 

65 issued according to law. 

6Q e. In the bonds and notes of the Old Colony Railroad Company i883, 134. 

67 issued according to law, notwithstanding the mortgages on that part 

68 of its railroad formerly belonging to the Boston, Clinton, Fitchburg 

69 and New Bedford Railroad Company. 

70 /. In the bonds and notes of the Boston and Lowell Railroad 1888 > 53 - 

71 Corporation issued according to law, notwithstanding the mortgages 

72 on those portions of its railroad formerly belonging tc the Salem 

73 and Lowell Railroad Company and the Lowell and Lawrence Rail- 

74 road Company. 



1072 SAVINGS BANKS. [CHAP. 113. 

depolitef ntof 9' * n tne bonds and notes of the Boston and Maine Kailroad 75 

1888, 250, § 2. issued according to law, notwithstanding any mortgages on that part 76 
of its railroad, franchises and property formerly belonging to the 77 
Eastern Railroad Company, the Eastern Railroad in New Hampshire, 78 
or the Portsmouth, Great Falls and Conway Railroad. 79 

1896,178. ] l% j n th e b on( Js and notes of the New York, New Haven and 80 

Hartford Railroad Company issued according to law, notwithstanding 81 
the existence on the twenty-first day of March in the year eighteen 82 
hundred and ninety-six of a mortgage indebtedness not then matured 83 
upon the whole or a part of the road of said company. 84 

1890,298. i j n £h e first mortgage bonds of the Concord and Montreal Rail- 85 

road, although such company may be formed by the union of two 86 
or more companies, only one of which has paid regular dividends for 87 
the two years last preceding such investment on all its issues of 88 
capital stock, and notwithstanding a mortgage indebtedness on that 89 
part of its road formerly belonging to the Boston, Concord and 90 
Montreal Railroad : provided, however, that said bonds shall be 91 
issued in whole or in part to renew and refund said existing mortgage 92 
indebtedness, and that an amount of such bonds equal at the par 93 
value to the amount of such existing mortgage indebtedness shall, by 94 
the terms of the mortgage securing the same, be made applicable ex- 95 
clusively to the payment of such existing mortgage indebtedness and, 96 
for the purpose of securing such payment at the maturity of the same, 97 
shall be deposited with and held by such trust company incorporated 98 
in this commonwealth and doing business in the city of Boston as 99 
may be approved by the board of commissioners of savings banks. 100 

1890,394. j j n fljg bonds of the Maine Central Railroad Company, known 101 

as the Consolidated Mortgage Bonds, notwithstanding the existence 102 
of a mortgage indebtedness not matured upon the whole or a part of 103 
the road of said railroad company : provided, however, that said bonds 104 
be issued in whole or in part to renew and refund said existing first 105 
mortgage indebtedness, and that an amount of such bonds equal at 106 
the par value to the amount of such existing mortgage indebtedness 107 
shall, by the terms of the mortgage securing the same, be made ap- 108 
plicable exclusively to the payment of such existing mortgage indebt- 109 
edness ; and to secure such payment at the maturity of the same, 110 
said bonds shall be deposited with and held by such trust company 111 
incorporated in this commonwealth and doing business in the city 112 
of Boston as may be approved by the board of commissioners of 113 
savings banks. 114 

lis' 213! ^' ^ n t ne note or notes of a citizen of this commonwealth with 115 

a pledge as collateral of any of the aforesaid securities at no more 116 
than the par value thereof. 117 

1887,196. i m j n fa e no t e or no tes of a citizen of this commonwealth with 118 

a pledge as collateral of shares of the capital stock of a railroad 119 
company incorporated in any of the New England states and whose 120 
road is located wholly or in part therein and which is in possession 121 
of and is operating its own road and has earned and paid regular 122 
dividends of not less than five per cent per annum on all its issues 123 
of capital stock for five years last preceding the date of such note 124 
or notes, or a renewal thereof, and at no more than seventy-five per 125 
cent of the market value thereof, such note or notes to be made 126 
payable on demand and to be paid or renewed within one year from 127 
the date thereof. 128 



Chap. 113.] savings banks. 1073 

129 m. In the note or notes of a citizen of this commonwealth with investment of 

QftlDOSltB 

130 a pledge as collateral of shares of the capital stock of the Boston wee, m. 

131 and Lowell Railroad Corporation, of the Boston and Providence 

132 Railroad Company, of the Connecticut River Railroad Company and 

133 of the Old Colony Railroad Company, notwithstanding the road of 

134 each of said companies may be leased to another railroad company ; 

135 but such note or notes shall not in any case exceed seventy-five per 

136 cent of the market value of the securities pledged and shall be pay- 

137 able on demand and be paid or renewed within one year from the 

138 date thereof. 

139 Fourth, a. In the bonds of the New York and New England Rail- New Y°oA S and 

140 road Company issued according to law, and for the payment of the §!T En f land 

141 principal and interest of which first mortgages, made as provided isss, 301, §e. 

142 in chapter three hundred and one of the acts of the year eighteen cift'. 317 ' § 21 ' 

143 hundred and eighty-eight, are held as collateral security under an 

144 indenture of trust duly made and entered into for that purpose : 

145 provided, that the amount of the bonds so issued shall not exceed 

146 the amount of the mortgages so held in trust, and that no one of 

147 said mortgages shall exceed in amount sixty per cent of the value 

148 of the real estate thereby mortgaged ; and no investment in said 

149 bonds shall be made by such corporation except upon the report 

150 of not less than two members of the board of investment, who 

151 shall, according to their best judgment, certify to the value of 

152 the premises covered by each of said mortgages, and such report 

153 shall be filed and preserved with the records of the corporation. 

154 b. In the bonds of the Boston, Revere Beach and Lynn Railroad B. in R b< B d | l 

155 Company, issued according to law. 1897,262. R R- 

156 c. In the legally authorized bonds of the New York Central and NewY°ork SOf 

157 Hudson River Railroad Company, of the Michigan Central Railroad ^^ R^ e r 

158 Company, of the Lake Shore and Michigan Southern Railway Com- Railroad, etc. 

159 pany, of the Illinois Central Railroad Company, of the Pennsylvania 

160 Railroad Company, of the Delaware, Lackawanna and "Western Rail- 

161 road Company, of the Chicago, Burlington and Quincy Railroad 

162 Company, of the Chicago and Northwestern Railway Company, and 

163 of the Delaware and Hudson Canal Company : provided, that all 

164 such bonds shall be secured by a first mortgage of the whole or a 

165 part of the railroad and railroad property actually in the possession 

166 of and operated by such company ; and that each railroad whose 

167 bonds are hereby authorized for investment shall have earned and 

168 paid regular dividends on all its issues of capital stock of not less 

169 than four per cent each fiscal year for the ten years last preceding 

170 such investment, and that such capital stock shall equal or exceed 

171 in amount one-third of the par value of its bonded indebtedness. 

172 d. In the legally authorized bonds of a railroad company in- -in bonds of 

173 corporated under the authority of the states of New York, Pennsyl- railroad's. e 

174 vania, Ohio, Indiana, Illinois, Michigan or Iowa, whose road is 1899 - 269 - 

175 located wholly or in part within the limits of said states and has 

176 earned and paid regular dividends of not less than four per cent 

177 per annum on all its issues of capital stock for the ten years last 

178 preceding such investment: provided, that said bonds shall be 

179 secured by a first mortgage of the whole or a part of the railroad 

180 and railroad property of such company, and be guaranteed, both 

181 principal and interest, by one or more of the companies named in 

182 the preceding paragraph. 



1074 



SAVINGS BANKS. 



[Chap. 113. 



Investment of 
deposits. 
1899, 269. 



— in Boston 
Terminal 
bonds. 
1896, 516, § 4. 
1S99, 215. 



1887, 196. 



— in bank 

stocks. 

1S34, 190, § 7. 

E. S. 36, § 78. 

1855, 294. 

G. S. 57, §§ 142- 

144. 

1863, 175, §§2, 3; 

234. 

1864; 2. 

186S, 227. 

1876, 203, § 9, 

cl. 4. 

1881, 214, § 3. 
P. S. 116, § 20, 
cl. 4. 

1882, 224. 

1883, 202. 
1886, 95. 
1890, 168. 
1894, 317, § 21, 
cl. 5. 

141 Mass. 522. 
151 Mass. 107. 



— in loans to 
depositors. 
1879, 57, § 1. 
P. S. 116, § 20, 

Cl O 

1894,' 317, § 21, 
cl. 6. 

— in personal 
securities. 
1834, 190, § 8. 
R. S. 36, § 79. 
G. S. 57, § 145. 
187b', 203, § 9, 

P.' s! 116, § 20, 

cl. 6. 

1884, 56, 168. 

1886, 69. 

1894, 317, § 21, 

cl. 7. 

134 Mass. 177. 



— in building 
and site. 
1870, 226. 
1876, 203, § 9, 
cl. 6. 

P. S. 116, § 20, 
cl. 7. 



e. In the note or notes of a citizen of this commonwealth, with 183 
a pledge as collateral of any of the securities mentioned in the two 184 
preceding paragraphs at no more than the par value thereof. 185 

f. In the bonds of the Boston Terminal Company authorized 186 
by the provisions of section four of chapter five hundred and six- 187 
teen of the acts of the year eighteen hundred and ninety-six, and in 188 
the note or notes of a citizen of this commonwealth with a pledge as 189 
collateral of the first mortgage bonds of said company at no more 190 
than the par value thereof. 191 

g. Street railway companies are not railroad companies within 192 
the meaning of the third and fourth clauses of this section. 193 

Fifth, In the stock of a bank incorporated in this commonwealth, 194 
or in the stock of a banking association located in the New England 195 
states and incorporated under the authority of the United States, 196 
or in the stock of a trust company incorporated under the laws of 197 
and doing business within this commonwealth, as provided in chap- 198 
ter one hundred and sixteen, or of those trust companies incorpo- 199 
rated as such by special charters granted under the laws of and doing 200 
business within this commonwealth, whose special charters require 201 
them to provide the same security as prescribed in sections twenty- 202 
eight and thirty of said chapter, or in the notes of a citizen of this 203 
commonwealth, with a pledge as collateral of any of the aforesaid 204 
securities at no more than eighty per cent of the market value and 205 
not exceeding the par value thereof; but such corporation shall not 206 
hold, both by way of investment and as security for loans, more 207 
than thirty-five per cent of its deposits in the stock of such banks, 208 
associations or companies, nor in any one such bank, association or 209 
company more than three per cent of its deposits in, nor more 210 
than one hundred thousand dollars nor more than one-quarter of 211 
the capital stock of such bank, association or company. Such cor- 212 
poration may deposit not more than five per cent of its deposits in 213 
any one such bank, association or company, but such deposit shall 214 
not exceed twenty-five per cent of the capital stock and surplus of 215 
such depositary. 216 

Sixth, In loans to a depositor of such corporation upon his 217 
personal note to an amount not exceeding one-half of his deposit; 218 
and the deposit and the book of the depositor shall be held by the 219 
corporation as collateral security for the payment of such loan. 220 

Seventh, If such deposits and income cannot be conveniently 221 
invested in the modes hereinbefore prescribed, not exceeding one- 222 
third part thereof may be invested in bonds or other personal securi- 223 
ties, payable and to be paid at a time, not exceeding one year, with 224 
at least two sureties, if the principal and sureties are all citizens of 225 
this commonwealth and resident therein : provided, that the total lia- 226 
bilities to such corporation of a person, partnership, company or 227 
corporation for money borrowed upon personal security, including 228 
in the liabilities of a partnership or company not incorporated the 229 
liabilities of the several members thereof, shall not exceed five per 230 
cent of such deposits and income. 231 

Eighth, Five per cent of the deposits of such corporation, not 232 
exceeding two hundred thousand dollars, may be invested in the 233 
purchase of a suitable site and the erection or preparation of a suit- 234 
able building for the convenient transaction of its business. 235 



1893, 174. 



1894, 317, § 21, cl. 8. 149 Mass. 1. 151 Mass. 107. [1 Op. A. G. 420.] 



Chap. 113.] savings banks. 1075 

236 Ninth, Such ^corporation may hold real estate acquired by the Real estate 

237 foreclosure of a mortgage owned by it, or by purchase at sales made ffito^ 

238 under the provisions of such mortgage or upon judgments for debts ^76 226 

239 due to it, or in settlements effected to secure such debts. All such p 7 | n|'f fo 

240 real estate shall be sold by the corporation within five years after c1 ' 8 ' 

241 the title thereof is vested in it; but the board of commissioners of 1883)52,248. 

242 savings banks may, upon the petition of the board of investment of mt, 317, § 21, 

243 such corporation, and for cause, grant an additional time for the lsbs.'us. 

244 sale of the same or of the securities mentioned in the followine" 149 Ma88 ' 4 ' 

245 clause. 

246 Tenth, Such corporation may hold stocks, bonds or other securi- fc C ^Tred S m 

247 ties acquired in settlements effected to secure loans or indebtedness, settlement of 

248 but unless the time during which such securities may be held is ex- 1898, us. 

249 tended as provided in the preceding paragraph they shall be sold 

250 within five years after being acquired. A corporation holding such 

251 'securities on the eighth day of March in the year eighteen hundred 

252 and ninety-eight shall not be required to sell the same before the 

253 first day of February in the year nineteen hundred and three. 

254 Eleventh, The provisions of this chapter shall not invalidate or Pledges of 

255 impair the title of a corporation to securities which have been or may collateral to 8 

256 be held by it in pledge or as security for a loan or indebtedness ; li^os™ 1 ^! 

257 and the same shall be held for the purposes for which they were p 7 | ^j § § - 20 

258 pledged. Such corporation shall not be required to change invest- i^- 317 52!* 

259 ments made before the first day of October in the year eighteen ci.'i'o. 

260 hundred and seventy-six. 

1 Section 27. No president, treasurer, member of a committee or no officer, 

2 board of investment or officer of such corporation charged with the toalfof cor- w 

3 duty of investing its funds shall borrow or use any portion thereof, confe tl surety! >e " 

4 be surety for loans to others or, directly or indirectly, be an obligor ^ 3 | 36 ' § § 8 o 

5 for money borrowed of the corporation ; and if such member or offi- g 5 | * 8 -' 

6 cer becomes the owner of real estate upon which a mortgage is held i§72,'293, § 3. 

7 by the corporation, his office shall become vacant at the expiration p. s'. lie, § 21. 

8 of sixty days thereafter unless he has ceased to be the owner thereof 1394; 317) § 22. 

9 or has caused said mortgage to be discharged. Only one of the 

10 persons holding the offices of president, clerk, and treasurer shall 

11 at the same time be a member of the board of investment. 

1 Section 28. Such corporation, or a person acting in its behalf, f^!, 1 not to nks ' 

2 shall not negotiate, take or receive a fee, brokerage, commission, f c e ® i J t e c bl ° n ier - 

3 gift or other consideration for or on account of a loan made by or account 'of a 

4 on behalf of such corporation, other than appears on the face of the 1872,293, §§ 1, 5. 

5 note or contract by which such loan purports to be made ; but the p.'s'. 116, §22. 

6 provisions of this section shall not apply to a reasonable charge for 1894 ' 317> § 23, 

7 services in the examination of titles and preparation of conveyances 

8 to such corporation as security for its loans. Whoever violates a 

9 provision of this section shall be punished by a fine of not less than 

10 one hundred nor more than one thousand dollars. All amounts paid 

11 for services, fees or otherwise to a member of the board of trus- 

12 tees shall be reported in detail at the next regular meeting of the 

13 trustees. 

1 Section 29. All applications to the corporation for loans shall ^ffiSKg,, 

2 be made in writing to the treasurer of the corporation, who shall to be m writing 



1076 



SAVINGS BANKS. 



[Chap. 113. 



and record 

kept. 

1872, 293, § 3. 

1876, 203, § 12. 

P. S. 116, § 23. 

1894, 317, § 24. 



keep a record thereof showing the date, name of applicant, amount 3 
asked for and the security offered, and he shall cause the same to 4 
be presented to the board of investment. 5 



Guaranty fund 
to be created 
and main- 
tained. 
1876, 203, § 13. 
P. S. 116, § 24. 
1894, 317, § 25. 
[1 Op. A. G. 
303, 538.] 



DIVIDENDS AND PAYMENTS. 

Section 30. Such corporation shall at the time of making each 1 

semi-annual dividend reserve as a guaranty fund from the net 2 

profits which have accumulated during the six months last preced- 3 

ing not less than one-eighth nor more than one-fourth of one per 4 

cent of the whole amount of deposits, until such fund amounts to 5 

five per cent of the whole amount of deposits, which fund shall be 6 

thereafter maintained and held to meet losses in its business from 7 

depreciation of its securities, or otherwise. 8 



Manner of 
division of net 
profit, etc., 
among 
depositors. 
1834, 190, § 10. 
R. S. 36, § 81. 
1859, 181, § 1. 
G. S. 57, § 147. 
1876, 203, § 14. 
P. S. 116, § 25. 
1894, 317, § 26. 
1897, 109. 



Section 31. The income or profit of such corporation, after a 1 

deduction of the reasonable expenses incurred in the management 2 

thereof, and the amounts reserved for the guaranty fund, shall be 3 

divided in the following manner among its depositors or their 4 

legal representatives at times fixed by its by-laws : ordinary divi- 5 

dends shall be made every six months, and shall not exceed two 6 

and one-half per cent on all amounts which have been on deposit for 7 

the six months last preceding, or one and one-fourth per cent on 8 

all amounts which have been on deposit for the three months last 9 

preceding. No ordinary dividend shall be declared or paid except 10 

as above provided, nor upon a deposit of less than three months' 11 

standing ; but in computing dividends as aforesaid amounts deposited 12 

on or before the third day of the quarter last preceding or the third 13 

day of the half year last preceding may be considered as having 14 

been on deposit for three and six months, respectively. Such cor- 15 

poration may, by its by-laws, provide that a dividend shall not be 16 

declared or paid on less than three dollars, or on the fractional part 17 

of a dollar. 18 



Dividend not 

to be paid, 

when. 

1876, 203, § 15. 

1880, 150. 

P. S. 116, § 26. 

1894, 317, § 27. 



Section 32. If, at the time provided by the by-laws for making 1 

ordinary dividends, the net profits for the six months last preced- 2 

ing, over and above the amount to be added to the guaranty fund, do 3 

not amount to one and one-half per cent of the deposits, no divi- 4 

dend of the profits shall be declared or paid, except such as shall 5 

be approved in writing by the board of commissioners of savings 6 

banks. 7 



Extra divi- 
dends may be 
paid once in 
every three 
years, when, 
etc 

1876, 203, § 16. 
P. S. 116, § 27. 
1888, 355. 
1894, 317, § 28. 
1896, 231. 



Section 33. Once in three years, at the time provided by the 1 

by-laws for making ordinary dividends, if after such dividend is 2 

made, the net profits accumulated, including the guaranty fund, 3 

amount to eleven per cent of the deposits which have remained in 4 

such corporation for one year last preceding, such net profits in 5 

excess of ten per cent shall be divided among the depositors whose 6 

deposits have remained therein for the year last preceding, in propor- 7 

tion to the amount of dividends which have been declared on their 8 

deposits during the three years last preceding. 9 



Section 34. A dividend shall not be declared until the trustees 1 

2 



Payment of 
dividend to be 

authorized by cause an examination to be made, and find that the amount thereof 

trustees. 



Chap. 113.] savings banks. 1077 

3 has actually accrued ; and a dividend or interest shall not be paid £pf Wfjf 3 - 

4 unless authorized by a vote of the trustees after such examination. is'76,'203, § n." 

P. S. 116, § 28. 1894, 317, § 29. 

1 Section 35. The principal deposits in such corporation may be withdrawal of 

2 withdrawn at such time and in such manner as the by-laws direct, payments to 

3 but the deposits so withdrawn shall be deducted in each case from fssi m § io 

4 the amounts last deposited. Money deposited in the name of a minor ]| 5 f'-f 6 ?-[ ,§ 81 - 

5 may, at the discretion of the trustees or board of investment, be paid ©■ s'. 57,§§ 147, 

6 to such minor or to the person making such deposit ; and the same 1876, 203, § is. 

7 shall be a valid payment. 

P. S. 116, §29. 1894, 317, § 30. 141 Mass. 33. 152 Mass. 49. 

1 Section 36. Such corporation may pay an order, drawn by a payment on 

2 person who has funds on deposit to meet the same, notwithstanding death of ter 

3 the death of the drawer, if presentation is made within thirty days i8 8 ^ w |i ' § 2 

4 after the date of such order ; and at any time if the corporation has 1894 > 317 > § 3 *- 

5 not received actual notice of the death of the drawer. 

1 Section 37. A person indebted to such corporation, whether Depositor may 

2 his indebtedness is secured or not, may, in a proceeding for the ofhif deposit* 

3 collection thereof or for the enforcement of any security therefor, re- ^ ^ n e C corpofa- 

4 coup or set off the amount of a deposit held and owned by him at the J*"™- 261 

5 time of the commencement of such proceeding, and of the interest p. s. ii6, § 30. 

O ' _ 1894 317 § 32 

6 due thereon, except a deposit purchased or acquired from another 128 Mass. 512! 

7 after the commencement of proceedings in equity to restrain the cor- 

8 poration from doing its actual business, and the provisions of section 

9 three of chapter one hundred and seventy-four shall not apply to 

10 such set-off; but a judgment shall not be rendered against such 

11 corporation in favor of the defendant or defendants for any bal- 

12 ance found due from the plaintiff if such corporation is under per- 

13 petual injunction, as provided in section six. 

1 Section 38. If, in an action against such corporation for money interpleader. 

2 on deposit therewith, it appears that the same fund is claimed by if^; ^l; § 19 ' 

3 another party than the plaintiff, whether by the husband or wife of ^" 9 f ; 317/ II3 1 ; 

4 such plaintiff, or otherwise, the court in which such action is pending, 125 Mass. 596. 

5 on the petition of the corporation and, on such notice to the plain- 162 Mass. 457. 

6 tiff and to such claimants as the court considers proper, may order 

7 the proceedings to be amended by making such claimants defend- 

8 ants thereto ; and thereupon the rights and interests of the several 

9 parties in and to said funds shall be heard and determined. Such 

10 deposits may remain with the corporation until final judgment, and 

11 shall be paid in accordance with the order of the court, or may be 

12 paid into court to await final judgment; and, when so paid into 

13 court, the action shall be discontinued as to such corporation and 

14 its liability for such deposit shall cease. The taxable costs of the 

15 corporation in such actions shall be in the discretion of the court, and 

16 may be charged upon the fund. 

1 Section 39. If a deposit is made with such corporation by if deposit 

,-v . n ,1 ,1 i -j v i.u is made In 

2 one person in trust for another, the name and residence ot the person trust, name of 

3 for whom it is made shall be disclosed, and it shall be credited to the ^ disclosed. 

4 depositor as trustee for such person ; and if no other notice of the 1876 « 203 > 5 *>- 



1078 



SAVINGS BANKS. 



[Chap. 113. 



p. s. ii6, § 32. existence and terms of a trust has been given in writing to the cor- 5 

142 Mass. i. ' poration, the deposit, with the interest thereon, may in case of the 6 

iw Mass.' ill' death of the trustee be paid to the person for whom such deposit 7 

was made, or to his legal representative. 8 



Depositor to 
be notified, 
when. 

1871, 262, § 1. 
1876, 203, § 21. 
P. S. 116, § 33. 
1894, 317, § 35. 



Section 40. The treasurer of such corporation, upon making up 1 

each semi-annual dividend, shall send notice by mail to each de- 2 

positor who for the six months last preceding has not been entitled 3 

to a dividend on the whole amount standing to his credit, because the 4 

same exceeds the amount on which interest is allowed, specifying 5 

the amount not entitled to dividend. v 6 



List of 
amounts due 
depositors to 
be published. 
1871, 262, § 2. 
1876, 203, § 22. 
P. S. 116, § 34. 
1894, 317, § 36. 



Section 41. Such corporation shall once in five years publish, in 1 

three successive issues of a newspaper of the county in which it is 2 

established, a list of the amounts standing to the credit of depositors 3 

who have not been entitled to dividends on the whole amount stand- 4 

ing to their credit for the two years last preceding, because the 5 

same exceed the amount on which interest is allowed, with the 6 

names and last known residences of the persons to whose credit such 7 

amounts stand. 8 



Special trust 
fund for parks, 
shade trees, 
etc. 

1875, 174, § 1. 
P. S. 116, § 35. 
1894, 317, § 37. 
153 Mass. 467. 
163 Mass. 509. 



Probate court 
may authorize 
executors to 
deposit such 
funds. 
1S77, 162. 
P. S. 116, § 36. 
1894, 317, § 38. 
139 Mass. 353. 
153 Mass. 467. 



SPECIAL TKUST FUNDS. 

Section 42. Such corporation may receive on deposit to any 1 

amount funds in trust for the purpose of setting out shade trees in 2 

streets and parks and improving the same ; for purchasing land for 3 

parks and improving the same ; for maintaining cemeteries or ceme- 4 

tery lots or for erecting and maintaining drinking fountains in 5 

public places. Such funds shall be placed on interest in such corpo- 6 

ration, and the interest and dividends arising therefrom shall be paid 7 

semi-annually to such city, town or cemetery authorities as may be 8 

designated by the donors of said funds or the will of the person be- 9 

queathing the same, and shall be expended by such authorities within 10 

their respective cities, towns or cemeteries for any or all of said 11 

purposes, as may be specified by such donors or such will. No part 12 

of the principal of such funds shall be withdrawn or expended, and 13 

the same shall be exempt from attachment or levy on execution. 14 

Section 43. A judge of probate, after notice and a hearing, 1 

may authorize an executor, administrator or trustee holding money 2 

or other personal property for any of the purposes mentioned in the 3 

preceding section, to deposit such money, or the avails arising 4 

from such personal property, in any such corporation designated by 5 

the judge, to be held by it in the manner and for the uses and pur- 6 

poses mentioned in said section and upon the trusts upon which the 7 

executor, administrator or trustee held the same ; and upon the de- 8 

posit of such money and its receipt and acceptance by such corpo- 9 

ration the executor, administrator or trustee shall be discharged 10 

from further care and responsibility therefor. 11 



statement of Section 44. The funds held in accordance with the two preced- 

amountof such . , in t t oi-im i n ± 

funds to be { n g sections shall be known as the "Shade lree and Cemetery 
third 6 |ear7etc. Fund ", and the treasurer of the corporation with which they are 
p. 7 !. lit', §37. deposited shall give a receipt therefor to the depositor, and shall 
1894, 3i7, § 39. sen ^ fry ma ji or deliver in January in each third year after the first 



1 
2 
3 

4 
5 



Chap. 113.] savings banks. 1079 

6 deposit to the mayor of a city or the chairman of the selectmen of 

7 a town within the limits of which the interest and dividends of such 

8 fund are to be expended a written statement, signed by such 

9 treasurer, of the amount of funds on deposit for the purposes afore- 

10 said, which shall be recorded in the office of the clerk of such city 

11 or town. 

1 Section 45 . If a corporation holding such fund surrenders its Funds to be 

2 charter or ceases to do business, the supreme judicial court may order when! erre ' 

3 said fund to be transferred and deposited in another such corpora- pJi'.iie.lfs. 

4 tion, upon the same trusts ; and if the laws authorizing such corpo- 1894 > 317, § 40# 

5 rations are repealed, the court may order such fund to be transferred 

6 and deposited in such banking institutions as it may find proper, 

7 to be held upon the trusts aforesaid. 



BOOKS AND RETURNS. 

1 Section 46. The board of commissioners of savings banks may Boots and 

2 prescribe the manner and form of keeping and auditing the books istoJ 1 ^? § i. 

3 and accounts of such corporation. p. s. ii6,§39. i894, m, § 4i. isso, 228, §i. 

1 Section 47. The treasurer of such corporation shall annually, Annual report 

2 within twenty days after the last business day of October, make a is34°i9o!'§ 11. 

3 report to the board of commissioners of savings banks, showing ^f.'fl.'l f. 2 ' 

4 accurately the condition of such corporation at close of business ^• 6 f , ^. § ^ ! ' 

5 on said day. The report shall be in such form as said board shall f| 6 |^ 9 . 2 '. 10 ' 

6 prescribe, and shall specify the following particulars : name of cor- i867,'203i§i.' 

7 poration and number of corporators ; place where located ; amount Res! m&, 68. 

8 of deposits ; amount of each item of other liabilities ; public funds, ilv^m 52 " 

9 including all United States, state, county, city, town and district ^"J; 127.' §40- 

10 bonds, stating each particular kind, the par value, estimated market 1894 « 317 > § * 2 - 

11 value and amount invested in each; loans on public funds, stating 

12 amount on each ; stock in banks and trust companies, stating par 

13 value, estimated market value and amount invested in each; 

14 loans on stock in banks and trust companies, stating amount on 

15 each; railroad bonds, stating par value, estimated market value 

16 and amount invested in each; loans on railroad bonds, stating 

17 amount on each; loans on railroad stock, stating amount on each; 

18 estimated value of real estate, and amount invested therein ; loans 

19 on mortgage of real estate ; loans to counties, cities, towns or 

20 districts ; loans on personal security ; cash on deposit in banks 

21 and trust companies, with the names of such banks and trust 

22 companies and the amount deposited in each ; cash on hand ; 

23 the whole amount of interest or profits received, and the rate 

24 and amount of each semi-annual and extra dividend for the previous 

25 year ; the times for the dividends fixed by the by-laws ; the rates 

26 of interest received on loans ; the total amount of loans bearing each 

27 specified rate of interest; the number of outstanding loans which 

28 are of an amount not exceeding three thousand dollars each, and the 

29 aggregate amount of the same ; the number of open accounts ; also 

30 the number and amount of deposits received ; the number and 

31 amount of withdrawals ; the number of accounts opened and the 

32 number of accounts closed, severally, for the previous year ; and 

33 the annual expenses of the corporation ; all of which shall be certi- 



1080 



SAVINGS BANKS. 



[Chap. 113. 



fied and sworn to by the treasurer. The president and five or more 34 
of the trustees shall certify and make oath that the report is correct 35 
according to their best knowledge and belief. 36 



Additional 
statements 
may be re- 
quired by the 
board. 

1879, 285, 5 2. 

1880, 228, § 2. 
P. S. 116, §41. 
1888, 127. 
1890, 44. 
1894, 317, § 43. 



Blank forms 

for report of 

board. 

1834, 190, § 11. 

R. S. 36, § 83. 

1846,49; 86, §2. 

G. S. 57, § 149. 

1866, 192, § 6. 

1867, 203, § 2. 
1876, 203, § 24. 
1878, 253, § 2. 
P. S. 116, § 42. 
1S94, 317, § 44. 



Section 48. Such report shall, in the year nineteen hundred and 1 

four, and in each fifth year thereafter, also state the number and 2 

amount of deposits of fifty dollars and less, of those exceeding fifty 3 

dollars and not more than one hundred dollars, of those exceeding 4 

one hundred dollars and not more than two hundred dollars, of those 5 

exceeding two hundred dollars and not more than five hundred dol- 6 

lars, of those exceeding five hundred dollars and less than one 7 

thousand dollars, of those of one thousand dollars or more ; and of 8 

those to the credit of women, both adults and minors, guardians, 9 

religious and charitable associations, and in trust, respectively, re- 10 

ceived during the twelve months last preceding. 11 

Section 49. The board of commissioners of savings banks shall 1 

furnish blank forms of reports to such corporation and shall pre- 2 

pare annually from such reports, and communicate to the general 3 

court, on or before the first Wednesday in January, a statement of 4 

the condition of each corporation from which a report has been 5 

received for the preceding year and shall include therein a state- 6 

ment of the affairs of such corporations in the hands of receivers 7 

and shall make such suggestions as they may consider expedient 8 

relative to the general conduct and condition of each corporation 9 

visited by them. 10 

returned to the Section 50. The treasurer of such corporation shall, within 1 

board and pub- fifteen days after the last business day of October in the year 2 

1887, 319. nineteen hundred and two and each fifth year thereafter, return 3 

' to the board a sworn statement of the name, the amount standing 4 

to his credit, the last known residence or post office address, and 5 

the fact of death, if known to him, of each depositor who shall not 6 

have made a deposit therein or withdrawn therefrom any part of his 7 

deposit, or any part of the interest thereon, for more than twenty 8 

years last preceding ; he shall also give notice of these deposits in 9 

one or more newspapers published in or nearest to the city or town 10 

in which such banks are located, at least once a week for three sue- 11 

cessive weeks ; but the provisions of this section shall not apply to 12 

the deposit made by or in the name of a person known to the bank 13 

to be living, or to a deposit which, with the accumulations thereon, 14 

shall be less than twenty-five dollars. The treasurer of a savings 15 

bank who neglects or refuses to make the sworn return required by 16 

this section shall be punished by a fine of one hundred dollars. 17 

Said board shall incorporate in its annual report, or in a supplemen- 18 

tary report, each return made to it as provided in this section. 19 

mak1n y fai r se Section 51. An officer, agent, clerk or servant of a corporation 1 

reports to com- w h refuses or neglects to make a report or statement lawfully 2 

1896,327. ' required by the board of commissioners of savings banks or who 3 

knowingly makes a false report or statement to said board shall be 4 

punished by a fine of not more than one thousand dollars or by im- 5 

prisonment in the house of correction for not more than three years 6 

or by both such fine and imprisonment. 7 



Chap. 113.] savings banks. 1081 

1 Section 52. Every such corporation shall, at least once in each 7 8 89 al 8 s alance - 

2 of its fiscal years, make an accurate trial balance of its depositors' isa*! 317, § 46. 

3 ledger. 

1 Section 53. In the year nineteen hundred and one and in each B ° 8 it!°b de ' 

2 third year thereafter such corporation shall call in the books of de- verified. 

3 posit of their depositors for verification under rules to be prescribed i894| 317, § 47. 

4 by their respective boards of investment, duly approved by the 1896> 193, 

5 board of commissioners of savings banks. 

1 Section 54. Copies from the records, books and accounts of ^ e ° c pi r e | tro J? to 

2 such corporation shall be competent evidence in all cases, equallv be .competent 

3 with the originals thereof, if there is annexed to such copies an affi- i885, 92.. ' 

4 davit taken before a clerk of a court of record or notary public, under 1894 ' 317, § 49 * 

5 the seal of such court or notary public, stating that the affiant is 

6 the officer having charge of the original records, books and accounts, 

7 and that such copy is true and correct and is full, so far as it relates 

8 to the subject matter therein referred to. 



unclaimed deposits. 

1 Section 55. The probate court, court of insolvency or other unclaimed 

2 court, respectively, shall, upon the application of a person interested deposed of. w 

3 or of the attorney general, and after public notice, order and decree 1I94; 317,' § 56. 

4 that all amounts of money heretofore or hereafter deposited with such 

5 corporation, by authority of any of said courts or judge thereof, 

6 and which shall have remained unclaimed for more than five years 

7 from the date of such deposit, with the increase and proceeds 

8 thereof, shall be paid to the treasurer and receiver general, to be 

9 held and used by him according to law, subject for fifteen years 

10 only to be repaid to the person having and establishing a lawful 

11 right thereto, with interest at the rate of three per cent per annum 

12 from the time it is so paid to said treasurer to the time it is paid 

13 over by him to such person. 

1 Section 56. Receivers of insolvent savings banks, at the expira- Receivers to 

2 tion of one year after final settlement ordered by the court, shall unclaimed 

3 report to the court the names and residences, if known, of the 1^1/70. 

4 persons entitled to money or dividends from the estate of such ^" 8 f "tt. 6 * § **" 

5 corporations remaining in their hands uncalled for, with the amount ™®> |g 8 - 

6 due to each. The court shall thereupon order a notice to be given i89i| 317, § 54. 

7 by the receivers and, upon the expiration of one year after the time 

8 of giving such notice, the receivers shall in like manner report the 

9 amounts still uncalled for. Unless cause shall appear for decreeing 

10 otherwise such amounts shall then be ordered to be paid into the 

11 treasury of the commonwealth, and schedules signed by the receivers 

12 shall at the same time be deposited with the treasurer and receiver 

13 general and auditor, setting forth the decree of the court and the 

14 names and residences, so far as known, of the persons or parties 

15 entitled thereto alphabetically arranged, and the amount due to 

16 each. The auditor shall forthwith cause notice of such deposit to 

17 be mailed to such persons and, upon certification by him that a 

18 claimant is entitled to any part of said deposit, it shall be paid in 



1082 CO-OPERATIVE BANKS. [CHAP. 114. 

the same manner as other claims against the commonwealth. Upon 19 

the payment into the treasury of the commonwealth of such un- 20 

claimed money or dividends, the receivers shall deposit with the 21 

board of commissioners of savings banks all books and papers of 22 

such insolvent savings bank, including those relative to their re- 23 

ceivership, which shall be preserved by the board. 24 



CHAPTEE 114. 

OF CO-OPERATIVE BANKS. 



bank P 8 e to beln. Section 1. No person, and no association or corporation, 1 

isJ^I^u 3 exce Pt foreign associations and corporations duly licensed by the 2 

liqfi' 286' §§ 1 '' 4 ' k° ar d °f commissioners of savings banks prior to the fourteenth day 3 

149 Mass. 367. of April in the year eighteen hundred and ninety-six to transact 4 

business in this commonwealth, shall transact the business of accu- 5 

mulating the savings of its members and loaning to them such 6 

accumulations in the manner of a co-operative bank, unless incorpo- 7 

rated in this commonwealth for such purpose. Whoever violates 8 

any provision of this section shall be punished by a fine of not more 9 

than one thousand dollars, and the supreme judicial court or the 10 

superior court shall have jurisdiction in equity to enforce the pro- 11 

visions of this section. 12 

f^*. 011. Section 2. Twenty-five or more persons, who associate them- 1 

igyf 'la k i selves by an agreement in writing with the intention of forming a 2 

ps'-i 1 ?'. §i- corporation for the purpose of accumulating the savings of its 3 

members paid into such corporation in fixed periodical instalments 4 

and loaning to its members the funds so accumulated, shall, with the 5 

consent of the board of commissioners of savings banks, become 6 

a corporation upon complying with the provisions of the following 7 

section. 8 

i87ff224, a § 1 §°2|4. Section 3. The provisions of sections fifteen to twenty, in- 1 

p. s. in, §§2, 4. elusive, of chapter one hundred and ten shall apply to such corpo- 2 

rations, except that the agreement of association shall also state 3 

the limit of capital to be accumulated, that, in the certificate signed 4 

by the secretary of the commonwealth, the limit of capital to be 5 

accumulated as fixed in the agreement of association shall be inserted 6 

instead of the amount of capital, that the certificate required by 7 

section twenty of said chapter to be filed and recorded may be 8 

signed and sworn to by the presiding and financial officers and a 9 

majority at least of the officers who possess the powers of directors, 10 

by whatever name they may be called, and that the fees to be paid 11 

for filing and recording the certificates required by said section 12 

twenty, including the issuing of the certificate of organization, shall 13 

be five dollars. 14 

capital * Section 4. The capital actually paid in shall not exceed one 1 

issue of stock, million dollars, and shall be divided into shares of the ultimate 2 

etc. 

1877, 224, § 5. value of two hundred dollars each. The shares may be issued in 3 



Chap. 114.] co-opeeative banks. 1083 

4 quarterly, half-yearly or yearly series, in such amounts and at such p. s. in, § 5. 

5 times as the members may determine, so long as the capital actually i49Mas8. § i67. 

6 paid in on shares does not exceed one million dollars. 

7 No person shall hold more than twenty-five shares in the capital 

8 of one such corporation. No shares of a prior series shall be issued 

9 after the issue of a new series. 

1 Section 5. Shares may be issued in the name of a - minor, and fomfn r 8ue d 

2 may, in the discretion of the directors, be withdrawn as provided shares held in 

3 in section nine by such minor or by his parent or guardian, and in i887,2ie,§s. 

4 either case payments made on such withdrawals of shares shall 

5 be valid. If shares are held in trust the name and residence of the 

6 beneficiary shall be disclosed and the account shall be kept in the 

7 name of such holder as trustee for such person. If no other notice 

8 of the existence and terms of such trust has been given in writing 

9 to the corporation, such shares may, upon the death of the trustee, 

10 be withdrawn by the person for whom such deposit was made or by 

11 his legal representatives. 

1 Section 6. The number, title, duties and compensation of the By-laws. 

2 officers of the corporation, their terms of office, the time of their SrcTssw, §§e, 

3 election, the qualifications of electors and the time of each periodi- p; s 117 §6 

4 cal meeting of the officers and members shall be determined by the ilof' 123' § 1- 

5 by-laws. The by-laws may also provide for the election of the 

6 secretary and treasurer either by the shareholders or by the board 

7 of directors. No member shall be entitled to more than one vote at 

8 any election. All officers shall continue in office until their suc- 

9 cessors are duly elected. The offices of secretary and treasurer 
10 may be held by the same person. 

1 Section 7. The treasurer shall dispose of and secure the safe Treasurer, 

2 keeping of all money, securities and property of the corporation, Bon! 8 ' 

3 in the manner designated by the by-laws, and the treasurer and p/s.m'.ln. 

4 secretary shall give, subject to the provisions of section fifteen of 1898 > m > § L 

5 chapter one hundred and thirteen, such bond for the faithful per- 

6 formance of their respective duties as the by-laws may require. 

1 Section 8. The officers shall hold stated monthly meetings at ^* w ^f*- 

2 any place in the city or town in which the bank is located. At or 1877, 224, §§ 5, 

3 before each such meeting every member shall pay to the corporation mi, 271, § 1, 

4 as a contribution to its capital one dollar as dues upon each share p.' s'. 117, § 7. 

5 held by him until the share reaches the ultimate value of two 1900>2i9 - 

6 hundred dollars, or is withdrawn, cancelled or forfeited. Payment 

7 of dues on each series shall commence from its issue. 

1 Section 9. A member may withdraw his unpledged shares, withdrawal of 

2 after giving thirty days' notice of his intention so to do, written in fsTV^k §10. 

3 a book held and provided by the corporation for such purpose. ci 8 3. 271,§1, 

4 Upon such withdrawal such shareholder shall be paid the balance ^" 8 f ,* 251 7 ,' § 1 8 .' 

5 remaining after deducting from the amount then standing to the j^y^^ 

6 credit of the shares all fines, a proportionate part of any unadjusted 

7 loss, and such proportion of the profits previously credited to the 

8 shares as the by-laws may provide ; but at no time shall more than 



1084 CO-OPERATIVE BANKS. [CHAP. 114. 

one-half of the funds in the treasury be applicable to the demands 9 

of withdrawing members without the consent of the directors. The 10 

directors may, under rules made by them, retire the unpledged 11 

shares of any series after four years from the date of their issue, by 12 

enforcing the withdrawal thereof; but if there shall remain in any 13 

series, at the expiration of five years after the date of its issue, 14 

more than one hundred unpledged shares, the directors shall annually 15 

retire twenty-five per cent of the excess so that not more than one 16 

hundred unpledged shares shall remain in such series at the expira- 1 7 

tion of nine years from the date of its issue, and when such excess 18 

shall have been retired they may retire such other unpledged shares 19 

as they consider the best interests of the bank require. When such 20 

withdrawal of shares is to be enforced, the shares to be retired shall 21 

be determined by lot, and the holders thereof shall be paid the full 22 

value of their shares, less all fines and a proportionate part of any 23 

unadjusted loss. Shares pledged for share loans shall be treated as 24 

unpledged shares. 25 

mafa«-ed Whe11 Section 10. When each unpledged share of a given series 1 

1881, 27i, § l, reaches the value of two hundred dollars, all payments of dues there- 2 

r.' s'. in, § 9. on shall cease, and the holder thereof shall be paid out of the funds of 3 

1882 251 § 1 • 

1887^ 2i6,' § si the corporation two hundred dollars ; but at no time shall more 4 

1 QQQ OA/7 C 9 si 

' ' s ' than one-half of the funds in the treasury be applicable to the pay- 5 

ment of such matured shares without the consent of the directors. 6 

If any series of shares, pledged or unpledged, reaches maturity 7 

between the dates of adjustment of profits, or if shares are retired 8 

between said dates, the holders of such shares shall, in addition 9 

to the value thereof, receive interest for all full months from the 10 

date of the preceding adjustment to the time of payment, at the 11 

rate at which profits were distributed at said adjustment ; but 12 

before the payment of matured shares all arrears and fines shall be 13 

deducted. 14 

money Mnvest- Section 11. The money accumulated, after due allowance for 1 

18-7*224 6 7 a ^ necessai y expenses and the cancellation of shares, shall, at each 2 

i88i! 27i! § i, stated monthly meeting, be offered to the members according to the 3 

p." s'. in, § io. premiums bid by them for priority of right to a loan, or, if the 4 

1890, 78?' § 2- corporation so provides in its by-laws, the bid for loans shall, instead 5 

1896, 277. £ a p rem i um , be a rate of annual interest payable in monthly instal- 6 

ments upon the amount desired. Such bids shall include the whole 7 

interest to be paid and may be at any rate not less than five per 8 

cent per annum. Each member whose bid is accepted shall be 9 

entitled, upon giving proper security, to receive a loan of two hun- 10 

dred dollars for each unpledged share held by him, or such fractional 11 

part of two hundred dollars as the by-laws may allow. If any 12 

money so offered for sale remains unsold, the directors may invest 13 

it in any of the securities named in the second clause of section 14 

twenty-six of chapter one hundred and thirteen, or may loan it upon 15 

first mortgages of real estate situated in this commonwealth, upon 16 

the conditions imposed by this chapter, or upon the shares of the 17 

bank to an amount not exceeding their value at the adjustment last 18 

preceding the time of the loan ; but in either case the loans shall be 19 

at the highest rate at the last preceding monthly sale of money, and 20 

a note shall be given as required by section fourteen. 21 



Chap. 114.] co-operative banks. 1085 

1 Section 12. Premiums for loans shall consist of a percentage Premiums. 

2 charged on the amount loaned in addition to interest, and shall be p. 7 kii7',§ii. 

3 a consideration paid by the borrower for the present use and 

4 possession of the future or ultimate value of his shares, and shall, 

5 with interest and fines, be received by the corporation as a profit on 

6 the capital invested in the loan, and shall be distributed to the 

7 various shares and series of said capital as hereinafter provided. 

1 Section 13. A borrowing member, for each share borrowed i^f^*- -, 

2 upon, shall, in addition to his dues and monthly premium, pay <a.s'. 

3 monthly interest on his loan at the rate of six per cent per annum 

4 until his shares reach the ultimate value of two hundred dollars 

5 each, or the. loan has been repaid ; and when said ultimate value is 

6 reached, said shares and loan shall be declared cancelled and satis- 

7 fied, and the balance, if any, due upon the shares, shall be paid to 

8 the member. 

1 Section 14. For every loan made a note shall be given, accom- security. 

2 panied by a transfer and pledge of the shares of the borrower, and iHI* m.', § l', 

3 secured by a mortgage of real estate situated in this commonwealth p.'s.n7 §13. 

4 and unencumbered by any mortgage or lien other than such as may \®®> f$ | \- 

5 be held by the bank making the loan. The shares so pledged shall 

6 be held by the corporation as collateral security for the performance 

7 of the conditions of said note and mortgage. Said note and mort- 

8 gage shall recite the number of shares pledged and the amount of 

9 money advanced thereon, and shall be conditioned for the payment 

10 at the stated meetings of the corporation of the monthly dues on 

11 said shares, and the interest and premium upon the loan, with all 

12 fines on payments in arrears, until said shares reach the ultimate 

13 value of two hundred dollars each, or said loan is otherwise can- 

14 celled and discharged ; provided, however, that the directors may 

15 accept the shares as sufficient security for loans to an amount not 

16 exceeding their value at the adjustment last preceding the time of 

17 the loan. 

18 If the borrower neglects to offer security satisfactory to the direct- 

19 ors within the time prescribed by the by-laws, his right to the loan 

20 shall be forfeited, and he shall be charged with one month's interest 

21 and one month's premium at the rate bid by him, with all expenses 

22 incurred ; and the money appropriated for such loan may be re- 

23 loaned at any subsequent meeting. 

1 Section 15. If a member purchases money at a lower rate Effect of new 

2 than that paid by him on an existing loan, secured by a mortgage, is«n|mort" 

3 for the purpose by him declared of reducing the premium or rate f^m, § 2. 

4 of interest upon said loan, a new mortgage shall not be required, but 

5 an agreement in writing for the reduction of said premium or rate 

6 of interest, signed by said borrowing member and the secretary 

7 of the bank, with the written approval of the president, shall be 

8 valid, and shall not impair or affect the existing mortgage; and 

9 thereafter said borrowing member shall make the monthly payments 

10 on said loan in accordance with the terms of said agreement, and 

11 the amount of money previously so purchased by him may be resold 

12 by the bank at the same meeting. The borrower shall before the 

13 sale give written notice to the secretary of his intention to re-buy 



1086 



CO-OPERATIVE BANKS. 



[Chap. 114. 



his money. The provisions of this section shall not exempt the 14 

re-borrower from paying the interest and premium for the current 15 

month on the loan made by him for the substitution of which the 16 

new loan is made. 17 



Payment of 
loans. 

1877, 224, § 11. 
P. S. 117, § 14. 



Section 16. A borrower may repay a loan at any time, upon 1 

application to the corporation, whereupon, on settlement of his 2 

account, he shall be charged with the full amount of the original 3 

loan, with all monthly instalments of interest, premium and fines in 4 

arrears, and shall be given credit for the withdrawing value of his 5 

shares pledged and transferred as security ; and the balance shall 6 

be received by the corporation in full satisfaction of said loan. All 7 

settlements made between stated meetings of the directors shall be 8 

made as of the date of the stated meeting next succeeding such 9 

settlement. A borrower who desires to retain his shares and mem- 10 

bership may repay his loan without claiming credit for said shares, 11 

whereupon said shares shall be transferred to him, free from any 12 

claim on account of said cancelled loan. 13 



Partial pay 
ments of loans 



Section 17. Partial payments of loans on real estate made by 1 

°n jeai estate. a co-operative bank may be received in amounts of fifty dollars or 2 

a multiple thereof; and for each two hundred dollars so repaid 3 

one share of stock shall be released from pledge. 4 



Fines, forfeit- 
ure of shares. 
1877, 224, § 13. 
P. S. 117, § 15. 
1896, 285. 



Section 18. Members who make default in the payment of their 1 

monthly dues, interest and premiums, shall be charged a fine not 2 

exceeding two per cent a month on each dollar in arrears. No fines 3 

shall be charged after the expiration of six months from the first 4 

lapse in any such payment, nor upon a fine in arrears. The shares 5 

of a member who continues in arrears more than six months shall, 6 

at the option of the directors, if the member fails to pay the arrears 7 

within thirty days after notice, be declared forfeited, and the with- 8 

drawing value of the shares at the time of forfeiture shall be ascer- 9 

tained, and, after deducting all fines and other legal charges, the 10 

balance remaining shall be transferred to an account to be designated 11 

the "Forfeited Share Account" to the credit of the defaulting mem- 12 

ber. Said member, if not a borrower, shall be entitled upon giving 13 

thirty days' notice to receive, out of the funds appropriated to the 14 

payment of withdrawals, the balance so transferred without interest 15 

from the time of the transfer, in the order in which such notices are 16 

given. All shares so forfeited or transferred shall cease to partici- 17 

pate in any profits of the corporation accruing after the adjustment 18 

and valuation of shares last preceding said forfeiture. 19 



Recovery of 

loan. 

1877, 224, §§ 8, 

13. 

P. S. 117, § 16. 

1882, 251, § 1. 

1885, 121, § 4. 



Section 19. If a borrowing member is in arrears for dues, in- 1 

terest, premium or fines for more than six months, the directors 2 

may, after one month's notice, declare the shares forfeited if the 3 

arrears then remain unpaid. The account of such borrowing mem- 4 

ber shall then be debited with the arrears of interest, premium and 5 

fines to date of forfeiture, and the shares shall be credited upon the 6 

loan at their withdrawing value. The balance of the account may 7 

and after six months shall be enforced against the security, and be 8 

recovered as secured debts are recovered at law. 9 



Chap. 114.] co-operative banks. 1087 

1 Section 20. No member whose shares are withdrawn, forfeited F J neson .^ 

. -i-i-ii-ii i-ir> snares witn- 

2 or retired, shall be charged with fanes upon such shares in excess of drawn, etc. 

3 the profits distributed thereto, and if no profits shall have been dis- 

4 tributed to such shares no fines shall be charged thereon. The 

5 provisions of this section shall not prevent a borrowing member 

6 being charged with fines according to law upon interest and pre- 

7 miums in arrears. 

1 Section 21. No co-operative bank, nor any person acting in its Bank or 

2 behalf, shall take or receive a fee, brokerage, commission, gift or receive certain 

3 other consideration for or on account of a loan made by or on behalf i897,'i6i. 

4 of such corporation, other than appears on the face of the note or 

5 contract by which such loan purports to be made ; but the provi- 

6 sions of this section shall not apply to a reasonable charge for 

7 services in the examination of property and titles and preparation 

8 and recording of conveyances to such corporation as security for 

9 its loans. Whoever violates a provision of this section shall be 

10 punished by a fine of not less than one hundred nor more than one 

11 thousand dollars. 

1 Section 22. The general accounts of every such corporation Books of 

* Account 

2 shall be kept by double entry. AH money received by the corpo- 1877, 224', § 14. 

3 ration from each member shall be receipted for by persons desig- 173 Mass. 54. ' 

4 nated by the directors, in a pass book provided by the corporation 

5 for the use of and to be held by the member. Said pass book 

6 shall be plainly marked with the name and residence of the holder 

7 thereof, the number of shares held by him and the number or des- 

8 ignation of the series or issue to which said shares, respectively, be- 

9 long, and the date of the issue of such series. All money so 

10 received shall be originally entered by the proper officer in a book 

11 to be called the "cash book", to be provided by the corporation for 

12 the purpose, and the entries therein shall show the name of the payer, 

13 the number of shares, the number or designation of the series or 

14 issues of the particular share or shares so entered, with the amount 

15 of dues, interest, premiums and fines paid thereon. Each payment 

16 shall be classified and entered in a column devoted to its kind. Said 

17 cash book shall be closed after the termination of each stated meet- 

18 ing, and shall be an exhibit of the receipts of all money paid at said 

19 meeting. All payments made by the corporation shall be by order, 

20 check or draft upon the treasurer, signed by the president and 

21 secretary and indorsed by the persons in whose favor the same are 

22 drawn. The name of the payee, the amount paid and the purpose, 

23 object or thing for which the payment is made, with its date, shall 

24 be entered on the margin of said order, check or draft. 



1 Section 23. Profits and losses may be distributed annually, Duwtmtfon of 

2 semi-annually or quarterly to the shares then existing, but shall j°^es.^ 

3 be distributed at least once in each year, and when a new series of i88i!a7i!§i,' 

4 shares is to be issued. Profits and losses shall be distributed to the p.' s'. 117, § is. 

5 various shares existing at the time of such distribution, in propor- 

6 tion to their value at that time, and shall be computed upon the 

7 basis of a single share fully paid to the date of distribution. Losses 

8 shall be apportioned immediately after their occurrence. 



1088 



CO-OPERATIVE BANKS. 



[Chap. 114. 



Guaranty 

fund. 

1885, 121, § 2. 



Section 24. At each distribution of profits, the directors shall 1 

reserve as a guaranty fund not less than one nor more than five per 2 

cent of the net profits accrued since the last preceding adjustment, 3 

until such fund amounts to five per cent of the dues capital, which 4 

fund shall thereafter be maintained and held available to meet losses 5 

in the business of the corporation including depreciation of its 6 

securities. 7 



account. Section 25. A corporation which carries on its books as assets 1 

1900,273. an j unpaid interest, premiums or fines shall, at each distribution 2 

of profits, transfer at least five per cent of such items to the credit 3 

of its surplus account until such account amounts to at least 4 

twenty-five per cent of the total of all such items existing at the 5 

time of such distribution. If the amount in said surplus account 6 

falls below said twenty-five per cent it shall be replenished by 7 

transfers as herein provided until it reaches said amount. 8 

mf/bu^and Section 26. Such corporation may purchase at public or private 1 

1877 r 224 U7 te " sa l e rea l estate upon which it may have a mortgage, judgment, lien 2 

p. s. in, § 19. or other encumbrance, or in which it may have an interest, and may 3 

i9oo! 2u. ' sell, convey or lease the real estate acquired by it and, on the sale 4 

ioi.f' ' ' thereof, may take a mortgage in common form thereon to secure the 5 

payment of the whole or part of the purchase price. All real estate 6 

shall be sold within five years from the acquisition of the title 7 

thereto ; but the board of commissioners of savings banks may, upon 8 

the petition of the security committee of such corporation and for 9 

cause, grant an additional time for the sale of the same. 10 



Place of busi- 
ness. 
1900, 249. 



Powers of 
savings bank 
commission- 
el's 

1879, 129. 
P. S. 117, § 20. 



Foreign banks 
not to do busi- 
ness, when. 

1889, 452. § 1. 

1890, 310, § 2. 

1891, 403. 



Section 27. A co-operative bank, except as provided in section 1 

eight, shall carry on its usual business at its office only, which shall 2 

be in the city or town named in its agreement of association. It 3 

shall not maintain a sign or advertise to transact business in any 4 

other place ; but the secretary or other person authorized to re- 5 

ceive money may receive dues, interest, premiums and fines upon 6 

such days and in such other places as its board of directors may 7 

authorize, subject to the approval of the board of commissioners of 8 

savings banks. 9 

Section 28. The board of commissioners of savings banks shall 1 

perform the same duties relative to every such corporation, and shall 2 

have the same powers, as are required of or given to them relative 3 

to savings banks, and shall annually make report to the general court 4 

of such facts and statements relative to such corporations and in 5 

such form as they consider the public interest requires. Every 6 

officer of such corporation shall answer truly all inquiries made, 7 

and shall make all returns required by the commissioners. 8 

Section 29. If, in the opinion of the board of commissioners 1 

of savings banks, any foreign association or corporation authorized 2 

to carry on the business of a co-operative bank in this common- 3 

wealth is transacting such business in a manner hazardous to the 4 

public, or its condition is such as to render further proceedings by 5 

it hazardous to the public, said board shall revoke or suspend the 6 

authority given to such association or corporation and, if it is not 7 



Chap. 115.] banks and banking. - 1089 

8 authorized to carry on business in this commonwealth, said board 

9 shall notify it to cease the transaction of such business. The pro- 

10 visions of this chapter shall not prevent a foreign co-operative bank 

11 from loaning money upon mortgages of real estate located within 

12 this commonwealth. 

1 Section 30. Every co-operative bank shall annually, within Annual 

2 thirty days after the last business day of October, make to the board cooperative 

3 of commissioners of savings banks in such form as may be pre- is^im, § 2. 

4 scribed by it, a return, signed and sworn to by the secretary and 1895 > m - 

5 treasurer of the corporation, showing accurately the condition 

6 thereof at close of business on said day. The president and five 

7 or more of the directors shall certify and make oath that the report 

8 is correct according to their best knowledge and belief. Such re- 

9 turns shall include all amounts received and disbursed up to close 

10 of business on said day, except that amounts received for dues, 

11 interest, premiums and fines on account of the next monthly meet- 

12 ing may be omitted. If a report is defective or appears to be 

13 erroneous, the board shall notify the bank to amend the same within 

14 fifteen days. A co-operative bank which neglects to make the 

15 return required by the provisions of this section on or before the 

16 time named therein, or to amend such report within fifteen days, 

17 if notified by the board so to do, shall forfeit five dollars for each 

18 day during which such neglect continues. 



CHAPTER 115. 

OF BANKS AND BANKING. 

Sections 1-8. — Organization. 

Sections 9-16. — Meetings . 

Sections 17-26. — Directors . 

Sections 27-29 . — Cashier. 

Sections 30-49. — Course of Business. 

Section 50. — Reserve. 

Sections 51-54. — Loans and Discounts. 

Sections 55-59. — Loans to the Commonwealth. 

Sections 60-79 . — Circulating Notes . 

Sections 80-87. — Liability of Stockholders. 

Sections 88,89. — Weights . 

Sections 90-94. — Taking Land. 

Sections 95-98. — Sale of Shares. 

Sections 99-107 . — Returns. 

Sections 108-114. — Supervision. 

Sections 115-118. — Surrender of Franchise. 

ORGANIZATION. 



1 Section 1. Ten or more persons may form a corporation for the Formation. 

2 purpose of carrying on the business of banking, on the terms and general com 

3 conditions prescribed in this chapter. The general court may alter O. W!. 

4 or repeal any of the provisions of this chapter or of any statute ]^! 2 ' 2 267, §§ 1 

5 governing such corporations, and may by special act annul or dis- 1! &2, 236, § 1. 



1090 



BANKS AND BANKING. 



[Chap. 115. 



g. s. 57, §§ 13, solve any such corporation ; but its dissolution shall not impair any 6 

p. s. 118, §1. remedy given against the same, its stockholders, or officers, for a 7 

liability previously incurred. 8 

howpaid *' Section 2 . The capital stock of each bank shall not be less than 1 

G 5 S57 7 'iiii 2 ' one nun( lred thousand nor more than one million dollars, in shares 2 

p.' s.' us, § 2. ' transferable only at the banking house and on the books of the 3 

bank. The stock shall be paid in gold or silver money, one-half 4 

before the bank goes into operation, and the remainder within one 5 

year thereafter ; subject to which provisions it shall be paid in such 6 

instalments and at such times as the stockholders direct. 7 



Bank not to go 
into operation, 
until, etc. 
1828, 96, § 3. 
B. S. 36, § 4. 
1851, 267, § 2. 
1859, 267. 
G. S. 57, § 16. 
P. S. 118, § 3. 



Section 3. No bank shall go into operation until one-half of its 1 

capital stock has been so paid in gold and silver money, and is in 2 

its vaults, and until the money has been examined by three com- 3 

missioners appointed by the governor. Such commissioners shall, 4 

at the expense of the bank, examine and count the money actually 5 

in the vaults, and ascertain by the oaths of a majority of the directors 6 

that such money has been paid in by the stockholders toward pay- 7 

ment of their respective shares, and not for any other purpose, and 8 

that it is intended that the same shall remain as part of said capital ; 9 

and shall return a certificate thereof to the governor. 10 



Certificate of 
organization. 
1828, 96, § 2. 
B. S. 36, § 2. 

G. S. 57, §§ 13, 

112. 

P. S. 118, § 4. 



Section 4. Before a bank commences business, the president 1 

and directors shall under their hands and seals make a certificate, 2 

which shall specify, — i85i„267, §3. 3 

First, The corporate name, which shall be different from that of 4 

any bank previously organized or incorporated in this commonwealth, 5 

and shall be in the following form : The President, Directors, and 6 

Company of the Bank (the name of the bank) . 7 

Second, The name of the city or town in which it is to be located. 8 

Third, The amount and number of shares of its capital stock. 9 

Fourth, The name, place of residence, and number of shares of 10 

each stockholder. 11 

Fifth, The time when it is to go into operation. 12 

The certificate shall be acknowledged before a justice of the peace 13 

and recorded in the registry of deeds of the county or district in 14 

which the bank is to be located, and a copy thereof shall be filed 15 

in the office of the secretary of the commonwealth. Copies of 16 

such certificate attested by the register or secretary shall be ad- 17 

mitted as sufficient evidence in all cases. 18 



IndioinsTo Section 5. No part of the capital stock of a bank shall be sold 1 

stockholders, or transferred until the whole amount thereof is paid in, and no 2 

r."s. 36, §§'5, 7. loan shall be made to a stockholder until the full amount of his 3 

is. ' ' shares is paid in. p. s. us, §5. 4 

holding Section 6. No person shall directly or indirectly hold or own 1 

i 83 ?,' 5 | f \- more than one-half of the capital stock of a bank, exclusive of 2 

g. s. 57, §21. stock which he holds as collateral security. p. s. us, §6. o 



weSth°may Section 7. In addition to the capital stock to which a bank is 1 

il-28 96° 5 k i8 en titled, the commonwealth may subscribe thereto to an amount 2 
b. s'. 36, § 42. not exceeding fifty per cent of its authorized capital, when pro- 3 



Chap. 115.] banks and banking. 1091 

4 vision is made therefor by law ; and the commonwealth, from the g. s. 57, § 22. 

5 time of making any payment towards such capital stock, shall be p ' s ' 118 ' § 7< 

6 entitled to its proportionate share of the profits and dividends. 

1 Section 8. A bank may by a vote of three-fourths of its stock- increase of 

. . -ii • i • !-,.. capital stock. 

2 holders increase its capital stock, within the limits prescribed by 18 36, 263. 

3 section two, upon proceedings similar to those prescribed in section g. s'. 57? §§ 20, 

4 four, and such increased capital shall be paid in gold and silver p. s. us, § 8. 

5 money in such instalments, not exceeding four, as the directors 

6 determine ; and each instalment shall be a part of the capital of the 

7 bank as soon as it is so paid in and a certificate thereof forwarded 
S to the secretary of the commonwealth. 



MEETINGS. 

1 Section 9. Written notices of the time and place of each meet- Notice of 

2 ing of the stockholders of a bank, properly directed to each stock- SII, 96? l'§ 8, 10. 

3 holder, shall be mailed by the cashier ten days at least before the as". 

4 meeting ; and the directors shall give public notice of all meetings g 5 s.57,'§ § 3 6 2. 

5 fourteen days previous thereto in a newspaper, if any, published in Pl St 118 ' § 9- 

6 the county, otherwise in a newspaper published in Boston. 

1 Section 10. A stockholder may vote according to the number votes of 

2 of his shares, in the following proportion : for one share one vote, proxies! der8 ' 

3 and for every two additional shares one vote more ; but no stock- b. 2 1'.?6, § § 23. 

4 holder shall have more than ten votes. Absent stockholders may jf^'^ §1 

5 vote by proxy, but no salaried officer of the bank shall vote as p - |'-iJi § c 3 fA 

6 proxy. No officer shall as proxy cast more than ten votes, and no 

7 person shall as proxy cast more than fifty votes. 

1 Section 11. Each bank shall at least once in every six months List of stock- 

2 prepare a list of its stockholders, with the amount of stock held Eeco^d'of 

3 by each ; and shall provide a book in which all proxies filed under Penalty. 

4 the following section shall be forthwith entered, with the date of g 5 !'.!?'!!!.' 7 ' 

5 execution, acknowledgment and filing of the same, and the names p. s. ns, §11. 

6 of the stockholder and proxy or attorney named therein, and such 

7 list, book and proxies filed shall at all times be open to the inspec- 

8 tion of every stockholder. A bank failing to comply with the 

9 provisions of this section shall for each offence forfeit not more than 
10 five hundred dollars. 

1 Section 12. Proxies and letters appointing an attorney or proxy Proxies, etc., 

2 to act at a meeting of the stockholders of a bank shall have the date ti°o r ™and ecu " 

3 of execution and the name of the proxy or attorney fully written il^f 2 °d', § 2. 

4 in ink, shall be attested by at least one witness and acknowledged £• §; fj^ii 

5 before a justice of the peace who is not an officer or director of the 

6 bank, shall bear the date of their acknowledgment and shall, within 

7 ten days from the date of acknowledgment and three at least before 

8 the meeting referred to therein, be filed with the cashier or book- 

9 keeper of the bank. 



1 Section 13. Proxies shall be valid for three months only from -whenvaiid. 

2 their date, and only for the meeting named therein and adjourn- g.s'.57,'§3o. 

3 ments thereof; but proxies for stockholders who are citizens of this P - S118 >§ 13 - 



1092 



BANKS AND BANKING. 



[Chap. 115. 



commonwealth and absent therefrom shall be valid, if three days 4 

at least before the meeting at which the same are to be used the 5 

attorney named therein files his affidavit that his principal has not 6 

since the date of the proxy been within this commonwealth. 7 



Proxies, list of, 
etc., to be read 
at meeting. 
1857, 243, § 5. 
G. S. 57, § 37. 
P. S. 118, § 14. 



Section 14. Within three days before any meeting of stock- 1 

holders, the directors shall prepare a list of the proxies in force 2 

therefor, with the names of the stockholders and their respective 3 

attorneys or proxies ; which list shall be read at the meeting before 4 

proceeding to other business. 5 



— not to be 
received, etc., 
by salaried 
officers. 
Penalty. 
1857, 243, § 1. 
G. S. 57, § 38. 
1866, 192, § 8. 
P. S. 118, § 15. 



Section 15. A salaried officer of a bank asking for, receiving 1 

or being the medium of transmission of a proxy in a bank of which 2 

he is an officer, except for the purpose of causing the same to be 3 

recorded as provided in section eleven, shall in addition to the 4 

penalty provided in the following section be disqualified from being 5 

an officer in such bank; and, upon notice and satisfactory proof of 6 

the same, the directors of the bank or the commissioners of savings 7 

banks shall forthwith remove him. 8 



officers^ 011 Section 16. A cashier violating a provision of section nine, 1 

gPs 2 K'$ik an( ^ an °fl* cer °f a bank violating a provision of the four preceding 2 

p." s.' us, § 16. sections, shall for each offence forfeit not more than five hundred 3 

dollars. 4 



directors. 



Section 17. No bank shall have less than seven nor more than 
twelve directors, the number to be determined by the by-laws, and 



Directors, 
number of. 
1828, 96, § 7. 

g. s. bi] § 4o! every bank having a capital of five hundred thousand dollars or 

I860, 209, §§1,8; J , ,, , , & , K ,. 

214; 218. more shall have at least nine directors. p. s. us, §17. 2 Met. 163. 



1 
2 

a 
4 



— qualifica- 
tions of. 

1828, 96, § 7. 

R. S. 36, §§ 17, 

18. 

1838, 196, § 6. 

1853, 401. 

G. S. 57, §§ 41, 

42. 

1860, 209, § 1. 

P. S. 118, § 18. 



Section 18. No person shall be a director of a bank unless he 1 

is a stockholder holding at least five shares of unpledged stock 2 

therein and a citizen of and resident in this commonwealth, nor & 

shall a person be a director in two banks at the same time. A 4 

majority of the directors of every bank shall reside or have their 5 

places of business within the county where the bank is established, 6 

or within ten miles of the bank. 7 



— choice of. 
1828, 96, § 8. 
R. S. 36, § 22. 
1838, 196, § 1. 
1843, 93, § 10. 
1848, 121, § 1. 
G. S. 57, § 43. 
P. S. 118, § 19. 



Section 19. The directors shall be chosen annually by ballot, 
at a meeting of the stockholders on a day in October designated in 
the by-laws of the bank if there is but one bank in a city or town, 
otherwise on successive days, beginning on the first Monday of 
October in the order of the bank abstract for the year last preced- 
ing, or, in case of omissions in said abstract, in the order of the 
dates of the organizations of the banks so omitted, on days next 
succeeding the meeting of the bank in the same city or town last 
named in said abstract ; and said meeting shall be held at such hour 
and place within the city or town as the directors shall appoint. 



1 
2 
3 
4 
5 
6 
7 
8 
9 
10 



colrt n may Section 20. In addition to the directors to be chosen by the 1 

i828°96%i9 stockholders, the general court may from time to time appoint a 2 
r. s. 36, § 43. number of directors in such proportion to the whole number as the & 



Chap. 115.] banks and banking. 1093 

4 sums paid by the commonwealth toward the stock of the bank bear g. s. 57, § 44. 

5 to the whole amount of the stock actually paid in. p. s. us, §20. 

1 Section 21. Directors chosen by the stockholders may be re- Directors 

2 moved at a special meeting of the stockholders, the notification of removed. 

3 which states that a change in the board of directors is contemplated ; r 2 |. H, § 24. 

4 and vacancies in the board may be filled at a special meeting. Jf 3 ! 5 9 7 6 ' § § 4 | 

P.' S." 118, § 2i. 

1 Section 22. A majority of the directors shall always be neces — quorum of. 

2 sary to constitute a quorum for doing business. r 2 s'.36, § § 21. 

G. S. 57, § 46. P. S. 118, § 22. 

1 Section 23. The directors of every bank shall cause a book to —to record 

2 be kept, in which shall be entered all notes and bills offered them offereofior 

3 for discount, specifying such as are discounted ; they shall also w$?m,'§9!' 

4 keep a record of the names and proceedings of all the directors i^f; If^f f; 8 " 

5 present at any meeting for discounts or other official business ; and p' §' j^ § < 4 ™ 

6 a bank the directors of which fail to comply with the provisions of 

7 this section shall for each such neglect forfeit five hundred dollars. 



^»* 



1 Section 24. They may call special meetings of the stockholders special 

2 as often as the interest of the bank requires, g. s. 57, §48. p. s.ns, §24. ^ff.^fl's. 

R. S. 36, § 25. 

1 Section 25. They shall choose one of their own number to act f^l 8 ^ 611 /? 

2 as president, and may allow him such compensation as they think g- 1- 1<>> 1 20. 

3 reasonable. 6 Alien, 207. p.' s.' ii8,"§ 25. 

1 Section 26. They shall appoint a cashier, and may appoint ^g hi ^ r ' § e g c - 

2 clerks and other officers for conducting the business of the bank; 5-§'-§S*f 1£- 

3 all of whom may be removed by the directors. p.' s.' 118, § 26. 

cashier. 

1 Section 27. The cashier before entering on the duties of his cashier to give 

2 office shall give a bond in the sum of not less than twenty thousand i828, 96, § 10. 

3 dollars, with two or more sureties to the satisfaction of the directors, i83s,'i96,§3.' 

4 conditioned for the faithful performance of his duties. p.' I.' ii8, § § 5 27. 

3 Pick. 335. 2 Met. 522. 5 Allen, 413. 12 Allen, 243. 

4 Pick. 314. 16 Gray, 473. 8 Allen, 371. 

1 Section 28. He shall, upon application in writing of the pro — to can 

2 prietors of one-fifth of the capital stock, call special meetings of fP^ai meet. 

3 the stockholders. r. s. 36, § 28. g. s. 57, § 52. p. s. ns, § 28. Jf£jj; f|; § 10 

1 Section 29. He shall not be a director of the bank of which "^cto^ete. 

2 he is cashier, nor shall he or an officer under him hire money of JgSjaJrffla 

3 such bank. A bank violating the provisions of this section shall unjoin! 

4 for each offence forfeit five hundred dollars. p. s. ns, §29. 

COURSE OF BUSINESS. 

1 Section 30. A bank shall carry on, at its banking house only, Business. 

2 the usual business of banking, and no loan or discount shall be Hi; m', |§ 2, 4, 

3 made, nor shall a bill or note be issued by such bank or by any I. 1 ! - . 8 e, §§ 8, 

4 person on its account, in any other place than at its banking house ; *•**• 267| s 5 

5 and such banking house shall be in the city or town in which the j^j^jjj*"* 



1094 



BANKS AND BANKING. 



[Chap. 115. 



P. S. 118, § 30. 
10 Mass. 284. 



bank is established. It may receive deposits, and may loan and 6 

negotiate its moneys and effects by discounting on banking princi- 7 

pies upon such, security as the stockholders consider expedient ; and 8 

dividends of the profits may be made by the directors every six 9 

months. If after receiving circulating notes as hereinafter provided 10 

it neglects or omits to carry on such business, such neglect or 11 

omission shall work a forfeiture of its privilege, and it may be pro- 12 

ceeded against as provided in section one hundred and eleven. 13 



Section 31. 



Limit of loans 
on its own 

i828, k 96, § 3. loans made on a pledge of its own stock, more than one-half of its 
r. s. 36, § 6. capital actually paid in . g. s. 57, § 23. p. s. lis, § 31. 

Banks not to 
hold their own 



No bank shall have owing to it at one time, on 1 

2 
3 



Section 32. A bank purchasing or holding its own stock except 1 

stock, except, as security for debts, or neglecting to sell all stock so received as 2 

security within six months after it has become the property of the 3 

bank, shall for each offence forfeit five hundred dollars. 4 



1838, 196, § 7. 
1851, 339, § 1 



Limit of debts. 
1828, 96, § 5. 
1834, 203, § 2. 
R. S. 36, § 9. 
G. S. 57, § 25. 
P. S. 118, § 33. 



Preceding 

section, how 

construed. 

1834, 203, § 2. 

R. S. 36, § 10. 

1854, 7. 

G. S. 57, § 26. 

1861, 213. 

P. S. 118, § 34. 



G. S. 57, § 24. 



P. S. 118, § 32. 



Section 33. The debts of a bank shall not at any time exceed 
twice the amount of its capital stock actually paid in, exclusive of 
sums due on account of deposits not bearing interest ; nor shall there 
at any time be due to a bank more than double the amount of its 
capital stock actually paid in. 

Section 34. Debts due from one bank to another, including 
bills of the bank so indebted and loans directly made by a bank to 
the commonwealth or to the United States, and notes or scrip of 
the commonwealth or United States held by a bank and directly 
purchased by it from the commonwealth or the United States, shall 
not be debts due within the meaning of the preceding section. 



1 

2 
3 
4 
5 

1 
2 

3 

4 
5 
6 



Liability of 
directors, etc. 
1828, 96, § 5. 
R. S. 36, § 11. 
G. S. 57, § 27. 
P. S. 118, § 35. 



Absent, etc., 
directors, how 
exonerated. 
1828, 96, § 5. 
R. S. 36, § 12. 
1838, 196, § 5. 
G. S. 57, § 28. 



Section 35. If a bank becomes indebted beyond the amount 1 

allowed by the provisions of the two preceding sections, the directors 2 

under whose administration it happens shall be personally liable for 3 

the excess ; and an action of contract may in such case be brought 4 

against them or any of them, their or any of their heirs, executors 5 

or administrators, by any creditor of the bank, or such creditor may 6 

have a remedy in equity. 7 

Section 36. Directors dissenting or absent when such excess 1 

of debts is authorized or contracted may exonerate themselves from 2 

liability by forthwith giving notice of the fact and of their absence 3 

or dissent to the board of commissioners of savings banks. 4 

1866, 192, § 8. P. S. US, § 36. 



Section 37. The provisions of the two preceding sections shall 1 



Corporations 
to remain 

im%, §5. no ^ exem pt a bank, or its lands, goods or chattels from liability for 2 

R. S.36, §13. SUCh excess. G. S.57, §29. P. S. 118, §37. 3 



Banks shall 
not trade, etc. 
1828, 96, § 6. 
R. S. 36, § 14. 
G. S. 57, § 30. 
P. S. 118, § 38. 
7 Mass. 433. 



Section 38. No bank shall use any of its moneys, goods, 1 

chattels or effects in trade or commerce ; but a bank may sell 2 

property held by it in pledge ; and if the proceeds of such sale are 3 

more than sufficient to repay the sum loaned on such pledge, with 4 

interest and expenses, the surplus shall upon request be paid over 5 



Chap. 115.] banks and banking. 1095 

6 by the bank to the person who conveyed the property in pledge or 

7 to his assigns. 

1 Section 39. A bank may hold real estate requisite for the con- Banks may 

2 venient transaction of its business ; but such estate shall not, unless reaf estate? 

3 by virtue of special authority for that purpose, exceed twelve per pf | f 6 ' \% 

4 cent of the amount of its capital stock, exclusive of what the bank S-f'Sj' 5 . 81 - 

5 may hold on mortgage, receive on execution or take as security for 

6 or in payment of debts. 

1 Section 40. No bank shall make or issue a note, bill, check, —not to issue 

2 draft, acceptance, certificate or contract for the payment of money etc. interest 

3 at a future day certain or with interest, except for money borrowed lSs.^fl!* 

4 of the commonwealth or of a domestic institution for savings or aft. 3<f,'§ § 57. 

5 money deposited by an assignee as provided in section sixty-two of J^f fj § 63 

6 chapter one hundred and sixty-three ; and except also that debts ^ 2 |i k\li 4 ^ 

7 due to one bank from another, including; bills of the bank indebted, w Gray, 537. 

4: A 1 I p.ti 1 

8 may draw interest ; and banks may contract with cities and towns 

9 in this commonwealth for the payment or receipt of interest upon 

10 an account current of money deposited with and drawn from them 

11 by said cities and towns. 

1 Section 41. A bank which receives in payment or upon deposit — shall stamp, 

2 or for redemption from another bank or from an individual a counter- feitW worth. 

3 feit or uncurrent or worthless bank bill, or a bank bill which has i853,378,'§§i,'2. 

4 been altered from its original denomination, or paper not a bank bill dfk ot 1 ,'! ei.' 4, 

5 but made in the similitude thereof, or paper purporting to be the p ' s " 118 ' § 41- 

6 bill of a bank which never existed, shall write or stamp upon such 

7 counterfeit bills the word " Counterfeit", upon such altered bills 

8 the word ' 'Altered ", and upon such other bills and papers the word 

9 " Worthless" ; adding thereto the name of the bank and the initials 
10 of the officer by whom the writing or stamp is made. 

1 Section 42. A bank neglecting or refusing to write upon or penalty for 

2 stamp any bill or bills, as prescribed in the preceding section, shall j™* Bta ™P m s» 

3 forfeit the full amount of the bill or bills allowed to pass without g 5 |. 3 5 7 7 % § 6 3 2. 

4 being so written upon or stamped. And if a bank or bank officer, p- s. 118, § 42. 

5 by mistake or inadvertence and not fraudulently, so writes upon or 

6 stamps a bank bill which is not a counterfeit, altered, or worthless 

7 bill, such bank shall on demand pay to the holder its value. 

1 Section 43 . A bank holding itself out to receive the bills of any Kedeeming 

2 bank in New England, current by law or usage in this common- Swnfo'f 

3 wealth, for the purpose of redemption and return, either directly p^undf at 

4 or indirectly, to the bank of issue, shall receive at par all such bills ^o a lsi e §§ i, 2 

5 offered in the usual course of business, until notice is given at its p. s. us, § 43. 

6 counter of refusal of such bills ; and a bank giving such notice of 

7 refusal shall publish the same in the next daily issue of a newspaper 

8 published in Boston. 

1 Section 44. No bank shall require anything from any person -f^ ™^ 

2 offering such bills which it does not require from all persons ; but liability. 

3 the provisions of this chapter shall not affect a contract voluntarily p. s. us, § 44. 

4 entered into relative to the redemption of such bills. 



1096 



BANKS AND BANKING. 



[Chap. 115. 



Sw a i^'§4 Section 45. Whoever violates a provision of the two preceding 1 

p. s'. us, § 45. sections shall for each offence forfeit one thousand dollars, to be 2 

recovered by an action, one-half to the use of the prosecutor and 3 

one-half to the use of the commonwealth. 4 



What bills 

bank to pay 

out. 

1843, 93, § 11. 

1851, 267, § 12. 

G. S. 57, §§ 55, 

124. 



Bills, etc., 
redemption. 
Penalty. 
1816, 91, § 2. 
1828, 96, § 25. 
E. S. 36, $ 61. 
G. S. 57, § 70. 
1865, 147, § 1. 
P. S. 118, § 47. 
4 Pick. 314. 



Section 46. No bank shall pay from its counter bills, except 
its own, those of other banks of this commonwealth, of a banking 
association organized under the laws of the United States and 
located in New England, and demand notes of the United States. 



1862, 4. 



1864, 190, § 5. 



P. S. 118, § 46. 



Preceding 
section limited. 
1816, 91, § 2. 
1828, 96, § 25. 
R. S. 36, § 62. 
G. S. 57, § 71. 
P. S. 118, § 48. 
16 Gray, 534. 



Section 47. A bank which issues a bill, note, check or draft 
redeemable in any other manner than by pajonent in specie or law- 
ful money of the United States on demand, or payable at a place 
other than the place where such bank is by law established and 
kept, shall pay the same in specie or lawful money of the United 
States to the holder thereof on demand at said bank, without a 
previous demand at the place where the same is on the face of such 
bill, note, check or draft made payable ; and the bank which issued 
the same neglecting or refusing so to pay on demand, shall pay to 
the holder thereof two per cent a month damages as long as such 
neglect or refusal continues. 

Section 48. The provisions of the preceding section shall not 
apply to a check or draft drawn by the president or cashier of a 
bank within this commonwealth, on another bank either within or 
without this commonwealth, for a sum exceeding one hundred 
dollars ; but all such checks or drafts shall first be presented for 
payment at the bank on which they are drawn, and in default of 
payment the holder may recover against the bank which issued the 
same the amount of such check or draft, with additional damages of 
two per cent a month on the amount thereof from the time of such 
default. 



1 
2 
3 
4 

1 

2 
3 
4 
5 
6 
7 
8 
9 
10 
11 

1 

2 
3 
4 
5 
6 
7 
8 
9 
10 



Banks may 
draw for 
balances. 



Section 49. The provisions of this chapter shall not prevent a 1 
bank from drawing a check or draft for a balance due to it. 2 



1828, 96, § 25. 



R. S. 36, § i 



G. S. 57, § 72. 



P. S. 118, § 49. 



Amount of 
reserve. 
1856, 95. 

1858, 69, § 1. 

1859, 218, § 1. 
G. S. 57, § 19. 
1865, 147, § 1. 
P. S. 118, § 50. 
4 Allen, 1. 



RESERVE. 

Section 50. A bank shall keep in the bank as a reserve an 1 

amount of specie or lawful money of the United States equal to 2 

fifteen per cent of its liability for circulation and deposits ; and 3 

when by the returns required by sections ninety-nine and one hun- 4 

dred it appears that the weekly or monthly average of reserve 5 

required thereby to be returned by a bank is less than that amount, 6 

such bank shall make no new loans until its reserve is restored to 7 

such amount. Lawful money of the United States or specie spe- 8 

dally deposited by a bank in Boston in the bank of deposit of the 9 

Boston Clearing House, and balances payable on demand due from 10 

other banks to banks out of Boston or in South Boston and in the 11 

parts of Boston formerly Brighton, Charlestown, Dorchester, Rox- 12 

bury and West Roxbury, which may be applied to the redemption 13 

of their bills, shall be a part of the reserve in the bank for the 14 

purposes of this section. 15 



Chap. 115.] banks and banking. 1097 

loans and discounts. 

1 Section 51. No bank shall directly or indirectly make a loan Loans, etc., 

2 or discount unless the amount of the loan or the proceeds of the Semand^ete. 

3 discount are payable by the bank on demand in specie or in bills r 2 |. f 6 ' |1|' 

4 which it is authorized to pay out. A loan or discount made con- p^f'f^Yfi 

5 trary to the provisions of this section shall be void ; and the bank ] ^ sh - &&■ 

6 for each such offence shall forfeit five hundred dollars. 6 Gray, 458. 

16 Gray, 534. 8 Allen, 201. 11 Gray, 256. 

1 Section 52. A bank which loans or issues any of its notes or certain wiis 

2 bills with an agreement or understanding that they shall not be put fromSa' 

3 into immediate unrestricted circulation, or that they shall not be 183?; 224. 

4 returned to the bank within a limited time, shall forfeit not more p"|"n§ § § 6 52 

5 than one-half nor less than one-fourth of the amount so loaned or ? Me*. 587. 

„ . , 4 Allen, 1. 

issued. 

1 Section 53. Unless by a special vote passed at a meeting called to™fficers loans 

2 by written notification to the stockholders, giving notice of the i||8> i|>. §6. 

3 proposed vote, no officer of a bank shall be in any way liable to it g. s. 57,'§ 54. 

4 upon notes, checks, drafts or other security to an amount greater 

5 than eight per cent of its capital actually paid in, nor exceeding 

6 forty thousand dollars ; nor shall its whole board of directors be so 

7 liable to an amount exceeding thirty per cent of its capital stock ; 

8 and such vote shall have no validity after one year and thirty days 

9 from its passage, nor unless it states the amount so authorized. A 

10 bank violating a provision of this section shall for each offence 

11 forfeit five hundred dollars. 

1 Section 54. No bank shall make a loan or discount to a manu- Loans to 

2 facturing corporation whose cashier, treasurer, or financial officer is ^rations* 

3 also cashier of said bank. p. s. ns, § 54. 1860, m< § 2 - , 



LOANS TO THE COMMONWEALTH. 

1 Section 55. Upon requisition of the general court each bank ^ea]th. mmon " 

2 shall loan to the commonwealth not more than five per cent of its ]| 2 | | 6 6 > § ij. 

3 capital stock at anyone time, reimbursable by five annual instal- g! s. 57J § 8|! 

4 ments or at a shorter period at the election of the commonwealth, p. s'. us', § 55. 

5 with annual interest at a rate not exceeding six per cent ; but the 

6 commonwealth shall not be entitled to demand of a bank loans 

7 which together at any one time exceed one-tenth of its capital. 

1 Section 56. "When the treasurer and receiver general is author- Notice to 

2 ized by an act or resolve of the general court to borrow money of iJS, 133, § 1. 

3 a bank, he shall give notice in writing to the president or cashier bJI.h^m. 

4 thereof of the amount to be furnished by such bank, and shall f;|;f^§ § ^ # 

5 require a loan of the same in accordance with the provisions of this 

6 chapter ; and thereupon the bank shall place to the credit of the 

7 commonwealth the amount of the loan required. 



1 Section 57. The treasurer and receiver general in making de- Apportion. 

2 mand upon the banks for such loan shall equalize as far as con- required. 09 



1098 



BANKS AND BANKING. 



[Chap. 115. 



1815, 


133 


,§4. 


1828, 


96, 


§16. 


R. S. 


,36, 


§37. 


G. S. 


.57, 


§85. 


P. S. 


118 


; § 57, 


Forfeiture if 


banks refuse 


to loan. 




1815, 


133 


,§2. 


1828, 


96, 


§16; 


97, § 6. 




R. S. 


36, 


§38. 


G. S. 


57, 


§86. 


P. S. 


118 


,§58. 



veniently practicable the amount of such demand among the several 3 

banks, having reference to the amount of the obligation of each to 4 

lend to the commonwealth, and to the amount previously borrowed 5 

by it of each bank. 6 

Section 58. A bank neglecting or refusing for thirty days after 1 

notice from the treasurer and receiver general to make such loan 2 

and to place the amount thereof to the credit of the commonwealth, 3 

shall forfeit a sum equal to two per cent a month upon the amount, 4 

as long as such refusal or neglect continues : provided, that the 5 

notice demanding such loan is approved by the governor in writing, 6 

and accompanied by an attested copy of such act or resolve. 7 



Suit for 
refusal. 
1815, 133, § 3. 
1828, 96, § 16. 
R. S. 36, § 39. 
G. S. 57, § 87. 
P. S. 118, § 59. 



Section 59. The treasurer and receiver general, at the expira- 1 

tion of thirty days after such demand and after such neglect or 2 

refusal, shall institute an action, in the name of and for the use of 3 

the commonwealth, against the bank so neglecting or refusing, for 4 

the recovery of said penalty ; and from month to month shall in- 5 

stitute similar suits as long as such neglect or refusal continues ; 6 

and upon obtaining judgment and execution he shall cause the 7 

amount thereof to be forthwith levied and the judgment satisfied. 8 



CIRCULATING NOTES. 

te?n engraved Section 60. The auditor shall cause to be specially engraved 
banknotes, an( j printed for each bank, in the best manner to guard against 
is5i,267, §6. counterfeiting, circulating notes in the similitude of bank notes, 

1859 221 6 6 o" o " 

g. s. 57,'§ ii5. in blank, of such denominations as are allowed by law, and in 
1861172! 209 ' §6 * such quantities as he may from time to time consider necessary. 
p. s. us, § 60. before such notes are delivered to a bank they shall be numbered 
and registered in proper books kept for the purpose in the office of 
the auditor, and countersigned by him, or under his direction by 
some person or persons, not exceeding three in number, by him 
appointed with the approval of the governor and subject to removal, 
of which appointment such public notice shall be given as the gov- 
ernor requires. 



1 
2 
3 

4 

5 

6 

7 

8 

9 

10 

11 

12 



rTotes'totont Section 61. When a bank transfers to the auditor, to an amount 

w28 n 96 e T'4 n0 * ^ ess ^ an ^y thousand dollars and not exceeding twenty-five 

r. s'. 36, § 8. per cent above its capital stock, any public stock producing five per 

1851 267 §7 . . oi 

i852| 236! § 2! cent or more a year, issued by this commonwealth or by a county, 

g.°s. 6 5 9 7, § §§56, city, or town therein, or by any of the other New England states, 

i860, 170. or b} r the United States, or any public stock issued by the State of 

P. S'. 118, §61, 



New York and equal in value to stock issued by this commonwealth 
producing six per cent a year, such transfer being at a rate not 
above the par value of the stock transferred nor above its current 
market value, such bank shall be entitled to receive from the auditor 
an equal amount of circulating notes so countersigned and regis- 11 
tered, and stamped on their face, " secured by- the pledge of public 12 
stocks." 13 



1 

2 
3 
4 
5 
6 
7 
8 
9 
10 



— to destroy 
notes returned. 



Section 62. A bank may at any time return any portion of its 1 
g. s.57, §116. circulating notes to the auditor, who shall forthwith on receipt 2 



Chap. 115.] banks and banking. 1099 

3 thereof cause them to be destroyed in his presence and in the pres- i860, 2. 

4 ence of the cashier and of one of the directors of the bank; and p 6 s.iil,§62. 

5 a certificate thereof shall be entered upon the books of the auditor, 

6 and signed by him and said cashier and director. 

1 Section 63. The circulating notes held by a bank shall at all f^endfrof 

2 times be secured in full by public stocks as provided in section 8tock - 

3 sixty-one, and shall never be less in amount than fifty thousand g. s. 57,' § iw. 

P C 1 111 S £Q 

4 dollars; subject to which provisions, the auditor may, upon appli- 

5 cation of a bank, surrender and transfer to it its deposited stock 

6 or any part thereof, in exchange for other stocks of the kind speci- 

7 fied in said section, or for an equal amount of circulating notes 

8 originally delivered to said bank, to be by the auditor immediately 

9 cancelled. 

1 Section 64. Securities held by the auditor under the provisions securities to 

2 of this chapter shall as soon as received, and in presence of the anlmdorsed, 

3 president or cashier of the bank, be stamped or branded with the G h s n 57, § 119. 

4 following words : — p - s - 118 > § u - 

Commonwealth of Massachusetts. 

Deposited in the auditor's office by [the name of the bank depositing the 
security] as security for its circulating notes. Not to be withdrawn without 
the consent of the auditor indorsed hereon, and countersigned by the treasurer 
and receiver general. 

5 And such securities, when withdrawn in accordance with the pro- 

6 visions of this chapter, shall be indorsed with the words " With- 

7 drawn by consent of the auditor"; which consent shall be signed 

8 by the auditor and countersigned by the treasurer and receiver 

9 general. 

1 Section 65. The auditor shall not countersign circulating notes penalty for 

2 for a bank to an amount in the aggregate exceeding the public fng excesf of 

3 stocks deposited with him by such bank. For wilfully violating Jgg-f 8 ^ § 14 . 

4 the provisions of this section he shall be punished by a fine of not £■ |. g/§ 122. 

5 less than five thousand dollars or by imprisonment for not less 

6 than five years, or by both such fine and imprisonment. 

1 Section 6Q. The auditor shall make and deliver to every bank ^3-^^ 

2 powers of attorney to receive the interest and dividends at any etc., on public 

„. , , J , -, . tt -,11-jiii i stock pledged. 

3 tune due on the public stock deposited by it ; but he may revoke win. 267, § 9. 

4 such powers of attorney when in his judgment the public safety p.' s.' iw, § 66.' 

5 requires it ; and money received by him as interest or dividends 

6 shall be held in trust for and on account of the bank. 

1 Section 67. The board of commissioners of savings banks shall j** 1 ^^ 

2 from time to time when it considers it necessary, and as often as ere to examine 

3 once in each year, examine the certificates of stocks held by the ihsi, •]<;:,§ 17. 

4 auditor and the amount of circulating notes issued to a bank on lse&'uifs. ' 

5 account thereof, and, if in its opinion such stocks have so depre- p - s - 118 -§ 67 - 

6 ciated in value as to make them unsafe for the security deposited, 



1100 BANKS AND BANKING. [CHAP. 115. 

shall require the bank to exchange them, or give additional security 7 

to the satisfaction of said board. 8 

Rates, dies, Section 68. The plates, dies and materials to be procured by 1 

i8i7'i88 § §§'i 2. *^ e auditor for making such notes shall remain in his custody and 2 

i85i; 267' § 13'. under his direction . g. s. 57, § 123. p. s. ns, § 68. 3 

for n numb p mng Section 69. Banks shall pay for numbering, registering, and 1 

i8°62 eS 95 etc- countersigning circulating notes, one cent for each sheet of four 2 

p. s. us, § 69. impressions ; and for making out transfers of stock from the auditor 3 

to the bank, twenty cents for each folio. All further expenses in- 4 

curred in the auditor's department for business required by law to 5 

be performed therein appertaining to said banks shall be paid by 6 

assessments, pro rata, upon the capital stock of all banks. Pay- 7 

ments required by the provisions of this section shall be made on 8 

the first day of April and of October in each year ; and the amounts 9 

and items due on said days from the several banks shall be certified 10 

to the treasurer and receiver general by the auditor. 11 

W28 C , U 9M 25. Section 70. The bank, after having executed such circulating 1 

fm "2 3 67 § § 5 io n °tes in the name of the president, directors, and company of the 2 

G - s - 5 ".'§§ 57i bank, and caused them to be signed by its president and cashier, 3 

p. a. ns, § 70. so as to make them notes paj^able on demand at its banking house, 4 

may loan and circulate them as money, subject to the laws and 5 

usages of this commonwealth in regard to banking, and shall issue 6 

no other circulating notes. 7 

when ee p d ayment Section 71. If a bank after receiving such circulating notes 1 

refused 9 i8 refuses or delays payment in gold and silver or lawful money of the 2 

1809. 38, § i. United States of any such note issued by it and presented for pay- 3 

r."s'. 36, § 29. ment in its usual hours of business, it shall pav to the holder of such 4 

i85i| 267J § ii. note, as damages, at the rate of twenty-four per cent a year for the 5 

g.^s. 57, §§ 59, tj me d urm g which such payment is delayed or refused, and the 6 

i863| I- holder making such demand may cause the same'to be protested. 7 

1865' i' ^ ne au ditor, on receiving and filing in his office such protest, shall 8 

1866,' 39. forthwith give notice in writing to the bank which issued such note ; 9 

1867 1. " ® . 

p. s. 1*18, § 71. and if it neglects or refuses to redeem it in gold or silver or lawful 10 

5 Pick.' 105.' money of the United States for ten days after such notice, he shall 11 

8 9 A^ien'll' immediately, unless he is satisfied that there is a good and legal 12 

defence against the payment thereof, give notice by publication in 13 

two or more newspapers that all the circulating notes issued by such 14 

bank will be redeemed out of the trust funds in his hands for such 15 

purpose. He shall thereupon apply such trust funds to the payment, 16 

pro rata, of all the circulating notes issued by such bank, whether 17 

protested or not, and adopt such measures for the payment thereof 18 

as will in his opinion most effectually prevent loss to the holders. 19 

?etarn™dto b the Section 72. When a bank redeems and returns to the auditor 1 

ba^ at least ninety per cent of the circulating notes which it has received, 2 

g. s. 57,'§ 129. and deposits in his name in such bank as he approves an amount of 3 

1869', 149! ' money equal to its unredeemed circulating notes, be may give up 4 

• • ns, § 72. a ^ ^ e secur jti es theretofore deposited by it. 5 



Chap. 115.] banks and banking. 1101 

1 Section 73. A bank which has complied with the provisions of Bank may be 

2 the preceding section may give notice for six years in any news- when aige ' 

3 paper authorized to publish the laws of this commonwealth, and also g. s. 57, §130. 

4 in at least one newspaper published in the county where the bank is p. 6 s. nt, § 73. 

5 located, that all circulating notes issued by it must be presented at 

6 the auditor's office within six years from the first publication of such 

7 notice, and that at the termination of said six years the notes will 

8 not be redeemed. On proof that such notice has been given, the 

9 auditor shall pay over to the bank any money in his hands ; and the 
10 bank shall not be longer held for the redemption of its bills. 

1 Section 74. No bank shall have in circulation at one time notes Denomination 

2 under five dollars to an amount exceeding one-quarter part of its 1799, 32?'§ 3. 

3 capital actually paid in ; and no bank shall issue, loan or receive 1805; u, § 1. 

4 bank bills of any fractional denomination, whether greater or less Hit; III §§ 3 ' 4 * 

5 than one dollar ; and a bank which so issues, loans or receives frac- J|^> ™« |y> 3 - 

6 tional bills shall for each offence forfeit one hundred dollars. JLf'li: 556 - 

G. S. 57, § 60. P. S. 118, § 74. 

1 Section 75. Circulating notes signed by the president or cashier Redemption of 

2 of a bank, which are in circulation through the agency or neglect notes. ' etc- ' 

3 of any of its officers, shall be redeemed by the bank. A bank e 2 s'. 9 36,§§°44, 

4 shall be liable to pay to a bona fide holder the original amount of g.' 13.57 §§57 

5 a circulating note of such bank which is altered to a larger amount p g 
f> in the course of its circulation. 

1 Section 76. A bank may, in like manner as in case of goods Banks may 

2 unlawfully detained, cause to be replevied any of its circulating flSng notes 5 ! 1 " 

3 notes issued as currency, detained by the holder after it has paid (ffs'.OT^Hs. 

4 or tendered to him the amount due thereon with interest and costs p - s - 118, § 76 - 

5 accrued ; if they are so secreted or withheld that they cannot be 

6 replevied, remedy may be had in equity, as in case of goods so 

7 secreted or withheld. 

1 Section 77. If upon the hearing it appears that the full amount ^g^l^l? 

2 of principal, interest and costs has been paid or tendered to the ip9, 1^6, §| 

3 defendant, the plaintiff's damages for the detention shall be assessed p.' s.' 118, § 77. 

4 by the jury or by the court upon a hearing in equity, and the 

5 plaintiff shall recover the same with his costs of suit, and the 

6 defendant shall have judgment for any sum tendered and not re- 

7 ceived. But if it appears that said notes were withheld for an 

8 amount due to the defendant beyond the amount paid or tendered, 

9 he shall have judgment for the sum due at that time, and unpaid, 
10 with interest and costs. 

1 Section 78. The property and effects of a bank shall be first J r ° e t f e e s r t r ^ e 

2 applied to the redemption of its notes in circulation. 1 Gray, 382. pf'Ss 8 ^ 

1 Section 79. When a bank is placed in the charge of one or Auditor to 

2 more receivers or trustees by the supreme judicial court, the auditor B toeks? r etc., to 

3 shall transfer and pay over to them all stocks or moneys held by ggfwftn. 

4 him as the property of such bank, to be by them applied to the g;f;fkyj£ 

5 redemption of its circulating notes. 



1102 



BANKS AND BANKING. 



[Chap. 115. 



Liability of 

stockholders 

for redemption 

of bills. 

1828, 96, § 13. 

R. S. 36, § 31. 

1849, 32. 

G. S. 57, §§ 79, 

80. 

1865, 105, § 4. 

P. S. 118, § 80. 

23 Pick. 334. 

9 Met. 195. 

10 Met. 525, 569. 
1 Gray, 386. 

3 Allen, 43. 
Ill Mass. 201. 



LIABILITY OF STOCKHOLDERS. 



Section 80. Stockholders in a bank at the time when it stops 1 

payment, or when its corporate franchises are surrendered or for- 2 

feited, shall be personally liable for the payment and redemption 3 

of all circulating notes issued by such bank and remaining unpaid, 4 

in proportion to the stock they respectively held at the time afore- 5 

said ; and stockholders, who, having reason to believe that a bank 6 

is about to stop payment, transfer their shares or any part thereof 7 

with intent to avoid such liability, or who having reasonable cause 8 

to believe such bank insolvent transfer any of their shares within 9 

six months before such surrender or forfeiture of its franchises, 10 

with intent to avoid such liability, shall be subject to the same, on 11 

the shares so transferred. 12 



Assessment by 
receivers on 
stockholders. 
1860, 167, § 1. 
P. S. 118, § 81. 
3 Allen, 42. 



Section 81. When receivers appointed to close the affairs of a 1 

bank are of opinion, at the expiration of thirty days after their 2 

appointment, that the funds in their hands at the expiration of 3 

thirty days thereafter will be insufficient for the redemption of the 4 

circulating notes of said bank, they shall assess ratably upon all 5 

the stockholders liable therefor an amount sufficient to make up 6 

such probable deficiency ; such assessment to be approved by the 7 

supreme judicial court, after due notice by publication or otherwise. 8 



— proceedings 
thereupon. 
1860, 167, § 2. 
P. S. 118, § 82. 



Section 82. The amount thus assessed shall be payable at such 1 

time and place as the court may direct ; and a stockholder refusing 2 

or neglecting so to pay the same shall be liable in an action of tort, 3 

to be brought by said receivers, for the amount so assessed with 4 

interest at the rate of twelve per cent per annum while such neglect 5 

or default continues ; and no such assessment shall be invalidated 6 

as to a person who is liable for the redemption of such notes by 7 

reason of an omission or misstatement as to any other person. 8 



Further 
assessments. 
1860, 167, § 3. 
P. S. 118, § 83. 



Section 83. If such assessment proves to be insufficient or in- 1 
complete, the court may, from time to time, order further assess- 2 
ments necessary to correct the same or to supply the deficiency. 3 



Corporations 
liable as other 
stockholders. 
1860, 167, § 4. 
P. S. 118, § 84. 



Section 84. Corporations holding stock in a bank shall be liable 1 

as other stockholders to the provisions of this and the three pre- 2 

ceding sections ; and the provisions of said sections shall not impair 3 

the liability of any person who may transfer stock with intent to 4 

avoid liability, or impair any other remedies of the holders of cir- 5 

culating notes, or the right of a stockholder compelled to pay a 6 

debt or demand against a bank to compel contribution against other 7 

persons liable therefor. 8 



deficiency, etc. Section 85. Ka loss or deficiency of the capital stock in a bank 
nabie hold ^ rs ' ar i ses from the official mismanagement of the directors, the stock- 
ists, 96, § 12. holders at the time of such mismanagement shall be personally liable 

T? ^ 3fi 8 3ft " 

g. s.' 57,' § 78.' to pay the same ; but no stockholder shall be liable to pay a sum 

23 pick. 8 ii2 85 ' exceeding the amount of the stock actually held by him at that time. 

9 Met. 182. 

may k TO mp e e r i 8 Section 86. A stockholder of a bank who is obliged to pay a 

contribution. d e fot or demand against said bank out of his individual property 



1 

2 
3 
4 
5 

1 
2 



Chap. 115.] banks and banking. 1103 

3 may have a suit in equity to recover the proportional parts of sums is28, 96, § u. 

4 so paid, from the other stockholders liable for the same, and such §! 1'. li] § !'. 

5 damages and costs as the court may decree. p 36 !'. ii8,§86. 

1 Section 87. A corporation which is a stockholder in a bank similar liabiii- 

. . - 1 . ties ol corpora- 

2 shall be liable in its corporate capacity to pay any loss or deficiency ti° n8 - 

3 of the capital stock in such bank arising from the official misman- R. s. 36, § 33. 

4 agement of its directors, and for the payment and redemption of g. s'. 57, §82. 

5 all circulating notes issued by said bank and remaining unpaid when P " s ' 118 ' § 87 ' 

6 its corporate franchises are surrendered or forfeited, or when it has 

7 stopped payment, in the same manner as individual stockholders 

8 are liable in their individual capacities ; and such corporation may 

9 compel contribution from other stockholders in the manner pre- 
10 scribed in the preceding section. 



WEIGHTS. 

1 Section 88. The directors of each bank, once in five years, weights of 

2 shall have the weights used in it compared, proved and sealed by proved every 

3 the treasurer and receiver general, which shall supersede so far as ?sT)3, y i4v§ 2. 

4 respects such bank the sealing of its weights by the city or town ^ 2 | 9 3 6 6 > | 2 4 2 7 - 

5 sealer - &£&•«%. 

1 Section 89. No tender by a bank of gold, weighed with weights no tender of 

2 other than those compared, proved and sealed as required in the uniessfeW. 

3 preceding section, shall be legal; and the payer or receiver may 1I2I; slf § § 22! 

4 also require that the gold shall be weighed in each scale, and the g! 1'. 57', f 92. 

5 mean weight resulting therefrom shall be considered the true weight. p - s - 118 - § S9 - 



TAKING LAND. 

1 Section 90. The lands of a bank may be taken on execution saieofreai 

2 and sold at public auction to the highest bidder ; and the officer elocution. 

3 levying such execution, having first given notice of the time and i 8 ^; 9M § 24! 

4 place of sale at least fourteen days previous thereto in two or more g; |; f^ | f 3 \ 

5 public places in the city or town where such lands lie, and also in p.s. ns, §90. 

6 a newspaper, if any, published in the county ; otherwise, in a news- 

7 paper published in Boston, shall convey such lands to the purchaser, 

8 and such conveyance shall transfer to the purchaser all the estate 

9 and interest of the bank therein. 

1 Section 91. The officer who levies such execution may adjourn -adjourn. 

2 the sale from time to time, not exceeding seven days at one time, 1811, 105, § 2. 

3 until the sale is completed. g.s.57,§74. p. s. us, §91. R 82 t.?6, § §fi*. 

1 Section 92. All the right, title, claim, and interest of a bank ^S °* 

2 in lands mortgaged for security of a debt due or assigned to such ^ 24> §§ ^ 2> 

3 bank, may be seized on execution and sold at public auction in the i8^96;§|£ 

4 manner prescribed in the two preceding sections ; and a debt secured g. s'. s£ §«• 

5 by such mortgage, and due to the bank at the time of such sale, 

6 shall pass by the deed of conveyance executed by the officer. The 

7 purchaser or his legal representatives may in his or their name 

8 maintain any action proper to recover such debt or obtain possession 

9 of such lands which might have been maintained in the name of the 



1104 



BANKS AND BANKING. 



[Chap. 115. 



bank had no such sale been made, and a copy of such mortgage 10 

deed, certified by the register of deeds for the county or district 11 

where such lands are situate, shall be admissible evidence of the 12 

same. 13 



Cashier, etc., to 
furnish copies 
of notes, etc., 
to officer, etc. 
1813, 24, § 2. 
1828, 96, § 24. 
R. S. 36, § 53. 
G. S. 57, § 76. 
P. S. 118, § 93. 



No transfer of 
such note, etc. 
after notice, 
etc., to be 
valid, except, 
etc. 

1813, 24, § 3. 
1828, 96, § 24. 
R. S. 36, § 54. 
G. S. 57, § 77. 
P. S. 118, § 94. 



Section 93. The cashier or clerk of such bank, on reasonable 1 

request, shall furnish to the officer serving such execution, or the 2 

judgment creditor, a certified copy of the note or obligation and 3 

the indorsement thereon secured by such mortgage, with a state- 4 

ment of all payments made thereon by the debtor, and, after the 5 

sale of such mortgage, shall deliver said note or obligation to the 6 

purchaser. 7 

Section 94. The officer making such seizure on execution, if 1 

' required by the creditor, shall file a notice thereof in the registry 2 

of deeds, and give a like notice to the cashier or president, or 3 

leave the same at the banking house ; and no sale or transfer of 4 

such note, obligation or mortgage, made by the bank after such 5 

notice, shall have any validity against the purchaser under such 6 

sale, but the same shall be void except as between the bank and 7 

the person to whom it makes such sale or transfer, his heirs, exec- 8 

utors, administrators or assigns. * 9 



Banks may 
sell shares 
upon which 
they liave 
lien, etc. 
1863, 174, § 1. 
P. S. 118, § 95. 



SALE OF SHARES. 

Section 95. A bank which has a lien on any of its shares, by 1 

virtue of a by-law or otherwise, for any indebtedness of a stock- 2 

holder after default made in the payment of the sum for which the 3 

shares are held or any part thereof, may give to the owner notice 4 

of its intention to enforce payment by a sale thereof, which notice 5 

shall state the time and place of sale, and shall be served by leaving 6 

a copy thereof with the owner, or at his last and usual place of 7 

abode, if within the county in which the bank is situated, sixty 8 

days before the time fixed for the sale ; and if he has no such place 9 

of abode within the county, said copy shall be sent to him by mail 10 

at his last known place of residence ; and in all cases a copy of 1 1 

such notice shall be published three successive weeks in one of the 12 

principal newspapers, if any, published in the city or town where 13 

the bank is situated ; otherwise, in a newspaper published in the 14 

county ; the last publication to be at least thirty days before the 15 

time fixed for said sale. 16 



Sale, and 
application of 
proceeds, etc. 
1863, 174, § 2. 
P. S. 118, § 96. 



Evidence of 
notice, how 
perpetuated. 
1863, 174, § 3. 
P. S. 118, § 97. 



Section 96. If the debt is not paid before the time of sale, the 1 

bank may sell the shares at public auction, pursuant to said notice, 2 

and apply the proceeds toward the satisfaction of the debt and the 3 

expense of notice and sale ; and any surplus shall be paid on 4 

demand to the person entitled thereto. The purchaser shall be 5 

entitled to a certificate of the shares bought by him. 6 

Section 97. The notice, with an affidavit of the person giving 1 

the same, setting forth fully and particularly the giving of said 2 

notice and the sale of the shares, shall be recorded within thirty 3 

days after the sale in the office of the clerk of the city or town 4 

where the bank is situated ; and when so recorded, the original 5 



Chap. 115.] banks and banking. 1105 

6 notice and affidavit, or an attested copy of the record thereof, shall 

7 be admitted as evidence that notice was duly given and the sale 

8 duly made, if it appears therein that the provisions of this and the 

9 two preceding sections were complied with. 

1 Section 98. The provisions of the three preceding sections shares not to 

2 shall not authorize a bank to sell and dispose of stock contrary to contraiyto ° 

3 the terms of the contract under which it is held. p. s.ns, §98. i8ra?ra,'§4. 



RETURNS. 

1 Section 99. A bank doing business in Boston, except in that weekly re- 

2 portion called South Boston, and except in those portions which tain banks*" 

3 were formerly Brighton, Charlestown, Dorchester, Roxbury and is^o^" i. 

4 West Roxbury, shall on every Monday morning transmit to the §63,'2 5 iV§ 9 l.' 

5 secretary of the commonwealth a statement under the oath of its igee'^i' §3 " 

6 president or cashier of the amount of its capital stock, the average p - s - 118 » § "• 

7 amounts due to and from other banks, of deposits, circulation, loans, 

8 and discounts, specie and lawful money of the United States actually 

9 in the bank, including specie and lawful money of the United States 

10 specially deposited in the bank of deposit of the Boston Clearing 

11 House, which statement shall be based upon the condition of the 

12 bank on each day of the week last preceding said Monday. 

1 Section 100. A bank in South Boston, and in those portions Monthly re- 

2 of Boston formerly Brighton, Charlestown, Dorchester, Roxbury banks ot er 

3 and West Roxbury, and a bank out of Boston, shall on the first isie!, 95?' § 3 " 

4 Monday of each month transmit to the secretary of the common- jes 8 ' 69 '* 1 ' 

5 wealth a like statement, except that banks out of Boston shall not *p| |\ 8, c § ^ 

6 include in their returns specie and lawful money of the United p. s. lis, § 160. 

7 States deposited in the bank of deposit of the Boston Clearing 

8 House ; and all the banks named in this section shall state the 

9 balances payable on demand due from other banks, which may be 

10 applied to the redemption of their bills ; which returns shall be 

11 based upon the condition of the several banks on each Saturday 

12 since their preceding return. 

1 Section 101. A bank neglecting to comply with the require- penalty for 

2 ments of section ninety-nine shall for each neglect forfeit five hun- ^^ot, § 6. 

3 dred dollars ; and a bank neglecting to comply with the requirements g?!.^ 95. 

4 of the preceding section shall, unless the secretary of the common- p - s - 118 > § 101 - 

5 wealth or the treasurer and receiver general is duly satisfied that 

6 said returns were duly made, properly directed to the secretary and 

7 deposited in the post office where said bank is situated, and that 

8 there was no neglect on the part of the officers of the bank, for 

9 each neglect forfeit twenty-five dollars ; and the secretary shall 

10 immediately notify such bank of its neglect, and, if such neglect 

11 continues ten days from said first Monday of any month, the bank 

12 shall forfeit five hundred dollars. 

1 Section 102. The secretary shall cause an abstract of said Aveekly secretary to 

,. . -■ . J i> ,1 t» j. i »i publish ab- 

2 returns to be published in one or more of the Boston daily papers struct of 

3 on the Wednesday after the same are received, and a like abstract i854™07, e §§ '2, 

4 of the said monthly returns as soon as may be after the receipt of 4> 5 - 



1106 



BANKS AND BANKING. 



[Chap. 115. 



G. S. 57, § 96. 
P. S. 118, § 102. 



Blanks to be 
furnished. 
1854, 307, § 7. 
G. S. 57, § 97. 
P. S. 118, § 103. 



Cashiers to 

make returns 

annually. 

1802, 132. 

1805, 111. 

1812, HO, § 1. 

1828,96, §27; 

97, §4. 

R. S. 36, § 65. 

1837, 65. 

1842, 49. 

1851, 267, § 15. 

1854, 309. 

1856, 95. 

1858, 115. 

G. S. 57, §§ 98, 

126. 

1865, 147, § 1. 



the sanie ; and he shall have regard to prices at which offers may 5 

be made to make the required publication of such abstracts. All 6 

bills therefor shall be approved by the governor and council. 7 

Section 103. The secretary shall transmit to each bank blank 1 

forms for the returns required by sections ninety-nine and one hun- 2 

dred, and the banks shall adopt said forms in making the returns. 3 

Section 104. The cashier of each bank shall annually make a 1 

return of the state of such bank as it existed at seven o'clock in 2 

the afternoon of any Saturday the governor may direct ; and he 3 

shall transmit the same as soon as may be, not exceeding fifteen 4 

days thereafter, to the secretary of the commonwealth. Such re- 5 

turn shall specify the amount due from the bank, designating in 6 

distinct columns the several particulars included therein, and shall 7 

also specify the resources of the bank, designating in distinct col- 8 

umns the several particulars included therein, and shall be in sub- 9 

stance as follows : p. s. us, § 104. 10 



Form of 
return. 



Slate of 



Bank, on the 



Saturday of 



19 , 7 o'clock, P.M. 



DUE FROM THE BANK. 

1. Capital stock. 2. Bills in circulation of denomination of five dollars and 
upwards. 3. Bills in circulation of denomination less than five dollars. 4. Net 
profits on hand. 5. Balances due to other banks. 6. Cash deposited, includ- 
ing all sums due from the bank not bearing interest, its bills in circulation, 
profits, and balances due to other banks excepted. 7. Cash deposited bearing 
interest. 8. Total amount due from the bank. 



Returns, how 
authenticated. 



RESOURCES OF THE BANK. 

9. Demand notes of the United States, and gold, silver and other coined 
metals in its banking-house, including, in case of Boston banks, specie in the 
bank of deposit of the Boston Clearing House, and specifying separately the 
amount of United States notes and of specie. 10. Real estate. 11. Bills of 
banks in this and other New England states. 12. Balances due from other 
banks. 13. If the bank is in South Boston, or in either of those portions of 
Boston formerly Brighton, Charlestown, Dorchester, Roxbury or West Roxbury, 
or in any place out of Boston, the balances in any other bank to be applied to 
the redemption of bills, and payable on demand. 14. Amount of all debts due, 
including notes, bills of exchange, and all stocks and funded debts of every 
description, excepting the balances due from other banks, and specifying and 
describing the stocks which it has deposited with the auditor to secure its cir- 
culating notes. 15. Total amount of the resources of the bank. Rate, amount, 
and date of dividends since last return. Amount of reserved profits at the time 
of declaring the last dividend. Amount of debts due to the bank, secured by a 
pledge of its stock. Amount of debts due and not paid, and considered doubtful. 
Amount of liabilities of directors. 

Such return shall be signed by the cashier, who shall make oath 
before a justice of the peace to the truth of said return according 
to his best knowledge and belief; and a majority of the directors 
shall certify and make oath that the books of the bank indicate the 
state of facts so returned by the cashier, and that they have full 
confidence in the truth of said return. 



11 
12 
13 
14 
15 
16 



nlgiect for Section 105. A bank neglecting to comply with the provisions 1 

ill 97V7 3 ' °^ ^ ne P rece( ^ m g section shall forfeit one hundred dollars for each 2 

r. s'. 36, § 66. day's neglect, to be recovered by the treasurer and receiver general. 3 

G. S. 57, § 99. P. S. 118, § 105. 



Chap. 115.] banks and banking. 1107 

1 Section 106. The secretary of the commonwealth shall annually secretary to 

2 in the month of March or April furnish four printed copies of the ffwt/s™ 8- 

3 form of the return required by section one hundred and four to the g! 1. 57', 1 iob. 

4 cashier of every bank. p - s - 118 > § 106 - 

1 Section 107. The secretary of the commonwealth shall, as soon —to prepare 

2 as may be after he has received the annual returns from the several th^reuimsf 

3 banks, cause to be prepared and printed a true abstract of the same, 1828,96, §29. 

4 with each column added up ; and he shall transmit by mail one copy Sbf^,^. 

5 to the cashier of each bank in this commonwealth, and shall submit g- 7 s> 57,§§ 101 > 

6 the same to the general court at its next session. *"• s- us, § 107. 



supervision. 

1 Section 108. Any committee, appointed by the general court General court 

2 for the purpose, mav examine into the doings of anv bank, and banks, etc. 

0*/ 7 T ftoo qf; SIT 

3 shall have free access to its books and vaults. If upon such exam- r. s. 36, § 40. 

4 ination and after a hearing of said bank thereon it is determined by p.' I' ns.Vios. 

5 the general court that said bank has exceeded its powers, or failed 

6 to comply with any of the rules, restrictions and conditions pro- 

7 vided by law, its corporate franchises may be declared forfeited, 

8 and shall thereby be annulled. 

1 Section 109. An officer of a bank, or any other person having Penalty for 

2 charge of its books and property, refusing or neglecting to exhibit exhibit books, 

3 them to such committee, or in any way obstructing the examination lass, 96, §17. 

4 thereof by the committee, shall be punished by a fine of not more <*. il I?! 1 103. 

5 than ten thousand dollars or by imprisonment for not more than p - 8 - 118 > § 109 - 

6 three years. 

1 Section 110. One-eighth of the stockholders in number or committee of 

2 interest in a bank may, when they consider it necessary, choose a etc. 66 lga on ' 

3 committee of their own number to investigate its affairs. If upon g. s. 57, § 104. 

4 examination such committee are of opinion that the bank is insolvent, p 6 !. nl',f iio. 

5 or that its condition is such as to render its further progress hazard- 

6 ous to the public or to those having funds in its custody, or that the 

7 bank has exceeded its powers, or failed to comply with all the rules, 

8 restrictions and conditions provided by law, they shall forthwith 

9 report the facts to the supreme judicial court, which shall have juris- 

10 diction in equity to enjoin it in whole or in part from further pro- injunctions. 

11 ceeding with its business until a hearing, and to make such orders 

12 and decrees to suspend, restrain or prohibit the further prosecution 

13 of the business of such bank as may be needful. It may appoint 

14 agents or receivers to take possession of the property and effects of 

15 the bank, subject to such rules and orders as it may from time to 

16 time prescribe. 

1 Section 111. "When the supreme judicial court is satisfied, from -maybe 

~ ,, r . ° . 11 1 1 1 • • 1 x issued when 

2 the certificate of the auditor or otherwise, that a bank is insolvent, bankisinsoi- 

3 or that its condition is such as to render its further continuance usWsr.'i *>. 

4 hazardous to the public or to those having funds in its custody, or feiJ^Vfe. 

5 that it has exceeded its powers, or has failed to comply with all the 

6 rules, restrictions and conditions provided by law, the same pro- 

7 ceedings shall be had in relation thereto as are provided in the 

8 preceding section. 



1108 



BANKS AND BANKING. 



[Chap. 115. 



Commission- 
ers of savings 
banks to visit 
banks. 
1839, 27, § 1. 
1843, 93, § 1. 
G. S. 57, § 4. 
1866, 192, § 8. 
1876, 231, § 3. 
P. S. 118, § 112. 



Section 112. The board of commissioners of savings banks 1 

shall, when it deems it necessary, visit any bank organized under 2 

the provisions of this chapter, and shall continue such visits after 3 

the corporate powers of a bank have been annulled by an act of the 4 

general court or by the surrender by its stockholders, so long as 5 

it continues a body corporate. 6 



coTmiLlon- Section 113. Said board shall have the powers and perform the 

i838 as i4° bank8 ' duties relative to such banks that it has relative to savings banks by 
r 5 s' 12 %s5-8 sec ti° ns three to six, inclusive, and section forty-nine of chapter 
i862,'i3i. " one hundred and thirteen, and said sections shall apply to banks. 

1866, 192, § 8. 1876, 231, § 3. P. S. 118, § 113. 



1 

2 

3 
4 



Commission- 
ers to report 
violations of 
law. 

1838, 14, § 6. 
1851, 127, §§ 6, 
10. 

G. S. 57, § 9. 
1866, 192, § 8. 
1876, 231, § 3. 
P. S. 118, § 114. 



Section 114. If in the opinion of the board such bank or its 1 

directors or cashier has violated a law relative to banks and banking, 2 

it shall forthwith report the same to the secretary of the common- 3 

wealth. The secretary shall notify the attorney general thereof, 4 

who shall forthwith institute in behalf of the commonwealth a 5 

prosecution for such violation. 6 



Surrender of 
franchise. 
1838, 108, § 1. 
1841, 113. 
G. S. 57, § 105. 
P. S. 118, § 115. 



SURRENDER OF FRANCHISE. 

Section 115. The stockholders of a bank, at a meeting called 1 

by a written notice from the cashier, stating the time, place and 2 

object of the meeting, sent to each stockholder thirty days at least 3 

before the time of holding the same, and published in one or more 4 

newspapers, if any, published in the city or town, otherwise, in 5 

one or more newspapers published in the county where such bank 6 

is situated, for three weeks before the time of such meeting, may, 7 

by a majority of the votes all the stockholders could cast if present, 8 

or, when the board of commissioners of savings banks has so 9 

recommended, by a majority of the votes cast at such meeting, 10 

surrender and thereby annul the corporate franchises of such bank ; 11 

but such annulling shall not exempt the stockholders from any 12 

liability imposed by the provisions of this chapter or chapter one 13 

hundred and nine. 14 



ofhabim 1 " 16 Section 116. A stockholder or creditor of a bank which has 1 

1848, 251. surrendered its corporate franchise may, for the purpose of limiting 2 

p.' s." us, § ii6. the time beyond which its liabilities shall be barred, apply by 3 

petition to the supreme judicial court, which shall have as full 4 

power to fix such limitation as if the bank were before it by a 5 

creditors' bill in equity, or under chapter one hundred and nine. 6 



Disposition of 

plates and 

dies. 

1855, 168, §§ 2, 3. 

1860, 209, § 6. 

G. S. 57, § 108. 

1863, 85. 

P. S. 118, § 117. 



Section 117. When the corporate franchise of a bank expires 1 

or is forfeited, or when a bank closes its business, the auditor shall 2 

forthwith deliver up all its plates and dies to the court of record 3 

having jurisdiction of the offence of counterfeiting in the county 4 

in which the bank has been established, and the court shall cause 5 

them to be disposed of in such manner as shall be considered ex- 6 

pedient in order to prevent their use for an unlawful purpose. 7 



o^tanks 61501 ^ 8 Section 118. The directors of a bank authorized to settle and 1 
closing affairs, close its affairs, and receivers appointed to take possession of the 2 



Chap. 116.] trust companies. 1109 

3 property and effects of a bank, shall annually, on the second Wednes- im, 32. 

4 day of January, make a report to the general court, stating under S' 7 S * 57 ' §§ 156, 

5 specific heads the liabilities and property of the bank, and rendering p 88 ^ ^f § 118 

6 a full account of their receipts, payments and doings in the execu- 

7 tion of their trusts. Directors and receivers neglecting to comply 

8 with the provisions of this section shall for each day's neglect 

9 severally forfeit twenty dollars, to be recovered by the treasurer 

10 and receiver general ; but no payment of a forfeiture so incurred 

11 or of expenses resulting from such forfeiture shall be allowed as a 

12 charge against such bank. 



CHAPTER 116. 

OF TRUST COMPANIES. 



1 Section 1. Domestic trust companies incorporated subsequent corporations 

2 to the twenty-eighth day of May in the year eighteen hundred and chapter. 

• 1888 4-13 S 1 

3 eighty-eight shall be subject to the provisions of this chapter, and i89o| 315; § 2. 

4 any such corporation chartered prior to said date which has adopted il!Vass. § 3k. 

5 or which shall adopt according to law the provisions of this chapter 

6 or of any section thereof, or the corresponding provisions of earlier 

7 laws, shall be subject to the provisions so adopted ; and all such 

8 corporations, whenever incorporated, shall be subject to the provi- 

9 sions of sections fourteen, fifteen and eighteen to twenty-two, inclu- 

10 sive, section twenty-four, so much of section thirty-seven as applies 

11 to corporations exercising the powers conferred by the provisions 

12 of section eighteen, and section thirty-eight ; but the provisions of 

13 section twenty-four so far as they are inconsistent with the provi- 

14 sions of the charter of a trust company incorporated prior to the 

15 twenty-eighth day of May in the year eighteen hundred and eighty- 

16 eight shall not apply to such corporation in the performance of its 

17 duties as trustee. 

1 Section 2. A domestic trust company transacting business in chapter, how 

2 this commonwealth may adopt as a part of its charter the provisions i89o?3i5,' § 2. 

3 of this chapter or of any section thereof by a majority vote of the 

4 stock represented at a special meeting called for the purpose and 

5 by filing, within ten days from the date of such meeting, with the 

6 secretary of the commonwealth and with the board of commissioners 

7 of savings banks a certificate sworn to by the clerk of such corpora- 

8 tion and stating such adoption. 

1 Section 3 . No person or association and no bank or corpora- who may do 

2 tion, except trust companies incorporated as such in this common- i8so, n 467.' 

3 wealth, shall advertise or put forth a sign as a trust company or in 

4 any way solicit or receive deposits as such. Whoever violates any 

5 provision of this section shall forfeit for each offence one hundred 

6 dollars for each day during which such offence continues. But the 

7 provisions of this section shall not prohibit an insurance company 

8 authorized prior to the first day of October in the year eighteen hun- 

9 dred and ninety-nine to do business in this commonwealth nor a 
10 company authorized prior to said date to transact a foreign mortgage 



1110 



TRUST COMPANIES. 



[Chap. 116. 



business in this commonwealth from using the words " Trust Com- 11 

pany" as a part of its corporate name. 12 

ftjrorgaidza? Section 4. A domestic trust company shall organize and com- 1 

1893' iu «i mence business within two years from the date of its incorporation, 2 

otherwise its charter shall become void. 3 



Capital stock 
ana shares. 
1888, 413, § 2. 
1897, 304, § 1. 



Section 5. The capital stock of such corporation shall be not 1 

less than five hundred thousand nor more than one million dollars, 2 

except that in a city or town whose population is not more than one 3 

hundred thousand the capital stock may be not less than two hun- 4 

dred thousand dollars, divided into snares of the par value of one 5 

hundred dollars each ; and no business shall be transacted by the & 

corporation until the whole amount of its capital stock is subscribed 7 

for and actually paid in, and no shares shall be issued until the par 8 

value of such shares shall have actually been paid in in cash. 9 



List of stock 
holders. 
1897, 304, § 1. 



Section 6. Before entering upon active business, such corpora- 
tion shall file with the board of commissioners of savings banks a 
list of its stockholders, with the name, residence and post ofiice ad- 
dress of each and the number of shares held by each, which list shall 
be verified by the two principal officers of the corporation. Unless 
it appears upon examination caused to be made by said board, upon 
receipt of said list, that the entire capital of such corporation has 
been paid in in cash, said board shall not grant a certificate author- 
izing such corporation to commence business ; and it shall not com- 
mence business until such certificate has been granted. 



1 

2 
3 
4 
5 

7 

8 

9 

10 



Officers. 
1888, 413, § 3. 
1897, 304, § 2. 



Section 7. The officers of such corporation shall be sworn to the 1 

faithful performance of their duties and shall be a president, clerk 2 

or secretary, a board of not less than seven directors, a treasurer or 3 

actuary or both, and such other officers as may be prescribed by its 4 

by-laws. 5 



— how chosen, 
1888, 413, § 4. 



Section 8. The officers of such corporation, except the treas- 1 

urer and actuary, shall be chosen at its annual meeting. The treas- 2 

urer and actuary shall be appointed by the directors, shall hold their 3 

respective offices during the pleasure of the board of directors and 4 

shall give bond to the satisfaction of said board for the faithful per- 5 

formance of their duties. 6 



Directors. 
1888, 413, § 19. 



Section 9 . No person shall be a director in any such corporation 1 

unless he is a stockholder holding not less than ten shares of unpledged 2 

stock therein. A majority of the directors shall be citizens of and 3 

resident in this commonwealth and not more than one-third of the 4 

directors shall be directors in any other such corporation. 5 



By-laws. 
Quorum. 
1888, 413, § 5. 



Section 10. The corporation may adopt by-laws for the proper 1 

management of its affairs, may establish regulations controlling the 2 

assignment and transfer of its shares and may determine what num- 3 

ber of shares shall be represented at any meeting to constitute a 4 

quorum. If the quorum is not so determined, a majority in interest 5 

of the stockholders shall be a quorum. 6 



Chap. 116.] trust companies. 1111 

1 Section 11. The books of such corporation shall at all reason- Books open 

2 able times be open for inspection to the stockholders and to bene- i8^Mi3?f25. n ' 

3 ficiaries under any trust held by such corporation as hereinafter 

4 provided. • 



1 Section 12. Such corporation may receive on deposit, storage Deposits. 

2 or otherwise, money, government securities, stocks, bonds, coin, iiii| 42!) f il 

3 jewelry, plate, valuable papers and documents, evidences of debt, 

4 and other property of any kind, upon such terms or conditions as 

5 may be agreed upon, and at the request of the depositor may collect 

6 and disburse the interest or income, if any, upon said property 

7 received on deposit and collect and disburse the principal of such 

8 of said property as produces interest or income when it becomes 

9 due, upon terms to be prescribed by the corporation. Such deposits 

10 shall be general deposits, and may be made by corporations and 

11 persons acting individually or in any fiduciary capacity. Such cor- 

12 poration shall not give collateral or other security for a deposit of 

13 money received under the provisions of this section. 

1 Section 13. Such corporations may, subject to the limitations investment of 

2 of the following section, advance money or credits, whether capital isss, I13, § 6. 

3 or general deposits, on real property situated within this common- 1890 > 315 > § x - 

4 wealth and on personal security, on terms that may be agreed upon, 

5 and also invest its money or credits, whether capital or general 

6 deposits, in the stocks, bonds or other evidences of indebtedness 

7 of corporations. 

1 Section 14. No trust company shall advance money or credits Loans on farm 

2 upon notes secured by deed of trust or by mortgage upon farms or ^smiIj 1. 

3 agricultural or unimproved land outside of this commonwealth, 1889 > 342 - 

4 except upon land situated in the New England states or the state 

5 of New York, nor invest in nor make loans upon the bonds or 

6 other securities of a company negotiating or dealing in such notes 

7 so secured or in such mortgages. 

1 Section 15. No trust company shall as agent, buy, sell or Agent to buy, 

2 negotiate securities or evidences of debt on which said company 1896, 315, § 1. 

3 may not lawfully advance money or credits, nor as such agent 

4 buy, sell or negotiate evidences of debts secured exclusively by 

5 real estate under mortgage or deed of trust. 

1 Section 16. A court of law or equity, or a court of probate and ^Xoritjof 

2 insolvency of this commonwealth, may direct that money or prop- ^\^ 7> 

3 erty under its control, or which may be paid into court by parties 

4 to any legal proceedings, or which may be brought into court by 

5 reason of an order or judgment, be deposited with such corporation, 

6 upon such terms and subject to such instructions as the court may see § is. 

7 prescribe. Such corporation may also hold money or property in 

8 trust, or on deposit from executors, administrators, assignees, guar- 

9 dians and trustees, upon such terms and conditions as may be agreed 
10 upon. 

1 Section 17. Money or property received under the provisions -investment 

2 of the preceding section shall be loaned on or invested only in the 1*88,413, §7. 



1112 



TRUST COMPANIES. 



[Chap. 11(5. 



authorized loans of the United States, or any of the New England 3 

states, the counties, cities or towns thereof, or of the states of 4 

Illinois, Iowa, Michigan, Minnesota, Wisconsin, or the counties or 5 

cities thereof, or stocks of state or national banks organized within 6 

this commonwealth, or in the first mortgage bonds of a railroad cor- 7 

poration incorporated in any of the New England states and whose 8 

road is located wholly or in part in the same and which has earned 9 

and paid regular dividends on all its issues of capital stock for two 10 

years last preceding such loan or investment, or in the bonds of any 11 

such railroad company unencumbered by mortgage, or in first mort- 12 

gages on real estate in this commonwealth, or in any securities in 13 

which savings banks may invest, or upon notes with two sureties 14 

of domestic manufacturing corporations or of individuals with a sum- 15 

cient pledge as collateral of any of the aforesaid securities ; but all 16 

real estate acquired by foreclosure of mortgage or by levy of exe- 17 

cution shall be sold at public auction within two years after such 18 

foreclosure or levy. 19 

a^&ust&e 1611 * Section 18. Such corporation may be appointed executor of a 1 

1888° 413 \f~ 's wn l> codicil or writing testamentary, administrator with the will 2 

1899^ sis', §§ i, 2! annexed, administrator of the estate of any person, receiver, as- 3 

signee, guardian, or trustee under a will or instrument creating 4 

a trust for the care and management of property, under the same 5 

circumstances, in the same manner, and subject to the same control 6 

by the court having jurisdiction of the same, as a legally qualified 7 

person. Any such appointment as guardian shall apply to the 8 

estate and not to the person of the ward. Such corporation shall 9 

not be required to receive or hold property or money or assume or 10 

execute a trust under the provisions of this or of section sixteen 11 

without its assent. 12 



Capital stock 
as security. 
1888, 413, § 8. 
1899, 348, § 2. 



Section 19. The capital stock of such corporations, with the 1 

liabilities of the stockholders thereunder, shall be held as security 2 

for the faithful performance of the duties undertaken by virtue of 3 

sections sixteen and eighteen or of any similar provision of law, 4 

and, except as provided in section twenty-two, no surety shall be 5 

required upon the bonds filed by such corporation. 6 



powers! 3 etc C , i8e Section 20. No such corporation shall commence to exercise 1 

hied 88 author " the powers and duties described in sections sixteen to eighteen, in- 2 

i89K, - 423, §3. elusive, until it has received authority in writing therefor from the 3 

1899 348 § 5 

board of commissioners of savings banks, and said board may grant 4 

or refuse such authority after such investigation of the affairs of the 5 

corporation as it may consider expedient. 6 



Signing of 
returns, etc. 
Examination 
of officers. 
1888, 413, § 8. 
1899, 348, § 2. 



Section 21. In all proceedings in the probate court or else- 1 

where, connected with any authority exercised under the provisions 2 

of sections sixteen and eighteen, or under any similar provisions 3 

of law, all accounts, returns and other papers may be signed and 4 

sworn to, in behalf of the corporation, by any officer thereof duly 5 

authorized by it, and the answers and examinations under oath of 6 

said officer shall be received as the answers and examinations of the 7 

corporation. The court may order and compel an officer of such 8 

corporation to answer and attend said examination in the same 9 



Chap. 116.] trust companies. 1113 

10 manner as if he, instead of the corporation, were a party to the pro- 

11 ceeding. 

1 Section 22. The court making an appointment under the pro- Additional 

2 visions of section eighteen, except of a trustee, may, upon applica- isS^s,' § v £ en ' 

3 tion by an interested person, require the corporation so appointed 

4 to give such security, in addition to that provided by section nine- 

5 teen, as the court may consider proper, and upon failure of such 

6 corporation to give the security required, may revoke such appoint- 

7 ment and remove such corporation from the trust. 

1 Section 23. A person creating a trust may direct whether Disposition of 

2 money or property deposited under it shall be held and invested etc. st funds ' 

3 separately or invested in the general trust fund of the corporation ; 1888 ' 413 ' § 8- 

4 and such corporation acting as trustee shall be governed by direc- 

5 tions contained in a will or instrument under which it may act. 

1 Section 24. Money, property or securities received, invested ^nt* depart " 

2 or loaned under the provisions of sections sixteen to eighteen, in- x|||' |1|' | § s 7, 9 - 

3 elusive, shall be a special deposit in such corporation, and the 

4 accounts thereof shall be kept separate. Such funds and the invest- 

5 ment or loans thereof shall be specially appropriated to the security 

6 and payment of such deposits, shall not be mingled with the invest- 

7 ments of the capital stock or other money or property belonging 

8 to such corporation , or be liable for the debts or obligations thereof. 

9 For the purpose of this section, such corporation shall have a trust 
■10 department in which all business authorized by said sections sixteen 

11 to eighteen, inclusive, shall be kept separate and distinct from its 

12 general business. 

1 Section 25. The directors may from time to time set apart as a Trust guaranty 

2 trust guaranty fund such portion of the profits as they may consider im, m, § 10. 

3 expedient. Such fund shall be invested in such securities only as 

4 the trust deposits may be invested in. The accounts of its invest- 

5 ment and management, and the securities in which it is invested, shall 

6 be kept in the trust department. 

1 Section 26. The trust guaranty fund shall be absolutely pledged igsj^f^'ii^" 

2 for the faithful performance by the corporation of all its duties and 

3 undertakings under the provisions of sections sixteen to eighteen, 

4 inclusive, and shall be applied to make good any default in such per- 

5 formance, and such pledge and liability shall not in any way relieve 

6 the capital stock and general funds of the corporation, but creditors 

7 under said sections shall have an equal claim with other creditors 

8 upon the capital and other property of the corporation, in addition 

9 to the security hereby given. 

1 Section 27. No portion of such trust guaranty fund shall be - a ° B * ( *J*£ 

2 transferred to the general capital while the corporation has under- eta ^ ^ 

3 takings of the kind mentioned in sections sixteen and eighteen 

4 for whose performance bonds are required from individuals, out- 

5 standing uncompleted ; but its income, if not required at any divi- 

6 dend time to make good such deposits or undertakings, may be 

7 added to and disposed of with the general income of the corporation. 



1114 



TRUST COMPANIES. 



[Chap. 116. 



Amount of 
reserve. 
1888, 413, § 13. 
1900, 257. 



Guaranty 

fund. 

1896, 423, § 2. 



Liability of 
stockholders. 
1888, 413, § 14. 



— how en- 
forced. 
1892, 327. 



Section 28. Such corporation shall maintain as a reserve an 1 

amount equal to at least fifteen per cent of the amount of its deposits 2 

which are subject to withdrawal upon demand or within ten days. 3 

If said reserve is at any time less than said amount, the corporation 4 

shall not increase its liabilities by making new loans until said fifteen 5 

per cent shall have been restored. Such reserve shall consist of 6 

lawful money of the United States or, in place thereof, one-third of 7 

such reserve may consist of bonds of the United States or of this 8 

commonwealth, the absolute property of such corporation, and two- 9 

thirds of such reserve may consist of balances payable on demand 10 

due from a national bank doing business in this commonwealth or 11 

in the city of New York, or balances payable upon demand or within 12 

ten days from any domestic trust company doing business in this 13 

commonwealth which is approved for the purpose by the board of 14 

commissioners of savings banks and which has a reserve fund equal 15 

to fifteen per cent of the amount of its deposits subject to with- 16 

drawal on demand or within ten days and which consists of lawful 17 

money of the United States or, to the extent of one-third thereof, 18 

of balances payable on demand due from any national bank doing 19 

business in this commonwealth or in the city of New York. 20 

Section 29. Every such corporation chartered subsequent to the 1 

twenty-first day of May in the year eighteen hundred and ninety- 2 

six, after a deduction of all reasonable expenses and losses incurred 3 

during the year in the management thereof, shall annually set aside 4 

not less than ten per cent of its remaining earnings as a guaranty 5 

fund, until such fund amounts to twenty-five per cent of its capital, 6' 

which fund shall be invested in the same manner as deposits in 7 

savings banks may be invested. 8 

Section 30. The stockholders of such corporation shall be per- 1 

sonally liable, equally and ratably and not one for another, for all 2 

contracts, debts and engagements of the corporation, to the amount 3 

of their stock therein at the par value thereof, in addition to the 4 

amount invested in such shares. The provisions of sections sixty 5 

to sixty-eight, inclusive, of chapter one hundred and ten shall apply 6 

to and regulate the enforcement of such liability. 7 

Section 31. A trust company whose stockholders are liable 1 

under the provisions of the preceding section and whose capital 2 

stock shall, in the opinion of the board of commissioners of savings 3 

banks, have become impaired by losses or otherwise, shall, within 4 

three months after receiving notice from said board, pay the defi- 5 

ciency in the capital stock by assessment upon the stockholders 6 

pro rata to the shares held by each. If such corporation shall fail 7 

to pay such deficiency in its capital stock for three months after 8 

receiving such notice, the board may apply to the supreme judicial 9 

court for an injunction, as provided in section six of chapter one 10 

hundred and thirteen ; and if a stockholder of such corporation shall 11 

neglect or refuse, after three months' notice, to pay the assessment as 12 

provided in this section, the board of directors shall cause an amount 13 

of his stock sufficient to make good his assessment to be sold by 14 

public auction, after thirty days' notice given by posting such notice 15 

in the office of the corporation and by publishing it in a newspaper 16 






Chap. 116.] trust companies. 1115 

17 of the city or town in which the corporation is located or in a 

18 newspaper published nearest thereto ; and the balance, if any, shall 

19 be returned to such delinquent stockholder. The provisions of 

20 this section shall not take away the right of creditors to enforce 

21 the liability of stockholders in such corporations, as provided in 

22 the preceding section, nor increase the general liability of such 

23 stockholders. 

1 Section 32. Such corporation may act as agent for the purpose May act as 

2 of issuing, registering or countersigning the certificates of stock, l^ nt ' truBtee ' 

3 bonds or other evidences of indebtedness of a corporation, associa- 1888 ' 413> § 15, 

4 tion, municipal corporation, state or national government, on such 

5 terms as may be agreed upon, and may also act as trustee or finan- 

6 cial or other agent for a person, association, municipal corporation 

7 or government, and in their behalf may negotiate loans and sell 

8 and negotiate the sale of securities, and may also act as trustee for 

9 the bondholders of a corporation, and for such purpose may receive 

10 transfers of real and personal property upon such terms as may be 

11 agreed upon. 

1 Section 33. No such corporation shall make a loan or discount Loans on 

2 on the security of the shares of its own capital stock, nor be the itai stock, etc! 

3 purchaser or holder of such shares, unless such security or purchase ' 

4 shall be necessary to prevent loss upon a debt previously contracted 

5 in good faith ; and stock so purchased or acquired shall, within six 

6 months after its purchase, be sold or disposed of at public or private 

7 sale. 

1 Section 34. The total liabilities of a person, other than cities Liability of 

2 or towns, for money borrowed, including in the liabilities of a son, etc. per * 

3 firm the liabilities of its several members, to such corporations hav- {^ %Hi § 17, 

4 ing a capital stock of five hundred thousand dollars or more shall 

5 at no time exceed one-fifth part of the surplus" account and of such 

6 amount of the capital stock as is actually paid up, and to any other 

7 such corporation shall at no time exceed one-fifth of such amount 

8 of the capital stock of the corporation as is actually paid up ; but 

9 the discount of bills of exchange drawn in good faith against actually 

10 existing values, and the discount of commercial or business paper 

11 actually owned by the person negotiating it, shall not be considered 

12 as money borrowed. 

1 Section 35. Such corporation may hold real estate unen- May hold real 

2 cumbered by mortgage suitable for the transaction of its business ms, m, § 18. 

3 to an amount including the cost of alterations and additions in the im ' 2lL 

4 nature of permanent fixtures, not exceeding twenty-five per cent of 

5 its capital actually paid in, and in no case to exceed two hundred 

6 and fifty thousand dollars ; but the provisions of this section shall 

7 not require such corporation to change an investment legally made 

8 prior to the eighteenth day of April in the year eighteen hundred 

9 and ninety-four. 

1 Section 36. Such corporation shall annually, within ten days Returns to 

2 after the last business day of October, and at such other times as the offings 11 " 8 

3 board of commissioners of savings banks may require, but not exceed- is£f Sis, § 26. 



1116 



TRUST COMPANIES. 



[Chap. 116. 






ing four times within any calendar year, make a return to said board, 4 

signed and sworn to by its president and secretary, treasurer or actu- 5 

ary and a majority of its board of directors, showing accurately the 6 

condition of such corporation at close of business on said day ; and 7 

said return shall specify the following : capital stock ; amount of all 8 

money and property in detail in the possession or charge of said 9 

corporation as deposits ; amount of deposits payable on demand or 10 

within ten days ; amount of trust guaranty fund ; trust funds or for 11 

purposes of investment ; number of depositors ; investments in 12 

authorized loans of the United States or any of the New England 13 

states, counties, cities or towns ; investments in bank stock, railroad 14 

stock and railroad bonds, stating amount in each ; loans on notes of 15 

corporations ; loans on notes of individuals ; loans on mortgages of 16 

real estate ; cash on hand, rate, amount and date of dividends since 17 

last return, and such other information as the board of commissioners 18 

of savings banks may require. Such return shall be in the form of 19 

a trial balance of its books and shall specify the different kinds of 20 

its liabilities and assets, with the amount of each kind, in accord- 21 

ance with a blank form to be furnished by said board and shall be 22 

published by and at the expense of such corporation in a newspaper 23 

of the city or town in which such corporation is located, at such 24 

times and in such manner as may be directed by said board, and 25 

in the annual report of said board. 26 



Examination 
by commis- 
sioners of 
savings banks. 
1888, 413, § 26. 
1899, 348, § 6. 



Section 37. The board of commissioners of savings banks shall 
have access to the vaults, books and papers of the corporation, and 
shall inspect, examine and inquire into its affairs and take proceed- 



ings 



in regard to it in the same manner and to the same extent as 



if it were a savings bank ; and may make, or cause to be made by 
an expert at the expense of the corporation, such further examina- 
tion of a corporation exercising the powers conferred by the pro- 
visions of section eighteen as it may consider necessary, and shall, 
when ordered by any court of competent jurisdiction, make an 
examination or cause it to be made. 



1 
2 
3 
4 
5 
6 
7 
8 
9 
10 



Proceedings 
if rent of 



paid 

1887, 89. 






Section 38. If the amount due for the rent or use of a box 1 

boxes, etc., not r safe in the vaults of a domestic corporation organized for the 2 

purpose of letting vaults, safes and other receptacles shall not have 3 

been paid for two years, such corporation may cause to be mailed, 4 

postpaid, to the person in whose name such safe or box stands upon 5 

the books of such corporation and at his address as stated on said 6 

books, a notice stating that if the amount then due for the use or 7 

rent of such safe or box shall not be paid within sixty da,js from 8 

the date of such notice such corporation will cause such safe or box 9 

to be opened in the presence of its president, treasurer or super- 10 

intendent and of a notary public, and the contents thereof, if any, 11 

to be sealed up in a package and placed in one of the storage vaults 12 

of such corporation. If, upon the expiration of said sixty days 13 

from the date of such notice, such person shall have failed to pay 14 

the amount due for the use or rent of such safe or box in full to the 15 

date of such notice, all right of such person in such safe or box 16 

and of access thereto shall cease, and such corporation may in the 17 

presence of its president, treasurer or superintendent and of a notary 18 

public not an officer or in the general employ of such corporation, 19 



Chap. 117.] mortgage loan and investment companies. 1117 

20 cause such safe or box to be opened, and such notary public shall 

21 remove the contents thereof, make a list of the same and* shall seal 

22 up such contents in a package and shall mark thereon the name of 

23 the person in whose name such safe or box stood on the books of 

24 such corporation and his address as stated on said books, and such 

25 package shall in the presence of said notary public and of said 

26 president, treasurer or superintendent be placed in one of the 

27 storage vaults of such corporation ; and the proceedings of such 

28 notary public, including said list of the contents of said safe or box 

29 and his estimate of the total value of said contents, shall be set 

30 forth bv him in his own handwriting and under his official seal in a 

31 book to be kept by such corporation for the purpose. The officer 

32 of such corporation who sent said written notice shall in the same 

33 book state his proceedings relative thereto, setting forth a copy of 

34 said notice. Both of said statements shall be sworn to by such 

35 notary public and officer, respectively, before a justice of the peace, 

36 who shall make certificate thereof in said book ; and said written 

37 statements shall be prima facie evidence of the facts therein set 

38 forth in all proceedings at law and in equity wherein evidence of 

39 such facts would be competent. The provisions of this section 

40 shall not impair any right relative to such safes, boxes or their 

41 contents which such corporation would otherwise have. 



CHAPTER 117. 

of mortgage loan and investment companies. 

1 Section 1. Every corporation chartered in this commonwealth £°y e e s reand 

2 for the special purpose of negotiating or making loans of money isss, 387, § i. 

3 secured by deed of trust or mortgage of real estate situated outside 

4 of this commonwealth shall be subject to the provisions of this 

5 chapter. Such corporations chartered prior to the twenty-second 

6 day of May in the year eighteen hundred and eighty-eight shall, ex- 

7 cept where inconsistent with the provisions of this chapter, continue 

8 to exercise the powers and be subject to the duties set forth in their 

9 respective charters. 

1 Section 2. Such corporation may loan money secured by deed J^ms^ § 2 . 

2 of trust or mortgage of real estate not subject to a prior mortgage or 

3 encumbrance and situated in any state, other than this common- 

4 wealth, or territory of the United States to an amount not exceed- 

5 ing fifty per cent of the appraised value of said property. It may 

6 also hold, sell and assign the bonds, notes, mortgages and securities 

7 taken for such loans ; may guarantee the payment of the interest and 

8 principal of bonds, notes or other evidences of debt secured as afore- 

9 said, and may guarantee the title to the property securing such evi- 

10 dences of debt for the time such debt remains unpaid ; but the 

11 provisions of this chapter shall not authorize such corporations to 

12 engage in the business of title insurance. 

1 Section 3. Such corporation may purchase, hold, guarantee, May purchase, 

,, . ,i iiii j i £■ ± , i. sell and assign 

2 sell and assign notes or bonds, and the mortgages or deeds ot trust notes, etc. 

& ° c lsss, 387, §3. 



1118 



MOETGAGE LOAN AND INVESTMENT COMPANIES. [CHAP. 117. 



securing the same, or other papers securing a loan made in accord- 3 
ance with the provisions of the preceding section. 4 



Receipt of 

money for 

investment, 

etc. 

1888, 387, § 4. 



Foreclosure of 

mortgages, 

etc. 

1888, 387, § 5. 



Issue of de- 
bentures or 
bonds. 
1888, 387, § 6. 



Section 4. Such corporation may receive money for investment 1 

in the securities which it is by this chapter authorized to sell or issue, 2 

and may allow interest on such money from the time of its receipt 3 

to the time of its investment, at such rate as may be agreed upon ; 4 

may receive, care for, manage and sell stocks, bonds and evidences 5 

of debt, the avails of which are intended for investment as aforesaid. 6 

No such corporation shall receive money on deposit, except as here- 7 

inbefore provided, or engage in any form of banking or trust busi- 8 

ness except that permitted by the provisions of this chapter. 9 

Section 5. Such corporation may act as agent for the purpose 1 

of foreclosing mortgages and collecting claims arising by reason of 2 

any evidence of debt deposited with it under the provisions of the 3 

preceding section. It may purchase real estate at public auction 4 

sale thereof made by virtue of the power contained in any deed of 5 

trust or mortgage owned, held or guaranteed by it, or at private sale 6 

thereof made for the purpose of cancelling the debt secured by such 7 

deed of trust or mortgage, and may hold, sell, transfer and convey 8 

said property ; but real estate so purchased or acquired shall be sold 9 

within five years thereafter. 10 

Section 6. Such corporation may issue debentures or bonds, to 1 

secure the payment of which, it shall from time to time assign and 2 

transfer to trustees, none of whom shall be officers of the corpora- 3 

tion, or to a domestic trust company deeds of trust or mortgages of 4 

real estate on which loans have been made in accordance with the 5 

provisions of this chapter, to be held by such trustees or company 6 

in trust for the benefit of the holders of said debentures or bonds, 7 

whereupon such trustees or company shall indorse their or its certifi- 8 

cate of such fact upon debentures or bonds not exceeding in amount 9 

the face value of securities so transferred to them or it. 10 



Amount 
guaranteed 
limited. 
1888, 387, § 7. 



Section 7. The total amount of mortgages guaranteed and of 1 

debentures or bonds issued by such corporation shall at no time ex- 2 

ceed ten times the amount of its capital stock actually paid in and 3 

its surplus. 4 



Bonds, notes, 
etc., where 
payable. 

1888, 387, § 8. 



Section 8. Bonds, notes and other evidences of debt taken by 1 

such corporation for money loaned shall be payable to such corpora- 2 

tion at its principal place of business in this commonwealth, and 3 

shall pass by delivery, by transfer on the books of such corporation 4 

at said place of business, or by certificate of its transfer agent at 5 

such other place as it may appoint. No transfer except on the 6 

books of the corporation or by certificate of its transfer agent, shall 7 

be valid unless the last transfer shall have been to bearer. A com- 8 

plete record of such transfer by said transfer agents shall be for- 9 

warded to and kept at said place of business of such corporation. 10 



May hold real 
estate. 
1888, 387, § 9. 



Section 9. Such corporation may hold real estate in this com- 1 
mon wealth suitable for the transaction of its business, to an amount 2 
not exceeding twenty-five per cent of its capital actually paid in. 3 



Chap. 117.] mortgage loan and investment companies. 1119 

1 Section 10. No such corporation shall purchase or hold shares Holding its 

2 of its own capital stock, unless such purchase shall be necessary to stock Capital 

3 prevent loss upon a debt previously contracted in good faith ; and 1888, 387, § 10 - 

4 stock so purchased shall, within six months thereafter, be sold or 

5 disposed of at public or private sale. 

1 Section 11. The shareholders of such corporation shall be Liability of 

2 personally liable in the same manner and to the same extent as i888™^!1 e ii.' 

3 stockholders of manufacturing corporations are liable under the laws 

4 of this commonwealth. The provisions of sections sixty to sixty- 

5 eight, inclusive, of chapter one hundred and ten shall apply to and 

6 regulate the enforcement of such liability. 

1 Section 12. Such corporation shall set apart as a guaranty fund ^2i a d ranty 

2 an amount not less than five per cent of its paid in capital, and shall 1888, 387, § 12. 

3 thereafter annually add thereto not less than ten per cent of its net 

4 earnings, until such fund, with the accumulated interest thereon, 

5 shall be equal to not less than twenty-five per cent of its paid in 

6 capital. Said fund shall be invested in United States bonds, Eng- 

7 lish consols, first mortgage bonds of any railroad corporation which 

8 has paid a dividend on its stock for at least three years last pre- 

9 ceding the date of said investment, the legally authorized bonds 

10 for municipal purposes of any city of the United States of not less 

11 than thirty thousand inhabitants whose whole indebtedness does not 

12 exceed five per cent of its last assessed valuation, or in any securi- 

13 ties in which savings banks may invest their deposits. 

1 Section 13. The books of such corporation shall at all reason- Books to be 

2 able times be open for inspection to the stockholders and to holders Sspectkin. 

3 of bonds and debentures issued by such corporation, or of notes and 1888 > 387 ' § 13 - 

4 other evidences of debt guaranteed by it. 

1 Section 14. The board of commissioners of savings banks shall erToTslvfngs 

2 have access to the vaults, books and papers of such corporation, bants to have 

1 „ . . \ • ■ • i 'j /*• • t j 1 supervision. 

3 shall inspect, examine and inquire into its anairs and take pro- isss, 387, § 14. 

4 ceedings in regard to it at such tunes as it shall consider necessary, 

5 in the same manner and to the same extent as if such corporation 

6 were a savings bank, and said board may cause an examination to 

7 be made by an expert under its direction but at the expense of 

8 the corporation. 

1 Section 15. Such corporation shall annually, within ten days Returns. 

2 after the last business day of October, make a return to said board 1888, 387 ' § 

3 which shall be in the form of a trial balance of its books, and shall 

4 specify the different kinds of its liabilities and assets, stating the 

5 amount of each kind in accordance with a blank form to be furnished 

6 by said board ; and such returns shall be published in a newspaper 

7 of the city or town in which such corporation is located, at the ex- 

8 pense of such corporation, at such times and in such manner as 

9 may be directed by said board. Said board shall annually report 

10 to the general court such facts and statements relative to such cor- 

11 porations and in such form as they consider the public interest 

12 requires. 






1120 



INSURANCE. 



[Chap. 118. 



OHAPTEE 118. 

OF INSURANCE. 

Sections 1-3. — Definitions and Companies. 

Sections 4-17. — Insurance Commissioner. 

Sections 18-21. — Provisions Common to all Companies. 

Sections 22-28. — General Provisions for Massachusetts Companies. 

Sections 29-3 1 . — Organization . 

Sections 32-38. — Stock Companies . 

Sections 39-51. — Mutual Fire. 

Sections 52-55. — Mutual Marine and Mutual Fire and Marine. 

Sections 56-60. — Fire Insurance. 

Section 61. — Fidelity Insurance and Corporate Surety. 

Sections 62-64 . — Title Insurance. 

Sections 65-76. — Life Insurance. 

S ections 7 7-8 5 . — Foreign Companies . 

Section 86. — Lloyds. 

Sections 87-93 . — Agents and Brokers. 

Section 94. — Deposits. 

Section 95. — Receivers. 

Section 96. — Annual Statements. 

Sections 97-112. — Penalties. 



DEFINITIONS AND COMPANIES. 



Certain terms 
defined. 



" Company.' 1 
" Insurance 
company." 



*' Domestic." 
" Foreign." 



" Unearned 

premiums." 

" Reinsurance 

reserve." 

" Net value of 

policies." 

" Premium 

reserve." 

" Net assets." 



" Profits." 



Section 1. In this chapter, unless the context otherwise requires : 



1854, 453, § 30. 
1856, 252, § 55. 



G. S. 58, § 78. 
1873, 141, § 14. 



1878, 130, § 7. 
P. S. 119, § 1. 



1887, 214, § 1. 
1894, 522, § 1. 



"Company" or "insurance company" includes all corporations, 2 
associations, partnerships or individuals engaged as principals in 3 
the business of insurance. 4 

"Domestic" designates those companies incorporated or formed 5 
in this commonwealth, and "foreign", when used without limita- 6 
tion, includes all those formed by authority of any other state or 7 
government. 8 

' * Unearned premiums " and ' ' reinsurance reserve " and ' ' net value 9 
of policies" or "premium reserve" severally intend the liability of 10 
an insurance company upon its insurance contracts, other than accrued 11 
claims, computed by rules of valuation established by section eleven. 12 

"Net assets" means the funds of an insurance company avail- 13 
able for the payment of its obligations in this commonwealth, includ- 14 
ing, in the case of a mutual tire company, its deposit notes or other 15 
contingent funds, and, in the case of a mutual marine or mutual fire 16 
and marine company, its subscription fund and premium notes 17 
absolutely due, and also including uncollected and deferred pre- 18 
miums not more than three months due, on policies actually in force, 19 
after deducting from such funds all unpaid losses and claims, and 20 
claims for losses, and all other debts and liabilities inclusive of 21 
policy liability and exclusive of capital. 22 

"Profits" of a mutual insurance company means that portion 23 
of its cash funds not required for payment of losses and expenses 24 
nor set apart for any purpose allowed by law. 25 



Chap. 118.] insurance. 1121 

1 Section 2. All insurance companies now or hereafter incorpo- companies 

2 rated or formed by authority of any general or special law of this chapter! 

3 commonwealth, except as provided in chapters one hundred and ?l^ P H7° n § |'i 2 . 

4 nineteen and one hundred and twenty, shall be subject to the pro- ^' 5 f' fsl' § | i' ^ 4 " 

5 visions of this chapter. g. s. 58, § 12. 1872, 375, § 1. 1873, 167, § 1. ] 85i '> 453 > § i. 

P. S. 119, §§ 22, 25. 1887, 214, §2. 1894, 522, § 2. 170 Mass. 224. 172 Mass. 278. 1856, 252, § 1. 

1 Section 3. A contract of insurance is an agreement by which definition of 

_ . . . . ~ j insurance. 

2 one party lor a consideration promises to pay money or its equiva- J 88 ]. 21 *. § 3- 

3 lent or to do an act valuable to the assured upon the destruction, 1897)66.' 

4 loss or injury of something in which the other party has an interest, i6o Mall' 413.' 

5 and it shall be unlawful for a company to make a contract of 175 Mass." 154.' 

6 insurance upon or relative to any property or interests or lives in \}^i \itklt 

7 this commonwealth, or with any resident thereof, or for any person 544 -^ 

8 as insurance agent or insurance broker to make, negotiate, solicit 

9 or in any manner aid in the transaction of such insurance, except as 

10 authorized by the provisions of this chapter or chapters one hundred 

11 and nineteen and one hundred and twenty. All contracts of insur- 

12 ance on property, lives or interests in this commonwealth shall be 

13 deemed to be made therein. 



INSURANCE COMMISSIONER. 

1 Section 4. There shall be an insurance commissioner for the insurance 

2 commonwealth, appointed by the governor, with the advice and con- S,™^^' 

3 sent of the council, who shall hold his office for the term of three i854, § 453, § 42. 

4 years from the date of his commission and until his successor is i 8 55, 124, §§ 1, 

5 appointed and qualified. He may be removed by the governor. ^ 5 |. ^ 7, JJ- n 

6 He shall give bond with sureties in the sum often thousand dollars, i866,"255. 

7 to be approved by the treasurer and receiver general, for the faithful 1876) 210) § 1.' 

8 performance of his duties, and shall receive in full compensation for p.'s.i°i9,§2. 

9 his services an annual salary of thirty-five hundred dollars. llool 2I7! § 4 * 

1894) 522] § 4. 

1 Section 5. The commissioner may, with the approval of the —deputy, etc. 

2 governor and council, appoint, and with their consent remove, a \m, 255,' § 2. 

3 deputy commissioner to assist him in his duties, who shall receive ^'f 1 !. 7 ' § 3; 

4 an annual salary of twenty-five hundred dollars, and an "examiner, ifff; f|f ; § 6 . 

5 who shall receive an annual salary of two thousand dollars. In case i|7|! 374! ^ 

6 of a vacancy in the office of commissioner or during the absence or 1877) 203! 

7 disability of that officer, the deputy commissioner shall perform the r.'s'. ii9,§§2U) 

8 duties of the office. The commissioner may employ in his depart- 1887)214; §5. 

9 ment an actuary with an annual salary of two thousand dollars, ^94) 522, § 5. 

10 a chief clerk with an annual salary of two thousand dollars, a \lw',tlh. 

11 second clerk with an annual salary of fifteen hundred dollars, a third is98)54. 

12 clerk with an annual salary of twelve hundred dollars, and such 

13 additional clerks and assistants as the public business in his charge 

14 may require, at an expense not to exceed such amount as the general 

15 court may appropriate each year. He shall transmit forthwith to 

16 each register of probate and insolvency the names of all corporate 

17 surety companies which become qualified or cease to be qualified to 

18 do business in this commonwealth. 



1 Section 6. Before granting certificates of authority to an insur- Examination 

„ . ° .. . ° 1 j. j_ .? • ±1 of companies 

2 ance company to issue policies or make contracts 01 insurance the aB to quaiiflca. 



tions, etc. 



1122 



INSURANCE. 



[Chap. 118. 



1871, 297, § 5. 
P. S. 119, § 5. 
1887, 214, § 6. 
1894, 522, § 6. 
1897, 67, § 1. 



Examination 
of domestic 
companies. 
1855, 124, §§ 5, 7. 
1858, 177, § 2. 
G. S. 58, § 2. 
1871, 297, § 1. 
P. S. 119, § 6. 
18S3, 235. 



— of foreign 
companies. 
1871, 297, § 2. 
P. S. 119, § 7. 



— of books, 
papers, etc. 

1855, 124, §§ 5, 6. 

1856, 252, § 53. 
G.S.58,§§2,3,5. 
1871, 297, $ 3. 
P. S. 119, §§ 8, 
10. 



commissioner shall be satisfied, by such examination as he may 3 

make and such evidence as he may require, that such company is 4 

otherwise duly qualified under the laws of this commonwealth to 5 

transact business herein. 6 

At least once in each three years and whenever he determines it 7 

to be prudent he shall personally or by his deputy, examiner, or 8 

chief clerk, visit each domestic insurance company, and thoroughly 9 

inspect and examine its affairs to ascertain its financial condition, 10 

its ability to fulfil its obligations and whether it has complied with 11 

the provisions of law. He shall also make such examination upon 12 

the request of five or more of the stockholders, creditors, policy 13 

holders or persons pecuniarily interested therein who shall make 14 

affi davit of their belief, with specifications of their reasons therefor, 15 

that such company is in an unsound condition. 16 

When he determines it to be prudent for the protection of 17 

policy holders in this commonwealth, he shall in like manner visit 18 

and examine or cause to be visited and examined by some com- 19 

petent person or persons whom he may appoint for that purpose 20 

any foreign insurance company applying for admission or already 21 

admitted to do business by agencies in this commonwealth, and 22 

such company shall pay the proper charges incurred in such exami- 23 

nation, including the expenses of the commissioner or his deputy 24 

and the expenses and compensation of his assistants employed 25 

therein. 26 

For the purposes aforesaid the commissioner or his deputy or the 27 

person making the examination shall have free access to all the 28 

books and papers of an insurance company which relate to its busi- 29 

ness, and to the books and papers kept by any of its agents, and 30 

may summon and administer the oath to and examine as witnesses 31 

the directors, officers, agents and trustees of any such company, 32 

and any other persons, relative to its affairs, transactions and con- 33 

dition. 34 



Suspension of 
authority of 
foreign com- 
panies to do 
business, etc. 
1871, 297, § 4. 
P. S. 119, § 13. 
1887, 214, § 7. 
1890, 304. 
1894, 522, § 7. 
155 Mass. 404. 
166 Mass. 238. 
171 Mass. 81. 



Section 7. If the commissioner is of opinion upon examination 1 

or other evidence that a foreign insurance company is in an unsound 2 

condition, that it has failed to comply with the law, or that its actual 3 

funds exclusive of its capital, if it is a life insurance company, are 4 

less than its liabilities, or if its officers or agents refuse to submit to 5 

examination or to perform any legal obligation relative thereto, 6 

he shall revoke or suspend all certificates of authority granted to 7 

said foreign insurance company, its officers or agents, and shall 8 

cause notices. thereof to be published in the newspaper in which the 9 

general laws are published, and no new business shall thereafter be 10 

done by it or its agents in this commonwealth while such default or 11 

disability continues, nor until its authority to do business is restored 12 

by the commissioner. Unless the ground for revocation or suspen- 13 

sion relates only to the financial condition or soundness of the 14 

company, or to a deficiency in its assets, he shall, except as provided 15 

in section twenty, notify the company not less than ten days before 16 

revoking its authority to do business in this commonwealth ; and 17 

he shall specify in the notice the particulars of the alleged violation 18 

of law. The supreme judicial court upon petition of said company, 19 

brought within the ten days aforesaid, shall summarily hear and 20 

determine the question whether such violation has been committed, 21 



Chap. 118.] insurance. 1123 

22 and shall make any appropriate order or decree therein. If the 

23 order or decree is adverse to the petitioning company, an appeal 

24 therefrom may be taken to the full court; and in case of such 

25 appeal the commissioner may revoke the right of said petitioning 

26 company to do business in this commonwealth until the final de- 

27 termination of the question by the full court aforesaid. 

28 If, upon examination, he is of opinion that any domestic insurance Application 

29 company is insolvent, or has exceeded its powers, or has failed to ls^^fs 011 ' 

30 comply with any provision of law, or that its condition is such as to isef.'ifi § H5. 

31 render its further proceedings hazardous to the public or to its policy Jjjj^> f^> f ^ 

32 holders, he shall apply to the supreme judicial court, which shall J- s - us". §§ i*. 

33 have jurisdiction in equity of such application, for an injunction 

34 restraining it in whole or in part from further proceeding with its 

35 business. The court may issue an injunction forthwith and may, 

36 after a full hearing, make the injunction perpetual and may appoint 

37 agents or receivers to take possession of the property and effects 

38 of the company and to settle its affairs, subject to such rules and 

39 orders as the court may from time to time prescribe. 

1 Section 8. If it appears to him that the capital of a domestic Notice to make 

2 insurance company is impaired to the extent of one-fourth or more, fsw, 2i4f§t." 

3 on the basis fixed in section eleven, he shall notify the company 1894 * 522> § 8- 

4 that its capital is legally subject to be made good in the mode pro- 

5 vided by section thirty-five, and if such company shall not within 

6 three months after such notice satisfy him that it has fully made 

7 good its capital, or reduced it, as provided in section thirty-seven, 
■8 he shall institute proceedings against it in accordance with the 
9 provisions of the preceding section. 

1 Section 9. If the actual funds of a domestic life insurance -to cease 

2 company, exclusive of its capital, are not of a net cash value equal when 688 ' 

3 to its liabilities, including the net value of its policies computed by pfl.iit, §155. 

4 the rule of valuation established by section eleven, he shall notify ilU; |||; 1 1; 

5 such company and its agents to issue no new policies until its funds 

6 become equal to its liabilities. 

1 Section 10. If upon examination or other evidence exhibited to Report of vk>. 

„,.,./... ,1, . /r> lations of law. 

2 him he is of opinion that any insurance company, or an officer or i 855( 124, §§ 9, 

3 agent thereof, has violated any provision of this chapter, he shall g°; 8< 68| § 8- 

4 report the facts to the attorney general, who shall cause such com- p 8 "'. 119, §16. 

5 pany, officer or agent to be prosecuted therefor. illl' III,' 1 10" 

1 Section 11. He shall each year compute the reserve liability on valuation of 

2 the thirty-first day of December of the preceding year of every companies l 

3 company authorized to make insurance on lives in this common- i^rnf § 2. 

4 wealth, in accordance with the rules following : — f>- §; n9,Vi7. 

5 First, The net value on the last day of December of the preced- JfgjgJJg; 

6 ing year of all outstanding policies of life insurance in the company Jf^];^ 1 ; 

7 issued before the first day" of January in the year nineteen hundred W] ' 

8 and one shall be computed upon the basis of the ' ' Combined Ex- 

9 perience" or "Actuaries' Table" of mortality, with interest at four 

10 per cent per annum. 

11 Second, The net value on the last day of December of the pre- 

12 ceding year of all outstanding policies of life insurance issued after 






1124: INSURANCE. [CHAP. 118. 

the thirty-first day of December in the year nineteen hundred shall 13 

be computed upon the basis of the "American Experience Table" 14 

of mortality, with interest at three and one-half per cent per annum ; 15 

but any such life insurance company may at any time elect to reserve 16 

upon a three per cent basis, and thereupon its policies issued upon 17 

such reserve shall be computed upon the basis of the "American 18 

Experience Table" of mortality, with interest at three per cent per 19 

annum. 20 

Third, In every case in which the actual premium charged for an 21 

insurance is less than the net premium for such insurance, computed 22 

according to its respective tables of mortality and rate of interest 23 

aforesaid, the company shall also be charged with the value of an 24 

annuity, the amount of which shall equal the difference between the 25 

premium charged and that required by the rules above stated, and 26 

the term of which in years shall equal the number of future annual 27 

payments due on the insurance at the date of the valuation. 28 

Fourth, The aggregate net value so ascertained of all the policies 29 

of any such company shall be deemed its reserve liability, to provide 30 

for which it shall hold funds in secure investments of an amount 31 

equal to such net value above all its other liabilities. 32 

wmfra 8 ™ s ent -^ policies or certificates of insurance issued before the first day 33 

1899, 229, §§4, 5. f July in the year eighteen hundred and ninety-nine by corpora- 34 

tions which formerly transacted a life insurance business under the 35 

provisions of chapter four hundred and twenty-one of the acts of the 36 

year eighteen hundred and ninety and acts in amendment thereof, 37 

and which now have authority to do business in this commonwealth 38 

under the provisions of this chapter, which policies or certificates 39 

are in force on the thirty-first day of December of any year and 40 

which contain a provision for a payment other than the premium 41 

stipulated therein and under which the duration of the premium 42 

payment is the same as the duration of the contract, except in 43 

endowment certificates and endowment policies, shall be valued and 44 

shall have a reserve maintained thereon on the basis of renewable term 45 

insurance as fixed by attained age in accordance with the provisions 46 

of this chapter. To the reserve liability determined as above the 47 

insurance commissioner shall add the determinate contract reserve 48 

under any other policies or certificates issued by said companies, 49 

before said first day of July and remaining in force on the thirty- 50 

first day of December of any year, and in the absence of such con- 51 

tract reserve shall value them as contracts providing similar benefits 52 

are to be valued under the provisions of this chapter. But under 53 

no policy or certificate shall a greater aggregate reserve liability be 54 

charged than is otherwise required by this chapter. All policies 55 

of life insurance issued by any such corporation subsequent to the 56 

first day of July in the year eighteen hundred and ninety-nine, in- 57 

eluding those which contain a provision for a payment other than 58 

the premiums specified therein, shall be valued and a reserve main- 59 

tained thereon according to the provisions of this chapter, but all 60 

such policies issued by said former assessment corporations prior to 61 

the first day of January in the year nineteen hundred and three, 62 

shall be valued taking the first year as one-year- term insurance. 63 

computation To determine the liability upon its contracts of insurance of an 64 

ot reserves tor * A 

reinsurance or insurance company, other than life and real estate title insurance, 65 

policy liability. r J 



Chap. 118.] insurance. 1125 

66 and the amount such company shall hold as a reserve for reinsur- 1874, ios. 

67 ance, he may take fifty per cent or the actual unearned portion of p 8 s'. 3 ii9, § n. 

68 the premiums written in its policies ; but in respect to marine risks Jggf' J^; 

69 he shall compute the liability thereon by charging sixty per cent of 

70 the amount of premiums written in its policies upon yearly risks, 

71 and upon risks covering more than one passage not terminated, and 

72 the full amount of premiums written in policies upon all other 

73 marine risks not terminated ; but in the case of foreign fire and 

74 marine insurance companies with less than three hundred thousand 

75 dollars capital, admitted to transact fire insurance only in this com- 

76 monwealth, the full amount of premiums written in their marine and 

77 inland navigation and transportation insurance policies shall be 

78 charged as liability. 

79 He shall allow to the credit of an insurance company in the what assets 

80 account of its financial condition only such assets as are immediately admi881ble - 

81 available for the payment of losses in this commonwealth, but may 

82 credit any deposits or funds of the company set apart as security 

83 for a particular liability in set-off to the amount charged on account 

84 of such liability. 

85 He shall not allow stockholders' obligations of any description as stockholders' 

86 part of the assets or capital of any stock insurance company, unless cap^ailwhen? 

87 the same are secured by sufficient approved collateral, p. s. 119, §64. 18 72, 325, § 3. 

1 Section 12. He shall, upon application, examine the proceed- o^^eedln^s 

2 ings of domestic companies to increase or reduce their capital stock, for increase .or 

3 and, if found conformable to law, shall indorse certificates thereof, capital. 

4 and shall issue certificates of authority to such companies to trans- i878| 35! § 3. 

5 act business upon such increased or reduced capital. p. s. 119, §§ 67, 

1887, 214, § 12. 1894, 522, § 12. 

1 Section 13. He, his deputy or examiner shall annually, or — <3i accounts 

an. ,i , j i i- /» it of receivers of 

2 oftener, examine the accounts and transactions of all receivers insolvent com- 

3 of insolvent insurance companies ; and shall also carefully examine ?8m!308?§§i,3. 

4 all accounts of such receivers referred to him under the provisions pJt.ukff^ies, 

5 of section ninety-five, and make report thereof to the court. isct, 214, § 13. 

1894, 522, § 13. 1898, 53. 

6 For the above purposes he, his deputy or examiner shall have insurance 

7 free access to the official books and papers of such receivers relative may examine 

8 to their transactions, and may examine such receivers under oath i876,83,§'3. 

9 as to all matters connected therewith. Pl S- 119 ' § 17L 

10 If in his opinion a receiver has violated his duty in office, or Notice to court 

11 further proceedings bv receivers to collect an assessment will not oi receivers. 

12 offer substantial relief to creditors, the commissioner shall certify mn', 83, §4. " 

13 the facts to the court having jurisdiction of the proceedings. p. s. 119, § 172. 

1 Section 14. He shall perform the duties required by the pro- Attorney for 

2 visions of section five of chapter one hundred and twenty-six. panies. 

P. S. 119, § 203. 1887, 214, § 14. 1894, 522, § 14. 132 Mass. 432. 1879^ 14! § 2 ' 

1 Section 15. He shall collect and pay into the treasury charges collection, etc., 

2 and fees as follows : for valuation of life policies, two and one-half charges and 

3 mills for each thousand dollars of insurance ; for each examination <£?!'. 58( § 64. 



1126 



INSURANCE. 



[Chap. 118. 



1867, 267, § 6. 

1870, 349, § 8. 

1871, 297, § 5. 
1878, 35, § 4; 
36, § 2. 

P. S. 119, §§ 5, 
18, 71, 157, 203. 
1884, 55. 
1887, 214, §§ 15, 
24,71. 

1894, 19; 522, 
§§ 15, 24, 71. 
1897, 67, § 2. 



of a domestic company's qualification to transact business, thirty 4 

dollars ; for filing copy of charter or deed of settlement of each 5 

foreign company, thirty dollars, and for filing statement with appli- 6 

cation for admission and for each annual statement, twenty dollars ; 7 

for each license to procure fire insurance in unauthorized foreign 8 

companies, twenty dollars annually; for each license to an insur- 9 

ance broker, ten dollars ; for each license or renewal thereof to an 10 

insurance agent, two dollars ; for each certificate of the valuation of 11 

the policies of any life insurance company and for each certificate 12 

of the examination, condition or qualification of an insurance com- 13 

pany, two dollars ; for each service of lawful process upon him as 14 

attorney, two dollars ; for each copy of any paper on file in his 15 

office, twelve cents a page and one dollar for certifying the same ; 16 

and all other fees and charges due and payable into the treasury for 17 

any official act or service of the commissioner. 18 



Blanks for 
annual state- 
ments. 
1837, 192, § 4. 
1833, 178, § 3. 
1849, 104, § 6. 
1856, 252, § 8. 
1858, 170, § 2. 



Section 16. He shall annually, in December, furnish to each 1 

of the insurance companies authorized to do business in this com- 2 

monwealth two or more blanks in form adapted for their annual 3 

statements. g. s. 58, §7. p. s. 119, §19. i883, 33, §3. 1887, 214, § 16. 4 

1888, 199, § 3. 1889, 451, § 8. 1894, 522, § 16. 1897, 65. 



Kecord of 
proceedings. 
1855, 124, § 3. 
G. S. 58, § 9. 
P. S. 119, § 20. 



Annual report 
to legislature. 
1837. 192, § 5. 
1852, 227, §4; 
231, § 5; 311, 
§14. 

1854, 453, § 42. 

1855, 124, § 9. 

1856, 252, §§ 8, 
56. 

1857, 40, § 8. 

1858, 177, § 2. 
G. S. 58, § 10. 
1867, 267, § 9. 
P. S. 119, § 21. 



Section 17. He shall preserve in a permanent form a record of 1 
his proceedings, including a concise statement of the result of official 2 
examinations of insurance companies. 3 



1887, 214, § 17. 



1894, 522, § 17. 



He shall annually, and as early as is consistent with full and 
accurate preparation, make a report to the general court of his 
official transactions, and shall include in such report a statement of 
the receipts and expenditures of his department for the preceding 
year ; a report of the condition of the receiverships of insolvent 
companies ; an exhibit of the financial condition and business trans- 
actions of the several insurance companies as disclosed by official 
examinations of the same or by their annual statements, abstracts 
of which statements, with his valuation of life policies, shall appear 
therein ; and such other information and comments relative to in- 
surance and the public interest therein, as he thinks proper. 



4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 



To act in cor- 
porate name 
only. 

1853, 333, § 1. 

1854, 453, § 8. 
1856, 252, § 5. 
G. S. 58, § 24. 



Liabilities to 

be published 

with assets, 

etc. 

1878, 87, §1. 

P. S. 119, § 179. 



PROVISIONS COMMON TO ALL COMPANIES. 

Section 18. Every insurance company, foreign or domestic, shall 1 

conduct its business in this commonwealth in the name by which it 2 

is incorporated, and the policies and contracts of insurance issued 3 

by it shall be headed or entitled only by such name. 4 

P. S. 119, § 178. 1887, 214, § 18. 1894, 522, § 18. 

When any such company publishes its assets it shall in the same 5 

connection and with equal conspicuousness publish its liabilities 6 

computed on the basis allowed for its annual statements, and any 7 

publication purporting to show its capital shall exhibit only the 8 

amount of such capital as has been actually paid in cash. Such 9 

publications shall be held to include all policies, renewals, signs, 10 

circulars, cards or other means by which public announcements are 11 

made. 12 



Chap. 118.] insurance. 1127 

1 Section 19. Every such company shall be liable to taxation by Taxation. 

2 any general law taxing insurance companies and it shall by its assessment"©! 

3 proper officers make to the tax commissioner or other officer of the w£ t % 5> § 7i 

4 commonwealth such returns and statements of its business and if|' ] 3 f ' § § § \ 3 2 - 

5 affairs as the law may require for the purpose of assessment of such 3^ ' 

6 taxes and thereupon its officers and agents may be examined under iss^ 453; § is! 

1856 252 S 7 

7 oath by the officer to whom such returns are to be made. 

G. S. 58, § 19. 1872, 325, § 5. 1887, 214, § 19. 

1871, 297, § 7. P. S. 119, § 45. 1894, 522, § 19. 

8 It shall, upon receiving notice of loss by fire upon property in Return to Are 

9 this commonwealth on which it is liable under a policy of insur- J^ng." 

10 ance, forthwith notify the state fire marshal thereof, and no insur- 

11 ance upon any such property shall be paid by any company until 

12 one week after it has notified said fire marshal. 

1 Section 20. If a company authorized to transact the business swom report 

2 of insurance in this commonwealth directly or indirectly contracts ^reinsurance, 

3 for or effects any reinsurance of any risk or part thereof taken pJI'.nl' §i 52 , 

4 by it, it shall make a sworn report thereof to the insurance com- ^||> ^ i- 

5 missioner at the time of filing its annual statement or at such other 1887^ 214, § 20. 

6 time as he may request; and such reinsurance, except so far as it is 1892U7.' 

1 RQ4. 1 Q*7 ST* 

7 in companies authorized to do business in this commonwealth, shall 522, §20. ' 

8 not reduce the reserve required of it or the taxes to be paid by it. 1895 ' 59, § 1- 

9 No insurance company shall insure in a single risk a larger amount Limit of single 

10 than one-tenth of its net assets ; but a mutual boiler insurance com- 1817,' 120, § 7. 

11 pany of this commonwealth may insure in a single risk an amount r. s. 37,"§2i. 

12 not exceeding one-fourth of its net assets. i856| 252,' f 15. 

G. S. 58, § 32. P. S. 119, § 56. [1 Op. A. G. 25, 315.] 

13 Every fire insurance company admitted to do business in this Report of 

14 commonwealth shall annually and at such other times as the insur- ^company? 7 

15 ance commissioner may require, in addition to all returns now by 1898> 537, § L 

16 law required of it or its agents or managers, make a return to the 

17 insurance commissioner in such form and detail as may be pre- 

18 scribed by him, of all reinsurance contracted for or effected by it, 

19 directly or indirectly, upon property located in this commonwealth, 

20 such return to be certified by the oath of its president and secretary 

21 if a company of one of the United States, and, if a company of a 

22 foreign country, by its president and secretary or by officers corre- 

23 sponding thereto as to reinsurance as aforesaid contracted for or 

24 effected through the foreign office, and by the United States man- 

25 ager, as to such reinsurance effected by the United States branch. 

26 If a company directly or indirectly reinsures a risk taken by it 

27 on any property located in this commonwealth in a company not 

28 duly authorized to transact business herein, or if it refuses or 

29 neglects to make the returns required by this chapter, the insurance 

30 commissioner may revoke its authority to transact business in this 

31 commonwealth ; but any company authorized to do business in this 

32 commonwealth may insure and have full authority to reinsure in 

33 unauthorized companies any property located in this commonwealth 

34 in respect to which an affidavit has been filed within the twelve 

35 months last preceding in accordance with the provisions of section 

36 eighty-three, in which case the restrictive provision of this section 

37 as to the amount which may be insured in a single risk shall not 

38 apply. 



1128 



INSURANCE. 



[Chap. 118. 



Limit of risk 
by marine 
company. 
1898, 537, § 3. 
[1 Op. A. G. 
573.] 



An insurance company authorized to do marine business in this 39 

commonwealth may take any risk if it reinsures the same, if 40 

necessary, so that it does not retain for itself an amount of the 41 

risk exceeding ten per cent of its capital and surplus wherever 42 

they may be, and if it also places such reinsurance, if possible, at 43 

the time and at not over the original rate, with companies author- 44 

ized to do marine insurance in this commonwealth ; any amount in 45 

excess of what can be so placed may be reinsured with other com- 46 

panies, if the company or agent who procures said risk files an 47 

affidavit to that effect with the insurance commissioner, at such 48 

time and in such form as may be prescribed by him. 49 



Misrepresen- 
tation by as- 
sured not to 
avoid policy, 
unless, etc. 
1878, 157. 
P. S. 119, § 181. 
1887, 214, § 21. 

1894, 522, § 21. 

1895, 271. 

145 Mass. 426. 



Section 21. No oral or written misrepresentation or warranty 1 

made in the negotiation of a contract or policy of insurance by the 2 

assured or in his behalf shall be deemed material or defeat or avoid 3 

the policy or prevent its attaching unless such misrepresentation or 4 

warranty is made with actual intent to deceive or unless the matter 5 

misrepresented or made a warranty increased the risk of loss. 6 



159 Mass. 514. 
163 Mass. 108, 117. 



164 Mass. 448. 
167 Mass. 109. 



170 Mass. 224, 27 
172 Mass. 503. 



173 Mass. 197. 



Subject to 
general cor- 
poration law. 
P. S. 105, § 1. 
1887, 214, § 22. 
1894, 103; 522, 
§22. 



GENERAL PROVISIONS FOR MASSACHUSETTS COMPANIES. 

Section 22. The general provisions of law relative to the powers, 1 

duties and liabilities of corporations shall apply to all incorporated 2 

domestic insurance companies, so far as such provisions are pertinent 3 

and not in conflict with other provisions of law relative to such com- 4 

panies or with their charters. 5 



continuation Section 23. Domestic insurance companies incorporated by 

of corporation. K. . . f . i i, 

1875,34. ^ special acts, whose charters are subject to a limitation ot time, shall 
1887,' 2 14,' § 23." after such limitation expires continue to be bodies corporate, subject 
1894, 522, § 23. ^ ^ g enera j ] aws applicable to such companies. 



1 
2 
3 
4 



Domestic com- 
pany to obtain 
certificate 
before issuing 
policies. 
1871, 297, § 5. 
P. S. 119, § 5. 
1887, 214, § 24. 
1894, 522, § 24. 



Section 24. No domestic insurance company shall issue policies 1 

until upon examination by the commissioner, his deputy or examiner, 2 

it is found to have complied with the laws of the commonwealth, 3 

nor until it has obtained from the commissioner a certificate stating 4 

that fact and authorizing it to issue policies. 5 

1897, 67, §2. 122 Mass. 90. 



— may adopt 
by-laws, divide 
directors into 
classes, etc. 
1832, 95, § 5. 

R. S. 37, § 8. 
1854, 453, § 43. 
1856, 252, § 9. 
G. S. 58, § 16. 
P. S. 119, § 43. 
1887, 214, § 25. 
1894, 522, § 25. 

— secretary 
and treasurer 
of, to give 
bond. 

1856, 252, § 9. 

— call for 
meetings of. 
1856, 252, § 9. 



Section 25. Such company may adopt by-laws for the conduct 1 

of its business and therein may provide for the division of its board 2 

of directors into two, three or four classes, and the election thereof 3 

at its annual meetings in such manner that the members of one 4 

class only shall retire and their successors be chosen each year. 5 

Vacancies in any such class may be filled by election by the board 6 

for the unexpired term. 7 

The secretory and treasurer shall severally give bond with sureties 8 

in such sum as the directors may require for the faithful performance 9 

of their respective duties. g. s. 58, §17. p. s. 119, §41. 10 

All matters proposed to be acted upon at any meeting of the com- 11 

pany shall be specified in the call for the same. 12 



G. S. 58, § 15. 



P. S. 119, § 42. 



Chap. 118.] insurance. 1129 

13 All investments of the funds of the company shall be made in its Domestic com. 

14 corporate name, and no officer of the company and no member of a StVoMote 

15 committee thereof charged with the duty of investing its funds shall mm e rporate 

16 borrow the same or be directly or indirectly liable for or on account <ffs'.?8% § 20 5, 

17 of loans thereof to others; nor shall any director or other officer PS - n ^> § ^ 

18 take or receive to his own use any fee, brokerage, commission, gift officio? to 

19 or other consideration for or on account of a loan made by or on i8°5M£.' etc " 

20 behalf of such company. p. s. 119, § 47. 141 Mass. 292. ml - 5 5 i 8 ' § 21 ' 

21 All policies issued by such company shall be signed by its secre — policies, how 

22 tary or, in his absence, by a secretary pro tempore, and by its iSj?i2o?'§ 1. 

23 president or vice president or, in their absence, by two directors. iff!'. 37!' §§13 

1851, 281, § 9. 1856, 252, § 15. 1864, 113, § 2. 29 - 

1854, 453, § 7. G. S. 58, § 32. P. S. 119, § 56. 

24 Such company shall have its office in the city or town specified in —office for 

25 its charter or agreement of association ; and if it establishes agencies cardsfetc., to 

26 in other cities or towns, all signs, cards, pamphlets and advertise- tu>n C . lty loca " 

27 ments exhibited or issued by them shall specify the city or town H56! 2I2; 1 1 5 ' 

28 in which the company they represent is located. p. s. 119, § 44. G - s - 58 > § 18 - 

29 Such company shall not engage in buying or selling goods, wares — nottoen- 

30 or merchandise, except articles insured by it on which losses are fuffnTss Uler 

31 claimed, and except in replacing, rebuilding or repairing insured r^s.^'/u. 

32 property as provided in its policies, nor engage in any business J||[> |^> | * L 

33 other than as specified in its charter or agreement of association and || 5 |' 2 ^|> § *• 

34 expressly authorized by law. p. s. 119, § 49. 

35 No such company shall hold real estate, except for the convenient ^Sreaf 

36 accommodation of its business at a cost not exceeding twenty-five f^f| 81 12 

37 per cent of its cash assets, and real estate acquired under the con- i872| 375) § 15.' 

38 ditions of any mortgage owned by it, or by purchase or set-off on 

39 execution upon judgment for debts due it in the course of its legiti- 

40 mate business. 

1 Section 26. Such company shall not make any condition or —venue and 

2 stipulation in its insurance contracts relative to the court or juris- suits. 

3 diction wherein any suit thereon may be brought, nor limit the g.°I. 5°8 2 ,'§ § i 9 6. 

4 time within which such suit may be commenced to less than two fm^ujlt 

5 years after the cause of action accrues, and any such condition or l894 > 522 > § 26> 

6 stipulation shall be void. 

1 Section 27. Mortgages on real estate held by a domestic in- J^a°g? a h ^ 

2 surance company may be attached and taken and sold on execu- ^f n n °' nexe * 

3 tion, in the manner provided in sections ninety to ninety-four, i8oi, 28i, § 22. 

4 inclusive, of chapter one hundred and fifteen relative to mortgages i856| 252! § 6. ' 

5 held by banks, and the secretary of the company shall perform p.' s.* ii9, § § 48. 

6 relative thereto the duties required of cashiers and clerks of banks. 1111; 1-M; | II: 

1 Section 28. If any domestic insurance company shall not com — corporate 

2 mence to issue policies .within one year after the date of its act cease, when. 

3 of incorporation or of its certificate of organization, or if after it has W 252, § 3. 

4 commenced to issue policies it shall cease for the period of one year &6s/&?9, § §§i,2. 

5 to make new insurance, its corporate powers shall thereby expire, p. 7 |. ill', |§24, 

6 and the supreme judicial court, upon petition of the insurance com- f4fti4,'§88. 

7 missioner or of any person interested, may fix by decree the time j 8 "^ 522 - £ 28 - 

8 within which it shall settle and close its affairs. A company incor- in.f' J 



1130 



INSURANCE. 



[Chap. 118. 



Domestic com- 
pany, invest- 
ments of. 
1888, 165. 



porated by special act shall, within one year after the date thereof, 9 

file with the secretary of the commonwealth a written notice of its 10 

organization under its charter, or the same shall be void. 11 

Nothing in the charter of any domestic mutual life insurance 12 

company shall limit the investments of such company unless such 13 

limitation is contained in the general insurance laws in force at the 14 

time of making the investment. 15 



Purposes for 
which com- 
panies may be 
formed. 
1872, 375, § 1-. 
P. S. 119, § 26. 

Loss by fire, 
etc. 

Loss by 
perils of the 
sea. 



Guaranty of 
fidelity, etc. 
1884, 296, § 1. 



Damage by 
steam looiler 
explosions. 



Accident to 
persons and 
against lia- 
bility for 
injury to 
employees. 
1894, 133, § 1. 
1900, 183, § 1. 
155 Mass. 404. 



Breakage of 
plate glass. 
1873, 167, § 1. 

Damage by 
water. 
1895, 474, § 1. 



— from 
accidents to 
elevators, etc. 

1895, 474, § 1. 

Credit insur- 
ance. 

1896, 447, § 1. 



Title insur- 
ance. 

1884, 180, § 1. 
1887, 214, § 62. 
1889, 378. 
1894, 522, §§ 62, 
64. 

Burglary, etc. 
1900, 92, § 1. 



Accidents to 
machinery. 
1901, 296, § 1. 



ORGANIZATION. 

Section 29. Ten or more persons residents of this common- 1 

wealth may form an insurance company for any one of the following 2 

purposes: 1887, 214, § 29. 1894, 133, §1;522, §29. 1895, 474, §1. 1896, 447, § 1. 3 

First, To insure against loss or damage to property by fire, 4 

lightning, or tempest on land, upon the stock or mutual plan. 5 

Second, To insure upon the stock or mutual plan vessels, 6 

freights, goods, money, effects, and money lent on bottomry or 7 

respondentia, against the perils of the sea and other perils usually 8 

insured against by marine insurance, including risks of inland navi- 9 

gation and transportation. 10 

Third, To guarantee the fidelity of persons in positions of trust, 11 

private or public, and to act as surety on official bonds and for the 12 

performance of other obligations. 13 

Fourth, To insure against loss or damage to property of the 14 

assured, or loss or damage to the life, person or property of another 15 

for which the assured is liable, caused by the explosion of steam 16 

boilers. 17 

Fifth, To insure any person against bodily injury or death by 18 

accident, or any person, firm or corporation against loss or damage 19 

on account of the bodily injury or death by accident of any 20 

person for which loss or damage said person, firm or corpo- 21 

ration is responsible, and to make insurance upon the health of 22 

individuals. 23 

Sixth, To insure against the breakage of plate glass, local or in 24 

transit. 25 

Seventh, To insure against loss or damage by water to any goods 26 

or premises arising from the breakage or leakage of sprinklers and 27 

water pipes. 28 

Eighth, To insure against loss or damage to property arising 29 

from accidents to elevators, bicycles and vehicles, except rolling 30 

stock of railways. 31 

Ninth, To carry on the business commonly known as credit 32 

insurance or guaranty, either by agreeing to purchase uncollectible 33 

debts, or otherwise to insure against loss or damage from the 34 

failure of persons indebted to the assured to meet their liabilities. 35 

Tenth, To examine titles of real and personal property, furnish 36 

information relative thereto and insure owners and others inter- 37 

ested therein against loss by reason of encumbrances and defective 38 

title. 39 

Eleventh, To insure against loss or damage by burglary, theft or 40 

housebreaking. 41 

Twelfth, To insure against loss or damage arising from the pre- 42 

vention or suspension of the use and occupation of any building, 43 

plant or manufacturing establishment, or of any part thereof, due 44 



Chap. 118.] insurance. 1131 

45 to or caused by the breakage of or accident to engines, boilers, 

46 motors, machinery, or by any cause, except fire, not brought about 

47 by the act or will of the owners, occupants or users thereof. 

48 No such corporation shall transact any business other than that Business 

49 specified in its charter or agreement of association, except as pro- lssr.lii, §31. 

50 vided in section fifty-six. 

1894, 133, § 2; 522, § 31. 1895, 474, § 2. 1896, 447, § 2. 1900, 92, § 2; 183, § 2. 

51 Mutual companies organized prior to the twenty-eighth day certain com. 

52 of May in the year eighteen hundred and ninety-six to transact ?ontfnu™busi- 

53 employers' liability insurance may continue such business under the is96%47, §2. 

54 fifth clause of this section, and such companies shall be subject to 

55 the laws, so far as applicable, relative to mutual fire insurance com- 

56 panies. 

1 Section 30. The corporation shall be formed in the manner Formation of 

2 described in and be subject to the provisions of sections fifteen to i872^375f§§ n i,2. 

3 twenty, inclusive, of chapter one hundred and ten, except as herein 1873, 167, § L 

4 otherwise expressly provided. 

P. S. 119, §§ 26, 27. 1887, 214, § 30. 1894, 522, § 30. 

5 The name of the corporation shall be approved by the insurance Name. 

6 commissioner. 

7 The agreement of association shall state the class of insurance it Agreement of 

° , , , .., ,.„ association. 

8 proposes to transact and on what business plan or principle ; and it 

9 the company does not transact business on the stock plan the amount 

10 of its capital stock and the par value of its shares may be omitted. 

11 At the first meeting only the directors and such other officers as First meeting. 

12 the by-laws require shall be chosen, and the president, secretary and officers" ° f 

13 such other officers as the by-laws authorize them to choose shall be p 7 | fl|; f^f: 

14 chosen by the directors. 34, 

15 The certificate of organization shall be signed and sworn to by certificate of 

16 the president, secretary and a majority of the directors, and shall, ist^mT",' 

17 with the records of the corporation, be submitted to the insurance p.' s . 119, §35. 

18 commissioner instead of the commissioner of corporations, and he 

19 shall perform the duties relative thereto required of the commis- 

20 sioner of corporations relative to manufacturing corporations. 

21 The certificate issued by the secretary under the provisions of 

22 section twenty of chapter one hundred and ten shall be modified 

23 to conform to the requirements of this section. 

24 The fee to be paid to the secretary upon the filing of the certifi- Fee - 

25 cate of organization shall be twenty-five dollars. 

1 Section 31. Such companies may organize with a capital as Minimum 

2 follows : 1872, 375, § 2. 

3 Under the first clause upon the stock plan and under the third, liJVi. 7 ' § 2; 

4 fourth, fifth, seventh, eighth, ninth, tenth, eleventh or twelfth clause p- s. 119, §§ 29, 

5 of section twenty-nine, not less than two hundred thousand dollars. i8S3,33,§4. 

1884, 296, § 2. 1887, 214, § 31. 1894, 133, § 2; 522, § 31. 1901, 296, § 2. 

6 Under the second clause of said section upon the stock plan, not J|°' § 9 |. ,§2; 

7 less than three hundred thousand dollars. 

8 Under the sixth clause of said section, not less than one hundred gJ£J||; 

9 thousand dollars. 

10 If organized under the first clause of said section upon the stock 1888 » m - 

11 plan to insure only mechanics' tools and apparatus against loss by 

12 fire to an amount of not more than two hundred and fifty dollars on 



1132 



INSURANCE. 



[Chap. 118. 



1884, 180, § 1. 
1887, 214, § 62. 



a single risk, not less than twenty-five thousand dollars with shares 13 

of a par value of ten dollars each. 14 

If organized under the tenth clause of said section, the capital 15 

shall not exceed one million dollars. 1894, 522, § 62. 16 



Directors, elec- 
tion, term. 
1832, 95, §§ 3, 5. 
R. S. 37, §§ 3, 
5,7. 

1854, 453, §§ 3, 4. 
1856, 252, § 11. 
G. S. 58, § 27. 
1881, 142, § 1. 
P. S. 119, § 51. 
1887, 214, § 32. 
1894, 522, § 32. 

Votes of stock- 
holders, etc. 

Proxies. 



Evidence of 
elections. 



Directors to 
accept in writ- 
ing; quorum; 
vacancies. 



Statement of 
transactions. 



Elections, 
meetings of 
stockholders, 

1817, 120, § 2. 
1819, 46. 

1832, 95, j 
3-5. 

1833, 83. 
R. S. 37, 

1854, 453, §§ 2, 4. 



1, 



2-4, 



Secretary to 
keep list of 
stockholders, 
etc. 



STOCK COMPANIES. 

Officers, — their Election and Duties. 

Section 32. The board of directors of each domestic stock in- 
surance company shall consist of not less than five members, who 
shall be chosen by ballot from the stockholders and a majority of 
whom shall be residents of the commonwealth. They shall hold 
office for one year or for the term provided in its by-laws, as 
authorized by the provisions of section twenty-five, and until their 
successors are qualified. 1896, 253. 

In the choice of directors and at all meetings of the company each 
stockholder shall be entitled to one vote for each share he holds not 
in excess of one-tenth of the capital. Proxies may be authorized 
by written power of attorney, but no officer shall vote as proxy. 
The record of the votes made by the secretary or clerk, which shall 
show whether the same were cast in person or by proxy, shall be 
evidence of all such elections. 

The directors before they are qualified to act, shall file with the 
secretary a written acceptance of the trust. Not less than four shall 
constitute a quorum, and a majority of those in attendance may 
transact business. Vacancies in any office may be filled by the 
directors or by the stockholders as the by-laws shall provide. 

The directors shall at each annual meeting of the company sub- 
mit a full statement of the transactions of the company during the 
previous year and of its financial condition. 

Such companies shall be subject to the provisions of section 
fort} r -one, except as herein modified. 

No treasurer shall be chosen unless such officer is required by the 
by-laws. 

Written requests for special meetings shall be signed by owners 
of one-fifth part of the capital or by twenty stockholders. 



1856, 252, §§ 12, 13. 



G. S. 58, §§ 28, 29. 



1864, 113, § 1. 



P. S. 119, §§ 52, 53. 



1 

2 
3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

28 



The secretary shall keep a list of the stockholders and of the 29 
number of shares standing in the name of each and a record of 30 
all transfers of such shares. 31 



Officers liable 

for loss, when. 

1817, 120, § 4. 

R. S. 37, § 18. 

1854, 453, § 12. 

1856, 252, §§ 14, 

16. 

G. S. 58, §§ 31, 

33. 

1864, 29. 

P. S. 119, §§ 55, 

57. 

1887, 214, § 33. 

1894, 522, § 33. 

10 Gray, 325. 

12 Gray, 355. 



Personal Liability of Officers. 

Section 33. The directors or other officer making or authoriz- 
ing an investment or loan in violation of the provisions of the fol- 
lowing section shall be personally liable to the stockholders for any 
loss caused thereby. 

If a company is under liability for losses equal to its net assets, 
and the president and directors knowing it make or assent to further 
insurance, they shall be personally liable for any loss under such 
insurance. 



If the directors allow to be insured on a single risk a 



larger 



amount than the law permits they shall be liable for any loss thereon 
above the amount they might lawfully insure. 



1 

2 
3 
4 
5 
6 
7 
8 
9 
10 
11 



Chap. 118.] insurance. 1133 

Payment and Investment of Capital. 

1 Section 34. The capital stock shall be paid in cash within capital stock, 

2 twelve months after date of charter or certificate of organization, paidin?p > ou en 

3 and no certificates of full shares and no policies shall be issued & ""fe, 

4 until the whole capital is paid in. A majority of the directors shall if 3 !' 1^ ||- 

5 certify on oath that the money has been paid by the stockholders isW^, § 5. 

6 for their respective shares and the same is held as the capital of the g. s. 58 2 ,'§ § 3o!" 

7 company invested or to be invested as required by the provisions p.l'm.HI'f 

8 of this section. Such capital shall be invested only as follows : 1885,308. 

1887,214, §34. 1894, 522, § 34. 1896,171. 146 Maes. 224. 

9 First, In first mortgages of real estate in this commonwealth, ca V fte* ment of 

10 not exceeding in all sixty per cent of its capital nor twenty per cent 1817 > 120 > § 3. 

11 thereof in one mortgage. i836,'208. 



■•to"© 



12 Second, In public funds of the United States or of any of the S 252,' § ii. 

13 New England states, New York, Pennsylvania, Ohio, Michigan, p.' f; mS\ 

14 Indiana, Illinois, Wisconsin and Iowa, and of the District of i^m 

15 Columbia, and in the legally authorized bonds of the states of Hlf ' 1^* 124 * 

16 Minnesota and Missouri. i88s;9o.' 

1890 369 

17 Third, In the bonds or notes of any city, county or town, or 1894^ 317,' § 21, 

18 incorporated district of this commonwealth; or of any city of any i895,'i64. 

19 other of the New England states whose net indebtedness as defined 

20 in section five of chapter eight does not exceed five per cent of the 

21 last preceding valuation of the property therein for purposes of 

22 taxation ; or of any county or town of said states, whose net in- 

23 debtedness as above defined does not exceed three per cent of such 

24 valuation of its taxable property. 

25 Fourth, In the legally authorized bonds for municipal purposes 

26 and refunding bonds issued to take up at maturity bonds which 

27 have been issued for other than municipal purposes, but on which 

28 the interest has been fully paid, of any city of more than thirty 

29 thousand inhabitants in the states of New York, Pennsylvania, 

30 Ohio, Indiana, Illinois, Michigan, Wisconsin, Minnesota, Missouri 

31 and Iowa, whose net indebtedness as above defined at the date of 

32 such investment does not exceed five per cent of the valuation of 

33 its property for assessment of taxes. 

34 Fifth, In the first mortgage bonds of any railroad company in- 1838,35. 

35 corporated under the authority of any of the New England states ism! 453, §5. 

36 whose road is located wholly or in part in the same and which g 5 s. 58 2 ,'§ § 3l' 

37 has earned and paid regular dividends for the two years last pre- ^; f; 116 > § 20 > 

38 ceding such investment, whether such corporation is in possession 1^5, m. ^ 

39 of and operates its own road or has leased it to another railroad i889| 305! ' 

40 company ; or in the first mortgage bonds of any railroad so incor- ci. 3'. 

41 porated whose road is thus located, guaranteed by any such railroad 

42 company which is in possession of and operates its own road ; 

43 or in the bonds, stocks or notes of any railroad company incor- 

44 porated under the laws of this commonwealth and whose road is 

45 located wholly or in part therein and is unencumbered bj' mortgage, 

46 and which has paid a dividend of not less than five per cent per 

47 annum for two years last preceding such investment; or in bonds, 

48 stocks and notes issued according to law of either the Old Colony 

49 Railroad Company, the Fitchburg Railroad Company, or the 

50 Worcester, Nashua and Rochester Railroad Company. But the 

51 term "railroad companies " as here used shall not be construed to 

52 include street railway companies. 



1134 



INSURANCE. 



[Chap. 118. 



Investment of 
capital. 
1817, 120, § 3. 
R. S. 37, § 10. 
1854, 453, § 5. 
1856, 252, § 14. 
G. S. 58, § 31. 
1864, 29. 
P. S. 116, § 20, 
cl. 4. 

1882, 224. 

1883, 202. 
1886, 95. 
1890, 168. 
1894, 317, § 21, 
Cl. 5. 

141 Mass. 522. 
151 Mass. 107. 



1817, 120, § 3. 
R. S. 37, § 10. 
1854, 453, § 5. 
1856, 252, § 14. 
G. S. 68, § 31. 
P. S. 119, § 55. 



1896, 171. 



1887, 196. 



1894, .317, § 21. 



— in loans to 

depositors. 

1879, 57. 

P. S. 116, § 20, 

cl. 5. 

1894, 317, § 21, 

cl. 6. 



— in personal 
securities. 
1834, 190, § S. 
R. S. 36, § 79. 
G. S. 57, § 145. 
1876, 203, § 9, 

P.' S'. 116, § 20, 
cl. 6. 

1884, 56, 168. 
1886, 69. 
1894, 317, § 21, 
cl. 7. 



Sixth, In the stock of a bank incorporated in this common- 53 

wealth, or in the stock of a banking association located in the New 54 

England states and incorporated under the authority of the United 55 

States, or in the stock of a trust company incorporated under the 56 

laws of and doing business within this commonwealth, as provided 57 

in chapter one hundred and sixteen, or of those trust companies in- 58 

corporated as such by special charters granted under the laws of 59 

and doing business within this commonwealth, whose special charters 60 

require them to provide the same security as prescribed in sections 61 

twenty-eight and thirty of said chapter ; but such corporation shall 62 

not hold, both by way of investment and as security for loans, more 63 

than one-fourth of the capital stock of any bank nor more than 64 

thirty-five per cent of its capital in the stock of such trust compa- 65 

nies, and shall not so hold more than three per cent of its capital 66 

in, nor more than one hundred thousand dollars nor more than 67 

one-quarter part of the capital stock of, such trust company. No 68 

insurance company shall invest in or loan upon the stock and bonds 69 

of any railroad corporation more than one-tenth of its own capital ; 70 

nor shall its entire investment in and loans upon all railroad prop- 71 

erty and securities exceed one-third of its capital. 72 

Seventh, In loans upon the note or notes of a citizen of this 73 

commonwealth secured by pledge as collateral of any of the afore- 74 

said securities. If the pledged securities are of those specified in 75 

the first, second, third or fourth clause, as above, the loan thereon 76 

may be of an amount not more than their par value. If the pledged 77 

securities are of those specified in the fifth and sixth clauses, the 78 

loan thereon shall not exceed their par value nor be more than four- 79 

fifths of their market value. 80 

Eighth, In the securities named in clause third, paragraphs f, 81 

g, h, i, j, of section twenty-six of chapter one hundred and thirteen, 82 

and in the note or notes of a citizen of this commonwealth with a 83 

pledge as collateral of the securities therein named at no more than 84 

the par value thereof. 85 

In the securities named in clause third, paragraphs I and m of 86 

said section twenty-six. 87 

Ninth, In the securities named in clause fourth, paragraphs a, b, 88 

c, d, e, f, of said section twenty-six, except that the report re- 89 

quired by the provisions of paragraph a of clause fourth shall be 90 

made by two members of the board of directors instead of two mem- 91 

bers of the board of investment. 92 

Tenth, In loans to a depositor of a savings bank or institution 93 

of this commonwealth upon his personal note to an amount not 94 

exceeding one-half of his deposit, with the deposit and the book 95 

of the depositor as collateral security for the payment of such 96 

loan. 97 

Eleventh, If the capital cannot be conveniently invested in 98 

the modes hereinbefore prescribed, not exceeding one-third part 99 
thereof may be invested in bonds or other personal securities, 100 
payable and to be paid at a time not exceeding one year, with at 101 
least two sureties, if the principal and sureties are all citizens 102 
of this commonwealth and resident therein : provided, that the 103 
total liabilities to such corporation, of a person, or of any part- 104 
nership, company or corporation for money borrowed upon personal 105 
security, including in the liabilities of a partnership or company 106 






Chap. 118.] insurance. 1135 

107 not incorporated the liabilities of the several members thereof, shall 

108 not exceed five per cent of such capital. 

109 Twelfth, In any of the securities in which savings banks may isss, 308. 

110 invest their deposits. i896.ni.. 

111 If such investments by savings banks are limited in respect of 

112 their deposits, corresponding limitations shall apply to insurance 

113 companies in respect of their capital. 

Impairment, Increase and Reduction of Capital. 

1 Section 35. If the net assets of the company do not amount impaired capi. 

2 to more than three-fourths of its original capital, it may make how! 1 ' 

3 good its capital to the original amount by assessment of its stock. i872| 325) § i.~ ' 

1875, 27, § 6. P. S. 119, §§ 59-61. 1887, 214, § 35. 1894, 522, § 35. 

4 Shares on which such assessment is not paid within sixty days Forfeiture of 

5 after demand shall be forfeitable, and may be cancelled by a vote shares - 

6 of the directors, and new shares issued to make up the deficiency. 

7 If such company shall not, within three months after notice from Authority to 

8,i. •• i !•, .,i n • -i do business to 

the insurance commissioner, make good its capital as aforesaid, or cease, when. 

9 reduce the same as provided in section thirty-seven, its authority to 

10 transact new business of insurance shall cease. 

1 Section 36. Such company may issue pro rata to its stock- capi?ai seof 

2 holders certificates of any portion of its actual net surplus it may jjp, 375, §§ 13, 

3 decide to divide, which shall be deemed to be an increase of its 1875,27, §5. 

4 capital to the amount of such certificates, and such company may, p.'s'. 119, §§62, 

5 at a meeting called for the purpose, vote to increase the amount {sot, 214, § 36. 

6 and number of shares of its capital stock, and to issue certificates 1894, 522 ' § 36 - 

7 thereof when paid for in full. 

8 However the increase is made, the company shall, within thirty -certificate of. 

9 days after the issue of such certificates, submit to the insurance 

10 commissioner a certificate stating the amount of the increase and 

11 the facts of the transaction, signed and sworn to by its presi- 

12 dent and secretary and a majority of its directors. If the com- 

13 missioner finds that the facts conform to the law he shall indorse 

14 his approval thereof; and, upon filing such certificate so indorsed 

15 with the secretary of the commonwealth and the payment of a fee 

16 of five dollars for filing the same, the company may transact 

17 business upon the capital as increased and the commissioner shall 

18 issue his certificate to that effect. 

1 Section 37. If the capital stock of a company is impaired, ^j^ 011 0l 

2 such company may, upon a vote of a majority of the stock repre- p 37 !* 2 ^ 1 -^ 

3 sented at a meeting legally called for that purpose, reduce its capital law, |.^'' f p- 

4 stock and the number of shares thereof to an amount not less than 

5 the minimum amount required by law. But no part of its assets 

6 and property shall be distributed to its stockholders. 

7 Within ten days after such meeting the company shall submit to -certificate of. 

8 the insurance commissioner a certificate setting forth the pro- p.'s'. 119, §66. 

9 ceedings thereof and the amount of such reduction and the assets 

10 and liabilities of the company, signed and sworn to by its president, 

11 secretary and a majority of its directors. If the commissioner finds 

12 that the reduction is made in conformity to law and that it will 



1136 



INSURANCE. 



[Chap. 118. 



Company may 
transact busi- 
ness upon 
basis of re- 
duced capital, 
when. 
1875, 27, § 3. 
P. S. 119, § 67. 



Substitute 
certificates of 
stock. 
1875, 27, § 4. 
P. S. 119, § 68. 



not be prejudicial to the public, he shall indorse his approval upon 
the certificate. 

Upon filing the certificate, so indorsed, with the secretary of the 
commonwealth, and paying a fee of five dollars for the filing 
thereof, the company may transact business upon the basis of such 
reduced capital as though the same were its original capital, and its 
charter shall be deemed to be amended to conform thereto ; and the 
insurance commissioner shall issue his certificate to that effect. 

Such company may, by a majority vote of its directors, after 
such reduction, require the return of the original certificates of 
stock held by each stockholder in exchange for new certificates 
which it may issue in lieu thereof for such number of shares as 
each stockholder is entitled to in the proportion that the reduced 
capital bears to the original capital. 



13 
14 
15 

16 

17 
18 
19 
20 
21 
22 
23 
24 
25 
26 



Dividends to 
be made only 
from surplus, 
etc. 

1817, 120, § 2. 
R. S. 37, § 15. 
1856, 252, § 16. 
G. S. 58, § 34. 
1872, 375, § 17. 

1874, 222. 

1875, 95. 

1877, 36. 

1878, 35, §§ 1, 2. 
P. S. 119, §§ 69, 
70, 72. 

1887, 214, § 38. 
1891, 289. 
1894, 522, § 38. 
121 Mass. 524. 



Dividends. 

Section 38. No stock company shall make a dividend, either 1 

in cash or stock certificates, except from its actual net surplus com- 2 

puted as required by law in its annual statement ; nor shall any 3 

such company which has ceased to do new business of insurance 4 

divide any portion of its assets, except surplus, to its stockholders 5 

until it shall have performed or cancelled its policy obligations. 6 

Any such company may declare and pay, annually or semi-annually, 7 

from its surplus, cash dividends to its stockholders of not more 8 

than ten per cent of its capital stock in a year ; and if the dividends 9 

in any year are less than ten per cent, the difference may be made 10 

up in any subsequent year or years from surplus accumulations ; but 11 

any such company may pay such dividend as the directors may con- 12 

sider prudent out of any surplus that shall remain after charging in 13 

addition to all its liabilities, except unearned premiums, an amount 14 

equal to the whole amount of premiums on unexpired risks, and de- 15 

ducting from the assets all securities and book accounts on which no 16 

part of the principal or interest has been paid within the last year 17 

and for which foreclosure or suit has not been commenced for col- 18 

lection, or which after judgment obtained thereon shall have re- 19 

mained more than two years unsatisfied and on which interest shall 20 

not have been paid, and also deducting all interest due and unpaid 21 

on any property of the company. 22 



Issue of 

policies. 

1835, 147, § 5. 

R. S. 37, § 28. 

1851, 90. 

1854, 453, § 22. 

1856, 252, § 39. 

1858, 150. 

G. S. 58, § 58. 

1872, 375, § 10. 

1878, 33. 

P. S. 119, §§ 38, 

86. 

1887, 214, § 39. 

1894, 300; 522, 

§39. 

1896, 126. 

1897, 62. 



MUTUAL FIRE. 

Section 39. No policy shall be issued by a purely mutual fire 1 

insurance company organized subsequent to the twenty-third day 2 

of April in the year eighteen hundred and ninety-four, nor by a 3 

mutual fire insurance company with a guaranty capital of less than 4 

one hundred thousand dollars, until not less than one million dollars 5 

of insurance, in not less than four hundred separate risks upon 6 

property located in this commonwealth, has been subscribed for and 7 

entered on its books ; except that in any town of less than four 8 

thousand inhabitants a company may be formed to insure only 9 

dwelling houses, farm buildings and their contents within such 10 

town, and may issue policies when fifty thousand dollars of insur- 11 

ance has been subscribed for. No policy shall be issued under the 12 






Chap. 118.] insurance. 1137 

13 provisions of this section until the president and secretary of the 

14 company shall have certified under oath that every subscription 

15 for insurance in the list presented to the insurance commissioner 

16 for approval is genuine, and made with an agreement with every 

1 7 subscriber for insurance that he will take the policies subscribed for 

18 by him within thirty days of the granting of a license to the com- 

19 pany by the insurance commissioner to issue policies. If such 

20 officers shall take" a false oath relative to such certificate they shall 

21 be guilty of perjury. No officer or other person whose duty it is 

22 to determine the character of the risks, and upon whose decision 

23 the applications shall be accepted or rejected by a mutual fire in- 

24 surance company, shall receive as any part of his compensation a 

25 commission upon the premiums, but his compensation shall be a 

26 fixed salary and such share of the net profits as the directors may 

27 determine. Nor shall such officer or person aforesaid be an em- 

28 ployee of any officer or agent of the company. 

Members and Elections. 

1 Section 40. Every person insured by a mutual fire insurance Members, ana 

2 company, shall be a member while his policy is in force, entitled to im, 147, § 6. 

3 one vote for each policy he holds, and shall be notified of the time I'sf,'^,^. 

4 and place of holding its meetings by a written notice or by an g 5 I. fl/nl' 

5 imprint upon the back of each policy, receipt or certificate of JI72; 230,' 1 1! 

6 renewal, as follows : — 

P. S. 119, §§ 78, 80. 1887, 214, § 40. 1894, 522, § 40. 8 Allen, 217. 

The assured is hereby notified that by virtue of this policy he is a member of 
the Insurance Company, and that the annual meetings of said company 

are holden at its home office on the day of in each year, at 

o'clock. 

7 The blanks shall be duly filled in print, and shall be a sufficient 

8 notice. 

9 A corporation which becomes a member of such company may Representative 

10 authorize any person to represent it in such company, and such rep- corporation to 

11 resentative shall have all the rights of an individual member. amlmlef. 8 of 

1851, 170. 1856, 252, § 26. P. S. 119, § 84. 

1854, 453, § 16. G. S. 58, § 47. 

12 Any person holding property in trust may insure the same in such gn^l'to -' 

13 company, and as such trustee assume the liabilities and be entitled ^fjj*^ a 

14 to the rights of a member, but shall not be personally liable upon is43,82.' 

-, r -, , , P . G. S. 58, § 59. 

15 such contract of insurance. p. s. 119, §85. 

16 Members may vote by proxies dated and executed within three voting by 

17 months and returned and recorded on the books of the company ¥£$£ 147, § 3. 

18 three days or more before the meeting at which they are to be used ; ^"lis^Ts. 

19 but no person shall as attorney or otherwise cast more than twenty ijp, 252, §§ 28, 

20 votes, and no officer or agent shall himself or by another ask for, g. s.58,§§43, 

21 receive, procure to be obtained or use a proxy to vote. I862,i8i,§5. 

1872, 230, § 1. 1879, 58. P S. 119, §§ 79, 80, 82. 

22 Every such company shall elect by ballot a board of not less than Rectors, 

23 seven directors, who shall manage and conduct its business and who term,°eto, 

24 shall hold office for one year or for such term as the by laws may UG ™?> m - 

25 provide, in accordance with the provisions of section twenty-five, 

26 and until their successors are qualified. 



1138 



INSURANCE. 



[Chap. 118. 



Directors, 
eligibility of. 



- quorum. 



— vacancies. 



Two-thirds at least of the directors shall be citizens of this com- 27 

monwealth and, after the first election, members only shall be eligi- 28 

ble, but no director shall be disqualified from serving the term for 29 

which he was chosen by reason of the expiration or cancellation 30 

of his policy : provided, that in companies with a guaranty capital 31 

one-half of the directors shall be chosen by and from the stock- 32 

holders. 33 

Five or more of the directors shall constitute a quorum for the 34 

transaction of business by the vote of a majority of those in attend- 35 

ance. 36 

Vacancies in any office may be filled in such manner as the by- 37 

laws shall provide. 38 



Election of 
officers. 
1835, 147, § 4. 
R. S. 37, §§ '26, 
27. 

1851, 157. 
1856, 252, §§ 24, 
25, 37. 

Special meet- 
ings. 



Officers to be 
sworn, etc. 



Secretary to 
keep record 
of proceedings, 
etc. 



Powers and Duties of Officers. 

Section 41 . The directors shall annually choose by ballot a pres- 
ident, who shall be a member of the board, a secretary, a treasurer, 
who may also be either the president or secretary, and such other 
officers as the by-laws provide. g. s. 58, §§ 44-46. 

P. S. 119, §§ 81-83. 1887, 214, § 41. 1894, 522, § 41. 8 Allen, 217. 

They may call special meetings of the members of the corporation, 
of which each member shall have such notice as the by-laws provide, 
and shall call such meetings upon the written request of twenty 
members or of the owners of one-fifth of the guaranty capital, stating 
the purpose thereof. 

The president, the vice president, if any, and the secretary and 
treasurer shall be annually sworn, and their oaths be entered 
of record in the books of the corporation. The president or, in 
his absence, the vice president shall preside at all meetings of the 
directors or members. In the absence of both, a president pro 
tempore may be chosen. 

The secretary shall keep a record of the votes, whether cast in 
person or by proxjr, and the other proceedings of all meetings of the 
directors and of the members ; a true list of the holders of the guar- 
anty capital, if any, the number of shares owned by each, and a 
record of all transfers of such shares ; and shall record all policies 
issued and all authorized assignments, transfers and cancellations 
thereof; and such other books and records as the president and 
directors may require. The records so kept shall be evidence of the 
transactions to which they relate, and for making any wilfully false 
record the secretary shall be deemed guilty of perjury. Such 
records shall be open to the inspection of any person interested 
therein. 



1 

2 
3 
4 

5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 



Guaranty capi- 
tal of mutual 
fire insurance 
companies. 

1872, 375, § 11, 
cl. 1; 375, §19. 

1873, 177. 
1877, 175, § 1. 
1879, 52. 

P. S. 119, § 74. 
1887, 214, § 42. 
1890, 26. 

1594, 522, § 42. 

1595, 190. 

142 Mass. 403. 



Companies with a Guaranty Capital. 

Section 42. A mutual fire insurance company may be formed 1 

with, or an existing mutual fire insurance company may establish, a 2 

guaranty capital of not less than twenty-five thousand dollars nor 3 

more than two hundred thousand dollars, divided into shares of one 4 

hundred dollars each, which shall be invested in the same manner 5 

as is provided for the investment of the capital stock of certain in- 6 

surance companies by section thirty-four. The stockholders of the 7 

guaranty capital of a company, acquired under the provisions of the 8 

Public Statutes of this commonwealth, or of any acts subsequent 9 



Chap. 118.] insurance. 1139 

10 thereto, shall be entitled to a semi-annual dividend of not more than 

11 three and one-half per cent on their respective shares if the net 

12 profits or unused premiums left after all expenses, losses and liabili- toriosi^etc 

13 ties then incurred, with the reserve for reinsurance, are provided i87|, 375, §' n, " 

14 for, shall be sufficient to pay the same. The guaranty capital shall p." s'. 119, § 75. 

15 be applied to the payment of losses only when the company has 

16 exhausted its cash in hand and the invested assets, exclusive of 

17 uncollected premiums, and when thus impaired, the directors may 

18 make good the whole or any part of it by assessments upon the 

19 contingent funds of the company at the date of such impairment. 

20 Shareholders and members of such companies shall be subject to the Right of share- 

21 same provisions of law relative to their right to vote as apply members to 

22 respectively to shareholders in stock companies and policy holders Jsn,'^,'^ n 

23 in purely mutual companies ; and said guaranty capital shall be re- ^ 9 - g 119 §76 

24 tired when the permanent fund of the company equals two per cent 

25 of the amount insured upon all policies in force ; and said guaranty Reduction or 

26 capital may be reduced or retired by vote of the policy holders of guaranty tof 

27 the company and the assent of the insurance commissioner, if the ca P itaL 

28 net assets of the company above its reinsurance reserve and all 

29 other claims and obligations, exclusive of guaranty capital, for two 

30 years last preceding and including the date of its last annual 

31 statement, shall be not less than twenty-five per cent of the guaranty 

32 capital. Due notice of such proposed action on the part of the com- 

33 pany shall be mailed to each policy holder of the company not less 

34 than thirty days before the meeting when such action may be taken, 

35 and shall also be advertised in two papers of general circulation, 

36 approved by the insurance commissioner, not less than three times a 

37 week for a period of not less than four weeks before said meeting. 

38 No insurance company with a guaranty capital, which has ceased to 

39 do new business, shall divide among its stockholders any part of its 

40 assets or guaranty capital, except income from investments, until it 

41 shall have performed or cancelled its policy obligations. 

Permanent Fund. 

1 Section 43. Mutual fire insurance companies may continue to Accumuia^ 

2 hold as a permanent fund the net profits, and such companies with permanent 

3 a guaranty capital the special reserve, already set apart as provided 1877,198, §§3, 5. 

4 by law. If such fund of any such company is less than two per us^aX'f is.' 

5 cent of its insurance in force, or if such company has no such fund, jfgj fS^ 5 tt . 

6 the directors may annually set apart not exceeding twenty per cent 

7 of the net profits of the preceding year for an addition to or to 

8 establish such fund until said limit of two per cent has been 

9 reached. Such fund shall be held for the security of the insured 

10 and shall be subject to the provisions of law relative to the invest- 

11 ment of the capital stock of insurance companies on the stock plan. 

12 The permanent fund so accumulated shall be used for the payment 

13 of losses and expenses when the cash funds of the company in excess 

14 of an amount equal to its liabilities, including guaranty capital, are 

15 exhausted ; and when the said fund is drawn upon, the reservation 

16 of profits as aforesaid may be renewed or continued until the limit of 

17 accumulation as herein provided is reached. The income of the per- 

18 manent fund shall be included annually in the cash receipts of the 

19 company ; but the provisions of this section shall not affect the 



1140 



INSURANCE. 



[Chap. 118. 



rights existing on the fifteenth day of February in the year eighteen 20 
hundred and ninety of holders of policies in companies having a 21 
guaranty capital. 22 



Dividends and 
assessments. 
1835, 147, § 12. 
B. S. 37, § 33. 
1854, 453, § 21. 
1856, 252, § 30. 
G. S. 58, § 51. 
1863, 249, § 6. 
P. S. 119, § 97. 
1887, 214, § 44. 
1890, 26. 
1894, 522, § 44. 
1897, 197, § 1. 
9 Allen, 319. 
165 Ma6S. 565. 



6 Gray, 77. 
112 Mass. 192. 



Dividends and Assessments. 



Section 44. The directors of any mutual fire insurance company 
may, from time to time, by vote, fix and determine the amount to 
be paid as a dividend upon policies expiring during each year. In 
the year nineteen hundred and five, and at the expiration of each 
term of five years thereafter, the directors shall, subject to the pro- 
visions of the preceding section, apportion as an extra dividend, 
according to their best judgment, proportionately to the holders of 
policies which have expired during the preceding five year period 
the entire remaining net profits. Any such dividends declared 
subsequent to the thirty-first day of December in the year eighteen 
hundred and ninety-nine, and remaining uncalled for at the expira- 
tion of the five year period in which such dividends are declared,' 12 
shall be forfeited to the company. Each policy holder shall be 13 
liable to pay his proportional part of any assessments which may be 14 
laid by the company in accordance with law and his contract, on 15 
account of losses and expenses incurred while he was a member, 16 
if he is notified of such assessment within one year after the 17 
expiration of his policy. Mutual companies which make at least 18 
annually an entire apportionment and division of earnings or profits 19 
shall not be subject to the provisions of this or the preceding sec- 20 
tion, except the provision relative to the assessment of members. 21 



1 

2 
3 
4 
5 
6 
7 
8 
9 
10 
11 



Premium to be 
charged, and 
contingent 
liability. 
1876, 120, $ 3. 
P. S. 119, § 97. 
1887, 214, § 45. 
18©4, 522, § 45. 
165 Mass. 565. 



Section 45. Mutual fire insurance companies, except as pro- 1 

vided in the following section, shall charge and collect upon their 2 

policies a full mutual premium in cash, or notes absolutely payable. 3 

Any such company may in its by-laws and policies fix the contin- 4 

gent mutual liability of its members for the payment of losses and 5 

expenses not provided for by its cash funds ; but such contingent 6 

liability of a member shall not be less than an amount equal to and 7 

in addition to the cash premium written in his policy. The total 8 

amount of the liability of the policy holder shall be plainly and 9 

legibly stated upon the back of each policy. Whenever any reduc- 10 

tion is made in the contingent liability of members such reduction 11 

shall apply proportionally to all policies in force. 12 



S76°i2oTu 8 2 Section 46. Mutual fire insurance companies organized prior 1 

1877! las', §§ i\ 2, to the twenty-first day of May in the year eighteen hundred and 2 

p\s. 119, §§ ii3- eighty-seven and now lawfully doing business upon the plan of 3 

taking deposit notes for a percentage of the amount insured by its 4 

policies, and making a call or assessment thereon for the payment 5 

of losses and expenses as the same are incurred, may continue 6 

such system of business, and such deposit notes shall constitute 7 

the entire liability of their members. 8 



115 

1887, 214, § 46. 
1894, 522, § 46. 
[1 Op. A. G. 

158.] 



Assessments. 

Assessments. Section 47. If a mutual fire insurance company is not pos- 1 

r. s. 37,'§ 31. sessed of cash funds above its reinsurance reserve, sufficient for 2 

i85e! 252^ §§ 27, the payment of incurred losses and expenses, it shall make an 3 



Chap. 118.] insurance. 1141 

4 assessment for the amount needed to pay such losses and expenses g.s.58,§§48, 

5 upon its members liable to assessment therefor > in proportion to 1877, m 

6 their several liability. p. s. iw, §§ aj, 

7 The company shall cause to be recorded in a book kept for that Jill; Hi', § %' 

8 purpose the order for such assessment, with a statement which fo^Iy^aV 2 * ' 

9 shall set forth the condition of the company at the date of the 1 jH} en '' 235 - 

10 order, the amount of its cash assets and of its deposit notes or other 9 Alien,' 319, 

11 contingent funds liable to the assessment, the amount the assess- 10 Alien, 110. 

12 ment calls for and the particular losses or other liabilities it is made 11I Mass. 116, 

13 to provide for. Such record shall be made and signed by the i69'Ma 8 ' s ! 9 |o'8. 

14 directors who voted for the order, before any part of the assessment in Mass - 484 - 

15 is collected, and any person liable to the assessment may inspect 

16 and take a copy of the same. 

1 Section 48. If by reason of depreciation or loss of its funds Alternative 

2 or otherwise the cash assets of such a company, after providing for premium 

3 for its other debts, are less than the required premium reserve pXory and" 

4 upon its policies, it shall make good the deficiency by assess- i^^'g 4. 

5 ment in the mode provided in the preceding section ; or if the ^7 '214 '§48°' 

6 directors are of the opinion that the company is liable to become J?K, 522 ' %^- 

. • i p 1 , -i 112 Mass. 116. 

7 insolvent they may, instead 01 such assessment, make two assess- 

8 ments, the first determining what each policy holder must equitably 

9 pay or receive in case of withdrawal from the company and having 

10 his policy cancelled, the second what further amount each must pay 

1 1 in order to reinsure the unexpired term of his policy at the same rate 

12 as the whole was insured at first. Each policy holder shall pay or 

13 receive according to the first assessment, and his policy shall then 

14 be cancelled, unless he pays the amount further determined by the 

15 second assessment, in which case his policy shall continue in force ; 

16 but in neither case shall a policy holder receive or have credited 

17 to him more than he would have received on having his policy 

18 cancelled by vote of the directors, under the by-laws. 

19 If within two months after such alternative assessments have company to 

20 become collectible the amount of the policies whose holders have whin. u,r '"' (,w - 

21 settled for both assessments is less than five hundred thousand p. 6 l'.n9,§ib6. 

22 dollars, the company shall cease to issue policies ; and all policies 

23 whose holders have not settled for both assessments shall be void, 

24 and the company shall continue only for the purpose of adjusting 

25 the deficiency or excess of premiums among the members, and 

26 settling outstanding claims. 

27 No assessment shall be valid against a person who has not been Members to be 

28 duly notified thereof within one year after the expiration or cancel- assessment. 

29 lation of his policy. And when an assessment is ordered the g 5 !'. 2 58 2 /§ § 54.' 

30 directors shall forthwith cause written notice and demand for pay- p^l.ng^^. 

31 ment to be made upon each person subject thereto, by mail or isw.w,' §2. 

32 personal service. 



1 

2 



Section 49. If the directors by authority of statute make an supreme 
assessment or call on the members for money, or vote that there may C orde?, ur 

3 exists a necessity for such assessment or call, tney or any person me nt in certain 

4 interested in the company as an officer, policy holder or creditor, gg'i^j L 

5 may apply to the supreme judicial court for any county, by a *§*•**»• |§; 

6 petition in the nature of a bill in equity, praying the court to uraj 379! ^ 

7 examine such assessment or call, the necessity therefor, and all i887, - 2i4,'§49. ' 



1142 



INSURANCE. 



[Chap. 118. 



1894, 522, § 49. 
112 Mass. 142. 
169 Mass. 408. 



Assessments 
in certain 
cases, notice 
and proceed- 
ings. 

1862, 181, § 2. 
1864, 161, § 2. 
1872, 379. 
P. S. 119, § 102. 



— auditor to 
appoint time 
and place of 
hearing, give 
notice, etc. 

1862, 181, § 2. 

1863, 249, §§ 3, 5. 

1864, 161, § 2. 
1872, 379. 

P. S. 119, § 103. 
112 Mass. 192. 
171 Mass. 484. 



— decree and 
effect thereof. 
1862, 181, § 3. 
1864, 161, § 2. 
1372, 379. 
P. S. 119, § 104. 
11 Allen, 574. 



— cost of pro- 
ceedings, etc. 



— stay of col. 
lection. 
1863, 249, § 3. 
1864, 161, § 1. 
P. S. 119, § 105. 



matters connected therewith, and to confirm, amend or annul the 8 

assessment or call, or to order that the same be made as law and 9 

justice may require ; but if an application is made by any party 10 

except the corporation, or a receiver, or the insurance commis- 11 

sioner, the court may decline to exercise jurisdiction thereof. If 12 

the directors unreasonably neglect to make an assessment or cail IS 

to satisfy an admitted or ascertained claim upon the company, 14 

any judgment creditor, or any person holding such claim, or the 15 

insurance commissioner, may make the application to the court. 16 

Upon such application, if made by the directors, or upon an order 17 

of the court, if made by any other person, the directors shall set 18 

forth the claims against the company, its assets, and all other facts 19 

and particulars appertaining to the matter. 20 

The court before which such petition is filed shall order notice to 21 

be given by publication or otherwise to all parties interested and, 22 

upon the return thereof, shall examine the assessment or call, or the 23 

necessity therefor, and all matters connected therewith. Any parties 24 

interested may appear and be heard thereon. All questions that 25 

arise shall be heard and determined as in other equity cases. 26 

The application shall be referred to an auditor, who shall appoint 27 

a time and place to hear all parties interested, and shall give personal 28 

notice thereof in writing to the insurance commissioner, and through 29 

the post office, so far as he is able, to all persons liable upon said 30 

assessment or call. The auditor shall hear the parties, and report 31 

upon the correctness of the assessment or call, and all matters con- 32 

nected therewith. The court may confirm, amend or annul the 33 

assessment or call, or order one to be made ; and may make such 34 

orders and decrees as under all the circumstances justice and equity 35 

require. If the assessment or call is altered or amended, or one is 36 

ordered to be made, the directors shall forthwith proceed to vote 37 

the same in legal form, and the record of such vote shall be set 38 

forth in a supplemental bill or answer. 39 

When an assessment or call has been so confirmed, ascertained or 40 

established, a decree shall be entered which shall be final and conclu- 41 

sive upon the company and all persons liable to the assessment or 42 

call, as to the necessity of the same, the authority of the company 43 

to make or collect the same, the amount thereof, and all formalities 44 

connected therewith. An assessment or call altered or amended by 45 

vote of directors and decree of the court thereon shall be binding 46 

upon all parties who would have been liable under it as originally 47 

made, and in all legal proceedings shall be held to be such original 48 

assessment or call. All such proceedings shall be at the cost of the 49 

company, unless the court for cause otherwise orders ; and in all 50 

cases the court may control the disposition of the funds collected 51 

under such proceedings. 52 

If the court finds that the net proceeds of any assessment or call 53 

will not be sufficient to furnish substantial relief to those having 54 

claims against the company, it may decree that no assessment shall 55 

be collected ; and if, upon the application of the insurance commis- 56 

sioner or a member of the company, or of any person interested, 57 

the court is of opinion that further attempts to collect an assessment 58 

then partially collected will not benefit those having claims against 59 

the company, it may stay the further collection of said assessment. 60 



Chap. 118.] insurance. 1143 

Personal Liability of Officers. 

1 Section 50. No director or other officer of a mutual fire in- officer to give 

2 surance company shall either officially or privately give a guaranty agafnsttssess- 

3 to a policy holder thereof against an assessment to which he would Seo.W 

4 otherwise be liable. 1887, 214, § 50. 1894, 522, § 50. p. s'. 119, § 108. 

5 If the directors of any such company neglect or omit for six Directors 

6 months to lay and collect with all practicable diligence any assess- i^Iu^T 

7 ment they are required to make by the provisions of the two pre- p ' S- 119 ' § m 

8 ceding sections, they shall be personally liable for all debts and 

9 claims then outstanding against the company, or that may accrue 

10 until such assessment is laid and put in process of collection. 

11 If the treasurer of such company unreasonably neglects to collect Treasurer 

x •/ ^ j o liable, wncn. 

12 an assessment made by order of the directors, and to apply the 1835,147, §9. 

~R S 37 6 33 

13 same to the payment of the claims for which it was made, he ism,' 453, §19. 

14 shall be personally liable to the person having such claims, for the g. s'. 58,'§ 49.' 

15 amount of the assessment; and he may repay himself out of any p - s - 119 » § 112 - 

16 money afterward received for the company on account of said 

17 assessment. 

18 If sufficient property of any such company cannot be found j^ab1e t0 when 

19 to satisfy an execution issued against it, and it has property y® |> ^-M- 

20 belonging to the period assessed, the proceeds of which can be i854,'453, § is. 

21 applied to satisfy such execution, if the directors neglect to pay the g. s. 58,' § 48.' 

22 same, or neglect for thirty days after the rendition of judgment to 103 Mass. 551. ' 

23 make an assessment and deliver the same to the treasurer for collec- 

24 tion, or to apply such assessment when collected to the payment of 

25 the execution, they shall be personally liable for the amount of the 

26 execution. 

27 If the directors of any such company are liable to pay an ex- Remedy of 

28 ecution against it, the creditor may recover the same by a suit in crefnoTand 

29 equity or by an action at law against the directors. The director f^u*', § 10. 

30 who pays an execution against the company for which he is person- Rs.37, §§34, 

31 ally liable may sue in equity for contribution any of the directors ^;|§;f|j; 

32 for their proportion, and also the company or the individual mem- ^•|-^'i 5 n 1 

33 bers thereof to the extent of their several liability to assessment 106 Mass. 344. ' 

34 therefor. 

Limit of Risks. 

1 Section 51. Mutual fire insurance companies may insure prop- Location of 

2 erty in any of the New England states, New York, New Jersey and Slsf'uj, § 5. 

3 Pennsylvania. Such companies which have a guaranty capital or Hk.'ioi.'iliT. 

4 which insure manufacturing as well as other property may make Jg *™« | ^ 

5 insurances upon property located in any part of the United States <f l.fg'^ 8 ; 

6 or in Canada. 

1872,375,§11. 1877, 198, §6. 1886,222. 1893,54. 

1875,59. P. S. 119, §88. 1887, 214, § 51. 1894, 522, § 51. 

MUTUAL MARINE AND MUTUAL EIRE AND MARINE. 

1 Section 52. A mutual marine insurance company organized * ^™ n £f t s ne 

2 under the provisions of this chapter shall have an agreement under Jgjgg™^ 

3 the seal of each subscriber thereto, substantially as follows : biiity fund.' 

1851, 281, § 15. 1856, 252, § 18. 1868, 317, § 3. 1887, 214, § 52. 

1854', 453; § 25! G. S. 58, § 35. P. S. 119, §§ 116, 117. 1894, 522, § 52. 



1144 



INSURANCE. 



[Chap. 118. 



The subscribers severally agree to pay to the Insurance Company on 

demand the whole or such part of the amounts set against our names as may be 
called from time to time for the use of said company in the payment of its losses 
and expenses not otherwise provided for. 



Policies of 
mutual marine 
companies. 



Amount of 
subscriptions 
to be kept 
good. 



Dividends and 
reimburse- 
ment. 



Net profits to 

be divided. 

1852, 137, §§1,2. 

G. S. 58, §§ 40, 

41. 

P. S. 119, §§ 125- 

127. 



Limit of 
accumulation 
of profits. 



Such company shall not issue policies until the amount of three 4 

hundred thousand dollars, which shall be the total of such subscrip- 5 

tions, shall have been so subscribed, and a certificate signed by the 6 

president and a majority of the directors, certifying that the sub- 7 

scribers are known to them and that they believe them to be solvent 8 

and able to pay their subscriptions, has been deposited with and 9 

approved by the insurance commissioner. If a subscriber dies 10 

or becomes insolvent his subscription shall be cancelled, and if the 11 

amount of the subscription fund is thereby or otherwise reduced, 12 

the deficiency shall be made good by new subscriptions certified in 13 

the same manner as the original. Subscribers shall be entitled to 14 

annual dividends of two per cent upon the amount of their sub- 15 

scriptions from the profits of the company, and shall also be re- 16 

imbursed from future profits for all amounts of money they may pay 17 

the company for its uses under their agreement, with lawful interest 18 

thereon. 19 

The net profits or divisible surplus of such companies shall be an- 20 

nually divided among the insured whose policies terminated within 21 

the year, in proportion to the contribution of each to such profits or 22 

surplus, and such dividends shall be made only in scrip certificates 23 

payable only out of the accumulation of net profits or surplus, which 24 

accumulation shall constitute and be kept and invested by the com- 25 

pany as a separate fund in trust for the redemption of such scrip 26 

certificates and the contingent payment of losses and expenses as 27 

herein provided. Such certificates until redeemed shall be subject 28 

to future losses and expenses of the company and to be reduced 29 

if the redemption fund is drawn upon for the payment of such 30 

losses and expenses. But no part of the redemption fund shall be 31 

used for the payment of losses or expenses unless the cash assets of 32 

the company are insufficient therefor and except to the extent of 33 

the deficiency ; and if any portion thereof shall be used for such 34 

payment, the outstanding certificates shall be reduced in proportion, 35 

so that the redemption fund shall at all times equal the amount of 36 

the unredeemed certificates. The net income of the redemption 37 

fund shall be divided annually among the holders of its certificates ; 38 

or the company may make such certificates with a specific rate of 39 

interest payable from the income of its invested funds. As such 40 

profits accumulate and are invested, subscriptions of an equal amount 41 

shall be cancelled. The maximum of such accumulation of profits 42 

shall be three hundred thousand dollars, and all excess of profits 43 

above said amount shall be applied annually to the payment of the 44 

certificates in the order of their issue. The certificates shall be 45 

forthwith payable when the company shall cease to issue policies and 46 

the fund is no longer liable to be drawn upon for the payment of 47 

losses. 48 



pan^subTect Section 53. A mutual marine and a mutual fire and marine 1 
visions of the" msurance company organized prior to the twenty-first day of May 2 
Public statutes, in the year eighteen hundred and eighty-seven under any law of this 3 



Chap. 118.] insurance. 1145 

4 commonwealth shall remain subject to the provisions applicable to 1887, 214, § 53. 

5 each contained in sections one hundred and seventeen to one ' 

6 hundred and thirty, inclusive, of chapter one hundred and nineteen 

7 of the Public Statutes, notwithstanding the repeal of said chapter. 

8 Any such company may redeem its certificates of dividends of profits Redemption of 

9 when its permanent fund has been paid in cash and invested and certlficates - 

10 its surplus is sufficient for the purpose. The shareholders of the Reduction of 

11 permanent fund of any such company shall be entitled to not more dmdends - 

12 than five per cent semi-annual dividends thereon. 

1 Section 54. All domestic mutual marine insurance companies companies 

2 shall be subject to the provisions of sections forty and forty-one, and to §§%1> U aTd4i, 

3 each subscriber to the permanent fund, or agreement specified in fssi, 281, §§ 2-8. 

4 section fifty-two, of any such company shall be a member thereof ilJe' £52' 1 19' 

5 during the term of his subscription and entitled to one vote. g. s'.58,'§36.' 

c p. s. 119, § 121. 

1887, 214, § 54. 1894, 522, § 54. 

Personal Liability of Officers. 

1 Section 55. If a subscriber to the permanent fund or agreement For certifying 

2 of a mutual marine or mutual fire and marine insurance company 18 5i, asi. § w. 

• • • 1856 ^52 6 ^0 

3 fails to pay his subscription or any assessment thereon, and it is g. s*. 58,'§ 37.' 

4 proved that the president or a director certified falsely in regard to Ssf.^H.'f 55?" 

5 such subscriber, the person certifying shall be liable to the company ¥okr£y,l£i.' 

6 for such amount as the subscriber fails to pay. 12 Gray, 355. 

7 If any such company is at any time liable for losses beyond the For over. 

8 amount of its net assets the president and directors shall be person- issiTIsi?! 19. 

9 ally liable for all losses on insurance effected while the company g 5 I. lf,'§ § 38!' 
10 was in such condition. p. s. 119, § 123. 

FIRE INSURANCE. 

1 Section 56. All insurance companies authorized to transact fire Powers, etc., 

2 insurance business in this commonwealth may, in addition to the i896?uo. ame8 " 

3 business which they are otherwise authorized by law to do, insure [? 9 op! a^g 1 ." 

4 sprinklers, pumps and other apparatus erected or put in position 540 ^ 

5 for the purpose of extinguishing fires, against damage, loss or 

6 injury resulting from accidental causes, other than fire ; and may 

7 also insure any property which such companies are authorized to 

8 insure against loss or damage by fire, against damage, loss or injury 

9 by water or otherwise, resulting from the accidental breaking of or 

10 injury to such sprinklers, pumps or other apparatus, arising from 

11 causes other than fire ; and may also insure property against loss by 

12 bombardment. Contracts of insurance of these kinds shall not be 

13 incorporated in any contract of insurance against loss or damage by 

14 fire, but shall be contained in separate and distinct policies. The 

15 conditions of such policies, except policies of bombardment insur- 

16 ance, shall be prescribed by the insurance commissioner. 

1 Section 57. No insurance company shall knowingly issue any over-insur- 

2 fire insurance policy upon property within this commonwealth for bfdden. r " 

3 an amount which with any existing insurance thereon exceeds the r?|.W'§ 5 2 6 8. 

4 fair value of the property, nor for a longer term than seven years. Hi|; |||; | lf; 

1861,189. 1878, 132, §1. 1887, 214, § 57. 9 Met. 210. G. S*. 58,' § 24. 

1875,72, §1. P. S. 119, §§ 136, 178. 1894, 522, § 57. 10 Met. 215. 



1146 



INSURANCE. 



[Chap. 118. 



Liability for 
Are losses 
limited. 
1898, 571. 



If buildings insured against loss by fire, and situated within this 5 

commonwealth, are totally destroyed by fire, the company shall 6 

not be liable beyond the actual value of the insured property at the 7 

time of the loss or damage ; and if it shall appear that the insured 8 

has paid premiums on an amount in excess of said actual value, 9 

the assured shall be reimbursed the proportionate excess of pre- 10 

miums paid on the difference between the amount named in the 11 

policy and said actual value, with interest at six per cent per 12 

annum from the date of issue ; and said excess of premiums and 13 

interest thereon shall be allowed the insured from the time any 14 

company or companies carrying said insurance at the time of the 15 

loss have continuously carried the insurance on the destroyed 16 

building or buildings, whether under policies existing at the time 17 

of the loss or under previous policies in the same company or 18 

companies. 19 



Payment to 
mortgagees 
protected by 
policies. 
1878, 132, § 2. 
P. S. 119, § 137. 
1887, 214, § 58. 
1894, 522, § 58. 
168 Mass. 147. 



Section 58. If by an agreement with the insured or by the 
terms of a fire insurance policy taken out by a mortgagor the 
whole or any part of the loss thereon is payable to a mortgagee or 
mortgagees of the property or for their benefit, the company shall, 
upon satisfactory proof of the rights and title of the parties, in 
accordance with such terms or agreement, pay all mortgagees 
protected by such policy in the order of their priority of claim as 
their claim shall appear, not beyond the amount for which the 
company is liable, and such payment shall be to the extent thereof 
payment and satisfaction of the liability of the company under such 
policy. 



1 

2 
3 
4 
5 
6 
7 
8 
9 
10 
11 



Applications 
and by-laws 
not warranties, 
except. 
1861, 152. 
1864, 196. 
1881, 166. 
P. S. 119, § 138. 
1887, 214, § 59. 
1894, 522, § 59. 



Section 59. In all insurance against loss by fire the conditions 1 

of insurance shall be stated in full, and neither the application of the 2 

insured nor the by-laws of the company shall be considered as a 3 

warranty or a part of the contract, except so far as they are in- 4 

corporated in full into the policy. 7 Alien, 42, 132. 98 Mass. 420. 5 



105 Mass. 298. 
118 Mass. 393. 



120 Mass. 254. 
145 Mass. 426. 



163 Mass. 112. 
165 Mass. 462. 



170 Mass. 277. 
172 Mass. 280. 



Standard form 
of fire policy 
to be used, 
except. 

1873, 331, §§ 1, 2. 
1S80, 175, § 1. 
1881, 166, §§ 1, 3. 

Name, loca- 
tion, etc. 



Section 60. No fire insurance company shall issue fire insur- 
ance policies on property in this commonwealth, other than those 
of the standard form herein set forth, except as follows : 



P. S. 119, § 139. 



1887, 214, § 60. 



1894, 522, § 60. 



Printed forms 
of description. 

Lightning 
clause. 
1880, 175, § 2. 



First, A company may print on or in its policies its name, 
location and date of incorporation, the amount of its paid up capital 
stock, the names of its officers and agents, the number and date of 
the policy, and, if it is issued through an agent, the words " This 
policy shall not be valid until countersigned by the duly authorized 
agent of the company at ." 

Second, A company may print or use in its policies printed 
forms of description and specification of the property insured. 

Third, A company insuring against damage by lightning may 
print, in the clause enumerating the perils insured against, the 
additional words ' ' Also any damage by lightning, whether fire 
ensues or not", and, in the clause providing for an apportionment 
of loss in case of other insurance, the words "whether by fire, 
lightning or both". 



1 

2 
3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 



Chap. 118.] insurance. 1147 

18 Fourth, A company incorporated or formed in this common- sundry 

19 wealth may print in its policies any provisions which it is authorized P rovisions - 

20 or required by law to insert therein ; and any company not incor- 

21 porated or formed in this commonwealth may, with the approval 

22 of the insurance commissioner, so print any provision required by 

23 its charter or deed of settlement, or by the laws of its own state or i 

24 country, not contrary to the laws of this commonwealth ; but the 

25 insurance commissioner shall require any provision which, in his 

26 opinion, modifies the contract of insurance in such way as to affect 

27 the question of loss, to be appended to the policy by a slip or rider 

28 as hereinafter provided. 

29 Fifth, The blanks in said standard form mav be filled in print Blanks filled 

nn ... J r in print or 

30 or writing. writing. 

31 Sixth, A company may print upon policies issued in compliance "Massacnu- 

32 with the preceding provisions of this section the words " Massachu- Poifcy^u^df 

33 setts Standard Policy." 

34 Seventh, A company may write upon the margin or across the other provi- 

35 face of a policy, or write, or print in type not smaller than long fi°op.A.G. 

36 primer, upon separate slips or riders to be attached thereto, pro- i° 4 > 431 -] 

37 visions adding to or modifying those contained in the standard 

38 form ; and all such slips, riders and provisions must be signed by 

39 the officers or agent of the company so using them. 

40 Said standard form of policy shall be plainly printed, and no Poiicytobe 

41 portion thereof shall be in type smaller than long primer, and shall printed, etc. 

42 be as follows : 

No. $ 

[Corporate name of the company or association ; its principal place or places Standard farm 
of business.] of policy. 

This company shall not be liable beyond the actual value of the insured prop- 
erty at the time any loss or damage happens. 

In consideration of dollars to it paid by the insured, hereinafter named, 

the receipt whereof is hereby acknowledged, does insure and legal 

representatives against loss or damage by fire, to the amount of dollars. 

(Description of property insured.) 

Bills of exchange, notes, accounts, evidences and securities of property of Property not 
every kind, books, wearing apparel, plate, money, jewels, medals, patterns, policy. 7 
models, scientific cabinets and collections, paintings, sculpture and curiosities are 
not included in said insured property, unless specially mentioned. 

Said property is insured for the term of , beginning on the day Term, 

of , in the year nineteen hundred and , at noon, and continuing until 189 °' 59 > $ 3 * 

the day of , in the year nineteen hundred and , at noon, against 

all loss or damage by fire originating from any cause except invasion, foreign Perils insured 
enemies, civil commotions, riots, or any military or usurped power whatever; a s ain8t - 
the amount of said loss or damage to be estimated according to the actual value 
of the insured property at the time when such loss or damage happens, but not 
to include loss or damage caused by explosions of any kind unless fire ensues, 
and then to include that caused by fire only. 

This policy shall be void if any material fact or circumstance stated in writing Matters avoid, 
has not been fairly represented by the insured, — or if the insured now has or i^^g 1 ^. 
shall hereafter make any other insurance on the said property without the assent 112 Mass. 136. 
in writing or in print of the company, — or if, without such assent, the said i|i Mass. 164, 
property shall be removed, except that, if such removal shall be necessary for 136 Mass. 108. 
the preservation of the property from fire, this policy shall be valid without such \H jy}^; gf 9( 
assent for five days thereafter, — or if, without such assent, the situation or 426. 
circumstances affecting the risk shall, by or with the knowledge, advice, agency 150 Mass'. 374*. 
or consent of the insured, be so altered as to cause an increase of such risks, or 153 Mass. 475. 
if, without such assent, the said property shall be sold, or this policy assigned, or {53 Mass! 475! 
if the premises hereby insured shall become vacant by the removal of the owner 162 Mass. 479. 
or occupant, and so remain vacant for more than thirty days without such assent, 17 ° Mas8, 492, 



1148 



INSURANCE. 



[Chap. 118. 



Insured prop- 
erty exposed 
to nre to be 
protected. 

Statement by 
insured in case 
of Joss. 
140 Mass. 38. 
145 Mass. 582. 
150 Mass. 160. 
152 Mass. 263. 
164 Mass. 3S2. 



Payment of 
loss to be made 
within sixty 
days after 
proof, unless 
insurer elects 
to rebuild or 



repair. 
142 Mass. 



142. 



Apportion, 
ment of loss iu 
case of other 
insurance. 
118 Mass. 465. 

Claims against 
third parties 
to be assigned 
to company. 

Rights of 
parties in case 
policy is made 
payable to 
mortgagee. 

Proviso. 

142 Mass. 142. 

166 Mass. 189. 

210. 

168 Mass. 147. 



Cancellation 
of policy. 



Differences to 
be submitted 
to referees. 
138 Mass. 572. 



or if it be a manufacturing establishment, running, in whole or in part, extra time, 
except that such establishments may run, in whole or in part, extra hours not 
later than nine o'clock p.m., or if such establishments shall cease operation for 
more than thirty days without permission in writing indorsed hereon, or if the 
insured shall make any attempt to defraud the company either before or after 
the loss, — or if gunpowder or other articles subject to legal restriction shall be 
kept in quantities or manner different from those allowed or prescribed by law, 
— or if camphene, benzine, naphtha, or other chemical oils or burning fluids 
shall be kept or used by the insured on the premises insured, except that what 
is known as refined petroleum, kerosene or coal oil, majr be used for lighting, 
and in dwelling houses kerosene oil stoves may be used for domestic purposes, 
— to be filled when cold, by daylight, and with oil of lawful fire test only. 

If the insured property shall be exposed to loss or damage by fire, the insured 
shall make all reasonable exertions to save and protect the same. 

In case of any loss or damage under this policy, a statement in writing, signed 
and sworn to by the insured, shall be forthwith rendered to the company, setting 
forth the value of the property insured, the interest of the insured therein, all 
other insurance thereon, in detail, the purposes for which and the persons by 
whom the building insured, or containing the property insured, was used, and 
the time at which and manner in which the fire originated, so far as known to 
the insured. The company may also examine the books of account and vouchers 
of the insured, and make extracts from the same. 

In case of any loss or damage, the company, within sixty days after the insured 
shall have submitted a statement, as provided in the preceding clause, shall 
either pay the amount for which it shall be liable, which amount if not agreed 
upon shall be ascertained by award of referees as hereinafter provided, or re- 
place the property with other of the same kind and goodness, — or it may, within 
fifteen days after such statement is submitted, notify the insured of its intention 
to rebuild or repair the premises, or any portion thereof separately insured by 
this policy, and shall thereupon enter upon said premises and proceed to rebuild 
or repair the same with reasonable expedition. It is moreover understood that 
there can be no abandonment of the property insured to the company, and that 
the company shall not in any case be liable for more than the sum insured, with 
interest thereon from the time when the loss shall become payable, as above 
provided . 

If there shall be any other insurance on the property insured, whether 
prior or subsequent, the insured shall recover on this policy no greater propor- 
tion of the loss sustained than the sum hereby insured bears to the whole amount 
insured thereon. And whenever the company shall pay any loss, the insured 
shall assign to it, to the extent of the amount so paid, all rights to recover satis- 
faction for the loss or damage from any person, town or other corporation, 
excepting other insurers ; or the insured, if requested, shall prosecute therefor 
at the charge and for the account of the company. 

If this policy shall be made payable to a mortgagee of the insured real estate, 
no act or default of any person other than such mortgagee or his agents, or those 
claimino- under him, shall affect such morto-ao-ee's rio-ht to recover in case of 
loss on such real estate : provided, that the mortgagee shall, on demand, pay 
according to the established scale of rates for any increase of risks not paid for 
by the insured ; and whenever this company shall be liable to a mortgagee for 
any sum for loss under this policy, for which no liability exists as to the mort- 
gagor, or owner, and this company shall elect by itself, or with others, to pay 
the mortgagee the full amount secured by such mortgage, then the mortgagee 
shall assign and transfer to the companies interested, upon such payment, the 
said mortgage, together with the note and debt thereby secured. 

This policy may be cancelled at any time at the request of the insured, who 
shall thereupon be entitled to a return of the portion of the above premium 
remaining, after deducting the customary monthly short rates for the time this 
policy shall have been in force. The company also reserves the right, after 
giving written notice to the insured, and to any mortgagee to whom this policy 
is made payable, and tendering to the insured a ratable proportion of the pre- 
mium, to cancel this policy as to all risks subsequent to the expiration of ten 
days from such notice, and no mortgagee shall then have the right to recover as 
to such risks . 

In case of loss under this policy and a failure of the parties to agree as to the 
amount of loss, it is mutually agreed that the amount of such loss shall be 
referred to three disinterested men, the company and the insured each choosing 



Chap. 118.] insurance. 1149 

one out of three persons to be named by the other, and the third being selected 1*0 Mass. 343. 
by the two so chosen ; the award in writing by a majority of the referees shall \H Matt'. 335! 
be conclusive and final upon the parties as to the amount of loss or damage, and 15* Mass. 77. 
such reference unless waived by the parties shall be a condition precedent to any 171 Mass! 433'. 
right of action in law or equity to recover for such loss; but no person shall be 
chosen or act as a referee, against the objection of either party, who has acted 
in a like capacity within four months. 

.No suit or action against this company for the recovery of any claim by virtue Suit or action 
of this policy shall be sustained in any court of law or equity in this Common- to becom- 
wealth unless commenced within two years from the time the loss occurred. two years. 

In witness whereof the said company has caused this policy to be signed 

by its president and attested by its secretary [or by such proper officers as may 
be designated] , at their office in 
[date] . 

43 In case of loss under any fire insurance policy, issued on property Proceedings in 

44 in this commonwealth, in the standard form above set forth, and to choose 11 ure 

45 the failure of the parties to agree as to the amount of loss, the Hsl^i.' etc " 

46 insurance company shall, within ten days after a written request to ^g H)- 

47 appoint referees under the provision for arbitration in such policy, 1897 > 357 - 

48 name three men under such provision, each of whom shall be a 

49 resident of this commonwealth and willing to act as one of such 

50 referees, of whom the insured shall, within ten days after receiving 

51 said names, make known to the insurance company its choice of one 

52 of them to act as one of such referees ; and such insurance company 

53 shall, within ten days after receiving the names of three men named 

54 by the insured under such provision, make known to the insured 

55 its choice of one of them to act as one of such referees. And in 

56 case of the failure of two referees, chosen, respectively, by the in- 

57 surance company and the insured, to agree upon and select within 

58 ten days from their appointment a third referee willing to act in said 

59 capacity, either of said referees or parties may within twenty days 

60 from the expiration of said ten days make written application, set- 

61 ting forth the facts, to the insurance commissioner to appoint such 

62 third referee ; and said commissioner shall thereupon make such 

63 appointment and shall send written notification thereof to the parties. 

64 In every case of the appointment by the insurance commissioner of 

65 said third referee the insuring company or companies shall withhold 
Q6 from the amount of the award rendered one-half of the compensation 

67 and expenses of said referee, and said company or companies shall 

68 thereupon pay to said referee the full amount of his compensation 

69 and expenses. 

FIDELITY INSURANCE AND CORPORATE SURETY. 

1 Section 61. A company organized under the provisions of ™^° f ay 

2 this chapter or the corresponding provisions of earlier laws or char- j^°|^ s - g 4 

3 tered by any other state or government to transact fidelity insurance lag! *«• ' 

J J ,. -1 l • r> i 1 it • • j_1 • 1807, 214, t) bl. 

4 and corporate suretyship, and qualified to do business in this com- \m, in, § 1. 

1 J , r ' . ^ , -. . , , ,1 1894, 522, § 61. 

5 monwealth, may make contracts of insurance to guarantee the 1896, 346, 861. 

6 fidelity of persons holding positions of trust in private or public nop^.U" 

7 employment or responsibility, and may, if accepted and approved ""O 

8 by the court, magistrate, obligee or person competent to approve 

9 such bond, act as surety upon the official bond or undertaking in 

10 civil procedure of any person or corporation to the United States, 

11 to this commonwealth, or to any county, city, town, judge of pro- 

12 bate and insolvency or other court, sheriff, magistrate or public 



1150 



INSURANCE. 



[Chap. 118. 



Sole surety in 
certain cases. 



— on probate 
bonds, though 
non-resident. 



Limit of 
liability. 



Sureties may 
covenant 
against loss in 
certain cases. 
1893, 117, § 2. 



Record. 
1893, 117, § 3. 



officer, or to any corporation or association public or private : and 13 

also may act as surety upon any bond or undertaking to any person 14 

or corporation or to the commonwealth conditioned upon the per- 1 5 

formance of any duty or trust or for the doing or not doing of 16 

anything in said bond specified, and upon bonds to indemnify 17 

against loss any person or persons who are responsible as surety or 18 

sureties upon a written instrument or otherwise for the perform- 19 

ance by others of any office, employment, contract or trust. If by 20 

law two or more sureties are required upon any obligation such 21 

company is authorized to insure, it may act as sole surety thereon, 22 

and may be accepted as such by the court, magistrate or other officer 23 

or person authorized to approve the sufficiency of such bond or un- 24 

dertaking ; and so much of section nine of chapter one hundred and 25 

forty-nine as requires that sureties on bonds to a judge of probate 26 

shall be residents of the commonwealth shall not forbid the accept- 27 

ance of a qualified foreign corporation as joint or sole surety on 28 

any such bond. A bond given by it under the provisions of section 29 

twenty-four of chapter one hundred and ten, section fifteen of 30 

chapter one hundred and thirteen or section seven of chapter one 31 

hundred and fourteen, shall be in a form approved by the commis- 32 

sioner of corporations or the commissioners of savings banks, re- 33 

spectively, and an attested copy of such bond, with a certificate of 34 

the custodian that the original is in his possession, shall be filed 35 

with him or them, respectively. No such company shall incur in 36 

behalf or on account of any one person, partnership, association or 37 

corporation a liability for an amount larger than one-tenth of its 38 

paid up capital, unless it shall be secured from loss thereon beyond 39 

that amount by suitable and sufficient collateral agreements of in- 40 

demnity, by deposit with it in pledge or conveyance to it in trust 41 

for its protection of property equal in value to the excess of its 42 

liability over such limit, or, if such liability is incurred in behalf 43 

or on account of a fiduciary holding property in a trust capacity, 44 

by such deposit or other disposition of a suitable and sufficient por- 45 

tion of the estate so held that no further sale, mortgage, pledge or 46 

other disposition can be made thereof without such company's ap- 47 

proval, except by the decree of a court having proper jurisdiction. 48 

Any person, partnership, association or corporation holding 49 

property for the benefit of another, except when acting under wills 50 

allowed or trusts created before the twenty-fourth day of April in 51 

the year eighteen hundred and ninety- three, may make such cove- 52 

nants with the surety or sureties upon his official bond as shall 53 

enable such fiduciary to secure said surety or sureties from loss in 54 

any manner provided by this section ; but if such fiduciary was 55 

appointed by the decree of any court within this commonwealth, 56 

the approval of such court shall first be obtained to such covenant. 57 
A copy of such covenant, duly acknowledged in the manner 
required for the acknowledgment of deeds of real estate, may be 
filed and recorded as follows : in the office of the clerk or registrar 
of the court in which said fiduciary obtained his appointment ; if 

not appointed by the decree of court, in the manner provided by 62 

law for the record of deeds of real estate, if said covenant relates to 63 

real estate, or mortgages of personal property, if said covenant 64 

relates to personal property. Such record shall be notice to and 65 

binding on all persons. 6Q 



58 
59 
60 
61 



Chap. 118.] insurance. 1151 



TITLE INSURANCE. 

1 Section 62. Companies organized under the tenth clause of fgff^fu 

2 section twenty-nine shall not be subject to the provisions of this 18S7,' 214', § 62. 

3 chapter except as regards the manner of their formation and as rio'p. a. g. ' 

4 follows : ' J 

5 Any such corporation, before it shall issue any policy or make certificate 

6 any contract of guarantee or insurance, shall file with the insurance i8^iso!'§4. 

7 commissioner a certified copy of the record of its certificate of its 

8 organization in the office of the secretary of the commonwealth, and 

9 shall obtain from the insurance commissioner his certificate that it 

10 has complied with the laws applicable to it and is authorized to do 

11 business. 

12 Every such corporation shall, on or before the fifteenth day of mentf l8tate ' 

13 January of each year, file in the office of the insurance commissioner 1884 > i8o. § 3. 

14 a statement such as he may require of its condition and of its affairs 

15 for the year ending on the preceding thirty-first day of December, 

16 signed and sworn to by its president or secretary or treasurer and 

17 one of its directors, and, for neglect to file such annual statements 

18 or for making a wilfully false statement, shall be liable to the same 

19 penalties as are imposed upon insurance companies. The insurance visitation. 

20 commissioner shall have the same power and authority to visit and 

21 examine such corporations as he has in the case of domestic insurance 

22 companies, and the duties and liabilities of such corporations and 

23 their agents relative to such examination shall be the same as those 

24 of domestic insurance companies. 

1 Section 63. Every such corporation shall set apart an amount j^ 1 a d rant J r 

2 not less than two-fifths of its capital, and not less than one hundred investment. 

3 thousand dollars in anv case, as a guaranty fund, and shall. invest i887| 2u| § 63. 

a -i. • xi -j.- • i • i i j.' • • • 1894,522,5 63. 

4 it in the securities in which domestic insurance companies may m- 

5 vest their capital, and shall issue no policy and make no contract of 

6 guaranty or insurance until such amount is so set apart and in- 

7 vested. 

8 The principal of such guaranty fund shall be a trust for the pro- 

9 tection of policy holders and shall be applied only to the payment 

10 of losses and expenses incurred by reason of the guaranty or insur- 

11 ance contracts of the corporation. Whenever the corporation shall 

12 increase its capital, two-fifths or a sufficient part of the increase shall 

13 be set apart and duly invested and added to the guaranty fund so 

14 that such fund shall always be not less in amount than two-fifths of 

15 the entire capital. 

16 If,' : by reason of losses or other cause, the guaranty fund is less 

17 than two-fifths of the capital, the company shall make no further con- 

18 tract of guaranty or insurance until the fund is made good. 

1 Section 64. A company organized under the authority of chap- Application oi 

2 ter one hundred and eighty of the acts of the year eighteen hundred sSons ng 

3 and eighty-four, section sixty-two of chapter two hundred and Jgg; |$; j {& 

4 fourteen of the acts of the* year eighteen hundred and eighty-seven, 

5 section sixty-two of chapter five hundred and twenty-two of the 

6 acts of the year eighteen hundred and ninety-four or the tenth clause 

7 of section twenty-nine of this chapter shall be subject to the pro- 

8 visions of the two preceding sections. 



1152 



INSURANCE. 



[Chap. 118. 



Examination 
and insurance 
of titles. 
1889, 378. 



Such companies may examine titles and furnish information rela- 9 

tive to both personal property and real estate, and may insure 10 

owners of both real estate and personal property, and others inter- 11 

ested therein, against loss by reason of encumbrances and defective 12 

titles. 13 



Definition. 
1870, 349, § 5. 
1872, 325, § 7. 
1875, 107, § 1. 
1877, 204, § 2. 
1880, 196, § 4. 
P. S. 119, § 154. 
1887, 214, § 65. 
1894, 522, § 65. 



Assessment 
contracts. 
1899, 229, &§ 4, 5. 



LIFE INSURANCE. 

Section 65. All corporations, associations, partnerships or 
individuals doing business in this commonwealth under any charter, 
compact, agreement or statute of this or any other state, involving 
the payment of money or other thing of value to families or repre- 
sentatives of policy and certificate holders or members, conditioned 
upon the continuance or cessation of human life, or involving an 
insurance, guaranty, contract or pledge for the payment of endow- 
ments or annuities shall be deemed to be life insurance companies, 
and shall not make any such insurance, guaranty, contract or pledge 
in this commonwealth, or to or with any citizen or resident thereof, 
which does not distinctly state the amount of benefits payable, 
the manner of payment and the consideration therefor, nor any 
such insurance, guaranty, contract or pledge, the performance of 
which is contingent upon the payment of assessments made upon 
survivors. 

All life insurance business hereafter transacted by corporations 
which formerly issued policies or certificates on the assessment 
plan under chapter four hundred and twenty-one of the acts of the 
year eighteen hundred and ninety and acts in amendment thereof, 
shall be carried on in accordance with the provisions of this 
chapter ; but such corporations may carry out in good faith their 
assessment contracts made with their members prior to the first 
day of July in the year eighteen hundred and ninety-nine. 



1 
2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 



Business to 
cease after 
notice. 
1863, 148. 
P. S. 119, § 155. 
1887, 214, § 66. 
1894, 522, § 66. 



Section QQ. No life insurance company, after notice as provided 1 

in sections seven and nine, shall issue new policies under its 2 

authority to do business in this commonwealth until its funds have 3 

become equal to its liabilities and it has complied with the laws as 4 

provided in said sections, and has obtained from the insurance 5 

commissioner a certificate to that effect, with license to resume 6 

business. 7 



Section 67. A company organized under the laws of any other 



Admission of 
foreign life 

i8- mp i3o ie ssi 7 °^ ^ e United States for the transaction of life insurance may be 
p. s. U9, § 2i8.' admitted to do business in this commonwealth, if it has the requisite 
i§94,' 522; § 67." funds of a life insurance company and, in the opinion of the 



[1 Op. A. G. 

269 - 



269.] 



commissioner, is in sound financial condition and has policies in 
force upon not less than one thousand lives for an aggregate amount 
of not less than one million dollars. Any such company organized 
under the laws of a state or government other than one of the 
United States, in addition to the above requirements, shall have 
and keep on deposit or in the hands of trustees, as provided in sec- 
tions seventy-nine and eighty-one, in exclusive trust for the 
security of its contracts with policy holders in the United States, 12 
funds of an amount equal to the net value of all its policies in the 13 
United States and not less than two hundred thousand dollars. 14 



1 

2 
3 
4 
5 
6 
7 
8 
9 
10 
11 



Chap. 118.] insurance. 1153 

1 Section 68. No life insurance company doing business in this Discrimma. 

2 commonwealth shall make or permit any distinction or discrimina- wmtecL " 

3 tion in favor of individuals between insurants of the same class and i|||; ^|; f U; 

4 equal expectation of life in the amount or payment of premiums or 

5 rates charged for policies of life or endowment insurance, or in the 

6 dividends or other benefits payable thereon, or in any other of the' 

7 terms and conditions of the contracts it makes ; nor shall any such 

8 company or any agent thereof make any contract of insurance, or 

9 agreement as to such contract, other than as plainly expressed in 

10 the policy issued thereon ; nor shall any such company or agent 

11 pay or allow, or offer to pay or allow as inducement to insurance, 

12 any rebate of premium payable on the policy, or any special favor 

13 or advantage in the dividends or other benefit to accrue thereon, or 

14 any valuable consideration or inducement not specified in the policy 

15 contract of insurance. 

1 Section 69. No life insurance company shall make any dis- coiordis- 

2 tinction or discrimination between white persons and colored forbidden. 11 

3 persons wholly or partially of African descent, as to the premiums if!?' |f|' | eg. 

4 or rates charged for policies upon the lives of such persons ; nor 1894 > 522 > § 69 - 

5 shall any such company demand or require greater premiums from 

6 such colored persons than are at that time required by such company 

7 from white persons of the same age, sex, general condition of 

8 health and prospect of longevity, nor shall any such company 

9 make or require any rebate, diminution or discount upon the 

10 amount to be paid on such policy in case of the death of such 

11 colored person insured, nor insert in the policy any condition, nor 

12 make any stipulation whereby such person insured shall bind him- 

13 self or his heirs, executors, administrators and assigns to accept any 

14 amount less than the full value or amount of such policy in case 

15 of a claim accruing thereon by reason of the death of such person 

16 insured, other than such as are imposed upon white persons in 

1 7 similar cases ; and any such stipulation or condition so made or 

18 inserted shall be void. 

19 Any such company which shall refuse the application of any Physician's 

20 such colored person for insurance upon such person's life shall fur- up^refusai. 

21 nish such person, on his request therefor, with the certificate of a 1884 > 235 >§ 2 - 

22 regular examining physician of such company who made the exami- 

23 nation, stating that such refusal was not because such applicant is a 

24 person of color, but solely upon such grounds of the general health 

25 and prospect of longevity of such person as would be applicable to 

26 white persons of the same age and sex. 

1 Section 70. Every life insurance company doing business in this Surplus ac- 

2 commonwealth shall report in its annual statement the amount of statemenT nual 

3 forfeitures and undivided surplus on lapsed or terminated policies HH; |M; 1 70! 

4 which it holds for or which is to accrue to the benefit of any class of 

5 its policy holders, whether dividends thereof have been declared or 

6 allotment made, and whether said amount is liable for obligations of 

7 the company until distribution thereof is made ; also the amount of 

8 surplus accrued from and contributed by its policies in force which 

9 has not been ordered to be distributed nor included in the annual 

10 statement as dividends due to policy holders nor appropriated to the 

11 permanent safety fund under the provisions of section seventy-five. 



1154 



INSURANCE. 



[Chap. 118. 



Medical exam- 
ination. 
1895, 366. 



Section 71. No life insurance company organized under the 
laws of or doing business in this commonwealth shall enter into any 
contract of insurance upon lives within this commonwealth without 
having previously made or caused to be made a prescribed medical 
examination of the insured by a registered medical practitioner. 

Any insurance company violating the provisions of this section, 



or any officer, 



agent 



or other person soliciting or effecting, or 



attempting to effect, a contract of insurance contrary to the pro- 
visions hereof, shall be punished by a fine of not more than one 
hundred dollars for each offence. 



1 

2 
3 
4 
5 
6 
7 
8 
9 
10 



Reinsurance 
by domestic 



Section 72. No domestic life insurance company shall reinsure 
^J?. ?™, 13 ? 1 ? 168- its risks except by permission of the insurance commissioner ; but 

IS t 4, 109, § 1. . J../A ,,/./» .,..■,,.•■ 

p. s. ii9, § 152. may reinsure not exceeding one-half of any individual risk. 

18S7, 214, § 72. 1894, 522, § 72. 



1 

2 
3 



Rights of 
creditor and of 
beneficiary. 
1844, 82. 
1847, 248. 
1854, 453, § 28. 
1856, 252, § 42. 
G. S. 58, § 62. 
1864, 197. 
P. S. 119, § 167. 
1887, 214, § 73. 

1892, 372. 

1893, 434. 

1894, 120; 225; 
522, § 73. 

11 Allen, 224. 
97 Mass. 359. 
99 Mass. 154, 
157, 342. 
101 Mass. 564. 
118 Mass. 219. 

131 Mass. 294. 

132 Mass. 408. 
153 Mass. 544. 

157 Mass. 47. 

158 Mass. 227. 

159 Mass. 575. 
164 Mass. 302. 
166 Mass. 1S9. 
170 Mass. 369. 
172 Mass. 498. 
Policies to 
married 
woman, etc., 
to inure to her 
benefit. 

1894, 120. 



Certain poli- 
cies issued 
without pre- 
vious medical 
examination 
to be valid. 
1892, 372. 
160 Mass. 386. 
162 Mass. 241. 



Copy of appli 
cation to be 
attached to cer- 
tain policies. 
1893, 434. 



Section 73. If a policy of insurance is effected by any per- 1 

son on his own life, or on another life, in favor of a person other 2 

than himself having an insurable interest therein, the lawful bene- 3 

ficiary thereof, other than himself or his legal representatives, shall 4 

be entitled to its proceeds, against the creditors and representa- 5 

tives of the person effecting the same ; and the person to whom a 6 

policy of life insurance, issued subsequent to the eleventh day of 7 

April in the year eighteen hundred and ninety-four, is made payable 8 

may maintain an action thereon in his own name : provided, that, 9 

subject to the statute of limitation, the amount of any premiums for 10 

said insurance paid in fraud of creditors, with interest thereon, shall 11 

inure to their benefit from the proceeds of the policy ; but the com- 12 

pany issuing the policy shall be discharged of all liability thereon 13 

by payment of its proceeds in accordance with its terms, unless, 14 

before such payment, the company shall have written notice by or 15 

in behalf of a creditor, with specification of the amount claimed, 16 

claiming to recover for certain premiums paid in fraud of creditors. 17 

Every policy of life insurance made payable to or for the benefit of 18 

a married woman, or after its issue assigned, transferred or in any 19 

way made payable to a married woman, or to any person in trust 20 

for her or for her benefit, whether procured by herself, her husband 21 

or by any other person, and whether the assignment or transfer is 22 

made by her husband or by any other person, shall inure to her 23 

separate use and benefit, and to that of her children, subject to the 24 

provisions of this section relative to premiums paid in fraud of 25 

creditors and those of section seventy-six. In any claim arising 26 

under a policy which has been issued in this commonwealth by any 27 

life insurance company, without previous medical examination, or 28 

without the knowledge and consent of the insured, or, if said in- 29 

sured is a minor, without the consent of the parent, guardian or 30 

other person having legal custody of said minor, the statements 31 

made in the application as to the age, physical condition, and 32 

family history of the insured shall be held to be valid and binding 33 

upon the company ; but the company shall not be debarred from 34 

proving as a defence to such claim that said statements were wil- 35 

fully false, fraudulent or misleading. Every policy which contains 36 

a reference to the application of the insured, either as a part of 37 

the policy or as having any bearing thereon, must have attached 38 



Chap. 118.] insurance. 1155 

39 thereto a correct copy of the application, and unless so attached the 165 Mass. 462. 

40 same shall not be considered a part of tbe policy or received in evi- /2Mass - m 

41 dence. Each application for such policy shall have printed upon copyofappii- 

42 it in large bold-faced type the following words : ' ' Under the laws nishedto 1 "" 

43 of Massachusetts, each applicant for a policy of insurance to be a PP licants - 

44 issued hereunder is entitled to be furnished with a copy of this 

45 application attached to any policy issued thereon." A solicitor, Penalties for 

46 agent, examining physician or other person who knowingly or wil- etc 86 a emen ' 

47 fully makes a false or fraudulent statement or representation in or 

48 relative to any application for life insurance, or who makes any 

49 such statement for the purpose of obtaining a fee, commission, 

50 money or benefit in a corporation transacting such business under 

51 the provisions of this chapter, shall be punished by a fine of not 

52 less than one hundred nor more than five hundred dollars or by 

53 imprisonment for not less than thirty days nor more than one year, 

54 or by both such fine and imprisonment ; and a person who wilfully 

55 makes a false statement of an}^ material fact or thing in a sworn 

56 statement as to the death or disability of a policy or certificate 

57 holder in any such corporation, for the purpose of procuring pay- 

58 ment of a benefit named in the certificate of such holder, shall be 

b9 guilty of perjury. No life insurance company transacting business Terms of con- 

60 under the provisions of this chapter shall issue a policy to a resident d r e a scribed e on 

61 of this commonwealth, which does not bear in bold letters upon its {$<&, il£ ollcy ' 

62 face a plain description of the policy, so fully defining its character, 

63 including dividend periods and other peculiarities, that the holder 

64 thereof shall not be liable to mistake the nature or scope of the 

65 contract. 

Hights of Policy Holders in Domestic Mutual Life Companies. 

1 Section 74. Every person insured by a domestic mutual life Members, etc. 

2 insurance company shall be a member entitled to one vote, and one p.'s. 119, §153. 

3 vote additional for each five thousand dollars of insurance in excess i 894 ; 522; § 74! 

4 of the first five thousand dollars, and shall be notified of its annual 

5 meetings by written notice or by an imprint in the form prescribed 

6 in section forty, upon the back of each policy, receipt or certificate 

7 of renewal. 

8 Members may vote by proxies dated and executed within three Proxies. 

9 months, and returned and recorded on the books of the company 

10 seven days or more before the meeting at which they are to be used ; 

11 but no person shall, as attorney or otherwise, cast more than twenty 

12 votes, and no officer shall liimself, or by another, ask for, receive, 

13 procure to be obtained or use a proxy to vote. 

1 Section 75. The stockholders of the guaranty capital of any Guaranty oapi- 

2 such company shall be entitled to such annual dividends not exceed- r edUnpti<S! 8 ' 

3 ing eight per cent, payable from the net surplus, as may have been HStft|S 

4 agreed upon in the subscription thereof. Any such company may f 8(j f ; 3 5 |; § 60 - 

5 redeem its guaranty capital by appropriation of net surplus for that wo, 349, § e. 

6 purpose if its members so vote. p. s. 119, §§ 145, 147-150. 

1887, 214, §§ 72, 75. 1894, 522, §§ 72, 75. 1900, 363, § 2. 142 Mass. 403. 

7 The directors of any domestic life insurance company, out of the nisMbution 

8 funds remaining after providing for the reserve required by the pro- ° 

9 visions of section eleven and for all other liabilities, may from time 



1156 



INSURANCE. 



[Chap. 118. 



to time make to policy holders not in arrears distributions of sur- 10 

plus not inconsistent with the terms of their policies. Such distri- 11 

butions to policy holders shall be made upon the contribution to 12 

surplus plan. 13 



Non-forfeiture 
of policies. 
1861, 1S6. 
1877, 61. 

1880, 232. 

1881, 63. 

P. S. 119, §§ 159- 
166. 

1887, 214, § 76. 
1894, 522, § 76. 
1896, 470. 
1900, 363, § 3. 
100 Mass. 500. 
103 Mass. 254. 
109 Mass. 430. 
120 Mass. 503. 
123 Mass. 113. 
127 Mass. 153. 
131 Mass. 64. 
170 Mass. 254. 

Paid up and 
cash surrender 
values. 



Section 76. All policies issued prior to the first day of January 
in the year nineteen hundred and one by any domestic life insurance 
company shall be subject to the provisions of law limiting forfeiture 
which are applicable and in force at the date of their issue. No 
policy of life or endowment insurance issued by any such company 
after the thirty-first day of December in the year nineteen hundred 
shall become forfeit or void for non-payment of premium after three 
full annual premiums have been paid thereon ; but in case of default 
in the payment of any subsequent premium, then without any 
further stipulation or act such policy shall be binding upon the 
company for the amount of paid up insurance which the then net 
value of the policy and all dividend additions thereon, computed by 
the rule of section eleven, less any indebtedness to the company on 
account of said policy, and less the surrender charge provided 
herein, will purchase as a net single premium for life or endowment 

terminating at the time and in the manner 



insurance 



maturing or 



provided in the original policy contract ; and such default shall not 
change or affect the conditions or terms of the policy, except as 
regards the payment of premiums and the amount payable thereon. 
Said surrender charge, unless fixed at a smaller rate by the policy, 
shall be five per cent of the present value of the future net pre- 
miums at the date of default, which by its terms said policy is ex- 
posed to pay in case of its continuance, computed upon the rate of 
mortality and interest assumed in section eleven. But any com- 
pany may contract with its policy holders to furnish, in lieu of the 
paid up insurance provided for in this section, any other form of 
life insurance lawful in this commonwealth, of not less value. 
Every such paid up policy shall have a cash surrender value, which 
shall be its net value, less any indebtedness to the company on ac- 
count of said policy, and every policy which by its own terms has 
become paid up shall have a cash surrender value, which shall be 
its net value, less five per cent of one net premium, and the holder 
of any paid up policy may upon any anniversary of its issue sur- 
render the same and claim and recover from the company such sur- 
render value in cash. But no surrender of a policy shall be made 
without the written assent of the person to whom the policy is 
made payable. On policies of prudential or industrial insurance 
on which the weekly premiums are not more than fifty cents each 
the surrender value shall in all cases be payable in cash, which shall 
be a legal claim for not more than two years from the date of lapse. 
Any condition or stipulation in the policy or elsewhere which is 
contrary to the provisions of this section, and any waiver of such 
provisions by the insured, shall be void. 



1 

2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
38 
39 
40 
41 
42 
43 



FOREIGN COMPANIES. 

i887 m 2n i0 §77 Section 77. Foreign insurance companies, upon complying with 

i89e' 124' § ?7 ' ^ ie con ditions herein set forth applicable to such companies, may 
i6o Mass. 413. be admitted to transact in this commonwealth by constituted agents 



1 
2 
3 



Chap. 118.] insurance. 1157 

4 resident therein any class of insurance authorized by the laws of 

5 this commonwealth, subject to all general laws now or hereafter 

6 in force relative to insurance companies, and subject to all laws 

7 applicable to the transaction of such business by foreign insurance 

8 companies and their agents ; but no provision of law which by its 

9 terms applies specifically to domestic life insurance companies shall 
10 thereby become applicable to foreign life insurance companies. 

Conditions of Admission of Foreign Companies. 

1 Section 78. No foreign insurance company shall be so admitted admfssion Sof 

2 and authorized to do business until — 152 Mass. 432. 

160 Mass. 413. [1 Op. A. G. 1, 115.] 

3 First, It has deposited with the insurance commissioner a certi- ter P stateme a nt 

4 fied copy of its charter or deed of settlement and a statement of its of condition, 

5 financial condition and business, in such form and detail as he may ance affidavit. 

6 require, signed and sworn to by its president and secretary, or r. s. 37,'§ 40'. 

7 other proper officer, and has paid for the filing of such copy thirty 1I5I; 453,' f 35. 

8 dollars, and for the filing of such statement twenty dollars ; and, &ft. 2 58,'§7i." 

9 if to transact the business of fire insurance, has filed in the office of i 86 V267,§§i, 

10 the insurance commissioner a declaration signed and sworn to by ^s, |i7,§i. 

11 its president and secretary, or officers corresponding thereto, that it p. s. 119, § 199. 

1887 9 14 5 78 

12 will not reinsure any risk or part thereof taken by it on any prop- ci. 1! 

13 erty located in this commonwealth with any company not authorized i. 1. ' 

14 to transact the business of fire insurance in this commonwealth, if 9 GYa 8 y,' Jo!' 

15 except as provided in section twenty. 2 Alien, 39s. 

16 Second, It has satisfied the insurance commissioner that it is Proofoforgan. 

17 fully and legally organized under the laws of its state or govern- C apitai. an 

18 ment to do the business it proposes to transact; that it has, if a T'k^J^hf' 

19 stock company, a fully paid up and unimpaired capital, exclusive f|i 7j 273, §§ 2, 3. 

20 of stockholders' obligations of any description, of an amount not ilff' I5I' | gi 

21 less than is required of similar companies formed under the pro- 1856,' 252; §§ 44, 

22 visions of this chapter, and, if a mutual company, other than life, g.' s. 58, §§ 66, 

23 that it has net cash assets equal to the capital required of like com- im, 249, § 10. 

24 panies on the stock plan ; or that it possesses net cash assets of not if^f; f^ 5 ' § 16- 

25 less than one hundred thousand dollars or net cash assets of not less ^• U9,§§196 " 

26 than fifty thousand dollars, with also invested assets of not less than 1887, 214, § 78, 

27 one hundred thousand dollars and, in each case, with additional i|9|,' 522, § 78, 

28 contingent assets of not less than three hundred thousand dollars, i»96,' 270, § 1. 

29 and that such capital or net assets are well invested and immedi- 6 Gray,' 376.' 

30 ately available for the payment of losses in this commonwealth ; i f Sassff-k 

31 and that it insures on any single hazard an amount no larger than 

32 one-tenth of its net assets. 

33 Third, It has complied with the provisions of section four of £P a p C n ™ nt 

34 chapter one hundred and twenty-six. 

35 Fourth, It has appointed as its agent or agents in this common- Agents to be 

36 wealth some resident or residents thereof. 

1887, 214, § 78, cl. 4. 1894, 522, § 78, cl. 4. 

37 Fifth, It has obtained from the insurance commissioner a certifi- jj£ffity? of 

38 cate that it has complied with the laws of this commonwealth and ffi$£}$; 

39 is authorized to make contracts of insurance. JFI^iiil, 

1887, 214, § 78, cl. 5. 1894, 522, § 78, cl. 5. 

1 Section 79. Such foreign company, if incorporated or associ- f r "\^ 0U n a 

2 ated under the laws of any government or state other than the d 1 ^,£ , t nake 



1158 



INSURANCE. 



[Chap. 118, 



1878, 
P. S. 

1887, 
1894, 



130, 
119, 
214, 
522, 



§ § § 2 \g 7 ; United States or one of the United States, shall not be admitted 3 

|7.|- until, besides complying with the conditions of the preceding sec- 4 

tion, it has made a deposit with the treasurer and receiver general 5 

or with the financial officer of some other state of the United 6 

States, of an amount not less than the capital required of like 7 

companies under this chapter. Such deposit must be in exclusive 8 

trust for the benefit and security of all the company's policy holders 9 

and creditors in the United States, and may be made in the 10 

securities but subject to the limitations specified in section thirty- 11 

four, and such deposit shall be for all purposes of the insurance 12 

laws the capital of the company making it. 13 



One class of 
insurance 
only, except. 
1879, 130. 
1881, 51. 
P. S. 119, § 201. 
1887, 214, § 80. 
1889, 356. 
1891, 195. 

1894, 133, §3; 
522, § 80. 

1895, 474, § 3. 
155 Mass. 404. 
FlOp. A. G.19, 
47.] 



Section 80. No foreign insurance company admitted to do 
business in this commonwealth shall be authorized, except as other- 
wise provided, to transact more than one class or kind of insurance 
therein. But any company, domestic or foreign, engaged in this 



commonwealth in the sole business of life insurance 



may, in con- 



nection therewith, also engage in the business of insuring against 
bodily injury or death by accident, by increasing its capital to the 
amount now required of two separate companies engaged in either 
one of these two classes of business ; and no foreign company shall 
be allowed to transact both of said classes of business unless it 
possesses an aggregate capital equal to that required of two separate 
companies engaged in either one of these two classes of business ; 
but a company authorized to transact within this commonwealth 
the business authorized under the fourth or eighth clause of section 
twenty-nine of this chapter may also be permitted to transact the 
business authorized under the seventh clause of said section. 



1 
2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 



Trustees ap- 
pointed by- 
directors. 
1878, 130, §§ 2, 
3,7. 

P. S. 119, §§ 219, 
220. 

1887, 214, § 81. 
1894, 522, § 81. 



Assets of the 
company. 



Section 81. Any admitted company of a foreign country may 1 

appoint trustees, who are citizens of the United States and approved 2 

by the insurance commissioner, to hold funds in trust for the benefit 3 

of its policy holders and creditors in the United States. Said 4 

trustees shall be named by the directors of the company and a cer- 5 

tified copy of the record of the appointment of such trustees and 6 

of the deed of trust shall be filed in the office of the insurance 7 

commissioner, who may examine such trustees and the assets in 8 

trust and all books and papers relative thereto in the same manner 9 

as he may examine the officers, agents, assets and affairs of 10 

insurance companies. The funds so held by such trustees, so far 11 

as the same are in securities, money or credits admissible as sound 12 

assets in the financial accounts of insurance companies, shall, with 13 

its deposits made in accordance with section seventy-nine, consti- 14 

tute the assets of such company as regards its policy holders and 15 

creditors in the United States. 16 



Revocation of 
authority. 
1887, 214, § 82. 
1890, 304. 
1894, 522, § 82. 



Section 82. The authority of a foreign insurance company may 1 

be revoked if it violates or neglects to comply with any provision 2 

of law obligatory upon it, and if, in the opinion of the insurance 3 

commissioner, its condition is unsound or its assets above its lia- 4 

bilities, exclusive of capital and inclusive of unearned premiums 5 

estimated as provided in section eleven, are less than the amount of 6 

its original capital or required unimpaired funds. 7 



Chap. 118.] insurance. 1159 

Fire Insurance in Unauthorized Companies. 

1 Section 83. The insurance commissioner, upon the annual pay- insurance by 

2 ment of twenty dollars, may issue licenses to citizens of this ™mp t ani e I s Z . ed 

3 commonwealth, subject to revocation at anytime, permitting the 111; 214' §83 

4 person named therein to procure policies of fire or bombardment J 8 ||> 147 > 522 > 

5 insurance on property in this commonwealth in foreign insurance isas. sso, § 2. 

6 companies not authorized to transact business in this common- 

7 wealth. Before the person named in such license shall procure any 

8 insurance in such companies on any such property he shall in every 

9 case execute and file with the insurance commissioner an affidavit, 

10 which shall have force and effect for one year only from the date 

11 thereof, that he is unable to procure, in companies admitted to do 

12 business as aforesaid, the amount of insurance necessary to pro- 

13 tect said property, and shall only procure insurance under such 

14 license after he has procured insurance in companies admitted to 

15 do business as aforesaid to the full amount which said companies are 

16 willing to write on said property; but such licensed person shall 

17 not be required to file such affidavit if one relative to the same 

18 property has been filed within the preceding twelve months by any 

19 broker who has been licensed as authorized by this chapter, nor to 

20 offer any portion of such insurance to any company which is not 

21 possessed of cash assets amounting to at least twenty-five thousand 

22 dollars, nor to one which has within the preceding twelve months 

23 been in an impaired condition. Each person so licensed shall keep 

24 a separate account of the business done under the license, a certi- 

25 fied copy of which account he shall forthwith file with the insur- 

26 ance commissioner, showing the exact amount of such insurance 

27 placed for any person, firm or corporation, the gross premium 

28 charged thereon, the companies in which the same is placed, the 

29 date of the policies and the term thereof, and also a report in the 

30 same detail of all such policies cancelled, and the gross return 

31 premiums thereon, and before receiving such license shall execute 

32 and deliver to the treasurer and receiver general a bond in the 

33 penal sum of two thousand dollars, with such sureties as the treas- 

34 urer and receiver general shall approve, with a condition that the 

35 licensee will faithfully comply with all the requirements of this 

36 section, and will annually file with the treasurer and receiver 

37 general, in January, a sworn statement of the gross premiums 

38 charged for insurance procured or placed and the gross return 

39 premiums on such insurance cancelled under such license during 

40 the year ending on the thirty-first day of December last preceding, 

41 and at the time of filing such statement will pay into the treasury 

42 of the commonwealth an amount equal to four per cent of such gross 

43 premiums, less such return premiums so reported. 

Miscellaneous Provisions. 

1 Section 84. Foreign companies admitted to do business in this Resident 

1 • 'I ,r 01J t'8 

2 commonwealth shall make contracts of insurance upon lives, prop- 

3 erty or interests therein, only by lawfully constituted and licensed 

4 resident agents. No policy of insurance issued to a citizen of this Policy not 

5 commonwealth by an authorized company organized under the laws war. 1 ate y 

6 of a foreign country shall be invalidated by the occurrence of hos- p 87 |. n^l^V" 



1160 



INSURANCE. 



[Chap. 118. 



1883, 33, § 1. 
1887, 214, § 84. 
1894, 522, § 84. 
1898, 537, § 2. 



Conditions of 
other states. 
1832, 140, § 1. 
R. S. 37, § 44. 
1854, 453, § 34. 
1856, 252, § 47. 
G. S. 58, § 70. 

1870, 391. 

1871, 297, § 10. 
1873, 141, § 6. 
P. S. 119, § 215. 
1887, 214, tj 85. 
1894, 522, § 85. 



tilities between such foreign country and the United States. And 7 

no company shall directly or indirectly contract for or effect re- 8 

insurance of any risk in this commonwealth with any company not 9 

authorized to do business therein, except as provided in section 10 

twenty. 11 

Reciprocal Obligations. 

Section 85. If by the laws of any other state any taxes, fines, 1 

penalties, licenses, fees, deposits or other obligations or prohibi- 2 

tions, additional to or in excess of those imposed by the laws of 3 

this commonwealth upon foreign insurance companies and their 4 

agents, are imposed on insurance companies of this commonwealth 5 

and their agents doing business in such state, like obligations and 6 

prohibitions shall be imposed upon all insurance companies of such 7 

state and their agents doing business in this commonwealth so lone; 8 

as such laws remain in force. 9 



Lloyds asso- 
ciations. 
1878, 218, §§ 2, 3. 
P. S. 119, § 175. 
1887, 214, §86; 
283, § 2. 
1894, 522, § 86. 



LLOYDS 

Section 86. Associations of individuals, citizens of the United 1 

States, whether organized within this commonwealth or elsewhere 2 

within the United States, formed upon the plan known as Lloyds 3 

— whereby each associate underwriter becomes liable for a propor- 4 

tionate part of the whole amount insured by a policy — may be 5 

authorized to transact insurance other than life in this common- 6 

wealth, in like manner and upon the same terms and conditions as 7 

insurance companies of other of the United States. 8 



AGENTS AND BROKERS. 

D anTe e 8 s to ° om ' Section 87. Ever}' domestic insurance company shall file with 1 

report name of the insurance commissioner the name and residence of each person 2 

1895, 46. it appoints or employs to act as its agent in this commonwealth ; 3 

and whoever shall assume to act as such agent, or, unless a licensed 4 

broker, shall in any manner for compensation aid in negotiating 5 

contracts of insurance on behalf of such corporation for a person 6 

other than himself, prior to the filing of such notice of appointment, 7 

shall be subject to the penalties of section one hundred and eleven. 8 



Licenses to 
agents of 
foreign com- 
panies. 
1856, 252, § 51. 
G. S. 58, § 74. 
1867, 267, § 5. 
P. S. 119, § 209. 
1887, 214, §§ 91, 
92. 

1894, 522, §§ 91, 
92. 

1 Allen, 440. 
105 Mass. 149. 



Section 88. Upon written notice by an authorized foreign in- 1 

surance company of its appointment of a suitable person to act as 2 

its agent within this commonwealth, and the payment of two dollars, 3 

the insurance commissioner shall, if the facts warrant it, grant to 4 

such person a license, which shall state in substance that the com- 5 

pany is authorized to do business in this commonwealth and that 6 

the person named therein is a constituted agent of the company for 7 

the transaction of such business as it is authorized to do in this 8 

commonwealth. Said license shall continue in force until the first 9 

day of April next after its issue, and, by the renewal thereof on 10 

the annual payment for such renewal of two dollars before the first 11 

day of April, until revoked by the commissioner for non-compliance 12 

with the laws or until the company, by written notice to the insur- 13 

ance commissioner, cancels the agent's authority to act for it. 14 

While such license remains in force the company shall be bound 15 



Chap. 118.] insurance. 1161 

16 by the acts of the person named therein within his apparent author- 

17 ity as its acknowledged agent. 

18 Every person acting for a foreign insurance company shall exhibit o^™^/!^ 6 

19 in conspicuous letters, on the sign designating his place of business, be exhibited 

20 the name of the state or country under whose authority the com- 1852, M, § 3'; 

21 pany he represents has been incorporated or formed. And said lsk^t, § 9. 

22 company and agent shall also have printed in large type the name G. 5 |.f|'§ § 7 5 3°* 

23 of such state or country and the kind of company, whether mutual fsgf'iof.' 8205 ' 

24 or stock, upon all policies issued to citizens of this commonwealth, 

25 on all cards, placards and pamphlets, and in all advertisements 

26 published, issued or circulated in this commonwealth by it or him, 

27 relative to the business of such company. 

28 Every agent of a foreign insurance company shall annually, on Returns to tax 

29 or before the fifteenth day of November, make return to the tax isre^ifsT*' 

30 commissioner of all business transacted by him as such agent during p. 7 l'.i3% § 34. 

31 the year ending with the thirty-first day of October last preceding, iHg' lol' § 2 " 

32 in such form as the tax commissioner may prescribe ; and all books, 1897I 63. 

33 papers and accounts of his agency shall be open to the inspection 

34 of the tax commissioner at any time to enable him to verify the 

35 statements and transactions aforesaid. If such agent neglects or 

36 refuses to make such return, or refuses to submit the books, papers 

37 and accounts of his agency to such inspection, the tax commissioner 

38 shall report such neglect or refusal to the insurance commissioner, 

39 who shall thereupon cancel the license to such agent and make pub- 

40 lication thereof, and the license so cancelled shall not be renewed 

41 within one year thereafter ; but only such agents shall be subject 

42 to this provision as are not accountable to any other agent in this 

43 commonwealth for premiums received. 

1 Section 89. An officer of a domestic insurance company, or a Agents of 

2 person appointed as its agent for that purpose, or acting without compares. 

3 compensation, may, without other qualification, act in the negotia- ilgl) 522) f Hi 

4 tion and transaction with such company of any insurance which 

5 such company may lawfully do. 

1 Section 90. The insurance commissioner may, upon the pay- certificate of 

2 ment of ten dollars, issue to any suitable person, resident in this i869,°93, f§ % 3. 

3 commonwealth or resident in any other state granting brokers' p . 7 |'. n*; §§ m, 

4 licenses to residents of this commonwealth, a license to act as 1^7, 214, § 93. 

5 an insurance broker to negotiate contracts of insurance or rein- i|j*|. jjf 2, A 93, 

6 surance or place risks or effect insurance or reinsurance with any 1896^ 44s. 

7 qualified domestic insurance company or its agents, and with the 

8 authorized agents in this commonwealth of any foreign insurance 

9 company duly admitted to do business in this commonwealth. 

10 A broker's license shall remain in force for one year unless Revocation. 

11 revoked by the commissioner for cause. Such cause shall exist 

12 upon conviction of the holder of such license of a violation of the 

13 insurance laws, or if it shall appear to the commissioner, upon 

14 due proof after notice, that the holder has unreasonably failed and 

15 neglected to pay over to the company or agent entitled thereto any 

16 premium or part thereof collected by him on any policy of insurance. 

17 The commissioner shall publish such revocation in such manner as 

18 he determines proper for the protection of the public. 



1162 



INSURANCE. 



[Chap. 118. 



Exemption of 
veterans. 
1895, 159. 



No fee for such license shall be required of any soldier or 19 

sailor resident in this commonwealth who served in the army or 20 

navy during the war of the rebellion and who received an honorable 21 

discharge from such service, upon satisfactory evidence of the iden- 22 

tity of such soldier or sailor. 23 



Effect of pay. 
ment to agent 
or broker. 

1853, 376. 

1854, 453, § 39. 
1S56, 25-2, § 51. 
G. S. 58, § 74. 
187S, 166, § 1. 
P. S. 119, §§ 185, 
194. 

1887, 214, § 90. 
1894, 522, § 90. 

Penalty for 
fraudulent 
representa- 
tions. 
126 Mass. 316. 



Section 91. An insurance agent or broker who acts for a per- 1 

son other than himself in negotiating a contract of insurance by an 2 

insurance company shall, for the purpose of receiving the premium 3 

therefor, be held to be the company's agent, whatever conditions 4 

or stipulations may be contained in the policy or contract. Such 5 

agent or broker who knowingly procures by fraudulent representa- 6 

tions payment, or an obligation for the payment, of a premium of 7 

insurance, shall be punished by a fine of not less than one hundred 8 

nor more than one thousand dollars or by imprisonment for not 9 

more than one year. 10 



Section 92. An insurance agent shall be personally liable on 1 

all contracts of insurance unlawfully made by or through him, 2 

directly or indirectly, for or in behalf of any company not author- 3 

ized to do business in this commonwealth. 160 Mass. 413. 4 

Section 93. Whoever, for compensation, not being the ap- 1 

pointed agent or officer of the company in which such insurance or 2 

reinsurance is effected, acts or aids in any manner in negotiating 3 

contracts of insurance or reinsurance Or placing risks or effecting 4 

insurance or reinsurance for a person other than himself, shall be 5 

an insurance broker, and no person shall act as such broker, except 6 

as provided in section ninety. 7 

lst? 1 ^ §1 ^ person not a duly licensed insurance broker, who for compen- 8 

1^252' 554' sation solicits insurance on behalf of any insurance company, or 9 

i86i|i7o! transmits for a person other than himself an application for or a 10 

1864, 114, §1. ,. n . j. £ U & 11 

p. s. 119, §§ 183, policy 01 insurance to or from such company, or offers or assumes 11 

i 8 i'iien,436. to act in the negotiation of such insurance, shall be an insurance 12 

103 mTs's 23 78. agent within the intent of this chapter, and shall thereby become 13 

133 Mass' I2 6 ' liable to all the duties, requirements, liabilities and penalties to 14 

r3Ma SS 'ii9' which an agent of such company is subject. [iop.A.G.74.] 15 



Liability on 
unlawful con- 
tracts. 
1864, 114, § 2. 
1878, 36, § 4. 
P. S. 119, § 210. 
1887, 214, § S9. 
1894, 522, § 89. 

Insurance 

brokers. 

1869, 93, §§ 1, 2. 

1871, 297, § 8. 

P. S. 119, §§ 186, 

187. 

1887, 214, §§ 87, 

93. 

1894, 522, §§ 87, 
93. 

1895, 59, § 2. 
168 Mass. 596. 



Deposits of 
insurance com- 
panies to be 
held in trust. 
1856, 252, § 43. 
G. S. 58, § 63. 
1878, 130, §§ 1, 7. 
P. S. 119, §§ 156, 
218. 

1883, 107. 
18S4, 119. 
1887, 214, § 94. 

1893, 224. 

1894, 522, § 94. 



Return of 
deposits. 



DEPOSITS. 

Section 94. The treasurer and receiver general in his official 1 

capacity shall take and hold in trust deposits made by any domestic 2 

insurance company for the purpose of complying with the laws of 3 

any other state to enable such company to do business in such state ; 4 

and shall also in like manner take and hold any deposit made by a 5 

foreign insurance company under any law of this commonwealth. 6 

The company making such deposit shall be entitled to the income 7 

thereof, and may from time to time with the consent of the treas- 8 

urer and receiver general, when not forbidden by the law under 9 

which the deposit is made, change in whole or part the securities 10 

which compose the deposit, for other approved securities of equal 11 

par value. 12 

Upon request of any domestic insurance company the treasurer 13 

and receiver general may return to such company the whole or any 14 



Chap. 118.] insurance. 1163 

15 portion of the securities of such company held by him on deposit 

16 if he shall be satisfied that the securities so asked to be returned 

17 are subject to no liability and not required to be longer held by any 

18 provision of law or for the purpose of the original deposit. And 

19 he may return to the trustees or other representative authorized for 

20 that purpose of a foreign insurance company any deposit made by 

21 such company if it shall appear that such company has ceased to 

22 do business in this commonwealth and is under no obligation 

23 to policy holders or other persons in this commonwealth or in the 

24 United States for whose benefit such deposit was made. 

25 An insurance company which has made such deposit, or its Trust may be 

26 trustees or resident manager in the United States, or the insurance fn equity. etc "' 

27 commissioner, or any creditor of such company may at any time 1883 > 107 >§ 3 - 

28 bring, in the supreme judicial court for the county of Suffolk, a 

29 suit in equity against the commonwealth and other parties properly 

30 joined therein to enforce, administer or terminate the trust created 

31 by such deposit. The process in such suit shall be served on the 

32 treasurer and receiver general who shall appear and answer on 

33 behalf of the commonwealth and perform such orders and decrees 

34 as the court may make thereon. 

35 No company shall be required to have on deposit with the treas- Deposits with 

36 urer and receiver general an amount in excess of what is sufficient recefvergen- 

37 to enable it to comply with the laws of the states in which it trans- isl? 1 ,' 214, § 31. 

38 acts business ; and all amounts in excess of this amount held on de- Jf^'g^f; s a ' 

39 posit with the treasurer and receiver general or elsewhere shall be i|||' t^f ' 1 1* 

40 counted as of the surplus funds of the company. 1900, 92, § 2; 183, § 2. 

RECEIVERS. 

1 Section 95. The compensation of receivers of insolvent in- compensation 

2 surance companies shall be fixed by the supreme judicial court. i«i4, M^j^i 

3 All accounts rendered to the court by such receivers shall be re- llvl; Iff § § i^" 

4 ferred to the insurance commissioner for his examination and report p. 8 !'. 119, §§ 16$ 

5 thereon. 1887, 214, § 95. 1894,522,195. 169,173. 

114 Mass. 230. 115 Mass. 67, 278. 118 Mass. 300. 119 Mass. 155. 

6 Such receivers, at the expiration of one year after final settlement f|p^J t erst0 

7 ordered bv the court, shall report to the court the names and resi- unclaimed 

8 dences, if known, of the persons entitled to money or dividends i883,33,§5; 

9 from the estate of such companies remaining in their hands uncalled flle^ioo, §2. 

10 for, with the amount due to each. The court shall thereupon order 

11 a notice to be given by the receivers and, upon the expiration of 

12 one year after the time of giving such notice, the receivers shall in 

13 like manner report the amounts still uncalled for. Unless cause 

14 shall appear for decreeing otherwise, such amounts shall then be 

15 ordered to be paid into the treasury of the commonwealth, and 

16 schedules signed by the receivers shall at the same time be deposited 

17 with the treasurer and receiver general and auditor, setting forth 

18 the decree of the court and the names and residences, so far as 

19 known, of the persons or parties entitled thereto alphabetically ar- 

20 ranged, and the amount due to each. The auditor shall forthwith 

21 cause notice of such deposit to be mailed to such persons, and, upon 

22 certification by him that a claimant is entitled to any part of said 

23 deposit, it shall be paid in the same manner as other claims against 

24 the commonwealth. Upon the payment into the treasury of the 



1164 



INSURANCE. 



[Chap. 118. 



commonwealth of such unclaimed money or dividends by the re- 25 

ceiver, and the allowance by the court of his final account, or at the 26 

expiration of one year after the final settlement ordered by the court 27 

if he then has in his hands no unclaimed money or dividends, he 28 

shall deposit with the insurance commissioner all books and papers 29 

of such company, including those relative to his receivership, which 30 

shall be preserved by the commissioner. 31 



Companies to 
make annual 
statements. 

1837, 192, §§1,2. 

1838, 178, § 2. 
1842, 9, §§ 1, 3. 
1849, 104, § 4. 

1851, 281, § 21. 

1852, 227, §§1,3; 
231, §5; 311, §14. 
1854, 453, §§ 37, 
45. 

1856, 252, §§ 8, 
56. 



Form. 



ANNUAL STATEMENTS. 

Section 96. Every insurance company shall annually, on or 
before the fifteenth day of January, file in the office of the insurance 
commissioner a statement which shall exhibit its financial condition 
on the thirty-first day of December of the previous year, and its 
business of that year. For cause the commissioner may extend 
the time within which any such statement may be filed, but not to 
a date later than the fifteenth day of February. 



Companies 
of foreign 
countries. 

1884, 58. 
flOp. A.G. 

423.] 

Fee for filing. 



New business 
after default 
unlawful. 



1859, 146. 

G. S. 58, §§ 25, 75. 

1860, 156. 



1862, 181, §§6, 7. 
1867, 267, §§ 2-4. 
1870, 349, §§ 2, 3. 



P. S. 119, §§ 226, 229. 

1883, 33, § 4. 

1884, 217. 



1887, 214, § 96. 
1894, 522, § 90. 



Such annual statement shall be in the form required by the insur- 
ance commissioner. He shall embody therein, so far as appropriate to 
the several companies, the substance of the appended forms, with any 
additional inquiries he may require for the purpose of eliciting a 
complete and accurate exhibit of the conditions and transactions 
of the companies. The assets and liabilities shall be computed and 
allowed in such statement in accordance with the rules stated in sec- 
tion eleven. Such statement shall be subscribed and sworn to by 
the president and secretary, or, in their absence, by two of its prin- 
cipal officers. 

The annual statement of a company of a foreign country shall 
embrace only its business and condition in the United States, and 
shall be subscribed and sworn to by its resident manager or prin- 
cipal representative in charge of its American business. 

For filing each annual statement each foreign company shall pay 
to the commonwealth twenty dollars. 

The transaction of any new business by any company or its agents 
which has failed to file a statement in the manner herein provided 
shall, after notice to that effect from the insurance commissioner, 
be unlawful while such default continues. 



1 
2 
3 
4 
5 
6 
7 



8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 



Complainant 
entitled to one- 
half of fine in 
certain cases. 
ia<52, 231, §10; 
311, § 17. 
1873, 142. 
P. S. 119, § 182. 



PENALTIES. 

Section 97. The person, if other than the insurance commis- 1 

sioner or his deputy, upon whose complaint a conviction is had for 2 

violation of the law prohibiting insurance in or by foreign com- 3 

panies not authorized to do business in this commonwealth, shall be 4 

entitled to one-half of the fine recovered upon sentence therefor. 5 

1887, 214, § 97. 1894, 522, § 97. 



Penalty for 

negotiation of 

unlawful 

contracts. 

1826, 141, § 3. 

R. S. 37, § 43. 

1854, 453, §§ 36, 

40. 

1856, 252, § 49. 



Section 98. A person who assumes to act as an insurance agent 1 

or insurance broker without license therefor as herein provided, or 2 

who acts in any manner in the negotiation or transaction of unlaw- 3 

ful insurance with a foreign insurance company not admitted to do 4 

business in this commonwealth, or who, as principal or agent, violates 5 



Chap. 118.] insurance. 1165 

6 any provision of this chapter relative to the negotiation or effecting 1857, 259, § 1. 

7 of contracts of insurance, shall be punished for each offence by a fine 77. S ' 58, §§ 72 ' 

8 of not less than one hundred nor more than five hundred dollars. FsVf 200. 9 ' §§ 185 ' 

1887, 214, § 98. 160 Mass. 413. 173 Mass. 119. 

1894, 522, § 98. 168 Mass. 596. 175 Mass. 154. 

1 Section 99. A person licensed under the provisions of section Penalty for 

2 eighty-three, who procures or acts in any manner in the procure- of if^el * 8 

3 ment or negotiation of insurance in any unauthorized foreign com- f 8 e 8 r 7 80 2 °4 § 99 

4 pany, and who neglects to make and file the affidavit and state- 1894 > 522 > § "• 

5 ments required by said section, or who wilfully makes a false 

6 affidavit or statement, shall forfeit his license and be punished by 

7 a fine of not less than one hundred nor more than five hundred dol- 

8 lars or by imprisonment for not more than one year, or by both 

9 such fine and imprisonment. 

1 Section 100. A company or an agent thereof who issues or cir — forfaiiureto 

2 culates advertisements in violation of the provisions of section ties with iablU ' 

3 eighteen shall be punished by a fine of not less than fifty nor more m£f%, § 2. 

4 than five hundred dollars. 1887, 214, § 100. 1894, 522, § 100. P- S- 119, § m 

1 Section 101. A companjr which neglects to make and file its —for neglect 

2 annual statement in the form and within the time provided by sec- ments.' 6 state " 

3 tion ninety-six shall forfeit one hundred dollars for each day during illl* gf§' J. 3 " 

4 which such neglect continues, and, upon notice by the insurance alii) 227' 1 2" 

5 commissioner to that effect, its authority to do new business shall *j|*> |p» | |i- 

6 cease while such default continues. For wilfully making a false p- s. 08,' § 26. 

7 annual or other statement required by law, an insurance companv p s'. 119, § 230. 

1 ftft'* *?1 A. R 1 C\~\ 

8 and the persons making oath to or subscribing the same shall sev- 1894,' 522,' § 101! 

9 erally be punished by a fine of not less than five hundred nor more 

10 than five thousand dollars. A person who makes oath to such false 

11 statement shall be guilty of perjury. 

1 Section 102. For making any reinsurance in violation of the — formnsur. 

2 provisions of section twenty an insurance company and the agent tion of § 20. 

3 effecting or acting in the negotiation of such reinsurance shall sev- 1894) 522) § 102! 

4 erally be punished by a fine of five hundred dollars. 



1 Section 103. An insurance company which insures upon a —for over- 

2 single risk a larger amount than the law permits shall be punished 1887,214, §103. 

3 by a fine of five hundred dollars. ' 

1 Section 104. An officer or agent of a life insurance company —for issue of 

■ 1 • life uolicics 

2 who, after notice by the commissioner, issues a new policy, in vio- after notice 

3 lation of the provisions of section sixty-six, shall forfeit not more m™2u*pm. 

4 than one thousand dollars for each offence. . 1894, 522, § 104. 

1 Section 105. An insurance company or agent who makes, issues — forusueof 

2 or delivers a policy of fire insurance in wilful violation of the pro- other than 

3 visions of section sixty shall forfeit not less than fifty nor more than 1873, m, §§3^ 

4 two hundred dollars for each offence ; but such policy shall be \& 166i § 2 . 

5 binding upon the company issuing the same. 1894, 522, § 105. issv,' 214,' § 105." 



1166 



INSURANCE. 



[Chap. 118. 



Penalty 
for unlawful 
guaranty to 
policy holder. 
1860, 149. 
P. S. 119, § 108. 
1887, 2H, § 106. 
1894, 522, § 106. 



Section 106. A director or other officer of a mutual fire in- 1 

surance company who officially or privately gives a guaranty to a 2 

policy holder thereof against an assessment for which such policy 3 

holder is liable shall be punished by a fine of not more than one 4 

hundred dollars for each offence. 5 



— for proxy 
vote by officer 
or agent. 
1887, 214, § 107. 
1894, 522, § 107. 



Section 107. A paid officer or agent of a domestic mutual in- 1 

surance company who asks for, receives or procures to be obtained 2 

or uses a proxy to vote in violation of the provisions of section 3 

forty or section seventy-four shall be punished by a fine of not less 4 

than one hundred nor more than three hundred dollars for each 5 

offence. 6 



tron°of b c S om C " Section 108. Whoever, without justifiable cause, neglects, upon 

missioner, etc. d ue summons to appear and testify before the commissioner as pro- 

231, § s. ' ' vided in section six, and whoever obstructs the commissioner, his 

p.' s.' ii9, § io. deputy or examiner, in his examination of an insurance company, 

is94[ 522', § 108! shall be punished by a fine of not more than one thousand dollars 



or by imprisonment for not more than one year. 



1 
2 
3 
4 
5 
6 



crimimf«on dis Section 109. A life company or an officer or agent thereof who 1 

ill' I22' ! 109' v i°l a tes any of the provisions of section sixty-nine shall be punished 2 

for each offence by a fine of not more than one hundred dollars. 3 



— for unau- 
thorized for- 
eign agencies. 
1897, 186. 



Section 110. A domestic fire insurance company which estab- 1 

lishes an agency or appoints an agent or other person to solicit or 2 

transact business for it in a state in which such corporation has not 3 

been lawfully authorized to transact business or which pays or 4 

allows a commission or emolument to any person within such state, 5 

for the solicitation or procurement of insurance upon property 6 

therein, shall be punished by a fine of not less than three hundred 7 

dollars. 8 



vL f ia«ons er Section 111. Whoever violates any provision of this chapter, 1 

1894 I22' 1 110' ^ ie P ena lty whereof is not specifically provided for herein, shall be 2 

punished by a fine of not more than five hundred dollars. 3 



Enforcement 
of reciprocal 
obligations. 
18S7, 214, § 111. 
1894, 522, § HI. 



Agent or 
broker to be 
deemed guilty 
of larceny in 
certain cases. 
1S78, 166, § 2. 
P. S. 203, § 47. 



Section 112. Compliance with the provisions of section eighty- 1 

five as to deposits, obligations and prohibitions, and the payment 2 

of taxes, fines, fees and penalties by and upon foreign insurance 3 

companies, may be enforced in the ordinary course of equity pro- 4 

cedure by information brought in the supreme judicial court by the 5 

attorney general at the relation of the insurance commissioner. 6 

An insurance agent or broker who acts in negotiating a contract 7 

of insurance by an insurance company lawfully doing business in 8 

this commonwealth, and who embezzles or fraudulently converts to 9 

his own use, or with intent to use or embezzle, takes, secretes or 10 

otherwise disposes of, or fraudulently withholds, appropriates, 11 

lends, invests or otherwise uses or applies any money or substitute 12 

for money received by him as such agent or broker, contrary to 13 

the instructions or without the consent of the company for or on 14 

account of which the same was received by him, shall be deemed 15 

guilty of larceny. 16 



Chap. 11 8. J insurance. 1167 

A. — Form of Return for Stock Insurance Companies, except Life. 

(1.) State the name of the company. (2.) Where located. (3.) When Form A. 
incorporated and for what period. (4.) Amount of capital. (5.) Amount of 
capital actually paid in. (6.) Cash value of real estate owned. (7.) Amount 
loaned on mortgage of real estate. (8.) Amount and description of each kind 
of bonds and stocks owned, with par and market value. (9.) Amount loaned 
on collateral ; par and market value of each security pledged. (10.) Amount 
of cash on hand. (11.) Amount of gross premiums in course of collection. 
(12.) Amount of bills receivable, not matured, taken for premiums. (13.) 
Amount of all other property or investments. (14.) All outstanding losses. 
(15.) Amount of unearned premiums on policies in force. (16.) All other 
liabilities and claims against the company. (17.) Amount of cash received for 
premiums. (18.) Amount of notes received for premiums. (19.) Amount 
received for interest and rents. (20.) Amount of income received from all 
other sources. (21.) Amount paid for losses. (22.) Amount paid for divi- 
dends. (23.) Amount paid for expenses. (24.) All other expenditures. 
(25.) State amount of risks written, terminated and in force, with gross pre- 
miums thereon. 

B. — Form of Return of Mutual Companies, except Life. 

(1.) State the name of the company. (2.) Where located. (3.) When FormB. 
incorporated and for what period. (4.) Amount of guaranty fund, if any. 
(5.) Cash value of real estate owned. (6.) Amount loaned on mortgage of 
real estate. (7.) Amount and description of each kind of stocks and bonds 
owned, with par and market value. (8.) Loans on collateral, with par and 
market value of each security pledged. (9.) Cash in office and in bank. 
(10.) Gross premiums in course of collection. (11.) All other loans, invest- 
ments and property. (12.) Premium notes liable to assessment. (13.) 
Amount of scrip outstanding. (14.) All outstanding losses. (15.) Unearned 
premiums. (16.) Dividends declared and unpaid. (17.) Borrowed money. 
(18.) All other liabilities and claims against the company. (19.) Cash re- 
ceived for premiums. (20.) Cash received for interest and rent. (21.) Pre- 
mium notes received. (22.) Income from all other sources. (23.) Paid for 
losses. (24.) Paid for expenses. (25.) Surplus returned to policy holders. 
(26.) All other expenditures. (27.) Scrip dividends declared. (28.) State 
amount of risks written, terminated and in force, with gross premiums thereon. 

C. — Form of Return of Life Insurance Companies. 

(1.) The name of the company. (2.) Where located. (3.) When incor- Form C. 
porated and for what period. (4.) Amount of capital stock or guaranty fund. 
(5.) Cash value of real estate owned. (6.) Amount loaned on mortgage of 
real estate. (7.) Amount and description of each kind of bonds and stocks 
owned, with par and market value. (8.) Loans on collateral, with par and 
market value of each security pledged. (9.) Cash in office and in bank. 
(10.) Premium notes and loans on policies in force. (11-) Outstanding and 
deferred premiums on policies in force. (12.) All other loans, investments 
and property. (13.) All outstanding losses and policy claims. (14.) Divi- 
dends of surplus due policy holders. (15.) Forfeitures and surplus accrued, 
held for and to be divided to any special class of policy holders ; surplus ac- 
crued on policies in force, not yet due to be distributed. (16.) All other liabili- 
ties and claims against the company. (17.) Cash received for premiums. 
(18.) Cash received for interest and rents. (19.) Income from all other 
sources. (20.) Paid for losses and claims. (21.) Dividends of surplus to 
policy holders. (22.) Paid for expenses. (23.) All other expenditures. 
(24.) Number, date, amount and kind of each outstanding policy not here- 
tofore returned, gross premium thereon, and age of the insured. (25.) Num- 
ber, date and amount of each policy which has within the year ceased to be in 
force, how terminated, what has been paid to the legal holder of the policy, and 
age of the insured. 



1168 



FRATERNAL BENEFICIARY CORPORATIONS. 



TChAP. 119. 



CHAPTEE 119. 



OF FRATERNAL BENEFICIARY CORPORATIONS. 



Formation of 
corporation. 
1888, 429, § 1. 
1894, 367, § 1. 

1898, 474, § 1. 

1899, 442, § 1. 
1901, 422, § 1. 
151 Mass. 558. 
161 Mass. 364. 
172 Mass. 278. 



Section 1. Seven or more persons, residents of this common- 1 

wealth, may form a fraternal beneficiary corporation for the pur- 2 

pose of providing for the payments of benefits in the case of death 3 

or disability, or of both. The disability may be temporary or per- 4 

manent and the result of sickness or of accident. Any educational, 5 

charitable, benevolent or social purpose may be united therewith. 6 

The membership may be limited to members of a particular order, 7 

class or fraternity ; to the employees of towns or cities, the com- 8 

mon wealth, or the federal government, or of a designated firm, busi- 9 

ness house or corporation ; or to persons of the same occupation. 10 

If its membership is not limited as above provided, its business 11 

shall be conducted on the lodge system, with a representative form 12 

of government, and, in such case, the incorporators, their successors 13 

and associates, with the officers, ex-presiding officers, and such per- 14 

sons as may be admitted as representatives, shall be a supreme or 15 

governing body, with power to create subordinate bodies by the 16 

grant to applicants therefor of charters authorizing those named 17 

therein to organize as a subordinate lodge and to admit members 18 

after its organization, in accordance with such ritual as the supreme 19 

or governing body may prescribe. 20 



Organization, 

etc. 

1888, 429, §§ 2- 

4,7. 

1894, 367, §§ 2- 

4,7. 

1898, 474, §§ 2- 
4,7. 

1899, 442, §§ 2- 
4,7. 

[l Op. A. G. 
ill.] 



1888, 429, § 5. 
1894, 367, § 5. 

1898, 474, § 5. 

1899, 442, § 5. 
1901, 422, §§ 2-5, 
7,11. 



Section 2. The corporation shall be formed in the manner pre- 1 

scribed in, and be subject to the provisions of, sections fifteen to 2 

twenty, inclusive, of chapter one hundred and ten, except as fol- 3 

lows : 4 

The agreement shall omit the statement of the amount of its 5 

capital stock and the par value and number of its shares. 6 

All officers shall be elected by ballot and the president shall be 7 

included among the officers to be elected at the first meeting by 8 

the associates, and no person who has not subscribed the agree- 9 

ment of association shall be eligible as a director or other officer. 10 

The provisions of section six of chapter one hundred and twenty- 11 

five shall apply to such corporation, except that the financial officer 12 

shall not be required to sign or make oath to the certificate of 13 

organization. 14 

The by-laws may, unless it is otherwise provided, also prescribe 15 

the officers and elective members of standing committees, who may 16 

be, ex officiis, directors or other officers corresponding thereto ; the 17 

method of calling its meetings and the notice thereof which shall be 18 

given ; the right of attendance, individual or representative, at its 19 

meetings ; the assessments and benefits in case of disability or death, 20 

and the conditions upon which the same shall be paid ; the amount 21 

which shall be deemed one full individual assessment for the re- 22 

spective funds and for calls for fractional parts thereof ; and the loss 23 

or forfeiture of membership and benefits, the method of the amend- 24 

ment of the by-laws and such other provisions as the corporation 25 

may determine. 26 

If the corporation conducts its business as a fraternal society on 27 



Chap. 119.] fraternal beneficiary corporations. 1169 

28 the lodge system, it shall have a ritualistic form of work and no per- 

29 son shall be admitted as a member thereof unless he has previously 

30 made a written application therefor, and has been initiated in, and 

31 become a member of, a local branch of said corporation. Its by- 

32 laws shall provide that meetings of said branches shall be held at 

33 least once each month, and may provide that, in addition to rep- 

34 resentatives chosen by the grand or subordinate bodies, the in- 

35 corporators, officers, members of standing committees and the 

36 ex-presiding officers of the supreme or governing body may be 

37 members thereof. 

38 The certificate of organization and the records shall be submitted 

39 to the insurance commissioner, instead of the commissioner of 

40 corporations, and he shall perform the duties relative thereto which 

41 are required of the commissioner of corporations relative to manu- 

42 facturing corporations. 

43 The fee to be paid to the secretary of the commonwealth upon 

44 the filing of the certificate of organization shall be five dollars. 

1 Section 3. Officers chosen at the first meeting of the associ- T ^ re of 

2 ates shall hold office until the next meeting of the corporation for J 888 , i 2 ?. § e. 

3 the election of officers, the date of which, within two years of the is98', 474^ § 6! 

4 time of organization, shall be prescribed by the by-laws. At such 1901; 422', § e'. 

5 meeting, and thereafter at least biennially, the officers shall be 

6 chosen by ballot and shall hold office until their successors are 

7 elected and qualified. Standing committees or boards having pre- 

8 scribed duties under the by-laws, including those the members of 

9 which are by such by-laws made directors or other officers corre- 

10 sponding thereto, may be constituted by the election of one or more 

11 members thereof annually, to serve for not more than three years 

12 under any one election. No person shall be elected or appointed 

13 to an administrative position for more than three years at any one 

14 election or appointment. 

1 Section 4. No corporation organized as aforesaid subsequent to Not to com- 

2 the twenty-third day of May in the year nineteen hundred and one Sf S 8?untn!" 

3 to conduct business as a fraternal society on the lodge system, or 1111; f f2) 1 il 

4 which limits its membership to a particular order or fraternity, shall ^99, 442, § 8. 

5 incur any liability or issue any benefit certificate until it has re- 

6 ceived from the insurance commissioner a certificate to the effect 

7 that it has complied with all the requirements of law and is duly 

8 authorized to transact business in this commonwealth ; but the fore- 

9 going provision shall not apply to a corporation which confines its 

10 membership to that of a particular order or fraternity in any one 

11 county, or to a lodge of such order or fraternity. Before such cer- 

12 tificate is granted, the corporation must present satisfactory evidence 

13 to the insurance commissioner that at least five hundred persons have 

14 each paid one advance assessment for its mortuary or disability busi- 

15 ness, or both if such business is combined, at its established rates, 

16 and have become bona fide members of the corporation. Ifsuchcor- 

17 poration is a fraternal society on the lodge system, paying a death 

18 benefit, it must also show that it has established mortuory assess- 

19 ment rates which are not lower than those indicated as necessary 

20 on the twenty-third day of May in the year nineteen hundred and 

21 one by the ''National Fraternal Congress Mortality Tables", 



1170 



FRATERNAL BENEFICIARY CORPORATIONS. 



[Chap. 119. 



Annual meet- 
ing. 

1898, 474, § 10. 

1899, 442, § 10. 
1901, 422, § 10. 



unless it is a fraternal beneficiary corporation which confines its 22 

membership to the employees of towns or cities, the commonwealth, 23 

the federal government, of a designated firm, business house or cor- 24 

poration, or to persons of the same occupation. 25 

Section 5. A domestic corporation subject to the provisions 1 

of this chapter may hold its annual meetings in any state, in the 2 

District of Columbia, or in the Dominion of Canada or a province 3 

thereof, if in such state, district or province it has one or more local 4 

branches ; and its acts at such meetings shall have the same effect 5 

as if done within this commonwealth. 6 



Regulations. 
1877, 204, § 1. 
P. S. 115, § 8. 
1S82, 195, §§1,2. 
1888, 429, § S. 

1890, 341, 400. 

1891, 163. 
1894, 32S; 367, 
§8. 

1897, 228. 

1898, 474, § 11. 

1899, 442, § 11. 
1901, 275; 422, 
§11; 487. 

139 Mass. 473. 

140 Mass. 5S0. 
143 Mass. 216. 

145 Mass. 134. 

146 Mass. 217, 
286, 391. 

149 Mass. 512. 

150 Mass. 100. 

152 Mass. 288. 

153 Mass. 314. 
156 Mass. 431, 
435. 

15S Mass. 224, 
322. 

159 Mass. 9. 
162 Mass. 98. 
165 Mass. 421. 
168 Mass. 391. 
171 Mass. 456. 
175 Mass. 396. 



Section 6. A corporation duly organized and transacting busi- 1 

ness under the provisions of this chapter, which conducts its 2 

business as a fraternal society on the lodge system, or which limits 3 

its certificate holders to a particular order, class or fraternity, or to 4 

the employees of towns or cities, the commonwealth, or the federal 5 

government, or of a designated firm, business house or corporation, 6 

or to persons of the same occupation may make provision for the 7 

payment of benefits in case of death or disability or of both. The 8 

funds from which the payment of such benefits shall be made 9 

shall be derived only from assessments collected from the members, 10 

except as provided in sections eight, nine and ten. The fund from 11 

which the expenses shall be defrayed may be derived from a per 12 

capita tax, dues or expense assessments. Such provisions, funds, 13 

assessments and payments shall be as required in the by-laws 14 

of the corporation. The benefit certificate shall, in effect, provide 15 

that if the death of the member therein named shall occur when 16 

one full assessment on each member would not amount to the face 17 

amount of the maximum certificate of such corporation, then the 18 

amount paid the beneficiary thereunder shall not exceed the amount 19 

of such full assessment or the proportionate part thereof which 20 

said face amount named in such certificate bears to such maximum 21 

certificate, but this restriction shall not apply to a corporation 22 

which confines its membership to the permanent employees of 23 

towns or cities, the commonwealth, or the federal government, nor 24 

to a corporation having an emergency or reserve fund, until such 25 

fund shall have been exhausted. Such death benefit shall be pay- 26 

able only to the husband, wife, betrothed, child by legal adoption, 27 

parent by legal adoption, or relatives of, or persons dependent 28 

upon, the member named in the benefit certificate ; but a member 29 

of any fraternal beneficiary corporation may, with the consent of 30 

the officers thereof, name as beneficiary a home located within this 31 

commonwealth and incorporated under the laws thereof, and main- 32 

tained and supported by any secret fraternity or order for the 33 

care and maintenance of its aged, infirm, indigent or unfortunate 34 

members, or for the care and support of the wife or widow of such 35 

member, or for the care, support and education of -minor children of 36 

such members or of deceased members, to the extent of the amount 37 

disbursed for the benefit of said member, wife, widow or child, by 38 

such home, at rate of average cost of maintenance thereof, during 39 

the period of occupancy of such member, wife, widow or child, 40 

with any sums expended for assessments, dues, tax or other pay- 41 

ments by such home by reason of such benefit certificates ; and, 42 



Chap. 119.] fraternal beneficiary corporations. 1171 

43 subject to the limitations of this section, another person as benefi- 

44 ciary of the remainder. If a benefit certificate has been lawfully 

45 issued and the beneficiary therein named and the husband, wife, 

46 betrothed, child, child by legal adoption, parent, parent by legal 

47 adoption, or persons dependent upon the member named in the 

48 benefit certificate have all died, the member with the consent of the 

49 officers of the corporation, and under such rules as they may pre- 

50 scribe, may have any other person substituted as beneficiary therein. 

1 Section 7. A corporation organized under or conducting its Death and 

2 business in accordance with the provisions of this chapter may hold fSndf ency 

3 as a death fund belonging to the beneficiaries of members when p 8 s'.ii5,§9' 

4 deceased not more than the amount of three assessments from a ill'lii'lV' 2 ' 

5 general or unlimited membership, or of three assessments from J|$ 34 l' 

6 each limited class or division of its members ; and in addition 1897I 22s! 

7 thereto may create, collect, maintain, disburse and apply an emer- ml', m\ 1 12! 

8 gency fund in accordance with its by-laws, not however at any time lseVafs.m 

9 exceeding in amount collected from its members five per cent of the 175 Mass.' m. 

10 aggregate face value of all its then outstanding benefit certificates, ]& °55 f" G " *' 

11 If any part of such fund payable by a member under such by-laws 

12 remains unpaid at his decease, it may be deducted from the amount 

13 payable to his beneficiary or beneficiaries ; but any decrease in such 

14 face value shall not require a corresponding diminution of such 

15 emergency fund. The emergency fund shall be used only for the 

16 payment of death or disability benefits. Such death fund while 

17 held in trust shall be invested in securities in which insurance com- 

18 panies may invest their capital, or deposited in safe banking insti- 

19 tutions subject to sight drafts, for distribution to the beneficiaries 

20 aforesaid. Whenever the death fund exceeds, above all known 

21 liabilities, the amount of three assessments as aforesaid, such excess 

22 shall be transferred to the emergency fund. Such emergency fund 

23 shall be invested in securities in which insurance companies may 

24 invest their capital, but a part thereof, not exceeding twenty per 

25 cent, may be invested in a building for use and occupancy by the 
2Q corporation as its home office within this commonwealth. Such 

27 securities, if registered or recorded, shall be taken and stand in the 

28 name of the corporation, and all the securities in which the emergency 

29 fund is invested shall be deposited with the treasurer and receiver 

30 general ; but the corporation may at any time exchange any part of 

31 said securities for other authorized securities which the treasurer 

32 and receiver general determines are of equal value. No part of 

33 said securities shall be withdrawn except upon a requisition signed 

34 by three-fourths of the directors or executive committee, or other 

35 officers corresponding thereto, and indorsed by the insurance com- 

36 missioner, setting forth that the same is to be used for the purposes 

37 of the trust. The income from securities so deposited shall be paid 

38 to the corporation for the uses of the fund as specified in the by- 

39 laws. No sale, assignment, release, discharge, or surrender of 

40 securities so deposited to or in favor of any obligor, mortgagor or 

41 other person, shall be valid against the corporation owning the 

42 same, unless the original papers which constitute, or are the evi- 

43 dence of, said securities, are transferred or surrendered to the 

44 person entitled thereto, except in case of the actual loss or destruc- 

45 tion thereof. 



1172 



FRATERNAL BENEFICIARY CORPORATIONS. 



[Chap. 119. 



Restrictions. 

1897, 228. 

1898, 474, § 11. 

1899, 442, § 13. 
1901, 422, § 13. 



Section 8. No part of the death, disability, or emergency 
funds herein provided for shall be used for any purposes other 
than those specifically prescribed in this chapter, and no assessment 
for the disability fund shall be called while there remains on hand 
of such fund an amount equal to that received from three assess- 
ments ; but payments for total permanent disability may be made 
from the death fund if made in a single payment. 

No contract Under this chapter shall be valid which shall be 
conditional upon an agreement or understanding that the person 
to whom the death benefit is made payable shall pay the dues or 
assessments. Death, disability and expense assessments may be 
called together ; but the proportion to be used for each purpose shall 
be distinctly stated and the amount received for each fund shall be 
held and used only in the manner heretofore specified ; but transfers 
from the expense fund to any other fund may be made by the 
directors. 



1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 



i894?60 f r367?'§ 9. Section 9. A domestic corporation subject to the provisions 

1899* ill' I ll" °f tln s chapter, in addition to the revenues in this chapter provided, 

i9w| 422; § 14! may receive and hold gifts, bequests and money from other sources, 

which shall be held in a separate fund ; subject however to transfer 

in accordance with its by-laws to funds herein authorized. 



1 

2 
3 
4 
5 



toe^upreme 40 Sectton 10. A corporation organized under or conducting its 1 

i899 y 442 Ti5 r ' business in accordance with the provisions of this chapter, which 2 

i9oi; 422; § is. on the twenty-eighth day of June in the year eighteen hundred and 3 

ninety-nine was, or the members of which then formed, a part or 4 

jurisdiction of one general order or fraternity conducted on the 5 

lodge system and paying only death, sick, disability or old age 6 

benefits, and having a common name and ritualistic ceremonies, and 7 

which corporation was then in affiliation with the supreme or gov- 8 

erning body of such order or fraternity, may continue to affiliate 9 

with and contribute to the support of such supreme body under the 10 

methods and laws then existing, or which have been or hereafter 11 

may be adopted by both said corporation and supreme body, and 12 

in addition to the other rights and authority conferred by this 13 

chapter may by assessments or through its other funds provide for 14 

death benefits and the payment thereof, and may pay death benefits, 15 

to or for the beneficiaries of deceased members of such order or 16 

fraternity, holding benefit certificates issued not by said corpora- 17 

tion but by said supreme body or by one of the grand or subordinate 18 

bodies thereof organized or incorporated elsewhere than in this com- 19 

monwealth, under an arrangement or agreement with said supreme 20 

body and in compliance with the laws or rules thereof, whereby said 21 

corporation may afford relief and aid by payment of or for such 22 

death benefits as aforesaid, or itself receive similar payments for 23 

relief and aid to the beneficiaries of its deceased members as the 24 

case may require and such laws and rules provide ; but this authority 25 

shall not permit the payment of benefits other than those arising 26 

from death. 27 



Expense 
assessments. 
1882, 195, § 4. 



Section 11. A corporation organized under or conducting its 1 
business in accordance with the provisions of this chapter, and which 2 



Chap. 119.] fraternal beneficiary corporations. 1173 

3 has no provision for a per capita tax, or for dues payable to the 1888, 429, § 10. 

4 supreme or governing body for expenses, may make not more than lls^f^' 

5 three assessments a year, to meet its reasonably necessary expenses, ll^'tvi 3 ^ 9, 

6 The purpose of such assessments shall be clearly stated in calls 1899 > 442 > § 16 - 

7 therefor, and no expense assessment shall be called while the amount 

8 of one assessment remains on hand. 

9 A corporation organized as aforesaid which limits its membership Annuities and 

10 to the permanent employees of towns or cities, the commonwealth, gra m ie8 ' 

11 or the federal government, and which does not pay death benefits, 

12 may pay annuities or gratuities contingent upon disability or long 

13 service, and may fix the amount of the annual assessment therefor. 

14 A corporation which is subject to the provisions of this chapter Reinsurance, 

15 may reinsure with or transfer its membership, certificates or funds 1901, 422°fi6. 

16 to any other corporation or organization which is authorized to do 

17 business under this chapter in this commonwealth. The agreement 

18 of transfer or reinsurance shall first be submitted to and approved 

19 by a two-thirds vote of the certificate holders of each corporation 

20 or organization present at meetings called to consider the same, of 

21 which meetings written or printed notice shall be mailed to each 

22 certificate holder at least thirty days before the day fixed for the 

23 meeting, and such agreement shall not take effect until a certified 

24 copy thereof is filed with the insurance commissioner. The mem- 

25 bers of fraternal beneficiary corporations shall not vote by proxy ; 

26 but if the instrument appointing the proxy is filed with the secretary 

27 of the corporation at least fifteen days before the day fixed for a 

28 meeting called to consider the agreements of transfer aforesaid, they 

29 may so vote at such meeting. 

1 Section 12. A fraternal beneficiary corporation, — or an asso- Exemptions. 

2 ciation which limits its membership to a particular order, class or 1898^ 474,' § 12. 

3 fraternity, or to the employees of towns or cities, the commonwealth, 190?; lf|f 17.' 

4 or the federal government, or of a designated firm, business house 

5 or corporation, — or a secret fraternity or order, — or a purely 

6 charitable association or corporation existing on the twenty-eighth 

7 day of June in the year eighteen hundred and ninety-nine or on 

8 the twenty-third day of May in the year nineteen hundred and one, 

9 — any one of which pays a death or funeral benefit not exceeding 

10 two hundred dollars, or disability benefits not exceeding ten dollars 

11 a week, or both, and which is not conducted as a business enterprise 

12 or for profit, may transact in this commonwealth such business, 

13 without otherwise conforming to the provisions of this chapter. 

1 Section 13. A fraternal beneficiary corporation organized under Foreign corpo- 

2 the laws of another state of the United States or of the Dominion ifsftg, § 11. 

3 of Canada or a province thereof and paying only disability and \lf 2 ' t %]- 

4 death benefits may be admitted to do the business defined in this ig»'. jbi, | ^ 

5 chapter if it files with the insurance commissioner a duly certified laps! m, § 13. 

1 . t n • , 1899, 442, § 18. 

6 copy of its charter and agreement of association, and a copy of its woo, 185. 

7 constitution and by-laws certified to by its secretary or correspond- 14s k&el. m. 

8 ing officer, with the appointment of such commissioner as the person iJSs mms! US'. 

9 upon whom process shall be served as provided in section four of 

10 chapter one hundred and twenty-six, and a statement under oath of 

11 the president and secretary in the form required by such commis- 

12 sioner of its business for the preceding year, if such corporation 



1174 



FRATERNAL BENEFICIARY CORPORATIONS. [CHAP. 119. 



Annual state- 
ment. 

1880, 196, § 1. 
P. S. 115, § 11. 
1882, 195, § 3. 
1888, 429, § 12. 
1890, 341. 
1894, 367, § 11. 

1898, 474, § 14. 

1899, 442, § 19. 
1901, 422, § 19. 



shall be shown to be authorized or permitted to do business in the IS 

state, dominion or province in which it is incorporated or organized, 14 

and if similar corporations organized under the laws of this com- 15 

monwealth are authorized to do business in such state, dominion 16 

or province. No such corporation which was not doing business in 17 

this commonwealth on the twenty-third day of May in the year 18 

nineteen hundred and one shall hereafter be admitted to do such 19 

business in this commonwealth unless it shall have adopted and 20 

have in force mortuary assessment rates which are not lower than 21 

those then indicated as necessary by the " National Fraternal Con- 22 

gress MortalhVy Tables." If any other state, the Dominion of Canada 23 

or a province thereof shall impose any obligation in excess of the 24 

obligations imposed by the provisions of this chapter upon any such 25 

corporation of this commonwealth, like obligation shall be imposed 26 

on similar corporations of such state, dominion or province doing 27 

business in this commonwealth. The transaction of the business 28 

denned in this chapter by any corporation, association, partnership 29 

or individuals, unless organized, continuing or admitted as provided 30 

herein, is forbidden. A corporation heretofore admitted to do busi- 31 

ness in this commonwealth under the corresponding provisions of 32 

earlier laws may continue such business without being re-admitted, 3S 

but shall otherwise be subject to the provisions of this chapter. 34 

Section 14. A corporation doing business under the foregoing 1 

provisions shall annually, on or before the first day of February, 2 

report to the insurance commissioner the location of its principal 3 

office in this commonwealth, and the names and addresses of its 4 

president, secretary and treasurer, or other officers corresponding 5 

thereto ; and shall make under oath such statements of its member- 6 

ship and financial transactions for the year ending on the preceding 7 

thirty-first day of December, as the commissioner may require 8 

to show its business and standing ; and at all times shall make 9 

under oath all statements relative to said corporation required by 10 

said commissioner. For cause the commissioner may extend the 11 

time within which an annual statement may be filed, to a date not 12 

later than the first day of March. Such statement shall be sub- 13 

scribed and sworn to by the president and secretary of the cor- 14 

poration, or officers corresponding thereto. For wilfully making 15 

a false statement, if the statement, whether annual or otherwise, is 16 

required by law, the corporation and the persons making oath to 17 

or subscribing the statement shall severally be punished by a fine of 18 

not less than one hundred nor more than five hundred dollars. 19 



Examination 
by insurance 
commissioner. 
1901, 422, § 19. 






Section 15. The insurance commissioner shall, upon request 1 

of a domestic corporation doing business on the lodge system, person- 2 

ally or by some person designated by him visit such corporation 3 

and thoroughly inspect and examine its aifairs, especially as to its 4 

financial condition. When he determines it to be prudent for the 5 

protection of the certificate holders in the commonwealth, he may in 6 

like manner visit and examine, or cause to be visited and examined 7 

by some competent person or persons whom he maj^ appoint for the 8 

purpose, any foreign fraternal beneficiary corporation applying for 9 

admission or already admitted to do business in this commonwealth, 10 

and such foreign corporation shall pay the expense of such examina- 11 



Chap. 119.] frateknal beneficiary corporations. 1175 

12 tion . For the purposes aforesaid, the commissioner or person making 

13 the examination shall have free access to all the books and papers 

14 that relate to the business of such corporation, and to the books 

15 and papers kept by any of its organizers, and may summon and 

16 administer the oath to and examine as witnesses the directors, 

17 officers, agents, organizers and trustees of any such corporation, 

18 and any other persons, relative to its financial affairs, transactions 

19 and condition. He may in his discretion accept, in lieu of such ex- 

20 amination, the examination of the insurance department of the state, 

21 the Dominion of Canada or a province thereof in which such foreign 

22 corporation is organized. 

1 Section 16. No corporation organized or transacting business Agents regu. 

2 under the provisions of this chapter shall employ paid agents in isllf 429, §§ 8, 

3 soliciting or procuring business ; but corporations which transact J^ U1 

4 business as fraternal societies on the lodge system may employ Jg 94, 367 > §§ 8 » 

5 organizers in the preliminary organization of local branches, and 1898, 474, § 16. 

6 members, as officers or deputies, to assist members of weak and i?oi! 422! § 21! 

7 inactive local branches to increase their membership, if their com- 

8 pensation does not depend upon and is not affected by such in- 

9 crease, and corporations which limit their certificate holders to a 

10 particular order or fraternity may employ and pay members for 

11 securing new members, and any corporation may pay local col- 

12 lectors. Whoever solicits membership for, or in any manner assists 

13 in procuring membership in, or aids in the transaction of business 

14 for, a corporation or organization not authorized to do business in 

15 this commonwealth, shall be punished as provided in section twenty- 

16 one of this chapter. A corporation organized or transacting business Amendment to 

17 under or as defined in this chapter shall, within two months after the y " aws ' 

18 adoption by it of an amendment to its by-laws, file with the insur- 

19 ance commissioner a copy thereof, setting forth such amendment 

20 distinctly and clearly, and this copy shall be certified by its record- 

21 in g: officer. 



*& 



1 Section 17. The money or other benefit to be paid by a cor- Exemption 

2 poration authorized to do business under the provisions of this ment. a 

3 chapter shall not be liable to attachment by trustee or other proc- p 37 ^. n*', Vs. 

4 ess, or be seized, taken, appropriated or applied by any legal or if||; HE,' § § i5. 2 ' 

5 equitable process, or by operation of law, to pay a debt or liability iJH' f^' I "• 

6 of a certificate holder, or a beneficiary named therein. ww, m, § 22! 

1901, 422, § 22. 144 Mass. 306. 159 Mass. 14, 259. 175 Mass. 396. 

1 Section 18. A solicitor, agent or examining physician who Penalties. 

2 shall knowingly or wilfully make any false or fraudulent statement Htf, m\ § It 

3 or representation in or with reference to any application for mem- }gg|; ^|; | ]%[ 

4 bership, or who shall make any false or fraudulent statement or 1901 > 422> § 23 - 

5 representation for the purpose of obtaining any money from or 

6 benefit in any corporation transacting business under the provisions 

7 of this chapter shall be punished by a fine of not less than one 

8 hundred nor more than five hundred dollars or by imprisonment 

9 for not less than thirty days nor more than one year, or by both 

10 such fine and imprisonment. A person wilfully making a false 

11 statement of any material fact or thing in a sworn statement as to 

12 the death or disability of a certificate holder in any such corporation, 



1176 



FRATERNAL BENEFICIARY CORPORATIONS. 



[Chap. 119. 



for the purpose of procuring payment of a benefit named in the 13 
certificate of such holder, shall be guilty of perjury. 14 



Receivership. 
1892, 435, § 1. 
1895, 340, § 1. 

1898, 474, § 19. 

1899, 442, § 24. 
1901, 422, § 24. 
159 Mass. 9. 



If the insurance commissioner on investigation is 



Change of pur- 
pose. 

1888, 429, § 17. 
1894, 367, § 16. 

1898, 474, § 20. 

1899, 442, § 25. 
1901, 422, § 25. 



1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 



Section 19 
satisfied that a corporation organized or conducting business under 
the provisions of this chapter has exceeded its powers, or has failed 
to comply with any provisions of law, or has conducted business 
fraudulently, or that its condition is such as to render its further 
proceedings hazardous to the public or to its certificate holders, or 
if such corporation shall vote to discontinue its business, he shall 
report the facts to the attorney general, who may thereupon apply to 
the supreme judicial court or the superior court, which shall have 
jurisdiction in equity of such application for an injunction restrain- 
ing such corporation in whole or in part from the further prosecution 
of business. Before making such report to the attorney general 
the insurance commissioner, if he is satisfied that the corporation 
has exceeded its powers, or has failed to comply with any provision 
of law, or has conducted its business fraudulently, shall notify such 15 
corporation of particulars in which he decides that it has exceeded 16 
its powers, or of the provisions of law with which it has failed to 17 
comply, or of the fraudulent matter in the conduct of its business 18 
and shall give such corporation a reasonable opportunity to comply 19 
with the law or amend its methods. The application shall state the 20 
specific facts relied upon as in excess of power, or as neglect or 21 
violation of law, or as constituting fraudulent conduct of business. 22 
The court may issue such injunction forthwith or, upon notice and 23 
hearing thereon, may issue an injunction or decree for the removal 24 
of any officer of said corporation, and may substitute a suitable 25 
person to serve in his stead until a successor is chosen, and may 26 
make such further orders and decrees as the interests of the cor- 27 
poration, the certificate holders and the public may require ; and 28 
may, after a full hearing, appoint a permanent receiver to take 29 
possession of the property and effects of the corporation, and to 30 
settle its affairs, subject to such rules and orders as the court may 31 
from time to time prescribe. No such injunction shall issue, and 32 
no order, judgment or decree appointing a temporary or permanent 33 
receiver shall be made or granted, otherwise than upon the applica- 34 
tion of the attorney general, on his own motion, or at the relation 35 
of the insurance commissioner, whether the commonwealth or a 36 
member, or other party seeks relief. 37 



Section 20. A domestic fraternal beneficiary corporation may, 1 

with the approval of the insurance commissioner, change the purposes 2 

for which it was organized so as to permit it to transact any business 3 

authorized by this chapter. Upon such approval the presiding, finan- . 4 

cial and recording officers, and a majority of its other officers having 5 

the powers of directors, shall file in the office of the secretary of the 6 

commonwealth a certificate, with the approval of the insurance com- 7 

missioner indorsed thereon, setting forth the change in the pur- 8 

poses of the corporation. The secretary of the commonwealth shall, 9 

upon receipt thereof and upon the payment of five dollars, cause 10 

such certificate to be filed and recorded in his office. Such action 11 

shall operate to reincorporate the corporation hereunder, but rein- 12 

corporation shall not be required. Every domestic fraternal benefi- 13 



Chap. 120.] assessment insurance. 1177 

14 ciary corporation may continue to exercise all the rights, powers and 

15 privileges conferred by the provisions of this chapter or of its 

16 certificate of incorporation or charter not inconsistent herewith, and 

17 shall be subject to the provisions of this chapter, as if reincorpo- 

18 rated hereunder. No certificate of incorporation granted under the Failure to do 

19 provisions of this chapter shall continue valid after one year from busine8B - 

20 the date of such certificate, unless the organization has been com- 

21 pleted and business begun thereunder. The certificate of incorpo- 

22 ration or the charter of any corporation subject to the provisions of 

23 this chapter, and any certificate hereafter granted under the pro- 

24 visions of this chapter, shall become invalid if during a period of 

25 twelve months no business is transacted thereunder. 

1 Section 21. A corporation, association or society transacting Penalties. 

~ 1888 4-^Q 6 18 

2 business in this commonwealth and an agent or officer thereof 1893; 321; § 2. ' 

3 neglecting to comply with or violating any provision of this chapter i898| 474; § 21'. 

4 shall be punished by a fine of not less than fifty nor more than two {901; fii; § It 

5 hundred dollars or by imprisonment for not less than three months 

6 nor more than two years, or by both such fine and imprisonment. 

1 Section 22. The provisions of chapter one hundred and ance e iawnot r to 

2 eighteen, except section ninety-five, shall not apply to corporations i^ 1 ^ 

3 organized or admitted under and transacting business authorized by J||7. 204, § 2. 

4 the provisions of this chapter ; and corporations or associations here- p. s. 115, §16. 

5 tofore exempted by special laws from the provisions of chapter four 1894; 367; § is. 

** 1 OHO J^ I coo 

6 hundred and forty-two of the acts of the year eighteen hundred and 1899; 442,' § 27! 

7 ninety-nine shall not be subject to the provisions of this chapter. iTOMaBsA!^ 



CHAPTEK 120. 

OF ASSESSMENT INSURANCE. 



1 Section 1 . Every contract whereby a benefit is to accrue through f^/an^on 

2 the death of the insured by accident or his physical disability from tb e assessment 

3 accident or sickness to a party or parties named therein, which Certain 

4 benefit is conditioned, not upon fixed payments but upon the col- exl'mpt. a lons 

5 lection from time to time of an assessment upon persons holding \lw] HI] f \] 

6 similar contracts, shall be a contract of insurance on the assessment ucVa^s. 217, 

7 plan ; and the business involving the issuance of such contracts shall i?(j* MasB . 103 

8 be carried on in this commonwealth only by duly organized corpo- Jj>| Mass- 224. 

9 rations subject to the provisions and requirements of this chapter ; 109 Mass.' 510! 

10 but fraternal beneficiary organizations conducting their business in 224. 

1 1 accordance with the provisions of the preceding chapter shall be "2 Mass.' 27I.' 

12 exempt from the provisions of this chapter. . j^lssfso?.'] 

1 Section 2. Seven or more persons, residents of this common- Formation of 

2 wealth, may form a corporation for the purpose of transacting the isaTisa, §2.' 

3 business of assessment insurance as hereinafter provided. IfoVa^sAoi. 

1 Section 3. The corporation shall be formed in the manner pre- organization, 

2 scribed in, and be subject to the provisions of, sections fifteen to i885,i83,§2. 



1178 



ASSESSMENT INSURANCE. 



[Chap. 120. 



1890, 421, §§ 3- twenty, inclusive, of chapter one hundred and ten, except as ex- 3 

150 Mass. 104. pressly provided in section two of chapter one hundred and nine- 4 

teen. 5 



Terms of 

office. 

1890, 421, § 7. 



Section 4. Officers chosen at the first meeting of the associates 1 

shall hold office until the next succeeding meeting of the corpora- 2 

tion for the election of officers, the date for which, within two years 3 

of the time of organization, shall be prescribed by the by-laws, at 4 

which, and thereafter at least biennially, the before-mentioned offi- 5 

cers shall be chosen and shall hold office until their successors are 6 

elected and qualified. 7 



Business 
authorized. 
1885, 183, § 2. 
1890, 421, § 9. 
150 Mass. 104. 



Section 5. Such corporation shall not assume any liability nor 1 

make any other than the advance assessment nor issue any policy or 2 

certificate, until at least five hundred persons have subscribed in 3 

writing an agreement to be insured therein, and have each paid in 4 

one full benefit assessment, to be held in trust for the beneficiaries, 5 

which shall have been deposited as hereinafter provided, nor until 6 

the insurance commissioner has certified that it has complied with 7 

the provisions of law and is authorized to transact business. The 8 

insurance commissioner may require of the applicants for such cer- 9 

tificate, and at any time of the officers of any corporation organized 10 

or transacting business under the provisions of this chapter, such 11 

evidence, under oath or otherwise, relative to the affairs of the cor- 12 

poration as he may consider necessary. 13 



Amount to be 
paid to assured 
to be specified 
in policy. 
1885, 183, § 5. 
1890, 421, § 10. 

152 Mass. 288. 

153 Mass. 173. 
156 Mass. 435. 
162 Mass. 100. 
164 Mass. 347. 
171 Mass. 194. 
174 Mass. 274. 



Upon failure to 
pay for thirty 
days may be 
notified to sus- 
pend business. 



Investigation. 
1885, 183, § 6. 
1890, 421, § 11. 
171 Mass. 194. 



Section 6. Every policy issued by any such corporation shall 1 

specify the amount of money which it promises to pay upon the con- 2 

tingency insured against, which shall not be larger than the amount 3 

of one benefit assessment upon the entire membership, and the 4 

number of days after satisfactory proof of the happening of such con- 5 

tingency at which such payment shall be made ; and upon the 6 

occurrence of such contingency, the beneficiary may maintain an 7 

action upon such policy in his own name ; and the indebtedness 8 

thereon shall be alien upon all the property of the corporation, with 9 

priority over all indebtedness thereafter incurred, except as here- 10 

inafter provided in case of the distribution of assets of an insolvent 11 

corporation. If the insurance commissioner shall be satisfied, on 12 

investigation, that any such corporation has refused or failed to pay 13 

such indebtedness for thirty days after it became due, and after proper 14 

demand, he shall notify the corporation to suspend business until such 15 

indebtedness is fully paid. While such notice is in force no officer 16 

or agent of the corporation shall make, sign or issue any policy of 17 

insurance, nor issue any notice of nor call upon the members for 18 

payment of an assessment ; and all money received from any source 19 

by the corporation, its agents or officers, shall be forthwith depos- 20 

ited in a bank or trust company to await a final decision as provided 21 

in the following section. 22 

Section 7. When the insurance commissioner shall have given 1 

the notice required by the provisions of the preceding section, he 2 

shall proceed without delay to investigate the condition of the cor- 3 

poration, and shall have full power, in person or by deputy, to ex- 4 

amine its books, papers and accounts, and to examine under oath its 5 



Chap. 120.] assessment insurance. 1179 

6 officers, agents, clerks and policy holders, or other persons having 

7 knowledge of its business ; and if it shall appear to him that its 

8 liabilities exceed its resources, and that it cannot within a reasonable 

9 time, not more than three months from the date of the original default, 

10 pay its accrued indebtedness in full, he shall report the facts to the 

11 attorney general, who shall, upon the commissioner's report, apply 

12 to the supreme judicial court or the superior court for an order 

13 closing the business of the corporation, and appointing a receiver for Receivership. 

14 the distribution of its assets among creditors ; but ten days' notice i6iVass. 229. 

15 shall be given before a final order therein, and the court may make 163Mass - 560 « 

16 such order as the interest of the corporation and the public may 

17 require. 

1 Section 8. No such corporation shall transfer its risks to or Transfer of 

2 reinsure them in any other corporation unless said contract of insurance, 

3 transfer or reinsurance is first submitted to and approved by a two- f||g > 183 § 7 

4 thirds vote of a meeting of the insured called to consider the same, 1890 > 421 > § 12< 

5 of which meeting a written or printed notice shall be mailed to each 

6 policy holder at least ten days before the day fixed for said meet- 

7 irig ; and if said transfer or reinsurance shall be approved every 

8 policy holder of said corporation who shall file with the secretary 

9 thereof within five days after said meeting written notice of his 

10 preference to be transferred to a corporation other than that named 

11 in the contract shall be accorded all the rights and privileges if 

12 any in aid of such transfer as would have been accorded under the 

13 terms of the said contract had he been transferred to the corporation 

14 named therein. Such vote of approval of a contract of reinsurance Dissolution of 

15 or transfer shall operate to dissolve the corporation, and all liability rems^ance. 7 

16 upon its policies shall cease at the expiration of the before-mentioned 

17 five days following such vote, but its officers may thereafter perform 

18 any act necessary to close its affairs. If such vote of approval of 

19 reinsurance or transfer shall include an agreement for the transfer 

20 of an emergency fund to the reinsuring corporation, the insurance 

21 commissioner may approve an order therefor ; and thereupon the 

22 treasurer and receiver general shall transfer said emergency fund in 

23 accordance with said agreement. 

1 Section 9. If the insurance commissioner, on investigation, is corporation 

2 satisfied that any such corporation has exceeded its powers, failed powJW.Ttc., 8 

3 to comply with any provision of law or is conducting business Sd een " 

4 fraudulently, he shall report the facts to the attorney general, ilS ll; f 13. 

5 who shall thereupon apply to the supreme judicial court or the ra Mass. 274. 

6 superior court for an injunction restraining such corporation from 

7 the further prosecution of business. The court may, upon hearing, 

8 issue such injunction, or decree the removal of any officer, and sub- 

9 stitute a suitable person to serve in his stead until a successor is 

10 chosen, and may make such other order and decrees as the interests 

11 of the corporation and the public may require. 

1 Section 10. Such corporations shall provide in their contracts Emergency 

2 with policy holders for the accumulation of an emergency fund, accumulated. 

3 which shall be at all times not less than the proceeds of one iliojlif; f fi. 

4 benefit assessment on all policy holders thereof; said fund shall be JSiSSffi 

5 accumulated within six months from the date of their incorporation, fj'^jfjf.^j 



1180 



ASSESSMENT INSURANCE. 



[Chap. 120. 



Investment of 
fund. 



Disposition of 
fund when 
corporation 
discontinues 
business. 



and, together with the income thereon, shall be a trust for the pay- 6 

ment of death and disability claims : provided, that when said emer- 7 

gency fund is in excess of double the amount of one benefit assessment 8 

upon the entire membership, the corporation may apply such excess, 9 

or any portion thereof, in reduction of assessments upon policy hold- 10 

ers, or in such other equitable division or apportionment thereof as 11 

its rules or contracts may provide. Said fund shall be invested in 12 

securities in which insurance companies are allowed by law to invest 13 

their capital, and of such securities an amount not less than one as- 14 

sessment shall be deposited in trust with the treasurer and receiver 15 

general ; but the corporation shall have at all times, on approval of 16 

the insurance commissioner, the right to exchange any part of said 17 

securities for others of a like amount and character. Any portion of 18 

said emergency fund may be drawn by a requisition , signed by two- 19 

thirds of the directors and indorsed by the insurance commissioner, 20 

setting forth that the same is to be used for the purposes of said 21 

trust. If such corporation shall discontinue business the supreme 22 

judicial court or the superior court may appoint a receiver to ad- 23 

minister any unexhausted portion of said fund, which shall be 24 

used, less such compensation, not to exceed five per cent thereof 25 

if the assets exceed five thousand dollars, as the court may allow 26 

the receiver: first, in the payment of accrued claims upon policies, 27 

and if insufficient to pay such claims in full, in their payment pro 28 

rata ; second, if a balance remain, in the payment of like claims 29 

thereafter accruing in the order of their occurrence. 30 



Liability of 
officers for 
failure to 

assess. 

1890, 421, § 15. 



Section 11. The officers of a corporation refusing or neglecting, 1 

for sixty days after the filing of satisfactory proof of the accidental 2 

death of a policy holder, if the claim arising thereon is not disputed 3 

and if the benefit or emergency fund is not sufficient to pay said 4 

claim, to levy an assessment to provide for its payment, shall thereby 5 

become liable to the beneficiary under said policy in an amount 6 

not exceeding the face of said claim. 7 



Admission of 
foreign cor- 
porations. 
1885, 183, § 9. 
1890, 421, § 16. 



Section 12. A corporation organized under authority of an- 1 

other state or government to issue policies of insurance on the 2 

assessment plan, as a condition precedent to transacting business in 3 

this commonwealth, shall deposit with the insurance commissioner 4 

a certified copy of its charter ; a statement, under oath, of its 5 

president and secretary in the form required by the insurance com- 6 

missioner, of its business for the preceding year ; a certificate, under 7 

oath, of its president and secretary, that it is paying, and for the 8 

twelve months then last preceding has paid, the maximum amount 9 

named in its policies in full ; a certificate from the proper authority 10 

in its home state that corporations of this commonwealth engaged 11 

according to the provisions of this chapter in insurance on the assess- 12 

ment plan, are legally entitled to do business in such state ; a copy 13 

of its policy and application, which must show that benefits are 14 

provided for by assessment upon policy holders ; evidence satisfac- 15 

tory to the insurance commissioner that the corporation has accumu- 16 

lated and maintains a fund equal in amount to that required by the 17 

provisions of section ten, that such accumulation is permitted by 18 

the law of its incorporation and is a trust for the benefit of policy 19 

holders only, and is securely invested. The insurance commis- 20 



Chap. 120.] assessment insurance. 1181 

21 sioner shall thereupon issue or renew a certificate authorizing such Renewal or 

, ... . ° revocation of 

22 corporation to do business in this commonwealth; and such au- authority to do 

23 thority shall be revoked if the insurance commissioner, on investi- 

24 gation, is satisfied that such corporation is not paying in full the 

25 maximum amount named in its policies, or that it has otherwise 

26 failed to comply with any provision of this chapter or its own con- 

27 tracts. Upon such revocation the commissioner shall cause notice 

28 thereof to be published in the newspaper in which the general laws 

29 are published ; and no new business shall be thereafter done by it 

30 or its agents in this commonwealth. A foreign corporation admitted ^ s, 183 14 

31 under the provisions of this section to transact business shall pay, 

32 on filing its application, thirty dollars, and for each annual state- 

33 ment thereafter, twenty dollars. If any other state or country shall Extra duties. 

34 impose any obligation in excess of those imposed by the provisions 

35 of this chapter upon any such corporation of this commonwealth, 

36 like obligation shall be imposed on similar corporations, and their 

37 agents, of such state or country doing business in this common- 

38 wealth. 

1 Section 13. A foreign corporation transacting the business of ^gf 1 ^ U8 

2 insurance under the provisions of this chapter shall file with the 

3 insurance commissioner the name and residence of each person it 

4 shall appoint or employ to act as its agent; and whoever shall 

5 assume to act as such agent, or shall, on behalf of such corporation, 

6 in any manner for compensation aid in negotiating contracts of 

7 insurance for a person other than himself, before such notice of 

8 appointment or employment is filed, shall be punished as provided 

9 in section twenty-one. 

1 Section 14. A person soliciting assessment insurance for, or soliciting 

c. . , . . i . l • • insurance in 

2 in any manner assisting in placing such insurance in, any corpora- unauthorized 

3 tion or organization not authorized to do business in this common- i89o^2if§ 19. 

4 wealth shall be punished as provided in section twenty-one. 

1 Section 15. No corporation doing business under this chapter Age limit, etc. 

2 shall issue a policy in favor of any person as beneficiary who has isssfis-s, § io. 

3 no insurable interest, and an assignment of a policy to a person ^ 90 ' m ' §§ 12 * 

4 having no such interest shall render such policy void. No such {j^ffs. 104. 

5 corporation shall insure any person who is more than seventy years Jf ^ a ^; £?°- 

6 of age when the policy is issued, except in case of transfer or re- 348, 514.] 

7 insurance as provided in section eight. Every call for payments 

8 by the policy holders shall distinctly state the purpose of the same, 

9 and if any part of the amount called for is to be used for expenses 

10 the call shall clearly state how much. Funds received from benefit 

11 calls shall be expended only in the payment of benefits, but expenses 

12 incurred in investigating and contesting cases believed to be fraud- 

13 ulent may be considered as part of the benefit expense. 

1 Section 16. All policies issued to persons within this com- copies of 

2 monwealth by corporations transacting the business of insurance e^.toVe 011 ' 

3 herein under the provisions of this chapter, which policies contain p^ C y ed 10 

4 any reference to the application of the insured, or the constitution, ilMsVata: 

5 by-laws or other rules of the corporation, either as forming a part 172 Mass. 278. 

6 of or affecting the policy or contract between the parties thereto, 



1182 



ASSESSMENT INSURANCE. 



[Chap. 120. 



Policy, etc., to 
be plainly 
printed. 



shall contain or have attached to said policy a correct copy of the 7 

application as signed by the applicant, and the portions of the con- 8 

stitution, by-laws or other rules referred to ; and unless so attached 9 

and accompanying the policy, no such application, constitution, 10 

by-laws or other rules shall be received as evidence in any con- 11 

troversy between the parties to or interested in said policy, and 12 

shall not be considered a part of the policy or of the contract 13 

between such parties. Said policy, application, constitution, by- 14 

laws or other rules shall be plainly printed, and no portion thereof 15 

shall be in type smaller than brevier ; but the provisions of this 16 

section shall not apply to health certificates or contributional 17 

receipts or other evidences used in reinstatement of a policy. 18 



Annual re- 
turns. 

1885, 183, § 13. 
1890, 421, § 22. 
1899, 472. 
158 Mass. 224, 
227. 



Examination 
of affairs of 
domestic 
insurance 
corporation. 



— of foreign 

insurance 

companies. 



Section 17. Every corporation doing the business of insur- 1 
ance under the provisions of this chapter shall annually, on or 2 

before the first day of February, return to the insurance commis- 3 

sioner, in such manner and form and including such information as 4 

he may require, a sworn statement of its affairs for the year ending 5 

on the preceding thirty-first day of December. Such statement 6 

shall be signed and sworn to by the president and secretary of the 7 

corporation or, in their absence, by two of its principal officers. A 8 

corporation which wilfully makes and a person who wilfully makes 9 

oath to or subscribes a false statement, if the statement is required 10 

by law, shall be punished by a fine of not less than five hundred nor 11 

more than five thousand dollars and such person, if he has made oath 12 

to such statement, shall also be guilty of perjury. The insurance 13 

commissioner may personally or by his deputy, examiner or chief 14 

clerk visit each domestic insurance corporation doing business on the 15 

assessment plan and thoroughly inspect and examine its affairs to 16 

ascertain its financial condition, its ability to fulfil its obligations, 17 

and whether it has complied with the provisions of law. If he con- 18 

siders it prudent for the protection of the policy holders in this 19 

commonwealth, he may in like manner visit and examine, or cause 20 

to be visited and examined by some competent person or persons 21 

he may appoint for that purpose, any foreign insurance company 22 

doing business on the assessment plan, applying for admission or 23 

already admitted to do business in this commonwealth, and such '24 

company shall pay the expense of such examination, including the 25 

expenses of the commissioner or the persons he may appoint and 26 

the expenses and compensation of all assistants employed therein. 27 

For the purposes aforesaid the commissioner or person making the 28 

examination shall have free access to all the books and papers that 29 

relate to the business of such company, and to the books and papers 30 

kept by any of its agents, and may summon, administer the oath 31 

to and examine as witnesses the directors, officers, agents and trus- 32 

tees of any such company and any other persons, relative to its 33 

affairs, transactions and condition. 34 



Benefit not 
liable to 
attachment. 
1885, 183, § 11. 
1890, 421, « 23. 
150 Mass. 104. 
156 Mass. 3. 



Section 18. The benefit to be paid by any corporation author- 1 

ized to do the business of insurance under the provisions of this 2 

chapter, shall not be liable to attachment by trustee or other proc- 3 

ess, or be seized, taken, appropriated or applied by any legal or 4 

equitable process, nor by operation of law, to pay any debt or lia- 5 

bility of a policy holder, or any beneficiary therein. 6 



Chap. 121.] gas and electric light companies. 1183 

1 Section 19. A person who knowingly or wilfully makes a false Penalty on 

2 or fraudulent statement or representation in or relative to an ap- Smg faise° r 

3 plication for insurance, or for the purpose of obtaining any money fssif i^" §' ll! 5 " 

4 or benefit, in a corporation transacting the business of insurance 1890 > 421 > § u - 

5 under the provisions of this chapter, shall be punished by a fine of 

6 not less than one hundred nor more than five hundred dollars or by 

7 imprisonment for not less than thirty days nor more than one year, 

8 or by both such fine and imprisonment ; and a person who wil- 

9 fully makes a false statement of a material fact or thing in a sworn 

10 statement as to the death or disability of a policy holder in such 

11 corporation, for the purpose of procuring payment of a benefit 

12 named in the policy of such holder, shall be guilty of perjury. 

1 Section 20. A corporation existing under the laws of this Reincorpora. 

2 commonwealth, and now engaged in transacting the business of isss,' lis,' § 3. 

3 insurance on the assessment plan may continue to exercise all itoVf B VioL' 

4 rights, powers and privileges conferred by this chapter, or its 

5 articles of incorporation not inconsistent herewith, subject to the 

6 provisions of this chapter. No certificate of incorporation granted w^^hin 6 

7 under the provisions of this chapter shall continue valid after one one y ear - 

8 year from the date thereof unless the organization has been com- 

9 pleted and business begun thereunder. 

1 Section 21. A corporation transacting in this commonwealth f^ 8 ^' § 26 

2 insurance on the assessment plan and an agent or officer of such 

3 corporation neglecting to comply with or violating any provision of 

4 this chapter shall be punished by a fine of not less than one hun- 

5 dred nor more than five hundred dollars. 

1 Section 22. Except as hereinbefore and in chapter one hundred f^j^fe® 

2 and nineteen specifically provided, all insurance or benefit contracts J^/^ § 2 ^- 

3 relative to insurance on the assessment plan within this common- 

4 wealth, or with residents thereof, shall be governed by the pro- 

5 visions and be subject to the limitations of chapter one hundred and 

6 eighteen. 



CHAPTEE 121. 

OF GAS AND ELECTRIC LIGHT COMPANIES. 

Sections 1-9. — Board of Gas and Electric Light Commissioners. 
Sections 10-41. — Gas and Electric Light Companies. 

BOARD OF GAS AND ELECTRIC LIGHT COMMISSIONERS. 

1 Section 1. There shall be a board of gas and electric light com- Board of gas 

2 missioners consisting of three persons, citizens of this common- ujJht e comiSs. 

3 wealth, one of whom shall annually before the first day of July be f^lu t §§ l-i. 

4 appointed by the governor, with the advice and consent of the coun- \*&> ||j- 

5 cil, for a term of three years from said day. The commissioners Jgjjl'gj}'- 

6 shall be sworn to the faithful performance of their official duties. 

7 They shall not be in the employ of or own any stock in any gas 

8 or electric light company or be in any way, directly or indi- 

9 rectly, pecuniarily interested in the manufacture or sale of gas or 



1184 



GAS AND ELECTRIC LIGHT COMPANIES. 



[Chap. 121. 



electric light or of any article or commodity used by gas or electric 10 

light companies or used for any purpose connected with the manu- 11 

facture or sale of gas or electric light, and shall not engage in any 12 

other business. The governor shall designate the chairman of the 13 

board and may, with the advice and consent of the council, remove 14 

any member for cause after notice and hearing. The chairman of 15 

the board shall receive from the commonwealth an annual salary of 16 

four thousand dollars and each of the other two members an annual 17 

salary of three thousand five hundred dollars. The board shall be 18 

provided with an office in the state house or in some other suitable 19 

place in the city of Boston in which their records shall be kept. 20 



Clerk of com- 
mission. 
1885, 314, § 1. 
1894, 503. 
1898, 499. 



Incidental ex- 
penses and 
clerical assist- 
ance. 

1885, 314, § 5. 
1891, 351. 
1895, 463, § 1. 
1899, 365. 

Assessment of 
expenses. 
1885, 314, § 6. 
1887, 382, § 4. 
1891, 351. 
1895, 463, § 1. 
1899, 365. 



Section 2. The board shall have a clerk, who shall be appointed 1 

by the governor, with the advice and consent of the council, who 2 

shall not engage in any other business, shall keep a full and faithful 3 

record of the proceedings of the board, shall serve such notices and 4 

perform such other duties as the commissioners may require and 5 

shall be sworn before entering upon the performance of his duties. 6 

Section 3. The board may expend not more than three thousand 1 

dollars annually for necessary statistics, books and stationery and 2 

for necessary incidental expenses ; and not more than forty-one 3 

hundred dollars annually for clerical assistance. 1901,499, §1. 4 

Section 4. The annual expenses of the commissioners and clerk, 1 

including salaries, shall be borne by the several gas and electric 2 

light companies in proportion to their gross earnings, and shall be 3 

assessed and recovered in the manner provided by section ten of 4 

chapter one hundred and eleven for the assessment and recovery of 5 

the expenses of the railroad commissioners. 6 



of e board dutieB Section 5. Said board shall have the general supervision of all 

ill?' 382 ' l§ 8 i 6- cor P ora ti° ns an d companies which are engaged in the manufacture 

385, §§7, io. ' ' and sale of gas or electricity for light or heat, and shall make all 

necessary examinations and inquiries and keep themselves informed 

as to the compliance of the several corporations and companies 

with the provisions of law. 



1 

2 
3 
4 
5 
6 



Regulation of 
purity of gas. 
1885, 314, § 11. 



Section 6. The board shall, from time to time, ascertain what 1 

degree of purity can reasonably be required in gas made and sup- 2 

plied by corporations and companies engaged in the manufacture 3 

and sale of gas for light or heat, and shall report to the general 4 

court, when, in its opinion, any change in the law relative thereto 5 

is desirable. 6 



Annual report. 

1885, 314, § 14. 

1886, 346, § 2. 

1887, 382, §§ 2, 6. 

1888, 350, § 2. 



Section 7. The board shall annually, on or before the first 1 

Wednesday in January, transmit to the secretary of the common- 2 

wealth a report to the general court of its doings, with such sugges- 3 

tions as to the condition of affairs or conduct of corporations and 4 

companies which are engaged in the manufacture and sale of gas or 5 

electricity for light or heat as may be appropriate, with such abstracts 6 

of the returns required by section thirty-one as it considers ex- 7 

pedient and an abstract of the accidents reported to it under the 8 

provisions of section thirty-nine. 9 



Chap. 121.] gas and electric light companies. 1185 

1 Section 8. If a corporation or company which is engaged in violations of 

2 the manufacture and sale of gas or electricity for light or heat is*®, 3i4,°§ \i! ' 

3 violates or neglects to comply with the provisions of law, or refuses [lopfi'^d?' 6 ' 

4 or neglects to comply with any lawful order of the board, the ^ 

5 board shall give notice thereof in writing to such corporation or 

6 company, and to the attorney general for his action. 

1 Section 9. The supreme judicial court or the superior court Enforcement 

2 shall have jurisdiction in equity, upon the application of said board, isss, 314, § 13. 

3 to enforce all lawful orders of said board and all provisions of law 18961 426! 

4 relative to cities, towns, corporations or persons engaged in the 

5 manufacture and sale of gas or electricity for light or heat. 

GAS AND ELECTRIC LIGHT COMPANIES. 

1 Section 10. No gas company, unless specially authorized, shall Bonds of gas 

• 1. J j. i j.1. Zx. l / \ company to be 

2 issue any bonds at less than the par value, nor tor an amount ex- issued only at 

3 ceeding its capital actually paid in and applied to the purposes of 1886, 346, § 3. 

4 its incorporation. 159 Mass. 505. 

1 Section 11. The proceeds of all bonds which may be issued olproceed^of 

2 shall be applied to the payment of obligations incurred for the en- 1886, 346, § 3 

3 largement or extension of the works and the purchase of real estate i896| 473.' 

■ 159 Mass 505 

4 for the use of such gas company or for the payment of liabilities 

5 existing on the thirtieth day of June in the year eighteen hundred 

6 and eighty-six. A company may, subject to the provisions of sec- 

7 tions twenty-four, twenty-six, twenty-seven and twenty-eight of 

8 chapter one hundred and nine, upon vote of a majority in interest 

9 of its stockholders at a meeting duly called for the purpose, issue 

10 bonds in accordance with the provisions of this and the preceding 

11 section, to bear interest at not more than six per cent per annum, 

12 and may secure the payment of principal and interest by a mortgage 

13 of its franchise and other property. 

1 Section 12. Any corporation which is organized under the laws Mortgage 

2 of this commonwealth and is authorized to erect and maintain poles, eiectricfight 

3 wires or other fixtures in, over or under streets and highways for the is^ri! 68 " 

4 purpose of furnishing electricity for light or power may secure the 

5 payment of bonds issued by it by a mortgage of its franchise in 

6 connection with its corporeal property, so that all persons who 

7 acquire any poles, wires or fixtures by virtue of such mortgage 

8 shall have the same rights and be subject to the same obligations 

9 relative to their erection, care and maintenance as the corporation 

10 would have had or been subject to if the mortgage had not been 

11 made. Such mortgage and all bonds shall be authorized by vote of 

12 a majority in interest of the stockholders of the corporation at a 

13 meeting called for that purpose ; and the rate of interest on such 

14 bonds shall not exceed six per cent per annum. No bonds shall be 

15 issued by any such corporation for an amount exceeding its capital 

16 then actually paid in and applied to the purposes of the corporation. 

1 Section 13. A gas company shall not transfer its franchise, lease Transfer of 

2 its works or contract with any person, association or corporation to 188M4M4. 

3 carry on its works, without the authority of the general court. iee Mass. 217. 



1186 



GAS AND ELECTEIC LIGHT COMPANIES. 



[Chap. 121. 



Electric light 
and power, 
authority to 
furnish. 
1887, 385, § 1. 



Section 14. The board of gas and electric light commissioners, 1 

upon application in writing by any gas light company which is 2 

organized or chartered under the laws of the commonwealth, may, 3 

after notice and a hearing, authorize said company to engage in the 4 

business of generating and furnishing electricity for light and power. 5 

A gas company may engage in such business in the territory, or any 6 

such part thereof as the board may designate, in which it is author- 7 

ized to supply gas ; but a company shall not engage in said business 8 

unless authorized by vote of two-thirds of the stockholders, repre- 9 

senting not less than two-thirds of the stock, at a meeting duly 10 

called for that purpose. Said company shall file in the office of the 11 

secretary of the commonwealth a certificate as provided in section 12 

forty-seven of chapter one hundred and ten. 13 



Time pre- 
scribed for 
equipment of 
plant. 
1887. 385, § 2. 



Kecord of 
orders for 
erection of 
plant and of 
compliance. 
1887, 385, § 3. 



Section 15. The board, when granting such authority, shall pre- 1 

scribe the time, not exceeding six months, within which said company 2 

shall erect and equip a plant for generating electricity for light and 3 

power such as may be required in the specified territory, and shall 4 

designate the minimum capacity of such plant ; and if the company 5 

neglects to erect and complete said plant within the time prescribed, 6 

said authority shall become void and no such authority shall be 7 

again granted to it within two years thereafter. The board may 8 

for cause shown extend the time for erecting and equipping said 9 

plant for not more than three months from the expiration of the 10 

time first prescribed. 11 

Section 16. At the expiration of such time or of any extension 1 

thereof, said board shall, after such examination as it considers 2 

proper, make, in a book kept for that purpose, a record that its 3 

orders relative to the erection and completion of said plant have or 4 

have not been complied with, which shall be conclusive evidence of 5 

the truth of the matters stated therein. 6 



Erection of 
poles and wires 
regulated. 
1887, 385, § 4. 



Damages. 
1887, 385, § 5. 



Section 17. Said company, except upon the purchase or lease 1 

of the property, licenses, rights and franchises of an electric light 2 

company as authorized under the provisions of section twenty-two, 3 

shall not erect or maintain any poles for the support of wires, nor 4 

erect or maintain any wires in, through or over any streets or 5 

highways, nor dig up any streets or highways for the purpose of 6 

laying said wires underground, until it has, upon petition in writ- 7 

ing, obtained the consent in writing of the mayor and aldermen of 8 

cities or the selectmen of towns in which said streets are located. 9 

It may thereupon, under the direction and control of the mayor and 10 

aldermen or selectmen, dig up and open the "ground in any streets 11 

and highways, so far as is necessary for the purpose of laying wires 12 

and for the purpose of keeping said wires in repair and for the pur- 13 

pose of erecting and maintaining lines of wire upon or above the 14 

surface of such streets and highways. It shall put all streets and 15 

highways which it opens into as good repair as they were in when 16 

opened, and upon failure so to do within a reasonable time, shall be 17 

deemed guilty of a nuisance. 18 

Section 18. If a person who is injured in his person or prop- 1 

erty by a defect in a public way which is caused by the operations 2 



Chap. 121.] gas and electric light companies. 1187 

3 of said company in laying, erecting, maintaining or repairing its 

4 lines of wires or in otherwise obstructing such way recovers dam- 

5 ages therefor of the city or town in which such injury is received, 

6 such city or town shall, if said company is liable for said damages 

7 and has had reasonable notice to appear and defend the original 

8 action, be entitled to recover of said company the damages so 

9 recovered from it with the taxable costs of both parties in such 
10 action. 

1 Section 19. The mayor and aldermen of cities and the select- Regulation of 

2 men of towns, respectively, may regulate, restrict and control all health and 

3 acts of said company which may in any manner affect the health, inhabitants. 

4 safety, convenience or property of the inhabitants of their respec- 1887 > 385 > § 6 - 

5 tive cities or towns. 

1 Section 20. Gas companies, as respecting the business in which an^eiectricP 8 

2 thev are, bv the provisions of section fourteen, authorized to engage, light commis- 

3 shall be subject to the control of the board of gas and electric light i887,385,§7. 

4 commissioners in the same manner and to the same extent as they 

5 are in respect of the business of furnishing gas. 

1 Section 21. Except as hereinbefore expressly provided, gas Powers and 

2 companies shall, in exercising the powers conferred by the provi- panf e 8 s° f com " 

3 sions of the seven preceding sections, have all the powers and 1887, 385 « § 8 - 

4 privileges and be subject to all the duties, restrictions and liabilities 

5 of companies which are engaged in the transmission of electricity 

6 for light or power under the general laws which now are or here- 

7 after may be in force. 

1 Section 22. Said gas companies so authorized by the board of ^"^lls * 

2 gas and electric light commissioners mav purchase or lease and use etc of electric 

o o j *- lisriit com- 

3 the property, licenses, rights, privileges and franchises of any elec- panics. 

4 trie light company which is engaged in the business of furnishing ' 

5 electric light or power in the territory in which such gas company 

6 may be authorized to furnish such light and power. 

1 Section 23. The provisions of the nine preceding sections, Application to 

2 which are applicable to gas companies authorized to engage in the Ind power 

3 business of generating and furnishing electricity for light and power, i^^T'io. 

4 shall also apply to electric light and power companies. 

1 Section 24. A person or corporation, not a railway company, Electricity for 

2 engaged in the business of transmitting electricity for light or cookingp^r- 

3 power through wires located over or under the streets and highways ^420. 

4 may sell such electricity for operating heating, cooking and kindred 

5 apparatus and motors ; but the provisions of this section shall not 

6 confer upon such person or corporation the exclusive right to sell 

7 or distribute electricity in any city or town for such purposes. 

1 Section 25. In a city or town in which a gas company exists in a second gas 

2 active operation, or in which a person owns or operates works for to "ay^ipes , 

3 the manufacture and sale of gas for light or heat, no other gas com- isss^w, § 10. 

4 pany, nor any other persons, shall dig up and open the streets, lanes 1886 > 346 > § 7 - 



1188 GAS AND ELECTKIC LIGHT COMPANIES. [CHAP. 121. 

and highways of such city or town, for the purpose of laying gas 5 

pipes therein, without the consent of the mayor and aldermen or 6 

selectmen, granted after notice by publication or otherwise to all 7 

parties interested and a public hearing before them. 8 

wire^of differ. Section 26. In a city or town in which a company, corporation 1 

ent companies or person is engaged in the manufacture or sale of electric light no 2 

restricted. * & & > & 

1887, 382, §3. other person, firm or corporation shall lay, erect, maintain or use, 3 

i895|35o! over or under the streets, lanes and highways of such city or town, 4 

157 Mass. 86. any wires for the transmission of electricity for light, heat or power 5 

[iop.A.G.88.] exce pt w ires used for heat or power bystreet railway companies, 6 

without the consent of the mayor and aldermen of such city or select- 7 

men of such town granted after notice to all parties interested and a 8 

public hearing. 9 

m$5 e 3ii §16. Section 27. Any corporation, company or person aggrieved by 1 

rfo' 38 i § g' ^ e decision of the mayor and aldermen of a city or selectmen of a 2 

89.] town, under the provisions of the two preceding sections, may, 3 

within thirty days from the notice of said decision, appeal therefrom 4 

to the board of gas and electric light commissioners, and said board 5 

shall thereupon give due notice and hear all parties interested, and 6 

its decision thereon shall be final. 7 

pany Mohave 1 " Section 28. Corporations and companies which are engaged in 1 

office where the manufacture and sale of gas or electricity for light or heat shall 2 

works are ^ •/ o 

located. have an oflice in the city or town in which their works are located 3 

i887| m, §§ 2, 6. and shall keep in said office all the books and papers which are 4 

required by law to be kept within the commonwealth, and also such 5 

books as may be required to show their receipts, expenditures, 6 

indebtedness and financial condition ; and shall at all times, upon 7 

application, submit their books to the inspection of the board of 8 

gas and electric light commissioners. 9 

be°kept h?"' to Section29. Corporations and companies which are engaged in 1 

prescribed the manufacture and sale of gas or electricity for light or heat shall 2 

1886, 346, § 2. keep their books and accounts in a form to be prescribed by the 3 

' ' ' board of gas and electric light commissioners, and the accounts shall 4 

be closed annually on the thirtieth day of June, so that a balance 5 

sheet of that date can be taken therefrom. Manufacturing com- 6 

panies in which the manufacture of gas is a minor portion of their 7 

business shall be required to keep accounts of the expenses and 8 

income of their gas business only. 9 

fo^beTepT 01 ^ 8 Section 30. Persons or corporations engaged in the manu- 1 

1896,356,480. facture or sale of gas or electric light shall keep such records of 2 

their work at their manufacturing station, and in respect to their 3 

distributing plant, as the board of gas and electric light commisr 4 

sioners may from time to time require. Said records shall be in 5 

such form as the board may prescribe. 6 

tams alre " Section 31. Corporations and companies engaged in the manu- 1 

1885, 314, § 7. facture and sale of gas or electricity for light or heat shall annually, 2 



Chap. 121.] gas and electric light companies. 1189 

3 on or before the second Wednesday of September, make to said ifif* Hi* 1 1" 

4 board, in a form prescribed by it, a return for the year ending on [iop.a'.g." 

5 the thirtieth day of June, signed and sworn to by its president and 

6 treasurer and a majority of the directors, of the amount of its author- 

7 ized capital, its indebtedness and financial condition, on the first day 

8 of January preceding, its income and expenses during the preceding 

9 year, its dividends paid out and declared, a list of the names of all 

10 its salaried officers, and the amount of the annual salary paid to each, 

11 and the balance sheet of its accounts as of the preceding thirtieth 

12 day of June. Every such corporation and company shall at all times, 

13 upon request, furnish any information required by the board relative 

14 to its condition, management and operation, and shall comply with 

15 all lawful orders of said board. 

1 Section 32. Each such gas or electric light corporation or com- Penalty. 

2 pany neglecting to make the annual return required by the preced- ill; 263! §7 ' 

3 ing section, shall, for the first fifteen days or portion thereof during 

4 which such neglect continues, forfeit five dollars a day ; for the sec- 

5 ond fifteen days or any portion thereof, ten dollars a day ; and for 

6 each day thereafter not more than fifteen dollars a day. If any com- 

7 pany unreasonably refuses or neglects to make such return, it shall, 

8 in addition thereto, forfeit not more than five hundred dollars for 

9 each offence. All forfeitures recovered under the provisions of this 

10 section shall be paid into the treasury of the commonwealth and 

11 applied to the payment of the expenses of the board. 

1 Section 33. Upon the petition in writing of any person who supply of gas 

2 has a residence or place of business in a city or town in which a how enforced. 

3 corporation or company is engaged in the manufacture and sale of 1II7; HI; |§ 5 2, 6. 

4 gas or electricity for light or heat, and who is aggrieved by the 

5 refusal or neglect of such corporation or company to supply him 

6 with gas or electricity, the board of gas and electric light commis- 

7 sioners may, after notice to the corporation or company to appear 

8 at a time and place therein named to show cause why the prayer of 

9 such petition should not be granted, issue an order directing and 

10 requiring the corporation or company to supply the petitioner with 

11 gas for either of said purposes or with electric light, upon such 

12 terms and conditions as are legal and reasonable. 

1 Section 34. Upon the complaint in writing of the mayor of a Quality of gas. 

2 city or the selectmen of a town in which a corporation or company 18871382; §§2, 6. 

3 engaged in the manufacture or sale of gas or electricity for light or llil' li?! § 1 * 

4 heat is located, or of twenty customers thereof, either of the quality 

5 or price of the gas or electric light sold and delivered, the board 

6 shall notify the corporation or company by leaving at its office a 

7 copy of such complaint, and shall thereupon after notice give a 

8 public hearing to such petitioner and such corporation or company, 

9 and after said hearing may order any reduction in the price of gas 

10 or electric light or improvement in quality thereof, and a report of 

11 such proceedings and the result thereof shall be included in its 

12 annual report. The maximum price fixed by such order shall not 

13 thereafter be increased by such corporation or company except as 

14 provided in the following section. 



1190 GAS AND ELECTRIC LIGHT COMPANIES. [CHAP. 121. 

ai^eiectffcity Section 35. A gas company in this commonwealth which far- 1 

how fixed and' nishes gas under the provisions of general or special laws or of any 2 

1888,350, §1. contract with a city or town, and a gas or electric light company 3 

which is engaged in the sale and delivery of electric light may apply 4 

to the board to fix and determine the price of gas or electricity 5 

to be thereafter sold and delivered by said company, or to revise 6 

any former order or action of said board relative to the quality or 7 

price thereof. Said board shall, after notice, give a public hearing 8 

to the petitioner, to the city or town and to all other persons 9 

interested, and thereafter may pass such orders relative to 10 

the price and quality of the gas or electricity thereafter to be fur- 11 

nished by said company as it determines are just and reasonable. 12 

Such orders shall be binding upon all parties until further order of 13 

said board. 14 

SecteicmeterB Section 36. A customer of an electric lighting company or 1 

i90i, 497, § i. such company may apply to the board of gas and electric light com- 2 

missioners for an examination and test of any meter in use upon a 3 

customer's premises. The board shall forthwith cause to be made 4 

by a competent and disinterested person such examination and test 5 

of said meter, if any, as in the judgment of the board is practicable 6 

and reasonable, and shall furnish to the company and to the cus- 7 

tomer a certificate of the result and expense thereof. If upon such 8 

examination it appears that the meter does not register correctly, the 9 

board may order the company to correct or remove such meter and 10 

to substitute a correct meter therefor. All fees for examinations 11 

and tests shall in the first instance be paid by the person or com- 12 

pany making application therefor ; but if the examination or test is 13 

made at the request of a customer and the meter is found to be in- 14 

correct because too fast the company shall pay such fees to the 15 

board, to be repaid by it to the applicant. A meter shall be 16 

deemed correct for the purposes of this section if it appears from 17 

such examination or test that it does not vary more than five per 18 

cent from the standard approved by the board. 19 

registration 1 " 1 Section 37. The person designated to make such inspection 1 

SoT^q- 66 2 ^ ma y a ^ an y reasonable time enter upon any premises where the meter 2 

' to be inspected is placed, for the purpose of making the inspection. 3 

He shall receive such compensation for his services as the board may 4 

determine, together with his necessary travelling and other ex- 5 

penses, which shall be audited by the board and paid from the 6 

treasury of the commonwealth ; but the total amount of compensa- 7 

tion and expenses shall not exceed three thousand dollars in any 8 

year ; and if the total amount of such compensation and expenses 9 

shall in any year exceed the amount of the fees received for such 10 

examinations and tests, the excess shall be assessed and recovered 11 

from the electric light companies in the manner now provided for the 12 

assessment and recovery of the other expenses of the board. All 13 

money received for fees for such examinations and tests shall be paid 14 

into the treasury of the commonwealth by the board quarterly on 15 

the first Mondays of January, April, July and October of each 16 

year. The board may establish such rules and regulations, fix such 17 

standards, prescribe such fees, and employ such means and methods 18 



Chap. 121.] gas and electric light companies. 1191 

19 in, and in connection with, such examinations and tests of electric 

20 meters as in the judgment of the board shall be most practicable, 

21 expedient and economical. The board may purchase such mate- 

22 rials, apparatus and standard measuring instruments for such exami- 

23 nations and tests as it may deem, necessary. 

1 Section 38. In the two preceding sections the word " com- Definition. 

2 pany" or "companies" shall include every person, partnership, 1901,497,§4 ' 

3 association, corporation and municipality engaged in the sale of 

4 incandescent electric light or electricity for incandescent lighting. 

1 Section 39. Companies, persons and municipalities engaged in Report of 

2 the manufacture and sale of gas or electricity for light or fuel shall, isssf 35o, s § 2. 

3 within twenty-four hours, report, in writing, to the board every 1896 > 338 - 

4 accident caused by the gas or electricity manufactured or supplied 

5 by them, whereby an employee or other person is injured, killed 

6 or rendered insensible, stating the time, place and circumstances 

7 of the accident and such other facts relative thereto as the board 

8 may require. The chief of police of the city or town, and the 

9 medical examiner of the district, in which such accident occurs shall, 

10 in writing, report the same to said board. The chief of police 

11 shall so report within twenty-four hours, and the medical examiner 

12 within seven days, after he has notice thereof. The members of 

13 the board shall personally investigate all cases which require inves- 

14 tigation. 

1 Section 40. Whoever unlawfully and intentionally injures or Penalty for 

2 destroys, or suffers to be injured or destroyed, any meter, pipe, dfverlfon of 

3 conduit, wire, line, pole, lamp or other apparatus belonging to a cor- ig^fm 7 ' etc * 

4 poration or company engaged in the manufacture or sale of electricity 

5 for lighting purposes, or unlawfully and intentionally prevents an 

6 electric meter from duly registering the quantity of electricity sup- 

7 plied, or in any way interferes with its proper action or just regis- 

8 tration, or, without the consent of such corporation or company, un- 

9 lawfully and intentionally diverts any electric current from any wire of 

10 such corporation or company, or otherwise unlawfully and intention- 

11 ally uses or causes to be used, without the consent of such corporation 

12 or company, any electricity manufactured or distributed by such 

13 corporation or company, shall, for every such offence, be punished 

14 by a fine of not more than one hundred dollars or by imprisonment 

15 for not more than one year, or by both such fine and imprisonment. 

1 Section 41. In the construction of sections four, five, six, construction 

2 seven, eight, twenty-eight, twenty-nine, thirty-one, thirty-three, °m*MG,'% 1. 

3 and thirty-four of this chapter, the terms "gas company", and 1887 - 382 « § 6 - 

4 " corporation " shall include all persons owning or operating works 

5 for the manufacture and sale of gas for heating or illuminating 

6 purposes within the commonwealth, and the terms "company" 

7 and "companies" shall include all corporations or individuals 

8 engaged in the manufacture and sale of electric light within the 

9 commonwealth. 



1192 



TRANSMISSION OF ELECTRICITY. 



[Chap. 122. 



CHAPTEE 122. 



OF COMPANIES FOR THE TRANSMISSION OF ELECTRICITY. 



Sections 1, 2 
Sections 3-5 
Sections 6-8 
Sections 9-11 
Sections 12-14 
Section 15 

Sections 16, 17 
Sections 18, 19 
Sections 20, 21 
Sections 22, 23 



• Construction of Lines upon Highways. 
•Damages of Land Owners. 
-Capital and Debts. 
■Telegraph Companies. 
Telephone Companies. 
-Damages. 
•Protection and Marking of Wires. 



Officers to Supervise Wires. 
Poles to be Insulated. 

Wires, etc., not to be affixed without Permission. 
To be marked. 
Sections 24-30. — General Provisions. 



Construction 
of lines. 
1849, 93, § 2. 
G. S. 64, § 2. 
P. S. 109, § 2. 
1883, 221. 
1889, 434. 
1895, 350. 
97 Mass. 555. 
136 Mass. 75, 
485. 
153 Mass. 200. 



CONSTRUCTION OF LINES UPON HIGHWAYS. 

Section 1. A company which is incorporated for the transmis- 1 

sion of intelligence by electricity, or by telephone, whether by 2 

electricity or otherwise, or for the transmission of electricity for 3 

lighting, heating or power, except lines for heat or power by a 4 

street railway company, may, under the provisions of the follow- 5 

ing sections, construct lines for such transmission upon and along 6 

the public ways and across any waters within the commonwealth, by 7 

the erection of the poles, piers, abutments and other fixtures, except 8 

bridges, which may be necessar}' to sustain the wires of its lines ; 9 

but shall not incommode the public use of public ways nor endanger 10 

or interrupt navigation. 11 



Location, etc., 
by mayor and 
aldermen, etc. 
1849, 93, § 3. 
G. S. 64, § 3. 
P. S. 109, § 3. 
9 Gray, 387. 
97 Mass. 555. 
136 Mass. 75. 
153 Mass. 200. 



Section 2. The mayor and aldermen of a city or the select- 
company are to pass 



men of a town through which the lines of a 



shall give the company a writing specifying where the poles may be 
located, the kind of poles and the height at which, and the places 
where, the wires may run. After the erection of the lines, having 
first given the company or its agents opportunity to be heard, they 
may direct any alteration in the location or erection of the poles, 
piers or abutments and in the height of the wires. Such specifi- 
cations and decisions shall be recorded in the records of the city or 
town. 



1 

2 
3 
4 

5 
6 
7 
8 
9 
10 



DAMAGES OF LAND OWNERS. 

cause(fb S y erec- Section 3. An owner of land which abuts upon a public way 
tion of lines, along which telegraph or telephone, electric light, heating or power 
1849, 93, §§ 4, s. lines are constructed, erected or altered in location or construction 
p.'s.'W, §§4,5! by any telegraph or telephone, electric light, heating or power 
189% 35o'. § " company, whose property is injuriously affected or diminished in 
172 Mass! 197. value by occupation of the ground or of the air, or otherwise by 
such construction, erection or alteration, whether such owner is 
also the owner of the fee in such way or not, may, within three 



1 
2 
3 
4 
5 
6 
7 
8 



Chap. 122.] transmission of electricity. 1193 

« 

9 months after such construction, erection or alteration, apply to the 

10 mayor and aldermen of the city or selectmen of the town in which 

11 such land is situated to assess and appraise his damages. Before 

12 entering upon the service, the mayor and aldermen or selectmen 

13 shall severally be sworn faithfully and impartially to perform the 

14 duties herein required. They shall, upon view, make a just 

15 appraisal in writing of the loss or damage, if any, to the applicant, 

16 sign duplicates thereof, and on demand deliver one copy to the 

17 applicant and the other to the company or its agent. If damages 

18 are assessed, the company shall pay them and the costs of the 

19 appraisers. If the appraisers find that the applicant has suffered 

20 no damage he shall pay said costs. The mayor and aldermen and 

21 selectmen shall each receive two dollars a day for services per- 

22 formed as appraisers. 

1 Section 4. If such company does not pay such damages as- if amount is 

2 sessed, or, upon appeal, the amount of the final judgment, within tMny^aysf 1111 

3 thirty days after demand, the mayor and aldermen or selectmen Eemrfoved"* 7 

4 may, upon request of such owner, remove all the poles, wires or iljjj'iio' 82, 

5 other structures of such company from that portion of the public 

6 way upon which the land of such person abuts, first leaving a 

7 written statement at the office of such company in such city or 

8 town of the time when and place where they intend to remove 

9 such poles, wires or structures, not less than forty-eight hours 

10 prior to such removal. If such company has no office in such 

11 city or town, such notice shall be deposited in the post office, 

12 postage prepaid, and directed to such company at its office in some 

13 city or town in the county. The city or town so removing any 

14 such poles, wires or structures may recover the expense thereof 

15 of such company. The provisions of this section shall not prevent 

16 such owner from collecting the damages assessed. 

1 Section 5 . A person who is aggrieved by the assessment of A 88 ^ 88111611 * b y 

2 his damages may have them determined by a jury in proceedings ^ 4 | ^ § *- 

3 according to the provisions of section eighty of chapter forty-eight. p - s - 1°9. § 6. 

4 If the jury increase the damages, the amount of the verdict and all 

5 charges shall be paid by the company ; otherwise, the charges shall 

6 be paid by the applicant. 



1 



CAPITAL AND DEBTS. 



Section 6. A telegraph or telephone company shall not com- capital stock 

2 mence the construction of its line until three-fourths of its capital * n ed 8tatement 

3 stock have been unconditionally subscribed for, and at least one- ofs. w 7 ,'§ § 7 3 ' 

4 half has been paid in in cash; and the directors shall, within ten fggf^.' 57 ' 

5 days after commencing construction, file in the office of the secretary 

6 of the commonwealth a sworn statement of such subscription and 

7 payment. 

1 Section 7. Such company shall not at any time contract or Limit of debt. 

2 owe debts to a larger " amount than one-half of its capital stock g. s'.64,'§8.' 

3 actually paid in. p.s.mm 8 . 



1194 



TRANSMISSION OF ELECTRICITY. 



[Chap. 122. 



officers* 7 ° f Section 8. The president and treasurer of such company shall 1 

G 51 sfl'ii' ^ e jointly and severally liable for all its indebtedness, in case of 2 

p." s.' io9, § 9. wilful neglect or omission on their part to comply with any of 3 

the provisions of this chapter. 4 



TELEGRAPH COMPANIES. 



Duties of com- 
panies. 
1849, 93, § 6. 
G. S. 64, § 10. 
P. S. 109, § 10. 
13 Allen, 226. 
113 Mass. 299. 
137 Mass. 463. 



Section 9. A telegraph company shall receive despatches from 1 

and for other telegraph companies and associations, and from and 2 

for any person ; and, upon payment of the usual charges for trans- 3 

mitting despatches according to the regulations of the company, 4 

shall transmit them faithfully and impartially. 5 



Charges for 
despatches 
received by 
mail, etc. 
1849, 93, § 6. 
G. S. 64, § 10. 
1867, 348. 
P. S. 109, §§ 10, 
11. 



Section 10. A telegraph company shall receive, compute and 1 

transmit despatches which may be received at its offices from an- 2 

other telegraph company or by mail, at the same rates of charge as 3 

for despatches which may be received for transmission from individ- 4 

uals on the same day and at the same place. A telegraph com- 5 

pany which wilfully neglects or refuses to comply with the provisions 6 

of this or the preceding section shall forfeit not more than one hun- 7 

dred dollars to the company or person who sends or desires to send 8 

the despatch. 9 



Salsmlssum 1 Section 11. A telegraph company shall be liable for damages 1 

of telegraphic to the amount of one hundred dollars actually caused by its negli- 2 

messages. , ■ • i -i 

1885,380. gence, or that of its agents, in transmitting, receiving or delivering 3 

telegraphic messages, and any limit of such liability by contract or 4 

regulation shall apply only to the damages in each case in excess 5 

of one hundred dollars ; but no action therefor shall be maintained 6 

unless a claim is presented in writing to such company or its agent 7 

within sixty days after such right of action accrues. The provi- 8 

sions of this section shall not apply to negligence occurring in a 9 

telegraph office which is established for the convenience and safety 10 

of a railroad corporation in the running of its trains, and transacting 11 

a public telegraph business only as incidental thereto, nor to 12 

negligence in the delivery of messages received at such office. 13 



TELEPHONE COMPANIES. 



Service to 
telegraph 
companies 
without 



Section 12. A person or corporation owning, controlling or 1 

operating a telephone exchange or service in this commonwealth 2 

discrimination, shall, upon application of a telegraph company, furnish such com- 3 

pany with the use of a telephone or telephones and telephone ser- 4 

vice, and connection with their respective exchanges, with the 5 

subscribers thereto, and with their telephone service, without dis- 6 

crimination between telegraph companies as to such connection, 7 

service or use of instruments furnished or charges therefor for the 8 

same class of service. ' 9 



Telephone ser- 
vice without 



Section 13. A person or corporation" owning, controlling or 
i885 r 267 in § a 2 i011 ' °P era t m g a telephone exchange or service in this commonwealth 
shall, upon application of an individual or corporation and the 
tender of the charges or rental usual or customary for the class of 



1 

2 
3 
4 



Chap. 122.] transmission of electricity. 1195 

5 service required, without discrimination for the same class of ser- 

6 vice rendered, furnish such individual or corporation with the use 

7 of a telephone and telephone service and connection with their 

8 respective exchanges and the subscribers thereto, if the applicant 

9 secures the rights necessary to make the connections applied for 

10 and pays to the telephone company in advance an amount sufficient 

11 to cover the actual cost of the extension, if said extension is more 

12 than one mile from any main exchange circuit of the said telephone 

13 company. . 

1 Section 14. The supreme iudicial court or the superior court Provisions 

x may oe GH- 

2 shall have jurisdiction in equity to enforce the provisions of the two forced in 

3j • ,. equity. 

preceding sections. im, 267, § 3. 

DAMAGES. 

1 Section 15. A telegraph company shall be liable in damages to injury to per. 

2 a person injured in his person or property by the poles, wires erty 0rprop " 

3 or other apparatus of such company. If they are erected upon a ill; ito! § 2 ' 

4 public way, the city or town shall not, by reason of anything con- £; §; S^Yia. 

5 tained in this chapter or done thereunder, be discharged from its ^^ av > ' 6 lh 

n i -1 -1 . 97 Mass. 5o5. 

6 liability, but all damages and costs recovered against it on ac- i36Mass. 75. 

o Igl Mass. 558 

7 count of such injury shall be reimbursed by the company which 

8 owns the poles, wires or other apparatus. 



PROTECTION AND MARKING OF WIRES. 

1 Section 16. A person or a corporation, private or municipal, Regulations 

i . -• v * - • j j. 1. i-i-i concerning 

2 owning or operating a line 01 wires over or under streets or build- wires m cities 

unci towns 

3 ings in a city or town shall use only strong and proper wires safely 1890, 404, §1. 

4 attached to strong and sufficient supports and insulated at all points i6i Mass. 583. 

5 of attachment ; shall remove all wires the use of which is abandoned ; 

6 shall properly insulate every wire where it enters a building, and, 

7 if such wire is other than a wire designed to carry an electric 

8 light, heat or power current, shall attach to it at a proper point in 

9 the circuit, near the place of entering the building, and so situated 

10 as to avoid danger from fire, an appliance adapted at all times to 

11 prevent a current of electricity of such intensity or volume as to be 

12 capable of injuring electrical instruments or of causing fire from 

13 entering the building by means of such wire beyond the point at 

14 which such appliance is attached ; and shall properly insulate every 

15 wire within a building which is designed to carry an electric light, 

16 heat or power current. 

1 Section 17. Such person or corporation shall, in cities, affix at Names of 

, . „ i.i . ii j • • • owners to be 

2 the points of support at which any wire or cable containing wires attached. 

3 provided for in the preceding section is attached, a tag or mark 1899) 320'; 337, 

4 distinctly designating the owner or user of such wire or cable. §2 " 

5 No such tag or mark shall be required for the wires of a street 

6 railway company, except for its feed wires at points of attachment 

7 to poles carrying the feed wires of one or more other street railway > 

8 companies. In towns wherever wires belonging to different owners 

9 are attached to -the same pole, cross arm or fixture, such pole, cross 
10 arm or fixture shall be plainly marked with the name or initials 



1196 



TRANSMISSION OF ELECTRICITY. 



[Chap. 122. 



of the owner of the same, and such wires, at or near their points of 11 
attachment to such pole, cross arm or fixture, shall be tagged or 12 
marked with the names or initials of their owners. 13 



OFFICERS TO SUPERVISE WIRES. 

wire^duties. Section 18. A city shall, by ordinance, designate or provide 1 

1899' 337* i 1' t ^ or ^ e appointment of an inspector of wires, and any town may, 2 

at an annual town meeting, instruct its selectmen to appoint such 3 

an inspector. Such inspector shall supervise every wire over or 4 

under streets or buildings in such city or town and every wire 5 

within a building which is designed to carry an electric light, heat 6 

or power current, shall notify the person or corporation owning or 7 

operating any such wire whenever its attachments, insulation, sup- 8 

ports or appliances are improper or unsafe, or whenever the tags 9 

or marks thereof are insufficient or illegible, shall, at the expense 10 

of the city or town, remove every wire the use of which has been 11 

abandoned and every wire which is not tagged or marked as here- 12 

inbefore required, and shall see that all laws and regulations rela- 13 

tive to wires are strictly enforced. A city or town may recover in 14 

an action of contract of the person or corporation owning any wire so 15 

removed the expense which it has incurred for the removal thereof. 16 



Provisions 
may be 
enforced in 
equity. 
1890, 404, § 5. 



Section 19. The supreme judicial court or the superior court 1 

shall have juridiction in equity upon petition of the officer or in- 2 

spector designated or appointed as aforesaid, to enforce the pro- 3 

visions of the three preceding sections and to restrain the use or 4 

maintenance, or to cause the removal, of any wire, pole or other 5 

support which is erected, maintained or used in violation of the 6 

provisions of said sections. 7 



POLES TO BE INSULATED. 

insulation of Section 20. Poles which are used for the transmission of elec- 

poles. , , 

1895, 228, §§ i, 2. tricity shall be insulated in such manner as to protect employees 
and other persons from accidents. The officer and inspector of 
wires appointed under the authority of section eighteen or the com- 
missioner of wires of the city of Boston shall enforce the provisions 
of this section, and he shall be the sole judge of what constitutes 
a proper insulation. 



Penalty. 
1895, 228, § 3. 



Section 21. A person or corporation owning poles which are 
used for the transmission of electricity who fails to comply with the 
provisions of the preceding section shall be punished by a fine of 
not less than ten nor more than one hundred dollars for every pole 
left uninsulated for an unreasonable time after a request for a proper 
insulation by the officer, inspector or commissioner acting under 
the provisions of the preceding section. 



1 

2 
3 
4 
5 
6 
7 

1 

2 
3 
4 
5 
6 
7 



WIRES, ETC., NOT TO BE AFFIXED WITHOUT PERMISSION. 

MARKED. 



TO BE 



Section 22. 



Affixing tele- 
phone wires, ~~~ — ~" — ' "- r~- — * — "~ r""- — ~— & 

et c- t0 .fif°P- telephone, telegraph or other electric wires or any other person who 

permission. in any manner affixes or causes to be affixed to the property of 

1884, 302, § 1. J r i. j 



A corporation or person maintaining or operating 1 

2 
3 



Chap. 122.] transmission of electricity. 1197 

4 another any pole, structure, fixture, wire or other apparatus for 

5 telephonic, telegraphic or other electrical communication, or who 

6 enters upon the property of another for the purpose of affixing 

7 the same, without first obtaining the consent of the owner or lawful 

8 agent of the owner of such property, shall, on complaint of such 

9 owner or his tenant, be punished by a fine of not more than one 
10 hundred dollars. 

1 Section 23. A corporation or person maintaining or operating Name of corpo- 

2 telephone, telegraph or other electric wires shall, at all places where Ifi^uluSe. 6 

3 such wires are affixed by any pole, structure or fixture to the prop- 1884 > 302 > § 2 - 

4 erty of another, mark such pole, structure or fixture in a clear, 

5 durable and legible manner with the name of the corporation or 

6 person maintaining or operating such wires, and any corporation or 

7 person who fails to comply with the provisions of this section shall 

8 be punished by a fine of not more than one hundred dollars. 



GENERAL PROVISIONS. 

1 Section 24. Every telegraph company shall annually, on or Annual 

2 before the fifteenth day of October, make returns to the secretary lssi^its'. 

3 of the commonwealth, according to forms to be furnished on appli- J^ ^ | J; 

4 cation to him, specifying therein the location and line of its tele- p* §• f^ Yi3 

5 graph, its name, capital actually paid in, manner of investment of 

6 capital, annual receipts and expenditures, real estate and its value, 

7 cash on hand, credits on book account and the amount of its in- 

8 debtedness. Such return shall be signed and sworn to by the 

9 president, clerk and treasurer of the company. 

1 Section 25. Owners and associations engaged in the business umncorpo- 

2 specified in section one of this chapter, although not incorporated, panies. om " 

3 shall be subject to the provisions of this chapter, so far as they are ill?; 247, § | 2! 6 * 

4 applicable. 13 Allen, 226. 97 Mass. 555. P.' I.' 109 Vli. 

1 Section 26. No enjoyment, for the purposes specified in section no easement 

2 one of this chapter, by a person or corporation for any length poies^etc^ 

3 of time of the privilege of" having or maintaining poles, wires g?s\&£§ § u. 

4 or apparatus in, upon, over or attached to any building or land p - s - 109 > § 15 - 

5 of other persons shall give a legal right to the continued en- 

6 joyment of such easement or raise any presumption of a grant 

7 thereof. 

1 Section 27. Whoever unlawfully and intentionally injures, injury to lines, 

2 molests or destroys any line, wire, pole, pier or abutment, or any i849? B 93?§ C 7. 

3 of the materials or property, of any company, owner or association p. - 1; io 9 ,Vi6. 

4 described in sections one and twenty-five shall be punished by 

5 a fine of not more than five hundred dollars or by imprisonment 

6 for not more than two years, or by both such fine and imprison- 

7 ment. 

1 Section 28. Whoever, in order to move a building, or for any wires may bo 

2 necessarv purpose, desires to cut, disconnect or remove the wires MeS,uh§i. 

J r L P. S. 109, § 17. 



1198 



PROPRIETORS OF WHARVES, ETC. 



[Chap. 123. 



of any such company, may do so, exercising reasonable care, if he 3 

has first left a written statement, signed by him, of the time when, 4 

and the place, described by reference to the crossings of streets or 5 

highways, where he wishes to remove said wires, at the office of the 6 

company in the town in which such place is situated, twenty -four 7 

hours before the time so stated, or, if there is no such office, if 8 

he has deposited such statement in the post office, properly prepaid, 9 

and directed to the company at its office nearest to said place, three 10 

days before the time mentioned in said statement. 11 



Penalty for 
cutting wires 



Section 29. Whoever wilfully cuts, disconnects, removes or 1 

im°m n §°£ ce " otherwise interrupts the use of the wires of any such company, 2 

p. s'. io9, § is. without first giving notice as provided in the preceding section, 3 

shall be punished as provided in section twenty -seven. 4 



preceding 11 ° f Section 30. The provisions of the two preceding sections shall 
sections. not apply to any wires attached to poles which have not been 

p. s. 109, § 19. erected in compliance with the provisions of law. 



1 
2 
3 



CHAPTEE 123. 

of proprietors of wharves, real estate lying in common, gen- 
eral FIELDS, AND AQUEDUCT CORPORATIONS. 

Sections 1-17. — Wharves and Real Estate lying in Common. 
Sections 18-40. — General Fields. 
Sections 41-53. — Aqueduct Corporations. 



Application 
for incorpora- 
tion. 

1712-13, 9, § 1. 
1735-6, 5, § 1. 
1753-4, 1, § 1. 
1783, 39, § 1. 
R. S. 43, §§ 1, 2. 
G. S. 67, §§ 1, 2. 
P. S. Ill, §§1,2. 
24 Pick. 304. 
10 Met. 419. 



WHARVES AND REAL ESTATE LYING IN COMMON. 

Section 1 . Upon the written application of five or more pro- 1 

prietors of lands, wharves or other real estate held in common to 2 

a justice of the peace, stating that they intend to organize them- 3 

selves as a corporation, he shall issue his warrant to one of the 4 

applicants, directing him to call a meeting of all the proprietors 5 

and expressing in the warrant the time, place, occasion and pur- 6 

pose of the meeting. 5 Gray, 488. 153 Mass. 42. 7 



Notice, etc., of 
first meeting. 
1712-13, 9, § 1. 
1735-6, 5, § 1. 
1753-4, 1, § 1. 
1783, 39, § 1. 
R. S. 43, § 3. 
G. S. 67, § 3. 
P. S. Ill, § 3. 



Section 2 . The meeting shall be called by posting a notice con- 1 

taining the substance of the warrant, signed by the person to whom . 2 

the warrant is directed, fourteen days at least before the meeting, 3 

in one or more public places in the town, and by publishing it in a 4 

newspaper, if any, published in the county in which the estate lies ; 5 

otherwise, in a newspaper published in an adjoining county. 6 



Organization. 
1712-13, 9, § 1. 
1735-6, 5, § 1. 
1753-4, 1, § 1. 
1783, 39, § 1. 
R. S. 43, §§ 4, 5. 
G. S. 67, §§ 4, 5. 
P. S. Ill, §§4, 5. 
1897, 496, § 7. 



Section 3. At such meeting, by vote of a majority in number 1 

and interest of all the proprietors, they may organize themselves 2 

as a corporation under the provisions of this chapter ; and they 3 

may thereupon choose a clerk, treasurer, collector and such com- 4 

mittees and other officers as they consider are necessary for the 5 

management of their affairs, and may agree upon and direct the 6 

manner of calling future meetings. Each officer chosen by the pro- 7 



Chap. 123.] proprietors of wharves, etc. 1199 

8 prietors shall hold his office until his successor is chosen and quali- 

9 fied. The clerk, treasurer and collector shall forthwith make, sign, 

10 swear to and file for record in the office of the secretary of the 

11 commonwealth a certificate setting forth the name of the corpora- 

12 tion, its purpose, the city or town and county in which it is located, 

13 the date of the meeting for organization and any adjournments 

14 thereof, and any other facts of importance which may be contained 

15 in the proceedings of organization ; otherwise, the organization 

16 shall be void. 

1 Section 4. The clerk shall be sworn, and shall record all votes, cierk; oath; 

2 orders and proceedings of the proprietors in books which he shall 171^13%, § 1. 

3 keep for that purpose until they are delivered to the clerk of the "^AV - 

4 city or town as hereinafter provided. g. s. 67, § 6. p. s. 111, § 6. R - s - 43 > § 14 - 

1 Section 5 . The treasurer shall demand and receive all money Treasurer, 

2 due or belonging to the proprietors, shall sue for and recover in his powers' of. 

3 own name to their use all fines and penalties incurred under the ri^W^T 1 ' 

4 provisions of sections seven and eight, shall pay out all money in g- 1- f„< | * 5 - 

5 his hands according to the order of the proprietors and shall, from p- s." ni, § 7. 

6 time to time when required, render his accounts thereof. 

1 Section 6. Such proprietors may sue and be sued as a body Proprietors 

2 corporate ; and an action brought by the corporation for trespass on beTuedt etc d 

3 the common property may be pleaded in abatement or answered in Jf^i is" § 1. 

4 bar of an action for the same trespass brought by any of the pro- ™> *®> § *• 

5 prietors in his individual capacity. p. s. m, §8. 153 Mass. 42. r. s. 43, § 12. 

1 Section 7. They may make by-laws not inconsistent with law— may make 



1. 



2 for the orderly conducting of their business, with penalties for the rm^l 

3 breach thereof not exceeding three dollars for each offence ; but by- r 8 |. f^ln. 

4 laws with penalties annexed shall be approved by the county com- £• |- ^ § 9 g 

5 missioners for the county in which the estate lies. 

1 Section 8 . The moderator of a meeting of the proprietors shall Power of 

1110Q.Grfl.tor 

2 have the same power as the moderator of a town meeting, except the 1783. 39, § 2. 

3 power of confining a person or causing him to be removed from the g'. s*. 67, § 10. 

4 meeting. Whoever resists or disobeys his orders shall be subject p ' s< m ' § 10 ' 

5 to the pecuniary penalties provided for the like offences at a town 

6 meeting. 

1 Section 9 . The proprietors may, at a legal meeting, exercise - of propri. 

2 any of the powers granted to them in this chapter ; but no business meeting! egal 

3 shall be acted on unless it is expressed in the notice for the meeting. rreU'iSW' 

R. S. 43, § 5. G. S. 67, § 11. P. S. Ill, § 11. 143 Mass. 110. 1"83> 39, § 1. 

1 Section 10. Each proprietor shall be entitled to vote according votes. 

2 to the number of his shares or the amount of his interest, if known ; nssfssu 8. 

3 and if not known, the proprietors shall vote equally. Absent pro- g; |; $; | % 

4 prietors may vote by proxy authorized in writing. ubMass. m! 

1 Section 11. The proprietors may by vote adopt such measures Proprietors 

2 and levy such assessments in proportion to their respective rights Slon/y/etc. 



1200 



GENERAL FIELDS. 



[Chap. 123. 



1726-7, 15, § i. and interests in the property as they consider proper for managing, 3 
llijsViV?' improving or dividing their common property and for carrying on 4 

G. li 6?,' § 13. their business . P. S. HI, § 13. 5 Greenl. 164. 7 Greenl. 404. 5 



2 Mass. 475. 



10 Mass. 5. 



Ill Mass. 468. 



154 Mass. 582. 



15 

4 Greenl. 237. 



ho S wcon©cteci. Section 12. If a proprietor neglects to pay an assessment for 1 

ireiifeVs 2 ' s * x mon ^ ns a fter demand therefor by the collector or other proper 2 

g s 67' ff il 9 ' on * cer ' or a ^er a notice of such assessment posted and published in 3 

15. ' the manner prescribed for the first meeting, the committee of the 4 

T> c "111 gg ~\A *- O 7 

' proprietors or other officers authorized by them for that purpose 5 

may sell by public auction and give to the purchaser a deed of 6 

so much of the right or share of such proprietor as is sufficient 7 

to pay the amount so due from him and all the reasonable charges 8 

of the sale, first giving thirty days' notice of the time and place 9 

appointed for such sale in the manner prescribed for notifying the 10 
first meeting. 



Shares. 011 Section 13. The proprietor of the share or part sold may, 1 

Vm^i^it within one year after the sale, redeem it by paying to the purchaser 2 

g !' 67' 1 16' or ms ass ig n s the purchase price with interest at the rate of twelve 3 

p.' s.' ni, § 16. per cent a year from the time of the sale. 4 

proprietors. Section 14. If there are ten or more proprietors, they may, 1 

G 8 s 67* § n. k,y a vote of more than two-thirds both in number and interest at a 2 

ITifo b 1 ^ 17- l e & a l meeting, sell such estate and divide the proceeds thereof. 3 

3 Pick. 396. 8 Cush. 21. 8 Allen, 11. 143 Mass. 110. 



Deposit of 
records. 
1783, 39, § 9. 
1790, 40, § 2. 
R. S. 43, § 17. 
1851, 161, § 5. 
G. S. 67, § 18. 
P. S. Ill, § 18. 



Section 15. After the final division of their common property, 1 

the proprietors may cause their records to be deposited with the 2 

clerk of the city or town in which the land or any part of it lies ; 3 

and the clerk may make and certify copies from the records as the 4 

clerk of the proprietors might have done. 5 



Corporate 
powers, etc., to 
remain. 
1790, 40, U. 
R. S. 43, § 18. 
G. S. 67, § 19. 
P. S. Ill, §19. 



Section 16. A final division of the common property shall not 1 

dissolve the corporation until the expiration of ten years thereafter ; 2 

but the proprietors at the time of the division and their heirs shall 3 

retain their corporate powers for the purpose of collecting all taxes, 4 

debts and effects due or belonging to the corporation, and shall be 5 

liable for its debts. 6 



After division 
meetings may 
be held, etc. 
1790, 40, § 1. 
R. S. 43, § 19. 
G. S. 67, § 20. 
P. S. HI, § 20. 



Section 17. The proprietors may, within ten years after such 1 

division, call and hold meetings and vote and raise money by assess- 2 

ments, as before provided, for the payment of their debts and all 3 

other charges and demands against them, and may do all other law- 4 

ful acts necessary for closing their business. 5 



Meetings, etc. 
1785, 53, § 1. 
R. S. 43, § 20. 
G. S. 67, § 21. 
P. S. HI, § 21. 



GENERAL FIELDS. 



Section 18. If several distinct lots or parcels of land are en- 1 

closed and fenced in one common field, or if all the proprietors of 2 

such lands agree so to enclose them, the proprietors, if not less 3 

than five in number, may, from time to time, in the manner herein- 4 



Chap. 123.] general fields. 1201 

5 after provided, hold regular meetings for the purpose of managing 

6 their common concerns. 

1 Section 19. Upon the application of two or more proprietors Meetings, etc., 

2 to a justice of the peace, he shall issue his warrant for a meeting, as votes. a 

3 provided in section one, which shall be called either in the manner lvltlfifu!' 

4 prescribed in section two or by personal notice served on each pro- its^kj 3 ^ Vio. 

5 prietor fourteen days at least before the time appointed for the pf | \ z §§ 21 _ 

6 meeting. Each proprietor may vote according to the relative amount 'g- s ' 2 ^ 

7 or value of his interest, if known ; otherwise, in accordance with the 2 *' 

Q . . . j. , . - ' p. s. m, §§ 22- 

provisions 01 Section ten. 3 Gray, 487. 119 Mass. 584. 24. 

1 Section 20. The proprietors may from time to time choose a cierk, assess- 

2 clerk, three or more assessors, a collector and such other officers as i72 S 7-8, c i3, §2. ' 

3 they find to be necessary ; each of whom shall continue in office 1753II; ?; § \\ 

4 until removed by the proprietors or until his successor is chosen r 8 s.43, §24. 

5 and qualified. The clerk and assessors shall be sworn. p'l'ni § § 2 25 

1 Section 21. They may choose one or more field drivers, who S|J5 8 d il v f r 2 8 " 

2 shall have and exercise the same powers with respect to the general 1785,53, §4. 

3 fields as field drivers chosen by a town. p. s. 111, § 26. g'. s'. ei', § 26*. 

1 Section 22. They may adopt such rules as to pasturing the ^| u i| tion s. 

2 land and as to other matters in which they have a common interest as R. s'. 43, § 27. 

3 they consider just and equitable and most for the general good ; but p.' s.' ni, § 27. 

4 in all other respects, each proprietor may manage and cultivate his 154 ultl'. ill'. 

5 land as he thinks best. 

1 Section 23. At meetings of proprietors for adopting rules or Proprietors 

2 regulations as to pasturing, land of a proprietor which is enclosed land not to 

3 for his exclusive benefit shall not be valued or reckoned in deter- l^^ie. 

4 mining his right to vote on questions relative to pasturing his land, p." |; iii, § §28. 

1 Section 24. If a proprietor puts horses, cattle or other beasts Trespass. 

2 into the general field contrary to the regulations of the proprietors, i698,'i2, §3. ' 

3 either by putting in more than the number allowed him, or by put- ml~%T§i. 2 ' 

4 ting them in before the day fixed for that purpose, or by keeping §; |; gf; | fj; 

5 them therein longer than the time limited, he shall be considered a p - s - m > § 29 - 

6 trespasser, and his beasts may be impounded as taken doing damage. 

1 Section 25. The proprietors may from time to time raise money Assessment of 

2 for defraying their common charges and managing their affairs, 1726-7, is, § 1. 

3 which shall be assessed bv the assessors upon the several proprietors 1741-2! 3.' 

4 in proportion to their respective interests; and a proprietor who is 1735, 53, '§3." 

5 aggrieved by such assessment may apply for an abatement to the q |; ^; | |j; 

6 county commissioners, who shall hear and determine the case, and r. s. 111, §30. 

7 whose judgment thereon shall be final. 

1 Section 26. The clerk shall issue his warrant to th-3 collector, cieAtoiwue 

2 requiring him to collect all amounts so assessed and to pay them coveting, etc. 

3 over to the clerk or other proper officer according to the orders of 1727-8! 13, § 2'. 

4 the proprietors. The collector shall collect said amounts in the 1758^; ?;f 2. 



1202 



GENERAL FIELDS. 



[Chap. 123. 



1785, 53, § 3. 
R. S. 43, § 26. 
G. S. 67, § 31. 



same manner as collectors of towns are authorized to collect town 5 

taxes. P. S. Ill, §31. 6 Mass. 43. 6 



^red r b e y bea°ts Section 27. A proprietor who is injured in his lands by the 1 

i698 tr 6 ai § g 5 er ' beasts of a stranger shall have the same remedy therefor as if his 2 

1785! 53, § 6. land had been enclosed and used separately. 3 

E. S. 43, § 37. G. S. 67, § 32. P. S. Ill, § 32. 



Apportion- 
ment of fence, 
etc. 

C. L. 17, § 3. 
169S, 12, § 3. 
1785, 53, § 1. 
E. S. 43, § 28. 
G. S. 67, § 33. 
P. S. Ill, § 33. 
6 Mass. 92. 



Section 28. The whole fence enclosing such general field shall, 1 

so far as it may be found convenient, be apportioned among the 2 

proprietors according to the number of acres held and cultivated or 3 

otherwise used by each ; and the part to be maintained by each pro- 4 

prietor shall be apportioned to him by two or more fence viewers, 5 

unless the proprietors agree on such apportionment. The proportion 6 

of fence of each proprietor shall be recorded in the books of the 7 

proprietors by the clerk, if any ; otherwise, by the clerk of the city 8 

or town in which the general field is situated. 9 



whXnotto Section 29. A proprietor shall not, so long as he declines to 1 

maintain cultivate his land or to use it for pasturing, for the growth of wood 2 

1785, 53, §12. or otherwise, be required to maintain any part of the fence or to 3 

g.' s! 67^ § 34.' pay any tax or assessment on account of his land. p. s. hi, § 34. 4 



Expense of 
apportioning 
fence, etc. 
1727-S, 13, § 1. 
1785, 53, §§ 1, 2. 
E. S. 43, § 30. 
G. S. 67, § 35. 
P. S. Ill, § 35. 



Section 30. The expense of apportioning the fence and also of 1 

making and maintaining such part thereof as cannot be conveniently 2 

and justly apportioned to any one proprietor shall be borne by all 3 

the proprietors liable to be taxed in proportion to their respective 4 

interests ; and the part apportioned to each proprietor shall be made 5 

and maintained by him so long as he uses his part of the general 6 

field for pasturing, planting, mowing or otherwise. 7 



whe^p'art^f Section 31. If the part of the fence apportioned to a proprietor 1 

fence assigned becomes deficient and he does not repair it within three days after 2 

1794, 38, §i! notice of such deficiency has been given to him by a fence viewer 3 

of the town, it may be repaired by any other proprietor. Two or 4 

more fence viewers may examine such repairs, and, if they adjudge 5 

them to be sufficient, may ascertain and determine the cost of the 6 

same and make a statement thereof and of the amount of their fees 7 

in writing under their hands. 8 



E. S. 43, § 31. 
G. S. 67, § 36. 
P. S. Ill, § 36. 



ing r to refit?*" Section 32. The person who makes such repairs may demand 
liable to double f the proprietor who is bound to make them, or of the tenant who 
1758-9? 33', § 2.' holds under him, double the cost of the repairs and of the fees of the 
r. s'. 43, § 32. fence viewers so ascertained ; and if they are not paid within one 
p.' s.' lii, § 37. month after notice and demand, he may recover them in an action 
of tort. 



1 
2 
3 
4 
5 
6 



Liability to 
repair in case 
of sudden 
destruction, 
etc. 

1794, 38, § 2. 
R. S. 43, § 33. 
G. S. 67, § 38. 
P. S. Ill, § 38. 



Section 33. If a part of the fence is suddenly blown down or 1 

carried away by a flood or tempest at a time when the crops of grain 2 

or grass in the field are thereby exposed to immediate destruction 3 

or injury, the proprietor to whom such part of the fence was assigned 4 

shall repair it within twenty-four hours after notice thereof given to 5 



Chap. 123.] general fields. 1203 

6 him by a fence viewer ; and if he fails so to do, the fence may be 

7 repaired by any other proprietor, who may recover double the cost 
S of the repairs and fees, as provided in the preceding section. 

1 Section 34. A proprietor may enclose his land at his own ex- Proprietor 

2 pense ; and, so long as he keeps it enclosed with a sufficient fence, hi^a e nd. lose 

3 may cultivate and use it as he thinks fit ; and during such period, so u 9 !. 1 ^', § 36 . 

4 far as such enclosed land is concerned, he shall neither be assessed (f 5 ! 67 8, § § 39 

5 for any expenses incident to the common field nor exercise any con- r - s - n i> § 3i >- 

6 trol over the portion thereof not enclosed. 

1 Section 35. Every proprietor of land lying unfenced in a Proprietors to 

2 general field shall once in every two years, if requested by the owner fn tw^yeanT 

3 of the adjoining land, run lines with such owner between their lots 1692-3, 28, § 2. 

4 and shall make and keep up the boundaries between them by sufficient ^ 8 | 5 4 | § A- g 

5 bound stones, at their joint expense. If he fails so to do after seven p , § - i?j § 5 4 ?A 

6 days' notice by the adjoining owner, he shall forfeit two dollars to 

7 the use of such adjoining owner. 

1 Section 36. If it is for the interest of the proprietors of five superior court 

2 or more parcels of land to enclose them in one common field, the proprietors to 

3 superior court for the county in which the land or any part of it lies |eneraf field 8 

4 may, upon the application of a majority in interest of the proprietors, |p| ^ §§ 39 

5 after notice to all other persons interested and a hearing, order it to *o- g ' ' 

6 be so enclosed, if it appears to be for the common benefit of the ±2. 

- ,. > Vf P. S. Ill, §§ 41, 

7 parties. 42. 

1 Section 37. After a common or general field is so established p r f ^rietors'to 

2 by an order of the court, the further proceedings in relation thereto fslf en T erS d 

3 shall be the same as are provided when a field is so enclosed by the t>y consent. 

4 consent of the proprietors ; and the proprietors shall be entitled to r. s'. 43, § 41. 

5 the privileges and be subject to the duties before provided in this p.' f.' lii.Vfs. 

6 chapter relative to the proprietors of fields enclosed by consent. 

1 Section 38. Three or more proprietors of lots in a general field generauieid 

2 lying within one general fence or enclosure may, by a petition in ^ s ° 5 n ^ et ^ n - 

3 writing to the proprietors of such field at a meeting of said pro- R. s'.43, §43. 

4 prietors legally warned for the purpose, request to have their lots, p.' s." lii, § 44. 

5 either alone or jointly with any other lots in such field, divided from 
C) the remainder of the field in order to be enclosed by one common 

7 fence and occupied by them as an entire field separately from the 

8 other proprietors. If the majority of proprietors in interest present 

9 at such meeting withhold or refuse their assent to such division, the 

10 superior court may, upon like application, appoint five disinterested 

11 and suitable persons within the county in which the general field is 

12 situated, to be a committee to make the division, if they deem it 

13 expedient, and to assign to each field its proportion of the partition 

14 fence which by reason of such division should be kept up and 

15 maintained by the proprietors of the said general fields respectively. 

1 Section 39. The committee shall, as soon as may be after their same subject. 

2 appointment, make return of their doings under their hands to the »*&.«', s §«. 

3 court ; and after its acceptance by the court, the fields so divided g; |; nV§ 4 «>. 



1204 AQUEDUCT CORPORATIONS. [CHAP. 123. 

shall be deemed separate general fields and the proprietors of the 4 

field set off, and the remaining proprietors of the original field, re- 5 

spectively, shall be distinct and separate proprietary bodies, having 6 

like powers and privileges and subject to like duties and liabilities 7 

as the proprietors of the original general field before the division ; 8 

but no order for such division shall be made, and no such committee 9 

shall be appointed, until the other proprietors have had notice of 10 

the petition for such division. Such notice shall be given by serv- 11 

ing upon the clerk of the proprietors a copy of the petition at least 12 

thirty days before such order or appointment is made. 13 

?nce°ofgenerai Section 40. A majority in interest of the proprietors of a com- 1 

im B h §5 mon fi e ld> whether established by consent or by an order of court, 2 

r 8 ^' « 1 42 ma y discontinue it at a legal meeting warned for the purpose ; but 3 

g. s. 6:1 § 46'. the discontinuance shall not take effect until the expiration of six 4 

months after such vote. 5 



AQUEDUCT CORPORATIONS. 

mefti^lsand' Section 41. The proprietors of an aqueduct corporation which 1 

i79°8 iC 59°§3 lerk ' nas been organized under the provisions of chapter one hundred 2 

g' s 6-' 1 1' an< ^ ^ en °^ ^ e -^ um ^ c Statutes or the corresponding provisions of 3 

p.' s." no, § i earlier laws may at a legal meeting agree upon the method of calling 4 

future meetings of the corporation, and may choose a clerk, who 5 

shall be sworn and who shall record in books to be provided and 6 

kept by him for that purpose all by-laws, votes and other proceed- 7 

ings of the corporation. Such books shall at all times be subject to 8 

the inspection of any person appointed for that purpose by the 9 

general court. 10 

tranter °to be Section 42. The clerk, at or immediately after the first meet- 1 

books d in i n o ' shall enter in the books the names of the several proprietors 2 

r 9 I lo § s § 4 6 ' 8 " an ^ ^ e shares owned by each ; and transfers of shares shall, within 3 

g! si 65', §4. three months after they have been made, be entered by him in 4 

the books in such form and for such fees as the directors order. 5 

No person shall be deemed a proprietor whose share or interest is 6 

not so entered. 7 

i79™ C 59, r § 3. Section 43. The proprietors may choose any number of direct- 1 

g 1" 65' 1 5' ors an d other officers to manage the business ; and the directors 2 

p. s. 116, §5. shall choose one of their number to be the president of the 3 

corporation . 4 

lre^UlT^ 8 ' Section 44. The directors may make such assessments on each 1 

g I" 65' § 6" share as they find necessary ; and, upon the default of a proprietor for 2 

p. s. 116, § 6. thirty days after notice thereof to pay an assessment, they may sell 3 

by public auction so many of his shares as will be sufficient to pay 4 

the assessment and the necessary charges, such sale being first 5 

advertised three weeks successively in a newspaper published in 6 

the county, or notices thereof being posted thirty days at least 7 

before the sale in public places in the city or town. The surplus 8 

proceeds arising from the sale shall be paid to the owner of the 9 

shares sold. 10 



Chap. 123.] aqueduct corporations. 1205 

1 Section 45 . Such corporation may purchase and hold real estate Real estate. 

2 necessary for the purpose of its association not exceeding thirty r 9 |. 5 4 9 o' ( § §8. 

3 thousand dollars in value. p.'l.'no.Va- 

1 Section 46. Such corporation may, with the consent in writing corporation 

2 of the mayor and aldermen of a city or the selectmen of a town, hilhways^etc. 

3 dig up and open any street or way therein for the purpose of plac- r 9 |. 4o,| 7 9. 

4 ing such pipes as are necessary in constructing its aqueduct or in p'f'f^Yio 

5 repairing or extending the same, if the same is so done as not to u Gray,' 154. 
fi prevent the convenient passing of teams and carriages. 

1 Section 47 . Contracts made by or with such a corporation shall ^p^ralors 

2 remain in force after its dissolution, and the shareholders at such dis- after dissoiu- 

3 solution shall continue liable and capable as a corporation in all its 1798,' 59, § 9. 

4 suits relative to such contracts until they are performed, if suit is g'. s! 65| § io! 

5 commenced within six years after the dissolution or after the right P " s ' 110 ' § u " 

6 of action accrued. 

1 Section 48. If no corporate property can be found to satisfy a individual 

2 judgment recovered against the shareholders after the dissolution, shareholders. 

3 and it is not satisfied within six months after it is recovered, the r 9 I\4o, § § 9 ii. 

4 judgment creditor may satisfy the same out of the private estate of p.' |; f^^ 1 ^ 

5 the shareholders or any of them, as if the judgment had been 

6 against them in their private capacity. 

1 Section 49 . If the corporation at its dissolution is seised of real oon^eii estate 

2 estate, the proprietors shall become tenants in common thereof in t0 h ' e in com - 

3 proportion to their respective shares or interests in the stock of the 1798/59, § 9. 

, L r r R. S. 40, § 12. 

4 corporation. g. s. 65, §12. p. s. 110, §13. 

1 Section 50. Whoever maliciously injures an aqueduct or any Penalty for 

2 of its appurtenances shall forfeit not more than one hundred dollars aqueducts. 

3 to the use of the city or town in which the offence is committed, and r 9 |. 40, §n. 

4 shall be liable to the corporation for treble the amount of damages £• f • f^Yii. 

5 sustained thereby. 

1 Section 51. A city or town in which such aqueduct is situated ^c^Avater^ 

2 may put conductors into the pipes for the purpose of drawing there- case of fires. 

3 from, free of expense, as much water as is necessary if a building r. s. 40, § 15. 

4 is on fire therein and such conductors are so secured that water shall p.' s. 116, § 15. 

5 not be drawn therefrom except for the purpose of extinguishing 144 Mass.' 177. 

6 fires. 

1 Section 52. If the selectmen consider it necessary for the Provisions by 

2 protection of persons and property in their town against fire to take takln™wate°i\ 

3 water from the conductors or pipes therein of an aqueduct corpora- p^s'.no, §§i6, 

4 tion, they may direct the engineers of the fire department to request JoiMass. 93. 

5 the corporation to put into such conductors or pipes, in such places iw Mass. 177. 

6 as said engineers shall think necessary, connections or conductors 
. 7 for the purpose of attaching hydrants or conducting water into 

8 reservoirs. If the corporation refuses or neglects for two weeks 

9 after such request to comply therewith, said engineers may make 
10 such connections at the cost of the town, using all necessary means 



1206 



AGRICULTURAL AND HORTICULTURAL SOCIETIES. [CHAP. 124. 



Warrants of 

distress for 

damages. 

1851, 289, §§1,2. 

G. S. 65, §§ 15, 

16. 

P. S. 110, §§ 18, 

19. 

4 Cush. 60. 

16 Gray, 347. 

142 Mass. 394. 



for making the same and using reasonable care for the protection 11 

of the pipes and works of such corporation. 12 

Section 53. If, upon the application of a person who has 1 

sustained injury in his land or by the diversion of water by the 2 

operations of an aqueduct corporation, damages have been assessed 3 

against it by county commissioners or a jury, in pursuance of the act 4 

incorporating it or otherwise, the commissioners may issue warrants 5 

of distress to compel payment of such damages with interest and 6 

costs, in the manner and with the limitations prescribed in relation 7 

to railroad corporations. Such damages shall not be recovered or 8 

allowed against a corporation, except for injuries sustained within 9 

three years last preceding the filing of the application to the county 10 

commissioners. 11 



CHAPTBK 124. 



OF AGRICULTURAL AND HORTICULTURAL SOCIETIES. 



Sis n ii4 §§i2 Section 1. Every incorporated agricultural society which was 
K- 4 |^.'§§ 1 .' 2 - entitled to bounty from this commonwealth before the twenty-fifth 



1852, 246. 
G. S. 66, § 1. 
1866, 189, § 1. 
1870, 258. 
1881, 285. 
P. S. 114, § 1. 
1890, 297. 

90.? P " A - G - 



1 

2 
3 
4 
5 
6 
7 
8 
9 
10 



day of May in the year eighteen hundred and sixty-six, and every 
other such society whose exhibition grounds and buildings are not 
within twelve miles of those of a society which was then entitled to 
bounty, and which has raised by contribution of individuals and 
holds, as a capital appropriated to its uses, one thousand dollars, 
invested in an interest bearing public or private security or in real 
estate, buildings and appurtenances for its use and accommodation, 
shall, except when otherwise determined by the state board of agri- 
culture as provided in section four, be entitled to receive annually 11 
in October from the commonwealth, two hundred dollars, and in 12 
that proportion for any greater amount so contributed and put at 13 
interest or invested ; but no society shall receive a larger amount in 14 
one year than it has awarded and paid in premiums during the year 15 
last preceding, nor more than six hundred dollars. If there is only 16 
one incorporated agricultural society in any county, it shall be en- 17 
titled to receive said bounty notwithstanding its exhibition grounds 18 
and buildings are within twelve miles of a society entitled to said 19 
bounty ; and, after having received said bounty, it shall not be de- 20 
prived of the right to receive the same by reason of the subsequent 21 
incorporation of another society within the same county. 22 



ass^atlonT Section 2. The state board of agriculture may set aside from 1 

1895, 35i. the bounty allowed by the commonwealth to an incorporated agri- 2 

cultural society such amount as may be recommended by the dele- 3 

gate who represents such society on said board, and it shall be 4 

devoted solely to the premium list of such chartered poultry asso- 5 

ciation as said delegate may recommend, and upon such conditions 6 

as the board of agriculture may determine. 7 



fnlbount^to 11 " Section 3. A society which claims bounty shall annually, on or 1 
^certificate, before the tenth day of January, file in the office of the secretary of 2 
r. s'. 42, '§ 3.' the board of agriculture, a certificate signed by its president and 3 



Chap. 124.] agricultural and horticultural societies. 1207 

4 treasurer, stating under oath the amount so contributed which it Jf£'??& M: 

5 holds at interest or invested, as a capital stock ; and also such other isss, 127! § 1*. 

6 returns of its financial affairs as the board of agriculture may require, p.' s." nl, § 2. 

7 upon a blank to be furnished by the secretary of said board to the 1891 ' m " 

8 treasurer of said society. 

1 Section 4. The amount of bounty to which a society is entitled bou2ty tof 

2 for any year shall be ascertained by the certificate last filed by it state b ?* r d 

3 under the provisions of the preceding section. But a society shall same. 

• • 1847 69 § 2 

4 not receive bounty in any year, if the state board of agriculture, g. s'. 66, §3. 

5 having first given to it full opportunity to be heard relative to its pfs'.iu, §3. 

6 financial affairs and general management, so determines by a two- 

7 thirds vote of the whole number of its members present at its 

8 annual meeting, and by its secretary notifies the treasurer and 

9 receiver general thereof on or before the first day of September in 
10 such year. 

1 Section 5. A society which receives bounty shall make such ^rfbution of 

2 rules for the distribution thereof as shall, in its opinion, best pro- ]^ B |£- 

3 mote the improvement of agriculture ; subject, however, to the p- s'. 114, § 4. 

4 restrictions of sections eight to twelve, inclusive. 

1 Section 6. A society which has received or may receive a saieormort- 

2 bounty from the commonwealth shall not sell or mortgage the whole property regu- 

3 or any portion of its real estate unless so authorized by a vote of iggof^. 

4 two-thirds of the members of such society, at a meeting called for 

5 the purpose, approved by the state board of agriculture after notice 

6 to parties interested and a hearing. 

1 Section 7. Every such society shall annually, on or before Annual re- 

2 the tenth day of January, make a full return of its doings, signed isi8, s ii4, § 4. 

3 by its president and secretary, to the secretary of the state board ^l/m^i. 

4 of agriculture, containing a statement of all expenditures, of the il^ 142 V*. 

5 nature of the encouragement proposed by the society, the objects J| 5 | ^ J 6 L 

6 for which its premiums have been offered and the persons to whom i8'74,'i82. 

7 they have been awarded, all reports of committees and all state- 

8 ments of experiments and cultivation which are regarded by the 

9 president and secretary as worthy of publication, with such general 

10 observations relative to the state of agriculture and manufactures 

11 in the commonwealth as it may consider useful. The return shall 

12 be so marked that the passages which are considered by such 

13 officers most worthy of public notice, study and application may be 

14 easily distinguished. 

1 Section 8. A society which neglects in any year to comply with £ou n e ty Ureof 

2 the laws relating; thereto or with the regulations of the state board i&fjj. 1}}<X 5 - 

o . -1 -i , • 1 t 1847, 69, § 3. 

3 of agriculture shall not be entitled to bounty in the succeeding year. 1853, 127, § 3. 

1856, 181, § 2. 1859, 232, § 5. G. S. 66, § 6. P. S. 114, § 6. 

1 Section 9. A society which receives said bounty shall offer an- Premiums to 

2 nually by way of premiums, or shall otherwise apply, for the societies, etc. 

3 encouragement or improvement of agriculture or manufactures, an r. 1 !.^'/// 

4 amount not less than the amount so annually received, and shall p;!;^^. 



1208 



AGRICULTURAL AND HORTICULTURAL SOCIETIES. [CHAP. 124. 



offer such premiums for agricultural experiments, and in such man- 5 
ner, as the state board of agriculture requires. 6 



Premiums 
for trees for 
ship timber. 
1818, 114, § 5. 
R. S. 42, § 6. 
6. S. 66, § 8. 
P. S. 114, § 8. 
1901, 58. 



Section 10. Every such society shall annually offer such pre- 1 

miums and encouragement for the raising and preservation of oaks 2 

and other forest trees as it considers proper and adapted to per- 3 

petuate within the commonwealth an adequate supply of ship and 4 

other timber. 5 



i86™i8o, s §i. Section 11. Every such society shall admit as members, upon 1 

p. s. ii4, §9. equal terms, citizens of every town in the county in which it is 2 

located, and all premiums offered shall be subject to the competition 3 

of every citizen of such county. 4 

atmterest. be Section 12. All money offered for premiums which is not 1 

r 1 ! 42% § 5 4 ' awarded or paid shall be placed at interest and added to the capital 2 

g. s. m, § 9. stock of the society. p. s. 114, § 10. 3 



ues^provfslons Section 13. Sections one, three, four, five and seven to twelve, 

ill 114 5 6 inclusive, except the proviso in section four authorizing the state 

r. s. 42,' § 7. board of agriculture to withhold bounty, shall not, except by special 

1881,' 285. enactment, extend to an agricultural society incorporated for any 

P. S. 114, § n. , . , -, ,i , ° J r J 

territory less than a county. 



1 

2 
3 
4 
5 



Cattle shows 

regulated. 

1820, 49, § 1. 

R. S. 42, §§ 8-10. 

1847, 69, § 5. 

G. S. 66, §§ 11- 

13. 

P. S. 114, §§ 12- 

14. 

6 Allen, 588. 



Section 14. The officers of such society may define and fix 1 

bounds of sufficient extent for the erection of its cattle pens and 2 

yards and for convenient passage ways to and about the same on 3 

the days of its cattle shows and exhibitions, and also for its plough- 4 

ing matches and trials of working oxen ; but they shall not occupy 5 

or include within such bounds the land of any person without his 6 

consent, nor obstruct travel on any public highway. No person 7 

shall be permitted to enter or pass within such bounds unless in 8 

conformity with the regulations of the officers of the society. 9 

Whoever, contrary to such regulations, and after notice thereof, 10 

enters or passes within the bounds so fixed, shall forfeit not more 11 

than five dollars. 12 



Marshals, 
powers of. 
1820, 49, § 2. 
R. S. 42, § 11. 
G. S. 66, § 14. 
P. S. 114, § 15. 
6 Allen, 588. 



Section 15. The officers of such society may appoint a suffi- 1 

cient number of suitable inhabitants of the county to act as marshals 2 

at cattle shows and exhibitions. Such marshals shall have the 3 

powers of constables in relation to the preservation of the public 4 

peace and the service and execution of criminal process within the 5 

respective towns in which such shows and exhibitions are held, and 6 

such process may be directed to them accordingly ; and they shall 7 

exercise their office from twelve o'clock at noon of the day preced- 8 

ing the commencement of such shows and exhibitions until twelve 9 

o'clock at noon of the day succeeding the termination thereof, and 10 

no longer. 11 



oVpoiicTaf Section 16. Upon the application of the president of an in- 1 

exhibitions. corporated agricultural or horticultural society to the authorities of 2 

a city or town in which an exhibition of such society is to be held, 3 

said city or town authorities shall assign for special service at such 4 



1892, 180. 



Chap. 124.] agricultural and horticultural societies. 1209 

5 exhibition as many police officers or constables as may be necessary 

6 to preserve the peace and enforce the law at such exhibition. 

1 Section 17. The state board of agriculture may prescribe rules Kuiesfor 

2 to societies for uniform modes of ascertaining the product of crops amount of n fre- 

3 entered for premium. 1862, 24. p. s. 114, § 16. mmm crops - 

1 Section 18. Every such society may offer and pay premiums Premiums for 

2 for experiments in the cultivation of crops or in the raising of do- 1*59^23™,!^' 

3 mestic animals for farm purposes, and no regulation of the state pfs'. iu, § 17. 

4 board of agriculture to the contrary shall be valid. 

1 Section 19. Ten or more persons in any county, city or town, Formation of a 

2 who by agreement in writing associate for the purpose of eneourag- powers tlon- 

3 ing agriculture or horticulture, or for improving and ornamenting g 5 s. 3 66,'§17. 

4 the streets and public squares of any city or town by planting and ^'gf'^ge'f I 8 ' 

5 cultivating ornamental trees therein, may form a corporation under 

6 the provisions of chapter one hundred and twenty-five, and may hold 

7 real and personal estate not exceeding ten thousand dollars in value. 

1 Section 20. Farmers' clubs which are organized and are holding Farmers' clubs 

2 regular meetings shall, upon application made annually in November ucationlfete 1 . 1 '' 

3 to the secretary of the state board of agriculture, receive copies of Gps'-ee^'us. 

4 its report and of its other publications, in proportion to the number p- s. 114, § 19. 

5 of their members and to the applications so made. A club which 

6 receives such copies shall annually in October make returns to said 

7 secretary of its agricultural experiments and of the reports of its 

8 committees. 

1 Section 21. Every such society or farmers' club may establish of r peace ation 

2 such regulations, not inconsistent with law, as it may consider nee- ™ e h ^>|L 

3 essary and expedient for the preservation of peace and. good order or 6 Alien, 588. ' 

4 for the protection of its interests at its regular or annual meetings, 

5 shows, fairs or exhibitions, and shall cause at least five copies of 

6 such regulations to be posted in public places on its grounds not 

7 less than forty-eight hours before the time of holding each meeting. 

1 Section 22. No person shall, during the time of holding a cattle Booths, etc., 

2 show, fair or exhibition or meeting of a farmers' club, without the f^oh^fted " 

3 consent of the authorities having charge of the same, establish Jf^; }§; f f; 

4 within one-half mile of the place of holding such show or meeting a p - s - lu > § 21 - 

5 tent, booth or vehicle of any kind for the purpose of vending any 

6 goods, wares, merchandise, provisions or refreshments. No person 

7 shall engage in gaming or horse racing or exhibit a show or play 

8 during the regular or stated time of holding a cattle show, agricult- 

9 ural fair or meeting of a farmers' club, or engage in pool selling, at 

10 or within half a mile of the place of holding the same ; but any 

11 person having his regular place of business within such limits shall 

12 not be hereby required to suspend his business. 

1 Section 23. Whoever violates any provisions of the preceding Penalty. 

2 section, or a regulation established under the provisions of section p. s'. iu', § 22. 

3 twenty-one, shall forfeit not more than twenty dollars for such 

4 offence. 



1210 



CHARITABLE AND OTHER CORPORATIONS . [CHAP. 125. 



CHAPTEE 125. 



OF CORPORATIONS FOR CHARITABLE AND OTHER PURPOSES. 



Sections 1-12.' 
Sections 13-16.- 
Sections 17-19.- 
Sections 20-22. 



-Purpose and Manner of Organization. 
•Labor or Trade Organizations. 
•Railroad and Steamboat Relief Corporations. 
•Textile Schools. 



Formation of 
corporation. 
1857, 56, § 1. 
G. S. 32, § 1. 

1869, 276. 



PURPOSE AND MANNER OF ORGANIZATION. 

Section 1. Seven or more persons, a majority of whom are 1 

residents of this commonwealth, may form a corporation for any 2 

of the purposes named in the following section. 3 



1873, 176. 



1874, 375, § 1. 



P. S. 115, § 1. 



130 Mass. 325. 



Purposes of 
corporation. 
1857, 56, § 1. 
G. S. 32, § 1. 
1869, 276. 

1873, 176. 

1874, 375, § 2. 

1875, 107, § 2. 

1877, 204, § 1. 

1878, 153. 

P. S. 115, § 2. 



Section 2. Such corporation may be formed for any educational, 1 

charitable, benevolent or religious purpose ; for the prosecution of 2 

any antiquarian, historical, literary, scientific, medical, artistic, 3 

monumental or musical purpose ; for establishing and maintaining 4 

libraries ; for supporting any missionary enterprise having for its 5 

object the dissemination of religious or educational instruction in 6 

foreign countries ; for promoting temperance or morality in this 7 

commonwealth ; for encouraging athletic exercises or yachting ; for 8 

encouraging the raising of choice breeds of domestic animals and 9 

poultry ; for the association and accommodation of societies of Free 10 

Masons, Odd Fellows, Knights of Pythias or other charitable or 11 

social bodies of a like character and purpose ; for the establishment 12 

and maintenance of places for reading rooms, libraries or social 13 

meetings. 14 



Section 3. The corporation shall be formed in the manner pre- 



Organization. 
1857, 56, § 2. 

fm '375 § §f - 3-5. scr ibed in, and subject to the provisions of, sections fifteen to 
P- 8 |'ii5»§§ 3 . 4 - twenty, inclusive, of chapter one hundred and ten, except as fol- 
1890' 191! lows : 

The capital stock, if any, shall not exceed five hundred thousand 
dollars. 

The agreement of association of a corporation which has no capital 
stock may omit the statement of the amount of the capital stock and 
the par value and number of its shares. The par value of the shares 
of its capital stock, if any, may be ten, twenty-five, fifty or one 
hundred dollars. The fee to be paid to the secretary of the com- 
monwealth upon the filing of the certificate of organization shall be 12 
five dollars. 13 



1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 



Investigation 
of proposed 
associates. 
1890, 439, § 1. 
1893, 226, § 1. 



Section 4. Before making and issuing a certificate of incorpora- 1 

tion to a corporation formed for any of the purposes described in 2 

section two, the secretary of the commonwealth may forward a 3 

statement to the mayor and aldermen of the city, except Boston, 4 

or to the selectmen of the town, in which such society is to have ,5 

its principal oflice or rooms, and, if such office or rooms are to be 6 

in Boston, to the board of police for the city of Boston, giving a 7 



Chap. 125.] charitable and other corporations. 1211 

8 list of the names of the persons who have applied for incorporation, 

9 the purpose of the organization as stated by the applicants, the 

10 location proposed to be occupied and all other facts which may 

11 be stated in the application for incorporation. The mayor and 

12 aldermen, selectmen or board of police for the city of Boston, upon 

13 the receipt of such statement, shall immediately make an investi- 

14 gation and ascertain whether any of the proposed incorporators 

15 have been engaged in the illegal selling of intoxicating liquor or 

16 in keeping places or tenements used for the purpose of illegal 

17 gaming, or whether they have been engaged in any other business 

18 or vocation prohibited by law, and shall forthwith report to the 

19 secretary of the commonwealth all the facts ascertained. If, in his 

20 opinion, it appears from said report or otherwise that the proba- 

21 ble purpose of the formation of the proposed organization is to 

22 cover an illegal business, he shall refuse to issue a certificate of in- 

23 corporation. 

1 Section 5. Before making and issuing a certificate for the in- charitable 

2 corporation of a charitable corporation or home for the care and or^omes for 

3 support of minor children, the secretary of the commonwealth may igoi^os." 

4 also forward such statement as is described in the preceding section 

5 to the state board of charity, which shall immediately make an 

6 investigation as to the persons who have asked to be incorporated 

7 and as to the purposes of the incorporation, and any other material 

8 facts relative thereto, and shall forthwith report to the secretary of 

9 the commonwealth all the facts ascertained by it. If it appears to 

10 the secretary of the commonwealth from said report or otherwise 

11 that the probable purpose of the formation of the proposed cor- 

12 poration is to cover any illegal business, or that the persons ask- 

13 ing for incorporation are not suitable persons to have charge of 

14 minor children, from lack of financial ability or from any other cause, 

15 he shall refuse to issue his certificate. If he refuses to issue his 

16 certificate, the persons asking to be incorporated may appeal to the 

17 superior court, which shall hear the case and finally determine 

18 whether or not the certificate of incorporation shall be issued. 

1 Section 6. The corporation may prescribe by its by-laws the By-laws. 

2 manner in which, and the officers and agents by whom, the purposes i874?375, § 6. 

3 of its incorporation may be accomplished, and, instead of the direct- p. 7 !'. i?5, § §§'5, 6. 

4 ors and other officers to be chosen at the first meeting, it may have 

5 a board of other officers with the powers of directors, and presiding, 

6 financial and recording officers with the powers of president, treas- 

7 urer and clerk ; and its certificate of organization may be made, 

8 signed and sworn to by its presiding, financial and recording officers 

9 and a majority of its other officers having the powers of directors ; 

10 and the certificate issued by the secretary under the provisions of 

11 section twenty of chapter one hundred and ten shall be modified to 

12 correspond with the facts in each case. 

1 Section 7. Such corporation, if organized under general laws, increase of 

2 at a meeting called for the purpose may increase the amount of 1888,177. 

3 its capital stock and the number of shares therein to an amount not 

4 exceeding five hundred thousand dollars. 



1212 



CHARITABLE AND OTHER CORPORATIONS. [CHAP. 125. 



Such corpora- 
tions may hold 
real and per- 
sonal estate, 
and gifts, etc. 
1857, 56, § 4. 
G. S. 32, § 4. 
1S74, 375, § 7. 
P. S. 115, § 7. 

1896, 96. 

1897, 97. 
1901, 96. 

153 Mass. 78. 



Change of pur- 
pose of incor- 
poration. 

189S, 504. 



Section 8. Any corporation organized under general or special 1 

laws for any of the purposes mentioned in section two and under 2 

sections thirteen to sixteen, inclusive, may hold real and personal 3 

estate to an amount not exceeding one million five hundred thou- 4 

sand dollars, which shall be devoted to the purposes set forth in 5 

its charter or agreement of association, and it may receive and hold, 6 

in trust or otherwise, funds received by gift or bequest to be devoted 7 

by it to such purposes. 8 

Section 9. Such corporation may, at a meeting duly called for 1 

the purpose, by vote of all its members, add to or change the pur- 2 

pose for which it was incorporated, if the additional or new purpose 3 

is authorized by section two. The presiding, financial and record- 4 

ing officers and a majority of its other officers having the powers of 5 

directors shall forthwith make, sign and swear to a certificate setting 6 

forth such addition to or change of purpose, which, having been 7 

submitted to the commissioner of corporations and approved by 8 

him, shall thereupon be filed and recorded in the office of the secre- 9 

tary of the commonwealth. 10 

de^rees^f. Section 10. A corporation organized for medical purposes under 1 

etl den ' xmleB8 ' the provisions of this chapter shall not confer degrees, or issue 2 

diplomas or certificates conferring or purporting to confer degrees, 3 

unless specially authorized thereto by the general court. An 4 

officer, agent or servant of such corporation or any other person 5 

who confers degrees, or signs, issues or authorizes the signing or 6 

issuing of any diploma or certificate purporting to confer any degree 7 

of medicine or surgery, in violation of the provisions of this sec- 8 

tion, shall be punished by a fine of not less than five hundred nor 9 

more than one thousand dollars. 10 



etc 
1883, 268. 



1900, 409 



Horse^hreed- Section 11. Corporations which are formed under the provi- 1 

tions may hold sions of this chapter for encouraging the raising of choice breeds 2 

CMuioitions 

of horses may establish and maintain grounds suitable for exhibi- 3 

tions and trials of the speed or strength of horses ; may arrange 4 

for and advertise such exhibitions and trials upon such grounds, 5 

may collect admission fees thereto and may award purses or pre- 6 

miums to the participants therein, if such purses or premiums are 7 

raised only from voluntary subscriptions to the funds of the cor- 8 

poration, admission fees or fees for entering horses in such exhibi- 9 

tions or trials. 10 



Adoption of 
chapter by 
corporations 
otherwise 
organized. 
1875, 49, § 2. 
P. S. 115, § 13. 
130 Mass. 325. 



Section 12. A corporation which was formed before the twenty- 1 

seventh day of July in the year eighteen hundred and seventy-four 2 

under the provisions of any statute for any of the purposes men- 3 

tioned in section two may, at a meeting called for the purpose, vote 4 

to accept the provisions of the preceding sections of this chapter 5 

and present to the commissioner of corporations a certificate signed 6 

and sworn to by its presiding, financial and recording officers and a 7 

majority of its other officers having the powers of directors, setting 8 

forth a copy of its agreement of association and of said vote, the date 9 

of the meeting at which the vote was accepted and such further evi- 10 

dence as the commissioner may require of its legal existence and 11 

of its intention to accept the provisions of said sections. The com- 12 



Chap. 125.] charitable and other corporations. 1213 

13 missioner shall examine the certificate and evidence of organization, 

14 and, if it appears that the provisions of law have been complied 

15 with, shall so certify and approve the certificate by his indorsement 

16 thereon, and thereupon such corporations shall have the powers 

17 and privileges and be subject to the duties and liabilities of corpora- 

18 tions formed under said sections. The secretary of the common- 

19 wealth, upon payment of a fee of five dollars and upon the deposit 

20 in his office of said certificate with the indorsement thereon, shall 

21 cause it to be recorded, and shall issue a certificate in the follow- 

22 ing form : — 

Commonwealth of Massachusetts. 

Be it known that whereas [the names of the original subscribers] formerly Form of cer- 
associated themselves with the intention of forming a corporation under the name tiflcateof 
of [the name of the corporation] , for the purpose [the purpose declared in the to be issued by 
articles of agreement] , under the provisions of [the designation of the statute secretary of 
under the provisions of which organization was effected] , with a capital of [the wealth, 
amount of the capital stock, as it stands fixed by the corporation at the date of 
the certificate ; or, if there is no capital stock, this clause shall be omitted] , and 
the provisions of the statutes of this commonwealth in such case made and pro- 
vided have been complied with, as appears from the certificate of the proper 
officers of said corporation, duly approved by the commissioner of corporations, 
and recorded in this office : now, therefore, I [the name of the secretary] , secre- 
tary of the commonwealth of Massachusetts, do hereby certify that said [the 
name of the corporation] is legally organized and established as an existing 
corporation, with the powers, rights and privileges, and subject to the limita- 
tions, duties and restrictions, which by law appertain thereto. 

Witness my official signature hereunto subscribed, and the seal of the com- 
monwealth of Massachusetts hereunto affixed, this day of , in the 
year . [The day, month and year of execution of the certificate.] 

23 The secretary shall sign the same and cause the seal of the com- same to be 

24 monwealth to be thereto affixed, and such certificate shall be con- ^corporation. 

25 elusive evidence of the existence of such corporation at the date of 

26 such certificate. The secretary shall also cause a record of such 

27 certificate to be made, and a certified copy of such record may be 

28 given in evidence with like effect as the original certificate. 

labor or trade organizations. 

1 Section 13. Corporations maybe formed in the manner pro- Labor or trade 

2 vided in this chapter for the purpose of improving the condition iJCT34*§ i? s * 

3 of any employees in any one or more trades or employments, ^ 8 °] p,A,G ' 

4 either relative to their employment or to the promotion of educa- 

5 tion, temperance, morality or social intercourse among them, or for 

6 the purpose of paying benefits to sick or unemployed members, 

7 or to persons dependent upon deceased members or otherwise. 

1 Section 14. The commissioner of corporations shall not indorse indorsement 

2 his approval upon the certificate of organization of any such corpo- ?abo£ etc.* e 

3 ration, unless he is satisfied that the purpose of the association is i^mmS 8, 

4 lawful, that its by-laws contain no provision contrary to law and 

5 that they conform to the requirements of the following two sections. 

1 Section 15. The by-laws shall contain clear and distinct pro- By.iawsof 

2 visions relative to the election, admission and expulsion of mem- zfftions rgan " 

3 bers; the titles, duties, powers and tenure of the officers of the 1888 > 134 .§§ 3 . 4 - 

4 corporation and their election and removal ; the number of members 



1214 



CHARITABLE AND OTHER CORPORATIONS. 



[Chap. 125. 



Rights of 
members. 
1888, 134, § 4. 



required for a quorum ; the call for special meetings ; the adoption, 5 

amendment and repeal of by-laws ; the purposes to which the funds 6 

of the corporation may be applied and for which assessments may 7 

be laid upon the members ; the conditions upon which a member 8 

or persons dependent upon a deceased member shall be entitled to 9 

benefits, if any are to be given by the corporation ; the imposition of 10 

fines and forfeitures, if any ; the deposit, investment and custody 11 

of the funds of the corporation ; the periodical audit of the accounts 12 

of the treasurer ; and the method of voting on shares of stock, if 13 

any are issued by the corporation. A by-law shall not be repealed 14 

or amended, or an additional fry-law adopted, unless notice of such 15 

proposed action shall have been given at a previous meeting ; and 16 

such repeal, amendment or adoption shall not take effect until it 17 

has been approved by the commissioner of corporations as con- 18 

formable to the requirements of law. 19 

Section 16. No member of such corporation shall be expelled by 1 

vote of less than a majority of all the members thereof, nor by vote 2 

of less than three-quarters of the members present and voting upon 3 

such expulsion. Every member of such corporation and every 4 

person who has an interest in its funds shall be entitled to examine 5 

its books and records. 6 



Railroad, etc., 
relief corpo- 
rations. 
1882, 244, § 1. 
1890, 181, § 1. 



RAILROAD AND STEAMBOAT RELIEF CORPORATIONS. 

Section 17. Seven or more persons, a majority of whom are 1 

residents of this commonwealth, being employees of any railroad, 2 

street railway or steamboat corporation organized under the laws 3 

of this commonwealth, may, in accordance with the provisions of 4 

sections three to six, inclusive, form a corporation for the purpose 5 

of receiving, managing and applying such property and funds as 6 

it may receive by contribution, assessment or otherwise for the 7 

improvement and benefit of its members and for their relief and 8 

the relief of their families in case of sickness, injury, inability to 9 

labor or other cases of need. 10 



approval of. Section 18. The by-laws of such corporation shall be ap- 1 

1882, 244, §§ 'i, 3. proved by the board of railroad commissioners, and shall prescribe 2 

the manner in which, and the officers and agents by whom, the pur- 3 

pose of its incorporation may be carried out and also the manner 4 

in which its property may be invested. Such corporation shall 5 

annually, and as often as may be required by the board of railroad 6 

commissioners, render to the board such statements of its membership 7 

and financial transactions and such other information relative thereto 8 

as the board may consider necessary for a proper exhibit of its busi- 9 

ness and standing. Said board may verify such statement by an 10 

examination of the books and papers of the corporation ; and who- 11 

ever, having charge or custody of such books and papers, neglects 12 

to comply with the provisions of this section shall be punished by 13 

a fine of not more than five hundred dollars. 14 



company may Section 19. A railroad corporation which operates a railroad 1 

associate with or portion thereof in this commonwealth, and a street railway com- 2 

employees. 1 , ' . . . *' 

1886, 125. pany, may, by vote of its directors, associate itself with seven or 3 

1890, 181, §2. f J ' J ' J > 



Chap, 125.] charitable and other corporations. 1215 

4 more of its employees in forming a corporation under the pro- 

5 visions of section seventeen or may, upon the invitation of any such 

6 society, become a member thereof, and may from time to time aid 

7 such corporation by contributions to its funds or otherwise. The 

8 by-laws of such corporation shall provide for the manner in which 

9 the railroad corporation and street railway company shall vote and be 

10 represented in said corporation. The funds of such corporation shall 

11 not be liable to attachment by the trustee process or be liable to be 

12 taken on execution or on any other process, legal or equitable, 

13 to satisfy any debt or liability of the railroad corporation or street 

14 railway company or of any member of the corporation. 



TEXTILE SCHOOLS. 

1 Section 20. If the mayor of a city files a certificate with the Textile schools 

2 commissioner of corporations that in said city there are in opera- is^f^ § i. 

3 tion four hundred and fifty thousand or more spindles, not less than lelVassAw. 

4 seven nor more than twenty persons, citizens of this commonwealth, 

5 may associate themselves by an agreement in writing for the purpose 

6 of establishing and maintaining a textile school in such city for instruc- 

7 tion in the theory and practical art of textile and kindred branches of 

8 industry, with authority to take, by gift or purchase, and hold real 

9 and personal property to the amount of three hundred thousand 

10 dollars. A copy of said agreement and of the signatures thereto, 

11 sworn to by any one of the subscribers, shall be submitted to the 

12 governor, and if he certifies his approval of the associates as suitable 

13 for the purposes of their association and of this section, and they 

14 organize by the adoption of by-laws and the election of officers and 

15 file a certificate thereof and the certificate of the approval of the 

16 governor with the secretary of the commonwealth, he shall issue to 

17 them a certificate of corporation as similar as may be under the 

18 circumstances to the forms heretofore provided in this chapter and 

19 thereupon said associates shall be a corporation for said purposes, 

20 with all the powers and privileges, and subject to all the duties and 

21 obligations, of corporations organized for educational purposes 

22 under the provisions of this chapter, except as herein otherwise 

23 provided. Said corporation shall be known as the Trustees of the 

24 Textile School of the city in which it is located and may fill all 

25 vacancies in its membership, except as otherwise provided in sec- 

26 tion twenty-two. Only one such corporation shall be established 

27 under the provisions of this section in any one city. 

1 Section 21. A city in which such corporation is established tto^by^ities 

2 may appropriate and pay to it not more than twenty-five thousand i|)5, 475, § 2. 

3 dollars, and, upon such payment, the mayor and superintendent of 

4 schools of such city shall ex officiis be members of said corporation. 

1 Section 22. If a city appropriates and pays money to such monweaith ™" 

2 corporation, or if the trustees or members thereof pay money into ^l^-.J 

3 its treasury for the establishment and maintenance of such schools, 1899! 299,' § 3. 

4 the commonwealth shall appropriate and pay to said corporation 

5 an amount equal to the total amount so appropriated and paid, not 

6 exceeding twenty-five thousand dollars, and, upon such appro pria- 

7 tion and payment by the commonwealth, the governor shall, with 



1216 



FOREIGN CORPORATIONS. 



[Chap. 126. 



the advice and consent of the council, appoint two trustees of the 8 

corporation for two and four years respectively, and at the end 9 

of each of said terms a trustee for four years, and such trustees and 10 

their successors by like appointment shall be members of said cor- 11 

poration. The governor, with the advice and consent of the council, 12 

shall fill all vacancies in the membership created by this section. 13 



CHAPTEE 126. 



Foreign cor- 

porations 

defined. 

168 Mass. 564. 



OF FOREIGN CORPORATIONS. 



Section 1. The term foreign corporation as used in this chapter 1 

shall mean a corporation, association or organization which has 2 

been established, organized or chartered under the laws of another 3 

state or of a foreign country. 4 



Limitation of 

business. 

1894, 381. 

173 Mass. 252. 

[1 Op. A. G. 

181-1 



Section 2. A foreign corporation, except life insurance com- 1 

panies as provided in chapter one hundred and eighteen, shall not 2 

engage or continue in any kind of business in this commonwealth 3 

the transaction of which by domestic corporations is not permitted 4 

by the laws of this commonwealth. 5 



Foreign 
mortgage 
corporations. 
1895, 311, §§ 1, 2. 



Section 3. Foreign corporations engaged in the business of 1 

selling or negotiating bonds, mortgages, notes or other choses in 2 

action shall be subject to all the general laws relating to foreign 3 

corporations which have a usual place of business in this common- 4 

wealth, and they shall make an annual return to the commissioner 5 

of corporations of their assets and liabilities, and shall make such 6 

further statements to him at such times and in such form as he may 7 

require. 8 



Appointment 
of attorney. 
1852, 311, §§ 2-5. 
1854, 453, § 32. 
1856, 252, § 46. 
G. S. 58, §§ 68, 
69. 

1871, 371, § 1. 

1872, 325, § 4. 
1875, 79. 

1878, 36, §§ 1-5. 
P. S. 73, § 3; 
119, § 202. 
1882, 106, § 1. 

1884, 330, §§ 1, 2, 

1885, 183, § 9. 

1887, 214, § 78, 
cl. 3. 

1888, 429, § 13. 
1890, 421, § 17. 

1894, 367, § 12; 
522, § 78, cl. 3. 

1895, 311. 

1898, 474, § 15. 

1899, 442, § 20. 
1901, 238. 

12 Gray, 201. 
10 Allen, 231. 
14 Allen, 336. 
105 Mass. 141. 
132 Mass. 432. 
137 Mass. 252. 
139 Mass. 295. 

149 Mass. 26. 

150 Mass. 556. 



Section 4. Every foreign corporation, except foreign insurance 1 

corporations, which has a usual place of business in this common- 2 

wealth, or which is engaged in this commonwealth, permanently or 3 

temporarily, and with or without a usual place of business therein, 4 

in the construction, erection, alteration or repair of a building, 5 

bridge, railroad, railway or structure of any kind, shall, before 6 

doing business in this commonwealth, in writing appoint the com- 7 

missioner of corporations and his successor in office to be its true 8 

and lawful attorney upon whom all lawful processes in any action 9 

or proceeding against it may be served, and in such writing shall 10 

agree that any lawful process against it which is served on said 11 

attorney shall be of the same legal force and validity as if served on 12 

the corporation, and that the authority shall continue in force so 13 

long as any liability remains outstanding against the corporation in 14 

this commonwealth. Every foreign insurance corporation shall in like 15 

manner and with like effect appoint the insurance commissioner or 16 

his successor in office to be its attorney. The power of attorney 17 

and a copy of the vote authorizing its execution, duly certified and 18 

authenticated, shall be filed in the office of the commissioner who 19 

has been appointed, and copies certified by him shall be sufficient 20 



Chap. 126.] foreign corporations. 1217 

21 evidence thereof. Service of such process shall be made by leaving wo Mass. 413. 

22 a copy of the process with a fee of two dollars in the hands or in ies Mass.' 569. 

23 the office of the commissioner, and such service shall be sufficient gPu^l 88 ^!? 4, 

24 service upon the principal. 

1 Section 5 . When legal process against any such corporation is Notice of 

2 served upon the commissioner, he shall immediately give notice to 18^330, §§2,4. 

3 the corporation of such service by mail, postage prepaid, directed, 

4 in the case of a corporation established in a foreign country, to the 

5 resident manager, if any, in the United States ; and shall, within 

6 two days after such service, forward in the same manner a copy 

7 of the process served upon him to such corporation or manager, or 

8 to any other person designated by the corporation by written 

9 notice filed in the office of the commissioner. The fee of two 

10 dollars paid by the plaintiff to the commissioner at the time of the 

11 service shall be taxed in his costs, if he prevails in the suit. The 

12 commissioner shall keep a record of all such processes, which shall 

13 show the day and hour of service. 

1 Section 6. Every such corporation, except insurance corpo- copy of char. 

2 rations shall, before transacting business in this commonwealth, i884, 33o, §§3^*4. 

3 file with the commissioner of corporations a copy of its charter or 1900,' 280! 

4 certificate of incorporation, certified under the seal of the state or 155 Mass' 259' 

5 country in which such corporation is incorporated by the secretary 

6 of state thereof or the officer having charge of the original record 

7 therein, and a statement of the amount of its capital stock, of the 

8 amount paid in thereon to its treasurer and, if any part of such 

9 payment has been made otherwise than in money, of the details of 

10 such payment. Said statement shall be subscribed and sworn to by 

11 its president, treasurer and by a majority of its directors or officers 

12 having the powers usually exercised by directors. Every officer of 

13 such a corporation which fails to comply with the requirements of this 

14 section and section four and every agent of such corporation who 

15 transacts business as such in this commonwealth shall, for such 

16 failure, be liable to a fine of not more than five hundred dollars ; 

17 but such failure shall not affect the validity of any contract by or 

18 with such corporation. The officers and stockholders of foreign 

19 corporations which do business in this commonwealth and which 

20 are subject to the provisions of this and the preceding two sections 

21 shall be subject to the same penalties and liabilities for false and 

22 fraudulent statements and returns as officers and stockholders of 

23 domestic corporations. 

1 Section 7. The commissioner of corporations, the insurance investigation 

2 commissioner and any other officer of this commonwealth whose business to°be 

3 duty it is to examine and determine whether a corporation is en- ^f^i. 

4 titled to file any papers under the provisions. of the preceding three ^^/j' 6 ' 

5 sections, of section thirteen of chapter one hundred and nineteen 

6 or of chapters one hundred and eighteen or one hundred and twenty, 

7 shall refuse to accept or file the charter, financial statement or other 

8 papers of, or accept appointment as attorney for service for, any 

9 such corporation which does a business in this commonwealth the 

10 transaction of which by domestic corporations is not then permitted 

11 by the laws of this commonwealth. 



1218 



FOREIGN CORPORATIONS. 



[Chap. 126. 



Names of 
foreign cor- 
porations 
regulated. 
1S89, 452, §§ 2, 3. 
1890, 329. 
153 Mass. 271. 



Section 8. A foreign corporation which carries on a banking, 1 

mortgage, loan and investment or trust business shall indicate in 2 

letters equally conspicuous with its name, upon all signs, advertise- 3 

ments, circulars, letterheads and other documents which contain its 4 

name, the state or country in which it is chartered or incorporated. 5 

No such corporation and no person who is engaged in such business 6 

shall carry it on in or under a name which, previous to such use, 7 

was in lawful use by a corporation which was established under the 8 

laws of this commonwealth and was carrying on the same or a similar 9 

business or in or under a name so similar thereto as to be liable to 10 

be mistaken for it. The supreme judicial court and the superior 11 

court shall have jurisdiction in equity to enforce the foregoing pro- 12 

visions of this section. Whoever violates the provisions of this sec- 13 

tion shall be punished by a fine of not more than one thousand 14 

dollars. 15 



Foreign cor- 
porations may 
be sued and 
their property 
attached. 
1839, 158. 
G. S. 68, § 15. 
P. S. 105, § 28. 
10 Mass. 91. 
16 Pick. 274. 
3 Met. 420. 
6 Met. 391. 
10 Grav, 164. 
15 Gray, 491. 



Section 9. Foreign corporations which have property in this 1 

commonwealth shall be liable to be sued, and their property to be 2 

attached in the same manner as residents of other states who have 3 

property in this commonwealth are liable to be sued and their prop- 4 

erty to be attached. The service of the writ shall be made in the 5 

manner provided in chapters one hundred and sixty-seven and one 6 

hundred and seventy, with such further service as the court to which 7 

the writ is returnable may order. 8 

99 Mass. 267. 150 Mass. 550. 



Foreign manu- 
facturing cor- 
porations may 
hold real 
estate. 
1888, 321. 
1S95, 387. 



Section 10. Foreign manufacturing corporations which have 1 

complied with the provisions of sections four, five and six may pur- 2 

chase and hold such real estate in this commonwealth as may be 3 

necessary for conducting their business. 4 



Issue of stock 
on domestic 
franchises 
regulated. 
1S94, 476. 



Section 11. If a foreign corporation which owns or controls a 1 

majority of the capital stock of a domestic street railway, gas light 2 

or electric light corporation issues stock, bonds or other evidences 3 

of indebtedness based upon or secured by the property, franchise 4 

or stock of such domestic corporation, unless such issue is author- 5 

ized by the law of this commonwealth, the supreme judicial court 6 

shall have jurisdiction in equity in its discretion to dissolve such 7 

domestic corporation. If it appears to the attorney general that 8 

such issue has been made, he shall institute proceedings for such 9 

dissolution and for the proper disposition of the assets of such cor- 10 

poration. The provisions of this section shall not affect the right 11 

of foreign corporations, their officers or agents to issue stock and 12 

bonds in fulfilment of contracts existing on the fourteenth day of 13 

July in the year eighteen hundred and ninety-four. 14 



Certificate of 

increase of 

capital 

1891, 341, §§ 1, 

3,4. 

1895, 311, § 1. 

[lOp.A.G. 

583.] 



Section 12. Foreign corporations which have a usual place of 1 

business in this commonwealth, and foreign corporations engaged 2 

in the business of selling 1 or negotiating; bonds, mortgages, notes 3 

or other choses in action, but excluding mining and manufactur- 4 

ing companies which are actually conducting their mining and man- 5 

ufacturing operations wholly outside this commonwealth, foreign 6 

corporations which are required to make annual returns to officers of 7 

this commonwealth other than the commissioner of corporations, and 8 



Chap. 126.] foreign corporations. 1219 

9 railroad corporations, shall, within thirty days after the payment in 

10 of an increase of capital stock, file in the office of the secretary of 

11 the commonwealth a certificate of the amount of such increase and 

12 the fact of such payment, signed and sworn to by its president, 

13 treasurer and a majority of its directors. Within thirty days after 

14 the vote of such corporation authorizing a reduction of its capital 

15 stock, a copy of such vote, signed and sworn to by the clerk of the 

16 corporation, shall be filed in the office of the secretary of the com- 

17 monwealth. 

1 Section 13. A foreign corporation which is subject to the pro- certificate of 

2 visions of the preceding section shall annually, in March, make and i89if Mi, n § i. 

3 file in the office of the secretary of the commonwealth a certificate, 1895 > 311 >§i. 

4 signed and sworn to by its president, treasurer and a majority of 

5 its directors, stating the amount of its capital stock, the amount 

6 then paid in and the assets and liabilities of the corporation in such 

7 . form as the commissioner of corporations shall require. 

1 Section 14. A certificate which is required to be filed by sec- Approval of 

2 tions twelve or thirteen shall be accompanied by a written statement mi, 34if§"5. 

3 under oath by an auditor, as provided in section fifty-two of chapter 1897 « 492 - 

4 one hundred and ten, and shall, before it is filed, be submitted to 

5 the commissioner of corporations, who shall examine it, and if it 

6 appears to be in compliance with the requirements of said sections 

7 twelve or thirteen, he shall indorse his approval thereon. 

1 Section 15. A foreign corporation which is subject to the pro- Penalty for not 

2 visions of section twelve which omits to file the certificate required catef ceri 

3 by section thirteen shall forfeit not less than five nor more than ten ilii* iti) |§ a i, 3. 

4 dollars for each day for fifteen days after the first day of April, and 

5 not less than ten nor more than two hundred dollars for each day 

6 thereafter, during which such omission continues. Such forfeiture 

7 may be recovered by a proceeding in equity brought in the supreme 

8 judicial court in the name of the attorney general at the instance 

9 of the commissioner of corporations. Upon such proceeding the 

10 court may issue an injunction restraining the further prosecution 

11 of the business of the corporation named therein until the amounts 

12 so forfeited are paid, with interest and costs, and until the returns 

13 required by section thirteen are made, or it may issue an injunction 

14 restraining such corporation from the further prosecution of its 

15 business within this commonwealth during the pendency of such 

16 information. 

1 Section 16. The commissioner of corporations upon the failure Notice to de- 

2 of any such, corporation to file the certificate required by section corporation. 

3 thirteen shall forthwith notify such corporation, and the notice shall 1894 > 541 > § 4 - 

4 contain a copy of this and the preceding four sections. 



1 Section 17. The officers and members or stockholders of foreign Liability of 

2 corporations which have a usual place of business in this common- stockholders. 

3 wealth, except such as had such place of business on the twelfth 1896 ' 391> § L 

4 day of May in the year eighteen hundred and ninety-six, shall be 

5 jointly and severally liable for its debts and contracts on the same 

6 conditions and in the same manner as is provided for domestic 



1220 FOKEIGN CORPOKATIONS. [CHAP. 126. 

corporations by sections fifty-eight to sixty-eight, inclusive, of 7 
chapter one hundred and ten, except clause four of said section 8 
fifty-eight. 9 



Jffi^r^and Section 18. If the capital stock of a foreign corporation which 1 

stockholders is subject to the provisions of the preceding section has been paid 2 

valuation of in by a conveyance to the corporation of property, real or per- 3 

ascapuai. a en sonal, at an unfair valuation, the officers, members or stockholders 4 

189?; 423'. § 2 * who participate in such conveyance or in the taking of such prop- 5 

erty at such unfair valuation, or who have purchased or received 6 

shares with knowledge of said fact, shall be jointly and severally 7 

liable for its debts or contracts. 8 

oAiabiiuy nt Section 19. The extent, conditions and manner of enforcing 1 

1896. 391, §§ i, 2. the liability imposed by the preceding two sections shall be the 2 

same as is provided in the case of domestic corporations by sections 3 

fifty-eight to sixty-eight, inclusive, of chapter one hundred and ten, 4 

except clause four of said section fifty-eight. No officer, member 5 

or stockholder shall be liable under the provisions of the preceding 6 

two sections for any bonded or mortgage debt of corporations. 7 

f 8 || 8 - 106 §§3 5 Section 20. Foreign corporations shall pay to the officers here- 1 

mi' Hi' ! I'' ma ft er designated the following fees : — 2 

i895| 157! For filing a copy of its charter as required by section six, ten 3 

dollars to the treasurer and receiver general. 4 

For filing the statement required by section six, five dollars to 5 

the treasurer and receiver general. 6 

For filing the certificate or copy of vote required by section 7 

twelve, one dollar to the secretary of the commonwealth. 8 

For filing the certificate of condition required by section thirteen, 9 

five dollars to the secretary of the commonwealth. 10 



1900, 280. 



PART II. 



OF KEAL AND PERSONAL PROPERTY AND THE 
DOMESTIC RELATIONS. 



TITLE I. 



OF THE TITLE TO REAL PROPERTY. 

Chapter 127. — Of the Alienation of Land. 

Chapter 128. — Of the Registration and Confirmation of Titles to Land. 

Chapter 129. — Of Estates for Years and at Will. 

Chapter 130. — Of Easements. 

Chapter 131. — Of Homesteads. 

Chapter 132. — Of the Rights of a Husband in the Real Property of his De- 
ceased Wife, and the Rights of a Wife in that of her 
Deceased Husband. 

Chapter 133. — Of the Descent of Real Property. 

Chapter 134. — General Provisions relative to Real Property. 



CHAPTEE 127. 

OF THE ALIENATION OF LAND. 



Sections 1-6 . — Conveyance by Deed. 

Sections 7-23. — Acknowledgment and Recording of Deeds. 

Sections 24-27. — Barring of Estates Tail. 

Sections 28-32. — Conveyance of Estates subject to Remainders, etc. 

Section 33. — Instruments of Defeasance. 

Sections 34, 35. — Discharge of Mortgages. 

CONVEYANCE BY DEED. 

1 Section 1. A deed which is executed and delivered by the per- conveyance of 

2 son, or by the attorney of the person, who has authority therefor imi, 2{§i? ' 

3 shall, subject to the limitations of section four, be sufficient, with- R 8 |. 3 59, § § 4 i. 

4 out any other act or ceremony, to convey land. u Pick. 224. p.* I.' 126, Vi. 

12 Met. 157. 13 Met. 79. 16 Gray, 309. 137 Mass. 584. 

[ 1221 ] 



1222 



ALIENATION OF LAND. 



[Chap. 127. 



: era 
claim deed. 
R. S. 59, § 5. 
G. 8. 89, § 8. 
P. S. 120, § 2. 



Section 2. A deed of quit-claim and release shall be sufficient 
to convey all the estate which could la