ing of the agent. This may seem a
hard rule, yet it has a wide application. In one sense it is true that
every person can find out the law for himself, the books are open, the
statutes especially may be easily found, but how many know enough to
find the laws in which they are interested?

Of course if a person has been deceived by an agent, if a fraud has
been practised on him, he can avoid his contract. Thus a person who,
unable to read a subscription paper, was induced to subscribe through
misrepresentation of its contents, was not bound by it. If he wishes
to act, he must lose no time after discovering the fraud that has been
practiced on him. He cannot say, "I will abide by a company if
successful, and will leave it if it fails." He must therefore decide
at once either to continue his membership or withdraw.

A company cannot purchase its own shares unless by charter or statute
such action is clearly authorized. For, to do this is to reduce its
assets or fund for paying its indebtedness, which the law will not
permit to be done. If a company has no debts, a reduction in its
capital made in an open manner in accordance with law, is legal. The
tendency of the times everywhere is to increase the capitals of
private corporations; reductions though are sometimes made to lessen
especially the burden of taxation.

A corporation has no lien on its stock for the indebtedness of the
owner unless conferred by charter or statute. Once such a lien could
be established by usage or by-law under authority given to a
corporation to regulate the transfer of its stock. The national
banking law prohibits the creation of such liens, and the strong
current of the law runs in this direction. But a bank can retain a
dividend that has been declared to reduce the indebtedness of the
owner to the bank for his stock.

LIABILITY OF SHAREHOLDERS.

The liability of the shareholders of a corporation is very unlike that
of members of a partnership. It was the liability of each partner for
all the debts of a concern that kept many persons from forming that
relation. The shareholders of many corporations are liable only for
the amount they have contributed and paid, or have agreed to pay.
National bank shareholders are liable for another sum, equal to the
par value of their stock, provided as much may be needed to pay its
debts should the bank fail. Thus if a shareholder owned ten shares,
having a par value of $100 a share, he might be requir