for each offense, to be recovered on complaint of the Board of Transportation Commissioners, as in the last section provided.

All forfeitures under this section shall be paid into the State treasury, for the benefit of the public schools of the State.

Penalty for unlawful issue of Passes.

SEC. 6. Any such railroad company that issues free passes to any person or persons, other than those specified in section three of this chapter, or shall permit any person whatever to travel free upon their cars, except upon the exhibition of free passes issued as provided in said section, shall forfeit and pay for each offense, the sum of one hundred dollars, to be recovered, and paid over, one half to the State Treasurer, and the other half to the informer, as in the last section provided.

Prosecutions for violation.

SEC. 7. Whenever it shall come to the knowledge of the Board of Transportation Commissioners, that the provisions of this Act are violated by any such railroad corporation in this State, it shall be their duty to investigate the charge; and whenever, in their judgment, the facts warrant prosecution, it shall be their duty to immediately cause suits to be commenced and prosecuted against any such corporation which shall have been guilty of such violation. Such suits may be brought in any Court of competent jurisdiction. All such suits shall be prosecuted by the District Attorney of the county where such action is brought.

Stop-over Tickets.

SEC. 8. Any person traveling upon any such railroad in this State, desiring to stop over at any station between the point of his departure and destination, shall, upon request, be entitled to receive from the conductor of the train, without further charge thereon, a stop-over ticket, which shall be good for the remainder of his journey, and may be used at any time within six months after it shall have been issued.

Act-how applied.

SEC. 9. The provisions of this Act shall be deemed applicable to such railroads as herein mentioned, whether oper

ated by corporations, trustees, or owner or owners not incorporated.

SEC. 10. This Act shall take effect and be in force from and after its passage.

[The following provisions of the Penal Code relate to corporations, and need to be carefully considered. They are taken from Chapter XIII, Title XIII, Part I, 8 557 to 2572, inclusive; and Chapter IX, Title X, Part II, 1390 to 1397, inclusive.]

557. Fraud in Subscriptions for Stock of Corporations. Every person who signs the name of a fictitious person to any subscription for or agreement to take stock in any corporation, existing or proposed, and every person who signs to any subscription or agreement the name of any person, knowing that such person has not means or does not intend in good faith to comply with all the terms thereof, or under any understanding or agreement that the terms of such subscription or agreement are not to be complied with or enforced, is guilty of a misdemeanor.

This section is intended to meet a species of fraud frequently practiced in the organization of corporations. (Palmer v. Lawrence, 3 Sandf. 161; 1 Seld. 381.)

558. Frauds in procuring Organization of Corporation or Increasing its Capital. Every officer, agent, or clerk of any corporation, or of any persons proposing to organize a corporation, or to increase the capital stock of any corporation, who knowingly exhibits any false, forged, or altered book, paper, voucher, security, or other instrument of evidence, to any public officer, or board authorized by law to examine the organization of such corporation, or to investigate its affairs, or to be allowed an increase of its capital, with intent to deceive such officer or board in respect thereto, is punishable by imprisonment in the State Prison not less. than three or more than ten years.

559. Unauthorized use of Name in Prospectus, etc. Every person who, without being authorized so to do, subscribes the name of another to, or inserts the name of another in any prospectus, circular, or other advertisement, or an

nouncement of any corporation or joint-stock association, existing, or intended to be formed, with intent to permit the same to be published, and thereby to lead persons to believe that the person whose name is so subscribed is an officer, agent, member, or promoter of such corporation or association, is guilty of a misdemeanor.

560. Misconduct of Directors of Stock Corporations. Every director of any stock corporation who concurs in any vote or act of the directors of such corporation, or any of them, by which it is intended, either:

1. To make any dividend, except from the surplus profits arising from the business of the corporation, and in the cases and manner allowed by law; or,

2. To divide, withdraw, or in any manner, except as provided by law, pay to the stockholders, or any of them, any part of the capital stock of the corporation; or,

3. To discount or receive any note or other evidence of debt, in payment of any installment actually called in and required to be paid, or with the intent to provide the means of making such payment; or,

4. To receive or discount any note or other evidence of debt, with the intent to enable any stockholder to withdraw any part of the money paid in by him, or his stock; or,

5. To receive from any other stock corporation, in exchange for the shares, notes, bonds, or other evidences of debt of their own corporation, shares of the capital stock of such other corporation, or notes, bonds, or other evidences of debt, issued by such other corporation;

-Is guilty of a misdemeanor.

561. Savings Bank Officer Overdrawing his Account. Every officer, agent, teller, or clerk of any savings bank, who knowingly overdraws his account with such bank, and thereby wrongfully obtains the money, note, or funds of such bank, is guilty of a misdemeanor.

562. Receiving Deposits in Insolvent Banks. Every officer, agent, teller, or clerk of any bank, and every individual banker, or agent, teller, or clerk, or clerk of any individual banker, who receives any deposits knowing that such bank,

or association, or banker is insolvent, is guilty of a misde

meanor.

See Nixon's Dig., p. 372, § 4; State v. Stimpson, 4 Zabr. 478.

563. Frauds in keeping Accounts in Books of Corporation. Every director, officer, or agent of any corporation or joint stock association who knowingly receives or possesses himself of any property of such corporation or association, otherwise than in payment of a just demand, and who with intent to defraud omits to make, or to cause or direct to be made, a full and true entry thereof in the books or accounts of such corporation or association, and every director, officer, agent, or member of any corporation or joint stock association who, with intent to defraud, destroys, alters, mutilates, or falsifies any of the books, papers, writings, or securities belonging to such corporation or association, or makes or concurs in making any false entries, or omits or concurs in omitting to make any material entry in any book of accounts, or other record or document kept by such corporation or association, is punishable by imprisonment in the State Prison not less than three, or more than ten years, or by imprisonment in a county jail not exceeding one year, and a fine not exceeding five hundred dollars, or by both such fine and imprisonment.

564. Fraudulent Reports. Every director, officer, or agent of any corporation, or joint stock association, who knowingly concurs in making, publishing, or posting any written report, exhibit, or statement of its affairs or pecuniary condition, or book or notice containing any material statement which is false; or refuses to make any book or post any notice, required by law, in the manner required by law, other than such as are mentioned in this chapter, is guilty of felony. [Approved Jan. 27, 1876.]

565. Officer of Corporation to permit an Inspection of its Books. Every officer or agent of any corporation, having or keeping an office within this State, who has in his custody or control any book, paper, or document of such corporation, and who refuses to give to a stockholder or member of such corporation, lawfully demanding, during office hours, to in

spect or take a copy of the same, or of any part thereof, a reasonable opportunity so to do, is guilty of a misdemeanor.

NOTE. In an action against a corporation to recover the penalty provided by statute for refusing an inspection of the stock book of the company, the complaint must show that the officer upon whom the demand for inspection was made had notice that the person making the demand was entitled to the inspection. (Williams v. Road Co., 45 Ind. 170.)

566. Officer of Railroad Company contracting Debt in its behalf exceeding its available means. Every officer, agent, or stockholder of any railroad company who knowingly assents to or has any agency in contracting any debt by or on behalf of such company, unauthorized by a special law for the purpose, the amount of which debt, with other debts of the company, exceeds its available means for the payment of its debts, in its possession, under its control, and belonging to it at the time such debt is contracted, including its bona fide and available stock subscriptions, and exclusive of its real estate, is guilty of a misdemeanor.

567. Debt contracted in violation of last section not invalid. The last section does not affect the validity of a debt created in violation of its provisions, as against the company.

568. Director of a Corporation presumed to have knowledge of its affairs. Every director of a corporation, or joint stock association, is deemed to possess such a knowledge of the affairs of his corporation as to enable him to determine whether any act, proceeding, or omission of its directors is a violation of this chapter.

569. Director present at Meeting, when presumed to have assented to proceedings. Every director of a corporation, or joint stock association, who is present at a meeting of the directors at which any act, proceeding, or omission of such directors, in violation of this chapter, occurs, is deemed to have concurred therein, unless he, at the time, causes, or, in writing, requires his dissent therefrom to be entered in the minutes of the directors.

570. Director absent from Meeting, when presumed to have assented to proceedings. Every director of a corporation, or