ART. 23] FRANCHISE TAX. 591

deposit or substitute bonds of a different kind in their place, as the
board of public works may order, then the said company or companies
shall be treated as being in default and shall be subject to all the
penalties imposed on said companies for doing business in this State
without depositing the proper securities with the said treasurer as now
or hereafter provided by law.
See sec. 157.

1904, art. 23, sec. 107. 1904, ch. 251, sec. 85 N. 1908, ch. 240, sec. 107.

119. It shall be lawful for the stockholders of any life insurance,
accident insurance, safe deposit, trust or fidelity company, created by
general law or special act, in general meeting assembled, from time to
time, to provide for calling in and cancelling the whole or any part of
the capital stock, and issuing other stock instead thereof at such par
value as they may decide on, to an amount not exceeding the true value
of such stock, in such manner as to provide such contingent fund or
surplus not represented by stock as they may decide to be necessary;
provided that notice of every such meeting of stockholders shall be
given in the manner required by sections 15 or 16 of this article, and
the proceedings thereafter shall be similar to those prescribed in sections
26 to 28 (both inclusive) of this article.

Ibid. sec. 108, 1900, ch. 272, sec. 85 A.*

120. All corporations heretofore chartered under any of the laws of
this State, except cemetery companies, companies created for purely
benevolent or charitable purposes, railroad companies and building or
homestead associations, which have not within two years from the date
of the granting of their charters of certificates of incorporation actually
organized and begun business, shall be conclusively presumed to have
surrendered all corporate or charter rights, unless within six months
from the first day of June, 1900, each of said corporations shall have
paid to the treasurer of this State a franchise tax equal to one-eighth of
one per cent, per annum, accounting from two years after the date of
the granting of such charter or certificate of incorporation, upon the
amount of capital stock required to be subscribed before it is authorized
to begin business, and upon payment as aforesaid, and receiving the
receipt of the comptroller therefor the said corporate or charter rights
shall continue.

The forfeiture of the charter for the non-payment of the franchise tax is
not a self-executing provision, but may only be enforced by the state. Such
non-payment Is no defense in an action by a creditor against a stockholder
under section 116. The act of 1900, ch. 272, criticised. Murphy v. Wheatley,
102 Md. 503. And see Frost v. Frostburg Coal Co., 24 How .278.
As to foreign corporations, see also, sec. 95, et seq.
As to the taxation of corporations, see art. 81.

*Should have been called 85 N.