Real Estate Corporations. 



Address by Hon. George G. Crocker at the Annual 

 Dinner of the Real Estate Exchange, 

 March 11, 1903. 



HAPTER 123 of the Revised Laws authorizes five or more proprietors 



v ""' of wharves, of real estate held in common, or of general fields, to 

 form a corporation for the better management of their estates. Laws of 

 like tenor were passed early in the eighteenth century. They have 

 been amended from time to time, notably in 17S3, but they are still in 

 such crude shape that they are of little or no practical value. Some such 

 corporations, organized long ago, are, however, still in existence. 



With the above exception there was, prior to 1 851, no general law 

 providing for the organization of corporations for any purpose whatsoever. 

 A special charter was needed in every case. In that year, 1S51, an act 

 was passed authorizing the formation of corporations for manufacturing, 

 mechanical, mining and quarrying purposes, with a capital stock of not 

 less than $5,000 nor more than $200,000. As business interests have 

 increased in size, variety and number with the growth and commercial devel- 

 opment of our State, the importance, I might almost say the necessity, of 

 regulating them by general laws rather than by special charters has been 

 forced upon the attention of the General Court. 



To enact general rather than special legislation, when such action can 

 be taken without detriment to the public interest, is now a well-recognized 

 policy, which for many years has found expression in the rules governing 

 the reports of legislative committees. 



At the present day, trust companies, mortgage loan and investment 

 companies, and savings banks are still organized under special charters, 

 though it is at least questionable whether they might not be organized 

 under general laws. With this possible exception, a corporation can now 

 be organized under general laws for any lawful business except that of an 

 innkeeper, of distilling or manufacturing intoxicating liquors, or of buying 

 and selling real estate. 



The limitations as to the amount of capital have been broadened from 

 time to time and vary according to the business to be transacted. The 

 lower limit is $1,000. The upper limits vary from $5,000 to $1,000,000, 

 but mechanical and manufacturing corporations are permitted to increase 



