CHAPTER XI.

FRAUDULENT DESTRUCTION OF PROPERTY INSURED.

§ 548. Burning or destroying property insured.

§ 549. Presenting false proofs upon policy of insurance.

548. Every person who willfully burns or in any other mauner injures or destroys any property which is at the time insured against loss or damage by fire, or by any other casualty, with intent to defraud or prejudice the insurer, whether the same be the property of or in possession of such person, or of any other, is punishable by imprisonment in the State prison not less than one nor more than ten years.

See ante, notes to §§ 447, 452; and see Civ. Code, §§ 2527, 2531.

Burning to defraud insurers-is an indictable offense under the statute-32 Cal. 160; 19 N. Y. 537; 51 N. H. 176; 1 Parker Cr. R. 560; and a possibility of defrauding is sufficient-63 Me. 128; 25 Mich. 500; 1 Esp. 127; Dears. 187. The intent to defraud must be averred, and the parties accurately set out-82 Ill. 432; 63 id. 451. Though there are several insurers, it is but a single crime-114 Mass. 272.

549. Every person who presents or causes to be presented any false or fraudulent claim, or any proof in support of any such claim, upon any contract of insurance for the payment of any loss, or who prepares, makes, or subscribes any account, certificate of survey, affidavit, or proof of loss, or other book, paper, or writing, with intent to present or use the same, or to allow it to be presented or used in support of any such claim, is punishable by imprisonment in the State prison not exceeding three years, or by fine not exceeding one thousand dollars, or by both. See ante, notes to §§ 447, 452; and see Civ. Code, §§ 2633-2637.

False proofs.-To swear falsely to the loss, by fire, of goods which have been insured, and thereby getting the insurance, is within the statute-1 Wheel. C. C. 242.

§ 554.

Stamping false weight, etc., on casks or packages.

§ 555. Weight by the ton or pound.

552. A false weight or measure is one which does not conform to the standard established by the laws of the United States of America.

See Pol. Code, §§ 3209-3223.

553. Every person who uses any weight or measure, knowing it to be false, by which use another is defrauded or otherwise injured, is guilty of a misdemeanor.

Use of false weights.-The use of false weights and measures on the sale of property is cheating-6 Mass. 72; 12 Johns. 291; 9 Wend. 182; 13 id. 311; id. 87; 3 Burr. 1697; 1 Black. W.273; 3 Term Rep. 104. Falsely representing the weight of an article is within the statute-8 Cox C. C. 263; id. 262; but not if only done to induce to a purchase-3 Fost. & F. 838; see 9 Cox C. C. 460; so to pretend to have weighed it, and falsely representing its weight, is a false pretense-3 Fost. & F. 838.

554. Every person who knowingly marks or stamps false or short weight or measure, or false tare, on any cask or package, or knowingly sells or offers for sale, any cask or package so marked, is guilty of a misde

meanor.

Marks and stamps.-A baker marking bread at overweight is guilty of cheating-1 Dall. 47; but not if no weights be used-id.; 3 Const. S. C. 139; so, selling an article with a forged seal on it-2 Russ. Cr. 609; or a false stamp or tradé-mark-2 East P. C. 820.

555. In all sales of coal, hay, and other commodities, usually sold by the ton or fractional parts thereof, the seller must give to the purchaser full weight, at the rate of two thousand pounds to the ton; and in all sales of articles which are sold in commerce by avoirdupois weight, the seller must give to the purchaser full weight, at the rate of sixteen ounces to the pound; and any person violating this section is guilty of a misdemeanor. [Approved Feb. 15th, 1876.]

CHAPTER XIII.

FRAUDULENT INSOLVENCIES BY CORPORATIONS, AND OTHER FRAUDS IN THEIR MANAGEMENT.

§ 557. Frauds in subscriptions for stock of corporations.

$ 558. Frauds in procuring organization, etc., of corporation.

§ 559. Unauthorized use of names in prospectus, etc.

560. Misconduct of directors of stock corporations.

§ 561. Savings-bank officer overdrawing his account.

§ 562. Receiving deposits in insolvent banks.

§ 563.

§ 564.

§ 565.

Frauds in keeping accounts in books of corporations.
Officer of corporation publishing false reports.
Officer of corporation to permit an inspection.

§ 566.

Officer of railroad company contracting debt in its behalf exceeding its available means.

§ 567.

Debt contracted in violation of last section not invalid.

568. Director of a corporation presumed to have knowledge of its

affairs.

§ 569. Director present at meeting, when presumed to have assented to proceedings.

§ 570. Director absent from meeting, when presumed to have assented to proceedings.

§ 571. Foreign corporations.

§ 572. "Director" defined.

557. 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 misde

meanor.

The obligation of actual payment is created in all cases by a subscription to a capital stock, unless the terms of the subscription plainly exclude it-3 Sand. 164; 2 Hill, 153; 5 id. 478; 1 Sand. Ch. 180; 7 Met. 392; 21 Wend. 273; 12 Conn. 499. See Civ. Code, §§ 292, 293, 295.

558. 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 nor more than ten years.

See Civ. Code, §§ 283-320, 322-349, 359, 377, 378. See 3 Sand. 164.

559. 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 announcement of any corporation or jointstock 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. See Civ. Code, §§ 292, 293; and see ante, § 558.

560. 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 with

draw 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.

See Civ. Code, "Corporations"; and see ante, §§ 309, 558.

561. 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. Overdrawing account-by bank director or officer of a bank, is indictable-4 Zab. 478.

562. Every officer, agent, teller, or clerk of any bank, and every individual banker, or agent, teller, or clerk of any individual banker, who receives any deposits, knowing that such bank, or association, or banker is insolvent, is guilty of a misdemeanor.

See 4 Zab. 478.

563. 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