The laws of the State of New York call for the keeping of a stock book or a stock ledger which shall contain the following information: (1) the names of stockholders, arranged alphabetically ; (2) the resi dence of each stockholder; (3) the number of shares held by each; (4) the time when stock was acquired; (3) the amount paid thereon; (6) a record of all transfers, showing from whom the stock was received and to whom it was transferred.
10. Stock-transfer book.—The stock-transfer book is used for the purpose of recording the transfers of stock, and contains the original entries which are posted to the stock ledger. In some cases the stock ledger and the stock-transfer book are combined. But both books, separate or combined, are required by the laws of a number of states. In New York State there is a tax on the transfer of capital stock, and the law requires a special form of book to be kept by trans fer agents and brokers. There is no transfer tax on the original issue of capital stock, but all transfers of a beneficial interest are taxable.
11. Dividend book.—The dividend book, or more properly, the dividend-receipt book, is used for the purpose of recording each dividend declared and paid. It contains a record of each dividend, of the number of shares held by each stockholder, and of the amount of the dividend paid thereon, with the signature of the stockholder as a receipt for the dividend paid to him.
12. Illustration of stock-transfer book.—The form given on page 179 is an illustration of a stock-trans fer book. The left side of the page records the trans fer of the stock, and the right side attests its validity. The number of shares surrendered and the number of shares each certificate represents, are entered; the name of the person, from whom they have been trans ferred and, for convenience, the folio of his account in the stock ledger, are also shown. The number of the new certificate, the number of shares it represents, the name of the person to whom it is transferred, i.e., the transferee; the address of the transferee; and for convenience, the folio of his account in the stock ledger, are given, and to close the page, the signa ture of the stockholder's attorney, authorized to make the transfer, who is the secretary of the corporation.
13. Illustration of stock ledger.—The form given on page 179 illustrates a stock ledger. It shows the name and address of a stockholder, the date when any transfer or surrender of stock was made, the number of the transfer and the person to whom the trans fer was made. It also shows the number of the cer tificate surrendered and the number of shares it rep resents. On the right-hand side of the account are the date of acquisition of stock and the information whether it is an original issue or a transfer from a prior holder. If the latter, the name of that prior holder is recorded. Columns are provided for the number of the new certificate issued and the number of shares it represents. The balance of shares held at any time is shown in the last column. As stated on page 181, the stock is often sold with the under standing that it is to be paid for in instalments; the instalment book and the instalment-scrip book are used in such a case. It is sometimes advisable to use an instalment ledger also, in order to keep track of the various payments. On page 180 an illustration of an instalment ledger is given. In this example, it will be noted that the original subscription was made on January 15th. On that date James Smith sub scribed to 100 shares at $100 each, a total of $10,000 on which he paid nothing. On February 1st, he paid the first instalment of 25 per cent; his account in the instalment ledger was credited for that payment, and instalment scrip for that amount was issued to him.
On March 1st, F. Brown transferred to Smith his subscription to 50 shares of stock, on which the first instalment had already been paid. Smith's account is therefore charged for that transfer, and shows the unpaid amount of $3,750. On March 15th, Smith transferred 25 shares to A. Peters. In order to com plete that transfer, Smith surrendered the instalment scrip for 50 shares issued to him on Brown's transfer, and was given two new scrips, each for 25 shares, in order that he might be able to give to Peters the scrip that he then transferred. On April 15th, Smith paid the second instalment on his subscriptions, and this was credited to his account.