It is usually held that a corporation has no implied power to buy and hold stock in another corporation ;1 as where the incorporation laws gave no authority to a manufacturing corporation to purchase stock, but such power was inserted by the incorporators in the articles of incorporation.2 But it may acquire stock in the usual course of its business as it may other property. Thus a bank may lend money on stock as collateral, and sell the stock, buying it itself ;3 or may take it in payment of a debt,4 and a corporation, formed to deal in jewelry, may trade jewelry for stock in another corporation,5 or a corporation lawfully going out of business may take the stock in another corporation in payment for its assets.6 A corporation cannot purchase the stock of a rival in order to suppress competition.7 If power to own stock in other corporations is expressly granted, it may of course be exercised.8 So power to consolidate and power to guarantee bonds includes power to buy stock;9 as does power to buy, sell and deal in public and private stock ;10 or power to buy "bonds, other securities and personal property."11 Authority to buy stock does not include the right to get control of a corporation so as to prevent payment of interest on bonds, and resistance to a foreclosure suit,12 nor to manage such other corporation.13 But power to "take stock" is not power to sell all its assets in exchange for stock of other corporation.14 Even where the statute forbids a corporation to buy stock in another it may take stock in a building and loan association as a means of borrowing money, where such borrowing is proper.15

St. Rep. 887; 59 N. W. 214; Herring v. Co-operative Association (Tenn. Ch. App.), 52 S. W. 327 (orally affirmed by Supreme Court).

6 Union National Bank v. Hunt, 7 Mo. App. 42; Taylor v. Exporting Co., 6 Ohio 176; Morgan v. Lewis, 46 O. S. 1; 17 N. E. 558.

7 Hall v. Henderson, 126 Ala. 449; 85 Am. St. Rep. 53; 61 L. R. A. 621; 28 So. 531.

8 Adams, etc., Co. v. Deyette, 8 S. D. 119; 59 Am. St. Rep. 751; 31 L. R. A. 497; 65 N. W. 471.

1 De La Vergne, etc., Co. v. Savings Institution, 175 U. S. 40; California National Bank v. Kennedy, 167 U. S. 362; Pauly v. Coronado Beach Co., 56 Fed. 428; Marbury v. Land Co., 62 Fed. 335; 10 C. C. A. 393; Lanier Lumber Co. v. Rees, 103 Ala. 622; 49 Am. St. Rep. 57; 16 So. 637 (indirectly through a trustee) ; Lester v. Lumber Co., 71 Ark. 379; 74 S. W. 518; Knowles v. San-dercock, 107 Cal. 629; 40 Pac. 1047; Chemical National Bank v. Haver-male, 120 Cal. 601; 65 Am. St. Rep. 206; 52 Pac. 1071; Glengary, etc., Co. v. Boehmer, 28 Colo. 1; 62 Pac. 839; Hazelhurst v. Ry., 43 Ga. 13; McCoy v. Columbian Exposition, 186 111. 356; 78 Am. St. Rep. 288; 57 N. E. 1043; affirming, 87 111.

App. 605; People ex rel. Moloney v. Pullman's, etc., Co., 175 111. 125; 51 N. E. 664; Martin v. Stove Co., 78 111. App. 105; Franklin Co. v. Lew-iston Inst., 68 Me. 43; 28 Am. Rep. 9; Hunt v. Malting Co., 90 Minn. 282; 96 N. W. 85; Bank of Commerce v. Hart, 37 Neb. 197; 40 Am. St. Rep. 479; 20 L. R. A. 780; 55 N. W. 631; Nebraska Shirt Co. v. Horton (Neb.), 93 N. W. 225; Central R. R. Co. v. R. R. Co., 31 N. J. Eq. 475; Talmage v. Pell, 7 N. Y. 328; Coler v. Power Co., -N. J. Eq.- ; 54 Atl. 413; reversing, 64 N. J. Eq. 117; 53 Atl. 680; Valley Ry. Co. v. Iron Co., 46 O. S. 44; 1 L. R. A. 412; 18 N. E. 486; Buckeye, etc., Co. v. Harvey, 92 Tenn. 115; 36 Am. St. Rep. 71; 18 L. R. A. 252; 20 S. W. 427; Denny Hotel Co. v. Schram, 6 Wash. 134; 36 Am. St. Rep. 130; 32 Pac. 1002. Contra, that a corporation may be a stockholder in another corporation. United, etc., Co. v. Electric Light Co., 68 Fed. 673. By statute in Indiana a corporation cannot purchase stock in another corporation without the written consent of all the stockholders of each corporation. Midland Steel Co. v. Bank, 26 Ind. App. 71; 59 N. E. 211.

2 People v. Trust Co., 130 111. 268; 17 Am. St. Rep. 319; 8 L. R. A. 497; 22 N. E. 798.

3 Chemical, etc., Bank v. Haver-male, 120 Cal. 601; 65 Am. St. Rep. 206; 52 Pac. 1071; Calumet Paper Co. v. Investment Co., 96 Ia. 147; 59 Am. St. Rep. 362; 64 N. W. 782; Talmage v. Pell, 7 N. Y. 328.

4 National Bank v. Case, 99 U. S. 628; First National Bank v. Exchange Bank, 92 U. S. 128; Holmes, etc., Co. v. Metal Co., 127 N. Y. 252; 24 Am. St. Rep. 448; 27 N. E. 831.

5 White v. Marquardt & Sons, 105 Ia. 145; 74 N. W. 930; affirming (on rehearing), 70 N. W. 193.

6 Metcalf v. Furniture Co., 122 Fed. 115; Holmes v. Metal Co., 127 N. Y. 252; 24 Am. St. Rep. 448; 27 N. E. 831.

7 De La Vergne, etc., Co. v. Savings Institution, 175 U. S. 40; Memphis, etc., Co. v. Woods, 88 Ala. 630; 16 Am. St. Rep. 81; 7 L. R. A. 605; 7 So. 108; People v. Trust Co., 130 111. 268; 17 Am. St. Rep. 319; 8 L. R. A. 497; 22 N. E. 798; Pearson v. R. R., 62 N. H. 537; 13 Am. St. Rep. 590; State v. Distilling Co., 29 Neb. 700; 46 N. W. 155.

Contra, " under our liberal corporation laws," Trenton Potteries Co. v. Oliphant, 58 N. J. Eq. 507, 524; 78 Am. St. Rep. 612; 46 L. R. A. 255; 43 Atl. 723; affirming in part and reversing in part, 56 N. J. Eq. 680; 39 Atl. 923. It depends on the objects to be attained, agreements to pool stock not being necessarily illegal. Chapman v. Bates, 61 N. J. Eq. 658; 47 Atl. 638; affirming, 60 N. J. Eq. 17; 46 Atl. 591.

8 Rogers v. Ry. Co., 91 Fed. 299; 33 C. C. A. 517; Tod v. Land Co., 57 Fed. 47; Trust Co. v. State, 109 Ga. 736; 48 L. R. A. 520; 35 S. E. 323; Atchinson, etc., R. R. Co. v. Cochran, 43 Kan. 225; 19 Am. St. Rep. 129; 7 L. R. A. 414; 23 Pae. 151; Atchison, etc., R. R. Co. v. Davis, 34 Kan. 209; 8 Pac. 530; Atchison, etc., R. R. Co. v. Fletcher, 35 Kan. 236; 10 Pac. 596; Rubino v. Car Co., - N. J. Eq. - ; 53 Atl. 1050; Ditman v. Distilling Co., 64 N. J. Eq. 537; 54 Atl. 570; Northern Central Ry. Co. v. Walworth, 193 Pa. St. 207; 74 Am. St. Rep. 683; 44 Atl. 253.

9 Louisville, etc., Co. v. Ry. Co., 75 Fed. 433.