The American railways have been generally constructed by joint stock companies, which, however, the State controls much more stringently than in England. In some cases a major limit to the dividends is imposed by the statute of incorporation, in some the dividends are allowed to augment, but when they exceed a certain limit the surplus is divided with the State; in some the privilege granted to the companies is only for a limited period, in some a sort of periodical revision and restriction of the tariff is reserved to the State. Nothing can be more simple, expeditious, and cheap than the means of obtaining an act for the establishment of a railway company in America. A public meeting is held at which the project is discussed and adopted, a deputation is appointed to apply to the Legislature, which grants the act without expense, delay, or official difficulty. The principle of competition is not brought into play as in France, nor is there any investigation as to the expediency of the project with reference to future profit or loss as in England. No other guarantee or security is required from the company than the payment by the shareholders of a certain amount, constituting the first call. In some States the non-payment of a call is followed by the confiscation of the previous payments, in others a fine is imposed on the shareholders, in others the share is sold, and if the produce be less than the price at which it was delivered the surplus can be recovered from the shareholder by process of law. In all cases the act creating the companies fix a time within which the works must be completed, under pain of forfeiture. The traffic in shares before the definite constitution of the company is prohibited. Although the State itself has rarely undertaken the execution of railways, it holds out in most cases inducements in different forms to the enterprise of companies. In some cases the State takes a great number of shares, which is generally accompanied by a loan made to the company, consisting in State Stock delivered at par, which the company negotiate at its own risk. This loan is often converted into a subvention.