There is a paper government for corporations and there is an actual government. The one is embodied in constitutional provisions, statutes, charters, by-laws, decisions; the other has its being in the conduct of men who control corporate activity. The one may arise from ethical ideals or from legal and economic philosophies; the other is made up of blunt, realistic facts Theoretically the paper government and the actual government can and should coincide. As a practical matter they do not. With them as with all human institutions there is a divergence of the intended and the realized, the ought and the is. When the separation is relatively small and development is not too rapid the paper government and the actual grow together and act as salutary checks upon each other. When development of corporate activity is stimulated to a rapidity that leaves the paper government groping, the reciprocal checks of the two governments upon each other lose their balance and the resultant effect may be anything but salutary. A reexamination of premises becomes necessary. A survey must be made of the factual ground into which the paper government must drive its roots.