The Ohio Democrat. (Logan, O. [Ohio]) 1886-1906, 1890-01-11
OHIO CONGREGATIONS.
Abstract of Secretary. Ryan's Annual Rs-
port-A Great Increase in tho Receipts
OF the Secretary of States ONCE.

port to the Governor, Secretary Ryan
calls attention to the fact that notwith-
standing the increase of fees for procur-
ing certificates of Incorporation, the
number of corporations formed in Ohio
during the past year, and the business
of his office, relating thereto, has ex-
ceeded that of 1888.
The following includes the number
and class of companies incorporated from
November 10, 1888, to November 10, 1889;
13 banks and saving institutions, 90
building and loan associations, 10 ceme-
terry associations, III churches ana
church societies, II colleges and lit
erary societies, cooperative COM
panies, 81 electric light and power COM
panies, 80 gas, oil, and natural gas
companies, 8 insurance associations, BIZ
manufacturing companies, 2S mining
companies, 81 municipal corporations,
16 printing and publishing companies,
"a railroad companies, 2S5 political,
benevolent, social, and mutual societies,
10 street railroad companies, 2 telegraph
and telephone companies, and 1856 mis-
cellaneous companies, making total OF
1,193, as against LORI in 1888.
Speaking of this remarkable showing
the Secretary says: SIT was feared at
the time that the increase of the cor
poration fee to 81 per 81, 900 of the capi-
tai stock would have a tendency to de-
creasing the number or corporations
during the year. No such effect was
produced. The reason of this is that
the transformation of private capital
into corporate stock is rapidly becoming
the favored form of investment in busi-
ness circles, and it is worth to those
concerned all that the State charges.
Private firms throughout the State
charges. Private firms throughout
the State are almost daily capital
izing their assets, and every new
enterprise assumes the form of a
corporation before commencing its ca
reer. This can be readily understood
when we reflect upon the characteristics
of corporation. Its two strongest rec
concentrations are limitation of liability
and permanency of operation. These
are among the greatest inducements to
form bona fide corporations, and the fact
of their formation is not controlled nor
affected by the fees paid the State for
the privilege of their franchises. AS
conclusive evidence of this, need but
to refer to the fact that the aggregate
capital stock, original and increase, GER
titled to this department by corporations
formed and existing in this State during
the past year exceeds by nearly one
hundred millions of dollars that of any
previous year"
In confirmation of this fact, an elab-
crate table showing the classes of cor
porations and the aggregate amount of
capital of each class for the past five
years is given. This shows that the
aggregate capital stock of corporations
for 1889 was S257 ,541, sos; 1888, sos, $780,
75O; 1887, s1GO, ,712, 475; 1886, $1O6, 116, $50;
and 1885, S93,091, 900. This certainly
exhibits a wonderful growth in the
business interests of this State and at
the same time furnishes striking evil
dences of the degree Of confidence in
business circles, but it is in the fees
connected with the Office that the Secre.
tary of State shows such substantial
budget for the State. On this subject
the report says:
"The natural result of this remarka-
BILE increase in the capital stock of cor
porations has been correspon ding in
crease in the fees of this department.
For many years the expense of incor-
porating in Ohio was merely nominal,
the fees received not compensating the
State for the maintenance of the official
machinery used in creating corporations.
By the act of March IS, 1884, passed in
response to recommendation of Secre-
tary Newman, this department was made
self-sustaining for the first time"
For the year ending November l5, the
receipts of this department have been
S146,379.13. This large increase, being
S122, ,S50.33 over the receipts of 1888,
the "Massie law" passed February 12,
1889, and which went into effect May 1,
1889. To be specific, the amount collect
ed under said law was S131, ,S11.63 Con-
cerning the "Massie law the Secretary of
State prom ounces it success. He says:
"Neither is it oppressive upon corpora
tions. The fees charged for incorporat-
ing are much greater in other States Of
the Union. A corporate franchise is
thing. If the State shares it's
power of eminent domain and it's attri-
butte of continuity-as it does with cer-
tain corporations-it certainly is not
b urdensome to ask dollar of each
thousand of their capital stock for shar-
ing those qualities of her sovereignty
This is especially true in this State
where no annual tax is levied upon COR
porations as such. In other States
larger fees are not only charged when
the charter is granted, but specific taxes
are annually collected"
The financial report of the Office is
stated as follows: at is very gratifying
to report that in financial sense this
depar tment has been of marked value
10 the State. Its receipts have so for
exceed ed its expenses that it may be re-
garded as the most substantial source of
revenue outside of the regular system
of taxation. The expenses of the de-
paPtment have been so arranged that
can report that there will be no def,-
cheney in any of the funds"
The receipts for the Office for the yea.
ending November Is, 1889, were $I43,-
315.13, and the expenses 17,203.62, max
ing an excess of receipts over expenses
Of 1929, 9,411.51.
The Secretary of State, In his recon-.
calls attention to the neceL-
'ity of corporations filing annual reports
IS to their financial condition in his de-
partment; also the reformation neces-
sary in the distribu tion of stationery
and other articles in the General AS
,embly; also the necessity of recording
n the office of the Secretary of State
,opies of leases from one railroad COM
oany to another, copies of traffic agree
nents between railroad companies form