The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1895-12-31
VIEW AT AUSTIN.
Austin. pecember 30, lyys.

tons act. for which the Twenty-fourth
legislature IL responsible. is proving trou-
blesonie to building and loan associations
seeking to operate In Texas.
Said subdivision provides that foreign
corporations before they can obtain a
permit to do business In this State must
satisfy the secretary of state that
so per cent. of the authorized capital
stock has been subscribed and at least
10 per cent OF 1t paid In. While building
aud loan association charters usually .au-
thorize capitalization at all the way
| from one to twenty-five million dollars
said capitalization is in most. II not IN
all cn-see, anticipate Stock is so.d on
the INSTRUMENT plan and paid UP in the
course of a certain number of years.
| Practically, building and loan associa-
tons start out without capital stock,
| un.ess a choice assortment OF expectan-
eies can be considered as such. Under the
law as 1t now stands, Secretary of state
Maytield holds that contingent payments
can no, be considered in figuring out the
percentage OF actually PAID In stock.
hence the way Is practically barred for
the further acquisition OF Texas permits
70 do business by foreign building ana
loan associations. Al sorts Of arguments
have been advanced by association attor-
neys TO make him change his mind about
ana page upon page OF type written
btt,, The, ~. i.-'f.,.- -. ~ -,
20 hit building and loan associations
when It evolved subdivision so, but in the
10 rrak., an .,s,,,,i ,,,, l.. ,lsn,, O., -
-. ~ '''e'' i"''''
II has been advanced. however. that
section 50 Is unconstitutional in so much
as 1t is not germane To the act into which
- - ''NN' I'i"t'" anu uieie was some
.a'A recently OF mandamus suits to be
brought to settle that point, and at the
present writing 1t appears that the only
way Tor the building and loan associations
to get hy the sec etary Of state is TO in
woke the ail OF the courts. There is no
question but what the restrictions placed
upon promoters OF corporations by sub
aiNlson 90 should stick. and it is undenia-
"'N proper lnat lncorporators should be
required to have sonnet hing hosidoa ,viud
rs ""t s'''''VuS name 10 ucsH'
BUSINESS On Dut IL is nevertheless a mat
ter for the courts Ia determine whether
1t was the proper lcga. caper to attenpt
10 lay down laws 10 govern the rrnnttnv
If charters through The medium OF the
private corporatlons act mo c,nticu on
said act rccitps that IL rointes 10 the
purposes for which private corpori,tone
may be formed. There is nothing in SAID
fFtft a RD
10 distinguish legislation regulating me
manner Of incofillr railing said rrIyate cor.
poratious, as tho constitution provides
that there ehoul1 be NJ elich op intention
develops - a matter Of fact tho act
setting forth the reduircrieuts TO he sat
| ished before a charter can no Issued is
contention la that suhdivi ian 80 shou:n
article 5GG. chaptor 2, tiilc 20 N the ke-
ytsed Statutes hence the rumors of man.
u''i'uS SUITS
White on tho subject NJ incornor,t,ons
1t is quite in tune ia call attautIon 70
the disproport,on ex,s,iny In the nnt,er
of charter foes ms hc,wcen 1o,,es,,, and
foroipn cornoratlons
Tn rbtnln .bor,er ,-,, ,h. S.a,o a.,
Texas and become -, h,,,,o ,,,s.,,,,,'o,, =
I corpora,io,, is .o,,i,1.d a., ,.,,, - x,s ,,,.
49, -, o., ~, '' ~ rN' uP go i"'
IN" hTTt Slp'op1 Of its capital stock ana
s. for each sub iequcut $1,000. To obtain
a permit to do business IN Texas, foreign
I corporations are required to hand over
/ only 81 II their capital stock docs not ex =
| coed the amount Of sl00ND II ii is over
! them but $50 on Capitalization OF 81
| ESQ., 400 or over they nay fee OF 500,
/ From tho above It wo'I,d appear that do
/ against In SO far as charter ices are CON
ocrncd and that 1t is cheaper TO apply To
I I'M Vtnnet SUI 1T n gnar'et ana tneH
{ ncss within ns bounderles than If is 10
J get charter from the latter in the first
.ls'a nee. IN rs race such policy Is
be 10 ,be strta,s adVanta"e 10 hnve M,
! corporations doing business on It's son
/ no,u Votn",uc charters ipr then theg
and subisct to its ccntroi
-
Local populists arc beginning TO boost
ron, W. ~ hutohisoh' OF san Marcos