The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1899-02-23
FEBRUARY 90, 1899.
TEN PAGES.
1t Means Much for Montana.

M tana legislature in a number of
years of so much merit or which
means SO much for the future prosper
ity and development of this state as
the bill entitled house bill No. 1872, which
passed the house on Tuesday and the
senate yesterday. The merit of the bill
is attested by the practically unani-
! nous vote it received. In spite of the
efforts of an extensive and most persist
ent lobby it passed the lower house,
where it originated, by vote of IS to
10. and the senate sysst erflay by a vote
of % to 2, the only, members voting
against it being Senators Connolly and
Hannah.
From it's introduction the bill has
been constantly misrepresented by it's
opponents. and it is proper that the
purpose and effect of it should be prop
erly presented. 1t is designed to make
1T possible for mining, railroad, stock
raising. commercial and other corpora
tons in Montaiias to ira risa ct their bust
ness without being tied by the holder of
small number of shares. According
supreme court in the locally celebrated
case of Forester ct al. VS.. the Boston
& Montana company, in which opinion
the other members of the court con-
Cured. the present law of Montana
does not prevent the holder of one share
of the stock of a corporation from
blocking the transfer of any of the
property of the corporation. The opin-
ion referred to holds that the common
law applies in such cases. the provision
being that it requires the unanimous
consent of the stockholders of corpor-
alton to authorize a transfer of any Of
the assets of the company, and that
without this unanimity no transfer can
be made. 1t will be readily seen from
this that property worth millions of
dollars can be tied up by the holder of
one hundred dollars worth of the stock.
20 that the business of the company
cannot be transacted. There have been
numerous instances of the unfortunate
effects of this present law. House bill
1872 provides that a 'two-thirds majority
of the stockholders may, at a properly
advertised meeting, make the transfer
mentioned above. The bill provides
fully and completely for the protection
of the small stockholders, so that in
case they dissent from the action of the
majority they cannot suffer loss. Their
remedy, as provided by the act, is COM
plete and certain.
The Importance of the measure as af-
fecting the interests of the state is APP
parent to any one who considers the
bill and the existing conditions in Mon
tana. Under the present conditions the
only way that a corporation can trans
act business untrammeled is to form a
close corporation. The moment it's
stock is upon the market, that moment
1t becomes possible for man by pur-
chasing a single share to completely
and effectually block the transact of
all business by the company. 1t is to
remedy this unfortunate state of affairs
that the bill that has occasioned 20
much discussion has been introduced.
The decisive vote that it received in
both houses of the Legislature is evil
just by the members who have studied
it, and the practically unanimous vote
is most credita BILE to the members of
the legisla ture.
The report was printed in the Inter
Mountain last evening in a special dis
patch from Helena that the bill is like
ly to be vetoed by the governor. This
rumor can hardly be credited. The bill
is one which will be of immeas ura ole
benefit to the state. 1t will give en-
couragement for the investment of
much more capital in the state and for
the development of properties now nom
productive, whereas money will be Slow
to invest in state where one share of
stock can block all business and tie up
millions Of dollars. The passage of the