Barbour County index. [volume] (Medicine Lodge, Kan.) 1880-current, 1899-06-28
OF CORPORATION LAWS
BY REPUBLICAN, OFFICIALS.

'tO"s &c "OiA 90 OIuCL WISE. lIldG JD6
provisions of the corporation law pass
e6 by the special session of the legisla-
ture of 1898 8, providing for the record
ing of transfers of stock IN his office,
will not be enforced. thereby mott
flying the public that they need not pay
any attention to the provision of the
law. His excuse given is the enormous
amount OF work to keep the records re-
CURED, some thirteen extra clerks.
The secretary says that not a single
statement Of transfer of stock has yet
been filed with him. Would it not be
wise for him to wait till he is so "over-
powered" with work before he threat
ems to suspend law, and throw up his
handsp How does he know yet how
many clerks it will take, and that the
exact number is thirteen?
When the regular appropriation bill
was before the senate committee, Mr..
Clark was consulted concerning his Of
fee, with the result of two extra clerks
and an increase in salary for all the force
in his Office. Why did he not at that
time make it known that an extra force
was necessary to keep up the work in
his Office? He knew at that time of the
provisions Of this law, but was he rely
ing upon Attorney General Goddard to
knock all the special session laws off
the statute books? Then again, why
select this law, and the particular pro-
vision mentioned to be unlnforced be-
cause Of "lack Of force" Why not en-
force this law aud let others go? 1t is
rumored that certain gentleman from
Kansas City who came to Topeka In
May and stayed some three weeks max
ing the secretary of states office his
headquarters, was instrumental in hav-
ing the secretary make the public an
nouncement about the non-enforce-
ment of this law. Are the packing
houses, stock yards, and other large
concerns OF Kansas City, Kansas, inter-
ested in the non-entorcement of this
law? The tax records of this state show
that Wyandotte county with all her
wealth, population and large concerns
pays less tax than Shawnee county.
Let US examine into some of the pro-
visions Of this law and perhaps we can
find solution Of the secretary's atti-
tude.
This act was passed at the special
session to correct certain abuses in re-
gard to the corporation methods of or
ganization and transacting business,
and among other things it provides that
any transfer Of stock to be legal and
shall be certified by the presi-
dent and secretary of corporations to
the secretary of state and by him re-
corded i'll his Office. This statement
must show the postoffice address of par
ty selling and party buying, the amount
paid, the par value, and The amount
paid into the corporations treasury on
each share of stock, and the liability of
stockholders does not cease for 80 days
after such transfer is so recorded IN the
Office Ut secretary CT state. Railroads,
insurance companies and banking COM
panies ore not included in the provis-
ions of this report and record, because
OF special laws now governing these
The objects of these provisions are,
first, to provide public registry where
the public can ascertain who the stock |
holders Of corporations are and the
amount held by each stakeholder Sec.
ond, to assist tax assessors in assessing |
the value of corporate interests, and |
the name Of the owners: and third, to |
enable creditors of corporations to find |
who the stockholders of corporations
are when such stockholders become liza
Die under section Is of this act, or what
s known as the double liability act.
Under the law as enforced prior to
The passage of this act the records of
stockholders of corporations and all the
secrets in connection with corporation
business were kept by officers of the
and when any company
allied, for any reason, it was customa-
y for the books to disappear, thus
making the double liability law fail
Ire. What creditor could collect under
his law ii he could not find who the
stockholders were, and the amount
leld by each. Another plan was to
transfer stock, when the COM
,any was about to collapse, to some ir-
'esponslble person. and thus avoid the
liability. Under the pro.
Tisions of the special session law the
cannot escape this liabili-
y for 80 days after the statement of
transfer is filed with the secretary of
tate.
Anyone who is familiar with the ease
With which stockholders escape the tax
assessor under the old plan can readily
understand what an advantage public
of stockholders will be to
IN honest assessor who is willing to do
lis duty. The annual statement re-
Iuired by this law Is not sufficient for
he reason that transfers may be made
after such statement is
made and the annual statement would
70 useless so far as showing who owned
he stock.
Under the old system boom corpora
ions could organize, and by securing
he names of a few great" men, gener-
lily by gift ofstock, would 60 forth