The Saint Paul globe., 1900-05-24

in which the business of such corporation
is located and the county attorney shall
without delay proceed against the COM
pany as the law directs
The secretary of state says that he
has only reported contraventions of the
law to county attorneys latter he has
been notified of violations of the law
But the law says that it is the duty of
the secretary of state Immediately after
October first QsD, 1S99' to report all vi
olations to the county attorneys-that is,
all the violations at that time, and not
wait to be advised" Of coHtraventions,
although he may receive and act upon
such outside advices 'as often thereaft-
err as he may be advised
1t appears that the secretary of state
did not perform the duty imposed upon
him by this law Immediately after Oct
o5er 1st 1899; and it further appears that
the advices as to the violations of the
law which he has since received have
not been very numerous or have not
been acted upon.
The governors letter to Secretary Of
State Berg, if Mr. Berg is Jealous Of
his dignity and resents the interference
of another state official in a matter Pc
culiarly pertaining to the department of
state, may now be regarded as an ad-
vice from Citizen John Lind to the hon
orabIe secretary of state Of and for the
state of Minnesota that 2S5 foreign cor
porations doing business in the counties
of Ramsey Hennepin and st. Louis, in
the state of Minnesota, are doing busi-
ness contrary to the laws of the state
and in contravention of chapter So of
the General Laws of Minnesota of 1885.
True section of article OF the con-
stitution of the state of Minnesota says
that the governor may call out such
forces to execute laws" and that ''he
shall take care that the laws be faith
fully executed" but in this case the
governor does not appear 10 have made
assertion of any powers which the con-
stitution may confer upon him, but in a
friendly spirit to have offered to the sec
retary Of state his cheerful cooperation
In securing the compliance of foreign
corporations doing business in Minnesota
with the state laws.
There is TO valid reason for the secre-
tary of state becoming. indignant over
the action of the governor. who, If he
had wanted to be unpleasant, possessed
ample powers and cause to make it very
unpleasant for state officers who do not
cause those laws, with the execution of
which they are particularly intrusted, to
be observed.
The position taken by Governor Lind
in the question of the taxation and Ii
cersing Of foreign corporations is the
same today as it was in January, 1899,
when in his Biennial message to the
legislature, he said
akin to the question discussed, but
separate and distinct from 1t, and not IN
QependenU upon Its disposition, IS
the subject of licensing and taxing corpo-
rations By wise and well considered
legislation on this subject you can obtain
an amount of revenue that Will more than
make up for the proposed reduction III the
tax levy, and which will. with other cor
DOration taxes, in the course or time IN
crease the permanent revenues OF the
state to such an extent that direct tax
for the revenue fund can be dispensed
with. Our law now requires the payment
of a minimum Incorporation fee of $50
to obtain a corporate charter, and, in adj
ditiOn, one-tenth of L per cent on the
in excess of $50,000. This
provision is bringing large sums OF money
into the treasury annually 1t can and
should be extended to foreign corpora
tionS doing business in this state. This
would only be a measure OF justice TO
ourselves and 20 our own business inter
ests. The license fee should be uniform
with that imposed on our domestic cor
pOrationS, anu may then be collected on
the entire capital of the foreign corpora
ton, or on that portion Of the capital en-
gagged in business in this state, as IS the
law in New York. Either course is valid
and has been sanctioned by the courts of
last resort, b0th state and federal. Much
OF the time OF our courts, especially in
the rural districts, is occupied by Htiga-
ton brought by foreign corporations,
who in the past have contributed nothing
to the expense of government This
license fee, like that collected upon the
issuance of a domestic charter, would be
payable only once.
The governor as the foregoing shows
clearly, at that time advocated the pas
sage of a measure similar to that which
was subsequently Incorporated il bin
which became a law as chapter SO of the
Laws of 1889. for two reasons: First as a
measure of justice to home corporations;
and second, for the purpose of raising
revenue for the state in fair and
equitable manner The Someryille law. Us
passed, received the governors signature,
although in some respects it fell short of
his wishes and views. It's construction
was crude, but as it affirmed the prin
ciple for which the governor had oontend-
ed. it received his signature.
Despite the crudity of the act. it has
been proved that it is operative and can
be enforced by state official who wish
es to perform his plain duty and enforce
the laws. Under the provisions of this
so-called Somerville law, the state in
surance commissioner, j. A. OShaush-
messy, has collected from foreign insur-
ance corporations organized for peC,lniary
profit and doing businesses the state OF
Minnesota, the sum of $1l, 200 in license
fees. This IS in addition to the fees and
other payments all insurance companies
are compelled to make under the senefal
insurance laws OF the state. Mr..
O'Shaughnessy lid not wait to be advised,
but like certain distinguished federal
officeholder ''he seen his duty and he
done it."
Now if the honorable the secretary of
state will arrange matters 50 that he can
spare the time to act promptly upon tie