The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-07-07
IA CHANGE OF BASE
INDIANA MANUFACTURING COMPANY
VOW OF WEsT VIRGINIA.
Months Ago the Stacker Com
pany incorporated There with
Capital of $1.5OO,0O0.
STIR AMONG OFFICIALS
TIVE l. TAX FIGHT AGAINST THE
COMPANY RECALLED.
Arthur 4. Mckain. a stockhoider. Says
New suit VIII Be Fought to
Highest Court.

Il NA&NA0A TO- RAO1oht ~ l46nI NEEltINdI
the interesting fact that the Indiana Man
ufacturirg Company of Indiana has for
some months been out of existence. all Of
its property having long ago been trans
/ ferred to the Indiana Manufacturing Com
pany Of West Virginia. This fact came out
wien the company presented articles TO the
secretary of state in compliance with the
law passed by the last Legislature requir-
ing foreign companies doing business in In
diana to file articles here and pay a stipu-
lated fee based on the amount OF capital
represented in this State.
The new Indiana Manufacturing Company
states in the afidavit accompanying it's
articles from West Virginia that its capital
s. S1.5O0.OO0. The capital OF the old company
of the same name was only 10000. The
incorporators Of the new company are VIII
liam H. Smith and William a. Taylor,
members of the South Meridian-s.ree
wholesale leather firm of Taylor & Smith.
this city; William w. Buchanan. Of the law
department OF the Bowen-Merrill Company.
this city; Augustin Boice. an Indianapolis
attorney, and his son Parker j. Boice:
Charles K. Sloan. treasurer. and William
Seburn, superintendent of both the old and
new Indiana Manufacturing companies. The
articles state that the company is or
ganized to introduce. manufacture and sell
patented or unpatented agricultural or 9TH
er machinery, especially pneumatic straw
stackers. and TO acquire patents and in
ventions and sell bonds, MORTGAGES, etc.
The principal office and place of business
of the new company. as was the case with
the old. is in Indianapolis. in the Stevenson
building.
SURPRISE AND INTEREST.
The presentation of these articles created
great surprise and interest among state Of
ole u-h1 hnx-a - -.-.- -o.& g.
lowed closely the course of the famous liti-
cation between the State of Indiana and
the Indiana Manufacturing Company grow
ing out of the c~ompany's contention that its
capital stock. being based on letters patent
of the United States. is not subject to tax
alton. This litigation went TO the Supreme
Court of the United States, but that court
dismissed the appeal on the ground that the
amount in litigation was not sufficient TO
give the court jurisdiction. Since that de-
CisiOn a new case has been brought, based
or new accommodations of taxes due,
amounting to about $4,000. The Indiana
Manufacturing Company has brought a new
suit in the United States Circuit Court here
asking an injunction against the taxing Of
ficialS from assessing and axing their cap
itai stock. The new case will ne argued
Wednesday of this week before Judge Ba-
ker. Attorney General Taylor appearing for
when Secretary of State Hunt received
the articles of incorporation from West Vir-
ginia yesterday he did not file them. for the
reason that he thought the attorney general
should have an opportunity to examine the
interesting document before 1t was placed
on record. One of the statements in the
articles that has aroused considerable COM
ment is that the capital represented In In
diana is only nominal. In view of the
statement in the document that the COM
pany's office and principal place of bust
ness is in Indianapolis. il is thought strange
that only q nominal amount OF It's capital
should be represented here.
A. A. MKAIN'S STATEMENT.
Arthur A. McKain. one of the original
incorporators of the Indiana Manufacture
ing Company of Indiana. and a large owner
of stock in the new company. was asked
last night for a statement of the reasons
for organizing the West Virginia company.
Our purpose in Incorporating under the
Ia VS. of West Virginia was twofoldS said
Mr.. McKain, zone reason being that we
desired TO know definitely what we have
to do. which is possible under the laws of
that State. and another reason being mat
we desired 10 escape the apparent hostility
of officials in our own State.
When Mr.. Mckain was informed that the
West Virginia articles show that the new
company signed articles Sept. 10. 1900, and
filed them May l, 1901. he expressed sur,
prise. Why. We have been Incorporated
under the laws of West Virginia at least
twelve months" he declared. That must
be a clerical error. / guess 1t should read
that we signed articles Sept. 10, 1899. and
NE LUtLL MAY l.. ~
Mr.. McKain was asked what bearing the
formation OF the new company will have on
the litigation in which the old company is
engaged.
Our action in transferring the property
OF the old company to the new will have no
eject whatever on penang htigation, he
said. The Indiana Manufacturing Com
pany OF Indiana will continue the suit II
& brought and carry il TO the Supreme Court
OF the United States If necessary. We shall
continue to maintain. as we have always
maintained. that United States patents are
not taxable. and that our capital stock,
being based on such patents, Is not subject
10 taxation. The State OF West Virginia
does not pretend that Ii can tax patents.
OF course. now that We are a West Vir-
Finia corporation. If any such right to tax
exists II belongs to the State of West Viz
/ glnia, not 10 the State Of Indiana. If our
SUR Is decided against US. however, we
VIII pay the back taxes, Dut ms state
can IN the future only assess us on what
personal property we have here, and il may
also assess whatever stock OF our company
is held in Indiana. We have no desire to
escape the just consequences of the acts of
ne cid Indiana Manufacturing Company.
Whatever they may be found by the courts
COMBINATION ABANDONED.
] The suggestion was made to Mr.. McKain
|, that in view OF the greatly enlarged capital
o. the West Virginia company the impress
sion has been made that the new company
might have something 70 do with the COM
b|inatiou of thresher manufacturing con-
Germs that he (Mckaia) was attempting
some time ago 10 effect.
abandoned that plan OF forming a
tlresher combination some time ago. said
air. Mckain. and this company has Moth
ing Whatever 10 do with II. Our idea in
making the new capital Sl,5o0.0oO was sim
Ply 90 give "a more true representation OF
TIE value OF the cOmpany's holdings in the
way OF patents and inventions. We are now
paying a quarterly dividend Of Ia per cent.
on the new capital"
asked as 10 where the stock or the new
company Is held principally, Mr.. Mckain
said that he greater part OF II Is owned
bv Indiana parties. He said Mr.. Joseph
4. Sharpe. jr.. Mr.. Chester a. Bradford
end he himself own "A considerable block
OF The stock. Il do not own as much or II
IS I would wish" said Mr.. Mckain, for
consider Il a very valuable stock. About
10000 OF the stock Is held In Massachu-
setts. some OF IL in Michigan, and some IN
Ohio"
SIR. McKain said that the company has
practically abandoned the manufacture OF
cyclone pneumatic stackers. The impOr-
lance Of the license business which we are
doing. ne said. will be better apprecl-
sted when IL II stated that we never manu-
factureG over coo stackers In a year. Where
as our licenses are making 1000 a year
OVERWHELMING BUSINESS.
Mr.. McKain said he first became inter
ested in the pateDt-buying business through
the acquisition OF an interest. in James
Buchanan's invention OF the penumatic
A.