Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1901-12-09
IOWA CORPORATIONS.

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IOWA CORPORATIONS.
To the Editor: The presidents mes
sage concerning trusts offers sugges-
ton to the Iowa legislature to revise its
corporation laws. The old Greeks inn
posed the severest penalties upon any
one who slnuld presume to Introduce a
new word into their language and it
would seem sometimes as If punish
ment should be inflicted upon any one
who should propose new law to be
added to our voluninous statutes. Ex-
cessive legislation upon some subjects
may result in neglecting others. The
Iowa legislature seems to have. acted
alb initio. as If they We're the first to ex-
pertinent in corporation legislation and
that there We're no precedents in other
states to study or to follow. New Jer-
sey and West Virginia claim to pay the
expenses of their state government from
corporation revenues. In West Virginia
the list of interpretations is book about
half the size of their code and each
corporation doing business outside the
state pays $50 annual license, besides
the 40 cents on each $1,000 of capital
stock Originally paid up as an incorpora-
ton fee.
In New Jersey the original fees for an
Incorporation are 20 cents on each $1,000
OF capital stock. Plerpont Morgan gave
his check for $4,000 to incorporate the
$500, 900 company to absorb the
u, lv-,sn n Tn,
would have been 100000 In these states
the liabilities of the banks and all the
other corporations are unlimited as a
rule
What reason can there be for permit
ting unlimited liabilities to the Iowa
banks and then restricting all ether
corpora lions, e5cept railroads. to liza
bility of two thirds OF their capital
stock. Again why should the state ex-
Grcise most careful supervision over
the banks and pay no attention what
ever to the other corporations. The
banks are examined frequently by au-
thorized officials and are required to
publish In the newspapers the result OF
such examirat ton.
More stock holders, II not creditors.
are interested in the other corporations
for pecuniary profit than in the banks
and yet they are sent out as If the state
had done its full duty In giving them
birth whether they prove an honor or 9
disgrace to their parentage. There is no
reason why the two classes of corpora
lions should not be treated in some
what similar manner Perhaps an otti-
cial examination of the ordinary cor
poratlon might not be necessary often
err than once a year and there 3 the
same reason for giving publicity TO the
result of this examination as II. the
case of the banks. The little states of
New Jersey and West Virginia are
probably receiving ten times as much
revenue from interpretations as the
state OF Iowa and yet the public do not
seem to be injured and do not COM
plain Altho Indebtedness is not limited
the number of failures under the char
tiers Issued by these states Is. pro rata,
probably less than under Iowa charters.
Iowa legislators have MT been good
financiers In the management OF corpor-
atoms.
1t is a we'll known principle that
thing can be sold for at least three
ments as for all cash in advance. For
instance to- incorporate for 100000 for
twenty years in West Virginia costs $40
and fling fees The license tax payable
annually is $50. At the end of twenty
years the state has received $l,040 while
the state of Iowa would receive 500 all
in advance. On 100000 incorporation
the state of West Virginia would re-
ceive 5000 fees and $1,000 license, and the
state OF Iowa would receive $500, but
the liberality of the charters OF West
Virginia as to indebtedness and other
management makes the greatest differ
ence This state was the pioneer in
these liberal charters but now Delaware
and New Jersey are competitors.
The corporation laws Of West Virginia
are the most elaborate and voluminous
of all her legislation and should be most
carefully studied by Iowa legislatures
as they have been exceedingly profit
able to the state.
Perhaps Iowa should not go over en-
tirely to the liberal charter policies of
the states named, but her laws should
be so amended as to secure the greatest
possible revenue from interpretations
that is consistent with public safety
and with promoting their increase.
Whatever may be thought of the So
called trusts, the legitimate incorpora-
ton is the popular method of doing
business and has come to stay. With
out making them complicated or volun1-
nous our Incorporation laws might be
reconstructed as follows:
l. Limit the Indebtedness to two or
three times the capital stock.
2. Make the annual license fee 20
cents on each $1,000
8. Make the annual licenses $40 for
each 100000 or less up to limit of
500.
4. Require an annual financial state
ment under oath to be filed with the
designated state official which may be
published in some newspaper.
S. Provide for such official examina-
ton within the state as may be deemed
desirable.
6. Forfeit the charter on a three
months failure to pay license or file
sworn report.
Z. Allow foreigners to incorporate in
the state with an attorney to accept
service and other suitable provisions.
8. It may not be even necessary to
forfeit charter for non user or for fail