The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1902-07-22
Supreme Courts instructions
to the Book Trust.
Must Comply With State Law or
Get Out.
TAKES A NEW TURN.
Protest Filed Today With the
State Charter Board.
American Book Company Charg-
ed With Corrupt Practices.

The American Book company appears
to be up against ID serious proposition.
Last night Chief Justice Doster and
Justices Smith and Greene, before Wnon
the custer proceedings against the com
pany in the supreme court were argued
issued an order of custer prohibiting
the company from operating IN the
state until it obtained PERMISSION
through the state charter board IhlS
morning an opinion was handed down
in the case, and this was followed py
the filing of protest with the charter
board by County Attorney Galen Nlcnf
OILS protesting against the admission or
the company on the ground that-1t Is
guilty of bribery and corruption, ana
offering to introduce evidence IN sup
port of this assertion.
The formal order of the supreme court
ousting the company from the state is
follows.
TT is ordered that the defendant, the
American Book company, be ousted
from the exercise of the right to tran
sact business as a corporation IN the
state of Kansas until its compliance
with the statutes of this state providing
for the making of an application to the
charter board of the state to do busl-
ness, and the filing of a certified copy
of its charter or articles of 1ncorpora-
ton, and statement of the n alters and
things required by section 2 of chapter
10 of the special laws of 1893 and the
payment of the fees required by
law.
And it is further ordered that the
prayer of plaintiffs petition asking for
the annulment of the contract made by
said defendent with the state text book
commission be denied
The quo warranto proceeding was
brough in the name of County Attorney
Galen Nichols at the instigation of
Crane & Co, and the decision of the su-
preme court is what was sought except
as to the annulment of the contract. The
court in its opinion handed down today
says that the annulment of the contract
is outside of its jurisdiction in a quo
warranto proceeding. The opinion is as
follows:
I'm this case the plaintiff seeks to
Gust the defendant from the prosecution
of the business of selling and contract
ing for the sale of school books, and to
annul contract recently made by it
with the state text book commission for.
supplying certain school Books. The
grounds of the application are, that the
defendant as foreign corporation, has
not complied with chapter ten of the
laws of the special session of 1885, and
the amendatory statute of 1901, emitting
1t to do business in the state.
1.-The company has complied, although
irregularly, informally and out Of time.
with the law, except as to section two
of chapter ten of the laws of 1898. AS
to those particulars in which compli-
ance has been attempted, but not tech
nically executed, the statute is direc-
tory.
Section two, just mentioned, requires
the making of application to the
charter board and the furnishing of Ger
tain information to such board, These
things it must do in order to acquire
the status of a foreign corporation
authorized to do business here A stat
ute requires the doing of these things
by foreign corporations seeking to do
business in this state. Inasmuch as the
defendant had been doing business in
this state before the enactment of the
law If contends that If sock
ing to do business here. 1t contends
that the words seeking to do business,
apply only to corporations which had
not heretofore done business. but desired
to do it in the future. This is an er-
roneouS view.
1.-The statute does not mean to hus dis
criminate in the requirements of section
two above adverted to, and in other like
matters, between foreign corporations
which had heretofore been doing busi-
ness here, and those which might there
after apply to do business
THE claim that because the defendant
company is engaged in interstate trade
1t cannot be subjected to the regula-
tions of the statute of 1898 is untenable.
1t may be that it cannot be excluded
from doing interstate business here, but
1t can be laid under such reasona BILE
conditions as the fling of it's charter.
the payment of charter fees, the making
of reports and furnishing of informa-
tion concerning it's business, the ap-
of process. etc. These are not burdens
on the company; they are measures of
justice and protection to the people of
the state.
1.-The plaintiff cannot in this action
have an annulment of the contract al
ready made. 1t may be that there are
equitable circumstances forbidding the
cancellation of such contract 1t may
be that compliance with the law by the
defendant hereafter will retroactively
validate the contract in the event it
should now be invalid However, inde-
pendently of such consideration, do
not have jurisdiction over that branch
of the case. Our jurisdiction is in quo
warranto alone. A grant of that, juriS-
dictiOn does not authorize the joinder
OF cause for custer, of another one for
the annulment of contract merely be-
cause the subject matter of the latter
possesses incidental connection with the
subject matter of the former.
The defendant will be ousted of its
claimed rights to do business in this
state until it complies with the require
ments of the law. but the prayer of the
petition for the annulment of the con-
tract will be denied
Immediately following the handing
down of the opinion. A B. Quinton
attorney for Crane & Co, secured the
protest from County Attorney Nichols
and filed it with the state charter board
.'On behalf of the state desire to re-
sist the granting of a certificate of au-
thority to do business as a foreign cor
poration in this state to the American
Book company for the reason:
First-That said company has beer
doing business in this state in defiance
of the antitrust laws of the state o1
Kansas.
'Second-Said company has beer
guilty of bribery and corruption ano
other illegal practices in the state anc
has used money improperly and cor
ruptly for their own purposes and ends
and against the laws and dignity of tbs