Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1902-03-31
For TIE COUNCIL 40 CONSIDER
GEO d. PYPER.
Secretary.

The city Council has been cautioned
by some Of our contemporaries against
granting valuable franchises Without
some fair consideration by way OF re-
turn. This has been touched upon In
special reference to the new proposed
telephone system, particulars Of which
have been given in this paper. The
city Council, before granting the appli-
cation OF It's promoters. took the pre-
caution Of requiring the company seek
ing the franchise TO incorporate before
further action was taken. 1t has been
recently stated that the Incorporation
has been effected.
But 1t appears that the organization
was made, not under the statutes Of
Utah but under those Of the State OF
Nebraska. There has been considerable
inquiry in regard TO the purpose Of this
proceeding. II Is asked Are not the
laws Of Utah sufficiently liberal and
protective 10 encourage companies TO
incorporate here, when they intend to
carry ON their business In this stateg"
The answer Is. Yes, It would seem that
they are ample for any bona fde assoc
citation, 20 which the members have ac-
tually subscribed the amount Of stock
issued TO them and for which they have
paid the percentage required.
AT the session Of 1901 the Legislature
Of Utah made some amendments to the
law IN reference to general corpora
tions requiring a specific agreement in
writing signed by each of the incorpor-
ators, giving particulars concerning the
place, pursuit time Of duration kind OF
officers etc, Of the corporation the
amount OF stock each party has sub
serIbed, the amount Of each share and
the limit OF capital stock agreed upon.
TO this is to be added the oath or af-
iirmation OF three or more OF the in
corporators among other things that
the atlantis verify believe that eacn
party 10 the agreement has paid or Is
able to and viii pay the amount OF the
stock subscribed for by him; provided,
that said affidavit shall not be made
until at least ten per cent Of the stock
subscribed by each stakeholder and not
less than ten per cent Of the capital
stock of the corporation, has been paid
in The affidavit must further affirm,
II the capital stock shall consist in
whole or In part Of property other than
cash, what that property is and what is
its fair cash value Those precautions
were considered necessary for the pro-
lection OF the public by the lawmakers
Of our state
Inquiry into the provisions OF
the incorporation laws Of Nebras-
ka ellcits the Information, that
they do not require payment into
the treasury Of the company lncor-
poraung any sum whatever upon the
capital stock But a Zee Of $40 Is re-
qulred for the fling Of articles OF as
ISOLATION incorporation or consolidation
domestic or foreign. II the capital
stock exceeds 100000, an additional fee
f. required OF 10 cents for each 81 0OO
OF stock. and 10 cents for each one hun
bred words in the articles Is required
for recording them.
The difference between the provisions
OF the law IN this State and those In
Nebraska, may or may not have had
something TO do with the incorporation
Of the company referred to In the lat
ter named State. We presume that tn,
city Council. when II required the In
corporation OF the new company befor,
granting It the franchise requested, haC
In mind incorporation under the laws
OF our own State. This Is for tina
body TO determine: and 1t Is expected
that the council will proceed with du,
caution and with full regard for tn,
interests Of the public, which are al
ways to be held as OF far more import
ance than those Of any private In
dyldual or ASSOCIATION.