Santa Fe new Mexican. [volume] (Santa Fe, N.M.) 1898-1951, 1903-01-28
ANNUAL REPORT
OF SECRETARY
A Large Increase in the
Number Of Charters
Granted.
MANY AMENDMENTS NEEDED
Recommended That No One Be
Permitted to Engage in
Banking Without
incorporating.

AAVVA toAAH6
The report of Territorial Secretary ].
w. Reynolds for the calendar years
1901 and 1902, has been submitted to
Governor Otero and in it are important
recommendations for changes In the
existing laws. The secretary says as
the law requires him to canvass the
vote for members of the Legislature
from districts composed Of more than
one county and issue certificate of
election, the Office should be informed
as to who are nominees and the legisla-
ture should take such action as will re-
quire the county committees to forward
to the Office before election day cer-
titled list Of the nominees for the sew
eral offices.
The greatest volume of business
transacted in any one portion of the
department is from the filing of incor-
poration papers. The two years just
closed show a material and encourag-
ing increase. During 1899 and 1900
there We're formed 207 companies with
an aggregate authorized capitalization
of $139, 9,543,500, or an average of $675,OOO
for each company. The fees collected
for the territory amounted to $11,325
During the years 1901 and 1902 there
were filed 1856 charters with an aggre-
gate capitalization of $780, 343, 1926, or an
average of about 100000 for each COM
pany. The filing fees were $21,969, or
an increase Of nearly 100 per cent over
the fees for the two years previous.
The corporation law is liberal and
invites outside capital to incorporate in
New Mexico. One of the most attrac-
tive features is that corporations pay
no annual or franchise tax in this ter
ritory. The law relating to filing fees
as passed in 1899 Is unbusinesslike and
unjust in the classification. For ex-
ample If a company organizes for min
ling purposes with capital of $1,0Oo,O0O,
the filing fee is $40; the same amount OF
capital organized for irrlgating lands
must pay fee of $110, while the same
amount organized for manufacturing or
industrial pursuits must pay fee OF
| $4O6. A law that is uniform in its re-
quirements should be passed as the
secretary is now compelled to draw the
line between the different classes OF
companies and subjects himself to
complaints and the liability of an ac-
cusation Of discrimination. There is al
so demand for law that will permit
the consolidation of companies engaged
In the same or similar lines of business
At the present time railroad companies
are the only ones permitted to consoli'
date and the law should be made sc
broad as to cover all lines Of business
The present law regarding the ad'
mission of foreign corporations should
be amended so as not to require tht
filing of certified copy Of the genera
corporation law of the state unde
which they are incorporated. 1t is rec
commended that the law relating t.
building and loan associations be amen
ded in such way that foreign associa
tions can do business in New Mexico
under no more onerous burdens thai
are applied to domestic organizations
The conditions prescribed now f1nan
cially prohibit any foreign association
from doing business in New Mexic
and while this is an advantage to loca
organizations, the people as a Who'll
derive no benefit from It. A fine shoul
be provided to be collected from com
panies and corporations doing busines
lin the territory without first complyin
with the Incorporation law. There is n
necessity for the law requiring all neN
corporations to publish a certified cop
Of the articles of incorporation in tn
county in which the principal Office
located, but If the law is to be permit
ted to stand, 1t should be SO amende
as to specify how many times such nj
tice should appear. A law is neede
| covering the registration of trad
names, trade marks and labels.
There is a steady increase in the RI
sources Of the banks of New Mexic
1.-The banking laws should be amende
, in a few particulars. Banks Of discoui
now report to the territorial treasure
and savings banks and trust companit
report to the territorial secretary. I'll
reports of both should be made to ii
same person. The law provides for 9
examination Of saving bank, Il
which 800 is paid by the bank, but it
not enforced because it is a discrim1n'
D ton in favor of bank of discour
The necessity for the appointment of
!, travelling auditor to examine the BAN
a Is dwelt upon strongly. The secretal
}. also recommends that monetary PEI
1 atty be imposed on any individus
l. firm or corporation who shall recei'
! money on deposit, whether on certi
). Gates, promissory notes or subject
check, without Incorporating under Il
banking law No banking should
: done in the territory except by leg
/ authority and under legal supervisio
r During the two years, commissio
+ were issued to 437 notaries public, al
. many Of them are unable to purchase
!. fun set Of statutes as required by Ia
4 They therefore remain In Ignorance
their powers, duties and legal rate