The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1903-04-07
REPTHIIC SPECIAL.

REPUBLIC SPECIAL.
Springfield Ill. April C.-AmonE the bills
which have been made special orders for
consideration In the House this weeE is a
measure for the taxation OF the capital
stock OF foreign corTorations-thati IS 20 say
the capital stock Of such corporations en-
ployed in business in Illinois. The appear
ance Of this bill has Cai'ed attention 20 pc
cul!ar condition as regards Illinois corpora
tions. and has developed the rather remark
able fact that the numler OF new Illinois
corporations is decreasing each year Secre-
tary of State Rose says that. unless some
change is made in the p-ese Mt law. the State
OF Illinois will eventually be out Of the busi-
ness Of creating corporations
Because OF the decrease in the number
OF new corporations licensed in this State.
II does not follow that Illinois capital is
leaving the State. or that there IS less of
II employed than heretofore. on the other
hand. during the time the number OF new
corporations has been falling of there has
been an immense increase in the number
OF corporations doing business in the state.
The trouble Is that Illinois corporations are
going into other States to organize. For
this the Illinois law. in fits present form.
offers a premium. While II taxes the capi-
tai stock OF Its own corporations. it levies
no such tax on the corporations OF other
States which do business in Illinois.
REGISTRATIONS INCREASE
The records Of the Secretary OF States Of
fice for the last year show an unusually
large number OF registrations under the for
eign corporations act. The applications Of
corporations organized in other States 10
do business in Illinois are increasing in in
verse ratio to the applications for new char
tiers. The nativity of the corporations ask
ing leave to do business in the States gives
pretty good indication as TO why Illinois
corporations are decreasing in number.
Most of them bear the imprint OF the jack
rabbit Commonwealths OF the West.
Among the new foreign corporations ask
ing to do business in this State. Arizona has
an unusual proportOn-especially for Ter
r1tory that is not noted for superhuOus capi-
tai Almost every other new corporation
whose papers are filed in the Secretary of
States office has its license to live from
that territory. As matter of fact, they
are all Illinois corporations. They have no
property in Arizona; they do no business in
that Territory. and their only connection
with that Commonwealth has been the pay
Inent OF a Few dollars into its treasury and
the securing OF a corporate license.
LIBERAL CONDITIONS.
The conditions under which Arizona Is
willing TO charter a corporation are eN-
SO any two persons in the world may be-
come corporation in the Territory Of Ari-
Zona and be invested with every corporate
power and privilege granted by any State in
the Union or any nation in the world. New
Jersey has very liberal corporation laws.
The Dakotas are broad-minded along this
line Several Of the other Western States
have done well toward the corporations.
But nothing can equal Arizona
Once corporation gets a charter from
that territory, II is as free to exercise the
extraordinary powers conferred upon It as
though II had all the authority OF statehood
itself 1t is required to report TO no one.
1t Is not necessary that II do business or
even maintain an office In the Territory
After II has secured its papers II may go
so far as to dispense with Its agent in the
State. II Is not bound by any law for the
regulation OF corporations at present, and
Its charter expressly provides that II shs1l
NOT be subject TO any regulations hereafter
Fedsp4ed. % I =
Under the Illinois law, the corporation of
Arizona Is quite as sacred as the corpora tion
organized In the State OF New York, which
is regulated. examined and hedged about
with legal restrictions. II is privileged
above the Illinois corporation for the I'LL
nois corporation must report annually, must
observe the antitrust laws. and must pay