The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-08-05
He II Determined that All Foreign
Companies Doing Business I'm In
diana Must Comply with Law.
LETTERS SENT OUT TO LAWYERS
THEY ARE ASKED TO ADVISE DE-
LINQUENT CONCERNS TO PAY UP.
Prosecutions Strongly Hinted in These
EpistIes-State Derives Large Reeve
nues from This Class of Business.

Secretary of State Daniel Z. Storms Is
sending out several thousands of letters to
lawyers in every city and town in the State
asking them to have foreign companies they
may represent in Indiana comply with the
foreign incorporation law, which was passed
in 1901 and amended by the last General
Assembly.
Four hundred and sixty-ive foreign con-
Germs that do business in Indiana have filed
articles with the secretary of state in COM
pliance with the law, but 1t is known there
a good many such companies in the
State still which have not complied with
this law and are really doing an illegal bust
ness.
Following is Mr.. Storms's letter in part:
Special provision was made by the recent
Legislature for the enforcement of the for
eign Incorporation law by this department,
and 1t is respectfully suggested that If any
of your clients come within it's provisions,
by calling their attention to the matter you
will confer a favor upon them and save
me an unpleasant duty"
Just what Secretary Storms may mean by
unpleasant duty is not known, but this
statement i'm his letter may indicate that
he is planning to take the means provided
by the law to have its provisions enforced.
The law provides a fine of not less than
s1OOO for all companies that do not comply
with the law and continue to operate in In
diana. Secretary Storms has never
forced this provision of the law, and Secre-
tary of State Hunt, before him, never took
this means to put the law into complete
operation. but 1t is thought that if many
companies that have done business ever
since the foreign incorporation law went
into effect-March 19O1-and have shown no
inclination to recognize it, do not comply
soon the secretary of state will take the
extreme means and prosecute all of such
companies he can get cases against.
STORMS HAS A WEAPON.
Since the last Legislature amended the
foreign incorporation law, making the en-
forcement of the law a special work of the
secretary of states office, Secretary Storms
and his deputies have been able to do much
to force all companies to comply. Union B.
Hunt. secretary of state. hampered
in this work by the Legislature having
made no special provision for the enforce
ment Of the law.
Since Jan. l. 1908. just ninety-two COM
panies, including three that filed articles
yesterday, have legalized their operations in
of state showing what their total capitaliza-
ton amounts to. what part Of it is employed
in Indiana, and by paying a certain fee on
that part of the money invested in this
State. Most of these companies are the
smaller foreign corporations in Indiana, and
in the aggregate the capital stock they have
invested here will not amount to much more
than 81 100000, it Is thought. In 1902 ninety
nine companies complied with the foreign
incorporation law, representing about 49,,
100000 invested in this State. From March,
end of 1901, 274 companies complied. Among
the concerns that came in the first ten
months the law was in operation was the
Standard Oil Company, the American Win
dow Glass Company, the American Box
Board Company, the American Tin Plate
Company and most of the other trusts that
have plants in Indiana.
The fee to the secretary of state is based
on the proportion of the capital stock repre-
Sented by the property located and the
business transacted i'm this State. Where
$40, and for all over $40 the fee is
one-tenth of l per cent. of the capitaliza-
in 1901 were enormous, amounting in sew
eral cases to many thousands of dollars. In
the event that al; all the the business is done in
basis upon which the fee is paid.
FEES ARE ENORMOUS.
Altogether the fees from the 465 foreign
corporations that have complied amounts
to about $4,000. The fees in 1902 were
about $500. and 1t is thought that they will
reach something like $4,000 this year if the
companies continue to file articles as rapid
ly as they have been doing.
Other States that have foreign corpora
| ton laws are California, Missouri, Illinois,
Ohio and Colorado.
Deputy Secretary of State Grubbs says
that he does not think 1T Is so much a spirit
to evade the law as ignorance of it that has
caused so many companies to fail to COM
ply with the foreign Incorporation law. He
says the work of enforcing the law has
been made much easier by the action of the
last Legislature making this work a special
| department OF the secretary of state S
| Office
The following foreign companies doing
business In this State filed articles with the
secretary of state yesterday, in compliance
with the foreign corporation laws:
| Riverside Oil Company, Maine; $4,000 in
vested in Indiana.
Central Coal. Oil and Gas Company,
| South Dakota $4,000 invested in Indiana
Goat Lymph Sanitarium Association, ILL.,
| nois; $4,000 invested in Indiana.