Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1904-09-14

THE FEES RUN UP TOO HIGH
Many Old Companies Must Soon Re-
incorporate-New Law Placing No
Limit on Fees For Large Corpora
tions Makes Cost Of New Charter
Enormous.
Special to Times-Republlcan.

Special to Times-Republican
Des Moines, Sept. 14.-There are
several interesting things in connection
with the suit to upset the Iowa 'aw for
arge fees for privilege Of ineorposa-
.iun. = he suit is brought in the name
IF a gas company formed at Sioux City,
but Il is the belief of officials tn 1T !he
SUIT represents large humber of cor
re, at:,ns desirous Of overtur.tng tile
law and evading large payments in TIE
future A goo6! manv corporations are
:inling their corporate existence near
Ing an end and they will be unl"r the
recessity of re-incorporatlng. Wheh
tbs IS done they must pay the larger
fsss e:.acted for privilege OF lnco;r Ia
ton. The last year large proportlon
of the fees received by the state came
from the old companies They are
treated exactly as If they were ehtlte-
ly new. Now it so happens that When
these corporations were organized they
all went in on the flat rate of 50 each,
and a company which lived for twen-
tv wears on IS charter may now have
to nav $4,000 or $4,000 for continuing
another twenty years. Inc Ola lncor-
laws were lax. All tnat was
necessary was, to prepare the papers
a nd nav $5 and there were no questions
asked. Nobody had any right 10 ques-
ti,n the character of the business done.
E.,rst came the restrictions In regard
n hanks and later those in regard 10
other companies. Now larger fees are
aYacted. But it is highly improbable
that the Sioux: City company Would go
into a litigation which means vast ex-
pensc lust fol-. the sake OF making an
effort to secure return OF a small sum.
The claim of the company that the zee
was exacted by extortion will never
have any weight in the case. Tne soie
n,,rr use is to break the law so that IN
RI. future the large fees will not pe
paid.
Secretary Of state Martin, who has
hoen out of the state, called attention to
the fact that it is not the ameno"e,ie
Of the Twenty ninth general ASSEMBLY
bu. thar of the Twenty seventh wn1cn
is attacked. The Twenty seventh gen.
era1 assembly raised the limit from
$3.50 to $4,000, and then the later leg
islature took the lid clear OF The Dill
in the Twenty seventh was that OF the
nresent state treasurer, then Senator
Gi,bertson. He got the bill thru the
senate with the two-thirds majority
but it did not fare so well
in the house. When he got the bill
over to the house he interviewed MEM
hers Of the house committee on corpor-
atoms and they all said they were for
II. hut the committee proceeded
to kill the bill. He was astonished. but
pot w. l.. Eaton, who was a member,
hut had not been present. to prepare
a minority report, and they got more
than a majority Of the committee to
sign the minority report, and the bill
was passed. Speaker Funk was in the
chair and declared it passed. But If
the law is knocked out, then in all
the latter amendment will
also go by the boards.
r Is by no means certain the courts
will hold that the bill required two
thirds vote to pass. The section OF
the constitution which requires the
two-thirds vote refers to the power to
"amend or repeal all laws for the or
vanization or creation Of corporations"
The fee question is something sep
arate and apart from this. The Claws
for the organization OF creation OF cor
porations'' have not been amended or
altered at all; only that the fee has
been raised by which persons planning
to organize may take advantage of the
laws already on the statute books.
This will be the line of argument In
defense of the present law and in op-
nosition to the claim of Congressman
walter l. Smith that the fee amend
nent required two thirds vote.
AS to the sums which might be re-
o,,ired to pay all claims for overcharge
In case the courts should take the view
that the fee limit is still $780, no.
body can tell but some big fees would
he returnable The Rock Island fee
was the largest which aggregated a
hout s130.000 It has always been
matter of surprise that the Rock IS
land paid this fee SO uncomplainingly
and without making any elloIl W Sc
cure incorporation without overturn-
ing the law. But it is explained that
the Rock Island was in hurry just
then and there was desire to avoid
ANYTHING that would arouse the i'll will
of any state officials.
At the State College at Ames the
study of methods of reaching the vall-
alton of railway properties for taxation
purposes will be taken UP the coming
wear under the direction of Professor
Il. French. This is in addition to the
course of letters to be given at the col
iege by prominent railroad men or
topics Of interest in this connection.
It has been suggested that some pro-
vision should be made for publication
of the results of whatever Of research
there is at the state college and uni
yersity, and the state should make
provision for publication of annual vol
urnes or a quarterly review containing