Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1905-07-20
STATE NAY GET PAY.
Secretary Martin Begins an In
vestigation That May Ill
crease Revenues
AS TO FOREIGN CORPORATIONS
Belief That Many are Conducting Bus.
mess in Iowa Without tho Sanction
of tho state-ArtieIes Must Be Filed
and Fees Paid Into Treasury.

Des Moines, July 2O.-The secretary
| of state began yesterday what prom
| Uses to be far reaching investigation
into the operation of foreign corpor-
atoms in Iowa, without sanction from
the state
Inquiry was sent to the Gladiator
Gold Mining and Milling Company as
to whether 1t has been transacting
business In Iowa under Its South Da-
kota charter, and notifying it that If it
expects to do business in this state
1t must file its articles of incorpora-
ton with the secretary Of state. This
inquiry was sent to the company yes
tertlay morning but no reply had been
received at the office of the secretary
last night.
II is said that there are many com
panies organized without the state
which are doing business within the
state, but which have not flea their
articles with the secretary as provided
by section 1887 of the code. number
of these are mining concerns whose OBJ
erations In the state consist Of the sale
of stock.
Under the section referred to, any
corporation for pecuniary profit other
than for carrying on mercantile or
manufacturing business, organized un-
der the laws Of another state or terri
tory or foreign country, shall file with
the secretary of state it's articles of
Incorporation paying the same fee
therefor as domestic corporations -
that Is 81 per thousand dollars Of CAPT.
tai after the first $25 which provides
for the first $10000--and thereupon the
secretary Of state shall issue permit
to such corporation to do business
within the state.
1t is claimed that large number
Of concerns now doing business in the
state have not complied with this sec
ticn The inquiry begun with the Dies
Moines concern referred to will be ex-
tended to the others which are thought
to have engaged in business and
which, 1t is. said, are quite numerous
Now the law provides that II cor
poration fails to obey section 1887, 1t
shall pay to the state for each and
every day in which such business has
been carried on 800. The Gladiator
company Is said to have been in bus
iress here for Ave years or more,
which, on the basis of the penalty re-
ferred to- would subject 1t to pay
nlent to the state treasury ~ approx
i1nately $15O,OO0 If the section We're
e1forcfble against all of the companies
thought to come under its provisions,
the state would be able to. recover sew
eral millions in penalties besides COM
polling the payment or large sums in
filing fees.
There Are Many.
1t is only known at the Office Of the
secretary OF state that the Gladiator
company is not an Iowa corporations; 1t
has no articles on file here. according
to the record. The inquiry that is be-
ing made. now, relates to whether 1t
has been doing business in the state.
It is probable that the ntluiry which
is. being made now will be gratifying
TO that faction in the management OF
the company which backs a. L. Steele
In his fight. Mr.. Steele's friends are
very bitter toward President Crabtree'
because of the indictment recently re-
turned against Treasurer Steele, who
is charged with embez::lement on
testimony once presented to court, he
claims, and on which he W Is absolute
ly exonerated.
May Mean Big Revenue.
At the office of the secre AIRY of state
it is hoped that the investigation Of the
concerns which have been doing bust
ness without permit viii result in a
large revenue to the state treasury. 1t
is not supposed that the penalty re-
ferred to Will be collected
In addition to this pena. ty, however.
1t is provided that any agent, officer or
employee of such a corpor alton (doing
business in the state without permit)
who knowingly transacts any business
for such corporation when it has no
valid permit, shall be guilty of a
misdemeanor and for each offense shall
be fined not to exceed 500 or be inn
prisoned in the county Jail not to ex-
coed thirty days, or both
The collection of the PENALTIES and
enforcement of the provision as to the
misdemeanor falls within the province
of the attorney general of the state.
when the facts ara presented to him
0<ofa Mortir