Omaha daily bee., 1906-09-15
NEW LAW ON CORPORATIONS
State Bar Committee Working on Bill to
Submit to Legislature,
SPEAKERS FOR NEBRASKA c0MPAlGN
Besides Local Talent. IL e. Hoped TO
Secure Senators DoIIiver and Bev-
eraRe, Speaker Cannon and
Secretary Taft.
PEAKtRs EOR NEBRASKA COMPNeN
CFrom a stan CORRESPONDENT

(From a stan Correspondent
| LINCOLN. Neb., Sept. 1L-(Specal )-B.
| e. STROBE, city attorney of Lincoln, AS a
member OF the state bar committee On
! legislation. is working in a recommended
| ton which, If perfected. will require all
| foreign corporations to file articles In this
state and pay tax on their business The
| plan has not yet been perfected, but 1t will
be one that will impose a good round tax
on all corporations wishing to do business
in this state. 1t may also have a tendency
to make foreign corporations become do
nestle corporations, and IL this is the result
their property will be subject in every way
| to the control OF state laws. 1t is desired
| to prevent foreign corporations transacting
business in the state unless they comply
with the proposed law.
Another amendment that may be offered
by the state bar committee, is one amend
| ing section 2os5. chapter Is. statutes of 1905,
relating to the Indebtedness of corpora
tons. This section provides that articles
! of Incorporation must fix the highest in
debtedness to which corporations shall at
any time be subject, which must, in no
case exceed two-thirds OF the capital stock.
The result of this law is that corporation
| that desire to create a large debt and
many of them so desire, must increase their
| capital stock to "watered limit and
then when such corporations are asked TO
| reduce their rates they claim the privilege
! of earning dividends on watered stock This
section was amended by the legislature In
1859. 1879 and 1887 1t is believed that 1t
| was adopted for the purpose of limiting
the Indebtedness Of corporations, but II that
| was the object 1t has failed 1t results in
watered stock to correspond to the amount
OF Indebtedness desired by corporations
Il Ma NLaN
property of corporations already existing
are tempted to buy on credit and increase
their stock to an unreasonable limit. Most
other states are said to have similar laws
An amendment OF this law may be the
| means OF preventing the watering OF stock
| II will receive the consideration of the state
bar committee and possibly will come be-
fore the legislature.
Noted Speakers for Nebraska.
The word has gone out that the repubn-
can state committee will rely mainly on
Nebraska orators during the campaign.
but this proves to be not entirely correct
Arrangements have been made to obtain
some of national reputation to talk to the
voters. At the request of the state COM
mittee. the voters of Nebraska will have
the privilege of hearing one or more Sc
lected from list of speakers comprising
GptdheT SdunOHi OOlllN6T Oh iowa.
Senator Beverage of Indiana, Secretary
Taft of the War department land possibly
others
BY direct arrangement of the state COM
mittee. Governor Cummins of Iowa may
be secured for several dates, provided he
can take the time away from his own
state. On account of the bitter factional
fight in the Hawkeye state, Governor Cum
minis may deem 1t advisable to do all of
his speech-making at home, but an invita-
ton to- assist in Nebraska is likely to be
sent him, nevertheless. ,,', t.
II is possible that Congressman Burton
Of Ohio. who led the fight against Foraker
and Dick in that state, may be asked to
participate in the Nebraska campaign. The
state committee officers do not know
whether or not he can be secured, but they
think few speeches from him would have
a good effect Congressman Smith and
Lacey Of Iowa are others suggested as men
who would render valuable assistance IL
they should come. Mr.. Smith was with
the Fairbanks party on its Nebraska tour
two years ago and made favorable impress
sion at that time.
It has already been announced that sena-
tor Burkett would take an active part in
the state campaign this year. and he will
begin his work as soon as the state COM
mittee sets the dates. Up to this time the
only meetings which have been fixed are:
Norris Brown. Robert Cowell and H. ].
Wlnnett-At Auburn, Wednesday, septem-
Der 10: at johnson, September 20; at Me-
braska City September q.
George l.. Sheldon-At Fairfield, Friday,
September q; at York. Friday, September
Sheldon, Brown and Local Candidates
At Grand Island. Saturday September g.
Attorney General Brown, who was asked
by the republican state committee of Iowa
| 20 contribute as many dates as possible for
! the campaign there, could not accept the
invitation. His Office duties are heavy just
now and he will have to take at least ten
days in October preparing for the hearing
of the railroad tax case in supreme court
at Washington. He will have little enough
time to devote to the campaign in Ne
braska.
1t appears that the people of the state
do not yet know that the antitrust law
passed by the last legislature. introduced
by Representative Junkin, provides fine
of 5000 against any corporation that shall
sell in any town any article at less than
II is accustomed TO sell in any other place
under like conditions. This section is be-
lieved TO be directed against the Standard
OIL trust and the beef companies, but It APP
plies TO any corporations selling goods in
I 4NSDIdohds II Is COpl6u lEOUl the Kansas
law. Thus far no complaints have been
made under the new Law.
OIL Inspector Reports.
State OIL Inspector E. A. Church has
lately received notice Of four new tank
! stations established by the Standard OIL
company at these places: Sidney, Cheyenne
county; SCOTS Bluff, Scott's Bluff county;
Homer, Dakota county; Willard. Douglas
county. Other new stations during the
year are at Sargent, Custer county, and
| Curtis, Frontier county. Inspections must
be made at all Of them. The Standard Oil
/ company is also building a new tank sta
ton at Lynch, Boyd county, which will
soon be in operation.
During August, which is a light month
| for the oil Inspectors department. only
about 100 carloads were examined. The fee
collections aggregated $14SS.2o. of which
tsI499 was retained for salaries and ex-
penses, leaving balance of s46S.a. which
has been turned into the state treasury.
OIL Inspector Church intimates that he
/ may ask for additional deputies on account
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