Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1907-09-30
Attorney General Will File
Papers in Case Against
Western Union
CORPORATIONS SEE LooPHoLE
Attorney Thinks Companies Are Inn
mune From Prosecution Under Sec
ton 1e37-Historical Department
Secures Copies of Canal Record,
Governments Paper.
spec,al to mes-Republican.

Special to Times Republican.
Des Moines, Sept. 3O-Early this
week, probably tomorrow, the attorney
general will file the suit of the state
of Iowa against the Western Union
Telegraph Company for violating the
laws of the state by doing business In
the state without first having filed with
the secretary of state ceruhed copy
of it's articles of Incorporation. This
suit when started will be one of the
most important and interesting the
courts have had for many years be-
cause of the fact that the amount in
yolved is so large. The penalty is 800
a day. In the case of the Western Un-
ion Telegraph Company the total
amount runs into the vicinity of ST.
100000
In it's statements to the executive
council the Western Union claims to
be losing money on It's Iowa business.
Last year it claims. it took in $329,0oO
and it's expenses were 100000 and the
year before its expenses were S374,O0O
and it's receipts but $31S0O0.
The Postal Telegraph Company is an
Iowa concern with it's articles of In
corporation filed here.
The policy that has been followed by
some former officials in relation to
foreign corporations may not be fol-
lowed by Attorney General Byers in
relation to the corporation laws. Law
yers disagree as to the meaning Of the
statute requiring foreign corporations
to file in this state and pay the fling
fee or be subject to the penalties of
500 a day. AS interpreted by some
section 1857 of the code exempts all
corporations doing business in the
state before September 1. 1886. One
sentence in that section says:
amy corporation transacting busi-
ness in this state prior to the first
day Of September, 1886, shall be ex-
empt from the payment of the fees
required under the provisions of this
section"
Some lawyers interpret this as a
sort of immunity bath for all corpora
tions doing business in the state at
the time the law was passed. They in
terpret it that corporations doing bus
mess before that date not only are ex-
empt from paying the filing fee, but are
exempt from all the provisions of the
law; are exempt from filing certified
copies of their articles of incorpora-
ton and from paying any fine of s100
a day if they don't.
Other lawyers interpret it that while
they are exempt from paying the orig
inal filing fee they are not exempt from
filing certified copies of their articles
OF incorporation and are not exempt
from paying the s1O0 fine if they do
not. 1t is argued by them that
the essential purpose of the law was
to have on file information concern
ing the corporation for the benefit Of
the citizens Of the state. That in case
a citizen desired to bring action against
such corporation he ought to have
some source of authoritative and Of
fetal information concerning the cor
porations, it's officers and purposes. and
that citizen Of the state has this
right as to corporations doing busf-
ness in the state before September 1,
1886. as well as to those entering the
state after that date.
The state historical department is
receiving copies of the Canal Record.
1t is said to be the only weekly news
paper published by the United States
government The first number was is
sued September 4, and two numbers,
that Of September and that of Sep
tember IL, are now on file in the his
torical building. The paper has eight
pages and the pages are less than a
foot square, 1t contains official reports
on the amount of dirt excavated each
week and other official information
concerning the Panama canal.
It is understood that at the next
session of the legislature the Iowa
League of Municipalities will ask that
the law relating to railroad assess
ments be changed. This subject has
been agitated before. 1t is probable,
however, that at the next session the
question of taxation generally will be
gone into quite deeply, either to pro-
vide for a commission to study the
problem or else to amend the laws
during the session, and this PROPOSE
ton will be handled with the rest
The action of the league grows out
of the address of Mayor MacRea, OF
Council Bluffs. at the last convention
of the league. in which he maintained
that the cities should have all the
benefit of the railroad property in
them. Under the present system the
executive council assesses the entir"
railroad property and then divides 1t
by the number OF miles Of road In the
state Each county then gets as much
as the mileage In Its own borders But
the property inside the cities is worth
more per mile than that in the coun-
try and the country districts thus gain
while the cities lose.
The Iowa league viii meet again be-
fore there is session of the lesisla-
ture. The meeting will be in Ottumwa