Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1907-10-19
Corporation Statute Permits
Companies to Do Business
in Iowa
ORGANIZE in NORTH DAKOTA
Now Corporations Wishing to Enter
Iowa Field Go Where Fees are Cheap
Officer Declares United States
Army is "shot to Pieces"-Roosevelt
is Blamed.
Special to Tlmes-Republican.

Special to Tines-Republican
Des Moines, Oct. 19.-One of the
holes in the Iowa corporation laws
that the next session of the legislature
will be asked to patch up is that al
lowing manufacturing and merchandis-
ing corporations to file their articles
Of incorporation in other states ana
then maintain their offices and do all
their business in this state without
even filing a certified copy of their
articles here.
It is a popularity of the corporation
laws of this state that the trainers
of the law overlooked. Last session
the legislature enacted a law that pro-
yides that new corporations being
formed must issue their stock in ex-
change for cash only and this has
FASTENED and greatly increased the
tendency to incorporate in other
states.
The matter has been called to the
dLl0ullON VI tlilS SOSIStSlAy VI SS1SS -
office several times lately. Corpora
tions desire to organize and issue stock
for about one-half the face value or
even less and accept other than cash
for the stock. Sometimes the things
accepted in exchange for the stock
are ofgvery doubtful value and the man
who pays cash for his shares is at a
disadvantage with the man who pays
other than cash and Of doubtful value.
To avoid the law that compels corpor-
atoms organized In this state to issue
stock for cash only corporations go
over to North Dakota and organize. The
filing fee in North Dakota is small and
the conditions very lenient. The cor
poration makes use Of North Dakota
to organize and then opens the office
in this state. Not vestige Of an office
is maintained in North Dakota and
no business whatever is done in North
Dakota. All the business is done in
Iowa and the laws of Iowa are avoided.
North Dakota gets more of them than
any other state because its filing fee
is small and it's terms lenient.
This scheme is open only to manu-
featuring and merchandising corpora
tons because the state law requires
that all other foreign organized cor
porations must file with the secretary
of state of Iowa a certified copy of it's
articles of Incorporation and failing
to do so is to be fined 500 a day for
each day that it does business in the
state.
This law exempting manufacturing
and merchandising corporations was
enacted in 1886 and 1t is claimed that
the reason was that many manufactur-
ing and mercantile corporations did
but very little business in the state
in the course of year and that there
were so many of them it would be a
hardship on them to require it of them.
The fling fee in Iowa is, however.
small. 1t is $15 and 81 for each thou
sand of capital, and it is proposed to
make all file.
The condition of the United States
tional guard as Well has been not half
told, according to United States
army officer here. The United States
army is all shot to pieces" said this
official today. 1t was never in as bad
condition as it is at this time and tho
1t may be treason to say so the blame
is to be laid to the door of President
Roosevelt. Roosevelt is too strenuous.
He is marvel. He is big and strong
and can do as much work as any man
in the United States and he thinks
that everybody else ought to be able
to do nearly as much as he does.
Just to illustrate the real condition
OF the army Of today. The Twenty
third infantry regiment has four com
panles that have not an enlisted man,
1T has five companies with only one
man each, one company with three,
one company with five and one COM
pany with ten men. The Twenty-first
regiment has only 1874 men in the regi-
ment. There are any number of COM
panies that have only the three COM
missioned officers.
THE fact is right here. An enlisted
man is not taken into the society of
the commissioned men. He gets but
$13 month and his living. Now UNI
der those conditions the only thing that
will keep an enlisted man in the sery-
ice is a comparatively easy time with
enough to do to keep him out of mis-
chief and plenty Of time to loaf. But
under Roosevelt they don't get that. |
Roosevelt personally commands every
company in the army. They have to
work and work hard. They don't get
off with eight hours day. They put
In ten and more. Since they have to
work so hard they drop out of the
army and go into regular civilian en-
ployment where they can make more
money and they tell all their friends
how hard they have to work and their
friends don't enlist.
1T is nearly as bad for the officers.
They are kept on the jump so much |
that they can't pay expenses. One
lieutenant told me he had moved five
lines in year and he has wife and
i've children and gets salary of ST.
800 a year.
"The same thing will and does work
With the guard. Roosevelt, thru the
var department, keeps the guards all
stirred up. Members of the guard en-
list because they enjoy it but when
hey have to give so much time and
work. so hard they object and drop out
md fail to re-enlist. over in Penn
,ylvania the guard has gotten down so
ow that they are offering the mem
,ers 81 for each man that they enduce
% enlist but 1t doesn't help a great
leal
There Is a scarcity of officers as
'fficers TO make the full quota for the