Missouri Valley times. [volume] (Missouri Valley, Iowa) 1874-1931, 1907-04-18
CORPORATIONS LET
DRASTIC BILL GO
THROUGH; MAPPING
While Fighting Less Sever
Ericsson Measure Peter
SON Bill Wins.
KEEP OUT MUCH ''WATER"
Executive Council Must Place valua-
ton on All Property Against
Which II Is Proposed to
Issue Stock.
KEEP OUT MUCH "WATER'

Ioes Moncs, la. April 16.--Whie the
intention of the corporations was at
tracted by the Ericsson bill which re-
quired that they make annual reports to
the secretary of state and pay small
tax, the legislature passed the Peterson
drastic and requires that every stock
transaction of IL corporation that is not
strictly on Il cash basis and fully paid
up must be laid before the executive
council in all its details. Evidently the
corporations while fighting the Ericsson
bill overlooked This one.
stare officials believe the law one of
the most drlctic that has ever been
place OH the statute books. 1t will no
longer be possible for the man owning
u patent right TO place /, value on that
patent and then induse a number of
friends To go in With him and put in
cash to form IL corporation to manu-
facture the article. The matter must
be laid before the executive council and
the executive council must put IL value
on the patent right.
If u man owns IL lot of real estate
in some arid country or anywhere else
and hasn't the funds TO hold it and
puts il on the market. instead of valu
ing it himself and inducing his friends
to form stock company With him and
they put i'm cash and he put his land
ut his own valuation the executive
council will put the valuation on the
land Then when the public buys the
stock in the proposed corporation it
will have an impartial valuation on the
commodity it is to put its money
against
Prevents Watering Stock.
The primary intention of the law is
to prevent ncw corporations from wa
terins their stock. or course since ev-
cry stock transaction that is not for
cash i'm full must have the approval
of the executive council it will hardly
be possible for AN Iowa corporation to
make presents of blocks of stock to
public officials and influential men for
the purpose of gaining their interest
aud influence in the proposed under-
taking. The executive council might
not consider that the influence and
interest of IA prominent citizen or Off
cinl to be exactly in the interests Of
the public.
While some of the members of the
| Legislature nterpospds some objections
to the hill when It w:ls ..nder consider
alton, he corporations themselves did
not hight the measure. All their time
and attention Was taken up in fight
Ing the Ericsson bill which was spoken
of AS the corporation tax bill. The
real purpose of tn" Ericsson bill was to
get reports from the corporations tn
4 the secretary of State There is Il law
now that requires; Them to report but
There is no WAY of enforcing it and
the purpose of III" Ericsson bill WAS to
prcvide for a small tax in addition
to the annual report. The funds from.
the tax would add some to the revenue
| of the state besides guaranteeing a
4 fund With which 10 enforce the pro-
visions of the Dill, requiring annual
4 report.
For a Cleaning Up.
The Ericsson bill was offered at the re-
! quest of the secretary of states office
There are hundreds of corporations in
! Iowa that have Incorporated under the
laws of the state of Iowa that are dead
and many others that have been given
the privileges of the corporation laws
that are doing AN Illegal business.
There are others doing business in the
state that We're incorporated in other
states that have no legal right to do
business here till after they have filed
certified copies of their articles of in
corporation. Yet the secretary of state
has no means whatever of keeping
track of these corporations or of aScer-
tanning what they are doing. III is
quite generally conceded that there
should be some report to the secretary
of state regularly. and it is probable
that one of the first bills offered to the
Thirty-third general assembly Will be
the Ericsson bill. or Il modification of it