Arizona republican. [volume] (Phoenix, Ariz.) 1890-1930, 1910-09-16

Our lneorpora ing Laws.


The decision of the California su
preme court, declaring of no effect IL
California, the exemption from per
sonal liability of stockholders in tina
state. of corporations organized unde
the laws of this territory or any othei
state or territory whose laws reliev,
stockholders of personal liability, viii
likely affect the revenues of this ter.
ritory
The decision will no doubt be &C
cepted as law in other states wher,
cases similar to that of the Went.
worth Hotel company may arise. or
the face of it, the decision seems t.
be sound for it would be a rather in
cougruous situation, if persons doing
business in a state should seek an6
obtain immunity not granted by the
laws of the state.
The very favorable" laws of this
territory have attracted the attention
of corporation promoters in every
state in the union and every state in
the union contains one or more cor
porations organized under the laws of
Arizona. 1t may be added that an
overwhelming majority of these cor
poratiOns are of questionable charac-
ter
As we have said this decision will
probably unfavorably affect our ter
ritorial revenues. Arizona receives
annually about 100000 from this
source. but it could well afford to
dispense with this sum, which in a
sense is tainted
The history of our incorporation
laws is not calculated to expand our
breasts with pride. For many years
they had been liberal enough and that
they were not attractive was because
they were not well advertised. The
world was made acquainted with
them early in the term of "Reformer''
Charley Akers as secretary of the ter
greater attractiveness for the laws not
for the advantage of the public re-
venues but for his own private gain.
At that time the incorporating fees
which belonged to the secretary's Of
flee were small but the reformer set
about making them worth while and
hn GtrrPaa6nd n CT n
democratic legislature an amendment
increasing the fees and giving the
law its present enticing form. 1t was
estimated at the time that the incor-
porating business would yield about
$4,000 annually-to the secretary.
The "reformer" did not reap the
harvest. He was replaced before the
amended law got to working well, but
he had not wrought wholly in vain.
He went into the Incorporating busi-
ness himself for his efforts had
riveted the eyes of promoters upon
Arizona; he had already established
a clientele.
Governor Kibbey throughout his ad-
ministration inveighed against the
iniquity of the Incorporating laws
which were disgracing Arizona by
making it the breeding place of
thousands of wild cat companies
formed for no other purpose than to
defraud a trusting public. But all of
the governors efforts to secure an
amendment of the laws failed In
every legislature he discovered the
hand of "Reformer" Akers who was
striving to prevent any change which
would render the laws less attractive
to wildcatters and which would re-
duce the emoluments of the incorpor-
ating business.
In the meantime the fees of the
secretary's office, long since unoccu-
pied by the "reformer." had been di-
verted to the poblic treasury which
as we have observed, can well afford
TO dispense with them in lieu of an
incorporating law which will be less
a stencil to the nostrils of decent
business men.
1t is true that many reputable COM
panies have been organized under the
Arizona law. 1t does not bar them,
but as it has been amended. at the
instigation of the 'reforemr," it was
intended chiefly to serve corporations
whose purposes are not honest