Ottumwa tri-weekly courier., 1910-01-20

The decision of the United States |
supreme court knocking out the Kan
| sas law requiring foreign corporations
to pay a charter fee for the benefit of
| the state schools. may possibly affect |
the suits brought by the state of Iowa
to compel foreign corporations to pay
heavy filing fees in accordance with
the provisions of the Iowa law
| Iowa Laws Errors.
In reply to an article referring to the
provisions Of the Iowa corporation law,
the judiciary committee of the Des
Moines Commercial club has prepared
the following statement:
Prior to 1886 there were no statutory
| restrictions or prohibitions upon for
eign corporations doing business in the
state. The Twenty-first general as
sembly passed an act, but that act did
not require the payment of any fees
by foreign corporations. 1t merely re-
quired all corporations, except corpora
tions for carrying on mercantile or
manufacturing business, to file with
the secretary of state a certified copy
of their articles of incorporation. Note
now, that foreign corporations in this
state carrying on mercantile or man-
from even the requirement of filing
copy of their articles of incorporation.
In 1897 the code was revised. There
was incorporated in this statute pro-
vision that all foreign corporations, ex-
cept those carrying on in the state a
mercantile or manufacturing buiness,
should pay fees; but this requirement
was not applicable by the terms of the
| niyoyp
business in the state prior to Sept
1, 1886 The statement of the secre-
tary Of state that the most important
change made in 1897 was the inser-
tion Of paragraph, eXempting from
the payment of fees corporations tran
sacting business in the state prior to
September, 1886, is misleading, for 1T
implies that prior to that time such
corporations were required to pay
fees. whereas the fact is this statute
for the first time in the history of the
state, provides for the payment of fees
by foreign corporations; but the
statute continues the exemption Of
mercantile and manufacturing cor
porations, and adds further exemr-
ton from such requirement of corpora
tions in the state prior to Sept. l, 1886.
WEdC Law fTOVlOcO.
Further quoting from letter of the
secretary of state, where it Is said:
This seemingly exempted mercantile
and manufacturing companies from
filing articles and paying fees But it
was held that the exemption applied
only to those corporations whose
articles Of Incorporation restricted
them to manufacturing and mercantile
lines of business that those companies
: whose articles of incorporation pro-
vided for their engaging in other lines
of business must, if they desired to do
business in Iowa, file a certified copy
of their articles and pay the fee re
quired of local corporations. This in.
depreciation Of the law was based on q
decision of the supreme court of the
United States
This statute not only seemingly
exempted mercantile and manufacture
ing corporations but it did in fact
There never has been statute in the
state of Iowa, at any time, requiring
mercantile or manufacturing corpora,
tions to pay filing fees
The language of the statute, Twenty.
first general assembly, Chapter 76
Section 1, is Hereafter any corpora
tion for pecuniary profit OTHER
THAN FOR CARRYING ON MER
u CAMILLE OR MANUFACTURING
i BUSINESS, organized under the laws
e of any other state, shall be, and
. hereby, is required on and after Sep
S tember 1, 1886, to file with the secre
4 tary of state, certified copy of its
4 articles of incorporation, ETC. No re
e quirement for payment of fees how
: ever, by any foreign corporation is
found in this statute. The language 81
S code of 1897, section 1857 is as fol
: lows:
r "Any corporation for pecuniary
profit, OTHER THAN FOR CARRY
ING ON MERCANTILE OR MANU-
FEATURING BUSINESS, organized
,, under the laws of another state
shall file it's articles and pay fees, ex
cept corporations in the state prior tc
September 1. 1885,
Court Never So Held.
: In this statute for the first time is
g found the requirement for payment OF
$ fees, but the exemption of mercantile
I and manufacturing corporations, it will
S be perceived is carried into this statute
But it is said in the quotation from
5 and Miss Lilly Gallond spent last Fri
10 1oI