Daily capital journal. (Salem, Oregon) 1903-1919, 1913-01-06
Report Of
Secretary
Of State

tion with Portland commercial bodies
is strongly urged in that portion Of
Secretary Olcott's biennial report
dealing with the subject of corpora
tions. This portion Of the report was
made public this afternoon.
The secretary Of state says in his
biennial report that it is his opinion
that the act Of 1903 requiring a license
by domestic and foreign corporations
is one of the best statutes for produc-
ing revenue ever enacted in the state.
The revenues from corporation Ii
censes in the last two years are given
as $442,1474S, an increase of approXi-
mately $71OOO.
The segregation Of the corporation
department from the other depart
ments of the secrctarys Office is plead
ed for in the report on account Of the
rapidly increasing business Of the
office.
That portion of the biennial report
dealing with corporations follows;
Is Revenue Producer.
"The act of 1903 providing for the
licensing of domestic and foreign cor
porations still holds its place as one
of the best reyenue-producing statutes
ever adopted in this state, The in
crease in fees from this law has been
remarkable, but at no time has it been
larger than during the past two years,
the revenue from corporations from
October /, 1910 to September 30, 1912,
having been $442,1474S an increase
of about $1,000 over the receipts from
this source for the preceding biennial
period. Of the $442,1474S, the sum
of 1882, ,569.SO was collected by the
state treasurer and S1O9 5S3,6S by this
office
at is probable that the large in
crease in license fees is due to some
extent to the persistent campaign
carried on by this department for the
collection of fees that had become de-
linQuent.
During the past year and half,
this Office has made a special effort to
require foreign corporations to file
their papers in this office as provided
by law, and has been reasonably sue
cessful, 2lO foreign corporations hav.
ing entered the state during the ben-
NAL period, and paying entrance fees
amounting to $2O,167S2. The fees paid
to this department by domestic corpo-
rations during the same period were
$50 9,415.S6 Both items show sub
stantial increase over those OF the
preceding biennial period.
"The recent decision of the supreme
court in the case Of Hirschfeld VS..
McCullagh, in which 1t is held that
the courts will not lend their aid to-
ward the enforcement Of contracts,
entered into by foreign corporations
operating In this state in violation OF
law, is expected to result in large
increase in the number of foreign cor
porations complying with the Oregon
laws.
Deficiency Pointed Out.
Although quite satisfactory from
revenue producing standpoint, our
corporations laws in many other re-
spects are sadly deficient. There Is
no provision for adequate supervision
Of corporations by any state Official
no authority to require showing Of
assets and liabilities by proposed cor
porations and in many other respects
our laws are inefficient. Believing that
the time has arrived when the state
should dissolve partnership with
crooked promoters and when corpo-
rations should give the public some
thing in return for the valuable privi-
leges conferred upon them by our
laws, this Office, assisted by the cham
Ter Of commerce and other public bod
les of Portland, drafted a new corpor-
alton bill and submitted the same to
the people under the initiative at the
election held on November 5, 1912,
As a result of the general protest
against blanket ballot and excessive
initiative legislation, the bill was de-
reated by small majority, The bill
was modelled after the Kansas blue
sky law was very carefully consid-
cred and | believe would have given
excellent satisfaction. 1t provided for
the thorough supervision and control
cf corporations selling stocks and
bonds, and the additional fees required
from this class of corporations would
have paid all he expenses Of adminits-
tration of the corporation laws instead
Of taking about $1,000 out of the pub
funds for this purpose, as is the case
1T the present time.
Separate Department Needed.
The work Of this office has multi
piled with such amazing rapldity that
Il will be impossible for the secretary
Of state to give his personal attention
to the many perplexing problems that
are sure To appear in the administrc-