The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1919-02-07
TOM HALL Is
IN COURT ON
EQUITY PLEA
Pat Casey Can't See Why His
Company Can't Save 1895
at Expense of State
MUST SHOW COUSIN JACK
Cornish Member of League Ad-
ministration TOsses Langer's !.
Opinion Back to Him
MUST SHOW COUSIN JACK

In response to aon alternative writ
issued by Judge w. L. Nuesle on Pc
tition Of p. M. Casey, president OF
tho Equity Cooperative Packing Co.,
Secretary of State Thomas Hall must
appear in district court at 3 O'clock
Saturday afternoon to show cause
why he should not permit the corpor-
alton to so amend its articles as to
reincorporate under Chaper 81 Of the
session laws of 1917. .E..ssss%
BY so amending Its. articles and re-
incorpUra ting, the Equity company,
which recently " oted to $increase. its
capital stock from $1,000,000 to $4,000
900, could get away with IS in
corporation fee, while as matters now
stand the corporation would be re-
quired to pay fee of $1,000. Judge
S. l.. Nuchols Of Mandan, law part
her of Attorney General LANCER, Is
4 representing. the Equity Packing Co.
in its efforts to save its stockholders
this $995. w. H. Stutsman of Man
dan is representing the secretary Of
state. , .-.' 20
H. History Of Case.
The Equity Packing Co. of Fargo
was incorporated under the general
corporation laws, of the state October
-, 1916, with an authorized capital Of
$l,OOO,OOO. Under date OF October 29,
1918, Patrick M. Casey, president and
L. G. Hoopman, secretary, formally
notified the secretary OF state that
the company had that day elected to
come under the provisions OF Chapter
- OF the Session Laws of 1917, which
lAI %nA ~ tNn "a Cd
Laws Off19l5, relating to the incorpor-
alton Of cooperative organizations.
The secretary of state advised the
company that the declaration could
not be accepted, Judge Nuchols, 9.
behalf Of the company, then took the
matter Up With the attorney generals
office, and an opinion was obtained 'Ei fEesc !
from Assistant Attorney General E;i
Il. Cox holding that the company was,
within the classes of corporations de.'
scribed in Section 16, Chapter 81, ses'
sion laws of 1917. .,s ~
Under date Of August q, 1917,
when the Wales Farmers Elevator
Co. attempted to file a similar dec
laration, Attorney General LANCER
gave 1t as his opinion that ITO permit
q corporation to change it's class by
amending it's articles of incorporation
simply because the changes to be
made therein are few in number, and
of slight Importance, would establish
a precedent and would entitle any cor
poration to a like privilege, as, for
instance banking corporation
amending its articles of incorporation
in order to become a railroad corp0r-
ation."
Feeling that the opinions of Mr..
Cox and his chief were in conflict, the
secretary of state them wrote Judge
Nuchols, 4 representing the company
as follows: @ ts. 4,-.ls, !, E.
II herewith return affidavit Of r,
M. Casey, copy of the bylaws Of the
Equity Cooperative Packing Co., opln'
ion by Edward B. Cox, assistant at
torney general, and certificate OF in
crease of capital stock.
"This company was incorporated
with seven incorpOratOrs with an au'
thorized capital of $1,000,000, and in
its articles does not provide for the
distribution of profits to its custom
ers. Mr.. Cox in his opinion says: 1T
is my opinion that the Equity Cooper
ative Packing Co. comes within the
purview of Section 16 of Chapter 81,
Session Laws of 1917, as cooperative
company which attempted to organize
and do business under q prior statute
providing for the organization Of CO.
operative companies, and, as such,
uNon filing with the sdcretary OF
state the written declaration provided
for and the payment of the proper
fee, is entitled to come under the
terms of said chapter and to receive
its benefits and be bound by its pro-
Visions
"The secretary of state confesses
his inability to understand how seven
individuals can attempt to constitute
les sthan 25' (See Section 2, Chapter
96. Session Laws of 1850 Neither
odes he understand how company
may be defacto cooperative corpora
tive corporation with an authorized
tion with an authorized capital OF 81.
100000 when the law specifically
states that the capital stock OF CO.
operative corporations shall not ex-
coed >S5O. O.OOO (See Section 1906, Com
piled Laws 191S.)
y "This company proposes to In
crease its Authorized capital from $l,'
0OO, 900 to s.. 100000. The fee for such
increase under the general corpora
ton law will be $1,000, and in addi-
tion thereto Sc fee for filing amend
mentsc and issuing certificate. The
fee under the cooperative law, Chapter
ga, Session Laws 1917, is IS for fill
ing the amendment"
t IL understood that the company
claims that an error was made In its
Incorporation aud that it intended to
Incorporate under the laws Of 1915 re-
Rlating to cooperative organizations.
The secretary Of state claims that
Continued on. Page Two.)