1906-1908 Ind. Op. Att'y Gen. p. 77
The Hoosier Travelers' Association cannot incorporate under the act of 1889 for purposes of transacting business in Indiana.
794, 796).
Accordingly my opinion is that the fraternal associa-
tion act of 1899, as amended in 1903, does not exclude orders or
lodges, grand or subordinate, orgavized after that statute was en-
acted, or after it became a law:
It follows that the Supreme Senate Fraternal of Fraternals,
must incorporate under the act last above mentioned, unless the act
of 1901, supra, eiables it to incorporate as a voluntary association.
Considering the general policy of the legislature manifested during
recent years to place restraints and safeguards about insurance or-
ganizations, I am of the opinion that it did not in 1901 intend to
relax those restraints by enabling fraternal societies in general to
incorporate under a law which subjects them to only slight state
sup&rvision; neither did it design to repeal the fraternal benefi-
•eiary act of 1899, whose existence is expressly recognized on page
466 of the Acts of 1901, in an act passed after the voluntary asso-
ciation statiite of that year v ,as approved; and again in 1903 (&ets
1903, p. 18).
It is significant that at the same session of the legis-
lature (1.901) no less than five distinct acts were passed, imposing
salutary restrictions upon insurance organizations.
(See Acts 1901,
pp. 321, 374, 408, 486, 617.)
This course of legislation and the his-
tory of the section in question, which I have traced supra, leads to
the conclusion that the "lodges or other bodies of
"*
#
other
secret ritualistic orders." refer to sitbordinate "lodges," "camps,"
tents," "tribes,"
"senates," or "other bodies" of inferior nature,
organized merely for local purposes, such as the holding of real
estate for lodge uses, etc.; but that the legislature did not con-
template allowing a fraternal benefit society, such as the one now
under examination, to organize as a voluntary association by in-
corporating its supreme senate.
-My opinion, therefore, is that the Supreme Senate Fraternal
of Fraternals, can not incorporate as a voluntary association, but
must be organized, if at all, under the fraternal beneficiary statute
of 1899, as amended in 1903.
BILLS-SENATE BILL NO. 359-"A BILL FOR AN ACT
CONCERNING FOREIGN CORPORATIONS."
February 7, 1907.
To the Senate Jadiciary Committee B:
Gentlemen-You have submitted to me Senate Bill No. 359,
entitled "A bill for an act concerning foreign corporations," and
have asked my opinion concerning its constitutionality.
The bill
pruvides, in substance, that no foreign corporation shall exercise
any powers or enforce any claims in Indiana which it could not law-
fully exercise or enforce in the state of its incorporation.
So far as this bill seeks to confine foreign corporations to the
exercise of their corporate powers as fixed by their respective char-
ters, it is merely declarative of the common law, and is valid.
As
said in 6 Thompson on Corporations, section 788-5:
"Without attempting to enumerate, in a single section,
all the cases to which this (state) county does not extend, it
may be observed, in the first place, that it does not extend
so far as to concede to foreign corporations the powers which
their own charters do not permit them to exercise."
. (See
also section 7905.)
It is, however, a matter of common knowledge that some states
issue charters to corporations to do business anywherc but in the
iqcorporating state.
The bill in question would exclude such or-
ganizations from transacting any business whatever in Indiana. So
far as such business is domestic in character, this restriction would
be permissible, for it is a general rule that a state may prescribe
upon what terms a foreign corporation may transact business with-
in its limits.
(People's Assn. v. Markley, 27 Ind. App. 128, 131;
Security Assn. v. Elbert2 .153 Ind. 198, 202.)
But the bill in ques-
tion is not limited to domestic commerce, but its terms are broad
enough to include interstate commerce as well.
The legislature can
not thus prevent a foreign corporation from transacting interstate
business in Iidiana merely because its charter does not allow it to
transact business in the state of its creation.
As said in 6 Thomp-
son on Corp., section 7878:
"It
is also the settled construction of this provision (the
interstate commerce clause of the constitution) that inter-
state commerce carried on by corporations is entitled to the
same protection against state exactions as when carried on
by individuals."
I am therefore of the opinion that this bill, if enacted, would be
unconstitutional as a new and substantial piece of legislation ; but
as a mere declaration of the common law, as above indicated, it
would be uob,jectionable, though of no real force,
INSURANCE-HOOSIER TRAVELERS' ASSOCIATION.
February 7, 1907.
Ilon. John C. Billheimer, Auditor of State, Indianapolis, Indiana:
Dear Sir-You have submitted the articles of incorporation and
by-laws of the Hoosier Travelers' Association, and ask whether such
organization can incorporate under the act of 1889 (Acts 1899, p.
141) entitled "An act for the incorporation of societies not for pe-
cuniary profit, defining their powers," etc.
The purposes of the present association are thus stated in their
articles of incorporation:
"Third. The purpose for which said corporation is
formed is:
1. To unite for mutual benefit commercial travelers of
good moral character.
2.
[To give moral and material aid to its members in
case of physical disability and to render material aid to the
widows, orphans and dependents of deceased members.
3.
To secure more equitable favors and better accom-
modations from hotels and transportation companies.
4.
T o elevate the moral and social standing of its mem-
bers.''
Section 2 of article 1 of the by-laws provides:
"The object of this organization shall be .to pay indem-
nities to its members for loss of time by reason of sickness
and indemnities for loss of eyes or limbs from a accidental
cause, and to pay benefits to the wives, relatives and depend-
ents or legatees of members in case of accidental death, and
funeral benefit in case of death from natural causes of not
to exceed $50 (fifty dollars)."
The evident intent of the statute above referred 66 is to author-
ize the incorporation of clubs or societies which shall possess the
powers specified in section 2 of said act, namely, the usual privi-
leges of corporations at common law; and the power to sue; to
borrow money; to execute notes, mortgages, etc.; to rent, hold, sell
or buy real estate and personal property
and erect buildings for
corporate purposes.
There is nothing in the act of 1899, supra, to indicate that the
writing of accident or health insurance was to be one of the powers
of societies organized thereunder.
That the main object of the
association in question is the making of insurance is clearly shown
by the above quotation from its articles and by-laws; and on the
back of the pamphlet containing the latter, "Health Insurance for
Commercial Travelers" is conspicuously advertised.
I am therefore of the opinion that the Hoosier Travelers' Asso-
ciation can not incorporate under the act of 1889 for the purposes
above indicated.
STATUTE OF LIMITATIONS-DOES NOT RUN AGAINSI'
CRIME OF FALSE PRETENSE.
February 11, 1907.
Hon. J. Frank Hanly, Governor of Indiana:
Dear Sir-In answer to your inquiry as to whether the statute
of limitations runs against the crime of false pretense in the state
of Ohio, I beg to advise that section 10,388, Laning's Revised
Statutes and Re-Codified Laws of the State of Ohio 1905, reads
as follows:
"Offenses which may be punished by death, or by im-
prisonment in the state penitentiary are felonies; all other
offenses are misdemeanors."
That part of section 10808, id., which relates to the subject mat-
ter reads as follows:
"Whoever by any false pretense with intent to defraud
obtains from any person anything of value
'
*
'
shall,
if the value of the property
*
*
*
is $35 or more, be
imprisoned in the penitentiary not more than three years
nor less than one year."
Section 10401, id., reads as follows:
"No person shall be indicted, or criminally prosecuted,
for ank offense, felonies excepted, the prosecution of which
is not specially limited by law, unless such indictment be
found, or such prosecution commenced, within three years
from the time such offense was committed."
There are" limitations upon prosecutions as to time by special
statutes on the following crimes:
Betting on elections, pool, etc., §10587;
Bribery, threats, etc., by candidates, §10767;
Common labor on Sunday. by employe-. §1.0754;