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.

Year: 1907Length: 1,411 wordsOfficial source
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;
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. | Justis AI