Martinsburg herald. [volume] (Martinsburg, W. Va.) 1881-1920, 1890-03-01
WHO II RESPONSIBLE?

The majority of the people Of West Virginia have
never had their attention called to very injurious in
uence which Is at work against the business reputa
ton Of this State. We mean the ndiscrimnate incor
poraton OF irresponsible companies for the alleged
purpose of transactng legitimate business of some
Kind but the principal objects of which pay the
corporation lawyer and the Secretary of State their
fees AMI to allow the ncoporators to escape personal
business responsibility, the laws of this State making
all corporations limited " in English sense The
incorporators put few dollars of "stock" IN the
company and this is all that they are liable for
We have taken pains to look up this matter at
the proper and find that West Virginia is in
bad repute among her sister States For example
the little book on Trusts " and their workings which
has been read generally has this say of West vir
gina
"The wide awake corporation lawyer, who FORMERLY
incorporated his companies in Maine, Connecticut or
New Jersey, now finds that the snug harbor of roam
ing pratca corporations is the little State OF West
Virginia = one of the chief industries OF that
young but enterprisng State.''
The oostneSs OF laws and the opportunities for
preying upon the commercial interests of other see
lions through corporation factory need immediate
check.
law author OF great reputation says:
"West Virginia is at the pres ent writing the banner
State among those IN which parties entering upon pre-
carious corporate schemes find it reasonably safe to
incorporate"
The law journals which we have recently examined
with view OF getting their expression this subject
literally jump onto West Virginia, to use vigorous
phrase. The following from the american Lac Rereac
will serve as us a sample:
"Castng about and exploring the statutes of differ.
ent States, with the view of finding which are most
favorable to corporate organizations and contain the
MAI
corporation lawyers have hit upon the little State of
West Virginia In fact, the organization in West Vir
gnia OF corporations intended to do business elsewhere
aud to have only nominal existence in West Vir-
glnla, has become regular business"
The commercial press of the country has not with
held protest. These disparaging references are not
credtable to the State and however much the matter
may exaggerated, there must be some reason
why thus iDvidOusly singled out
If the sovereign power of this State is being prost
tued to the creation organizations not countenanc.
ed elsewhere, West Virginia is dealing unfairly with
her sister States and when she sets the approval of
her Great Seal" upon roaming" :. pratca"
"precarious > business pirate, she intctS injury
upon the outside world that can but react upon her.
self
Her home corporations are now reaching out for
relations requiring credit and reputation. Many of
them entitled to rank with the soundest aud most
honorable business houses OF the land.
But trade centers will learn to condemn even the
genuine if they find that vicious and fraudulent
schemes wearing the West Virginia brand.
We have been told that the State derives revenue
from the output OF this factory; but satisfied
that while that the for the existence of the
business, the profits derived to the operators, is the
real inspiring cause.
Why should West Virginia be forming companies
to operate outside OF her limits What interest has
she in do:ugf'
II she grants charters to the INSCRIPTIONS better
terms than they get at home. she is committing
positive outrage.
The Secretary OF State has been doing IA thriving
business in this line and ought to be stopped We
may have something more to say about this and we
hope that others will take up the subject.
The honor of the State should not be matter oil
OBSERVATION-DISCLOSURES Journal