The morning news. [volume] (Savannah, Ga.) 1887-1900, 1891-07-27
a DANGER SIGN AL.
What the United States Corporation
Bureau of Chicago Shows.


| From the Philadelphia Public Ledger.
There is an establishment in Chicago
styled the Omitted States Corporation Blu
reau," which reports that the newly COM
pleted corporations IN the United States for
the week which euded last Friday July 10y
numbered 269 with capitalization" Of
S73. S5S, 69S. Carried through the whole
year at the same rate this would make the
annual corporate capitalization Of the
United States nearly $4,000 900, coo. From
this it would appear that corporation max
ing and capitalization imitation is one of the
most active and fertile industries of the
country. So, indeed, it is; but is it SD sure
that it is wholesome indus:ry-good for
the VIII lie public, or even tor the permanent
welfare Of those tirectly engaged in its
Nobody well informed on the subject can
believe that the activity shown in this direc-
tion is anything else than "pernicious
activltyn-one of the very worst in its in
fiuences. II the capitalization which fig
ures SO largely an actual organization
of real capital, that is, money and other
properly, real OF personal, easily convertible
into money-aggregated for the purpose of
carrying out some productive or other
u'eful work-that would be a thing to be
glad of and to encourage. But 1t Is we'll
known that it is not 50 in regard to q very
large proportion Of the grist turned out by
these latter-day corporation mills.
What is capitalization" in the sense In
which it is now SO commonly used by pro-
fessional "promoters'' and projactorss "a.
Y. Z. "H. w M "B. G. w" or others
| see chance to put into their individual
purses much money Of other people, aud
they accordingly get up Company Tie
only "capitalza,iou" needed for that is TO
invest few dollars in the purchase of
charter and rent Cor Office room. Then
| they look around for something to go into
business on-some scheme. 1t may be a
! project to run new railroad from any
| where to nowhere or to secure an option
on q great spread OF unproductive land to
| be bought by the acre and sold out by
the foot; OF the refusal OF a lot of rattle-
| traps Of any kind whatever TO make
the show Of property and business with.
| The whole thing, franchise and all, may
| have a market value of Sl0,0 0O-sometimes
not even that, or the half OF it. The next
step is to have share certificates or loan GER
tiiic tes printed. Then comes the business
of capitalization the main question being
how much If each sort Of certificates is to
be put out. If tle thing Is worth $4,000 Of
| fair money value, they stock IL" for $780,
| 900, aud then "bond it" for another 300, 600
| more-and then you are with your
corporation" and your capitalization"
at is just as easy as lying" and
| LDeY make STOCK ana 'DOuQ' Tor
81, 900 as we'll as 100000 if they
choose Then goes out a prospectus, with
maps and pictures and things and estimates
| of profits aud all that; and in come the "vic-
| Tins" to inquire and get caught and the
"sharps" to "fnvestn These are a medley
group in their variety-some OF them being
simply credulous people-some of th9m be-
longing to the get rich quick" order-and
Others of them being quite as sharp and un>
scrupulous as the "promotersn and proiec-
tors of the corporation and capitalization
schemes themselves.
Il is a serious drawback to the census con-
corning companies, corporations and 'capi-
tall that there is reason to believe, and in
fact to know. that very large percentage
of the returns are fla o / a d "wateredn
after this fashion. How much Is wind
and how much water" there is unfortu-
nately no way to tell with any precision
We do know, however, that with many of
them. when ordinary business pressure
comes upon them, there is no issue but thin
air. and that when Others have to go in to
liquidation" there is nothing left after the
water has all run out
Far from being a cause for qualification
or boasting, the large multiplication of such
corporations. ana the great expansion of
such Capitalization" as motto "a in the
Chicago burfs-, of corporations-the weekly
announceT-4>ts of their increase should be
taken as 30 many warnings and danger sig
nails to be on the lookout.