New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-01-17
CURIOUS CORPORATIONS.
A TALK WITH A MAN ABOUT CAPrTALIZA-
TON or cCUENES

TON OF SCHEMES
The nullen-Maker who was quoted in former
article makes a business Of supplying news Of the
organization OF corporations In all the States Of
the Union issuing daily report similar to the
which supplies bond news previously described Aside
from any mere commercial value which these bull
lcns NAV have. the Information collected has gen
eral significance OF the suggestions and illus
tratIons which they furnish have interest to news
paper readers.
1T Is invarable rule" said the Bulletin Maker.
that the most practical enterprises are capitalized
at the smallest figure and that the most chimencal
Of schemes attempted to be noated with the largest
amount OF supposed capital. When ncorporators have
faith in the value OF scheme they name small a
capital as they reasonably TO save capitalization
fees and local taxes on capital. When they project
something not quito substantial in description they
put on bold face and name big figure as the capital
stock. The first class Of projectors organize usually
In their own states matter how large the fees and
heavy the taxes because OF the fact that corporation
obtains credit when 1t organizes in the same State In
which it is 10 operate. Vice versa the chimerical
organizations incorporate in states which require little
actual capital to be paid In ana charge light fees
for articles OF Incorporation OF course such com
panles suffer in credit from this system OF organizing
in one state and doing business In another. should
not say that this implies fraud even weak
ness but investors look upon 1t with suspicion though
present time many corporations intending to do bust
in New York State being incorporated In New
Jersey and Illinois. They driven TO this not so
much by the heavy fees and taxes imposed by the New
York laws adopted In sol By the requirements as
10 annual reports The form OF annual report TO the
Secretary OF state In force In New York requires
II strictly compiled with, an exposure of corpora
TONS entire business.
corporations vary I'm many curious ways according
TO locality The state laws account for this in some
measure, but not entirely. In the New England
states corporations with limited capital In view OF the
practical character Of the enterprises are the rule
Cotton mills often started there with paid-up
capital small as TO appear ridiculous In the MID
die states especially New York, Pennsylvania and
Ohio tho same general principle prevails but good
many corporations with higlsounding names and big
rehabilitation arc recorded IN New jersey. Indiana
and Illinois to be the States in which the doubt
full corporations with big capitaizations were orgah
red but Indiana has lately added largely to her ices
for Incorporation. and Illinois and Colorado have
monopoly OF the corporations with suspicious t''es
and purposes and heavy capital stock on paper.
Chicago and Denver the places OF business nameh
By more chartered corporations with apparently mex
bauStibIa captaI than any two other cities in the
country.
.The greatest number OF corporations organized IN
the past year have been in peculiar lines They nave
been OF industries In which the raw material consumed
Is supplied By nature. Hundreds-t would hardiy DC
exaggcratlon 10 say thousandSof electric Hgh neat
power and railway companies have been organized ~
the states during 1891 In almost every instance the
capital stock named has been insignincaht. Coh-
NAMES to furnish cities Of 10000 inhabitants with
light heat and power have been started with from
go 900 TO $4,000 capital. The most AMBITIOUS oi
these of which have any record was the Ne"-iork
Electric Railroad Company. incorporated IN New
Jersey however, with capital OF *2o'ooo OF "he"
Hta,., N
one tenth was actually paid in, ana which proposeo ~
bud and operate surface. elevated and underground
electrical railways all over the country Irohos
electric street railway companies TO build and operate
covar,I miles OF road start a basis Of only S4ooo
or 80 600 a mile. rhe plant Is nj that such compa
ME, have to provide. There Is no raw maternal 10 Dus
and The labor IS chiefly mechanical. III hiost Ha"u
f,cturcs the raw material and labor are the chie items
NJ cost I'm the electrical business there Is nelr VI
these original costs TO eat up profits or to require large
c,ptal originally. Many hu1drcds OF irrigation com
NAMES have similarly been started with abSuruV Sah
Contradictions The reason Is that the plant only has
IN be nroyided: These irrigation companies Jam
mountain stream, accumulate the water winch ha'uo
p-ovides IN the wet season and dole IL OH, u INC '
lands I'm sluccs during the dry season. some ol .eSo
IRRIGATION districts as they called are bonded FOR
very large amounts especially in California D't rs
rule private corporations undertake the WORK Oh IiiSi
lion as business with small capital In san Diego'
over i42 900 acres irrigated By three dstrc's
bicb have been bonded for million or uoiiars'
Pint in WASHINGTON and Oregon and Idaho where OH
ferent system prevails, corporations are iorheu WIN
from 900 900 10 $4,000 capital TO collect water anu
,rr,aie whole counties. Somewhat akin TO the ecc-
tricol and irrigation corporations are large huoof
NJ fucl manufacturing companies which MAKE an ar''
eci,l incl These companies not only do not have TO
Inv rho raw material but actually paid 70 cart IL
away from coal mines. The raw material USED Is inc
coal dust which accumulaes at the mines In immense
heops and which must be removed from time 10 time.
Somebody has discovered process by whlch ts iciuse
~ the mines can he compressed Into II bnck WHOM
burns wilho odor or flame In stove whch does ho'
require a chimney to create draft
There are two classes of corpo'auohs "'on' io'
SOME reason or other capitalize III inc iarEes' ero'S
amount OF camtal stock with the smallest possioe
a,ua mar share Mining companies by the hundreds
bovs heen INCORPORATED this year In tho Wes largely
in snIt Lake City, Utah. and AT denver 'oi'' WIN
conol stock ranging from &lOooOoo To so'ooo'po'
whose shares have face value Of ri or - olly lhse
are not merely prospecting COMPARES but suo''a''
,io and actively ope.tlng companies with mines open
and mills running. Ii il not uncommon 10 sc' sro"P
=, mines from which ore has been taken for some
fine consolidated with big capital divided INTO ooilsr
shares. building and loan a,'oCiaeO''s ""Nc 'P'"e
nm I'm every state In the Union With capl'nNIaho"
of from 800 600 SjOO0,0o0 In 81 shares 'mc"so'
which takes ;he cake rs incorporation. has one or
two with SJOOOo,ovJ cd'' '"~-N ~ ''"'i''
mid associations. the members oi "h'h hre me'"a''e
nd ,,hc,4uo mon who combine their savings IN tIeSe
oon associations TO draw upon tie inds Ill Duiu's
honos with mort cages and other like eAasperatihg
decorations and improy ementS upon them. should
v That there orr more OF these building and loan'aS'o
cation, incorporated in this country than Of any oher
form Of cooperative business
Another class Of corporations which nave sprung
mn durne the wear are engaging In the Transports
don bislness They build and lease to firms or ndl-
4a,ols freight ears specially arranged 10 carry the
erticulnr class OF goods In which tc lesser Is engaged
II is a new development Of the 'portation business
we l,vo become familiar with under varous titles ;s
freight lines Its pecullartes are that II rents us
cars. with the privilege OF ANY railroad Inc III INC
oputry and for the time OF the lease tie cars are the
,raveipe storehouses Of the company using Them
cold sin,nre