The Morris County chronicle. [volume] (Morristown, N.J.) 1877-1915, 1898-03-18
SENATOR vREeLAND,s POSITION.

land a0ly Defined his position on the
question of trusts and corporations, in
his argument for the several bills intro
duced by him, amending the corporation
act. His speech was sound and forcible
and those who have been attacking him,
accusing him of being corporation man,
had facts presented to them that could
not be answered. He showed beyond
the shadow of a doubt that he was con-
trolled by no one and that he at all times
legislated for the best interests of the
people at large.
1.-The result of our corporation laws
Senator Vreeland said has been to secure
such an income from corporations or
gained under our laws as to avoid the
necessity of direct tax in this State
upon the citizens of New Jersey.
About the year 1892 the revenue from
corporations in this State began to fall
off because of an attack, direct, vigorous
and aggressive, made by the State of
New York upon New JERSEY CORPORA
tons doing business in New York State.
In 1892 the New jersey Legislature
first took steps to protect its cor
pOrations against New York at
tacks, and in 1896 the corporation
laws OF our state were wisely. care
fully and thoroughly remodeled and re-
vlsed especially with a view to protect
our corporations against an attack by
other States. This revision substantially
re-enacted the provision of the laws of
1872. The revision OF 1896 resulted in an
increase IN the income to this State from
corporations by something like 500 900
per annum additional. But in 1897,
New York, which had long looked with
jealous eye on New Jerseys prosperity
and her own loss. made that vicious and
populistic attack upon all foreign cor
porat1ons. known as the Lexow Act of
the State OF New York. and which was
especially aimed at New Jersey corpora
lions doing business in New York.
This would have deceased and de-
stroyed the revenue of the State of New
Jersey derived from corporations; which
in the year of 1896 had been the sum of
1857 ,655.25. The Lexow Act was con-
demned not only by the papers of our
own State but by the intelligent press
of every State.
"The Legislature of the State of New
Jersey, ever quick to protect within the
bounds OF propriety her own creatures
and her own citizens, promptly passed
the protective act of 1897, which multi
he'd the force of the Lexow Act of New
York so far as it intended to interfere
with and destroy foreign corporations.
cat the beginning OF 1897 another
effort was made by the State of New
York to drive out New Jersey corpora
lions doing business within her borders
by creating double tax upon all New
Jersey corporations and upon the stock
holders of New Jersey corporations who
were residents of New York or New Jer-
sey, provided they were doing business
in that state and subject to the service of
tax notice therein. The New York tax
authorities first took every citizen of the
State of New Jersey whose business ad-
dress was disclosed by the statement
filed as being in New York and served
that New Jersey resident with anotice of
taxation upon every New Jersey COM
pany in which he CHANGED to be a direc-
tor or stakeholder irrespective of the fact
whether the New Jersey company did
any business in New York or not.
'sThere was no claim of legality for
the levy of this tax. 1t was simply a
case where might made right, and it was
simply an endeavor to drive and force
out New Jersey corporations from New
York, or in other words an endeavor to
destroy the income of this state, which
was IN 1895 something over $500, 900 and
last year nearly $1.0O0,OO
ITO remedy all this bill was intro
duced into the Senate to render it unne-
cessary for residents of other states or for
residents of this state who did business
in New York to state in their annual re-
port the fact that the New Jersey resi-
dent did business without the state, or
the fact that the nonresident of the state
lived elsewhere than in New Jersey.
I'm conclusion permit me to disabuse
the mind of any one that this measure is
other than law endeavoring in five out
of six points to compel a more rigid OBJ.
servance of the law of this State by cor
porations, to strengthen and solidify the
several safeguards we have thrown
about companies by compelling them to
become known organizations, by COM
pelliDg them to fairly pay their taxes,
by compelling them to fairly disclose
the personnel of their organizations.
While this is desirable and must be
enforced, yet 1t seems to me that
it is perfectly proper that these cor
porations which are creatures of our
own state should be protected by us
against any Unjust imposition by foreign
states. and especially against the pub
licly announced hostile tax of the state of
New York in an endeavor to force New
Jersey corporations out of New York, in
an announced. endeavor. to destroy the
income of the State of New Jersey"
Mr.. Vreeland's speech was conceded to
be one of the most forcible delivered this
session. Senator DAILY made rambling
answer in his old time spread eagle way
and made as much political capital out
OF the matter as possible. Senator w.
M. johnson, however, sealed the doom of
the measure by announcing that he could
not vote on the bill because of a minor