The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1899-05-08
M+
JERSEY TRUSTS.
The Revenue From Them
Grows Bigger Every
Year.
"
PLAN TO DEFEAT THE STATE
Big Corporation Detected Try
ing to Evade Payment of
the Proper Fee.
the Proper Fee.
Especial to ..T6e Jersey city News.yl

Especial to 'The Jersey City News.'1
TRENTON, May s. 1Se9.-Articles of in
corporation of the General Carriers Com
pany, with an authorized capital of S2O,-
O0c. 00e. were filed with the Secretary of
State on Saturday. The company is
formed to hire and traffic in cabs, car
riages and vehicles of all kinds. The in
corporators are Peter II. Evans. James
N. Clarke, Richard c. Ellis, Frederick c.
Ellis. Frederick Gentner and Robert j.
McKinstry of Camden. George S. Gra-
ham of Philadelphia is counsel for the
company.
The Universal Fuel Company, author
lied capital 81, 00o, 600. was incorporated.
The company is formed to operate fur
naces, ovens and fuel distilling plants;
in fuel of all kinds The ~ncorporators
are Charles A. Brown, George L. Tagg
and Max W; Zalel. 60. cou-
pany was also Incorporated with a capl-
tai stock of LOCO, 600. 1t Is authorized TO
manufacture and deal in glass OF all
special feature of the business. The in
corporators are William H. Brearley,
Frederick B. Hyde and Kenne K. Nc
Laren.
The Continental Tobacco Company has
filed a certificate of payment of capital
stock amounting to So. 400, 900, of which
ST., 7oc, 900 was in preferred n sI.,,oV,UV
corporated on December 10 last, with an
authorized capital stock OF 0W,V wv,
which was increased last month TO SlVg,-
600. 900. The total capital stock issued by
this trust up to- date amounts to ssz,oso,-
20.
The ease with which the Incorporation
of companies is effected in New Jersey
and the paucity of the questions asked
has led the agents of several concerns
with enormous capitalizations 10 attempt
to file their charters by Jhe payment OF
tary of States office, VIZ, S25. Every
one of the attempts. however, proved a
failure. John Brooke, the corporation
erandi of it is Illustrated BY an incident
which occurred a few days ago when an
agent presented a charter for a company
having a capital stock of 100000 Con,
yerblage, however, was a cleveriy word
ed clause empowering the Board OF Oh
reetors to increase the capital stock al
their discretion 10 S10e. 0W, 900. This clause
was so phrased that had the charter been
accepted the ompan could have MAGE
the huge increase OF capital stock WITH
Corporation Clerk Brooke refused both
the document and the $5 fee and the
agent a day later appeared with another
charter empowering the holders of the
common stock to make She increase, but
this charter was also rejected. The agent
made a strong argument TO prove thae.
his charter was properly drawn, ana
Clerk Brooke submitted It to Attorney
General Grey, who acknowledged that It
was skillfully drawn and might be all
right, but advised Mr.: Brooke not to
accept it unless the full fee was forth
coming. Companies Incorporating with a
Capitalization OF $780, 0p. 300 have to lay
down $50, 900 in cash or a certified check
for the mount. neither time nor dis
count icing allowed. The agent carried
the charter away with him and it has
not been heard from since.
The fees received by the Secretary OF
incorporation amounted to S53, 05S. The
State Tax Assessors will report on June
5 concerning the amount Of tax which the
corporations VIII have to pay on the stock
issued by them. 1t is only an actually
issued stock that tax is levied on and
therefore in very many instances the tax
bills will be light The total sum will
be large. however.
The Immense influx of trusts and cor
poratiOnS to New Jersey presents an IN
teresting subject relative to taxation and
the revenues. of the State. During the
past year the corporation business of New
Jersey has attained amazing proportions
and a ~princely revenue is now being re-
ceived from the mere issuing of charters.
During the month of March, for Example
sis, 600 was received from this source
alone. but with the big trusts formed
during the past few days and the still
there is every prospect that this record
will be broken during the month of May.
During the six business days of last
week, the filing fees in the Secretary OF
States Office amounted to 5 ,05S, or an
average of nearly $4,000 a day. Last
weeks receipts If continued at the same
ratio for a year would net the State up
wards of 81, SOC, 600, which would at least
be sufficient to pay a few of its Incidental
running expenses.
If the corporation business continues
during the next three weeks at the rate 1t
has been going during the past four
months. more companies will have been
chartered in the State during the present
year by the first of June than were form
ed during the year 1895.
However, the mere charter fees that are
received by the State Is comparatively a
side issue when the annual tax on these
companies is considered. Miscellaneous
corporations, or those organized under
the General Corporation act OF New Jer-
sew are taxed annually on their total IS
sued capital stock. This tax amounts 10
one-tenth of one per cent. on. the nrst
three millions of capital stock, and II
he company has a larger capital stock
than this, one-twentieth OF one per cent,
stockup to five million and so on every
additional million. In the case OF the
Continental Tobacco Company mentioned
above. the filing fee was $40. 0O0, cog, and
the annual tax on its Ss2 VVo,eoo OF issued
stock will amount 20 $500
OF course it is not anticipated that any
thing like the total authorized capital
stock of many q tne gard be i jssyed hat hit
even If a comparatively small proportion
is issued, the State will receive a princely
revenue from the annual tax. NO ade-
n1,ste estimate of this amount can be
MADE until the returns are compiled by
the State Board of Assessors. but the GER
tifcates of payment Of capital stock now
In the Secretary Of states omce 1rSlcaee
turns from the State Board of Assessors
for the year 1898 will be made to the State
Comptroller on the first MONDAY IN june,
b,It most of the largest trusts wall not
he incJ11ded until the report of the follow
ing wear. as the tax Is not levied Until the
Genital stock is actually issued.