The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1899-02-03
DEFEND TRUSTS.
Republican Senator Stokes
Says a Good Word For
the Big Combines.
GOVERNOR WILL INVESTIGATE
He Says He May Make Some
Recommendations to the
Legislature Before
Long.
Especial to s.The Jersey city News."1

Especial to ''The Jersey City News."]
TRENTON, Feb. 8, 1s99.-Governor Fos-
ter NJ. Voorhees, said yesterday that he
was quietly making some Investigations
OF his own, with a view of determining
what change in the laws would be neces-
sary. He is now of the opinion that he
will communicate to the Legislature the
result of his findings with some recon-
mendation.
Il have gathered considerable informa-
tion,'' the Governor said, ''but have not
yet digested it. / think that there ought
| to be SOME change, but have not reached
any conclusion as to the character of the
! changes. l treated of the matter at great
length in my inaugural address, and l am
now devoting much time to the subject
for the purpose of ascertaining just how
to secure the changes l discussed at that
! time
There seems to be, in the charges
! that are made that we are too liberal
with our laws, enough to warrant an
| trying to do, but SO much is demanded
| of me that ! do not progress as we'll as
! l desire | believe the State should deal
with the matter in q conservative spirit.
'sof course, if the laws work a hard
/ ship on the people generally they should
he changed. cannot say just now how
q conclusion and it would not be fair to
the Legislature to antic- pate in the pub
hc press what officially belongs to them.
tbs Governor called attention to some
part of his inaugural address in which
ne considered the large corporations and
pointed particularly to this ciause:-
"I here is another subject to which
/ reference can be appropriately made at
this time. for it is one in the proper
soutiaE Of which the e public ga at large
great and Increasing value of franchises
1 possessed and exercised by. corporations
who render public services for pay. Am
In the vast increase in the amount of
nterest-bearing securities and stock is
sued by than.
This increase in value is due to many
causes. Among those that readily sug-
gest themselves are the rapid growth Of
our cities, ths diminished cost of con-
works, and inventions that facilitate and
at the same time decrease the expense
ply public necessities in this State have
been capitalized In recent years at many
times the cost of their property, and
vastly in excess of what it would cost
1T is admitted that the public have
derived great benefit from the growth
of these corporations in the way of bet
ter service and lower. rates, but this
benefit, it Is estimated, is less than it
might have been If obligations had not
been unnecessarily incurred TO pay inter-
limated value of the franchises enjoyed.
1t is not the policy of these companies
to pay large dividends on their stock
but rather to find reasons from time to
time for increasing issues of their bonds
These are often widely distributed among
small investors. and thereby such trans
actions are rendered more secure If the
charges are true, and there are good rea-
sons why past proceedings of this kind
cannot be undone, it is all the more inn
portant that they should be regulated in
the future
State Comptroller Hancock, who is the
financial officer of the State, doubted
the propriety of State officer, particu-
larly the State Comptroller, of discussing
the question whether the existing laws
were just or not. Personally he thought
the laws governing the corporsatlonse or, s. need e4
Jersey protected its corporations which
it had a right to do.
All changes Of the law have been made
In open Legislature, and with full know
ledge of the people after consideration by
the Legislators. New Jersey was in the
advance on the subject and that. he
thought. caused some of the adverse
Senator Edward c. Stokes, of Cumber-
land county, who is now serving his third
leader in that body for six years, has Civ
en- the subject of the taxation of corpora
tions considerable study
"The relation of trusts to the State
of New Jersey" said the Senator. 'is a
matter of a few words This State is in
nowise responsible for the existence of
trusts. They are the product of modern
civilization. and grow out of the tendency
towards large organizations | am con-
yineed that the laws of New Jersey do
not favor trusts above the laws of otner
in other States as well as here. The rea-
son for them organizing here is largely
due to the fact that the corporation laws
drawn, while the laws of New Jersey are
perhaps from all points of view, the very
be best !, II the world no not excepting the En-
THE tendency of legislation in other
States is to model after the laws Of
New !, Jersey, rs 50 far as this subject Is
now moving in this direction, and bill
is being prepared modifying the New
York corporation laws along the lines
of the New Jersey statutes.
THE question of the taxation of these
organized business companies of great
apa bs is ne Of only any and
from the questions of trusts themselves.
This question of taxation must be. Com
the State. Treasury. No nation or State
has a right to extort from, citizen any
more tax than will afford a, sufficient
revenue for an economical administration
of its affairs.
"Ir trusts are wrong they should be
dealt with in a more statesman-like man
If trusts are wrong and have, nc. right
to exist the State has no right to tax
them at all. Otherwise it becomes a
party to the wrong for a consideration
ana a price If trusts have a right to
exist they should be taxed in a spirit
of judicial fairness and not in spirit of
'sThe revenues Of the State of New
Jersey are unquestionably the envy of
less fortunate Commonwealths.~ Our af-
fairs have been splendidly managed. We
have been able through wise and
economical administration, to assist the
several counties in the care of the insane
9TH dam
added to our State school appropriation,
we have remanded back to the taxing
and we are in fair way now to still
further assist in the relief of the burdens
of local taxation by paying part of the
State school tax