The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1899-01-19
WHY TRUSTS CONE HERE
Many Take Advantage Of
the Incorporation Laws
That Have No State
Interest.
ABSORPTION OF JERSEY PLANTS
Laws in This State More Libe-
raj Than Those Elsewhere
Some Big Combine
tons.
ABSORPTION OF JERSEY PLANTS
Especial Despatch to the Newark Even
ing News.")

Especial Despatch to the Newark Even
ing News.")
TRENTON, Jan. 1t, 1S99.-The focking
of all the big trusts of the country to
New Jersey, for the purpose of gaining
a legal existence under the corporation
laws, has caused the State to be adver-
tised far and wide as the cradle of
monopolies. Few, if any. of the big
monopolies nave their inception in New
Jersey, but they are led to incorporate
under the States laws in several ways.
One reason for their coming here is the
liberal character of the laws. A company
or syndicate of any character, outside. of
course, of an avowed gambling scheme,
has but to send a certificate to the Sec
rotary of States office, with the official
fee, and if there is no other Jersey cor
poration bearing a similar. or very nearly
similar, name, the new concern is given a
legal existence at once. There is no limit
as to the amount of capital stock or the
extent of powers. A corporation to carry
on the tobacco business may have inserted
in its charter a clause empowering it to
construct docks. erect bridges. deal in real
estate or do almost anything else under
the sun. All the State asks is that the
filing fee be paid and, trust or no trust. it
goes.
Then, again, the fees for filing a certifi-
cate of incorporation in New Jersey is
much more moderate than in most other
States. The fee in New Jersey on all cor
porations with an authorized capital stock
of more than SIPS, coo is twenty cents on the
S1.e00. or $500 or the $1,000. 600. In New
York State the fee amounts to about $3.50
on the 1000, COO. 1t is in New York that
most of the trusts are born. and for many
years past the Legislature of that State
has been making changes of one kind or
another in the corporation laws. AS a re-
suit, the lawyers doing this character of
business fight shy of the Empire State.
On the other hand. the corporation laws
of New Jersey have not been materially
changed since 1875. so that the States
position with reference to corporation
legislation has come to be regarded as
permanent.
Because of these tempting conditions
the corporation lawyers of New York City
have constantly doomed New Jersey as
the most advantageous place TO incor-
porate. The State has not only received
the benefit of the drumming up of the
lawyers. but of big politicians. like Croker
and Plat, who are very important factors
in the manipulations of some of the
trusts. AS a result of all these influences,
the New Jersey corporations have been
increasing for half a dozen years past at
the rate of one thousand to twelve hun
dred a year. For the last fiscal year the
State received in fees for filing certif-
Gates of Incorporation the sum of s163. 600.
After paying its filing fee. a corporation
is not interfered with by the State, 50
long as il makes a return to the State
Board of Assessors of the amount of its
paid up capital stock. The State exer-
cises no supervision whatever over its
corporations the companies being required
simply to make the return mentioned
above and to furnish annually the officers
and directors elected. On the return made
to the State Board of Assessors, the fran
ehise tax is levied. The tax is one-tenth of
one per cent. on the issued capital stock.
up to and including $4,000, OG0, and one
twentieth of one per cent. on the capital
stock. between $1,000. 900 and s.. 900, GOO, and
$50 per annum per million dollars on all in
excess of s., COO. 600. This franchise tax is
levied against all companies Incorporated
under the laws OF the State, with the ex-
ception of telegraph. telephone. cable, ex-
press. gas. electric light, parlor, palace or
sleeping car, life, fire, marine, live
stock, casualty or accident insurance, oil
or pipe line companies, railway. canal or
banking corporations, of savings banks,
cemeteries or religious corporations, pure
ly charitable or educational associations,
or to mining or manufacturing companies,
at least fifty per centum of whose capital
stock is invested in mining or manufactur-
ing within the State. No statement of
receipts and disbursements is required to
be filed. In many of the States the Cor
poration law provides for the filing of
such a statement.
Another feature of the corporation laws
of New Jersey that appeals to investors
in corporations, is that stockholders are
not liable for the debts of the corporation
beyond the amount of the capital stock
subscribed. In some States stockholders
are liable to the extent of double the capt.
tai stock subscribed, the same as the law
regulating the liability of stockholders IN
national banks. There are only a very
few States tina have antitrust laws.
Tt cannot be said that the law of last
year made it any easier for companies
to incorporate under the laws of the
State. About the only thing done by the
law of 1898 was the preventing of other
States from getting at the owners of
stock of New Jersey corporations for the
purposes of taxation. One thing accom-
plished by the law was TO make it COM
pulsory to maintain an office in New
Jersey. where service could be had on the
CORPORATIONS. This is a great ADVANTAGE
to the Attorney General, State Board of
Assessors and the State Comptroller in
their dealings with the corporations. Be
fore the passage of the law much diff
cultv was experienced in locating corpor-
ations for the purpose of assessment and
collecting the taxes. Under the law of
last winter every New Jersey corpora
ton must keep at its office in the State
ssthe transfer books in which the transfer
of stock shal be registered, and the
stock books, which shall contain the
name and address of the stockholders,
tie number of shares held by them, re-
spectively, which shall at all times dur
ing the usual hours for business be open
TO the examination of every stockholder."
A great proportion of all the companies
formed in the State file their certificates
of incorporation through Lawyer James
B.. Dill, of East Orange, and nearly all
fhe big concerns AVE their New Jersey
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