The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-03-08
MOTHER OF TRUSTS
LIBERAL LAWS OF THE STATE
MAKE 1T FAVORABLE TO
CORPORATIONS
STATUTES DATE BACK YEARS
No Changes Have Reen Made I'm ITS
Laws Regulating Combinations
of Capital for u Quarter of u
Century-StOckhOI Are Not
Liable-state Has Ten Thousand
Corporations on It's Rolls.


Corporations on It's Rolls.
TRENTON, N. j., March New
Jersey has been advertised far and near
as the cradle Of trusts, but IN one sense
at least this cannot be said to be true,
as very few of the great combinations
OF business interests Incorporated here
have their inception in this state, nor,
except in few instances, have they their
place or business In any Of the cities.
The actual primary reason for their
coming to this state is the fact that
the laws under which they are incorpo-
rated are more liberal in certain ways
than the laws Of any other common
wealth in the Union
A company or syndicate Of any char
acter, outside Of an avowed gambling
scheme. Of course. has but to send
certificate to the secretary OF states
office, with the official fee, and if there
Is, no other Jersey corporation bearing
a similar name, or very nearly similar
the new concern is given a. legal exist
ence at once. There Is no limit as to
the amount of capital stock or the ex-
tent of powers. A corporation to carry
on the tobacco business may have in
serted In Its charter a clause empower
Ing 1t to construct docks, erect bridges
deal in real estate or do almost any
thing else under the sun. All the state
asks is that the filing fee be paid and
trust or no trust, 1t goes.
The fees for filing a certificate Of in
corporation in New Jersey are much
more moderate than In most other
states. The fee in New Jersey on all
corporations with an authorized capital
stock Of more than SIZE, 200 is 20 cents
on the $1,000, or 5000 on $1,OOO,OOO. In
New York state the fee amounts to
$1.250 on the $1.0O0,000.
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 its corporation laws. AS a
result the lawyers doing this character
of business fight shy Of the Empire
state. On the other hand the corpora
ton laws Of New Jersey have not been
of business fight shy of the eempirs
materially changed since 1875, so that
the states position regarding corpora
ton legislation has come to be regarded
as permanent. For the last fiscal year
the state received in fees for filing Ger
tificates Of Incorporation the sum of
$4,000. . e.s--..
=, NOT INTERPRETED WITH.
After paying it's filing fee corpora
ton is not interfered with by the state,
SO long as 1t makes a return to the
state board of assessors of the amount
Of its paid up capital stock. The state
exercises no supervision whatever over
its corporations the companies being
required simply to make the return
mentioned above and to furnish an
nually the names of the officers and the
board Of directors elected. On the re-
turn made to the state board of asses
sors the franchise tax Is levied. The
tax is one-tenth Of 1 per cent on the is
sued capital stock, up to and includ-
ing 100000, and one twentieth Of
per cent on the capital stock between
100000 and $4,000, 900, and $50 per an
mum per $1,000000 on all III excess Of
100000. This franchise tax is levied
against all companies incorporated I'M
der the laws Of the state with the ex-
ception Of telegraph, telephone, cable,
express, gas, electric light, parlor. pal
ace or sleeping car, life. fire, marine,
live stock, casualty or accident insur-
ance, oil or pipe line companies, rail-
way, canal or banking corporations,
savings banks. cemeteries or religious
corporations, purely charitable or edu-
cational associations. or to mining or
manufacturing companies. at least so
per cent of whose capital stock is in
vested in mining or manufacturing
within the state. No statement of re-
ceipts or disbursements is required to
be filed. In many Of the states the cor
poration laws require the filing of such
statements.
Another feature of the corporation
laws of New Jersey that appeals to in
vestors in corporations Is that stock
holders are not liable for the debts of
the corporation beyond the amount of
the subscribed capital stock. In some
states stockholders are liable for double
the amount subscribed, the same as the
law regulating the liability of the
stockholders in national banks. There
are only few states that have anti
trust laws.
PASSED A NEW LAW.
law was passed last year that was
proclaimed by the enemies of corpora
lions to be in favor of the multiplied
ton Of trusts and combinations Of all
kinds, and it was predicted that as a
result every corporation Of any magni-
tude in the country would hasten to
New Jersey to file it's papers But the
law did not go as far as it was claimed
One provision, to be sure, rather justi-
fled the charges made. Other states
cannot now get at New Jersey .corpor-
atfons for taxing purposes. but corpor-
atoms filing papers here must main
tain an office in the state. In order
to make obedience to this new law
as economical as possible great corpor-
atoms have combined in renting an
Office, where a small force of clerks Is
kept so that whatever business the re-
quirement makes necessary may be
promptly transacted. This new provi-
sion is q great advantage to the state
beard Of assessors and the comptroller.
Before the passage of the law much
difficulty was experienced in locating
companies for the assessment and col
lection of taxeSN The law provides that
every corporation must keep at its
Office the transfer books in which the
transfer of stocks shall be registered.
and the stock books, which shall con-
tain the name and address of the
stockholders. the number of shares held
by them respectively. which shall at all
times during the usual hours of bust
ness be open to the examination of ev-
cry stakeholder"
THE STATE HAS 10000.
1t is estimated that there are upward
Of 10000 New Jersey corporations. Each
year the governor. by proclamation,
wipes out from 300 to 900 because of
their failure to pay taxes. Last year
575 failed to pay, and forfeited their
charters under the governors procla-
nation. OF the 10000 corporations only
about one-half are subject to the state
tax. the others being worcestershire be-
-