New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-04-15
DELAWARE CORPORATION Law.
FACILITIES AFFORDED FOR DOING BUST
NESS UNDER IT-cOMPARIsoN WITH
NEV-JERsEY ADVANTAGES

Wilmington. Del. April IA (SpeciaD.-The eyes OF
capitalists In all parts OF the country are now
turned on Delaware by reason OF the noera, W
poratlon law passed at the last session OF tn7
Legislature II il now easy to get char,er 'o'
any kind Of company to do any kind OF ous'-
ness In this State. so far there have peen many
applications for charters. although the provisions
OF the law are not yet fairly understood.
comparison between the liberal law OF New
Jersey and the recent Delaware act SHOWS tha' IL
is much easier to get a charter under the Delaware
law and less expensive, than In New-Jersey. ~
is generally thought that the passage OF me ACT
will result in many concerns coming TO this stare
for charters instead of going to other States the
tax In this State Is one twentieth Of per cent on
the capital stock while the New-Jersey tax Is
twice this The Delaware law Is also SAID 10 Dc
much more compact and more readily understooh
than the New-Jersey law.
1t is easy to obtain charter under the new law.
The proposed incorporators prepare their cnar,er
and file certificate setting forth the object OF the
company. the amount Of capital stock, the amount
of stock each proposes TO take and such other mat
ter as is required by law The fee Is paid ana the
Secretary of State grants the charter Jhe COM
pany can then proceed with business. The law does
not state where the main office of the company
shall be- and does not even proyide tnat me nv
provides that OF the incorporators shall i've In
Delaware ,,,.,, -.
which provides a revenue for the State. The com
panies included are required 10 make rspor, 20
day OF January annually Of the amount Of their
gross receipts from business done In this state IN
the previous year. On this amount of gross re-
cepts the tax is imposed. Failure OF the corpora,
ton to the tax t., two nS Se sns
General shall proceed against such corporation IN
the Court OF Chancery
What inducements the State OF New-Jersey holds
out to capitalists may be surmised from the fact
that the tax on corporations in that State Is and
has been for years one-tenth Of / per cent on
100000 capital, one-twentieth Of per cent on
s50O0.0O0 and $50 for every 100000 for concerns
which have capital of more than 100000. The
States income from Its tax on corporations in
Guiding railroad companies, which are taxed sepa-
raely. for the year ending October 81 1882 is es,i
mated at S,1s6s70. The filing fees in the Office OF
the Secretary OF State amount TO about $4,000
month and these fees collected at an almost
nominal cost to the State.
In 1892 a number OF prominent Jerseymen and
others conceived the idea Of facilitating the organi
zation Of corporations by having trust company
in New-Jersey which should devote itself wholly to
corporate matters and affairs trust company
charter was obtained and the new company soon
became the headquarters Of interpretations In the
State At the close of 1892 about one hundred and
fifty corpora tons had connected themselves with It,
Branches OF the company were established at East
Orange and at Camden. The Corporation Trust
Company of New-Jersey to-day Is said TO represent
total capitalization OF $40 900 900. and the
Trust Company at East Orange Is said to represent
about two hundred and fifty corporations, with ag-
gregate capitaliZao Of about SD00OOOO, while the
company at Camden has in its Office something
Ike five hundred corporations, representing an ag-
gregate capitalization OF &000N,00O.
The State Of New-Jersey In 1895 revised it's cor
poration laws, compelling corporations to have and
maintain principal office within the State of New
Jersey. in which should be kept at all times their
stock and transfer books. and in charge Of which
there should be at all times a resident OF the state
of NewJersey of full age or a corporation author
ICED by it's charter TO act In 1898 the Legis-
lature of New-Jersey passed an additional law re-
quirng every corporation organized under the laws
Of New-Jersey twice year to file statement in
the Office of the Secretary Of State OF New-Jersey,
naming it's principal Office by street and number.
and providing that in of failure so TO do the
individual stockholders should be liable co-part-
ners, and further providing that In case of false
statement the officers should be liable for perjury
and punishable by not less than ten years at hard
labor. This act resulted In the exclusion OF the
tramp and bubble corporations. Apart from
these regulations. there are no obstacles and no
red tape to prevent the organization under New
Jersey laws Of corporations for any lawful purpose.