The times., 1899-06-19
A NICKEL TN THE SLOT
And UP JUMPS A TRUST
Delaware to Rob New Jersey
of Its Business.
Charters for Octopus Plants Gran
ed With Great Despa ch.
A Recent Law, Enacted by the LeEis-
lnture to Promote the Develop
mcEt of Corporations.

The first tangible result of the trust in
vesiigation now being made by the Indus
trial Commission in this city comes from
Delaware. in the shape OF a brand new
company, incorporated for the purpose OF
organizing trusts and obtaining charters
for corporations in that State.
'The Corporation Trust Company of
Delaware" which is the suggestive title
of this new enterprise. is incorporated
with an advertised capital of S100. COO. and
among its list of directors are the names
of former Senator Gray, former Governor
of the State William T. Watson. and
many other prominent politicians and capi-
talists Of that State.
Its prospectus holds out alluring in
ducements to those who are desirous of
forming themselves into trusts, and re-
cites that the recently enacted corporation
laws CT Delaware are even more liberal
than those of New Jersey.
1t would SEEM" said a prominent anti
trust witness who recently testified be-
fore the Industrial Commission, ''tha, New
Jerseys monopoly in granting cheap and
convenient franchises is to be broken.
Delaware statesmen have gazed long and
longingly on the large sacks of revenue
which have been absorbed by the Mosquito
State through granting franchises 10 wa
tered and other corporations. and they
have hied them TO their capital and done
likewise. only more so.
These Legislators have also been observ-
ers of the principle on which trade is
cornered. They have argued Delaware is
a small State. she does not need very
large reyenue-we will cut prices.
As a result of this the new company.
which is TO be the middleman in this new
enterprise. advertizes that the fees viii be
only three-fourths of those charges by New
Jersey. Also a cut of one-half is made in
the annual tax.
''0ther valuable considerations to in
corporators. and advantages over New Jer-
sey are given, stockholders and directors
may hold their meetings wherever tEey
please, and need never meet in the State
of Delaware. New Jersey stockholders
must meet in that State.
The original stock and transfer books
which in New Jersey corporations must be
kept in the State may be Kept in or out
of Delaware, in the discretion of the COM
p2ny
The examination of the books by inter
meddlers is much more difficult under the
Delaware law than under the laws of any
other State.
ne ndDlllIg OF lue StOchnOluGF Is
absolutely limited when the stock has once
been issued for cash. property, or services.
Stock may be issued in compensation
for services rendered, and in the abence
OF fraud in the transaction, the judgment
of the directors as 70 the value cf sus h
services is conclusive. In New Jersey,
authority is given to issue stock fo- prop
erty. but not for services.
In certain important classes OF CORPORA
tions, as, for instance, railroad, railway.
telegraph. telephone. cable. electric light
steam, heat. power, gas. oil. pipe, or sleep
ing car companies, the advantage is sull
more marked.
The annual report of a Delaware cor
porston is required 10 give no secret OF
confidential information
The certificate need not show. nor nesd
public record be in any way made OF the
amount OF stock subscribed TO by any in
corporator.
The above inducements. continued
the speaker, ARE the evils which have
been argued against most strongly by thoze
who are opposed to trusts, and in making
the way easy for the organization OF un-
limited capital, with no responsibility any
where. and with freedom from official in
spsction, Delaware has certainly taken the
lead and will doubtless succeed in build g
up for herself even more of an unenviable
reputation than New Jersey"