New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-02-18
TAXATION OF CORPORATIONS.
TERMS OF THE BILL INTRODUCED BY
SENATOR BRACKETT
Try TELEGRAPH TO THE rRIBUNE.l

Alhanv Feb 17-Great public interest is being
shown in the bill introduced by Senator Bracket
yesterday. relation to the taxation Of corpora
lions, because of the fact that 1t was prepared at
the suggestion of Governor Roosevelt by Professor
jerks. of Cornell University, and also member of
the National Industrial Commission.
A synopsis of this bill appeared In Albany dis
patch The Tribune fortnight ago. but some of
it's terms have been changed All kinds Of
porations may be filed under the act, except those
to conduct a banking. insurance railroad or trans
portation business. The stock books and transfer
books of the companies organized under the act
must be kept In this State for the inspection OF
stockholders. of the purposes Of the act Is to
give greater publicity to the affairs of corpora
lions The powers of the corporation must all be
stated In the act Of Incorporation. The organiza-
ton tax is made one-ffteth of per cent, which Is
itself reduction in cost of organization, the
present State being one-eighth of l per cent
II any of stock is proposed two-thirds OF
the stockholders must acQuiesce In the issue Four
hfths OF stockholders must agree to new classes
of stock and a stockholder who does not give his
consent can force the purchase q his stock at an
reorganized under the act. 1t need not pay the
organization tax Foreign corporations can can S BE- IN
One of the directors of corporation must De
One Of the most prominent provisions of the act
is which authorizes the stockholders or a cor
poration TO elect auditor OF Its accounts
stockhoider is TO entitled TO know OF contracts
the privilege Of examining the minutes OF oaFect,
ors' meeting The corporations are authorized 10
bentures and are also authorized to give voting
powers to bondholders and the owners OF de-
bentures. -.
nent Of its par value in cash, unless. before the
stock is issued a contract is TO be filed In the
registers office of the company fully and truthruy
dsclosing In detail the considera ton for which the
sock IS issued whether for property, service or
otherwise In case any stock Is issued for a con-
iaroton of her than cash. each share OF such stock
is have stamped across It's race stateineh! tnas
issued accordance with the contract ana
The Droportfon of stock so issued Where the whole
anifaI of a corporation has been paid in, and the
canitai paid In Is insufficient TO satisfy It's debts.
eapfb stockhoider is to be required to pay on each
share held by him his proportion or the amount
necessary 10 satisfy the debts.
No loan is be made 10 a stockhoiuer any
oornoration Is 10 have the to hold the stock
is 70 make dividends except from the net profits
from business. DIVIDENDS may De pslo
sen1isnnualy or quarterly on preferred stock, and
. NJ amount on the common stock without wait
ing for the end OF the fiscal year; but at the END
81 the wear after the payment OF dividends on the
y, raSarrsd stock the full amount of the surplus
Earnings may be paid among the holders OF the
stock. --.o-.. -. ,zz,,,.,.
f frandnlent prospectuses or advertisements, so as
% nrotact innocent investors. Every promoter is
ra6 70 have a fducary relation toward com
80. ~ which he is engaged in promoting, and he
l. not allowed 10 sell his own property to COM
unless shareholders are MADE fully aware
r1onay ar stock received by him in connection with
r. 33ror,otion of the company except with the
nn.r, ~ tbs stockholders Accurate books OF ac-
iiat IA me shareholders and balance sheets
are 10 he mailed to each stocknolder ANNUALLY;
SonnIete annual reports are required 10 be filled
~ - cornorations with the Secretary OF State.
r. ranort 10 include the stockholders balance