Indian chieftain. [volume] (Vinita, Indian Territory [Okla.]) 1882-1902, 1900-08-23
FORMING A CORPORATION.
Large Fees 20 omcials Hass creatsa
= RivaIry ln Some EasteFA
states.

Large rees 20 omoials Hasa creatsa
= RivaIry ln Some EasteFA
states.
Dazzled with the revenue New jff.
sey was enjoying by creating cQrporuc
tions TO do busineaa j this and btber
states, rarely the state that created
them, Delaware concluded TO enter
into competition for the profits Of sell
ing charters, SAYS the New York Jour
mel OF Cpmmerce. II reqplred 90
capitaij n Involved no Flax, end
the Possibilities weto immtbef.
Therefore, peiaTnre enacted iaN
cutting under New Jersey % Ng
scale Of charges, and Offering
increased facilities for the, Intro.
duction Of wind or water or Any
other cheap substitute for money into
the capital Of corporations. In order
TO attract promoters the law qliowed
stock TO be Issued Ia return tor per.
sonal services at any valuation the a.
rectors might put upon them. The cue
tomary provisions regarding the resi-
dence Of majority bf De directors,
the iocatloA Ok the head ONCE. the
keeping, Of the books and records and
the holding Of ahhuai iiieetlneu Wthln
the state were relaxed OF removed In
order TO make II as convenient a. pos
sible for a corporation soPretepd 20 b
Delaware corporation, though itt u,
Teotors and officers and otices cpd
buAi Ainess were entirely outside the
state.
10 make things gtIli easter, Q cvpr
papy was cfeated TO gsk cbartefH IN
Delaware for concerns outside Of ths
state pnd 70 represent Item IN the
state for tho very few ahd unimpor-
tant fynotiohs they were stfil expelled
70 perform there, IN order 70 give color
TO the ella lp Of being beiayat coT1ot-
ations. The cheaphesy Of the elksts.
city Of Delaware charters was advets
tised like resdy-mpde clothing or pat.
ent MEDICINES, and the state expected
TO be q veritablo Gretpa Green Tor cor.
porstions that were bqahfui about e.
fecting their union IN the place Of their
residence.
The results have been dfsappointing.
The capital Of the March cofporati tiohs
exceeding $1,000 eac , that hare
been tabulRted Ia our cQiupahb sxeeed-
ed SS0o, 900 900, Of Which New Jersey
got neariy es0Q, ,60o,0b end DelawnTd
only Sa1,60o,00d. The Capital OF the
April eorporptions waa ss2S.oooI 900. of
which New Jersey got seas. 900 and
Delaware only s1,6o0,ooo. II we omit
two abnormally large corporations
from the New Jersey 1st the capital In
eorporated In New Jersey would stijl
be about is times ps great es the fPP-
ital Incorporated In Delaware. Not
even cut rates and special terms to
promoters have been effective Ia trans-
ferFing this business from New Jersey
TO Delaware.
But there Il stul greater cRyse Tor
modification IN Delaware, The CAP
ital iucorporat TED In West Virglpie tka
about third greater than that -;
corporated IN Delaware 10 March. and
nearly three times as great az Ihet in'
corporated in Delaware In April. Vest
Virginia has been for yearg IN the buAl
mesa Of creating corporations on e,c
tremely easy terms and 20 question:
nsked. In fact, West VirEinip charter
at one time becsme sotnsthipg pt
drug on the market, and TIE boon q
New Jersey charterz wbloh begA
few years ago, was due 10 ths fesilpl
IN the financial world thai he Ran3l
Of some other state sounded \ ilttiI
better than the name ot West Vlrginid
at the head OF certificate of incor
poration. But West Virginia y forgipi
far ahead Of Delaware, In spite OF thl
latter's tempting sfters 70 promoters
virgiriahas made no special effort y
get the business OF. creating corpora
tions for the fees, but even this btstI
incorporated sh times as much capita
In April as Delaware did. One company
organized In Virginia has a capital p
$4,000, 900. bat, omltting this, virginiI
incorporated four with s7,ooo,o0o. Th'
Delaware statesmen ought 10 look int
the matter and find out why their char
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