Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1901-05-02
MAINE INVITING TRUSTS.
New Jersey and Delaware outbid for Coz
poration Charters.


New Jersey and Delaware outbid for Cor
poraiion Charters.
Augusta, Me-, April 26.--The State
of Maine, desiring to compete with
New Jersey and Delaware for the
enormous fees ACQUIRING from the in
corporation OF trusts. has amended her
laws as to corporations. and now offers
allurng terms to capitalists wishing
charters.
A rush of corporations is expected,
and today the first applicant came 10.
Articles Of association of the first
unusually large company incorpof ated
in this State since tho removal of the
capitalization limit by the last Legis-
lature were filed with the Secretary Of
State today. The new oompHny will
lie a reorganization OF the Bingham
Mining and Smelling Company, and
its capital will be $4,000, 900.
Delaware and New Jersey have very
liberal corporation laws, and for sew.
eral years corporations have been GO
ing there rather than coming here; In
fact, Maine has lost considerable reve-
nus in this direction.
Formerly no tax was assessed, but
the new law provides that each corpo-
ration shall pay tax of e5 year, II
the capital stock does not exceed $50,
900. If the capital stock 10 between
$50, 000 aud f200,0 the tax is $40 a
year. 1t progresses at like ratio up
10 81 200, 900, for which the tax is $50.
For corpoia tions whose stock is over
81, 900, 600. an additional S25 IL assessed
for every million or part thereof.
Under the old law the capital stock
was fixed not to exceed $40, coo, 900.
Under the new law the capital stock of
corporation gar he fixed at any
amount desired, no matter how large
There is a literal provision allowing
corporations 10 do business outside the
Stale, in any State. Territory or pos.
session of the United StAtes or in a
foreign country. corporation is now
given power to issue two or more kinds
of stock With such designations
preferences and voting powers as shall
be fixed and detern. ined by the laws
Provision ia also made for a change in
the par value OF the stock which must
be done hy yoe representing majority
Of the stock issue.
The law also provides that any cor
poration NAV purchase mines, manu-
factories and other properly necessary
for its business, and tie stock OF any
company or companies owning mining,
manufacturing or producing materials
or other property necessary for Its bust
ness, and issue stocks TO the amount oil
the value thereof in payment therefor,
and the stocks 30 issued shall be full
paid stock aud not liable to any further
call or payment thereon; and in the
absence OF actual fraud ip the trans.
action, the judgment of the directors
as 10 the value of the property pur-
chased or services rendered shall be
conclusive
The law further gives any corpora.
tion power to do brokerage business
in stocks and bonds OF other corpora.
tions. Under this section IL is possible
and easy to form a trust or combina.
tion Of corporations Of any magnitude.
This is by all odds the broadcast and
farthest reaching provision of the new
law.
The law is highly approved by the
legal fraternity OF the State. II ough
to considerably increase their income
during the coming year.