The times. [volume] (Richmond, Va.) 1890-1903, 1902-02-07
There Are Four Different CIassi-
ficat.ons Of Them.
REPORT MADE BY AN EXPERT
Tie Gives a Summary Of the hlas,achu
setts COMMISSION Laws. Which May Be
Of Service to the h..mbers of the
const;tu.lon4i Convention and
Of Interest 10 the
People.


In view of the great interest which is
being taken by the Constitutional Con-
vention in the corporation report, The
Times has had prepared by an expert
the following summary Of the NIassa-
cuusetts commission law. The informa-
tion contained in this article will be
of great interest to the public. The arti-
cle,folloWs:
Massachusetts has no Corporation
commission In the sense that all the
corporations of the S.ale are under th.e
| supervision of any single board or per-
SON. 1.ne COnLInonWk<1Ith hi.s raLher
divided her corporations into groups or
classes with a special board to exercise
The SUPERVISORY power over each of sad
| Eloup. Massachusetts has a. .'commls
| aluner OF corporauons.' Only the man
ufactur.ng ana otter specined corpora
tons come within his jurisdiction, how
ever.
The revised laws of Massachusetts, di-
| vide the corporations of the state, for
| all practlcaI lnIents, as follows: Rail-
road and street railway corporations;
savings banks, institutions for savings
| palleS and associations; gas and esc--
| trlc light companies; manufacturing and
other corporations. 1t is this last classi-
icatlon with "a which the corpora tons
! commissioner has to do.
| The commissioner of corporations is
also the tax commissioner. AS indicated
| above, he supervlses the organization,
etc, Of manufacturing companies, In
| Guiding gas companies. Directly after
| IEfLI unacrt the ne-sa1sup pety.sion OF the gus
! and electric light commissioner. With
| railroad and street railway corporations,
| savings banks and insurance companies
tho commissioner of corporations has
| nothing to do except to tax them in his
capacity Of tax commissioner.
DUTIES OF COMMISSIONERS.
/ The commissioner of corporations is ap-;
| pointed by the Governor for. a term of
.hrec years. at a salary OF $500. His
1.puwer is termed supervisory or. advisory.
Iie reports failures on the part of the
Gorporations.lIo TO comply with the laws to
! the ALtorney-General of the Common
| wealth. .@=325z5ss'.t.5 ssss..-szsss
Section 8. chapter Ill of the revised
laws, provides fof the appo.ntment-.b by
The Governor cofta commission Of three
to have general supervision of all rail-
! roads ana street Railways In the Com
/ monweal .ll.. The smeneerS OF this board
are appointed. for. thee years; the chair
| man receives 81, 0Gl, the other two mem-
bers 81, 4,O0o:ssThe board has the power of
recommendation not OF "order. So
/ firmly has sthe4Jegislature backed UP the
! commissions of the State, however, and
| SO strong .have been the men appoin> ed
to this board that the recommendation
| OF the board has, in practice, been tan;
| tamount to order. For example,, there
! is only one recorded Instance where
| railroad failed to carry out the recon-
! mendation of the railroad commission.
! The failure was. reported to the general
| court in its annual report to that body
and the Legislature exercised its own
| Inherent right to compel That case
| was over fourteen years ago.
/ This board receives returns from all
| the corporations under its charge an
| snualIy and prescribes the form. OF thosa
| returns The board passes on all stock
] and bond issues and has the general ad-
| mInis.ra ton Of the laws bearing on the
i transportation companies of the State.
! If the board discovers that a law has
/ been ..viola TED, 2. the Attorney General is
! informed and he proceeds against the
corporation. The board investigates all
j acc d, nts on The roads, has the. power to
i summon Witnesses swear the same. etc
Especially, in the case of this board.
i the "recommcn tory power has. been
4 an entire Success. The corporati tons
4 have obeyed theSbeard.
/ AS TO THE BANKS. )
i Section /; chapter 113 of the revised
laws, provides for. the appointment by
i tie Governor of a board of savings
/ banks commissioners. appointed (. for
/ .hree years, the chairman receiving So
l 500 and the other members 5000. each.
i This board has entire supervision of the
/ banks The savings banks of the State
! are visited annually bysmemDers of the
i board; if such banks are connected with
4 national banks, then the visits are plann-
cd sinauat taneor.scN with those of the na-
l stionalt bank examiner. The board can
! summon and examine bank officers at
i any time, and may apply for injunction
/ to restrain banks that are insolvent or in
i a hazardous condition:
/ The board supervises- the organization
j of banks. and, in general, is required to
i keep IN close touch with AL the llistitu-
1 tions under its charge. The board must
i aun,Ially make detailed report to the
i legislature showing the condition Of
4 the corporations and associations under
i its supervision.
Section A. chapter lis. provides for the
j appointment by the Governor of an. In
i sur ance commissioner for term of three
ears The commissioner receives a
4 salary of $500 He may appoint a dep
q suty at $500 to act for him in his abb
4 sence and an examiner at 81. 600 At the
outset the commissioner must examine
4 all companies as to their quail aliffca tions
i before granting certificate Of authority
4 slo issIe policies or make contracts OF
4 insurance. Personal examination OF the
domestic companies must be made at
4 least once sevew three years He may
i examine foreign companies admitted to
do business in acbusetts whenever
he deems IL advisable He may admit
4 such companies or suspend the authority
4 once given. He may enjoin domestic
4 Companies in insolyent or In hazardous
q Econdi lion. TIE cert idcatefo of organization
tnfa ainsuranceseo1 eo1nnanisa az Indicated