The Savannah morning news. (Savannah, Ga.) 1900-current, 1902-01-03
TO MAKE WAR ON TRUSTS.
SOUTH CAROLINA LEGISLATURE
WILL TAKE UP FIGHT.

and Their Powers Carefully De-
fned-The Problem of Dealing
with Foreign Corporations Makes
Knotty Question.
Columbia. S. c., Jan. 1.-The fight
against trusts" "monopolies' and
Improper combinations of capital
will be waged vigorously in the Legis-
lature that meets Jan. ID. At its last
session, the Legislature requested At
torney General Bellinger to investi-
gate the trusts and examine the laws
for their control and to make report
recommending amendments to the law
necessary to give the state control of
foreign as we'll as domestic corpora
lions doing business in South Caro-
lima.
Mr.. Bellinger Will submit a lengthy
and exhaustive report. He says: Il
am convinced that no recommends
ton has been made to sustain which
the best legal authority cannot be
found, and If these recommendations
are adopted both foreign and domestic
corporations can be controlled and
illegal combinations compelled either
20 disintegrate or leave the state.
Down with the trust is the wall
of the masses; the slogan of the politi-
clans and the theme of the legislator
who endeavors by hurting anathemas
to control this being of his own section,
endowed with infinite power, but COM
plants and TRADES are insufficient upon
which to found q proceeding in court
of Justice"
The Attorney General then says that
'the trend of legislation in this state
for at least the past eight years has
been to clothe corporations with inor-
dinate powers and to encourage the
formation of corporate combinations
/ and mono poles" He then specifies the
acts where corporations, domestic ana
foreign, have been given all the rights
and privileges of an individual.
As the corporation is absolutely de-
pendent for it's creation, existence,
powers and sphere of action upon the
Legislature, as a matter of grace and
not of right, the Attorney General con-
tends that there exists, awaiting dis
covery, the means whereby the state
can legally prohibit, prevent and ade-
quately punish combinations injurious
to a majority of its citizens or a mem
ace t. the integrity of the common
wealth.
He is impressed. however. with the
conviction that nothing could be more
Injurious than hasty legislative ac-
ton"
Mr.. Bellinger makes numerous sug-
gestions for legislation to better con-
troll domestic corporations Their char
tiers shall set out fully the business
they propose engaging in and to that
they shall be confined.
Every prospectus for organization
and promotion shall be so specified as
to certain details as to prevent mis-
representation to or deception of pros
pective shareholders.
The powers shall be confined to such
as are necessary or convenient for the
transaction of the designated business.
Only deals in real property as per-
tains to the conduct of the business to
be permitted
They are prohibited from owning or
dealing in stock of other corporations:
forming partnerships with other
corporations, companies or persons; en-
tering into any contract with any other
corporation whereby the price to be
paid or received for any commodity or
material bought or sold by them from
or to another is determined or regu-
lated purchasing the plants and phys
tcal properties of competing corpora
lions or companies without the consent
of the legislature selling any part of
its capital stock to other corporations,
or paying dividends upon any such
stock held by other corporations: SELL
ing or mortgaging its franchises.
Annually or mi-annually they shall
report to the secretary of state the
amount of capital stock and the pro-
portion issued, the amount of its
debts. the amount of it's assets, a list
of all persons who are stockholders
with their places of residence and the
amount of stock held by each. This
report to be submitted to inspection
by such persons who satisfy the Sec
retarv of State of their interest in the
corporation.
All charters shall have time limit.
As to foreign corporations, Mr.. Bel
linger says: 1.-THE ease with which
foreign corporations may come into
and begin business in this state, and
the absence of discretion on the part
of state officers in filing papers and
licensing business. calls for serious
consideration" He suggests that
every such corporation having an office
in this state be required to keep therein
a stock book giving full information
as to stockholders. their residence.
holdings, time of acquiring stock, and
amount paid thereon. Such book to
be opened to interested persons at all
times.
THE most fruitful source of harm
hll combinations and trusts are cor
porations chartered in certain states,
notably New Jersey. for the purpose
of doing business and purchasing prop
critics of other corporations elsewhere.
Such tramp corporations are a nuis-
ance and menace to the control by the
state over the property and WELL being
OF the commonwealth. 1t seems, there
fore. that IL should be declared by law
that no foreign corporation shall be
permitted to establish a dom!cile in
this state before II has satisfied the
Secretary of State that it is conducting
bona fide business and therein exer-
cising the full powers given under its
charter and that no foreign corpora
tion whose business is to purchase or
control the business or property of
other corporations or companies shall
pe permitted a domicile here"
No foreign corporation where char
tered purpose is to buy. own of control
property or stock of another corpora.
tion shall be permitted to have a DOM
icile or own property in this state.
No foreign corporation shall be per-
United. directly or indirectly, TO buy
or control any property in this state
or OF any shares of stock of a COM
pany chartered by or doing business in
that state.
Provision Is made for expeditiously
withdrawing the consent of the state
10 foreign corporations doing business
in the state whose methods are con-
sidered inimical to the interests OF the
state