The St. Louis Republic., 1902-02-13
Secretary OF State Rose Takes a
Stand Against "InvestmcGt"
Companies.
HE CONSIDERS THEM UNSAFE.
Efforts Of Concerns to Obtain Rec.
ognition Through Subterfuge
Have Proven Futile-Names
of Applicants Withheld.
REpI-RI.iC, SPECIAL'

REPUBLIC SPECIAL
Springfield, Ill. Feb. I2-Secreta-y Of
State James A. Rice, after n s:Gly. Of GER
tain foreign corporations. WI wish to
obtain licenses or charters ru.,F the State
corporation laws as Investment" COM
paries. has declared against them.
There is no provision for the orgariza-
ton nt investment companies IN Illinois.
and It 4, Mr.. Roses intention not t1 let
any or them organize here. Many promo
ters Of Investment companies have for
weeks been engaged in studied efforts 20
circl.mvsnt the decision Of the Secretary
by securing authority TO do n business OF
the character transacted ny foreign luveSi-
!nent companies. under false pretens.s. As
result of these efforts the entire corpora
tion department in Mr. Roses Office Is
kept on the alert, and all persons seeking
licenses are called upon for explanations
or anything that seems the least suspicious
or savors of a possible Investment business
An Investment Craze.
The anxiety of persons IN Illinois TO
form investment companies has been in
spired by the success that has attended the
business conducted by the foreign con-
Germs. The investment craze among per
sons of small means. laboring people and
small property owners, has grown greatly
within the last few months. and it is Mr.
'N''' y N'Hii' W prevent d lbSS OF money
to these people.
Mr.. Roses decision not to permit the or
ganization of concerns OF like character un-
DER the Illinois laws seems TO have increas sed
the desires of many people to organic. thrra
mere. Some of the promoters threatened 10
bring a suit in mandamus to compel him to
issue charters to them, but up to this time
no suits have been filed the efforts to pat
recognition being confined to threats and
efforts to evade the Secretary's orders
Dozens of applications have been made for
lice Ia ,f..t, ,r-,Ig
OF business after fashion of the foreign
concerns. but upon the face Of none Of these
applications does the real purpose appear.
1he attempts TO deceive in many of the in
stances are exceptionally clever and II takes
great amount of study t. ascertain the
real purposes for which the charters are oe-
sired. Some of the applications apparently
want 10 form mercantile companies. others
real estate. mining or railroad corpora tions.
and now and then there is found in ap
plfcatior an innocent appearing clause
thorizing the making Of contracts. but in
variahly the promoters fail to specify the
sort Of contracts that are to he made.
common form in many Of the appliCa-
tions is to set forth half a dozen of he
classes of business authorized by the gem
eral corporation laws and at some place
slip In little clause that would authorize
the various things which investment
company would transact in that line OF
business.
sample of Ingenuity.
The following is A sample of the ingenuity
with which many of the applications for
license are prepared:
To do manufacturing Of all kinds. including
the fufac.u Of Lumber d bIIiiing material
and the ce construction, N Aintenauce ana up rat1I
OF sawmills. dams and ponds horse, dummy.
ai engines i mschneTn fu ce ann eqI ahi,
mant incident to any Kind Of manufacturing.
To do mining Of all kinis. inciEGinE bo- Ing ;5r
oil and the struction. maint'nanc" and opera
ton of oil wells. shafts, tanks, plgc lines. and
all engines. machinery. appliances and equip
mont incident TO any Kind Of mining Or oil dr-
ils.
4" construct. maintain and operate gas and
electric Lighting and power r!ants. and to sell
Tight and power.
To manufacture pu;c'ssa rr otherwise acquire,
10 hold. own, III rtgaE., y GO G. :c,l. assign m!
deal in and deal win lIr,b r ami irs rrolUcts
Eonds. wa1cs and mercantile and property Of
ever cG:s ani do g. '.ir.i n.
. To enter into. max. perform and carry cut
association CORPORATION: to have one more
Offices 'a:ry IL operations and husin
and - wn. p1;s.ss I'd enjoy much zeal aIl
personal "st-t" shall be u7caSsarv 'ur the
tofnr.. :tnt.d and to acquire at estate in salts
faction ~ am liability ind u" 'nass. subject
:" the rrovisiS~s and limitat oEs Of paraSr1pl
ni chapter - of tae statutes OF the state oi
Illinois.
In general. to carry on anv Other business in
c;,on th"t'iv tn. whether m lnE'dctuT.ng or
Ir!r.u= 'ttcgvis'. with all the powers con-
frrr'd ny the lave Of l linniF up II go poratcns.
I'p to this time Seer tlry Rose h1b not
thought 1t Hdv.H hle to rnai'7 nubic the
tain licenses tp 90 buSinf 8 of this sort
I, is intimatod. however. that tn, names
of many prominent msn in various iocali-
ties over the State are fnun among the
names Of the directors in many OF the APP
plcationS.