Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-08-15
EFFECT OF NEW CODE
COMPANIES COME TO WASHING
TON TO INCORPORATE.
Fees Lower Than Can Be Obtained
Elsewhere-Record Since
January /.

Since the LIST of last January nearly half
a thousand certificates of Incorporation
have been filed with the recorder of deeds
for the District of Columbia. The number
mentioned far surpasses all previous local
records. The rush in the direction indi-
Gated has resulted from the enactment of
liberal provision of the new code of law
for the District. The code, among other
things relating 10 corporations. provides as
follows:
ANY three or more persons who desire
| to form a company for the purpose of car
| rying on any enterprise or business which
may be lawfully conducted by an tndivid-
ual excepting banks of circulation or dis
count. railroads and such other enterprise
or business as may be otherwise specially
provided for in this code, may make, sign
and acknowledge, before some officer COM
petent to take the acknowledgment OF
deeds, and file in the office of the recorder
of deeds, certificate in writing: Provided
That nothing herein contained shall be held
to authorize the organization of corpora
lions to buy, sell or deal in real estate, ex
cept corporations to transact the business
ordinarily carried on by real estate agents
or brokers'
In such certificate shall be stated:
First The corporate name of the COM
pany and the object for which it is formed
Second. The term of its existence, which
may be perpetual
Third The amount of the capital stock
of the company and the number of shares
of which said stock shall consist.
Fourth. The number of trustees who
shall manage the concerns of the company
for the first year and their names.
Fifth. The name of the place in the Dis
trict in which the operations of the COM
pany are to be carried on
For Local Benefit
1t is explained that Congress- in enacting
the provision of the code in question, gave
consideration only to the matter of bene-
fitting the citizens of the District of Column
ba, but outsiders, by the wholesale, are
taking advantage of it. The fee charged
for recording a certificate of incorpora ton
here is only 81. %, no matter what may be
the amount of the capital stock of the cor
poration concerned. In New Jersey, it is
pointed out, the fees charged depend upon
the amount of capital stock involved. In
chartering company in the mosquito state
with capital stock of $500, 100000 more
than 100000 would be received by the
state for granting the charter. Here it is
an almost daily occurrence for concerns to
be incorporated with an alleged capitaliza-
hon of 100000 or more. All that they
pay for the privilege of Incorporating is
the fee to the recorder Of deeds, amounting
to H25.
The declaration is made that certain Of
the states, notably New Jersey West Vir-
g1nia and Delaware are sustaining consid-
cradle loss of revenue by the action of
concerns that otherwise would have ap-
piled for charters in one or another of
such states, incorporating here because Of
the favorable laws.
A large number of persons, 1t is said
are now engaged here in the business Of Sc
curing certificates of incorporation for out
slde parties. For fixed compensation 1t
is declared, the local individuals referred
TO, file the certificate and comply with the
law as to the election of directors and the
like, and later transfer the interests in
voived to their clients the outsiders