The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1903-04-17
MankatO Free Press
PUBLISHED By
rREE PRESS PRINTING co.
EVERY FRIDAY.
One Dollar per Year in Advance
G1.5O il not paid in advance)
Wiping Out Corporations.

New Jersey having given birth to a
large crop of indigestible, wind-inhated
securities over large part of the
world is now beginning to feel the ef-
fects of the work of the incubator. Gov
error Murphy has issued his annual
proclamation forcibly dissolving those
trusts and combinations organized under
the laws of the state which have not
paid their taxes. No less than 927 of
these creations of the commonwealth,
capitalized in the aggregate at 1926, 000,-
600 are given their quietus and with
their going out of existence is destroy
ed the hopes of thousands of stockhold-
ers. Here is the story, briefly, told of
how corporations have been formed and
how to the winds the certificates of the
concerns can now be thrown, for they
are worthless Since the state set up
its Incorporation incubator some years
ago it has managed to hatch altogether
1920 foreign and about 1000 domes
tic companies. One out of every twenty
of these, therefore, has been converted
into a mere memory by one proclamation
of the governor.
There are all kinds of wrecks in the
list and their debris is scattered all over
the United States and Alaska. Mining
companies, bologna trusts, railroad cor
porations, steamship lines and corn cure
creations are intermingled indiscrimin
ately. Some were formed in good faith
but met with reverses. Others were con-
ceived in fraud, continued i'll dishonesty
and their fate is welcomed by their
promoters and officers. Nobody can tell
how many hundreds of thousands of in
pocent persons have been swindled into
purchasing their stocks, but the trans
fer books of few recently exhibited i'll
the state courts would seem to indicate
that their number is legion.
New Jersey sets up no test of honesty
for its corporations. Any band of adj
venturers can do business under the pro-
lection of its great seal. That is why
it has become the asylum for institu-
tons of this character. It's own citizens
are among the heaviest losers by their
collapse.
Prior to this year the large number of
corporations dissolved at one time by the
governors proclamation was 6S7. This
was one year ago. But these concerns
were capitalized for only S62,000,OO0. In
one year, therefore, the financial impor-
lance of the annual calamity has in
creased four-fold. In 1901 the number
of corporations dissolved was GAG and
they were capitalized at $49,O00,O00.
These figures, though they are start
ling, do not tell the whole story of the
states whirlwind harvest. During the
past year and especially during the
months since Jan. l there has been an
astonishing rush to both the state courts
for the appointment of receivers for cor
porations alleged to be insolyent
Between April l, 1902, and April l.,
1908, receivers have been appointed for
l27 corporations, capitalized at $214,-
100000. One of these, the National As
phalt company, has actually issued Sl9,-
529.454 in stock and another, the Ma
tional Salt company, has issued $l2,ooO,-
900 in stock These applications for
receivers are increasing month after
month. There are thirty -eight pending
now in the state courts alone.