Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-08-24
LOCAL FINANCIAL NEWS.

The reply Of the corporation counsel to a
recent inquiry relative to the section OF the
| code governing the Incorporation of COM
panies in this District calls attention to a
| subject which IL arousing a good deal of
1 interest among business men. Not that the
| particular point raised was of any general
Importance at this time. but 1t is coming to
| be generally realized that the system of the
| Incorporation of companies in this District
| has been materially changed. During the
| year and half the code has been In opera
ton the District has become the ostenSible
home Of more corporations than ever before
In the same period In its history. About u
year elapsed evidently before the discovery
was made that the corporation laws of the
District were Of such a character as to
warrant combinations whose real place OF
! business and of operations were remote
| from this District to come here and estab-
lish their legal home.
| Since the LIST of January last more than
500 companies have taken out Incorporation
| papers in this District, and at Ne present
rate the District bids fair to outrtval
New Jersey and Delaware in their palrny
| days, when those states seemed to invita-
that sort OF business.
It Is not claimed that the District Is suf-
| fering any harm from the apparent gen.
| erosity of the code in respect to chartering
new organizations, except that. unlike some
| of the states that have gone into this line
are but slightly benefited. The cheapness
| of acquiring the powers Of a corporation in
| this District is no doubt one of the attrac-
| tions. The only official charge is the regu-
| lar fee of the recorder of deeds for re-
cording papers. namely, so cents for the
| first 200 words and 10 cents for each addi-
tional 100 words 1t thus may happen that
a company with a capital Of $500, 900, 900,
and one of that dimension recently recorded
| its certificate, may have only the trihing
| fee of 81. % to pay.
There are. of course. other expenses. and
since the code went into effect men living
here have built up a business Of some con-
| sequence by undertaking to attend to the
details OF securing charter in the District
| for outside concerns.
There must, of course, be an office in this
District which is If so desired economically
provided in the office Of the men who may
have been engaged to attend to the mat
ter. Then majority Of the trustees or
directors must be citizens of the District.
and these are also obligingiy supplied. The
| smallest number of trustees permitted Is
five, so that three must be District citizens.
These new concerns, however, have under
the law certain responsibilities. They are
required annually to make a sworn report,
which is to be published In a newspaper in
the District, stating the amount OF the
capital. the proportion actually paid in and
the amount of. the existing debt. Such re-
ports are required to be filed with the re-
corder of deeds.
1t is also required that a book. showing
of stock held by each. and the proportion
paid in, shall be open for the inspection OF
stockholders and creditors of the company
and their personal representatives at the Of
flee in principal place of business of the
company in the District. Such concerns are
forbidden to pay a dividend which would
make them inSOlvent diminish their
capital. Nor can they use their funds for
the purchase Of any stock of other COM
panies. There are proper penalties attach
ed for failure to comply with these several
requirements. so that it appears that the
interests of the stockholders and Of the
public have been kept in view, and II the
law is enforced all such concerns will at
least be subject to the checks Of a species
of publicity.
The bonds of the Washington Street Rail-
way Company were given good deal Of
prominence at today's meeting of the
stock exchange. owing to the rather per
sstent demand for them which was devel-
oped Seventy-two was bid for the bonds In
large blocks-ten or fifteen thousand-with-
out discovering any for SALE One $500 bond
was sold for TN, but that was all that came
out.
thousand-dollar bond Of the Me.ropoIi-
tan railroad IS sold for Sis, and a
further bid at the same level was made for
another thousand, but it was not offered.
Gas certificates valued at s64O mar were
sold for $116.50. and while that bid was re-
peated. no more could be obtained at that
figure
There was no Capital Traction stock sold
although 124 was bid. Those who had this
stock for sale wanted 126 and in conse-
Quence no business was done.
Some twenty Eight shares of Washington
Railway preferred found buyers at IS and
3Sh and no doubt il other holdings had
been developed the selling price would have
still further advanced.
Eight was bid for 100 shares OF Lanston or
any part Of 10o but there were no buyers
at that figure An eighth or SO lower would
probably have found buyer for a small
lot but the decline was not made.
Ten shares of Mergenthaler were sold at
174. but as more of the stock was offered at
q less figure there seemed to be no buyers.
although lib was bid.