The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1904-02-04
BILL WILL. CHECK
EASY CHARTERS
1-.s-... i5l H--7 rr r---rr
Measure to Charge Fees in
in the District.
GRADUATED SCALE OF RATES
Effort to Stop Corporations From
FlOcking to Washington for
Their Legal Papers
GRADUATED SCALE OF RATES

Hereafter. If the Morrell bill becomes
a law. organizing corporations VIII find
that the District OF Columbia is a much
less favorable place for their propaga-
'tion than il has been 7or the EAST two
years.
Recently the officials Of the District
have made the discovery that corpora
'fton organizers have been focking TO
Washington to take advantage of the
! easy charter laws which impose only a
nominal fee and no ffaRchise tax what
lsoever for the privilege of doing bust
ness.
4 This fact was brought 10 the atten-
ton Of the members of the House Dis
Strict Committee by the District Commits
. ssioners last week. in the course of one
of their hearings.
The condition of affairs revealed by
the statements of Commissioner Mac
farland and Commissioner West. as well
as the showing reported to the commit
tee by Recorder Dancy. has led Mr.
sMorrell of Pennsylvania member Of
the District Committee. to introduce a
bill in the House TO amend the District
.code with respect to the formation of
corporations.
- Graduated Charter Fee.
The measure proposes a graduated
charter fee to be paid at the time the
certificate of incorporation is issued. and
an annual tax upon the corporation
( thereafter so that if corporations con-
unue to be organized in the District
the Treasury will receive a revenue
, therefrom.
Mr.. Morrells bill provides that the
charter of an intended corporation must
. be subscribed by three or more per-
sons, a majority of whom at least
must be citizens of the District of Co
tumbia who do not claim citizenship in
any State or Territory OF the United
states other than the District, and. fur
thermore. that the intended charter
shall set forth the following:
e. The name of the corporation.
The purpose for which ii is formed.
e the place or places where its business
as 60 be transacted 5re--sl .s
: The term for which it is TO exist
81 me names Of the subscribers to stock
ard the number OF shares held by each.
g The number Of directors, their names
and residences, as well as those who are
: charter directors for the first year.
FE Fhe amount OF capital stock Of the
concern. and the par value of the shares
INTO which 1t is divided.
Advertise Applications
The bill aiso provides that notice If
I '1ntention 70 apply for charter shall be
advertised for three weeks IN at ieasl
Two newspapers OF the District. one 81
Z (which must be a daily. and that the no
s,ice shall set forth the character ana OBJ
.cect OF the corporation. 1t also limits
-he amount Of capital stock Of any con-
Germ to one million dollars. and stipu-
: slates that the par value Of a share OF
stock shall not exceed S1O0
- The measure fixes the tax as follows:
a. 'All companies organized in the Dis
trict with charter. except railroad. canal
and cemetery corporations. and corpora
itions for literary. charitable or relig-
{ ious purposes. shall pay into the Treas
Jury OF the United States a bonus on
their capital stock ar the rate OF one
fourth OF per cent on the first $40, 600;
sone-half of I per cent on stock exceed
: ing $4,000. and less than 10000; three
forrths OF per cent on stock exceeding
b 100000 and less than S5e9. 900 and l per
cent on stock to the amount OF $780, 900
and over. This tax is made payable. first
at the time OF the issuance OF charter
and annually thereafter on July l.
e. Cannot Hold Perpetually.
- The bin expressly declares that no
corporation shall be authorized to hold
80 ict e'he.H. u4iitss- II -snaH nave re-
.ceived the authority OF Congress for
that purpose, and that no charter shall
.oe granted under the act OF under the
code in perpetIity
~ Had this bin been law during the
past two years and the same corpora.
tions had been formed here as were
. chartered. according TO the showing OF
RECORDER Dancy. the government would
have derived handsome revenue from
fees and~tares. Under the present law
! sit is possible. as Is set forth in Nd Dan
scy's statement. for corpora don to or
+ sganize in the District with capital OF
half million dollars and 10 pay the Dis
,trsct only the nominal fee OF SlE5
az The bill will 90 before the HoIse Dis
,trict COMMITTEES. and a. ther= - much
sinterest In the matter will doubtless be
gi@er carly consideration.