, 1905-01-18
of l per cent.
Shall the Present Policy Continue?

this respect has met with the approval OF
the people and has received the indorse-
ment of both great political parties
Shall we, then, continue our present hscal
system or shall we tax the people for the
support of our state government, our
courts of justice, our educational and hu'
manitarian Institutions, our prisons ano
good roads? There is little doubt tina
the public prefers the present methoc
rather than a system that would compe
them to pay the present state income
from their own pockets. Why this query
Ii this policy is TO be continued we mus,
preserve the present sources of revenue
as well as add new ones. We cannot
maintain our revenues by destroying their
source. We tax the business companies
that incorporate in our state. A policy OF
taxation Is not consistent with a policy
of destruction. You cannot tax what yo,
have destroyed or what you have driven
from you
The interpretations in one state for ten
months of last year show an active cap
ital of Sill. 255, 500; in another of $251, 971,-
62Oi in another $685., $50, 700; in New Jersey
1913, 569. $40. Our state is, therefore, by no
means attracting all of the great mon
eyed interests seeking articles of incor-
poration. In addition to this, the recon-
mendations of the department of COM
merce and labor are the preliminary
steps toward national Incorporation. when
capital will seek the protection of federal
law rather than deal with forty-five diff
ferent states. All these influences threat
en- the revenue of New Jersey. AS her
representatives we should take cognizance
of these tendencies and devise such leg
islation as will protect the interests of
our taxpayers. Unsound legislation, for
revenue only, should never be encouraged,
but honest legislation which safeguards
the rights of the public and thereby at
tracts capital and enterprise and produces
increased income is New Jerseys aim.
New Jersey does not compete in any
race for revenue between states where
the inducement to incorporation is laXity
OF law. The conservative character of
her institutions, the honesty of her legis-
lators, the unimpeachable integrity of her
courts and the high standing of her bar,
the fact that property and vested interests
can be safely intrusted to her hands, are
the Inducements that have brought capital
to this state. One of the business COM
panies that filed its articles of incorpora-
ton here paid the state treasury for that
service alone 1921, 900 and has since been
paying us annually $4,000. This same
company could have gone to another
state, secured a more liberal charter I'M
der lax laws for less expense and have
done business in New Jersey by paying
the small sum of $40. Nor is it revenue
alone that our state derives from these
great enterprises. They bring us material
prosperity and wealth. Many of them
that have first filed their articles of incor-
poration in our state have subsequently
located their factories and plants within
our borders. bringing with them an army
of employees who are among our most
desirable and thrifty residents. One of
these enterprises employs 1900 hands, an
other $500 and others many thousands
more.
Importance of Corporation Laws.
In an age when various localities of our
country are holding out inducements to
secure the location of industries in their
vicinity the Importance of our corporation
laws in bringing manufacturing and other
business enterprises to our state cannot
be overlooked.
These great enterprises, as a rule. belong
not to the few wealthy capitalists, but
rather to a host of Stockholders. who, as
mail investors, own the majority of the
stock. One of the business companies in
corporated in this state, supposedly owned
by Il few capitalists, has $1,000 stockhold-
ers, and three others have more than 10000
each. These stockholders in many in
stances are men of mall means and small
income and in many cases women who
seek these securities as an investment.
New Jersey has a greater number of in
vestors scattered throughout the country
than has any other state. More persons
have intrusted THEN savings, in the way
courts of New Jersey than to any other
state in the Union. This is a vote of
confidence in us by the residents of
other states and imposes upon us a special
responsibility. for to this extent do our
laws affect the welfare of Il greater num-
Der than do those of any other legislature.
The interests of these persons, wards of
our state by choice, should be carefully
guarded.
Modern business methods change, and
the laws of government must keep pace
with these changes in order to facilitate
ouSihess' PROGRESS ana development. IheSe
great companies that are administered by
the few, but belong to the many should
be subject to such legal rules and regu-
lations as shall insure the faithful ad-
ministraticn OF their affairs. The rights
of the owner of a single share must be
held as sacred as the rights of him who
counts his shares by thousands. But the
day of gigantic business companies seems
to be on the wane. Companies with small
er capital are on the increase. Should
not, therefore, changes be made in our
laws to meet the requirements of thest
smaller organizations?