Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-02-03
A CORPORATION BILL
PREPARED BY COMMISSIONERS
GARFIELD BY REQUEST.
Measure of Greatest Moment to Busl-
ness Interests in Washington-lts
Provisions in Brief.

Chairman Babcock of the House District
committee will this afternoon or tomorro"
morning introduce the bill drawn up oy
Commissioner of Corporations Garneid anu
which is designed to remedy existing eVhs
in connection with the incorporation oi
concerns in the District of Columbia Inc
bill was handed to Chairman Babcock py
Mr.. Garfield this morning.
When the commissioner OF corporations
was before the District committee some
time ago his attention was called 10 Ihe
fact that LIP concerns had been lncorpo
rated in the District during the past TWO
years, with an aggregate capitalization oi
81 0OO,00O.OO0. and that the revenue 10 tho
District in incorporation fees had been less
than 5000.
AS some Of these concerns represented IN
other parts of the country that they were
operated under federal charters and as
most Of them did not enter into legitimate
business a. all, Mr.. Garfield was asked TO
draw up bill that would reach them. Inc
measure. which is of the greatest interest
to business interests of Washington, Is III
brief as follows:
Provisions of the Bill.
Section one provides that the charter OF
every corporation or company Incorporated
in the District, which shall not nave BONA
fide commenced the business for which II
was organized. or 10 per cent Of whose au-
thorized capital stock has not been paid ln
either In money or in property. at its actual
value prior to the passage OF TINS act' Is
hereby revoked and annulled. ,
Section provides that the president and
secretary of every corporation or company
previously Incorporated under the coue
shall on or before May 1, 1909. hle with
the recorder of deeds OF the Distflct
sworn statement containing information as
to the name of the corporation ana the
place where it's actual business operations
are carried on. the amount Of Its author.Iea
capital stock. the amount actually paia
thereon, the times of payment ana Whetner
paid in money or in property; II IN prop
erty an exact description of the same, To-
gether with kind and value; the number
of trustees designated to manage the
company with the name, term Of office ana
actual residence of each since the filing
of the articles of incorporatlon the names,
terms of office. titles and actual residences
of all other officers of the company since
it's incorporation; the name ana post oHlce
address of each stakeholder, with the num-
Der of shares held by each; and Whetner
the company has used any part OF IT'S
funds to purchase the stock OF otheL cor
poratlons and if so the names or such cor,
porations, the amount of funds useu anu
the amount of stock purchased. II the
president and secretary OF any corporation
are not actual residents of the Dlstrlct. IL
is prov ded that the report may be verlneo
by the oaths Of at least two trustees VINO
are actual residents of the District.
This section further PROVIDES that me e,;n
all statements required, ana II ne thiiihs
that any such statement is Improperly en-
ecuted. incomplete or evaslYe ne must re-
fuse to file the same. me rsGoraea ,d
authorized to collect 81 for such ming, anu
after paying certain necessary expenses
may retain the balance.
For Canceling Charters.
Section 3 provides that in case it should
appear from any of the statements filed
oft no
alton shall not have been actual residents
of the District, or that the corporation
transacted any business before the required
10 ner cent of it's capital was actually paid
in or that it used any part of its funds for
the purchase of stock of other corporations
or If it failed to file the required annua! re-
port the charter of the corporation shaA De
Cancelled. ~
Section 4 provides that within thirty days
after Nav 1, 1905. the recorder of deeds
shall prepare a list of every corporation
which has not actually commenced TO 90
business or whose required 10 per, cent OF
stock has not been actually paid In, and
shall publish the list once a week for three
consecutive weeks in two WASHINGTON
newspapers. The recorder shall then lie
the list in his office and cancer the char-
tiers of the corporations in question.
Section provides that whoever makes
false statement of any fact In the required
statement any one who shall exercise
the powers or corporation Wuose CiidIiSi
has been forfeited, or who shall dispose of
any of its capital stock after such action
shall be held guilty of misdemeanor and
punished by a fine of not exceeding s2.ND
or by imprisonment not exceeding two
years or both.
In section it is provided that every
company hereafter incorporated shall in
April make an annual statement to the
recorder of deeds. Section { provides that
every company heretofore or hereafter
Incorporated in the District shall annu-
ally in April pay to the collector of taxes
for the District a tax of 40 cents on each
$1,000 of it's authorized capital stock, but
in no case shall the tax be less than 50.
If any company fails to pay a given tax
within the time prescribed it shall forfeit
it's charter, and the collector of taxes
shall certify to the recorder the names
o. such companies in order that the lat
ter may formally cancel them.