The Morris County chronicle. [volume] (Morristown, N.J.) 1877-1915, 1905-01-17

I
merce and labor are the preliminary
steps toward national Incorporation when
capital will seek the protection Of federal
law rather than deal with forty-fiye 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 unimpeachahle integrity Of her
courts and the high standing of her bar,
J 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 fled 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 more liberal charter un-
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
i our borders, bringing with them an army
of employees who are among our most
desirable and thrifty residents. One Of
these enterprises employs 1000 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 host of stockholders, who, as
small investors own the majority of the
corporated in this state, supposedly owned
by a few capitalists has $4,000 stockhold-
ers and three others have more than 30, 900
each These stockholders in many in
stances are men of small 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 their savings, in the way
of investments, to the legislature and the
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 a greater NUM-
ber 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 Ia order to facilitate
business, progress and development These
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-
ministration of their affairs. The rights
of the owner of 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 these
smaller organizations?
New Jersey has never hesitated to
amend her laws to meet new situations
without doing violence to established
rights. The revenues of our state, her
material welfare, her good name and the
interests of thousands of stockholders of
the business companies now chartered un-
der her laws demand constant and care
full review of her acts of Incorporation,
If in any respect they are weak, let US
make them strong; if they are burden
some, let us tighten the load Where ex>
perience shows they are wrong let us
make them right. If abuses have crept
in let us eradicate them. Our legislation
must not be allowed to drift behind the
times. Let our laws upon this subject be
such models of integrity. conservatism
and justice as will attract honest capital
with full notice that here it win not be
permitted to do wrong but that here 1t
will always be safe and protected so long
as it does right New Jerseys example
has been followed by her sister states.
and apparently the federal government
is about to do likewise, Let us take an
other step in advance and lead the way
along the path of enlightened public SEN
timent on this important subject / rec
onr1end the apDointfnant OF a commission
to this end.
Taxation.
The question of taxation is not new
subject Of discussion It is a problem that
grows with civilization and becomes more
acute as the demands of civilization in
crease the expense of government. The
state should have but one object in levy
ing taxes--that IS. to raise money to main
tain and administer the government in
order to protect the lives, liberties and
property Of the PEOPLE. Equality of taxa
ton in our state is the mandate OF our
constitution, and If all property was now
assessed for taxes by uniform rules ac-
cording to its true value all property, per-
sonaL real and corporate, would share
equally in the expense Of the government
The platforms OF both parties in the last
campaign declared for equal taxation of
all property and for revision of the pres
ent system of railroad taxation to correct
whatever inequalities might exist. For
purposes Of taxation railroad property has
been classified. apart from franchises and
personality, into two cIasses-the main
stem and the property used for railroad
purposes outside of the main stem. The
nnair stem is confined in some cases to