Gloucester County Democrat. (Woodbury, N.J.) 1878-1932, 1905-04-20
IT IS UP TO NEW JERSEY.


Last Friday evening week in the city
Of Pittsburg, United States Circuit Court
Judge Peter s Grosscup, Of Chicago, was
a principal speaker before the Traffic Club.
His subject was sThe Regeneration Of the
Corporation.
In that address Judge Grosscup directed
his attention to New Jersey in language SO
vigorous, so pertinent and SO timely that
an illustration of history of an over
capitalized corporation, and his reasonipgs
based upon a state Of facts, are worthy of
publication. The distinguished jurist said :
Il know Of one corporation that organ
lied recently under the laws Of New Jer-
sey, with an authorized capital Of $40 600, :
600 For some reason this must have look
ed high, even to the promoters, for only
$40, 000,00 was issued.
After little while these SIC, 0O0, 900
were reduced to $4,000, 600, whether from
some scruple of the stockholders or some
business expedient, / do not know.
"A little while after that the corporation
landed in a bankruptcy urt with as sets
all told of $25, 600, presumably acquired on
the credit Of the corporation after its organ
ization, for the current liabilities exceeded
these assets.
s'The honor of the New jersey men, indi-
vidually, is above reproach. Her judiciary
ranks with the best courts in the land
Her governor and her state officers are
chosen from among the best citizenship.
Within her borders is the University Of
Princeton, fountain of learning and NOR
tails that reaches every corner of our
country.
"But, with all that, could there be con-
ceived case of the people of common
wealth more distinetively putting the great
seal of the commonwealth, the token of its
majesty and honor, upon contrivance
born bankrupt and destined from the
beginning to career of disaster?
what is to save a commonwealth, in
such a case, from the moral conseq uence of
having issued false and fraudulent certifi-
cate What saves it from justifable denun-
citation except the fact that such spectacles
have become so common that they are no
longer looked upon with acute disapproval2
How can it be expected that. under a
public policy that winks at these things,
the ordinary man can feel otherwise than
that he is effectually excluded except as a
victim, from that large part of his country's
properties?
s'How long ought such sham corpora
ton policy be tolerated How long will we
go on blindly, setting upon practices such
ss these the great seals of our common
wealths Are we willing, as a people, to 90
on indefinitely, aiders and abettors of in
EQUITY ?"
Judge Grosscup properly deals leienly
enough with the character of men high in
official life; but this is all secondary to his
singing comment upon the laxity of our
corporation laws. The fault lies with the
system that has been developed in this
State of Incorporating anything, fostered by
anybody, so long as the fees are forthcom-
ing to help swell the State treasury. We
have winked at our own questionable prac-
tees, because we are the beneiiciaries Our
sins in this respect have been both of omis-
sion and commission, for thereby we have
avoided State, or some other form of
direct tax. And it may be said that the
who country knows it.