Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-03-21
Mr., CARF|ELD'S BILL
Further Regulation of Dis
trict Corporations.
FACTS BEING GATHERED
STUDYING RESTRICTIVE MEAS
UREs IN FORCE ELSEWHERE.
Careful Consideration of the Matter to
Be Given in the Early Days of
the Next Congress.
FACTS BEING GATHERED

Commissioner Garfield of the bureau cf
corporations will prepare for submission to
Congress at the next session a draft of
proposed law for the regulation of corpora
tions in the District of Columbia.
At the recent session of Congress; q law
was passed in relation to corporal tions in
the District, the chief effect of which WAS
to lessen the number of acts of inc)rpora-
tion taken out by fixing fee for sucn priv
ileges. BY making a charge of 40 cents
per 81 900 of capitalization thus law stopped
the Incorporation of companies of millions
of dollars capital without a serious pur-
pose on the part of the incorporators to
pursue some legitimate business. The law
also made it necessary before any certif-
cate of incorporation IS issued that all of
the capital stock shalt be subscribed for in
good faith, and not less shan IL per cent
of the par value of the stock shall have
been paid in cash, and the money derived
from that source pla led in the keeping of
the first board of trustees
This measure was reported to the Senate
and House of Raprese natives from th5
committee on the District of Columbia 1t
was merely intended to serve the purpose of
stopping wildcat Incorporation, to which
the President called attention in a special
message to Congress.
COMMISSIONER GaruelQS S Bill.
After the passage of that act Commits
sioner Garfield drew up a bill for the fur
ther regulation of corpora tions in the Dis
trict, but it was considered that such a
| measure when enacted should be drafted
with the utmost care and should contain
all provisions for the regulation of cor
porations that have been approved in those
states in which such regulation is most eff
fectively provided for.
For that reason this bill has not been
acted on. Senator Platt of Connecticut
chairman of the Senate committee on the
judiciary, to which the Garfield bill was
referred, proposes to give 1t early and care
ful consideration in the next Congress- In
the meantime Commissioner Garfield is go
ing into the subject of corporations in the
District of Columbia much further than he
had time to go when his bill was drawn.
He is considering similar restrictive legis-
lation that has been enacted in all the
states with special view to obtaining the
greatest degree of publicity In the affairs
of corporations that is possible and with a
view OF preventing capitalization.
Publicity in Corporate Affairs.
Just how far publicity is to be provided
for is yet to be. determined. 1t is recog-
nized that in the case of municipal corpo-
rations enjoying special privileges from the
state there should be required a greater de-
gree of publicity than is the case with a
private corporation, especially those corpo-
rations that do not offer their stock for sale
to the public. The street railway COM
panies make a fuller return to Congress
than any other class of municipal corpora
tions in this city. The telephone company
rendered its first report to Congress last
winter in obedience TO a law passed in the
preceding year. The gas company, one of
he a ZACH of lna trio
ders no report to Congress, although it en-
joys extensive exclusive privileges.
Probable Recommendations.
In reporting upon a corporation law for
the District 1t is likely that Mr.. Garfield
will make recommendations in respect to
municipal corporations, as well as corpora
tions of a private nature. But even with
the latter class of companies there is dis
position to obtain such degree of publicity
that would allow an investor in the stock
to form good idea as to the financial con-
dition and business of the concerns.
The capitalization of such corporations 1t
is proposed to keep down to basis of legit-
which shall be paid in so that there shall be
no water in them.
The bureau of corporations is getting to-
gether in classified form vast amount of
information on the subject of state corpo-
rations so that not only will there be a
bill formed by the bureau for Congress to
act upon, but there will also be this valu-
able collection of data for the information
of Congress should it be desired.