New-York tribune., 1907-12-23

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of the older states of this Union will show
| that by series of amendments adopted from time
| to time the wholesome restraints at first placed
upon such bodies have been relaxed until really
| they be used in the consummation of almost
| any scheme of fraud which ingenious and unscru-
| pulous men may concoct to entrap the unwary
| At the present time practically anything can be
capitalized for millions of dollars. and the certi
| Gates OF such corporations be palmed off upon
a credulous public that does not possess, and has
of obtaining. the slightest knowledge of
their vaueless character
! This Is all wrong. While the state grants the
privilege to incorporate, while the right TO incor-
porate exists its exercise should be permitted only
upon limited conditions governing what is incor-
porated and the for exercising the cor
porate act. The right to be corporation is not
| inherent right. If men wish TO carry on an
| enterprise individuals a co-partnership.
they have open field under appropriate legal
regulation but when property has received the i'm
print of corporate life. the incorporators receive
from the state grant of power in excess of that
which individuals receive and possess When men
seek the states seal OF incorporation for their en-
terprse, they should be compelled disclose and
make record Of the of the corporation. Of
Its actual and prospective property and the capital
necessary to those purposes into effect Such
statement and disclosure should be made public
before some official OF the state who is duly author
lied to receive and pass upon the public
record. and that corporation should be compelled
To obtain the approval Of such competent authority
and have official certificate declaring the pro-
priety and purpose OF its existence, and the law
should also incorporate its provisions proper
safeguards to make that the proceeds a
stock issued shall be turned IN for the benefit of
the corporation and that the stock shah not be
palmed on upon credulous public, and the
proceeds put into the pockets Of the promoter.
Many other safeguards might be specified that
should surround these organizations and impose
reasonable and proper limitations upon them. Care
should be taken not to throttle in any way any
large and legitimate enterprise Ample provisions
should exist for the increase capital stock under
state supervision, that proper business enter
prise shall be deprived of the power increase
cash other resources for the growing needs of
its business The crying evil of tho past
have been the desire and ambition OF certain pro-
moters OF corporations to issue the greatest
of stock on the narrowest possible basis of actual
property and then to unload that stock the n
wary public The opportunity and the ability TO do
these things should be crushed out, but in the
crushing out must be taken TO conserve the
rights Of legitimate corporations
At the present time have the spectacle OF
few who have determined. of their
ton without any restraint. to issue enormous
amounts OF stock. without reference to the value
represented II embarrassed by the restrictions
contained in the laws of some OF the states, i'm
posing reasonable limitations upon them. they have
organized IN the states whose laws give the great
est license and impose the least restraint and this
fewest safeguards against corporate abuses.
states have won distinction IN q racs V'noso
goal seems to have been to protect and encourage
corporations of this character but 1t seems that
old conservative New Jersey has let down the
until 1t occupied the first rank In holding out
inducements to these offending corporations
There seems to be limitation imposed or proper
report required under those laws with regard to
those corporations.
Corporations of the character just spoken of are
undoubtedly the chief offenders and have been
the chief agencies in promoting the present anti
corporation sentiment OF the country We not
suffering from attacks corporations after in
vesigations, but from the disclosures made by
such Investigations An investigation of the affairs
OF corporation will never hurt it. provided its
business has been conducted that it can stand
the investigation
There is at present another class OF corporations,
class which attracts little attention but has
promoted enormously this anti-corpOraton senti-
ment. | refer to corporations organized all over
the land with enormous capital to develop some
alleged local industry. more generally mining than
anything else. These corporations feeble imi
tators of their great prototypes in the larger
cities. but their stocks have been sold to poor
people In rural communities, creating an antagou-
ism that has immensely contributed to the anti
corporation frenzy. something that has been and
will be heard from through the ballot box. Loose
corporation laws In the various states lie at the
foundation of this evil The existence of the evil
is known to all OF us who from time to time have
received allurngly worded prospectuses and an
rCLnceUlents warning OF the existence of these
gnats that pervade the financial atmosphere.
II is hard to appreciate what enormous sums Of
money have been fched from the community by
these minor corporations. They have left their
sting in the memory of multudes. who now
noisy in their denunciation of corporations Dickens
must have known OF corporations similar to soma
of our modern when he held up to rdicule
the Hot Muffin. Crumpet and Punctuai Delivery
Company, OF London.
1t fact that corporate dishonesty in high
places and in low, has contributed nightly TO
present financial embarrassment. 1t Is probable
that the business oe the country would have re-
ceived no such severe check 1t is expert
encing had corporations been properly restrained.
although it is also undoubtedly true that those
porations could never have carried their ne
farious work except for the prevalence of n specu
iative spirit throughout the country. Doubtless the
people have been headlong and reckless in their
willingness pay good money for these worthless
certificates with which the country has been flood
ed and now the victims turn upon those who have
accumulated vast wealth thereby with bitter de-
nunciation of their conduct.
am inclined sympathize somewhat with the
people who have been victimzed. but L have had
occasion TO the headlong zeal of the people
TO give their money to these men who have rem
dered such schemes possible. We blame these cor
porate managers. and blame them severely. for
their misrepresentation and fraudulent schemes;
vet it was hardly in human nature for them to
refuse to take the money of the people given TO
the m so freely and generously as during the last |
live Years The promoters and managers of