Tonopah daily bonanza. [volume] (Tonopah, Nev.) 1906-1929, 1912-02-24
TRUST LAWS OF NEW JERSEY.

In recent address be delivered in New York
Mayor Gaynor gave Woodrow Wilson a shrewd
thrust He pointed out that practically all the
big trusts IN the country are operating under
New Jersey charter, and remarked that the cor
poration laws If New Jersey had been under the
fire of criticism from the press and the bench for
years Nevertheless these obnoxious laws shelter
ing the trusts still the statute books. not
withstanding DIR. Wilson's election as governor
No attempt has been made to repeal or amend
them during Wilson administration Wilson has
attacked the trusts on the stump but he has not
recommended that the New Jersey legislature
enact laws to bring them under wholesome re-
straint and deprive them Of the extraordinary
privileges they enjoy under the corporation laws
Of New Jersey The Sugar and Standard Oil
trusts have been broken up by the courts but
straightway the legislature Of New Jersey Mr.
Wilson being govemorl passed statute enabling
corporations to unite aud become a business unit
Just the Sugar and OIL trusts were. Said
Mayor Gaynor
The device Of that statute is very
simple. 1t allowed corporations to be ere
ated to the stock of any number of
other corporations. We have become used
TO calling such corporation a holding
company II owns and holds the stock Of
other corporations Both the Sugar cor
porations and the Standard Oil corpora
tionS avaed themselves of this statue A
Sugar corporations was formed in New Jer-
sey. and the stocks Of all these sugar re-
fining companies, hitherto for time held
by trustees as | have stated were trans
ferred to it. in return for which it issued
its stock to the stockholders. who thus
surrendered their stock In the very same
way new Standard Oil company was
formed under this statute in New Jersey.
to which turned over all the stock of
the said Standard Oil companies And in
tins way all Of the Standard Oil companies
were again massed business unit and
all OF the sugar corporations were massed
business unit The court had declared
them to be Illegal a combination under
the said trust agreements as | have stated
and then the legislature Of the state of
New Jersey stepped in and passed a law
which enabled them to legalize and per
petuate themselves as a combination or
business unit by means Of holding com
pany. And SO they continue to this dav
And then followed the formation Of MANY
other trusts ~ the same way Some other
States passed law similar to that Of New
Jersey But fourffths of the trusts Of
TINS country are organized and exist under
this New Jersey statute
Mayor Gaynor did not criticise DR. Wilson
nut his comments on legislation III New Jersey
since Wilson became governor carr, tba;r o,,
implication Why did not Governor Wilson urge
| the legislature to apply remedial legislation !,
me question that naturally suggests itself WHY
dld he eontne his attacks on the trusts IA III
Speeches on the stump in advocacy Of his nres
dental candidacy instead of attacking the law,
creating them aud shielding them from renalla
o1ht lie has lei The trustbreeding statutes alone
/ Whlle denoune5ng the trusts for potifieal e.
lle controlled the legislature n ths ma.,.r !.
@leeting United States senator but nade n
effort 10 reform the corporation laws III n.
/ stHir although their sinister operation has b.,
notorious for many wears