The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1912-12-17
OUTLOOK ARTICLE
MAKES SENSATION
Wide Comment on Criticism oi
Virginia Law on Grant
ing Charters.
MAY CAUSE LEGISLATION
Clerk to Corporation Commission
Explains Why Charters
Are Popular.

Intense interest was felt in this city
yesterday over the severe criticism Oi
the Virginia corporation laws by the
outlook. as republished in The Times
Dispatch. Lawyers generally com
mented on the situation, business men
discussed the points in the OUTLOOK
argument, while at the Capitol every
body had read IL and had somethlhs
TO say about it,
IL is regarded as possible that a
statement may be issued regarding
the matter by the State Corporation
Commission the body which grants
charters TO corporations in this state
Information as TO this, however. was
not definite yesterday. 1t was further
suggested that a committee OF the
Richmond Bar Association may take
the affair up and have an Investigation
and make a report TO the puohc.
May Amend Law.
Already there is much 'alk VI
amendments to the incorporation laws
al the next session OF the Legislature
II is felt that 10 have the proceed
jngs of a Virginia tribunal character
ized as a license to steal by ma
tional periodical of eminen: standing,
and to have il predicted that Invest
ors will beware of companies char
tered in this State. is serious dow
and one that ought not to be lett I'M
noticed
Not doubling that the charter re-
Gently granted the Tobacco PRODUCTS
Corporation contains the objectlonaple
provisions cited by the outlook. II was
explained yesterday that the state
CORPORATION Commission is purely
ministerial Body, its duty being 10 see
that charters applied for comply with
the provisions of the general law. Inc
commission may not add TO the pow
ers OF any concern, nor can II take
from il any powers or privileges. All
are fixed in the general law. That
the statute might be amended. II is ad-
rnitted to be perhaps desirable
No Powers Conferred.
If. then. it is stated, any privileges
were granted the Tobacco Products
Corporation which are improper ana
which do not safeguard the interests
of the stockholders, those privileges
cannot be exercised. and, II attempt u
made TO exercise them. the proceedings
NAV be attacked in the courts and the
validity of the charter disputed
Richard T. Wilson. clerk 10 the
state Corporation Commission. goes
further and thinks that the charter
referred TO is not capable OF the
construction lidItu Oi ~ ~ NAN
look No court, he believes. would
read license to commit fraud into
charter. and would only permit the
things specified. provided no fraud or
wrongdoing appeared.
Sell stock at Any Figure.
The virginia laws. said Mr.. wilson.
are liberal in that they permit the
issuance of stock at any price-at
I cent on the dollar. IL desired. but
they also require that the details. with
the price, be reported and sworn 10 for
public inspection. In other states IL
is required that the capital stock De
fully paid at par. and the concsi ms
must certify TO this. But there. ne
saws. worthless patents or other scch
property may be put in at the price
OF a fortune in payment for stock. and
the ends of the laws are cheated.
Virginia the stock may be sold as de-
sired. but the truth must be told
about 1t.
Certain il is that the many charters
70 big concerns organized elsewhere
have attracted much attention in VIZ
cinia during the past year. TWO more
were granted yesterday by the stat.
CORPORATION Commission One OF these
is TO the Utilities Security Cor
poration. with a minimum capitsi
OF $1,000. and a maximum OF Si'9Vo'-
200. Ernest B. Flippen is president :
II H Chalkley. vice-president. ana
John B. Marsh is the other incorpora
TOR. Mr. Flippen and Mr. Chalkley
are Richmond men. local residence De
ing required to an extent under the
law The other paper issued yester-
day IS 10 the Sci Amaigrisant CIarks
Corporation. with capital from sI'VvV
=
dant. Thomas 3. Gay. vicc-president.
md II II. Chalkley. secretary and
treasurer All live in Richmond.