The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1912-01-06
SUPERVISION 0F CORPORATIONS
n. NJ. McCOwN PREPARES HIS
ANNUAL REPORT.
Secretary Of Ssate Discusses Several
Quessions Of Importance = Fees
Amount To Over $4,000.

fake and wildcat securities OF swind-
ling concerns and thereby prey upon
the credulous and ignoFan. citizen"
This statement is made by r. "a. Nc
Gown. secretary OF State. In his an
nuai report In recommending the SUI
psrvision Of certain corporations. SELL
ing stocks and bonds. by the State
Insurance department or the State
bank examiner.
In his annual report MIR. McCown
shows that sss.sob.s2 has been re-
csived by his ONCE az charter fees
during the year. He recommends the
passage Of a law for uniform ana
central registration Of motor vehicles.
In my report for 1sos," says Mr..
NcCown. "the following paragraph
appears: The grant OF corporation
- TO bestcw the character and prop
critics Of individuality on collective
and changing body Of men. recogniz-
Ing them a. a separate legal entity In
Standardization 20 Joint proprietors
or partnerships. Corporate powers
are not natural rights. they are privi-
lsges conferred. and the only justi-
ncation for the grant Is one Of gen.
crsl welfare. A corporation Is said to
b creature without q conscience.
and creature without conscience
win dhregard the rights Of his fell
lows rhe State can not AFFORD to
create .. creature without making 1t
amenable to just and adequate laws
holding II responsible and to strict
accountability for its acts and do
fngA which can be done only by le-
gal regulation and supervision. The
yighs Of supervision and restriction
inheres in them. and Is just as broad
. the interest that may be affected.
Corporate securities and stocks and
bonds Of. corporations constitute
farre Per cent Of the collateral for
the trannction Of business. and the
investor needs the protection which
comes fr,m supervision and publicity.
In recognition OF this fact. your hon
orabie body at its last session passed
two acts. one to prevent the fraudu-
lent use OF credit by corporations.
and the other requiring sworn state
msnts to be sent out annually to all
stockholders These acts are COM
mendabie and to some extent meet
the requirement. but / know Of no
reason Why the jurisdiction Of the in
surance commissioner should not ex-
tend to Investigate companies. Cor
pcrste existence N almost as old as
efvilized government. and its right
60 exist too well established and rec
oonised to be disputed. 1t Is the life
and energy Of enterprise and business
and would not have It dwarfed by
hostile iegislation--such would be
commercial suie debut no abuse
should be permitted and every phase
Of supervision or legal enactment
which tends TO prevent abuse should
be considered. This Il the duty OF
the sovereignty. which has the sole
right to create the corporation. and
such policy would be fostering power
for healthy growth. I reiterate and
emphasize the statement that I know
% no good and valid reason why
every corporation or company organix-
"a I'm this state or elsewhere selling
or negotiating stocks. bonds or other
securities. except government. State.
county. municipal. township and
school bonds. should not be placed un-
der the jurisdiction Of the insurance
commissioner OF OF State bank ex-
aminer. such companies should be
required TO file with said Office be-
fore engaging I'm business, and an
nually OF semi-annualiy thereafter.
sworn statements in detail. as pre-
scribed by him. showing its financial
condition. assets. liabilities. descrip.
ton Of property owned. plan OF op-
eration and form OF contract used.
They should also fiie a copy Of their
charter and bylaws and furnish
such other information regarding its
Affairs az said ONCE may require. and
obtain license or permit before do
ing any business.
Persons should not be permitted
to hawk and peddle fake and Wild
cat securities Of swindiIng concerns
and thereby prey upon the credulous
and ignorant citizen. Widows with
Insurance money to invest and the
uDwary and unframed In business af-
fairs need protection from these slick
agents and stock-peddling pirates.
When nnr cltizanz ara thna ,,ictipnizad