New-York tribune., 1912-02-10
CHEMICALS COME NEXT RESENT GAyNOR'S SLAP
Governor Wilson's Friends Point
to His Message.
URGED CORPORATION LAWS
New York Mayor Hadn't Been
Following New Jersey News,
Is Assertion.

Trenton, n. j., Feb Ex-Governor wilson
was not at the State House to-day. lie
was in Kentucky telling some of Marse
| IIenrys friends what, in his opinion con-
stituted a good Democrat, and, OF course,
could not reply TO Mayor Gaynors speech
at the Democratic Club last night. HIS
| friends here to-day sad however. that the
proba were that when he returned to
| the capital on Tuesday he would make
Mayor Gaynor one of Mr.. Watterson's as
socates in the Ananias Club
In support OF this the Governors friends
said the Mayor Of New York City appar-
emily had not read Governor Wilson's first
message TO the New Jersey Legislature
when he said that four-nfths Of the trusts
were Incorporated in New Jersey and that
no New Jersey Governor had ever recon-
mended the repeal of the law under which
| they were formed. It was pointed out that
in his campaign for Governor DR.. Wilson
had laid particular emphasis on the cor
poration law of the state, saying that 1t
was a disgrace to the citizens Of New Jer-
! sey that there was such a law on the
statute books OF the state.
! In his inaugural message to the New Jer-
sey Legislature Governor Wilson had the
following to say regarding the corporation
| laws OF tho state:
| ] would urge the imperative obligation OF
! public policy and of public honesty we are
| urder to effect such changes in the law or
! the state as Will henceforth enectualiy pre-
vent the abuse of the privilege or incor
pOI alton which has in recent years orouBnt
! so much discredit upon our state. In order
| TO do this il will he necessary 10 regulate anu
| restrict the issue of securities, TO enforce
! regulations with regard to bona noe capital
! IoyamipipR vigorously the D.SlS or cap
| itallzation. and TO prescribe methods ny
| which the public shall be safeguarded
against fraud, deception, eXtortion ana
| every abuse of its confidence.
| And such scrutiny and regulation ought
not 10 be confined TO corporations seeklnE
| charters. They ought also TO be extended
| license and authority OF the state. For the
! right to undertake such regulation Is sus-
| ceptble Of easy and obvious justification.
| a modern COrporatiOn-that Is, modern
| stock company-is in no proper sense an In
! innate or private concern. IL is not sct up
| on the risk and adventure or a Few per-
sens. on the contrary, 1t is set up at What
may be called the common risk. II Is
! risk and adventure In which the people are
Invited TO share. and the hundreds per-
, haps thousands who subscribe to the STOCK
sharing also. in any effectual manner. IN
| the control and development Of the busi-
ness in which their risk Is taken.
| Moreover. these modern enterprises "tbe ,bn
common store of the savings OF nation,
conduct business transactions whose scope
and influence are wide as the whole na- %
tfon itself They affect sometimes me
/ lives and fortunes Of whole communities
dominate prices. determine land values.
mako and unmake markets; deVelop or
| check the growth Of city and or country
| side. II law IS at liberty to ad1ust 'ne
| general conditions OF society Itself IL IS AZ
| liberty TO control these great instrunlenIan,- L,
ties which nowadays IN 50 IaISe UHhar,
| determine the character or society. Wnel-
| ever we can find what the common lhIeI
| est is In respect Of them we s.aII III" "
| solid enough basis for law for REFORM
It Is significant. however, that after MI
Wilson became Governor OF New Jersey ne
did not exert himself in any way to nave
| these laws repealed. In his second mes
sage. that of last month. he ignored the cor
noration law proposition entirely ana this
"a accounted for by the fact that since ne
| has taken hold of the affairs OF the state
| he has learned that the tax from the cor
porations is an important part OF the reve-
nue. OF the state. and that II these laws are
repealed a direct state tax will follow
| New Jersey at the present time receives
lannroximately S2S0O,000 from miscel-
laneous corporations in taxes, the united
States steel Corporation contributing Tor
,,stance. n little more than s47 900 each
wear. The total taxes collected each year
from these miscellaneous corporations pays
more than half of the administrative ex-
ecutlve. judicial and legislative expenses OF
the state. and II the law were repealed II
would mean that this expense would have
70 he borne by tho taxpayers. Mr.. Wilson,
| Il "a said. probably realized after he had
becoue Governor that the repeal OF this
law would prove unpopular, hence his ret
,corco regarding IT in his second message.