The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1912-10-13
IN LOCAL FINANCIAL CIRCLES
BY GEORGE H. GALL.

enhCtHtHt VI u ihouti
law for the District of Columbia, pend
ing the passage OF Federal law. 10
advocated by J. selwin TAFT, president
Of the washington and Southern Bank.
in a pamphlet now being privately Is
sued by the author.
III II seems probable that Federal
law cannot be passed at an early date,
I would strongly urge the enactment OF
a model incorporation law for the Dis
trict Of Columbia. over which Congress
has Jurisdiction" Mr.. TAFT says.
There 10 no place in the United States
where this could be done with SO little
difficulty and to such advantage as an
object lesson. Unlike the different
States whose constitutions might be
found to present many difficulties, we
have very little OF a constitution to
trouble ourselves about here. and the
power OF Congress Is as absolute In
Washington as that of the British par
lament In Westminster. Such a law
II held up as a pattern to the different
States would aliay all fears that any
thing drastic was contemplated by our
legislators. In this way Its passage
would have a far-reaching and bene-
ficlal effect, while the questions OF re-
straint of trade. interstate relations,
ETC.. could be threshed out to the salts
faction OF those concerned.
with the passage of such law and
the incorporation Of Its simple provi-
sions into the statutes of our leading
States-as would inevitably happen for
the purpose Of protecting their own in
corporation business. IL for no other
reason--a new era of confidence would
set in
Few pamphlets are more timely than
Mr.. Tait's, THE Relation OF Banking
Reform to Corporate Financing"
Starting with a description of the
English and German corporation work
prior to the great reforms of those
countries. respectively, In 1852 and 1851
a condition which has an unpleasing
resemblance to the state Of affairs ex-
work brings their corporate history
down to the present time and shows
the tremendous effect for good these
reforms have had-how. for instance.
in England they changed that country
from a nation Of shopkeepers to one of
stockholders and built up her commerce
until her national income has reached
the almost unimaginable figure OF ten
billions of dollars, while similar re-
forms in Germany have changed that
a purely agricultural country to one of
the foremost manufacturing countries
In the world.
Mr.. TaIt's exceptional experience as
miliar with his subject, lends great
weight to his utterances, the value OF
which Ia enhanced by the lucid and at
tractive style Of the practiced writer.
The pamphlet compares the condition
of our domestic corporation laws with
nf CpttntFtaa named and IL IL
| a very humiliating comparison Tor THIS
| country, showing as 1t does that In
! consequence Of the absence OF goou
, corporation laws the investment money
! of this country Is diverted from Its legi-
| Innate channels to the irreparable loss
| of the country's commerce.
! Mr.. Tait's entire pamphlet Is power
| full plea for reform of our corporate
laws and efficiency In our courts to give
effect to these laws-and he shows ~
a clear and Ineligible fashion how the
reforms we need can be brought abou,
without dislocation OF the country's
| commerce or finances.
| This is a pamphlet which the states
! man and the banker can read with
profit. 1t Is a new presentation OF q
! burning topic--a work Of wide expert.
! ence as we'll as erudition--and. summed
! up In few words. 1t Is powerful
! ment OF the American investor.
The Investment Bankers Association
OF America has asked Mr.. TAFT for 81
copies for its members.
New plans for the extension of the
| PENNSYLVANIA railroads influence ir
southern Maryland. and the completion
OF the Drum Point line by that corpora
ton. are involved in a report from Bal
timore today to the effect that thu
Pennsylvania has purchased the Chesa
| xriI II q
| Washington connection for the Drum
Julian e. lettings. Of the Maryland
! Trust Company, and associates, arr
named as those who negotiated tne sa u
an agent OF the Pennsylvania for 5000
CO., The property is said to have cos
One OF the best deep water terminal Il
on the Atlantic coast Is situpated a
Drum Point. The growing trade witt
south America seen in the recent estab
iishment Of new lines from Mobile ant
New Orleans. together with the futur
activity incident to the opening OF IN
tive for the Pennsylvania ACQUISITION
OF the road and its projected establish
ment Of q new coast terminal.
| No confirmation Of the report could b
the Chesapeake Beach road. is at pres
| emit in Chicago on his way to Denver
where, It is frankly admitted here. h
| In going to seek some definite informa
| lion about the financial status OF tn
property from the executors OF tn
IT, is stated autho .ttatively here tina
the Chesapeake Feach road mas JUS
| closed its most prosperous season. u
spiie Of a late stair In June. The imam
ciai report Is made only to the Inter
| state Commerce Commission.
Mas Alice Z. Malone. of Carpenter
paeeot a. Co. is to be the first woma
10 hold a place on the board OF diree
tors of a Washington bank. She Is I