The Mathews journal. (Mathews C.H. [Court House]) 1903-1937, 1912-11-28
VIRGINIA FAIR
TO CORPORATIONS
RICHMOND, VA.-SpeciaI.

X / C ii NJ o n ID, VA.-SpeciaI.
business men ana others seek
ing inv eStmentS must have been
struck. within the last year or
so, with the astonishing number
of big corporations that have pro-
cured Virginia charters at the
hands of the State Corporation
Commission.
Aside from showing the pres
ent activity i'm the commercial
and industrial world, these Old
Dominion charters also tell an
other story which Is altogether
pleasing. They prove that the
laws OF the State in connection
with corporations are becoming
widely known throughout the
Union, and that investors every
where are seeking TO avail them
selves of Nirginia's liberal atti-
tude In the matter OF allowing
franchises.
But VirginIa's liberal attitude
should not be construed to mean
that her laws are lax and AFFORD
poor protection TO those buying
the stocks and other securities OF
big concerns. Precisely the Op-
pOsite Is the case.
In order TO comply with the
rules OF the State Corporation
Commission, incorporates must
file sworn statements of their en-
tire financial plans, so that no
possible misunderstanding of
their fiscal schemes may occur
among those who take even rea-
sonable precautions In making
investments.
In other words, Virginia takes
this position; she lets the con-
Germ organize on pretty much
whatever financial basis IL
chooses, but that basis must be
explained in detail in Official
statements filed with the COM
mission. so that the public may
be safeguarded. And these state
mentS are open to the inspec-
ton of all or will be explained
on inquiry. To practice deceit in
them or TO attempt to evade the
truth Is to run the risk OF prose-
cutiOn and severe punishment.
But more of this anon.
GETS BIG REVENUE FROM
THIS STATE.
IL Is pleasing to know that
aside from the industries WhiC h
have been attracted to Virginia
by her liberal and fair statutes,
the Commonwealth oven now Is
deriving immense revenues from
the taxes and fees they pay. One
big concern, for example, pays
more than enough In annual fees
to pay the salary of the Cover
nor.
Within the last twelVemonth
from ten TO n dozen corporations,
with capital stock ranging from
100000 to 100000, 900, have
procured Virginia charters. Fac n
of these has paid an initial or
charter fee amounting TO 5000,
and eaC n. in addition will pay ar
nuaI fees as follows: Two hum
dred dollars on the first million of
capitalization anG $10O on each
additional million of Capitaliza-
ton.
Section 16z of the new .Constitu-
ton, which, by the way, is pro-
nounCcd u masterpiece e in the way
of craftsmanship and which is the
creation of Allen CapertOn BraX-
ton, furnishes the basis for most
of the Virginia laws pertaining to
corporations.
IL reads in part as follows:
''The General Assembly of Vir-
ginia shall enact general laws reg
Ulating and controlling all issues
OF stot k and bonds by corpora
tiOns. Wheneyer stock or bonds
are TO be issued by corporation,
IL shall. before issuing, the same,
file with the State Corporation
Commission statement VERIFIED
by the oath Of the president or
secretary of the Corrniop and
in suI n form M may pc preSe ribed
or permitted by tie commission)
setting forth fHlly and accurately
the basis or finanS ial plan upon
whieh tsuch stock or bonds are 60
be issted; and where such basis