New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-01-15
LBy telegraph to HE Tribune

Trenton, y. j., Jan. 14.-Governor
wilson's farewell message TO the New
Jersey Legislature was submitted to-
day In a brief communication, in which
the President elect urged changes in
the corporation laws of the state to
make the organization Of holding COM
panies impossible hereafter. He also
asked that a Law be passed giving
over the schoolhouses of the state for
public meeting places to discuss Ques-
tons Of public moment.
The message further urged the hold
ing Of a constitutional convention TO
change the basis of representation in
the Legislature, local self-government
for municipalities, the elimination Of
grade crossings under the supervision
Of the Public Utilities Commission, the
extension of state subsidized agricult-
ural schools and a full train crew law.
Governor Wilson also strongly urged
the ratification Of the amendments to
the federal Constitution which provide
for an income tax and for he direct
election Of United States Senators.
In addition. Governor Wilson called
attention TO the legislative commits
sion now at work investigating taxa
ton. jury reform. Morris Canal aban-
donment and efficiency and economy in
state departments.
Laws Encourage Monopoly
The Governors suggestions and rec
concentrations as To corporation laws
were in part as follows:
The corporation laws of tho state noto-
T!ouSly stand i'm need Of alteration They
are Wauifestly inconsistent with the pol,
icy Of the federal government and with
The interests Of the people in the all i'm
Tortant matter Of monopoly, 10 which tn"
attention of the whole nation is now 50
earnestly directed. The laws Of New JeI-
sel. as they stand, SO far from checking
monopoly, actually encourage il. They
explicitly permit every corporation
formed in New Jersey, for example. TO
purchase, hold, assign and dispose of as
II pledScS the securities Of any and all
other corporations OF this or any other
stat" and 10 exercise At pleasure the fun
tights Of ownership in them, including
!
nothing less than an explicit license of
holding companies. This Is the very
method Of forming vast combinations and
creating monopoly against which tho
whole country has set its face and ] am
sure that the people Of New Jersey 10
lot dissent from the common judgment
that our law must prevent these things
and prevent them very eneCtudllN.
II is our duty and our present Oppor-
unity 10 amend the statutes Of the stat"
lE This only hIlf .tlGp C1lgh
way as 70 provide some responsible
official supervision Of the whole process
OF Incorporation, and provide, in add
uon, salutary checks upon unwarrdntcd
ana fictitious increases Of capital and the
issuance Of securities not based upon
actual bona 1de valuation. The honesty
and sounoneSs OF business alike depend
upon such safeguards. No legitimate
business will be injured or harmfully re-
strlcted by them. These are matters
which affect the honor and good faith of
The state. We should act upon them at
once and with clear purpose.
The Governor then took UP the pro-
lection Of investors are follows:
The people Of the state are AZ present,
moreover. al the mercy of investment
companies of every kind. Securities Of
any and every sort can be sold in New
Jersey by irresponsible persons and tho
purchasers must depend upon their own
Investigations to ascertain whether they
are bogus or based upon good business.
They should have the protection Of tn"
law. Investment companies should be
put under inspection and regulation by
the state, and no one should DE allowed
70 sell securities in New Jersey without
public license issued from tn" depart
ment exercising the rights OF inspection
and regulation. New Jersey is very late
indeed in affording her people this pro-
lection