Evening journal., 1913-02-22
TRUSTS" LIKE
THE JERSEY LAW

TRENTON, Feb. 22.-Governor Will
sons corporation laws, known pOpul-
arly as the Seven Sisters have not
produced any OF the symptoms of
hysteria alarmists predicted, ana
there is no evidence, it was said at
the office of the Secretary Of State, to-
day, that the threatened exodus OF
holding companies will take place.
In fact, prominent lawyers and fin
anciers in this city declared that the
corporation that either steals away
from New Jersey or new concern
that goes to some other State TO seek
a charter will now be placed under
suspicion
What loss of revenue to the Com
mOnwealth will result is still a matter
of conjecture. Since Delaware has
been offering new corporations such
tempting terms the receipts for char
ter filing at the franchise tax Office
have fallen off about one-half here.
There was paid for franchise tax in
1912 S2.391,969 and for filing fees on
new charters 71,078.S1. II was
estimated that the franchise tax this
year would reach nearly S3,0OO,OOO
under the old law, and there is a be-
lief at the State House that there will
be no material falling off in this form
of revenue under the Seven Sisters"
act
Rich Rit of Territory.
There are about 3 corporations that
have a capitalization of s50.000,000 or
over in New Jersey. and should all
remove from the State the receipts
from the franchise tax, II was said by
State officials, would fall off about
$4,000 a year. But, according to an
official of the First National Bank,
New Jersey is too rich a bit Of ter
ritory in which to do business for any
concern to run away.
II is still possible to take out any
sort of a charter in New Jersey.
Should a corporation capitalize an old
spawned horse at s10,0O0,O00 and take
oath that no fictitious value had been
given to the proposed stock issue, the
/ Secretary of State would have no op-
tion save to grant the charter. How
ever, the Seven Sisters" laws are
lpredicated on the principle that guilt
/ is personal and the officers OF the
new concern would forthwith be in
the hands of the Attorney Generals
Department. And the Wilson bills
swing prison doors wide open for
malefactors Of wealth
"Will the new corporation laws
drive away business?' That question
the one uppermost in the minds Of
thoughtful men, was put today tc
bankers. prominent lawyers, manu-
facturers and one OF the most eminent
jurists of the State. The sum Of their
replies follows:
"No honest corporation has any.
thing TO fear"
"The hour has struck for the hold
ing corporation"
when men .are. assured that. Tho
stock offered has a real and not {
fictitious value there will be more in
vestors and not so much mone,
boarded in banks drawing a low rat,
Of interest"
"States that have offered better
terms to corporations for the sake o.
getting the fees, agreeing not to ssl
any bothersome questions, will be un
der ban and corporations refusing
to come here for charters will excite
suspicion that their stock is badl,
watered
"The Seven Sisters" presage similal
laws nationwide in scope; ever,
State will fall in or be in bad odor
president Taft by his prosecution
Of the Oil and Tobacco Trusts, forcing
the dissolution Of the holding com
panies, paved the way for Mr.. Wilson
whose laws for this State indicate tn
character of measures he will deman'
as President"
Good for New Jersey.
Barton b. Hutchinson, one of tn
leading attorneys in this city. salt
without reservation that he believes
the new laws were good for NeV
Jersey"