The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1908-02-07
Bio Fine and Prison for Those
Who Don't Make Good.
Uncle Sam Can Make Inspec.
ton Of the Company.
Government Will Keep in Touch
With the Corporations.

Washington, Feb 5.-Senator Nelson's
bill for federal incorporation of COM
panies engaged in interstate commerce
introduced yesterday is receiving much
favorable comment.
Senator Nelson's bill provides for
voluntary Incorporation of all compa-
mics engaged in interstate commerce
and provides that the measure shall APP
ply to all officers, agents, incorpora-
tors and stockholders of corporation
that shall take advantage of the pro-
visions of the law. The life of fe-
deral corporation shall be fifty years
and the name to be attached to such
corporation for the purpose of CLASH
flying it shall be the Interstate Com
merce company"
Governing Amount of Stock.
Full provisions are contained for gov
erning the amount of capital stock to
be issued, the par value of each share,
the amount to be paid in on each share
subscribed before the company engages
in business, together with all details
concerning the organization and fair
value of the property owned by the
company. The articles of incorporation
are required to be filed with the COM
missioner of interpretations.
The name and address of every sub
scriber for the original stock and the
number of shares taken by him and the
amount of cash labor or property paid
for each share is also required.
As an illustration of the general
character of the measure, section 20
specifies the purposes to which the
gross earnings of the company shalt
be devoted, viz: The payment of all
operating expenses, taxes, interest on
bonds and other fixed charges and La
bilities; the cost of maintenance, re-
neWal, replacement and repair of the
plant and appliances; dividend not
exceeding per cent upon the amount
actually paid in on each share of stock,
not exceeding its par value, such divi-
dends payable in cash and not in stock
scrip or property; payment of addi-
tional cost of plant and appliances.
Relating to Stocks and Bonds.
1t is provided that no stocks OF bonds
shall ever be disposed of for the pur-
pose of making additions to the plants,
renewals or requirements so long as
the gross earnings will yield a suffi-
cheney for that purpose, nor shall any
dividends be declared or paid except
from the earnings of the company.
A penalty fine of not more than
$4,000 or by Imprisonment not exceed
ing two years, or both, is imposed upon
any officer violating the provisions of
the law regarding the use of the gross
earnings or the disposal of the sur
plus.
General provisions are made for re-
ports to the government setting forth
all facts concerning its operations,
the amount of it's stock outstanding
and what has been paid for stock.
Failure to make such reports is punish
able by fines of not less than $500 nor
more than $4,000. Heavy penalties are
included for every officer or employee
who shall knowingly make any false
statement or false entries in books
of the company, and these penalties
include fines running to $1,000 or i'm
prisonment not exceeding two years.
Punishment is Provided.
Punishment is also provided for every
officer or agent who shall fail to ex-
ecute any work in behalf of the com
pany. Not only are fines and i'm
prisonment in the discretion of the
court provided for such offenses, but
also liability to civil action for all
losses in consequence of such INSIDE
meanor. Penalties also are provided
for Withholding or improperly increas-
of funds other than gross earnings.
Limitation is also made to govern the
power of an interstate commerce COM
pany to charge more than just rate
of compensation for any work it may
perform, and penalties for any conces-.
sions are carried in the bill.
Senator Nelson's bill also provides
that company shall pay annually to
the United States 2 per cent of its
gross earnings in lieu of all taxes on
its franchise and personal property.
The real estate of the company shall
be subject to taxation under the laws
Of the state or territory in which it
it situated. Visitorial powers are con-
ferred upon the government over the
In case of misuse or non
use of its franchise or for the usurpa-
lion of any powers authority is given
The attorney general of the United.
States to maintain suits against the
dissolve 1t and wind up
it's affairs.