The News-Herald. [volume] (Hillsboro, Highland Co., Ohio) 1886-1973, 1908-06-04

II will not be believed for a moment
that the congress Of the United States
or the executive officers Of the govern.
ment would ever prostitute them.
selves to the snactmen of such loose
Incorporation laws as are found in
many OF the states. No sane business
man believes that there will ever
again in the Federal government be
too much laxity in the control and
management of corporations.
II may seem paradox!cal, but II is
true, that the corporations will escape
severe and probably unfair future con.
troll by insisting upon n thorough and
sensible rresent control of their cor.
porate acts and functions. At the
present tire there is much freak legis.
laton against corporations by many
states. and, while this will not last, It
will bring with IL and leave behind II
disorder and loss.
What a wonderful advantage would
result II the legitimate businesses of
the country everywhere we're control.
led by and subject to one legislative
body enacting stringent and effective,
but not transient and contradictory
incorporation laws. instead of having
this work done by the legislatures of
46 states. To many business men II
seems as II new era in business
would dawn If the federal govern.
ment could thus control corporations
by stable and uniform laws that will
encourage and protect all legitimate
industries, and thus force the promo
ter to quit. the swindler to withdraw
or go to iail. and give some measure
Of protection to the poor deludsd in
vestor who sees in an advertisement
or prospectus the competence which
ne fears he will not be able to secure
by daily toll.
II is the Federal government that
the dishonest promoter fears and not
the state Governments. The enact.
ment of Federal laws for the incorpor.
alton and regulation of monopolistic
and competitive corporations would
serve IS models for the states and the
attempt to formulate and enact such
laws would develop an educ ational
discussion OF great value.
Business men believe II is wiser
and safer for the Federal government
TO permit no corporation to engage in
interstate commerce which is not in
corporated under federal laws. In its
attcnpt to control interstate com.
merce, II the Federal government !
should merely license The state cor |
porations, a double jurisdiction would |
arise which would bring about conflict |
between federal and state govern. |
ments and would aggravate rather
than soften the jealousy between the |
two jurisdictions.
The first Federal incorporation law |
should be made simple, making the |
first step short but firm between the |
idea of state and that of national In
Wisdom and experience
will suggest in the course of time the
additions TO the law which may be
found necessary. There should be one
lies and another for the incorporation
Of competitive businesses, and each
law should be administered by a co.
ordinate branch of the executive gov
The incorporation and reg
ulatory laws should identify all trans.
actions by their generic character. not
by their size, the amount of capital
or the number of persons
associated in making the transaction
Or the form of its organization.
One Of the great business bodies OF
the country declared recently in a
series Of resolutions that one of the
most important factors for the stabil.
ty and prosperity of business affairs
n the country in the future is the fed
eral corporation of all interstate com.
nerce corporations. AS a result, cor
oorations of public and semi-public
character, the stocks of which are list
I'd on the exchanges for sale, will be
10 justly conducted that workmen and
citizens of small means and the people
will find investments In
hem at least as safe and profitable
Is the individual enterprises which
ire being superseded by such corpora.
ions. II the congress should go no
II was the judgment of this
association that all railroad and other
companies engaged In
Interstate commerce should be COM
,elled to incorporate under federal
avs.
The nAgntnv % ..,ox LauA |