Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-03-29
REVIEW OF LOCAL MEASURES
BILLS BEFORE CONGRESS APP.
PROVED BY MR.. WEST.
Proposed Enactments Affecting Cor
porations-Adverse Report Upon
One-Provisions of the Code.

| Three separate bills affecting the laws
| governing corporations in the District of
Columbia have been referred to the Com
| missioners since the opening of Congress
| for a report upon their merits and pro-
pretty One of these bills requires do
nestle corporations to file annual re-
ports Of their business. one prohibits any
foreign corporation from engaging in such
business in this city is not permitted
to domestic companies under the code and
the third proposes to eliminate from the
code of law the provision. that nothing
herein contained shall be held to authorize
the organization of corporations to buy
sell or deal in real estate except CORPORA
tons formed to transact the business or
dinarily carried on by real estate agents
or brokers'
Commissioner West to whom these pro-
posed measures have been referred, has
made recommendation to the board of
Commissioners upon each bill. He favors
the enactment of the first two named and
recommends an adverse report upon the
last.
In his recommendation regarding the
bill regulating the foreign companies Mr..
West declared that such bill. If en-
acted, would remedy serious existing de-
ficiencies and omissions in the code. There
is no provision at present which prohibits
foreign companies from engaging in bust
ness the transaction of which by domestic
companies is not allowed. the result being
that outside corporations can and do
come into the District for business which
the local concerns are prohibited from
transactng.
Provisions of the Bill.
This bill makes il unlawful for any
foreign corporation to engage or continue
in ms filed r.
tilted copy of it's charter or certificate of
Incorporation in the Office Of the recorder
of deeds, and requires, Also that such
corporations shall file with the recorder
such annual reports and statements as
will enable the District authorities and
the public to obtain the same information
regarding such corporations as is given
by local corporations. guaranteeing that
the same publicity shall obtain hereafter
regarding foreign corporations as is re-
quired of local corporations.
Every foreign corporation is required
by this bill to appoint the recorder of
deeds and his successors in Office to be
it's attorney upon whom all process in
any action or proceeding against 1t may
be served. thereby making 1t possible to
obtain at any time and with the utmost
dispatch service of process upon any out
side corporation engaged in business in
the District AS the law stands now
service upon any officer or agent. or en-
ploye. of foreign corporations transact
ing business here without having any
place of business or resident agent in the
District is made effeCtual. but the method
proposed in this bill is not only much
more expeditions. but also much more
desirable according to Commissioner
West.
In his recommendation Mr. West says:
THE bill further deserves commentator
for the reason that 1t provides that every
foreign corporation engaging in banking,
mortgage loan investment or trust busl-
ness here shall indicate, in letters equally
conspicuous with its name. upon all signs,
advert iserlents letterheadS. etc, the state.
Jurisdiction or county in which it is char
tered or Incorporated.
For Annual Reports.
The second bill-that insuring the filing
of annual reports by domestic corpora
tions-makes the law effective by author
izing prosecutions against all corporations
falling to comply with the law. with the
view of restraining them from doing bust
ness in the District, and 1t also makes
any willful false swearing in regard to
any certificate report or statement, or
notice required by the code relating to the
corporations punishable as perjury.
1t also designates as larceny any misap
preparation of any money of any organi-
cation formed under the provisions of the
District corporation laws, and punishable
as such. applying as we'll to the misap-
preparation of any money, funds or prop
erty intrusted to such corporation. Mr..
West says this legislation is urgent.
The bill upon which Mr.. West has rec
commended an adverse report proposes to
amend section Cos of the code of law of
the District of Columbia. relating to cor
poratons This is intended to eliminate
that section of the code which prohibits
corporations from buying. selling or trad
ing in real estate, or such business as is
ordinarily carried on by real estate agents
or brokers.
Original Code Provisions
The original section of the code on this
subject included authority for the creation
"of corporations to buy. sell or deal with
real property but these words were
striker out by an amendment, approved
June 80, 1902, and the express prohibition
inserted. The proposed legislation Is
sought to allow interpretations in two
specific instances. and while it is believed
by Mr.. West that little or no harm could
result II the operation OF the proposed
law should be limited to these instances,
careful inquiry indicates that If the pro-
hibit!on is stricken from the statute books
the door will be opened for real estate
transactions of d doubtful character. 1t
is for this reason that Commissioner West
disapproves the enactment OF the law