The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1909-07-08
Attorney General Wickersham
Makes Notable Speech
at Paducah
RECOMMENDATION MADE
FOR NEW NATIONAL LAW
Wlckersham Says That Corporations
Have Existence In Any State
Where Goods Are Shipped as
Well as Home State.

Paducah, KY, July Estate Control
of Corporations Doing an Interstate
Business" was discussed in an address
before the State Bar association by
George w. Wickersham, Attorney Gen
eral of the United States, in this city
today. OF paramount Importance be-
cause Mr.. Wickersham gave complete
reatment of the trust question as it
appears to the national administration,
the address was notable chiefly for tn 9
recommended tion made by the Attorney
General that Congress should enact
law providing for nationally created
corporations to carry interstate
commerce.
Previously by exhaustive reference to
important state and federal court de-
risions, Mr.. Wickersham had sketched
the ways by which states may regu-
late business of foreign corporations
within their boundaries and had ad-
vocated that the license of any foreign
corporation be vacated If SO per cent of
its stock was owned by any company.
domestic or foreign, or If that amount
became later owned.
Interstate Commerce.
Taking up the definition of Interstate
commerce. though Mr. wickersh am said
It would be rash at this time to sug-
gest a definition of what 1t is," he
quoted Justice Harlan of the supreme
court of the United States. that it is
mot a technical legal conception, but
practical one"
This brought the Attorney General to
his main declaration that Congress
should organize corporations to carry
on interstate business. because of the
general legal complexity of regulating
that traffic.
"Of course many will object ts the
centralizing tendency of a national law
authorizing the formation of corpor-
ations to carry on Interstate business"
concluded Mr.. Wickersham, "but such
law seems to me to be the inevitable
result of economic conditions
Mr.. Wickersham said this was logi-
cal follower of the recently passed tar
iff tax on corporations
State Control.
Though in a national sense the ad-
dress was chiefly notable for the recon-
mendation of national Incorporation, its
effort to show the separate states how
they may control the business of for
eign corporations In their limits was
an important feature.
The attorney general began with
what he declared to be quoting an ar
gument once made by Daniel Webster,
"the fallacy of the proposition that
corporation can have no existence be-
yond the limits where 1t II organized"
Following this conclusion he took up
the question of determining the value of
capital of corporations in single states,
quoting the supreme court of the United
States that at was lawful to include
not merely the tangible value of the prop
erty but that proportion of the in
tangible property which the value of the
tangible property in one state bore to tho
aggregate of the tangible property in
all the states." in which the corporation
did business.
Dealing with the citizenship and stand
ing of corporations, Mr.. WickersAam quot
ed decisions that they were not citizens
tional requirement that citizens of each
state should be entitled to all the privi-
leees and immunities of citizens in the
states that the power Of state to
prevent foreign corporation from con-
timing to do business is but the correla-
tive of its authority to prevent such
corporation from coming into the state;
that the state In passing on these ques-
tions might take cognizance of acts done
elsewhere.
Power Of States.
"rbe unlimited extent of the power of
the states recognized by the supreme
court said Mr.. Wickersham, ''is strik-
inolv illustrated by the decision in the
case of the Security Mutual Life Insur-
auce company VS.. Prewitt where the
constitutionality of statute OF Ken
tucky was upheld which enacted that be-
fore authority is granted to any foreign
insurance company to do business In the
state 1t must file with the commissioner
a resolution of its directors consenting
hat service of process upon any agent OF
the company within the state or upon
the commissioner Of insurance in any ac-
tion brought or pending in the state shall
be valid service upon the company; but
n the company should without the con-
sent Of the other party to any suit
brought by or against 1t In any court OF
tha state, remove the same to any fed
ceedinR against any citizen of Kentucky
in any federal court It should be the
duty of the commissioner to fortnwith
revoke all authority to such company to
do business within the state The re-
suit of this decision is to enable a state
"a compel foreign corporation to re-
frain from resortng to the federal courts.
ar else to cease to do business within
the state.
Higher Licenses.
NJ wickersham argued that the i'm
ro.it,on Of higher license fees on for
eign than on domestic corporations had
been declared void He pointed out, how
ever. that in one Of the cases of the Ham
n,ond packing company against Arkansas
and others, alteration and repeal or char
ters by state legislatures and subsequent
reasona BILE police regulations restricted
this ruling somewhat.
His observation on this phase was;
..As result of these decisions It may
h safely asserted that the only imita-
1ions upon the powers Of the states to ex-