Vernon County censor. [volume] (Viroqua, Wis.) 1865-1955, 1909-07-14
FOR A NATIONAL
INCORPORATION
WickERsHAM WOULD CREATE
BODY FOR INTERSTATE
COMMERCE.
LOGICAL SEQUENCE OF ENACT.
MENT OF PROPOSED COR.
PoRATiON TAX.
POINTS OUT HOW HOLDING COM
PANlES MAY BE PUT
TO ROUT.

Eauucah, Ky July State control
Of corporations doing interstate bust
ness YVES discussed in am address be
fore the state bar association by At
torney General Wickersham. in this
/ city last night OF paramount i'm
portanca because Mir. Wichersham
gave a complete treatment OF the
trust question as ii appears TO the
present national admins ration. the
| address was made notable chiefly by
the recommendation that congress
should enact law providing for ma
tionally created interpretations to
carry on IN erstate commerce.
Many win object to the centraliz-
ing tendency of a national law au-
thorizing the formation of corporations
to carry on interstate business" said
Mr.. Wickersham. but such law
seems to me to be The inevitable re-
suit of economic conditions"
Mr. Wickersham said that this was
a logical result of the recently passed
tariff tax on corporations.
Though in a national sense the adj
dress was chiefly notable for the rec
ommenda ion for national incorpora
ton, its effort to show the separate
states how they may control the bust,
ness of foreign corporations in their
limits was an important feature.
Dealing vii the citizenship and
standing of corporations, Mr.. WicseI
sham quoted decisions that they were
| not citizens in the meaning Of federal
| constitutional requirements that "citi
Zens of each state should be en-
titled to all the privileges and immuni-
ties of citizenship of the states; that
| the power of the state to prevent fer
| eign corporations from continuing TO
do business is but correlative of its
authority TO prevent such corporation
| from coming into the state; that the
| state in passing on these questions
might take cognizance of acts done
ELSEWHERE. He cited authorities showing
the extent OF the power of the states
recognized by the supr court and
said.
"As a result of these decisions, it
may be safely asserted that the only
limitations upon the powers OF states
to exclude foreign corporations en-
tirely from doing business within their
territory. or to prescribe such condi-
| lions as they may deem proper to the
carrying on b. them of such business,
are:
First, that the regulations so pre-
scribed should not deprive the foreign
corporation of property without due
! process of law or deny to them equal
protection of the laws: secondly, that
such regulation shall not amount to
interference with interstate commerce
or with other business of federal nat
| ure.''
The attorney general then dealt
with the specific statute requirements
OF the various states in matters of tax.
alton of the general capital increase
of corporations requirement by for
eign corporations of stock of domestic
public utility corporations; possession
of rea ty, etc, and then. considering
legislation for the purpose of prevent
ing trusts, pools and combinations in
restraint of trade and monopolies, he
said:
1T has seemed to me that an effect.
i've method of legslating on this sub.
ject would be to enact that no foreign
corporation should be licensed to do
business within 2 state If 50 peg
centum of its capital stock or up
yards, was owned or held by any 9th
er corporation, domestic or foreign
and that if, at any time after obtain
ing such licesne. more than so per.
centum of the capital stock of such
corporation should be acquired by an
other corporation. the license should
be, ipso facto vacated.
"The device OF the holding corpor
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