The Montgomery advertiser., 1909-07-08
HAS REMEDY
 FOR TRUSTS Would Limit Foreign
 Holdings. LEGAL EXPERT SPEAKS Attorney General Talks to Kentucky
 Lawyers. Deals With Relations of Federal And state Courts Regarding Corpora- tions-- Advocates Radical
 Action By Congress.

Paducah. Ky, July 7-Stato 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 Mir wickersham gave complete treatment of the trust question as 1t appears to the present national administration, the address was not able, chiefly for the recommendation made by the Attorney General that Congress should enact e law providing l for nationally created corporations to | carry on interstate commerce. Previously. by exhaustive reference to important state and federal court decisions, MT. Wickersham had sketch ed the ways by which states may regu- l late business of foreign corporations within their boundaries and had advo- cated that the license of any foreign corporation be vacated If 50 per cent of | it's stock was owned by any company domestic or foreign or if that amount became later so owned.
 Taking up the definition of inter state commerce, Mir. wiokersham said 1t would be rash at this time to sug- l gest a definition of what 1t is" He quoted Justice Harlan, of the United States Supreme Court. that it is mot technical legal conception. but a practical one.'
 This brought the Attorney General to his main declaration that Congress should organize corporations to carry on interstate business.
 Urges Centralixatton.
 "Of course. many will object to the centralizing tendency of a national law. 6Sthorizing the formation of cor- poratDns to carry on interstate busi- ness." concluded MT. Wickersham, but such law seems to me to be the in- evitable result of economic oonditions"
 MT. Wickersham said this was a logical follow of the recently passed tariff tax on corporations.
 Though in national sense the ad- dress was chiefly notable for the recommendations of national incorpora-
 ton, It's effort to show the separate
 staes how they may control the busi- ness of foreign corporations in their limits. was an important feature.
 The Attorney General began with what he declared to be. quoting an | argument once made by Daniel Web ster, "the fallacy of the proposition that corporation can have no exist ence beyond the limits where 1t is or- l ganized."
 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 fit was lawful to include not merely the tan- gible value of the property. but that proportion of the intangible property which the value of the tangible proper | ty in one state bore to the aggregate 1 of the tangible property in all the states" ip which the corporation did. | business.
 Dealing with the citizenship and standing of corporations. MT. Wicker sham quoted decisions that they were not citizens in the meaning of the federal constitutional requirement. that | citizens of each state should be en- titled to all the privileges and im- munities of citizens in the states:;" that the power of a state to prevent a foreign corporation from continuing to do business is but the correlative of its authorities to prevent such corpora ton from coming into the state; that the state In passing on these ques- uons might take cognizance of acts done elsewhere
 Recognizes States Rights.
 The unlimited extent of the power of l the States recognized by the Supreme Court" said MT. Wickersham, "is strikingly illustrated by the decision in the case of the Security Mutual h. | | where the constitutionalityo of a statute of Kentucky was upheld The result 1 of this decision is to enable 6 state to compel foreign corporation to re- frain from resorting to the Federal 1 Court in controversies by or against | 1t or else to cease to do business with in that State.
 | Dealing with the statute of citizen ship of corporations, MT. Wickersham | haf could be deprived of life. liberty or property only by due process of law. | Ee argued that the imposition of high CT license fees on foreign than on do- mestic corporations had been declared l void.
 He pointed out. however, that in one of the cases of the Hammond Packing Company against Arkansas and others. alteration and repeal of charters by State Legislatures and subsequent req sonable police regulations restricted this ruling somewhat.
 His observation on this phase was: AS a result of these decisions. 1t may be safely asserted that the only limitation upon the powers of the States to exclude foreign corporations | entirely from doing business within their territory or to prescribe such conditions as they may deem proper to the carrying on by them of such | business, are. first:
 Must Invoke Law. That the regulations so prescribed should not deprive the foreign corpora tion of property without due process of law or deny to them the equal proteo- ton of the laws; and. secondly, that such regulation shall not amount to | an interference with interstate com | merce or other business of Federal nature"
 The Attorney General then dealt with specific statute requirements of various States in matters of taxation of general capital increase of corpora tions; the requirement by foreign cor porations of stock of domestic public utility corporations; the possession of realty. etc.
 Much Legislation has been enacted in various States" he said. flor the purpose of preventing trusts. pools and combinations in restraint of trade and monopolies. Such was the law under consideration in Hammond Packing Company versus Arkansas. PIP U. S. Many of these acts are long, involv- ad and ahoundinR in adjectiVes Some