The free lance. (Fredericksburg, Va.) 1885-1926, 1909-10-12
NEW LAW FOR
CORPORATIONS
Taft VIII Urge Act to Authorize
Federal Incorporation.
BILL IS BEING PREPARED

The Industrial Commission Says IL
Will Provide Regulation and Pub
Ilolty-At,orney General Thinks Cor
perations Would Benefit.
Washington. Oct Sit is now clear
ly indicated that one OF the most i'm
portant bins TO be considered at the
coming session of congress will be the
administration bill providing for fed
eral incorporation law. 1t will prob
ably be the most important legislation
attempted.
This bill is now being prepared by
Attorney General Wickersham. al
though he has not worked IT out In
detail as yet. He expects 10 have 1t
in shape to submit to President Taft
and his cabinet Immediately upon the
reconvening of that body IN November.
after the presidents return. The at
torney general has devoted the greater
part Of the summer to studying out
this problem and getting the proposed
legislation into shape
Ii is understood that this bill will
be based upon the recommendations
Of the Industrial commission OF 1900.
Of which former Representative Phil
lips. OF Pennsylvania. was chairman.
The question OF federal incorpora.
ton law was thoroughly gone into by
that commission. and the opinions of
such experts as the late r. w. Hun
cut. Of Cornell university. and F. J.
Stimson. lawyer of Boston, had great
weight in formulating its recommen-
dations. Their views are accepted az
embodying practical ideas which. 1t is
believed. will be adopted in the fran
ing OF the administration bill.
Taxation the Foundation.
In its recommendation, the indus
trial commission had this to say. after
discussing various remedies. evils and
injustices complained Of in the oper'
alton Of corporations doing interstate
business:
IF experience should prove that
these remedies are not sufficient prop
erly TO control the great corporations
and combinations, 1t may be wise for
the congress TO enact federal incor'
poration law. Should such law be en-.
acted II would then be possible to in
crease the franchise tax on state cor
porations engaged in interstate com.
merce so as to compel them to reor'
ganize under a federal law. When or
ganized under a federal law II would
be possible, as has been pointed out,
to apply to corporations any degree OF
publicity or restriction that might be
authorized"
That recommendation is the founda-
ton upon which the proposed legisla-
ton is to be built. The bill is expected
10 embrace President Taft's ideas re-
garding the supervision Of stock Is
sues by the federal government The
suggestion by the commission that
such a franchise tax can be placed
upon corporations doing Interstate
business as to compel them to take
out federal franchises will be incor'
porated in the bill so that all corpora
tions thus engaged will be glad to
come in under federal supervision.
The attorney general, in speaking
of the advisabllity of such a federal
incorporation law. said in his opinion
corporations would gladly avail them.
selves Of the chance to do business un'
der federal supervision. "They would
prefer one master to forty-six mas
ters." is the way he put 1t. There will
be provision in the bill for the pub
licity of corporate affairs so long de-
manded.