The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1910-02-07
Incorporation
BILL IS READY
WILL EE INTRODUCED IN BOTH
HOUSES OF CONGRESS
TODAY.
WAS LONG ANTICIPATED
Final Draft Represents Several Months
of Study by President and
Cabinet--Outine of
the Bill.

Washington, Feb. G.-Tho long an
ticipated federal incorporation bill, to
embody the recommendations made in
the special message by President Taft,
will be introduced in both houses Of
congress tomorrow. The final draft,
the outline of which follows. differs
materially from the earlier drafts, and
represents seevral months Of study by
the president and cabinet,
No corporation formed under the
terms of the proposed act viii be per.
mitted to purchase, acquire or hold
the stocF of any other corporation; or
could any corporation organize under
the act, or laws of any state or for
eign country for the purpose of, or
engaged in any like business acquire
or hold the stocF of corporation
formed under this act, and no such
corporation will be permitted to have
banking powers.
The forfeiture Of charter may re-
suit If any corporation organized un-
der the act shall enter any contract,
combination or conspiracy against in
terstatc or foreign trade. or monop-
Ollie or attempt to monOpolize any
part thereof contrary to the provisions
Of the Sherman act. or otherwise vic.
late the laws of the United States.
The charters of all corporations are
made subject to alteration, suspension
or repeal b. congress, and the attpr-
ney general is given power to bring
forfeiture proceedings and the court
may appoint Q receiver.
Annual reports may be filed with
the brreau of corporations and the
commissioner of the bureau may call
for special reports. Ten days after
the declaration of the dividend Altman
cial statement showing the amount OF
net earnings must be filed with the
commissioner of corporations.
At least a majority of the directors
are required at all times to be citizens
VI tlt IEllttl GNlultN anu bNiC IuI
residents therein
Stock may be paid for in cash or
property, but every certificate of stock
issued in payment for property must
state that it is so issued. and be ac-
companied with a sworn statement OF
majority of the directors, describing
the property, price and number of
shares to Re issued in payment there
fore, and whether the shares are to
have par value or not. The statement
must he filed with the bureau of cor.
porations. T..
Provisions are made for the increase
or decrease of capital stock for other
amendments to the articles of associa.
tion by vote of two-thirds Of the
stockholders of the corporation. On
similar vote the corporation may
borrow money, issue bonds, mortgage
property of confer upon the bGlier of
any bond or obligation the right to
convert the principal after five years
fro mthe date of the bonds into stock
of the corporation, of any designated
| class.
Whenever corporation shall pay
any written obligation at maturity, o,
il any execution against its property
be returned unsatisl?ed the commits
sioner of corporations will appoint a
special agent to examine its condi.
tion. If found msound the commits
sioner may appoint Il receiver. With
in thirty days the corporation may
apply to the nearest federal court to
enioing the proceedings and the court
may discharge the receiver and enioin
the corporations interest from fur
ther proceedings.
Real and personal property corpora
ticns are to be subject to the state
county, and municipal tax. The in.
corporation fees are to be paid
amounting to one-tenth of one per cent
of the total capital up to ten million
one-twentieth Of one per cent from
ten to twenty millions; and $3.50 on
every million capital in excess oil
twenty million.