Bridgeton pioneer., 1910-02-10
TAFT CHARTER ;
BILL is READY
Measure Drafted by Attorney
General Completed.
GOES TO CONGRESS- TODAY
Should the Bill Become Law 1t viii
Correct Many Present Day Evils In
Organizing Huge Corporations.


Organizing Huge Corporations.
Washington, Feb. 7.-Congress will
get today the most radical bill it has
received in the last fifty years. The
Taft federal incorporation bill, which
the administration believes will pro-
vide a safe method for the national
recognition of large combinations and
will, at the same time, give control of
such combinations to the govern
ment, will be presented to congress
by Senator Clark, of Wyoming, and
Representative Parker, of New Jersey.
chairmen respectively of the senate
and house committees on judiciary.
The final draft, an outline of which
follows, differs materially from the
earlier drafts, and represents several
months of study by the president and
his cabinet.
No corporation formed under the
terms of the proposed act will be per-
mitted to purchase, acquire or hold
stock in any other corporation; nor
could any corporation organized un-
der the act, or under the laws of any
state or foreign country for the pur-
pose of, or engaged in, any like busi-
ness, acql &c or hold the stock of
corporation formed under this act;
and no such corporation would be per-
mitted to have banking powers.
Forfeiture of Charter.
Forfeiture of charter may result If
any corporation organized under the
act shall enter into any contract OF
combination or engage in any con
spiracy against interstate or foreign
trade or commerce or shall rcnopolize
or attempt to, monopolize any part
thereof contrary to the provisions of
the Sherman act or shall otherwise
violate the laws of the United States
The charters of all corporations are
made subject to alteration, suspension
or repeal by congress. The attorney
general is given power to bring for
feiture proceedings and the court may
appoint a receiver.
Annual reports must be filed with
the bureau of corporations, and the
commissioner of the bureau may call
declaration OF any dividend a financial
statement showing the amount of it's
net earnings must be filed with the
commissioner of corporations.
At least a majority of the directors
of the corporation are required at all
times to be citizens of the United
States and bona fide residents therein.
Payment For Stock.
Stock may be paid for in cash or in
property but every certificate of stock
issued in payment for property must
contain a statement that it is so is
sued, and before any stock is so issued
full statement, sworn to by a ma
jority of the board of directors, must
be filed in the bureau of corporations,
setting forth a full description of the
property, the number of shares to be
issued in payment therefor and wheth-
er such shares are to have a par
value or not; the names and addresses
of the vendors of the property, the
statement of their connections, If any,
with the company; the terms of any
agreement. verbal or written, with re-
spect to the transfer of the property;
full details as to price; all amounts
paid or to be paid to each vendor, and
If the vendors are directors of the cor
poration or stockholders a statement
of the price paid or agreed to be paid
by them for the property to be SOLD to
the corporation; and where the stock
to be issued for such payment has a
par value there must be filed in the
bureau of corporations an appraise-
nent of the value of the property by
two disinterested appraisers, approved
in writing by the commissioner, who
may also appoint other appraisers.
No stock with par value may be
issued in payment of property pur-
chased or acquired by the corporation
to an amount in par value exceeding
the value approved by the commission
er after such appraisement.
Provision For Capital.
Provisions are made for the increase
or decrease of the capital stock of
corporation and for other amendments
to the articles of association by vote
of two-thirds of the stockholders of
the corporation. On similar vote the
corporation may borrow money, issue
bonds and mortgage property or con-
fer upon the holder of any bond or
obligation the right to convert the
principal after five years from date
of the bonds into stock of the corpora
tion of a designated class.
The real and personal property of
corporations is to be subject to state,
county and municipal tax. Incorpora
tion fees are to be paid amounting to
one-tenth of l per cent of the total
capital up to $10,O0O,O00; one-twentiet'
of / per ce from $10,000.00U to $40.
100000. and $3.50 on ever-- million dol
lars of car' - in exces - 900, 900