Omaha daily bee., 1910-01-19
PLEA FOR TAFT MEASURE
Illinois Commissioner FavOrs Law for
National Incorporation.
SETTLE NATIONWIDE PROBLEMS
Inefficiency OF Present state Control
out by President of Pub-
lie Accountants Association
Before civic Federation.

WASHINGTON, ID. c., ian IA strong
plea for harmonious incorporation legisla-
ton was made today by John G. Rtchberg'
president Of the Illinois Commission on
Uniform State Laws, and also chairman OF
the committed on uniform incorporation
act. in an address before the National Civic
federation conference. He held that the
divergent laws In the various states were
no longer mere obstacles to commercial
and social development, but actually mem
aced both the business and moral growth
of the nation. Mr.. Rlchberg heartily
agreed with those who believed In the
pov Ell OF congress to authorize the forma-
ton OF corporations and regulate corpora
lions engaged in interstate The
inability of the states to deal with prob
lens of national extent had been clearly
shown and the onward march Of m
and discovery must not be halted by state
lines. The speaker believed that the day
would soon come when a national incorpor-
alton law would effectively rid the country
of the incongruous and chaotic provisions
in the Incorporation laws Of the different
states. But this would not do away with
state corporations or the power of the
state to create them. Tho object should be
to displace diversity with uniformity. A
corporation organized under the laws of a
state, yet conforming to national require
ments for engaging in interstate COM
merce, could readily be given the privileges
and held subject to the obligations Of
natural persons.
Necessity for Big Organizations.
The time had long passed, said Mr.. Rich
berg, when problems nation wide could
be efficiently handled by local organiza-
NNnN. ,~1 NkN- rl-g. - H.
the necessity for national consideration of
national problems. Undoubtedly the cor
porate entity was a ready cloak for wrong
doing to be used to conceal many baneful
activities. But development of the great
resources of the United States, the neces-
stiles OF conomic production, the utlliza-
ton of costly and elaborate methods of
production-all the great modern CONNER
cial tendencies demanded the services OF
the corporate form whereby the interests
of many partners in an enterprise could
be responslbly administered A national in
corporation law would operate to increase
not only the business unity, but the social
unity of the nation. f.
Said Mr.. Rlchberg in conclusion: Where
our problems are national in necessary
comprehension, where state independence
means national chaos, either the fedora
government as representing the united
people must act for the people or the
states must join hands, sacrifice sectional
desires, Individual methods of business
even, perhaps, climatic habits of thought
and adopt uniform legislation as thu
medium for expressing their diverse in.
terests even as a common language carrie,
the expression Of their divergent thoughts
State Control Inefficient.
Speaking of the control of corporations
in an address in this city today before tn,
National Civic conference on uniform legis
Ilation, j. e. Sterrett, president of the Amer
lean Association OF Public Accountants
reviewed the various state laws now OIL
the statute books and then singled GU
Massachusetts as the state where othel
Estates could find the beginning Of a proper
form OF corporate control.
Even here, though, the law is i~ncomplet,
in its requirements in some respects" MI
Sterrett said, and, generally speaking
there exists a most unfortunate lack o
uniformity in our corporation laws and al
of these laws make little or no provision
} for effective control"
In conclusion, Mr.. Sterrett said the pres
| emit chaotic condition Of American cor
{ poration laws is a serious %hindrance t
business progress. and the lax provision
5 In the various state laws nave been a
r least a contributing cause Of the loss O
= untold fortunes. The remedy should hav
1 uniform application and, to be successful
4 must be founded upon sound business prac
4 tlce and experience"