The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1910-02-07
NEW FEDERAL Law
FOR CORPORATIONS
Much-Talked-of Bill Following
Presidents Views Ready
fOP Introduction.
PROVISION Is INCLUDED
FOR CHARTER FORFEITURE
Regulations to Be Administered
by Commissioner With
Great Powers.

WASHINGTON. Feb. 6.-The long ex-
pected federal incorporation bill 10 en-
body the recommendations made In his
special message by President Taft viii
bc introduced in congress tomorrow.
probably by Senator Clark Of Wyoming
aud Representative Parker of New Jcr-
sey, chairman, respectively, OF the SEM
ate and house committees on judiciary.
The final draft, an outline of which fol-
lows. differs materially from the carly
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 permitted 20
purchase, acquire or mold stock In any
other corporation; nor could any corpora
ton organized under the act or the laws
OF any state or foreign country for the
purpose OF any Hike business. acquire
or mold tho stock OF corporation formed
under this act: and no suca corporation
would be permitted TO have banking
powers.
Forfeiture OF charter may result If any
corporation organized under the act en-
ters into any contract or combination
or engages in any conspiracy against m
tcrstate or foreign trade OF commerce or
shall monopolizc or attempt TO monopollZe
any part thereof, contrary 10 the Shcr-
man act, or shall otherwise violate the
laws OF the United States. The charters
Of al corporations are made subject to
alteration, suspension or repeal by CON
Sress.
Must File Reports.
Annual reports must be filed with the
bureau of corporations, and the coinnis-
sloner OF the bureau may call for spe-
cial reports. Ten days after the declara-
ton OF any dividend financial state
ment showing the amount of net earn
ings must be filed with the commissioner
OF corporations
At least a majority OF the directors G %
times TO be citizens OF the United States
and bona fide residents therein.
Stock may be paid for In cash or IN
issued In payment for property must con
tain a statement that II is so issued aud
before any stock is so issued full state
mcnt must be filed setting forth iull
description of the property. the number
Of shares to be Issued In payment there
for and whether such shares are 10 nave
a par value or not. tho names and ad-
dresses OF the vendors OF the property.
the statement OF their connection with
the company, the terms OF any agreement
with respect to the transfer OF the prop
paid or 10 he paid 10 each vendor and.
II the vendors are directors OF the cor
poration or stockholders, statement
OF the price paid or agreed 10 be paid
by them for the property TO be sold TO
the corporation.
Where the stock TO be issued for such !
pa ayment has par value, there must be
filed In the bureau OF corporations an
appraisemcnt of the value OF the prop |
erty by two diSintcrested appraisers, ap- |
proved in writing by the commissioner
who may also appoint other appraisers. !
No stock with a par value may be is
sued in payment Of property acquired by l
value exceeding the value approved by |
the commissioner after such appraise-
mcnt.
Provisions are made for the increase or |
decrease OF the capital stock OF a cor !
and for other amendments 10 !
the articles Of association by vote OF
two thirds of the stockholders OF the COZ
pration. On similar vote the corpora
lion may borrow money. issue bonds aud
mortgage property.
The approval OF The commissioner OF
must be secured before the |
capital stock can be increased TO the
amount necessary TO provide Tor such
and this right shall not he
given until the bonds are issued or sold
at par or upwards, or II FOR less than par,
then for not less than their reasonable
market value as ascertaiRed by the COM
missioner
To Examine Condition,
Whenever d corporation shall fail TO
pay any written obligation at maturity or
{ anV execution against its property shall
)c returned unsat!shed, the commissioner
II corpora tions shall appoint a special
agent TO examine into It's condition. II
his agent reports the corporation con-
iitions are so unsound as 10 make it's
In business contrary TO pub
ic welfare the commissioner may ap-
,oint receiver,
Withiu thirty days the corporation may
lpply TO the nearest United States court
o cuioln proceedings and the court may
discharge tho receiver and cnjon the
interests from further pro-
codings.
The real and personal property of cor
,ordtious are 10 be subject TO state.
ouuty and municipal tax. Incorporation
COS arc to he paid amounting 10 one
nth OF one per cent OF the total capital
10 To $40 900, 900. ono twentieth OF ono | ,
,cr cent from $40. 000. 600 to $50. 600 000
nd $3.50 on every million dollars In eN-
css of so. Qnd 00U.
-nA A nIININ Id UT LII Ii |