The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1910-02-08
FEDERAL INCORPORATION.

The dispatches this morning give n
fair idea of the terms and provisions
of the now National incorporation bill,
which was introduced yesterday in
Congress. 1t is said that great labor
and caro- have been bestowed upon this
bill, in order that ii should meet every
objection likely to be brought against
IT in Congress or elsewhere, to make it
| conform strictly to constitutional pro-
visions, and TO make it practically
workable.
The details Of such q bill, of course
arc very important, as the measure will
have to run the gauntlet of the Federal
courts. On the general principle in
volved, however, there can be no doubt
that the proposition for new incorpora-
tion will be acceptable to most of the
transportation and interstate commerce
concerns. For, by Incorporation, these
interstate concerns will be released
from the espionage and exactions of
forty.six separate State legislatures.
They will be amcnable to the ono cen.
trail authority and will know precisely
what they will have TO do, what their
rights are, and their workable privi.
leges.
With bill such as this in effect,
there could be no such contention as
came up in Kansas and has Just been
settled in the Supreme Court. The
Kansas laws required that tho insur
ance companies doing business in that
State should account to the State of
Kansas by way of license and taxes,
not only for the business done within
that State, but for the total amount of
business done by the company, no mat
ter where done. Obviously such a law
as that would have to be pronounced
unconstitutional by the Supreme Court,
as an undue exaction upon the rights
of the company under its charter and
its privileges thereunder-an attempt
to collect revenue from property and |
business held and done outside of the |
State, And vet, the Chief Justice of |
the Supreme Court, with two of his as
soclates, held that the Kansas law |
was valid. They must have so held on
the ground that the State of Kansas
was not bound to recognize the laws of
other States. nor enforce the form of |
charters of those companies, but that
Kansas had the right to assert an or
iginal jurisdiction over those concerns
without regard TO the charters or priv
ileges granted by other States, and TO
tax the business done in them, This,
in a way, is a reasonable view, too.
But yet, by precedence and practice
it is a view that has been buried and
is probably no longer tenable, although
as an original composition 1T would be
quite logical to assert it, 1t is merely
asserting the right of each State to
require original chartering for itself.
The new incorporation law, if passed
oy Congress, will, we believe, he accept
4 BILE to interstate commerce concerns.
These interstate corporations are vcXed
with the many eXactions from the
many new propositions which the in
yenuity of State officials brings for
ward for the placing of new restric
ions and taxes on those companies,
hat such concerns will fly to this Fed
,ral incorporation proposition as a
efuge and relief. IT is hardly likely
hat great lawyer like President Taft,
md another like Attorney General
would devote so much
Ittention and time as they have done to
he perfection of this measure, il there
we're likely TO be any constitutional ;
for decidinp II invalid We he. |
ieve fully in the principle involved in
his new proposition; we have proposed
often, and we have full faith that
he President and Attorney General
re able TO perfect measure Of this
lind, and that in the drafting of this
ill they have exercised their powers
o the successful framing of valid en- :
ctment.