The Washington herald., 1910-01-13

An outline of the administration
bill to provide a system of Federal
incorporation, as recommended IN
President Taft's special message
which was sent to Congress last
Friday, has been made public. The
bill was drawn by Attorney General
Wickersham after repeated con-
sultation with Secretary Nagel and
other legal advisers of the Presi-
dent, including Senator Root.
Mr.. Wickersham and Secretary
Nagel have been at work on it
since early last summer, and the de
tails have been thrashed out in fire.
quent and extended conferences
with President Taft. It reached a
stage last November where it was
put in print and since then has been
under the continued scrutiny of the
President and the lawyers of his
Cabinet.
READY FOR CONGRESS.
It was ready for Introduction In Congress
when the President sent his message
which he closed with the words:
1T will be at the disposition Of the ap-
propriate committee OF Congress- -
Since then it has been seEt to the Ju-
dietary Committee for its examination.
but no one has as yet introduced 1t in
either Senate or House.
It will be seen that while the bill fol-
lows closely the recommendation OF the
Presidents message. it will. if enacted
into law, work a tremendous readjust-
ment in the manner Of doing business in
this country. For 1t seems, at least on
first reading. TO authorize the creation Of
a series of corporations which will be sub
ject only TO the action of Congress in
certain vital respects.
Court Provision.
For instance. it Is expressly provided
that no court shall have anything TO say
as 10 the forfeiture Of a charter which
can be annulled or changed only by Con-
gress.
The bill distinctly iegalizes a form Of
holding company and authorizes such a
corporation to purchase and hold State
corporations engaged in the manufacture
of the articles which the national cor
poration uses in interstate commerce..
Thus it is apparently within the power
Of national corporation chartered under
this bill to buy and operate every sugar
refinery, OF every steel plant. or every
bakery. or butchers shop in the country
The commissioner of corporations is made
the supreme judge as to the issuance of
a charter. which he is obliged to issue
if he finds that the association APPLYING
for II has complied with the provisions
Of the law, which are comparatively SIM
pie
II he finds that the articles Of the asso-
citation are at variance with this law, or
any other law. he may" decline 10 Issue
his certificate.
stock Issued for Cash.
minimum is established for the capi-
tai of a national corporation. but no max
imum Stock is to be issued for cash ex-
cept that property may be purchased by
stock at an appraisal approved by the
commissioner Of corporations, There are
full regulations governing the operations
OF the national corporations and prov1-
sion for reports 10 the commissioner of
corporations, this covering the desired
governmental publicity.
II is expected by the administration that
the bill will be introduced IN both Houses
before very long, but It Is uncertain as
yet whether the President viii demand its
enactment at this session or permit II n
go over to the short session next winter.
II his commerce law bill goes well he
may conclude that Congress can also
handle this one at this session.
ExtOrtion Is Imminent.
The President has let it be known
in the last day or two, to members
Of Congress, that he expects, and will
demand a ready acceptance Of the ad-
minisTation measures he is proposing.
and it is likely TO appear before very long
that he has constituted himself the Judge
OF party regularity and will render de-
cision in accordance with the manner in
which his bills are treated in the Senate
and House
There are evidences that he is very
much wrought UP over the way members
of his party have been acting toward his
recommendations in the last few weeks,
and it would not be surprising If this
Federal Incorporation bill should be the
cause Of an explosion that will make the
existing rumpus in the Republican party
look like toy firecracker beside a VOL
cano.