The Sentinel=record., 1910-01-14
OF THE PRESIDENTS MESSAGE ON FEDERAL CORPORATIONS
 TO CONGRESS.
Question Will Come Up Whether the States Are Allowed to Levy Tax on the Corporations in
 Their Midst.

Washington, Jan. 13.--Now that the main feature of the bill to be recom- mended by the president providing for federal incorporation act have be- come known, there is disposition on thep art of many members of con- gress to insist not only on full dis cussion of the measure, but upon amendments which will in their na- ture be necessary to make it effect i've in dealing with great corporations. Indeed it is believed that nothing short of tremendous effort will enact ii into law.
 The need of forfeiture clause by which a corporation consistently vio- iating the law can have it's charter revoked, is declared to be absolutely necessary if corporations are to be effectively controlled.
 Many congressional lawyers advo- cate compulsory instead of federal in- corporation. They cite as sound the general principle that if congress has constitutional power to grant volun- tary charges to corporations doing an interstate business it has power to require corporations doing such busi- ness to take a federal charter, just as 1t has power to require them to con- ply to its laws regulating interstate commerce.
 Among the questions that will come up for consideration and likely will provoke considerabled iscussion, is that relating to the effect of federal incorporation, upon the right of states to control and to tax the property of such interests.
 This is phase of the proposed law, it is said, that 'has received compara- lively little attention. In twenty-one sectfens Attorney General Wickersham has embodied the ideas of President Taft anr his cabinet regarding a sys- tenn of federal incorporation Of busi- ness enterprises. The bill is expect cd to be laid before congress next week.
 The principal feature of the bill will be the creation of a form of hold Ing company under the national char ter which may control business of subordinate companies organized un- der state laws. Proper limitations will be provided against the embarka- tion of any such corporations in the business of dfscounting bills, receiv. ing deposits and issuing notes.
 There will be no compulsory pro- vision in the bill. it is said. The cor poratiCns will not be required to take out a national charter if they see fit to do business under the state laws instead
 All charters will be subject to the approval of the commissioner of cor porations; the minimum amount of capital stock will be limited to $100,- 000 not less than s10,000 of which shall be available commence busl- ness Tn case a national corporation shall desire to acquire the property of state corporations, it will be re- quired that it shall hold not less than majority of the capital stock of such corporations.
 Any corporation that has more than one kind of stock will be authorized to confer the right to choose the di- rectors of any class to the exclusion Of others. Corporations will be au- thorized to create two or more kinds of stocks, the preferences and desig. nations of which are to be clearly stater in the articles of association but at no time shall the preferred stock exceed two-thirds of the capital stock paid for in cash or property.
 No preferred stock by the terms can be Issued except as specified in the original articles of association i save with the consent Of the holders of two-thirds of each class Of out standing stocks. Stock books are to be open to inspection of all stock l Stewart
 holders, judgment creditors and law officers.
 An important provision will be one requiring every subscriber to pay to the treasurer of corporation 10 per cent of the amount of his subscrip. tion in cash and directors will be au. Shori2ed to assess stock not exceed. Ing the whole par value therof. or if