The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1910-02-07
FEDERAL CONTROL
OUTLINED IN BILL
Measure Will Be introduced Pro-
viding for National Incor-
poration.
P UBLIcITY PROMISED
1t Aims to Do Away With Pres
ent Evils of the Great
Corporations.
? UBLIclTY PROMISED


be permitted to purchase, acquire or
hold stock in any other corporation
according to bill to be introduced In
Congress to provide for the formation
of corporations to engage In inter-
state and international trade and COM
mercc. This applies 10 corporations
organized under the act or under the
laws of any State or foreign country.
Nor shall any of theso corporations
have banking powers.
This bill presents the combined
thought and work during several
months past OF Attorney General Wick
ersham, President Taft and the rest OF
his Cabinet advisers. AS a result of
frequent Cabinet meeting discussions
of the bill. the present draft differs
greatly from that originally presented
by Attorney General Wickersham ia
the Presidents consideration. The
President believes that the careful con-
sideration given to the bill by trained
lawyers OF h Cabinet has produced a
measure that will stand the test botl,
of congressional discussion and of SUI
preme Court decision.
Forfeiture of charter NAV result ~
any corporation organized under the
act shall enter into any contract or
combination. or engage In any con-
spiracy against Interstate or foreign
trade or commerce. or shall monopo-
lie. or attempt to monopolize, any part
thereof contrary to the provisions OF
| the Sherman act, or shall otherwise
violate the laws OF the United States.
The charters of all corporations arc
made subject to alteration. suspension
or repeal by Congress. The Attorneys
General is given power to bring for
feiture proceedings. and the court may
appoint receiver.
Reports Provided For.
Annual reports must be filed with
the Bureau of Corporations and tho
commissioner OF the bureau may call
for special reports. Ten days after the
declaration of any dividend a finan-
cial statement. showing the amount Of
net earnings. must be filed with the
Commissioner of Corporations.
AT least majority of the directors
of the corporation are required at all
times to be citizens of the United
States and bona fide residents therein,
Stock may be paid for in cash Or in
property, but every certificate OF stock
issued in payment for property must
contain statement that 1t is so is
sued, and before any stock Is so issued
Il LUZ slsNlSliit!li, SWolii 10 Dy n ma
iority of the board OF directors, must
be fled in the Bureau of Corporations,
setting forth a full description of the
property, the number OF shares to be
issued in payment therefor. and wheth.
err such shares are to have a par value
or not; the names and addresses of the
vendors of the property, the statement
OF their connection. If any. with the
company: the terms OF any agreement.
verbal or written, with respect to the
transfer of the property: full details as
to price: all amounts paid or to be
paid to each vendor, and IL the vendors
are directors of the corporation or
stockholders. statement of the price
paid or agreed to be paid by them for
the property to be sold to the corpo-
ration: and where the stock to be Is
sued for such payment has par
value. there must he filed in the Bureau
of Corporations an appraisement of the
value of the property by two disin-
terested appraisers, approved in writ
ing by the commissioner. who may also
appoint other appraisers.
No stock with par value may be
issued in payment of property pur-
chased or acquired by the corporation
to an amount in par value exceeding
the value approved by the commits
Provisions are made for the increase
or decrease of the capital stock of a.
corporation and for other amendments
to the articles of association by vote
of two-thirds of the stockholders OF
the corporation. On similar vote the
corporation may borrow money, issue
bonds and mortgage property or confer
upon the holder of any bond or obli-
cation the right to convert the prin-
cipal after five years from date of
the bonds into stock Of the corpora
ton Of designated class.
Must Have Approval.
The approval of the Commissioner of
Corporations must be secured before
the amount necessary to provide for
such conversion. and this right shall
not be given unless the bonds are
issued or sold at par or upwards. or
If for less than par, then for not loss
than their reasonable market value
as ascertained by the commissioner
Whenever a corporation shall fail
to pay any written obligation at ma
turity, or If any execution against It's
property shall be returned unsatisfled.
the Commissioner of Corporations shall
appoint a special agent to examine
into It's condition. If this agent re-
ports tnaI the COrpOTdtlOnS CoHultlpu
is SO unsound as to make Its contin-
uance in business contrary to public
welfare, the commissioner may appoint
receiver with the usual powers of
chancery receivers. Within thirty
days the corporation may apply to the
nearest United States Court to enjoin
proceedings and the court may dis
charge the receiver and enjoin the
corporations interests from further
proceedings.
The real and personal property of
are to be subject to state.
and municipal tax. Incorpora-
ton fees are to be paid amounting to
one-tenth OF one per cent. OF the total
capital up to s10,oo0.oo0: one-twentieth
of one per cent. from $10,000,000 to |
$40 100000, and $3.50 on every million
dollars of capital in excess of s2o.-
100000,
Warrant Issued for Student.
rSpeclalto The Times Disnatch.l
IWnchburE Va. February GA war-
rant was issued here last night for
the arrest of Paul Robertson. q Vir-
Fs,,IJn ,ttt n