The Vinita daily chieftain. [volume] (Vinita, Indian Territory [Okla.]) 1902-1913, 1910-01-14
incorporation ACT
INVOLVES STATES RIGHTS

| Washington, Jan 14.-Now that the
main features of the bin to be rec
commended by the president providing
for federal Incorporation act have
become known there is a disposition
on the part of many members. of con
gress to insist not only upon full
discussion of the measure, but upon
amendments which will. iii their
judgment, be necessary to make it
effective in dealing with great cor
porations. Indeed it is believed that
nothing short of tremendous admin
istration influence will enact it into
law.
The need of forfeiture clause by
which corporation persistentIy vio-
lating the law can have its charter re-
voked is declared to be absolutely
necessary If corporations are to be eff
fectively controlled.
Many congressional lawyers adyo-
cate compulsory instead of voluntary
federal Incorporation. They cite as
sound the general principle that If
congress has constitutional power to
grant voluntary charters to corpora
tions doing an interstate business, it
has power to require corporations do
ing such business to take federal in
corporation just as it has power to
require them to comply with its laws
regulating Interstate commerce.
Among the questions that will come
up for consideration is that relating
to the effect of federal incorporation
upon the right Of states to control
and to tax the property of such enter
prises.
Some members of congress will
wish to have the rights of the states
clearly defined in respect to such mat
ters as regulations for sanitation and
factory inspection. They will also
wish to reserve to the states their
right to tax such property after the
corporation has assumed its federal
character.
Some Of them will wish. If possible,
to separate the state from the inter
state business, so that the states may
still have power to control in respect
to business conducted by the corpor-
alton solely within the state
In twenty-one sections, Attorney
General Wickersham has embodied the
ideas of President Taft and his cabinet
regarding a system of federal incor-
poration of business enterprises The
bill is expected to be laid before con-
gress next week
The principal feature of the bill will
be the creation of form of holding
company under the national charter
which may control business Of subord-
mate companies organized under state
laws.
Proper limitations will be provided
against the embarkation of any such
corporations in the business of dis
counting bills, receiving deposits and
issuing notes. There will be no com
pulsory provision in the bill. it is said.
The corporations 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. In case national corpora
tion shall desire to acquire the prop
erty of state corporations 1t will be
required that 1t 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 direc-
tors of any class to the exclusion OF
others.