Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1910-02-07
CORPORATION BILL
IS PRESENTED TO
BOTH HOUSES
No Objection Made in Assembly,
but Senator Newlands Oppos=
ing Second Reading.

WASHINGTON, Feb. THE admin
%istration bill providing for Federal in
corporation of corporations engaged in
interstate. commerce was presented in
both branches of Congress today. Thc
in~troductions were made by Senator
Clark. of Wyoming, and Representative
Parker, of New Jersey, chairmen, re-
spectively. of the Senate n House
committees on judiciary.
In the House reference of the bill to
the judiciary committee was made
without objection. but in the Senate
ing of the bill, and gave notice that on
tomorrow he would ask to have it re-
ferred to the committee on interstate
commerce. Mr.. Clark stated that the
measure involved legal points which
only the judiciary committee could deal
with properly.
Under the bin no corporation in the
United States will be permitted to pur-
chase. acquire or hold stock in any
other corporation. This applies to cor
porations organized under the act or
olfQCi tiiC idN0 u 1AS 9NoNS VI -
country. Nor shall any ohthese corpo-
rations have banking powers
This bill represents the combined
work and thought during several
months OF Attorney-General Wick
ersham, President Taft and the rest OF
his Cabinet advisers, and the present
draft differs greatly from that orig
inally presented by Acknowledgement
- AI- n---.l -
Grafton. The President believes that it
will stand the test both OF Congress
sional discussion and of Supreme Court
decision.
Forfeiture of charter may result il
any corporation organized under the
act shall enter into any contract or
combination OF engage in any c~onspir-
acy against Interstate or foreign trade
or commerce or shall monopolize or at
tempt to monopolize any part thereof,
contrary to the provisions of the Sher-
man act, or shall otherwise violate the
laws of the United States. The char
tiers Of all corporations are made sub
ject to alteration, suspension or ,repea;
by Congress. The encouragement is
given power to bring forfeiture pro-
ceedings and the court may appoint a
receiver.
Annual reports must be filed with the
bureau of corporations and the COM
missioner of the bureau may call for
special reports. Ten days after the
declaration of any dividend a financial
statement showing the amount of net
must be filed with the commits
sioner OF corporations. At least a ma
Jority of the directors of the corpora
ton are required at all times to be
citizens of the United States and bona
d residents therein.
stock may be paid for in cash or in
property, but every certificate of stock
issued in payment for property must
contain a statement that it is 'sotissued
and before any stock is SO issued q
ruiz statemen sworn to by a ma
Jority OF the board of directors, must
be filed in the bureau of corporations,
setting forth q full description of the
property, the numbe of shares to be
issued in payment therefor and wheth-
er such shares are to have a par value
OF not; the names n addresses of the
VENDORS OF the property, the state
ment OF their connection, if any, with
the company; the terms of any agree
inent, 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 if the
vendors are directors of the corpora
ton or stockholders . statement of the
price paid or agreed to be paid by
them FOR the property to be sold to the
corporation; and where the stock to be
issued for such payment has a par
value there must be filed in the bureau
of corporations an appraisement of the
value of the property by two disinter-
ested appraisers, approved in writing
by the commissioner who NAV also
appoint other appraisers,