Daily Kennebec journal., 1910-02-15
misunderstood.
Proposed Federal Incor-
poration Act Explained
By Attorney General Wicker
sham in Memorandum,
Sets Right Erroneous Impressions
As TO Forfeiture Clause.

Washington. Feb. 14.-"ConSiderabl
misunderstanding seems TO exist with
respect to the forfeiture clauses in the
federal incorporation bill and it would
appear from some of the criticisms as
though these provisions were designed =
ly misrepresented for the purpose of
causing a prejudice against the meas
ure.'
In these words Attorney General
Wickersham introduced a memoran-
dunn made public today, touching the
various features of Section 36 of the
bill. II which are included forfeiture
provisions, to make clear what it's
trainers sought to accomplish and how,
in Important respects, the provisions
are substantially the same as those
contained in the constitutions and
laws OF many states. Reference is made
to the clause specifically given Con-
greSs power to alter, suspend and re-
peal a charter or dissolve a corpora
tion. Substantially, the some provision.
he says, is contained in the New York
general corporation law.
AS to that part making every cor
poration created under the act bound
by any amendm ont made to the law by
Congress. Mr.. Wickersham says that
substantially the same provision is
contained in the laws of every state,
and in the constitutions of many
states
In this connection attention is call
ed to the provisions in the New York
state constitution providing for the
formation of corporations under gen.
eral or special laws and the statement
is made that in the application of this
provision it was held by the New York
court of appeals that the repeal of the
charter of a corporation did not oper-
ate to forfeit it's property and that all
valid liens upon such property, made
previous to the repeal of the charter
remained intact.
Further on, Mr.. Wickersham says it
was not the intention of the adminis-
tration to provide a refuge for trusts,
nor, by its enactment, to reptal the
Sherman act. 1t was pointed out, he
says, by the President in his message
to Congress Jan. I, that the purpose of
the act was to provide a federal char
ter for an industrial combination 'tC
make and sell in interstate and foreign
commerce the products of useful man
ufacture, under such limitations as will
secure compliance with the anti
trust law
The President, Mr. Wickersham
points out. said that the bill was not to
be framed to permit of the wrongs
which it was the purpose Of the Sher-
man law to prevent. Mr.. Wickersham
concludes by saying the bill was care
fully drawn to carry out those sugges-
ticns. 1t provides for the formation Of
corporations to carry on the business
of interstate trade and commerce on a
large scale, but in case companies
formed under it's provisions monopolize
or attempt to monopOliZe the trade and
commerce of the country in any rar-
tic,1lar line or combine to restrain in
terstate commerce, the government, by
it's chief law officer, is specifically em-
powered to bring suit for the forfeiture
of the charter and if the court finds
that the company is violating the
sherman act, it may appoint receiver
of it's property either pending the suit
or by final decree.