The Columbian. [volume] (Bloomsburg, Pa.) 1866-1910, 1910-02-10
TAF7'S BILL FOR
INCORPORATION
No Company to Hold Stock
of Any Other
Concern
BANKING POWERS FORBIDDEN
Watering ohihitod-unlawful Com
hlnatIon or Monopoly VIII De Pun
lehed by Forfeiture Of Franchise at
Discretion Of Congress.


Washington. y. c., Feb. 10.-The
draft of the Federal lnco poration act
as prepared by Attorney-General
Wickersham and approved by Presi-
dent Taft, provides as follows:
Any five or more persons, citizen1
of the United States, may, on COM
pliance with the act, form corpora
tion to engage in Interstate or for
elgn trade and commerce. Articles of
association must be made, setting
forth many details.
The amount of the capital, which
shall not be less than 100000, must
be stated, with the number of shares
into which 1t is divided which may be
either with or without par value;
the classes, If any, into which the
stock Is to be divided; the number of
directors, no term to be longer than
five years; and certain other formal
requisites.
The certificate must be presented to
the Commissioner of Corporations for
inspection and approval and unless
the name conflicts with that of some
other duly registered corporation, he
shall issue certificate and the cor.
poration is duly formed
No corporation Is permitted to pur-
chase, acquire or hold stock in any
other corporation.
At least majority of the directors
are required at all times to be citizens
of the United States, and bona fide
residents therein. The articles may
provide that members of the board,
others than those onstituting the
executive committee, shall not be liza
bic in any respect except for the ex.
ercise of good faith and due diligence
in respect to matters brought before
the meetings of the board.
Stock may be paid for in cash or in
property, but every certificate of stock
issued in payment for property must
contain statement that it is so is
sued.
Full details as to price must be CIV
en-, and all amounts paid or intended
to be paid to each vendor. and II the
vendors are directors of the corpora.
ton, or stockholders, a statement of
the price paid or agreed to be paid
by them for the property to be sold
to the corporation.
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
sioner after appraisement.
Power is given to borrow money, is
sue bonds and mortage property on
the vote of the holders of two-thirds
of the stock. No property or other
thing than money shall be taken in
payment to the corporation of the
price of such bonds, except at a fair
valuation, as fixed by the Commits
sioner.
Whenever a corporation shall have
failed to pay any written obligation
at maturity, or If an execution against
its property shall have been returned
unsatisfied, the Commissioner may ap.
point receiver, with the usual pow
ers of chancery receivers.
The charters of corporations are
made subject to alteration, suspension
and repeal at the discretion of the
Congress.
In case any corporation shall enter
into any contract or combination or
engage in any conspiracy against in
tcrstate or foreign trade or commerce,
or shall monopolize 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, its charter shall be
forfeited.
The real and personal property of
corporations is to be subject to taxa
ton for State, county and municipal
purposes where situated. but no taxa
tion shall be imposed by the State on
the franchise or privileges granted by
the act.
Incorporation fees are to be paid
amounting to one-tenth of one per
cent. from sl0,000,000 to $4,000 900,
and $3.50 on every million dollars of
capital in excess Of $20,000,000.