Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1910-01-14
OF Presidents Incorpola-
ton BiNArsN owknown.
Holding Companies Will Be
Chartered by Government
But No Corporation Can Start With
out Sufficient Capital.

washington, Jan. 13-Now that the
main features OF the bill to be recon-
mended by the President providing for
a federal Incorporation act have be-
come known, there is disposition on
the part of many members OF Con-
gress to insist not only upon full
discussion Of tie measure, but upon
amendments which will, in their judg-
.mfnt Je necessary to make it effective
y in dealing With great corporations In
iced, it is believed that nothing short
of tremendous administration influence
vii! enact it into law.
The need of forfeiture clause, by
which a corporation perSistrntly vio-
latng law can nave its charter re-
voked. is declared To be absolutely
necessary if corporations are tn be
effectively controlled.
Many congressional lawyers advo-
cate compulsory instt al of voluntary
federal Incorporation. Tacy declare
tha: il Congress has constitutional
power to grant voluntary charters to
corporations doing an interstate bus
mess. it has lower to require Corpor-
atoms doirg such business to take u
federal incorI grafton. just as it has
power To require them to comply with
it's law regulating Interstate commerce.
Among tic questions that VIII likely
provoke considerable discussion is that
relating to the effect of federal incor-
poration uoOn the right of the states
10 control and tax the property Of such
Enterprises.
Before voting Tor the measure. some
members of Congress viii wish to have
the rights of tho states clearly defined.
m respect to such matters as regula-
tons tor sanitation and factory inspec-
ton They will also reserve to the
states. beyond any question. their right
In tax property. after the corporation
has assumed its federal character.
Some of them will wish. if possible. to
S"paratp the state from the interstate
business. so that the states will have
power 10 control in respect to business
conducted by the corporation solely
within the state.
In u sections Attorney General Wicker
sham has embodied the ideas of President
Taft and his cabinet regarding q system
of federal Incorporation of business ell
terprses. The bill is expected to be laid
before Congress next week.
The principal feature of the bill will be
the creation of form of holding COM
pany under a national charter which may
control business of subsidiary companies
organized under. state laws. Proper linn
itations will be provided against the en-
barkation of any such corporations in the
business of discounting bills. receiving
deposits and issuing notes. There will
he no compulsory provision in the bill, it
Is said. The corporations will not be re-
qured to take out a national charter if
they see fit to do business under the
state laws instead All charters will be
sioner of corporations; the minimum
amount of capital stock will be limited to
$lOO,0OO not less than $4,000 of which shall
be available to commence business In
case national corporation shall desire
to acquire the property of state corpora
lions it will be required that it shall hold
not less than majority of the capital
stock of such corporations.
Corporations will be authorized to Gre
ate two or more kinds of stock, the pref
erences and designations of which are
to be clearly stated in the articles of as
ISOLATION. but at no time shall the pre-
ferred stock exceed two-thirds of the cap
Stock books are to be open for inspection