The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1910-01-18
CORPORATIONS STILL
HAVE FRIENDS AT COURT
Proposed Law viii Permit Big
Holding Companies for
Small Concerns

Washington, jan 1S.-Now that
the main features of the bill TO be
recommended by the President pro-
yiding for a. federal incorporation act
have become known there is dispo-
sition on the part OF many members
OF congress to insist not only upon
full discussion of the measure, but
upon amendments which will, in their
Judgment, be necessary to make 1t ef-
fectiye in dealing with great corpora
tions. Indeed, it is believed that moth
ing short of tremendous administra-
tiUn influencse will enact it into law
The need of forfeiture clause BY
which a corporation persistently VIC
lating the law can have its charter re-
roked Is declared to be absolutely
necessary If corporations are TO be eff
fective controlled.
Many congressional lawyers adyo-
cate compulsory instead Of volnn.
tary federal incorporation. They cite
as sounI the general principle that il
congress has constitutional power 10
grant voluntary charters to corpora
tions doing an interstate business, Ii
has power TO require corporations do
ing such business to take federal
incorporation 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 10 control
and to tax the properly of such en-
tc-prises.
involves state Rights
Some members of congress will
wish to have the rights of the states
clearly defined in respect to such mat
tiers as regulations for sanitation and
factory inspection. They win 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,
10 separate the state from the inter
state business, so that the states NAV
still have power to control in respect
to business conducted by the corpora
ton solely within the state.
In twenty-one sections, Attorney
General Wickersham has embodied
ideas of President Taft and his cabi-
net regarding system OF federal in
corporation of business enterprises.
The bill is expected TO be laid before
congress next week.
The principal feature of the bin
will be the creation of form of hold
ing company under the national char
ter, which may control business OF
subordinate companies organized un-
der state laws.
Limits Discounting
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 thesbill, it is said
The corporations will not be required
to take out 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 cor
poration shall desire 10 acquire the
property Of state corporations 1t will
be required that II shall hold uoi
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 di-
Tcctors Of any class 10 the exclusion
- .&t.