Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1910-01-14
PLAN STRENGTHENING
TAFT CORPORATION ACT
Some Congressman Would
Make Charter Provision
Compulsory
tBy Associated Press.J


WASHINGTON, Jan. 13.-Now that
the main features of the bill to be rec
commended by the president providing
for a federal Incorporation act have
become known, there is a disposition on
| the part of many members Of congress
to insist not only upon a fun discus
sion of the measure, but amendments
which will in their Judgment be nee
essary to make II effective in dealings
with great corporations. Indeed, it is
believed that nothing short of tremen-
dous administration influence viii enac;
it into %w.
The need of a forfeiture clause by
which a corporation persistently vio-
lating the Jaw can have its charter re-
voked is declared to be absolutely nee
essary il corporations are to be ef-
tectively controlled.
Many CONGRESSIONAL lawyers advocate
compulsory instead or voluntary FEEDER
al incorporation. they cite as sound
the principle that If congress has con-
stitutional power TO grant voluntary
charters 10 corporations doing an in
terstate business, 1t mas power to re-
uuire corporations doing such business
to take a federal incorporation Just as
il has power to require them to COM
ply with it's law regulating Interstate
commerce.
Among the questions that will come
up for consideration and likely will pro-
woke considerable discussion is that re-
lating to the erect of federal incorpora-
ton upon the right of states to control.
and to tax, the property OF such enter
prises. This is a phase OF the pro-
posed law, 1t is said, that has received
comparatively little attention.
In q sections Attorney General Wick
ersham has embodied the ideas of Pres
ident Taft and his cabinet regarding a
system of federal incorporation OF bust
ness enterprises. The bill is expected to
be laid before congress next week.
FORM A HOLDING COMPANY.
The principal feature of the bill will be
the creation of a form of holding COM
pany under the national charter which
NAV control business of subordinate COM
panies organized under state laws. Prop
er limitations will be provided against
the embarkation of any such corpora
tions In the business of discounting bills.
receiving deposits and issuing notes
There will be no compulsory provision
in the bill, it is said. The corporations
will not be required to take out ma
tional charter if they see fit to do bust
ness under the state laws instead. All
charters will be subject to the approval OF
the commissioner of corporations; the
minimum amount of capital stock Will
be limited to $4,000, not less than $1,000
of which shall be available to commence
business In case a national corporation
shall desire to acquire the property OF
state corporations, it will be required
that it shall hold not less than majority
of the capital stock of such corporations.
MAY CHOOSE DIRECTORS.
ANY corporation that has more than
one kind of stock will be authorized to
confer the right to choose the directors Of
any class to the exclusion OF others.
, Corporations will be authorized to create
two or more Kinds of stock, the pxefer-
ences and designations of which are to
be clearly stated i'm the articles of asso-
citation, but at no time shall the prefer
red stock exceed two-thirds of the capital
. stock paid in cash or property. No pre-
/, barred stock by the terms can be issued
e>tept as specified in the original arti-
Giles of association save with the consent
NJ .he holders of two-thirds of each class
of outstanding stocks. Stock books are
ia De open to inspection of all stockhold-
ars. Judgment creditors and law officers.
Aa important provision will be one re-
! Guiding every subscriber to pay to the
treasurer or a corporation 10 per cent
Of de amount of his subscription in cash.
ana nnhSs will be authorized to as
SCI ssdirg the whole r.