Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1910-01-13
Embodied in TWenty-one Sections
In Bill Drawn UP by Attorney
General Wickersham.
WILL BE VERY HARD TO PASS
Principal Feature VIII be Creation OF
Form of Holding Company I'm
der National Charter.

Washington, Jan 1S.-Now that the
main features OF the bill to be recon-
mended by the president providing for
federal Incorporation act have be-
come known there is disposition on
the part of many members of Congress
to Insist not only upon a full discus
sion OF the measure but upon amend
ments which will in their Judgment
be necessary to make 1t effective in
deed, 1t is believed that nothing short
OF tremendous administration influence
Will enact 1t into law.
The need of q forfeiture clause by
which corporation persistently yiolat-
ing the law can have its charter re-
Foked Is declared to be absolutely nee
esSary III corporations are to be ef-
fcctively controlled.
Many congressional lawyers advocate
compulsory instead of voluntary feder-
al incorporation. They cite as sound
the general principle that If Congress
mas constitutional power to grant VOL
untary charters to corporations doing
an Interstate business it has power
TO require corporations doing such bus
mess to take a federal INCORPORATION
Just as ii has power to require them
to comply with its laws regulating
interstate commerce.
QUESTION OF TAXATION.
Among the questions that will come
up for consideration is that relating
to the effect of federal incorporation
upon the right of states to control and
TO tax the property of such enterprises
Some members of Congress will wish
to have the rights of the states
clearly defined in respect to such mat
ters as regulations for sanitation and
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,
to 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 Il sections Atty.-Gen. Wickersham
has embodied the idea of President
Taft and his cabinet regarding system
OF federal interpretations of business
enterprises The bill probably will be
laid before Congress next week
PRINCIPAL FEATURE:
The principal feature will be the Gre
alton of a form of holding company
under the national charter which may
control business OF subordinate com
panies organized under state laws.
Proper limitations will be provided
against the embarkatlon of any sucu
interpretations in the business of dis
counting bills, receiving deposits and
Issuing notes. There will be no COM
pulsory provisions in the bill, it is said
The corporations will not be required
to take out a national charter IL Ihey
see fit to do business under the state
laws instead.
All charters will be subject to the
approval OF the commissioner of corbor-
ations.
Any corporation that has more than
one kind of stock will be authorized
to confer the right to choose the dt.
rectors of any class to the exclusion OF
others.
No preferred stock. by the terms
may be Issued except as specified In
the original articles of association save
with the consent of the holders of :wo-
thirds of each class OF outstanding
stock. Stock books are to be open tc
inspection OF all stockholders, Judgment
creditors and law officers. An impor-
tant provision vii lbe one requiring
every subscriber to pay to the treasurer
of a corporation 10 per cent OF the
amount OF his subscription in cash and
the directors will be authorized to as
sess stock not exceeding the whole Dal
value thereof
A corporation will be permitted t.
purchase property necessary for its
business and issue stock for the same
with the approval of the bureau OF
corporations.