The Birmingham age-herald., 1912-05-12


 power was conferred upon any state by
 the articles of confederation. Our basic
 law does not give such powers to any
 state. Congress has no power to confer
 shch powers upon any state. Then 1t
 must be clear that no such power exists.
 No state can lawfully empower cor
 poration 'To dig, mine, tunnel, shaft, ex- oavate, buy, sell, lease and let and oper-
 ate at it's own sweet will Could the
 state of New Jersey incorporate com
 pany to smelt certain minerals or chemi-
 calls that would injure the health of the
 people in our national capital? Could the
 state of New Jersey lawfully authorize
 such a corporation to locate in the state
 of Maryland, just beyond the boundaries
 of the District of Columbia or within the
 said district? 1a l l will give the reasons assigned for in-
 cooperating in one of our states: No public statement, no restrictions, and the
 right to do business anywhere" No an-
 archist has so far ever voiced doctrine as vicious ana so subversive to the arights
 of the people this.
 Article i, Section 1 of our constitu- tion.
 Article 4, Section 1 of our constitution
 is in the main a restatement of one of the provisions of the old articles of confeder- ation. It reads as follows: Full faith and credit shall be given in each state to the public acts, records and judicial pro- ceedings of every other state" The ob- jtct in view in inserting this clause was, as may be seen by reading the remarks when It's adoption was moved in conven- ton, for the purpose of aiding and facil- ! itatlng the collection of dues and debts arising from commercial trading between citizens of different states"
 | This article and section has been cited to give color of authority to the action of fau fs1 .l.a 4Iat,o I thorizing them to act beyond the limits | of the state that chartered the corpora ] ton. That debts are collected in other l states, that the action of the courts in rendering judgments against an absent | debtor is respected in all states is true; the constitutional provision cited makes this course obligatory on all statesi but there is not an element of paralelism in collections of debts-the judicial pro
 ecedings referred to in the constitution, and the chartering of corporations to oper- ate in other commonwealths. ; At the time the constitution was adopted there was not in existence in the United | States of America a single corporation or the character we are discussing. Charters | or patents to lands had been granted by the crown. The basic truths of Patrick | Henry's great oration was: That the general assembly of Virginia had the ex- | elusive right and power to lay taxes and
 make laws for Virginia" What was right for Virginia was right for every
 other commonwealth. These basic rights | have never been changed.
 | By no stretch of fact or fancy can 1t
 be made to appear that the article and Lsection referred to applied In any way to l mparted powers, or to original powers of corporate Jurisdiction Citizens of one state after removing to another state can not vote until the laws relating to cleo | tions have been compiled with. If a state | could project it's powers. 1t could make l laws for all the states. 1t could incor- porate selling companies and grant the corporation the privilege of selling spir- i ituous liquors that would nulllfy the laws | Of many of our states.
 l If states had proicctory powers rnil- ways could be chartered by my state to build and operate anywhere. l If states had the power to project their | authority into other states, railroads
 could be chartered by any state and the lines could run anywhere Property could be condemned in any state and the regulation of traffic lines and rates could
 be made to inure to the benefit of a state and to the injury of other states.
 | That the article and section of our con stitutlon under consideration does refer to powers. that states may assume will be made clear by recalling the act of one Of our sister states in 1892. I will quote. l "An ordinance to nullify certain acts of | the Congress of the United States pur- l porting to be laws. laying duties and inn posts on the importations of foreign com moditiesE I believe that the principle of protecting capital at the expense of lahor is fundamentally wrong, and I favor the notification of such laws enacted by Congress, by repeating them; but our method of procedure must be lawful. This supreme effort and power in law making by the state of South Carolina was given full faith as to its enactment, but not as to the right to nullify.the con stitutional powers of Congress. Full faith was given to the passage of our acts of secession but it has never been conceded that we had the right to withdraw from the union. I concede that states do enact laws that allow corporations to form and to locate anywhere and net under the corporation basic law-nay more-power i4 given to frame and adopt bylaws and without limitation, but the right to do so has never been shown-it does not exist. It is an old and well settled principle of law That governments must securely enjoy any right or power that they seek to delegate or transfer to others" States have the unquestioned right 10 regulate their own internal affairs; this right is enioyed by all the states alike: but it will
 
 | the affairs of its citizens Is confined to | it's own citizens and others while within | it's borders.
 | What is the object in view in enacting such pernicious legislation? Is it for the general welfare of all the people? On the | contrary, it Is a revenue measure, pure and simple. The motive is as narrow, as selfish and unjust as the motives of the crown when the colonists were taxed without representation. The truth Is the state of New Jersey taxes corporations | that have nothing but a registered office within that state, and 1t Is not uncommon l to find a registered office with scores of corporation names outside the little room occupied by the registered agent.
 Corporations maintain a registered office | in New Jersey so as to prevent the tax assessors from getting information as to | how much stock is held by John DoeY For l this purpose they consent to be taxed so
 as to keep their affairs secret. there are no provisions for publicity. they are heay- fly taxed and willingly pay it in order to maintain secrecy. These pirate cor the state where they are chartered; their
 plants and all that is productive lie In
 another state or states. s.sr
 Rights of states
 Each state has the right to compel any | and all corporations that do or desire to
 do business within it's territorial limits to
 be chartered as an original corporation | under it's laws. thus making each char 1 hence independent of all other corpora
 tions. The books and records as we'll as the annual meetings of the stockholders | a ha he ct taf