Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-10-16
State Commissioners in Con-
ference Here Decide on De- j.
tails of New Measure.
REFUSE TO PUT A BAR
ON DIRECTORS ACTIVITIES
Report of Committee on Employer
Liability Act Next on
Program.

Analysing the laws of various states
which affect business corporations, the
conference of commissioners on uni
form state laws, in annual session at
the New Willard Hotel, spent most of
today discussing a proposed uniform
law of that character, final action on
which probably will be taken by to-
night.
The commissioners have gone over
the proposed model law section by sec
ton, and before the conference ad-
journs it will be whipped into such
shape that they can recommend to the
legislatures of the country that it be
passed by all of the states A maxi
mum limitation on capital stock has
been voted into it, the advocates of
such legislation contending that it
must contain such a provision to meet
the demand for progressive legislation
Not Suitable to All.
Commissioner w. o. Hart of Louisiana
criticised the wording of the limitation
as adopted because it leaves the exact
maximum to be fixed by each state.
Commissioner Nathan W. McChesney Of
Illinois commended that a limitation
suitable for small agricultural state
would never be satisfactory to his
state legislature, and won his point
that the states themselves may fix the
ma ximum.
The proposed uniform law has also
been amended by the commissioners to
provide for corporations of perpetual
from holding stock in another corpora
ton.
One feature Of today's deliberations
was proposition advanced by Nathan
b. Williams of Fayetteville, Ark, to
amend the section dealing with d.
rectorS
Commissioner Williams, who was ap-
pointed by the Governor Of Arkansas to
attend the present conference while Mr..
Williams was in Washington on other
business, endeavored to amend the sec
ton relating to directors by inserting
in it a provision that no person shall
be director in two corporations en-
gagged in the same or similar lines Of
business. He explained that he was at
tempting to incorporate in the uniform
law to be passed by the states a pro-
ing directorates which has recently been
passed by Congress in the antitrust
legislation.
Proposition Voted Down.
The commissioners voted down Mr..
Williams proposition after speeches in
which it was explained that lawyers
are frequently. obliged to serve as di-
rectors in one or more allied corpora
lions in the interest of their clients
Sections relating to the liability of
stockholders in business corporations
were laid aside for later discussion
These. probably will come up this even
ing.
The necessity for action by the Com
in haix
about the passage of model, uniform
law in all the states, so far as stock
holders liability Is concerned, was ex-
planned by the committee having this
proposed law in charge in statement
which declared that four states make
the original subscriber to stock alone
liable, while six states make both
the original subscriber and the
transferee liable. Again, it was stated,
four states make the original subscrib-
er liable upon default of the transferee.
while eight states make stockholders
liable for debts contracted while they
remain such.
The latter is the provision of the New
York statute, and it Is said to be diff
ficult to apply in practice. Twenty-six
states discharge the transferror and
make the transfers. alone liable. Ten
states have provisions making the
stockholders liable for the wages Of
employees.
New Standing Committees.
Two new standing committees have
been created by the conference, one on
uniformity of judicial decisions and
the other on plan, scope and co-ordina-
ton of the work of the conference.
They have not been named. Thirty
three states were represented in to-
days deliberations, an increase Of two
over yesterday, the delegates from
South Dakota and North Carolina hav-
ing arrived this morning.
AS soon as the conference finishes
with the proposed law on business
corporations the report Of special
committee on compensation for in
dustrial accidents will be taken up.
Twenty -four states of the Union now
have compensation acts, as these en-
ployer's liability measures are known.
Four new acts have been adopted in
as many states since the commission
erS were last in session-one in New
York, one in Maryland, one in Ken
lucky and one in Louisiana.
Commissions are at work on the sub
ject in Indiana. Missouri. Pennsylvania,
Maine, Vermont and several other states
preparing bills to be submitted to the
during the coming year. For
this reason the conference of commission
ers will settle upon what 1t believes to be
a model, uniform law for all the states at
this session.
Report Of Committee.
The report Of the committee having this
law in charge will state. in part: