The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1915-06-02
REPORT ON TAX
LAWS-F0RE|GN
CORPORATIONS
LACK OF UNIFORMITY is SAID TO
RESTRICT BUSINESS COLA.
TIoN OF STATUTES EXPECTED
TO AID COMMERCE.

Washington, June IA report on
state laws tor taxation of foreign
corporations. submitted to President
Wilson today after many months of
work by the old bureau of corpora
tons, declares that lack of uniform
| ity of those laws has often seriously
restricted and hampered business and
that large sums of money have been
lost by corporations for unwittiug vio-
lations.
1t emphasizes the Importance of
uniformity of state laws. The report
presents the latest draft of uniform
corporation law made by the COM
missioners on uniform state laws in
national conference and presents a
collation. and comparison of laws now
existing. which it expects will be of
value to those engaged III commerce
| between the states.
The report is accompanied by the
following letter of sumbttaI:
Letter Of Submittal
"Sir: have tht honor to submit
herewith a report on state laws con
| cerning foreign corporations:
Each state of the union has its
distinctive laws regarding the admis-
sion to the state of corporations or
| ganized in other states or countries
and their subsequent operations. This
has resulted in wide divergence in
the legal prerequisites for and con
ditions pertaining to the doing of
business by a corporation in states
which has often seriously hampered
and restricted the conduct of busi-
ness. The penalties imposed for
technical failure to comply with such
prerequisites and other legal condi.
tibns are in many instances drastic
and severe. The actual money lost
by corporations due to alleged un-
whiting violations of the laws of diff
ferent states is undoubtedly very
large.
Scope of the Report.
"The material presented in this re
port relates chiefly to the constitu-
tional and statutory provisions of the
several states imposing conditions
precedent to the right of corpora
ton to do business in states other
than the state creating it, and also
the provisions which such a corpo-
ration must observe in order to con
tinue to do business therein. The
provisions of law of the several
states relating to business corpora
tions only are covered by this report
The statutory provisions relating to
those kinds of corporations which are
made a subject of special legislation
such as railroads, and other public
service corporations, banks, trust
companies, investment companies
building and loan associations and in
surance companies, are not consid
cred.
Method Of Presenting the Law.
"The method of presenting the law
adopted in this report is the cola
ton of constitutional and statutory
provisions, by topics, in a systematic
order which facilitates ready refer
ence TO the particular provisions il
each state and a comparison of tht
provisions of the several states. lr
each case the words Of the statutory
or constitutional provisions are giver
in so far as is necessary to show
the precise requirements OF eacf
state. but where two or more states
have an identical or substantially the
same provision the essential words
are given but once, with an enumera
ton of The states to which such pro-
vision applies.
Uniformity of State Laws.
Embarrassment would be saved tC
corporations which do business II
states other than those creating them
and sometimes to persons who dea
with them also. if the corporation law.
Of the states were uniform. The com
missioners on uniform state laws, il
national conference. have for some
. years had in hand a project OF a uni
. form law of business corporations
and have a standing committee a
work upon it, Four times. at the
conferences Of 1910, 1911, 1912, and
1914. this committee has reported
draft OF such law. Four times the
. conference has considered the draf'
section by section, amended IT, anc