Show MANY MEN Of MANY MINDS I i Prospect That Members of Congress Will Wish to Add Something to the Incorporation tion Act Prepared by Taft FORFEITURE CLAUSE ADVOCATED BY SOME Others Insist Upon Making the Law Compulsory Instead of Voluntary and States Rights Are Once Again Discussed BILL OF MR WICKERSHAM Washington Jan that the main features of the bill to be recommended mended by the President providing for a federal Incorporation act have become known there is a disposition on the tho part pant of many members of Congress to Insist not only upon a full discussion of th the measure but amendments which they believe to bo be necessary to make it effective in dealing with corpora corporations corporations Ind Indeed d It Is believed that nothing short of oC tremendous administration Influence ence ill vill enact it into law The need of forfeiture clause by which a corporation persistently violating th the law can have Its charter revoked is de declared dared to be absolutely necessary If con cor corporations are to be effectively controlled Man Many congressional lawyers advocate compulsory Instead of voluntary federal Incorporation They Thoy cite as sound the general prIncIple that It if Congress has con constitutional constitutional power to grant voluntary char charters charters to corporations doing an Interstate I business it has lias power to require corpora corporations I doing such business to take a fed federal I eral Incorporation just as It has power to require them to comply with Its laws reg regI regulating I interstate commerce Rights of the States II Among the questions that wilt will come up for consideration is that relating to the effect of federal Inc Incorporation upon the rIght of states to control and to tax the thep p porty of such enterprises Some members of Congress will wish to have the rights of the states clearly de defined defined fined in respect to such matters as regu lat ons for sanitation and factory Inspection Inspection tion They will also wish to reserve to the states their right to tax such prop property erty after aCter the corporation has assumed Its federal character Some of t them em will wish It if possible to separate the state from the Interstate business so that the states may still have haye power to control In respect to business conducted by the corporation solely with In the state In sections Attorney Gen erni eral Wickersham has embodied the Idea ci of President Taft TaCt and hIs cabinet regard j Ing a s system s em ot of or of business ent enterprises The bill proba probably ly wIll ill lit ho laid before Congress next week J 1 Bill The prIncipal feature will be the crea tion of a form of holding company un der the national charter which may con business of oC subordinate companies organized under state laws Proper limitations be provided against the embarkation of any such In Incorporations Incorporations corporations In the business of discount tag Ing bills receiving deposits and Issuing notes There will be no compulsory pro provision provision vision in the 1 bill It Is said The corpora will not be required to take out a national charter if they see fit to do bust busi business bustness ness under the state laws instead AU All chart charters rg will be sUbject to the ap of the commissioner of corpora Any corporation that has more than one kind of oC stock will be authoriZed to confer the right to choose the directors of any clars to the exclusion of others No preferred stock by the terms of the bill may be Issued except as specified In the original articles of association save with the consent of the holders of two thirds ot of each cl ss or of outstanding stock Stock books are to be open to inspection of all stockholders Judgment creditors and law officers An Important ProvIsion be one requiring every subscriber to pay to the treasurer of a corporation 10 per cent of the amount of oC his tion In cash and thE directors will be au to assess stock not exceeding the whole par value thereof A corporation will be permitted to pur chase property necessary for its business and issue for the same with the ap of the bureau of corporations |