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 FEDERAL REGULATION OF CORPORATIONS

FEDERAL REGULATION OF CORPORATIONS A DANGEROUS DEPARTURE BY JOHN E. PARSONS THE Statutes of the State of New York compulsory federal incorporation of inter (the same is doubtless true of other state commerce companies, that a federal States) prescribe that conveyances and license or franchise shall be required for other instruments may be recorded in Re interstate commerce, that corporations shall gisters' offices upon being authenticated be prohibited from engaging in interstate when executed abroad, before specified of commerce without such franchise or license, ficials, among the number being United requirements as to corporate organization, States Consuls. Recently deeds conveying for reports, etc. For reasons which are un land, the execution of which was acknowl important in the consideration of the sub edged before a Consul of our country, have ject, there is an increasing tendency to in been certified by him describing himself as corporate not only manufacturing and other American Consul General. Whether in the enterprises which involve large amounts official title of our foreign representatives and the participation of large numbers, but shall be used the name United States, a to adopt the same course with any kind of name back of which is history and which is business enterprise: grocers, shoemakers, pregnant with signification, or there shall be butchers, dealers in supplies of any kind, used the term which has been directed by avail of incorporation laws to do business the State Department, is a subject about as an incorporated company. And the which there may be a wide difference of means of communication between the States opinion, but in taking the action of the bring all parts of the country into such close Department, the Secretary can scarcely have touch that it may easily be claimed that al had in mind the manifold directions in most all corporations essentially local do which the name heretofore always borne interstate commerce. An incorporated es has permeated the life and legislation of all tablishment doing business in any one of parts of the country. In the particular case the large towns, which sells to a cus to which reference has been made, while the tomer who happens to be on the other side Consul found no difficulty in calling himself of a State line is brought within decisions American Consul General, no provision which hold that he is doing interstate com seemed to have been made for a change of merce. It is not difficult to see, therefore, that if his seal. The result was that he wrote himself down American Consul. But his the recommendations of Mr. Garfield's re seal certified that it was of the United States port shall become effective, the business of of America that he was Consul. Naturally, the country will in large measure be brought so far as the difficulty existed, this did not within federal control and certain conse remove it. I think that it would be trouble quences will result which deserve serious some for the Department to suggest how consideration. Our federal system is anom the change can be made to conform to ex alous and incongruous, but there would have been no United States of America at isting State legislation. The illustration is to the point that mat the time the Constitution was adopted if it ters of the kind show the wisdom of the old had not been for the compromises to which maxim about looking before you leap. It that instrument bore witness. The riots in New Orleans a few years is peculiarly applicable to Mr. Garfield's re port. The points which have universal and since are fresh in memory. The killing of immediate bearing are that there shall be the Italians justified a remonstrance by the