Contemporary American History, 1877-1913Beard, Charles A. (Charles Austin)
History
Contemporary American History, 1877-1913
Beard, Charles A. (Charles Austin)
United States -- History -- 1865-1921
Under these circumstances, there appeared the anomalous condition of
states actually advertising in the newspapers and bidding against each
other in offering the corporations special opportunities and low fees
for the privilege of incorporating. If the conscience of one state
became enlightened and a strict corporation law was enacted, the result
was simply to drive the irregular concerns into some other state which
was willing to sell its privileges for the small fee of incorporation,
and ask no questions. As might have been expected, every variety of
practice existed in the forty-eight jurisdictions in which corporations
might be located.
Not only was there the greatest diversity in these practices, but
special discriminations were often made in particular states against
concerns incorporated in other states; and on top of all this there was
a vast mass of anti-trust legislation, frequently drastic in character
or loose and futile. Often it was the product of a popular clamor
against large business undertakings, and often it was the result of the
effort of legislators to "strike" at corporations. Whatever the
underlying motive, it was generally characterized at the outset by lack
of uniformity and absence of any large view of public policy, and then
it was glossed over by judicial decisions, state and Federal, until it
was a fortunate corporation official, indeed, who knew either his rights
or his duties under the law. Moreover, it was a particularly obtuse
attorney who could not lead his client unscathed through this wonderland
of legal confusion.
Public-domain text, read in full here on John Shaqi.
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