Federal Centralization: A Study and Criticism of the Expanding Scope of Congressional Legislation

By Walter Thompson | Go to book overview

CHAPTER XIV
CORPORATIONS AND BUSINESS COMBINATIONS
IN considering the manner in which the federal government has encroached upon the states and the extent to which such encroachment has been carried with regard to control over corporations and business combinations, it is convenient to approach the subject from three points of view. In the first place, there has been a curtailing of the power of the states to regulate corporations, because in regulating them the states are apt to interfere with interstate commerce. Secondly, the federal government has assumed a positive policy in defining and regulating certain business combinations -- a policy which will be enforced regardless of the wishes of the states. Finally, the federal government has assumed the power to issue charters of incorporation. The subject will be considered in this chapter from these three points of departure.
1. With regard to purely domestic corporations, there is no question about the power of the state over the corporation. Such a corporation is a creature of the state and the state may refuse to grant a charter or may grant it under its own terms. With regard to the power of a state over a foreign corporation doing business in the state, the case is not so simple. Theoretically a state can prevent a foreign corporation from doing business within its boundaries, and what the state can exclude it can admit on hard terms. This doctrine

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