such State for use, consumption, sale, or storage, shall upon arrival and delivery in such State be subject to the operation and effect of the laws of such State to the same extent and in the same manner as though such goods, wares, and merchandise had been manufactured, produced, or mined in such State, and shall not be exempt therefrom by reason of being introduced in the original package or otherwise.

SEO. 402. All goods, wares, and merchandise manufactured, produced, or mined, wholly or in part, by any person under conditions of employment which do not comply with the requirements imposed by section 5 of this Act in the case of licensees (1) which are transported into any State which imposes the requirements imposed by such section 5 with respect to goods, wares, and merchandise manufactured, produced, or mined, wholly or in part, in such State, and (2) which remain in such State for use, consumption, sale, or storage, shall upon arrival and delivery in such State be subject to the operation and effect of the laws of such State to the same extent and in the same manner as though such goods, wares, and merchandise had been manufactured, produced, or mined in such State, and shall not be exempt therefrom by reason of being introduced in the original package or otherwise.

SEC. 403. (a) It shall be unlawful for any person (1) knowingly to transport or cause to be transported, in any manner or by any means whatsoever, or (2) knowingly to aid or assist in obtaining transportation for, or in transporting, any goods, wares, and merchandise manufactured, produced, or mined wholly or in part by any person less than sixteen years of age, or by any person less than eighteen years of age who is employed in a hazardous occupation or at any other time than between the hours of 7 antemeridian and 7 postmeridian, into any State if such goods, wares, and merchandise are intended by any person interested therein to be received, possessed, sold, or in any manner used, either in the original package or otherwise in violation of any law of such State.

(b) All packages contaning any goods, wares, and merchandise manufactured, produced, or mined wholly or in part by any person less than sixteen years of age, or by any person less than eighteen years of age who is employed in a hazardous occupation or at any other time than between the hours of 7 antemeridian and 7 postmeridian, when offered for transportation in interstate commerce, and when transported and delivered in such commerce, shall be plainly and clearly marked so that the fact that such goods, wares, and merchandise were so manufactured, produced, or mined may be readily ascertained upon an inspection of the outside of such packages.

SEC. 404. It shall be unlawful for any person (1) knowingly to transport or cause to be transported, in any manner or by any means whatsoever, or (2) knowingly to aid or assist in obtaining transportation for or in transporting, any goods, wares, and merchandise manufactured, produced, or mined in any State which does not impose requirements similar to those imposed by such section 5 into any State which does impose such similar requirements if such goods, wares, and merchandise are intended by any person interested therein to be received, possessed, sold, or in any manner used, either in the original package or otherwise in violation of any law of such State.

SEC. 405. (a) Any person violating any provision of section 403 or section 404 shall for each offense, upon conviction thereof, be punished by a fine of not more than $1,000, and such goods, wares, and merchandise shall be forfeited to the United States, and may be seized and condemned by like proceedings as those provided by law for the seizure and forfeiture of property imported into the United States contrary to law.

(b) Any violation of section 403 or section 404 shall be prosecuted in any court having jurisdiction of crime within the district in which such violation was committed, or from, or into which any such goods, wares, or merchandise may have been carried or transported contrary to the provisions of such section.

SEC. 406. As used in this title, the term "State" includes Hawaii, Alaska, Puerto Rico, the Virgin Islands of the United States, and the District of Columbia.

SEC. 407. If any provision of this title, or the application thereof to any person or circumstances, is held invalid, the remainder of the title, and the application of such provision to other persons and circumstances, shall not be affected thereby.

SEC. 408. This title shall take effect

years after the date of its enactment.

Senator O'MAHONEY. The members of the subcommittee may be interested to know that the principle upon which this bill has been drafted is embodied in very simple language in the constitution of the State of Wyoming. There seems to be a rather unique connection between Wyoming and this legislation not only because my interest in corporate regulation was first aroused by the provision of the State constitution, but because in 1911 or 1912 Senator Clarence D. Clark, one of my predecessors from Wyoming in the Senate, who was the chairman of this Judiciary Committee at that time introduced a bill for Federal incorporation. It was a measure which was drafted after consultation with the Attorney General of the Taft Cabinet, Mr. George W. Wickersham, and it is the basis of title 3 of this bill.

But to return to the principle announced in this State constitution. It reads:

All powers and franchises of corporations are derived from the people, and are granted by their agent, the Government, for the public good and general welfare, and the right and duty of the State to control and regulate them for these purposes is hereby declared.

Senator KING. You speak of the State and not the Nation?

Senator O'MAHONEY. The State, and not the Nation. But the principle here announced is that upon which corporations have been historically formed.

A corporation, as the Supreme Court has declared in numerous instances, and particularly in the case of Paul v. Virginia, has no rights as such. It has only special privileges. Privileges to do business free from restrictions imposed upon the natural person. A corporation is created by a contract between a Government, some government, and the natural persons who desire to form the corporation. Now, at the time the Constitution was drafted, corporations were almost unknown in the conduct of business. I want to point out to the committee this map, which has been enlarged from the Myers book on railroads. The first map shows the extent of all the railroads in the United States in the year 1840, 50 years after the Constitution was adopted. At that time the total railroad mileage was only 2,818. It will be observed that there was a railroad in Georgia, one running from South Carolina into Georgia, another from Wilmington, N. C., north into Virginia, and the Baltimore & Ohio Railroad, some railroads in Pennsylvania, New York and New England, and scattering mileage in the West, none at all west of the Mississippi River.

In 1850 the railroad mileage had increased to 9,021 miles. The railway system was still confined to that portion of the country east of the Mississippi River. Both of these maps indicate the extent to which business in that period was localized. It did not consist of this vast interstate picture we see now.

In 1860 railroad growth was still confined to the eastern part of the United States, but, as this map shows, the railroads were becoming more numerous. The mileage had increased from 9,021 miles in 1850 to 30.626 in 1860.

Now, during the period the railroads were developing, the Government was aiding in various ways. One particular instance in the West was that which accompanied the construction of the Union Pacific Railroad. The map of 1870 shows that trans-continental line