Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1884-04-22
THE SUPREME COURT.
Decfsser Rendered in Two FmnOr
faHt RasIronl Snirs

fant Railroad salts.
WASHINGTON, April 21.-A decision
was rendered in the Supreme Court of the
United States to-day in the important
railroad cases entitled T. J.. Ames et al .
the board of directors of the Union Pacific
Railroad Company, plaintiffs in error,
against the State Of Kansas, er rel. F. A.
johnston, attorney general, and the Kan
sas Pacific Railway Company. plaintiff in
error, against same---in error from the
Circuit Court of the United States for the
District of Kansas. These suits were
brought by the State of Kans.s in her own
courts against the Union Pacific and Kan
sas Pacific Railroad Companies to defeat
the consolidation OF these corporations,
which was effected by ar agreement en-
tered into on the 2tst of January. 1890.
Ihe questions presented here relate to the
right OF removal from the State to the
Federal Courts, which is claimed by the
railroad companies and denied by the
State. This court held, first, that these
are cults OF a civil nature; second, they
are suits arising under the laws of the
United States; and, third, they are prop
erly removable to the Federal Coult under
the act of March 3, 1875. An order TO re-
Tnanel to tine State Court is in each case
reversed, and the United States Circuit
Court directed to entertain the cases as
properly removed from the State Court
and proceed Herewith accordingly.
A decision was also rendered by the
Court to-day in the national bank-stock
case of Henry j. Anderson, receiver of
the First National Bank of Allentown,
Pa, against the Philadelphia Warehouse
Company. The question presented by
this case is whether a corporation which
has taken national bank stock as collat-
eral security for loan has right TO NOM
inAiiy transfer the certificate OF that stock
to an irresponsible person in its employ
and have the certificate registered in the
name of such irresponsible person in
order to escape the liability which
would attach to such corporation
as a stockholder in case OF the banks
failure and insolvency. The court holds
that the nominal transfer here brought in
question was made in good faith when the
bank was ir good credit aud paying large
dividends, and years before its failure or
even its semtarracsment. Sc far as the
company is concerned, the transfer was
not made to escape impending calamity,
but to avoid incurring liability which il
was unwilling to assume, and which it was
at perfect liberty to do. The Judgment of
the Circuit Court is affirmed in opinion by
Chief-Justice Waite.
in which he said if in any case between
private persons one of them had placed
property in the hands of minors, servants,
or other irresponsible persons for the pur-
pose of escaping the responsibility attach
ing to the ownership of such property,
while securing sll the advantages of such
ownership, it would be held to be trans
action which could not be sup
ported on any legal or equitable
principle. The transfer in the present
| case, il not actual fraud was fraud upon
the banking law and was so intended to be
by both the original holders of the bank
shares and officers OF the Warehouse Com
pany. Justice Matthews joined in Justice
Miller's dissent.
The court also decided the case of John
7. Blair, plaintif in error, Us. the County
of Cunning, in error from the Circuit Court
of the United States from the District oi
Nebraska. This was a suit upon the cou'
pons of series OF bonds amount
ing in the aggregate to $30,000
/ issued by Cunning county, Neb., in
/ behalf of West Point precinct, of that
county, for the purpose of improving the
water power OF Elkhorn river. The
county now refuses payment on the
ground that the lands in question are not
Its obligation, but the obligations Of West
folnt precinct. Inc court hoius tna'
''the bonds issued by the county com
missioners of a county in behalf Of
precinct of that county to aid
company in improving the watel
power OF river for the purpose OF pro
pelling public grist-millsI are issuet
| to aid IN the construction of work in the
| interest of improvement within the mean
/ ing of the act of Nebraska, February 10
/ 1859, as amended by the act of March 3
/ 1870, and that suit on the coupons of such
bends is properly brought against the
county. Judgment reversed, with costs
and the cause remanded with direction
| TO overrule the demurrer to the petition
and take such further proceeding in tn,
/ cause as may be required by law, and a
/ shall not be inconsistent with the opinion
{ Of this court