The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1900-10-03
WILL ASK IT'S REPEAL
Why it Has Not Been Taken to the
Highest Court.
EFFORT BEING MADE TO GET LOBBY FUND
Legislators VIII be Slow in Wipng Off the
Statute Books Law That the Demo-
cratic Party is Pledged 10 in
Its Platform.

1t now looks as if the Craig Act will
have to make a fight for its life in the
next Legislature.
Under it, foreign corporations coming
into the State to do business are compell-
ed to become domestic corporations. This
prevents their setting IN the claim of
diverse citizenship and running into the
Federal court with every little suit
brought against them.
Naturally such a law has aroused the
opposition of all foreign corporations, and
especially those that have been Simon
tons pets, and so they are plotting for
its overthrow when the next Legislature
meets.
More than a year ago a damage suit
was brought in the Superior Court of Dur
ham county against the Southern Bell
Telephone Company. The telephone folk
claimed that they were a New York cor
poration, and that their domestication in
North Carolina under the Craig Act did
not count The court ruled that it did
count very much and the case went to the
Supreme Court. That tribunal, in a very
able opinion written by Justice Douglas,
said ditto.
Then the telephone folk said they were
going to take the case up to the Supreme
Court Of the United States.
But they have not yet done so.
Instead, the same question in another
case from Durham, has been presented 10
Judge Purnell, in the Federal court, and
he has promptly declared the Craig Act
not worth the paper it's written on.
A similar case will. it is said be brought
before Judge Boyd at Greensboro and he
IS expected to follow Purnelrs lead.
After the Craig law was passed, the
Southern Railway was one of the first
outside corporations to become domesti-
Gated. This compliance with the law
however, was . sham. for the first time
the widow OF an engineer killed by the
road sued for the death Of her husband
the Southern's attorneys rushed off to
the Federal court claiming that it was a
foreign corporation and that the Craig
.aw was unconstitutional
Within the past few months an ex-
insurance agent has been writing letters
to all the insurance companies that have
ever done business in North Carolina, and
soliciting contributions TO a fund with
which to fight the Craig law and secure
it's repeal by the next Legislature.
Most of the companies decline to swell
this lobby fund, but others, no doubt, have
contributed.
The opponents of the bill, if the pres
ent program is carried out, will go be-
fore the Legislature and say: Look here,
what snarl you've got the State into.
The Federal courts don't regard your law
md you'd as we'll repeal it,
They will say nothing of their failure
to have the matter tested finally By the
Supreme Court of the United States. be-
,ause they feared the decision would be
against them. They know that if the
court decides against the law, that de-
5troys it as effectually as a repeal by
The Legislature can, but they prefer to try
heir luck with the Legislature, for the
reason that they have reason to believe
he law would stand the test Of the court.
The legislators elect will go slow about
)ledging themselves to repeal the Craig
aw The Democratic State platform of
| 1900 specifically approves Legislation like
The Craig law, and the party stands com
nitted TO do ali in it's power to prevent
Smonton's corporations overriding the
| laws and judicial decisions of North Caro-
| ,na courts.