The herald and news. [volume] (Newberry S.C.) 1903-1937, 1907-08-06
JUDGE GARY ON
] STATE RIGHTS
DECIDES FOREIGN CORPORA
TION IS CHARTERED.
This Opinion is in Direct Conflict
With Recent One From Judge
Pritchard.


dered most important decision, in
volving the right of an Interstate
railroad to have damage suits and
other cases transferred from the state
to the federal courts on the ground
that they are foreign corporations.
The case is that of ". C. Geraty, of
Charleston, against the Coast Line
for damages for over $4,000 and the
judge finds that under the constitu-
tion Of this state all roads have to be
chartered under the laws Of this state,
and that the Coast Line is estopped
from eontending that it is a foreign
corporation, because if it establishes
this contention it is being operated in
South Carolina unlawfully.
In a similar case in North Carolina
recently Judge Pritchard decided the
other way so far as North Carolina
was concerned in the case Of the
Coast Line.
The decision is on a question long
disputed in this state, and is Of the
highest importance. The decision fol-
lows:
The State Of South Carolina, Coun-
ty of Charleston, Common Pleas. ".
C. Geraty, plaintiff, against Atlantic
Coast Line Railroad Company, de-
fendant. The defendant made a mo-
tion before me to set aside the SER
vice Of the summons herein, on the
ground that the defendant is not
a corporation, organized under the
laws Of the State Of South Carolina,
as alleged in the complaint.
The view which I take of the ques-
-tion involved, renders unnecessary
tie consideration of the numerous
phases Of the law, discussed by coun-
sci.
Article 9. Section s Of the consti-
tuition Of South Carolina, is as fol-
lows: "The General Assembly shall
not grant to any foreign corporation
or association, a license to build,
operate or lease any railroad in this
state; but in all cases where rail-
road is to be built or operated, or
is now being operated in this state,
and the same shall be partly in this
state and partly in another state, or
in other states the owners or projec
tors thereof shall first become ineor-
porated under the laws Of this state;
nor shall any foreign corporation or
association, lease or operate any rail-
road in this state, or purchase the
same or any interest therein. Consoi-
dation. Of any railroad lines and cor
porations in this state with others,
shall be allowed only where the con-
solidated company shall become do
nestle corporation Of this state. No
general or special law shall ever be
passed for the benefit Of any foreign
corporation, operating a railroad I'M
der an existing license Of this state, or
under any existing lease, and no
grant Of any right or privilege, and
no exemption from any burden shall
be made to any such foreign corpora
ton, except upon the condition that
the owners or stockholders thereof
shall first organize a corporation in
this state under the laws thereof, and
shall thereafter operate and manage
the same and the business thereof" "
The Atlantic Coast Line Railroad
company (which was incorporated un-
der the laws Of Virginia) and the
Savannah, Florida and Western Rail-
way Company entered into articles Of
agreement for the consolidation and
merger of the said companies; and
thes aid articles Of agreement were
confirmed by the stockholders OF
each of said companies, at separate
meetings held, in pursuance of law
and after due notice.
The stockholders of each of said
companies. at theiG respective meet
ings, adopted a resolution "that the
State of South Carolina be requested
to issue to Henry Walters, Warren 6.
Elliott. James J. Lucas and Christoph-
er S. Gadsden and such other persons
as may be, or hereafter may become,
associated with them as the owners
and stockholders Of the merged, unit
ed and consolidated company and
their successors, charter as a merg-
ed, united and consolidated body poll
tic and corporate, in perpetuity, un-
der the name Of the Atlantic Coast
Line Railroad Company, having, pos
sessing, holding and enjoying, each,