The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1908-01-23
DECISION IS BLOW
TO STATE RIGHTS
FEDERAL JUDGE KNOCKS OUT
RAILWAY LAW PASSED BY MIS-
SOURI, LEGISLATURE.
ROADS CAN TRANSFER SUITS.
Mcpherson Says Act FORGETTING Charters
for Changing Litigation to U. S.
Courts Is Unconstitutional.
AGAINST SUPREME LAW OF LAND.

KANSAS CITY, Mo-, Jan. 20.-Judge
Smith Mcpherson, in the United States
district court here today declared void
and unconstitutional the statute passed
by the Missouri Legislature in 1907 for
bidding foreign corporations from trans
ferring suits brought against them from
the state to the federal courts upon PAIN
of forfeitures Of the charters. The ap-
plication Of the Rock Island, Santa Fe,
the ST. Louis, Kansas City u Colorado,
the Milwaukee & ST Paul and the Chica-
go & Alton Railway companies for IN
injunction to prevent John l.. Swan
ger, secretary of state. from enforcing
the law was granted by the court.
Decision of Judge Mcpherson.
The decision in part follows:
This court is mindful OF the criticism
by many laymell, as well as by many
lawyers, to the effect that United States
courts have no right, nor even the pow
er, to decree the invalidity Of state
statutes. The argument, or, rather the
talk is, that the people know what they
need and that their representatives. IN
Legislatures assembled alone should lie
termine what statutes we must have.
1T is alleged in this case that the com
pla inant is about removing a case, and
the secretary of state will follow that by
revokng its rights to do business. The
defendant contends that this in effect is
an action against the state, in violation
of the eleventh amendment to the CON
stitution. The complainant contends
that the act of 1907 impairs its con
tract with the state, and denies II the
equal protection of the laws if enforced.
Judge MCPHERSON in his decision goes
into the law of the case mt great length
sions to sustain his position.
Cites Wisconsin Case.
"Oficers Of the state" continued
Judge Mcpherson, in his decision, "too
often deCry the power of the nation.
State rights is their Shlbholcth.' he add
ed. The most attractive argW ont TO
some lawyers of recent days Is mat the
state courts alone in the first instance
should pass upon the question rs to
the validity of state statutes. with the
right of the defended party TO carry
the case for final decree to the supreme
court Of the United States. such argu-
mcntS are plausible are convincing 90
many good people but are 50 dan@erUu,
as to amount to heresy. 1t IS the cX-
IRENE of state rights in Il new form.
Judge Mcpherson cited a decision of
the Wisconsin state supreme court which
upheld state statute under which an
insurance cOupany's charter had been
rnvnl,nI for r.,,,yiu, 81 co.,, Il, a., f.l.ruI
1870 ''' - -" -
eouil'
III tHlS ease, however, At says the
company had no property IN the state,
and had made no investments therein.
"In the case Mt bar" he said "a license
to do business is not the question. Eacn
VI tnt o"'n -, ''t,'.'uN w
uo , - ,'u re- ,ro,.a,', =, f,,,,,, ~"
;'' I,,;,,'i,. ,,,,,,,s ,,,nr,,,,ri,tt,
,ir1,,ort,, ~, dasfroyipo IL witLnmr n'.l,i,,,
XIX. ,nn,rnnsatinn thprnfot'
In concluding Judge NIrphrrs,u holds
a. follows.
rho Missouri statutr of 1897 is Void la.
cause ii allows n resident company L. Sc
in the federal court II there Is fedora
question, ana denies tnat FEht L" a u
i I ,o,,' ~ no last ,rrrrdf,, ,t,, -,
mo Statute is void bncausr ii seeks tp tpIe
from the complainant It's right to bring or
remove n case 10 ia" u.tcd states court
Whlch t'Egt - -,,u ~ ,'I .T"' "'N
t ,i'r "o /, drglarri ~ Ia III,
nremp law of the laud, anything IN The con
stItutiou or laws of any state 10 TIA Goa
trary Notwithstanding,