The people's voice. [volume] (Helena, Mont.) 1939-1969, 1945-01-26
TRAMP CORPORATIONS

Istockholder in New Jersey tramp
corporation is citizen of Montana
the corporation itself is presumed to
be citizen of New Jersey.
The fruit of this false fiction is that
the tramp can remove all serious liti.
cation against itself to he federal
courts. And l quote Chief Justice
Taft
"The federal courts have protected
capital in the southern and western
states for a generation"
Thus a farmer in Townsend enter
ing contract with the Montana Pow
er Company may find his contract
judged by the laws of New Jersey.
A Montana widow, suing for pay
ment for an insurance policy on her
husbands life, issued by the New
York Life Insurance Company, will
find her case soon in the federal
courts, and her rights judged by New
York law. And in the federal courts,
she cannot get verdict unless all
II jurors agree, while in Montana
court eight jurors agreeing may bring
in a verdict
The federal courts were organized
to protect weak litigants from the
strong. The artificial person we call
a private corporation was not heard of
until 30 years after 1889, when the
federal constitution was ratified. The
first tricky lawyer to invent the tramp
corporation was unborn when the
authors of our basic law decided on
erecting national courts where a poor
citizen of Maryland could have an
equal break against a wealthy Vir-
ginia planter. The tribunals formed
to protect the humble stranger in his
rights, due to the packing for 60 years
Of federal courts with corporation
lawyers as life tenure judges, has
served, and in some sections still
serves, as the arcanum the high
stone walled inner fort of entrenched
wealth against just demands of the
ordinary litigant, or, as President
(also Chief Justice) Taft put it, "pro-
Lected capital"
Another advantage tramp corpora
ion has in the federal courts is the
power to delay justice. Justice may
ilso be made so costly as to amount
% denial. Large tramp corpora
ions frequently seek these advan-
ages of the federal courts. A local
is as good as any:
Mrs. Stella Gamer sued the New
York Life Insurance Company, and
he Prudential (the familiar old Rock
Of Gibraltar) ON respective insurance
policies on her husbands life. New
York Life does business in Montana
rs tramp corporation of New York
similarly a tramp" from
New Jersey. Both cases got into the
ederal court Bourquin decided
Igainst Mrs. Gamer Her lawyers
Carl Christian and William Meyer
ppealed to the circuit court of APP
eals-this costs usually above $1,000,
xclusive of attorneys fees. That
ourt held for Mrs Gamer. The COM
anies appealed to the United States
lpreme court. Curious to relate,
.ss expensive in actual court costs
ian the appeal to the circuit court of
ppeals.
Self respecting lawyers do not ap-
ear in that court for less than $1,000,
though at times, like Wendell Will
lie in a celebrated case, for no fee
ALL
The supreme court reversed Mrs.
Iamer's decision gained in San Fran
isco, but not on the grounds Bour-
uin assigned There was another
rial before Baldwin. Mrs. Gamer
ION.
The insurance companies appealed
} San Francisco. They lost They
len sought review again in Washing
IN, and were finally beaten. Mrs.
amer got her money, but travel ex-
snses of lawyers are never allowed
! court costs. Her attorney made at
asst two trips from here to San Fran
SEQ; one, perhaps two, trips to
ashington. When the costs were
cured, no attorneys fees, except a
1iculous $4,000 in each court-per-
FPS $4,000 in all, was allowed Mrs.
amer had to pay the rest of her at
rneys' fees herself The contest
sted probably seven years. Walter
amer, when he bought the policies,
obably thought it would educate his
lighter. Perhaps the money did not
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