Oregon Short Line & Utah Northern Railway Co. v. Skottowe

162 U.S. 490, 16 S. Ct. 869, 40 L. Ed. 1048, 1896 U.S. LEXIS 2226
CourtSupreme Court of the United States
DecidedApril 20, 1896
Docket147
StatusPublished
Cited by41 cases

This text of 162 U.S. 490 (Oregon Short Line & Utah Northern Railway Co. v. Skottowe) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Oregon Short Line & Utah Northern Railway Co. v. Skottowe, 162 U.S. 490, 16 S. Ct. 869, 40 L. Ed. 1048, 1896 U.S. LEXIS 2226 (1896).

Opinion

Me. Justice Shieas,

after stating the case, delivered the opinion of the court.

In the complaint the defendant was described as “a corporation duly organized, existing and doing business in the State of Oregon.” The accident which caused plaintiff’s injuries was alleged to have taken place at The Dalles on the Columbia Fiver, and within the State of Oregon.

In the removal petition the defendant was alleged to be a consolidated company, composed of several railway corporations severally organized and created under the laws of the Territories of Utah and Wyoming and of the State of Nevada, and under an act of Congress, approved August 2,1882, c. 372, 22 Stat. 185, entitled “ An act creating the Oregon Short Line Railway Company, a corporation in the Territories of Utah, Idaho and Wyoming, and for other purposes,” and an act of Congress, approved June 20,1878, c. 352, 20 Stat. 241, making the Utah and Northern Railway Company, a railway corporation in the. Territories of Utah, Idaho and Montana.

It was not claimed, either in the petition for removal or in the answer subsequently filed, that the defendant company had any special defence arising under the acts of Congress, which *494 constituted a Federal question over which the courts of the United States had exclusive jurisdiction; but the contention is that if any of the corporate powers of a railroad company depend upon the legislation óf Congress, the right of removal exists.

Congress has frequently conferred upon railway companies, existing under territorial or state laws, additional corporate franchises, rights and privileges, and its right to do so cannot be doubted. Thus it was held, in California v. Pacific Railroad Company, 127 U. S. 1, 39, that Congress possessed and validly exercised the power to create a system of railroads con--necting the East with the Pacific coast, traversing States as well as Territories, and to employ the agency of state as well as Federal corporations. •

And it must also be conceded that it was decided in the Pacific Railroad Removal cases, 115 U. S. 1, that where corporations created by acts of Congress have become consolidated with state corporations, and where “ the whole being, capacities, authority and obligations of companies so consolidated are so based upon, permeated by and enveloped in the acts of Congress that it is impracticable, so far as the operations and transactions of the companies are concerned, to disentangle their qualities and capacities which have their source and foundation in these acts from those which are derived from state or territorial authority,” that suits by and against such corporations are “suits arising under the laws of the United States,” and removable as suqh from state courts into Circuit Courts of the United States.

Even, if the acts of Congress of June 20, 1878,-and August 2, 1882, so far conferred substantial rights, and privileges upon the territorial and state corporations, consolidated as the Oregon Short Line and Utah Northern Railway Company, as to bring that company within the doctrine of the Pacific Railroad Removal cases, yet we think that the present-case comes within the rule that the Federal question,.or the Federal character of the defendant company, must appear from the complaint in the action in order to justify a removal, and that such Federal question or character does not so appear.

*495 There is no propriety in further considering that rule, because the reasons of it were fully set forth in the case of Tennessee v. Union & Planters' Bank, 152 U. S. 454, and again in the very recent cases of Chappell v. Waterworth, 155 U. S. 102; East Lake Land Co. v. Brown, 155 U. S. 488; and Postal Tel. Cable Co. v. Alabama, 155 U. S. 482.

The conclusion reached in those cases may be briefly stated ■thus: Under the acts of March 3, 1887, c. 373, 24 Stat: 552, and August 13,1888, c. 866, 25 Stat. 433; a case (not depending on the citizenship of the parties, nor otherwise specially provided for) cannot be removed from a state court into the Circuit Court of the United States, as one arising under the .Constitution, laws or treaties of the United States,'unless that appears by the plaintiff’s statement of his own claim; and that, if it does not so appear, the want cannot be supplied by any statement -in the petition for removal or in the subsequent pleadings.

The counsel for the plaintiff in error do not seek, as we understand them, to obtain a reconsideration of this question, but they advance. an ingenious argument to distinguish the present from those cases. It is .claimed that when a bill of complaint or declaration alleges that the defendant is an incorporated company it thereby tenders, or implicitly alleges, the charter or articles of incorporation of the corporation, including all these statutes and grants of power under and by virtue of which it acquired the right to become a corporation and to exercise corporate powers and privileges. In the words of the plaintiff’s brief: “ It must be held that the complaint alleges all these facts which it would be necessary for the plaintiff to prove were each and every allegation of the complaint denied by answer. For the purposes of determining as to whether or not the defendant could remove on the ground that the suit was.one arising under the Constitution and laws of the United States (as the petition for removal must be filed on or before the answer day), it must be assumed that the cause of action upon which the suit is brought arises upon all the facts which it would be necessary for the plaintiff to prove to maintain his oause of action, and among the most *496 important of those facts are the corporate existence, the corporate character, and the corporate powers of the defendant company.”

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Bluebook (online)
162 U.S. 490, 16 S. Ct. 869, 40 L. Ed. 1048, 1896 U.S. LEXIS 2226, Counsel Stack Legal Research, https://law.counselstack.com/opinion/oregon-short-line-utah-northern-railway-co-v-skottowe-scotus-1896.