Trester v. Missouri P. R. Co.

49 N.W. 1110, 33 Neb. 171, 1891 Neb. LEXIS 148
CourtNebraska Supreme Court
DecidedOctober 7, 1891
StatusPublished
Cited by15 cases

This text of 49 N.W. 1110 (Trester v. Missouri P. R. Co.) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Trester v. Missouri P. R. Co., 49 N.W. 1110, 33 Neb. 171, 1891 Neb. LEXIS 148 (Neb. 1891).

Opinion

Norval, J.

The Missouri Pacific Railway Company on the 17th day of October, 1885, filed in the county court of Lancaster county its petition praying for the condemnation, for right of way purposes, of a strip 100 feet in width across the north half of the southeast quarter of the northeast quarter of section 24, town 10, range 6 east. The county judge appointed six disinterested freeholders, residents of said county, to assess and report the damages sustained by Milton L. Trester, the owner of said real estate, by reason of the location of the railroad. The damages assessed and reported by the commissioners amounted to $2,500. An appeal was taken by the land-owner to the district, court, where the railway company filed a petition for removal of the cause to the circuit court of the United States for- the district of Nebraska, on the ground that it was a citizen of the state of Missouri, and the owner of the land was a citizen and resident of this state. The district court approved the bond, which accompanied the application, and made an order removing the cause to the federal court. Subsequently Trester filed in the court below a motion to vacate the order of removal, and to redocket the case for trial. The motion being denied, Trester prose[176]*176cuted a petition in error to this court, and at the January terna, 1888, the order of the district court was reversed, and the cause remanded, with directions to reinstate the cause, and dismiss the proceedings for want of jurisdiction. (See 23 Neb., 242.)

A motion for a rehearing was made by the railroad company, on consideration whereof it was adjudged by the court that the former judgment of this court be vacated and set aside, and the decision of the district court was reversed, and the cause remanded for further proceedings. In obedience to the mandate of this court, the case was tried, and a verdict was returned in favor of the plaintiff in error for $3,100.

On the motion for a rehearing, no opinion was filed. The legal effects of the decision, however, was to overrule the former opinion in so far as it held that the condemnation proceedings were void, and that neither the county judge nor the district court had jurisdiction to take any action in the matter. In the opinion filed it was rightly ruled that, under the provisions of our constitution, a railroad company not incorporated under the laws of this state cannot exercise the right of eminent domain. If, therefore, the defendant was not a domestic corporation when it filed its petition in the county court, it acquired no right to the plaintiff’s property by the condemnation proceedings, and the plaintiff could not recover compensation for the property attempted to be taken for right of way purposes, and the entire proceedings would be a nullity. The opinion filed, in declaring the condemnation proceedings void, was based upon the assumption that the defendant was not a domestic corporation. In other words, that the petition for removal conclusively established that the defendant was a foreign corporation. From the fact that the defendant alleged, in its petition for removal of the cause from the state court to the circuit court of the United States, that the defendant was a citizen and resident of an[177]*177other state, it could not be conclusively presumed that it was a foreign corporation no more than the allegation in the motion of the plaintiff to vacate the order of removal, that “the defendant railway company is not a non-resident corporation, but is a company formed by the consolidation of a Missouri corporation, a Kansas corporation, and a Nebraska corporation” estopped the plaintiff from subsequently denying that the defendant is a domestic corporation. Whether a railroad company, which has sought to acquire private property for right of way purposes by condemnation proceedings, instituted under the statutes, is a foreigu or domestic corporation is to be determined in the same manner as any other question of fact.

One of the issues presented and tried in the lower court, after the reversal of the cause, was whether the defendant was a Nebraska corporation. Upon that question the parties changed positions, the plaintiff in error in his petition alleging that the defendant company is a non-resident corporation, which averment is denied by the answer. The proofs show that the certificate of organization of the Missouri Pacific Railway Company of Nebraska, and the articles of incorporation of said company were filed and recorded in the office of the county clerk of Douglas county, and subsequently in the year 1882 certified copies thereof were filed for record in the office of the secretary of state of Nebraska, whereby the Missouri Pacific Railway Company of Nebraska became a body corporate, pursuant to. and in accordance with the laws of this state.

On the 14th day of February, 1882, the Missouri Pacific Railway Company of Nebraska and the Missouri Pacific Railway Company, a corporation formed by consolidation of other companies, pursuant to the laws of Missouri and Kansas, entered into articles of consolidation, whereby the two companies were consolidated under the corporate name of the Missouri Pacific Railway Company. These articles of consolidation were ratified and [178]*178approved by the stockholders of the respective companies, who owned and represented two-thirds of all the capital stock. The articles of consolidation, together with the written ratification and approval thereof by the stockholders, were filed for record in the office of the secretary of state on the 3d day of March, 1882. It is unnecessary to state the terms of consolidation, nor discuss the sufficiency of the consolidation proceedings, for the reason that the same were before this court and fully considered in the case of the State v. M. P. Ry. Co., 25 Neb., 164. It was there held that, by virtue of such consolidation, the defendant became a domestic corporation. With that conclusion we are content. By the act of consolidation the two companies were ¡merged into the new corporation thus formed, and all the powers, rights, and franchises of the original corporations were transferred to the new company. That the corporate name adopted for the new company is the same as that of ■one of the consolidating companies, which was organized under the laws of another state, did not make the new corporation a foreign corporation.. The consolidated company has a separate and distinct coi’porate existence in «each of the states through which the road is located, and while it has but one board of directors, so much of the road and property of the company as is, in this state is governed and controlled by the laws of the state. It has the same power to acquire real estate in this state, by the right of eminent domain, as if it had been originally incorporated in this state.

In State v. C., B. & Q. R. Co., 25 Neb., 156, Chief Justice Reese, referring to section 114, chapter 16, Compiled Statutes, in the opinion observed that this section, in •effect, provides that where a domestic corporation — that is, one organized under the laws of this state, and having its existence solely within this state — becomes consolidated with a corporation originally erected in another state, 4he new corporation is entitled to exercise the sanie rights [179]*179and is subject to the same restrictions and'liabilities as the original corporation in this state before the consolidation.

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Bluebook (online)
49 N.W. 1110, 33 Neb. 171, 1891 Neb. LEXIS 148, Counsel Stack Legal Research, https://law.counselstack.com/opinion/trester-v-missouri-p-r-co-neb-1891.