UNITEDrBTATES V.SOUTHERN PAO. R. CO.
297
UNITED
SU'l'ES 'D. SOUTHERN' PAC.
R. Co.' et al.
(Oircuit COUrt. N. D. Catifornia. February 14, 1892.)
1.
CIRCUIT COURTs-J"URISDIdTION:.....PRESUMPTJONS.
, The federal circuit courts possess no powers except such as the constitution and acts of congress ooncur in conferring, lU1d' t1;1e presumption is ,th$t every is without their jurisdiction until the contrary affirmatively appears,
la.SAME-RBSIDENOE 011 PARTIDS,
Act Congo M:arch 8, re\l,uiring suits in w1:lich tbe federal jurisdictioD, founded only on diversIty of CItizenship to be brougbt in tbe distriot of the reSI"dence either of the plaintUf or the defendarit, does not apply to sUits brought by the "fede.r,al g,pvern,meI),t,s,ino.e,.itls present, ere,rywhere within the tern.toriall,iIl11,'ts, of ' the United States. ,.The only' restrictfonwith respect to such suit8 is tbat they sh81I'be brought irithe distriot1lf which the liefendant is au "inhabitant. " '
8; BAilIB.:..:oU1ZENSHIP OF CORPORA'l'IONs-"tWABITANOT."
: While, 'under tbe aotsrespecting of the federal courts. a corporation l'ja.!loitizen ", on,1,1 jot,' ,1;\1e state ulJder ""hose laws, it w,,as"o"gan,l,'zed, yet, wi. '. , rllllP,eAli" the In Which it may under Alit, Con,g. March 8, 188,7,' a Taili'da<l' 'or telegraplfcompany,chartered e,\h,er by a state or the United States, 'is an "itibiillitant" of any state itl which it Op8l11tes its lines and maintains offices f6r the traI),S8ction ,of business. " ' "
'
"
Suit by 'the United States against the Southern Pll.cifib the Southern Paci(lq'Company, the Atlantic & Pacifig Uni9n Telegraph Company. ,Heard on. ple"s,snd motion Overruled. Atty. Gen. Miller and Oharles H. AldrWh, for the United States. Tweed, J. Hubley Ashtnn, ,and Harvey S. Brnwn, for the SouthCompany and the Pacific Company. .' Pillabury, Blanding &: Ha:yne, Wm. a. Hazledine, and John J. McCook, for tbe Atlantic & Pacific Railroad Company. . ' Wager SuJq,yne andRuah Taggart, fo'rthe Western Union Telegraph Company. . . Circuit Justice. l This case is under submission on pleas and motions to dismiss, which contest the jurisdiction of this court to proceed in personam against such of the defendants, not corporations of California, as are not before the court otherwise than by service of pro;cess upon their agents in this district. On this question there is such conflictJn the decisions of the circuit courts that it is proper to examine it as if now for the first time presented. It depends upon the interpretationthat may be given to the act of March 3, 1887, defining the jurisdiction of the circuit courts of the United States. ,24 St. p. 552, c. 373;25 St. p. 433, c. 866. Before looking at the provisions oqhat act, it will well to inquire as to tbe nature of this suit. act of congress 'of' August 7, known as the "Telegraph Act," it is provided that all railroad and telegraph companies to which the United;Sta.tes has granted any subsidy in lands, bonds, or wan of credit, for the construction of eitherrailroad or telegraph lines, and which Jll8tice HARLAN heard this case under special commission issued by Mr. F'IBLD; pursuaIitto seotion617 of the Revised Statutes, and byconsent of the partiel.
InEqUity.
2Q8
FEDERA.L
vol, .49.
are required to construct, maintain, or operate telegraph lines, and all COUl panies ti;ng 8Q.Q!l. :telegraph: 1il!Jls"Shall forthwith and henceforward, by and through their Qwn respective corporate maintain aJid ope:rate, for railro.all. governmental, commercial, and all other purposes, telegraph lines, and exercise by themselves alone all the telegraph UP01;1 theman(i obligations by ,tilem under, the acts making,tbe grants, as aforellai1i.", 25 St. p. 882, e.:'1?2,§rl; 12, St.p.':489, c.12f);1:S;St.p. 356, c. 216.
This suit was brought'pursuant to 'that act, its fourth
!.hrhatln,Qrder tQ prel!el've to:i.heUnited Statlls'the full value and, beneJlt of -its ,liens upon all the ,telegraph lines required to be COIlby .iUld and tJ)e first to thlll\llme pOEll!lessed, used, and operatl'd in ot of the 8everalact8:to which tbis act,is:supple,mentary. it is hereby made the duty of eqijities i)ftlte;United States And, and u.nder alla-ets of congress relating to such railroads and telegraph lines,and,to,have legally ascertained and finally adjUdicated all alleged rights of all persons and corporatiQnllW a:fltIv.er.. .. . .. g..tp.,.a.. n.,y, m . '.. !l,ontrolor.. . re,st.9f . in. I,lDy telegravhjines or or rights Of way the lands ,of to have all contracts VISions otcontraetsse't'aslde and Which llave-bee,n unlawfully and beyond their powers entered into b)':llald ratlroad or telegraph companies,or any of tllemi'with iany otberperson; company, or corporation." n.,.
p'rbper'
prevent
'-'The 1lailroad under Jhe laws of CitlHorpia;
isacorphfatipn organized allege'd,ln tespect to its road; to 'rights $ranted; and: sUbject'toaU the conditions prescribed, b;ytbe, Ilbts of'Cb9$reSS relating to the Atlantic & cific RAilroad Company/and to be treated as if its railroad and telegraph line had been constructed as a part of the main line of that complmy. ' The Southern Pacific Company of Kentucky, but it has no propertydr busIness in that 8tt\tEl, nor or agerit there, except an assistant Clerk,bolding a' s'hbordinate positi6n, and maintained for the' pu,rpose of'pres6rviilg the charter of the companY' under the laws con-ipttn.y has a large 'amount ofpToperty in California, and is operating lines' of railroad' in. this district. Its general. offices are, and lior tnanyyeara bavebeen, hi8an Francisco, where its pl'ipcipal executive officers reside.l . The bill alleges that the So'u,the-rri Pacific Railto!ld Company claims to have transferred to this its property, ralll, pers()nal, and mixed. '.' .' ' The Atlantic & Pacifio 'Railroad Company is a corporatibn organized underaIl" act pf'congrells'approved July 27, 1866,with authority to construct '8 iofraiH:oad l and to on' its business, in 'po 292. Its general officers reside,here, this o('thissuit'itwas operating,Jits'railroad and and at maintaining'6fficesin,{)alffbrnia. ::: ; " ii'" i The Western Union Telegraph Company is a New York c01'Jl0ration, aJarge ill pp'erii\tng.1iIies of tel-
alltne