The judicial power of the United States, as created by the
Constitution and provided for by Congress pursuant to its
constitutional authority, is a power wholly independent of state
action, and which therefore the several states may not, by any
exertion of authority in any form, directly or indirectly, destroy,
abridge, limit or render inefficacious.
Harrison v. St. Louis
& San Fran. R. Co., 232 U. S. 318.
A state may not prevent foreign commercial corporations doing
local business from exercising their constitutional right to remove
suits into federal courts.
Section 1770f, added June 20, 1905, to the Statutes of Wisconsin
of 1898, providing for the revocation of the licenses of any
foreign corporation to do business within the state in case it
removes, or makes application to remove, any action commenced
against it by a citizen of that state into a federal court is
unconstitutional as beyond the power of the state.
219 F. 199, affirmed.
The facts, which involve the validity under the federal
Constitution of a statute of Wisconsin providing for revocation of
licenses granted to corporations not organized under the laws of
that state in case they remove into the federal courts actions
commenced against them by citizens of the state on causes of action
arising in the state, are stated in the opinion.
Page 241 U. S. 331
MR. JUSTICE McREYNOLDS delivered the opinion of the Court.
These appeals bring up for consideration the validity of a
Wisconsin statute providing for revocation of licenses granted to
corporations not organized under the laws of that state. They were
heard together, and to dispose of them by one opinion will be
convenient.
Terms and conditions upon which foreign corporations might do
local business, and penalties for failure to comply therewith, were
first prescribed by the Legislature of Wisconsin in 1898.
Amendatory and supplemental statutes were enacted, and finally the
Act of June 20, 1905, added four new sections to the statutes of
1898, one of which follows:
"Sec. 1770
f. Whenever any foreign corporation doing
business in this state shall remove or make application to remove
into any district or circuit court of the United States any action
or proceeding commenced against it by any citizen of this state,
upon any claim or cause of action arising within this state, it
shall be the duty of the secretary of state, upon such fact being
made to appear to him, to revoke the license of such corporation to
do business within this state."
Since 1860, the Western Union Telegraph Company, a
Page 241 U. S. 332
New York corporation, has been continuously carrying on within
Wisconsin both intra- and interstate commerce, and for use therein
has acquired and owns a large amount of property. In 1907, it filed
with the secretary of state a copy of its charter, paid the
prescribed fee, and took out a license to do intrastate
business.
The Philadelphia & Reading Coal & Iron Company, a
Pennsylvania corporation, since prior to 1898, within Wisconsin has
been continuously shipping and selling coal both in intrastate and
interstate commerce, and for use therein has purchased at great
expense docks and other properties. Having paid required fees and
filed its charter with the secretary of state, it received a
license November 10, 1898.
The Western Union Telegraph Company removed to the United States
district court a civil suit begun against it in the Circuit Court,
Dane County, Wisconsin, during 1911, and in 1912, an action against
the Philadelphia & Reading Coal & Iron Company was likewise
removed. Averring that, so far as the same directs or attempts to
direct annulment of its right to do business, § 1770
f,
above quoted, is in conflict with the federal Constitution, each of
the appellees filed an original bill praying an injunction
restraining the secretary of state from revoking its license
because of such removal. The lower court sustained the claim of
unconstitutionality (216 Fed.199), granted preliminary injunctions,
and these direct appeals were taken.
Consideration of the Wisconsin statutes convinces us that they
seek to prevent appellees and other foreign commercial corporations
doing local business from exercising their constitutional right to
remove suits into federal courts. To accomplish this is beyond the
state's power. The action of the court below in holding §
1770
f inoperative, and enjoining its enforcement as to
appellees, was correct, and its decree must be affirmed.
Page 241 U. S. 333
We are asked in effect to reconsider the question discussed and
definitely determined in
Harrison v. St. L. & San Francisco
R. Co., 232 U. S. 318. We
there said (p.
232 U. S.
328):
"The judicial power of the United States as created by the
Constitution and provided for by Congress pursuant to its
constitutional authority is a power wholly independent of state
action, and which therefore the several states may not, by any
exertion of authority in any form, directly or indirectly, destroy,
abridge, limit, or render inefficacious."
Affirmed.
