Woodward v. Commonwealth

Decision Date17 December 1887
Citation7 S.W. 613
PartiesWOODWARD v. COMMONWEALTH.
CourtKentucky Court of Appeals

Appeal from circuit court, Jefferson county.

James Woodward was indicted and convicted, under section 8, act Ky March 2, 1860, (Myer, Supp. 228,) for having acted as agent of the Adams Express Company without having any license from the auditor; from which verdict he appealed.

Hallam & Myers, for appellant.

Helm &amp Bruce, for appellee.

HOLT J.

The legislature on March 2, 1860, passed the following act "An act to regulate agencies of foreign express companies.

"Section 1. Be it enacted by the general assembly of the commonwealth of Kentucky that it shall not be lawful, after the first day of May, 1860, for any agent of any express company, not incorporated by the laws of this commonwealth, to set up, establish, or carry on the business of transportation in this state, without first obtaining a license from the auditor of public accounts to carry on such business.

"Sec. 2. Before the auditor shall issue such license to any agent of any company incorporated by any state of the United States, there shall be filed in his office a copy of the charter of such company, and a statement made, under oath of its president or secretary, showing its assets and liabilities, and distinctly showing the amount of its capital stock, and how the same has been paid, and of what the assets of the company consist, the amount of losses due and unpaid by said company, if any, and all other claims against said company, or other indebtedness, due or not due; and such statement shall show that the company is possessed of an actual capital of at least $150,000, either in cash or in safe investment, exclusive of stock notes. Upon the filing of the statement above provided, and furnishing the auditor with satisfactory evidence of such capital, it shall be his duty to issue license to such agent or agents as the company may direct to carry on the business of expressing or transportation in this state.

"Sec. 3. Before the auditor shall issue license to any agent of any express or transportation company incorporated by any foreign government, or any association or partnership acting under the laws of any foreign government, there shall be filed in his office a statement setting forth the act of incorporation, or charter, or the articles of association, or by-laws, under which they act, and setting forth the matters required by the preceding section of this act to be specified; and satisfactory evidence shall be furnished to the auditor that such company has on deposit in the United States, or has invested in the stock of some one or more of the United States, or in some safe dividend paying stocks in the United States, the sum of $150,000, which statement shall be verified by the oath of the president of such company, its general agent in the United States, or the agent applying for such license; and upon due filing of such statement, and furnishing the auditor with satisfactory evidence of such deposit or investment, it shall be his duty to issue such license to the agent or agents applying for the same.

"Sec. 4. The statements required by the foregoing sections shall be renewed in each year thereafter, either in the months of January or July; and the auditor, on being satisfied that the capital or deposit, consisting of cash securities or investments as provided in this act, remain secure to the amount of $150,000, shall renew such license.

"Sec. 5. Every agent obtaining such license, or renewal thereof, as required by this act, shall, before transacting any business of transportation or expressing in this state, file in the office of the clerk of the county court in which he or they may desire to do business for said company, a copy of the statement required to be filed with the auditor, and a copy of the license, which shall be carefully preserved by the clerk for public inspection; and, in case of a renewal, shall, in like manner, file in the office of a clerk of the county court a copy of such renewed statement and license, within thirty days after it shall be filed with the auditor.

"Sec. 6. The statements required by the foregoing sections shall be made up to a period within six months preceding the filing of the same with the auditor.

"Sec. 7. If, at any time after the filing of the statements by this act required, it shall be made to appear to the auditor that the available capital of any such company has been reduced, by misfortune or otherwise, below the sum of $150,000, it shall be his duty to revoke the license or licenses granted to any agent or agents of such company.

"Sec. 8. Any person who shall set up, establish, carry on, or transact any business for any transportation or express company not incorporated by the law of this state, without having obtained license, as by this act required, or who shall in any way violate the provisions of this act, shall be fined for every such offense not less than one hundred nor more than five hundred dollars, at the discretion of a jury, to be recovered as like fines in other cases: provided, that it shall and may be lawful for any person who has a right of action that has accrued in this state against such foreign transportation or express company, to sue any such company in any county in this state where its agent may be found: provided, further, that nothing contained in this act shall be construed to release said company from liability as common carriers.

"Sec. 9. For any license issued by the auditor under this act, and for each renewal thereof, he shall be allowed the sum of $2.50, to be paid by the agent or company taking out such license.

"Sec. 10. This act shall not apply to any express or transportation company wholly composed of residents of this state, or to any corporation chartered by this state, except to impose the liabilities of a common carrier; nor shall it apply to any person engaged in the ordinary business of transportation as common carrier or otherwise. This act to be in force from its passage."

Myer, Supp. 228.

The appellant, James Woodward, was indicted and convicted in the Jefferson circuit court, under the eighth section, for having, during 1886, acted as the agent at Louisville, Ky. of the Adams Express Company, a corporation not created by the laws of this state, without having any license to do so from the auditor.

It is urged, first, that the law is unconstitutional, and therefore void, because it discriminates against non-residents. The constitution of the United States declares that "the citizens of each state shall be entitled to all the immunities of citizens in the several states." But a corporation is but a creature of the local law. It has no absolute right of recognition in any state save that of its creation. It has no extraterritorial operation, save by comity. The validity of its action, the exercise of any right whatever by it, indeed, even the recognition of its existence, in any other state, depend altogether upon its will and consent. One state cannot force its artificial creature into another. If it could, it would thereby transport its laws for the government of another equal state. If the corporation be accorded any rights appertaining to citizenship in another state, it is by its sanction, either express or implied. It may forbid its presence altogether; and it therefore follows, of course, that it may impose such restrictions as it chooses, provided they are not open to constitutional objection. The "immunities" secured by the organic law to the citizen of one state in the other states are such privileges as are common to the citizens of the latter states under their laws, and do not embrace special privileges created by his local law and enjoyed by him at home. Nor does the term "citizen," as used in the constitution, include corporations. This is, therefore, not a case where a state has imposed a burden upon the citizens of another state not borne by its own. This rule has been declared not only by this court, but also by the supreme court of the United States. Insurance Co. v. Com., 5 Bush, 68; Paul v. Virginia, 8 Wall. 168; Doyle v. Insurance Co., 94 U.S. 535.

It is next said that the act above cited has been repealed; but, even if this be not so, that then its proper construction only requires the company, and not each of its agents, to obtain a license; and that the legislature by subsequent legislation has placed this construction upon it. In support of these positions we are referred to the following sections of the act of February 20, 1864, entitled, "An act to tax railroads, turnpike roads, and other corporations in aid of the sinking fund:"

"Sec 6. That it shall be the duty of the treasurer, secretary, agent, or superintendent of any express company doing business in this state to report to the auditor of public accounts, on or before the 15th day of July, 1864, and on each succeeding 15th day of July thereafter, a full and comprehensive statement of the business of the company, within the state, for the twelve months next preceding; and shall, on or before the 10th day of October following, pay into the treasury a tax of six per cent. upon the net profits of the business done by it within this state.

"Sec 7. That if any of the officers mentioned in sections fifth and sixth of this act shall fail or refuse to report to the auditor of public accounts, as therein required, that such officer shall be liable to a fine of one thousand dollars for each month he may so fail to report, which fine or fines shall be recoverable upon motion in the Franklin circuit court; and any...

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