“ Further, that the sale under the decree in the circuit court of the United States foreclosing the second mortgage did not, under §§ 697, 698 of the Code of North Carolina, make the purchaser a domestic corporation, and that, in order to have the effect to dissolve the mortgagor corporation as provided in § 697 of the Code, another corporation must be provided, as contemplated in § 1936 of the Code, to take its place and to assume and discharge the obligations to the public growing out of the franchise, and until that is done the old corporation will continue to exist. ”

“ It is urged that the supreme court of North Carolina, by a course of decisions antedating the mortgage and foreclosure, had established the rule of law contended for as to the continuing liability of a railroad corporation unless a domestic corporation is organized to own and operate the property. ”

“ It is conceded that the Federal right could be set up in the state court from which the execution issued, and, if denied, the ultimate rights of the parties can be determined upon writ of error to this court. In the view we have taken of this case the Federal court had not lost its jurisdiction to protect the purchaser at its sale upon direct proceedings such as are now before us. ”

“ American & Foreign Christian Union v. Yount, 101 U.S. 352-354, 25 L. ed. 888-890. This principle is not qualified because the right of removal of suits for diverse citizenship still exists, as was held in Southern R. Co. ”