William Henry Moody

“ The right to bring a suit is entirely distinguishable from the right to prosecute the particular bill. One goes to the maintenance of any action; the other to the maintenance of the particular action. Thus it was held in the case of Smith v. McKay, 161 U.S. 355, 40 L. ed. 731, 16 Sup. Ct. Rep. 490, and Blythe v. Hinckley, 173 U.S. 501, 43 L. ed. 783, 19 Sup. Ct. Rep. 497, that it was not a question of the jurisdiction of the circuit court that the action should have been brought at law instead of in equity. ”

“ It is argued that a compliance with that rule is essential to the jurisdiction, and that a controversy of the general nature contemplated by the rule is beyond the jurisdiction of the circuit court unless the plaintiff shows the existence of all the facts which the rule makes indispensable to his success in the suit. ”

“ In that case the plaintiffs, stockholders in a corporation, brought an action in the circuit court against the corporation and Harrington, another stockholder, 'who directed the management of the affairs of the corporation, dictated its policy, and selected its directors.' It was alleged that Harrington fraudulently caused the corporation to make its promissory note without consideration, obtained a judgment on the note, and sold, on execution, for much less than their real value, the assets of the corporation to persons acting for his benefit. ”

“ Second, because the cause of action, as disclosed by the pleadings, showed that the circuit court had no jurisdiction over the subject-matter. These reasons are entirely independent of each other and require separate consideration. First, was there a controversy between citizens of different states? As the parties were arranged by the plaintiff himself, on the face of the record there was a diversity of citizenship. The plaintiff was a citizen of New York and the two defendants were citizens of Minnesota. ”

“ The railroad refused to comply with this demand, and thereupon the plaintiff brought this suit as a stockholder, in his own behalf, and in the behalf and for the benefit of other stockholders similarly situated. The prayer was that Hill should account for his profit and pay it to the Great Northern Railway Company with interest, and for general relief. On the defendants' petition the case was removed to the United States circuit court for the southern district of New York, on the ground of diversity of citizenship of the plaintiff and the defendants. ”

“ Rep. 259; Merchants' Cotton Press Storage Co. v. Insurance Co. of N. A. 151 U.S. 368, 385, 38 L. ed. 195, 204, 4 Inters. Com. Rep. 499, 14 Sup. Ct. Rep. 367; Evers v. Watson, 156 U.S. 527, 532, 39 L. ed. ”