Elkins v. City of Chicago

Citations

• 119 F. 957
• 1902 U.S. App. LEXIS 5356

Syllabus

<p>1. Federal Courts — Jurisdiction — Diversity of Citizenship—Suit by Stockholder.</p> <p>In a bill filed in a federal court by a stockholder to enforce rights which may properly be asserted by the corporation, allegations which do no more than to show a formal demand on the board of directors to bring the suit, and a formal refusal, with a further general allegation that the suit is not a collusive one to confer jurisdiction, are not a sufficient compliance with equity rule 94; and the court is without jurisdiction on'the ground of diversity of citizenship where the corporation which is made a defendant is, for jurisdictional purposes, a citizen of the same state as the other defendants.</p> <p>2, Same—Federal Question—Threatened Legislation Impairing Contract.</p> <p>Under the settled doctrine that the courts can only deal with the question of the constitutionality of a legislative act after it has been passed, and are without jurisdiction to interfere with proposed or pending legislation, either state or municipal, the action of a city council in adopting the report of a committee finding that the franchise of a street railway company will expire at a certain time, contrary to the contention of the company, and recommending that the council take measures to dispossess the company at the expiration of such time unless there is a previous renewal, does not give a federal court jurisdiction of a suit to determine the controversy between the company and the city in respect to the term of the grant, on the ground that it presents a constitutional question as to the impairment of the contract rights of the company.</p> <p>B. Equity—Amendment of Bill.</p> <p>A city ordinance requiring a street railroad company to give transfers from one to another of two railway systems, both of which it operated as-lessee, does not give any right of action against the city in favor of a stockholder of one of the lessor companies, where it does not appear that such company has any inte