Delaware Co v. United States

• Decision Date: 05 January 1925
• Docket Number: No. 212,212
• Citation: 266 U.S. 438,69 L.Ed. 369,45 S.Ct. 153
• Parties: DELAWARE & H. CO. et al. v. UNITED STATES et al
• Court: U.S. Supreme Court

266 U.S. 438

45 S.Ct. 153

69 L.Ed. 369

DELAWARE & H. CO. et al.

v UNITED STATES et al.

No. 212.

Argued Nov. 19, 1924.

Decided Jan. 5, 1925.

Messrs. H. T. Newcomb and Walter C. Noves, both of New York City, for appellants.

[Argument of Counsel from pages 438-443 intentionally omitted] Mr. Blackburn Esterline, of Washington, D. C., for the United States.

[Argument of Counsel from pages 443-445 intentionally omitted] Mr. P. J. Farrell, of Washington, D. C., for Interstate Commerce commission.

Mr. Justice McREYNOLDS delivered the opinion of the Court.

Appellants are proprietors of the railroads which make up the system now operated by the Delaware & Hudson Company. Purporting to proceed as required by section 19a, Interstate Commerce Act, as amended (Act March 1, 1913, c. 92, 37 Stat. 701; Act Feb. 28, 1920, c. 91, 41 Stat. 456, 493; Act June 7, 1922, c. 210, 42 Stat. 624 [Comp. St. Ann. Supp. 1923, § 8591]), the Interstate Commerce Commission, on March 28, 1923, declared tentative valuations of the properties which the several companies owned June 30, 1916, and allowed 30 days from April 12th for protests.

Elaborate protests were duly presented. Before they were acted upon appellants began this proceeding—June 13, 1923—wherein they claim that defects in the valuation order prevented them from adequately protecting their rights by protests, and pray that it be annulled. The petition states that the Commission refused to investigate, ascertain, and report many facts relative to values as required by the statute; refused to investigate, ascertain, and report concerning properties used by the Delaware & Hudson Company for purposes of a common carrier; refused to apply to inventories prices existing and current on June 30, 1916; omitted to report analyses of the methods employed for ascertaining values, costs, etc.; also omitted to investigate and report the amount of working capital actually used for purposes of common carriers.

Upon motion the petition was dismissed for want of equity, and the matter is here by direct appeal.

Section 19a of the Interstate Commerce Act, as amended, provides:

'(a) That the Commission shall, as hereinafter provided, investigate, ascertain, and report the value of all the property owned or used by every common carrier subject to the provisions of this act. * * *

'(b) First. In such investigation said Commission shall ascertain and report in detail as to each piece of property, other than land, owned or used by said common carrier for its purposes as a common carrier, the original cost to date, the cost of reproduction new, the cost of reproduction less depreciation, and an analysis of the methods by which these several costs are obtained, and the reason for their differences, if any. The Commission shall in like manner ascertain and report separately other values, and elements of value, if any, of the property of such common carrier, and an analysis of the methods of valuation employed, and of the reasons for any differences between any such value, and each of the foregoing cost values.

'Second. Such investigation and report shall state in detail and separately from improvements the original cost of all lands, rights of way, and terminals owned or used for the purpose of a common carrier, and ascertained as of the time of dedication to public use, and the present value of the same.

'Third. Such investigation...