State of New York v. United States Lehigh Valley Co, No. 283

• Court: United States Supreme Court
• Writing for the Court: TAFT
• Citation: 66 L.Ed. 385,42 S.Ct. 239,257 U.S. 591
• Docket Number: No. 283
• Decision Date: 27 February 1922
• Parties: STATE OF NEW YORK et al. v. UNITED STATES et al., Interstate Commerce Commission (LEHIGH VALLEY R. CO. et al., Interveners)

257 U.S. 591 42 S.Ct. 239 66 L.Ed. 385 STATE OF NEW YORK et al.

v.

UNITED STATES et al., Interstate Commerce Commission (LEHIGH VALLEY R. CO. et al., Interveners).

No. 283. Argued Oct. 19 and 20, 1921. Decided Feb. 27, 1922.

Page 592

Mr. Edward G. Griffin, of Albany, N. Y., for appellants.

[Argument of Counsel from pages 592-597 intentionally omitted]

Page 597

Messrs. Walter C. Noyes, of New York City, Alfred P. Thom, of Washington, D. C., Richard W. Barrett and George F. Brownell, both of New York City, P. J. Farrell, of Washington, D. C., William S. Jenney and C. L. Andrus, both of New York City, for appellees Railroads.

Mr. John E. Benton, of Washington, D. C., for 45 States, amici curiae.

Mr. Patrick J. Farrell, of Washington, D. C., for Interstate Commerce Commission.

Mr. Chief Justice TAFT delivered the opinion of the Court.

This was a bill in equity against the United States and the Interstate Commerce Commission and others brought by the State of New York and its Attorney General to annuland enjoin the enforcement of an order of the Interstate Commerce Commission requiring the interstate railroads operating in intrastate commerce in the State of New York to charge in such commerce 3.6 cents a mile for all passengers, 20 per cent. increase over the then excess baggage rates to intrastate passengers, a surcharge of 50 per cent. of the charges for space in sleeping cars

Page 598

to such passengers, and 20 per cent. increase in intrastate rates on milk, all for the purpose of bringing the intrastate rates to the level of the interstate rates previously fixed by the Commission. The bill was filed under, and by virtue of, the statute repealing the Commerce Court Act and conferring jurisdiction on the District Court. 38 Stat. 219. The application for an interlocutory injunction was heard by a Circuit Judge and two District Judges. Then a final hearing was had, and the court entered a final decree dismissing the complaint from which this appeal has been taken. The railroad companies affected by the order were on their petition permitted to intervene, and are here as appellees.

It appears from the record that in the proceeding by the Interstate Commerce Commission to fix interstate commerce rates to comply with the requirements of section 15a of the Interstate Commerce Act, as added by section 422 of the Transportation Act of 1920, 41 Stat. 488—a proceeding known as Ex parte 74, Increased Rates, 58 Interst. Com. Com'n R. 220—the Commission, after conference with a committee representing all the state commerce commissions ana authorities authorized the group of intrastate railroads, of which the railroads operating in New York were a part, to raise their freight rates 40 per cent., their passenger rates and excess baggage charges 20 per cent., and to add a surcharge of 50 per cent. for passengers on sleeping cars. As soon as the order in Ex parte 74 was made, the railroads concerned applied to the Public Service Commission of the State of New York for similar increases in intrastate rates. That Commission granted the increase in freight rates, but denied it as to milk rates and passenger fares. The passenger intrastate fares were 3 cents a mile under the order of the President during the war control, but when that should become ineffective, a statute of New York fixing passenger fares on the New York Central Railroad from albany to Buffalo at two

Page 599

cents a mile would come into force and operation. As soon as the state commission made its ruling, the railroads applied to the Interstate Commerce Commission under section 13 of the act of which proceeding notice was given to the state of New York, the Attorney General and the Public Service Commission, all of whom appeared, for an order directing the railroads to put intrastate passenger fares, excess baggage charges, sleeping car surtaxes and milk rates on the same level with interstate rates. Proof was offered by the railways to show that conditions of operation in state and interstate...