Hudson & Manhattan R. v. United States

28 F. Supp. 137, 1939 U.S. Dist. LEXIS 2518
CourtDistrict Court, S.D. New York
DecidedJune 21, 1939
StatusPublished
Cited by3 cases

This text of 28 F. Supp. 137 (Hudson & Manhattan R. v. United States) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hudson & Manhattan R. v. United States, 28 F. Supp. 137, 1939 U.S. Dist. LEXIS 2518 (S.D.N.Y. 1939).

Opinion

WOOLSEY, District Judge.

Our decision in this cause is that the complaint must be dismissed with costs to the defendants on the ground that the venue thereof is laid in the wrong district.

I. The plaintiff is a consolidated railroad corporation organized and existing under the laws of the States of New York and New Jersey. Its operating office is in the Southern District of New York. It maintains an underground electric transportation service for passengers under the Hudson River between designated points in the Borough of Manhattan, County and City of New York, and in the counties of Hudson and Essex, New Jersey.

II. On July 31, 1937, the plaintiff is'sued, published and filed with the Interstate Commerce Commission a proposed Local Passenger Tariff, designated as I. C. C. No. 42, which was to become effective on September 1, 1937, establishing, in lieu of the fare of 6 cents previously estab[139]*139lished, a fare of 10 cents for interstate transportation of passengers on the plaintiff’s downtown line, between the plaintiff’s downtown terminal at Hudson Terminal in Cortlandt Street, New York City, and plaintiff’s ' stations at Exchange Place, Grove and Hudson Streets, Journal Square and Erie Station, Jersey City, and Hobo-ken.

Plaintiff’s said Local Passenger Tariff, I. C. C. No. 42 did not make any change in the fare for interstate transportation on the plaintiff’s uptown line, previously established at 10 cents, or in the fare for intrastate transportation in the States of New York and New Jersey previously established at S cents.

On August 9, 1937, the City of Jersey City, and later other municipalities and citizens of the State of New Jersey, filed protests against the Tariff aforesaid.

There were not any persons or corporations residing in any district other than the District of New Jersey who filed any protest in respect of said Tariff before August 17, 1937.

On August 17, 1937, as a result of the New Jersey protests, the Interstate Commerce Commission entered an order captioned “Investigation and Suspension Docket, No. 4394, Passenger Fares Hudson & Manhattan R R”, which provided inter alia—

“It Appearing, That there has been filed with the Interstate Commerce Commission a tariff containing schedules stating new individual and joint fares and charges, and new individual and joint regulations and practices affecting such fares and charges, to become effective on the 1st day of September, 1937, designated as follows: Hudson & Manhattan Railroad Company: I. C. C. No. 42;
“It is ordered, that the Commission upon complaint, zvithout formal pleading, enter upon a hearing concerning the lawfulness of the fares, charges, regulations and practices stated in the said schedules contained in said tariff.”

This order for an investigation also contained further orders providing for the suspension of the operation of the proposed schedule of rates or any change of rates pending the said hearing and the decision of the Commission disposing thereof.

On July 11, 1938, the aforesaid proceeding resulted in a decision by the Interstate Commerce Commission holding that the 10 cent fare proposed by the schedule was excessive, but giving the railroad company the permission to charge an 8 cent fare. Passenger Fares of Hudson & Manhattan Railroad Company, 227 I. C. C. 741.

The Hudson & Manhattan Railroad Company has taken advantage of this permission and under it is now operating its downtown branch, allegedly at a loss, on an 8 cent fare basis.

III. The complaint in this cause was filed in this Court on February 21, 1939.

In addition to praying that a three judge court, consisting of at least one Circuit Judge, be convened and that process against the United States and the Interstate Commerce Commission be issued, the complainant prayed that on final hearing, this Court adjudge, order and decree that the order of the Commission, dated July II, 1938, be set aside, annulled and the enforcement thereof be perpetually enjoined in so far as such order required the cancellation of the plaintiff’s Local Passenger Tariff, I. C. C. No. 42, of 10 cents for transportation on its downtown line, and in so far as such order limited plaintiff’s interstate transportation to an 8 cent maximum fare for transportation on such line, and ended with the usual general prayer.

In the prayer of the complaint there was not any request for an interlocutory injunction, but merely a request for a final hearing and a permanent injunction.

On April 27, 1939, motions were filed to dismiss the complaint on the ground of (1) lack of venue, and (2) pendency of a prior suit between the same parties in the District of New Jersey.

On April 28, 1939, an order was entered by Judge Hulbert, before whom the motion for a three judge court had been made, convening a three judge court, constituted as above indicated, in pursuance of the statutory provisions of Title 28 United States Code, Section 47, 28 U.S.C.A. § 47.

On May 3, 1939, argument was heard before this three judge court on the motions filed on April 27, 1939.

At the request of all parties briefs were filed after the argument, of which the latest was filed on May 17, 1939.

IV. Title 28 United States Code, Section 47, 28 U.S.C.A. § 47, provides (italics mine) :

[140]*140“No interlocutory injunction * * * setting aside * * * any order made * * by the Interstate Commerce Commission shall be issued * * * unless the application for the same shall be presented to a circuit or district judge, and shall be heard and determined by three judges * * *. When such application as aforesaid is presented to a judge, he shall immediately call to his assistance to hear and determine the application two other judges * * * and upon the final hearing of any suit brought to suspend or set aside, in whole or in part, any order of said commission the same requirement as to judges and the same procedure as to expedition and appeal shall apply.”

It seems to be quite clear that as the complaint involves an application for the annulment of an order of the Interstate Commerce Commission, it was necessary that there should be a three judge court convened by Judge Hulbert. For if the defendants had been unsuccessful on their motions to dismiss based on lack of venue, and lis alibi pendens, those motions would be a mere prelude to a hearing for a permanent injunction which requires a three judge court. Title 28 United States Code, Section 47, 28 U.S.C.A. § 47.

We do not think, therefore, that the fact that an interlocutory injunction was not asked made the convening of a three judge court unnecessary.

We hold that when a three judge court is convened in a cause wherein, as here, due to the relief sought under the prayers thereof, it has subject matter jurisdiction, it must inherently have jurisdiction to deal with such preliminary motions as the parties may be advised to make, whether those motions are filed before or after the order convening the three judge court.

It seems to us that, although it was not discussed by the Supreme Court, this principle was implicit in the case of Home Furniture Company v. United States et al., 271 U.S. 456, 46 S.Ct. 545, 70 L.Ed.

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Bluebook (online)
28 F. Supp. 137, 1939 U.S. Dist. LEXIS 2518, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hudson-manhattan-r-v-united-states-nysd-1939.