New York Central Railroad v. United States

65 Ct. Cl. 115, 1928 U.S. Ct. Cl. LEXIS 453, 1928 WL 2917
CourtUnited States Court of Claims
DecidedApril 2, 1928
DocketNo. F-339
StatusPublished
Cited by5 cases

This text of 65 Ct. Cl. 115 (New York Central Railroad v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
New York Central Railroad v. United States, 65 Ct. Cl. 115, 1928 U.S. Ct. Cl. LEXIS 453, 1928 WL 2917 (cc 1928).

Opinion

Campbell, Chief Justice,

delivered the opinion of the court:

This is a suit by a railroad company asking judgment for an amount, determined by an order of the Interstate Commerce Commission, as compensation for the transportation of mails and services connected therewith. The facts are stipulated and a short history of them showing the cause of the suit may be stated as follows: The carrier was engaged in the service mentioned under the act of July 28, 1916, 39 Stat. 429, that requires railway common carriers to transport mail matter offered by the Postmaster General and provides a method for determining “ a fair and reasonable compensation” for the service.

The commission had made an order fixing the compensation effective December 23, 1919, and the carrier was in the performance of the required service receiving the compensation fixed by this order, when, on February 25, 1921, it filed its application for a reexamination of the facts and readjustment of the compensation. Thereupon the commission entered an order that the proceedings be reopened for such further hearing as they might direct. New and additional evidence having been introduced, different from that on which the order of December 23, 1919, had been based, the commission made a report under date of December 13,1923, stating, among other things, it was their opinion that in a proceeding upon application for a reexamination “ under the act of July 28, 1916,” they had authority to establish rates only for the future and not for the past.” [121]*121The carriers’ request for findings as to the past ” was therefore denied. They accordingly made an order establishing a schedule of rates on and after December 13, 1923, but made no order as to the period prior to that date. Following this order there were applications by the carriers and by the Government, set forth more at length in the findings, with the result that on January 12, 1925, a report was made by the commission to the effect that the rates of mail pay for the service rendered “ on and after February 25, 1921,” the date of the application, were not fair and reasonable, and that the rates mentioned in the order of December 13, 1923, were fair and reasonable rates for the service rendered on and after February 25, 1921. No order was made, however, fixing the new rates for the period in question until their report on December 8, 1925, when the commission, 'affirming their previous findings as to rates, issued an order establishing such rates as fair and reasonable with respect to the plaintiff herein for the period from February 25, 1921, to December 13, 1923, that being the period in question. By an application of the rates prevailing before these dates, the plaintiff had been paid a large sum, but if entitled to receive for the period in question the rates found and ordered by the commission, there is due the carrier the additional amount of $724,718.51.

The contention of the parties turns, upon the authority of the commission to make their order of December 8, 1925, fixing the schedule of rates as the fair and reasonable compensation to which the carrier was entitled from February 25, 1921, the date of the filing of the application therefor to December 13, 1923, from which date the new rates had in fact been applied, and the further contention that in any event this court is without jurisdiction in the premises.

1. We think the court has jurisdiction because the carrier is asserting a claim founded upon a law of Congress.

When by the act of July 28, 1916, all railway common carriers were “ required ” to transport such mail matter “ as may be offered *for transportation by the United States in the manner, under the conditions, and with the service prescribed by the Postmaster General,” and further pro[122]*122vided a severe penalty for any railroad company refusing to perform the service, it became not only proper, but necessary, that provision be made for' compensating them, and the act declared that they should be entitled to receive fair and reasonable compensation for such transportation and for the service connected therewith. To this end the Interstate Commerce Commission was empowered and directed, “ as soon as practicable,” to fix and determine from time to time the fair and reasonable compensation which the act declares the carrier is entitled to receive. The basis for such determination is stated and the method of procedure is prescribed by the act, and it is also provided that when the commission shall establish by order a fair and reasonable rate or compensation to be received at such stated times as may be named in the order, the Postmaster General should pay the same. Provision is made for reexaminations, on application of the Postmaster General, or any carrier after the lapse of six months “ from the entry of the order assailed ” and thereupon substantially similar proceedings as those leading up to the order assailed, are to be had “ with respect to the rate or rates for service covered by said application.” The commission has determined and ordered that for the period in question the carrier was entitled to a stated compensation, the Postmaster General has refused to pay this compensation, or at least a large part of it, and assuming, for the argument, that this order was authorized, where can the carrier get relief in the situation in which it thus finds itself unless it may sue in the Court of Claims ? The act does not contemplate a refusal on the part of the Government’s agents to pay the compensation ordered by the commission, but does contemplate compliance by the payment of the same. As generally stated, the rule is that where the statute creates a right against the United States, but does not furnish the remedy, it may be found in the Court of Claims.

The authorities are carefully reviewed in Foster's case, 32 C. Cls. 170, 185, where conclusions are ..stated, among them that where an officer authorized to determine the claim allows it but the accounting officers or the Secretary of the Treasury [123]*123refuses to give effect to the award, an action thereon will lie in this court. In Newcomber's case, 51 C. Cls. 408, the later cases are reviewed and a like conclusion is reached. In Kaufman's case, 11 C. Cls. 659, the facts showed that the Commissioner of Internal Revenue had determined that the party was entitled to a refund and awarded an allowance, but the Treasury refused to carry out the award by making payment, and the court held it had jurisdiction of the suit brought to recover the award. Upon appeal to the Supreme Court, 96 U. S. 567, it was said (p. 569) : “ The claim has been presented to and allowed by the proper officer. The claimant has pursued the statutory remedy to the end. He is satisfied with the decision that has been given, and insists upon the payment which the Government has undertaken to make. No special remedy has been provided for the enforcement of the payment, and consequently the general laws which govern the Court of Claims may be resorted to for relief, if any can be found applicable to such a case. * * * Here the right has been given and a liability founded upon a law of Congress created. Of such liabilities the Court of Claims has jurisdiction, and no other remedy has been provided.” A similar question arose in United States v. Savings Bank, 104 U. S. 728

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Cite This Page — Counsel Stack

Bluebook (online)
65 Ct. Cl. 115, 1928 U.S. Ct. Cl. LEXIS 453, 1928 WL 2917, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-york-central-railroad-v-united-states-cc-1928.