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Transit Commission v. United States, 289 U.S. 121 (1933)

Transit Commission v. United States

No. 535

Argued March 13, 14, 1933

Decided April 10, 1933

289 U.S. 121


l. By paragraphs 18-20 of § 1 of the Interstate Commerce Act (added by the Transportation Act, 1920), Congress intended to confer on the Interstate Commerce Commission plenary power to limit the expenditures of interstate carriers for construction or operation to lines of railroad reasonably necessary for the service of the public. P. 289 U. S. 127.

2. The Act is to be construed so that this authority may be fully effective. P. 289 U. S. 128.

3. Extension of the traffic of an interstate carrier beyond its own terminus over the line and to and from the terminus of another carrier, under a trackage agreement allowing it the use of these facilities jointly with their owner, is an "extension" of the railroad of the lessee or licensee and an "operation of a line of railroad" by it within the meaning of § 1(18) of the Interstate Commerce Act, and the making of such agreement and its terms, including the rental, are subject to the jurisdiction of the Interstate Commerce Commission to the exclusion of state authority. P. 289 U. S. 128.

4. Where such joint use began before the date of the Transportation Act under an agreement approved by the state, and was continued after that date and after the agreement had expired, the arrangement, and the terms of a new agreement for it, necessarily fell within the provisions of § 1(18). P. 289 U. S. 129.

1 F.Supp. 595 affirmed.

Page 289 U. S. 122

Appeal from a decree of the District Court of three judges denying a preliminary injunction and dismissing the bill in a suit to set aside an order of the Interstate Commerce Commission.

Page 289 U. S. 123

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