black white taxi brown yellow taxi argued decided april yellow taxi sims john stout bowling green petitioner logan frankfort respondent justice butler delivered opinion respondent sued petitioner louisville nashville railroad company western district kentucky prevent interference carrying contract railroad company respondent district entered decree favor respondent railroad company declining join petitioner alone appealed circuit appeals affirmed granted writ certiorari respondent tennessee corporation carrying transfer business bowling green ky petitioner kentucky corporation competition respondent railroad company kentucky corporation made contract respondent whereby granted exclusive privilege going upon trains depot surrounding premises solicit transportation baggage passengers assigned plot ground belonging use respondent taxicabs awaiting arrival trains consideration privileges granted respondent agreed render certain service make monthly payments railroad company term contract fixed one year continue consecutive yearly periods terminated either party days notice jurisdiction district invoked ground controversy one citizens different complaint alleges railroad company failed carry contract allowed others enter upon property solicit transportation baggage passengers park property vehicles used purpose alleges petitioner entered solicited business parked vehicles places assigned respondent also adjoining street obstruct operation respondent taxicabs petitioner answer alleges respondent incorporated tennessee fraudulent purpose giving district jurisdiction evade laws kentucky asserts contract contrary public policy laws kentucky declared highest monopolistic excess railroad company charter power violates section constitution state record shows september respondent organized tennessee shareholders kentucky corporation name carrying transfer business bowling green contract railroad company like one involved business property kentucky corporation transferred respondent former dissolved respondent incorporators railroad representatives preferring controversy deter mined courts arranged respondent organized tennessee succeed business kentucky corporation enter contract order create diversity citizenship district found fraud upon jurisdiction held contract valid found substantially alleged complaint petitioner violated respondent rights decree enjoins petitioner continuing interference section judicial code usca requires suit commenced district dismissed shall appear suit really substantially involve dispute controversy properly within jurisdiction parties improperly collusively made joined either plaintiffs defendants purpose creating case cognizable requisite diversity citizenship exists controversy real substantial privilege granted valuable petitioner treats contract invalid claims entitled without consent railroad company use railroad property park vehicles solicit business railroad company failed protect rights granted motives induced creation respondent become successor kentucky grantor take transfer property influence validity transactions subject suit succession transfer actual feigned merely colorable circumstances courts inquire motives deciding concerning jurisdiction mcdonald smalley et pet enough respondent real party interest smith et al kernochen incorporation respondent title business contract question impeached railroad company rights parties determined federal improper collusive within meaning section metropolitan railway receivership harkin brundage february south dakota north carolina requires discussion distinguish lehigh mining mfg kelly miller lux east side canal district jurisdiction petitioner maintains contract enforceable excess railroad company power charter cites decision kentucky appeals mcconnell pedigo case involved grant railroad company exclusive privilege standing hacks platform depot glasgow refer terms charter petitioner railroad company incorporated act legislature kentucky approved march purports quote section relating corporate powers said louisville nashville railroad company may make regulations rules necessary government corporation effecting object created provided regulations rules shall repugnant laws constitution said opinion hold suggest contract contrary provision constitution statutes kentucky violation federal law conclusion rests determination question general law upon construction charter moreover given charter much broader construction insisted petitioner ville property commonwealth held maintenance place hotel restaurant accommodations pleasure recreation rest afforded park neither letter spirit constitution statute violated railroad company acts exercise certain implied powers prohibited exercise far concerns railroad company charter authority make contract clearly within principle decision section kentucky constitution provides railway company shall make exclusive preferential arrangement handling freight conduct business common carrier petitioner invokes last clause railroad company obligation transport passengers baggage station mcconnell pedigo supra bound permit engaged transportation use property solicit patronage park vehicles otherwise carry business contract relate railroad company business common carrier morristown february appeals kentucky held contracts invalid mcconnell pedigo supra palmer transfer anderson invalidity similar contract assumed arguendo commonwealth louisville transfer reasons conclusion suggests grant privileges prevents competition makes discrimination unreasonable detrimental public constitutes preference transfer men give grantee practical monopoly business held repugnant provision statutes constitution state question decided one general law donovan pennsylvania holds contracts valid donovan case supra morristown case supra decisions show without consent property railroad company may used taxicabmen others solicit carry business beyond power state public interest require railroad company without compensation allow property used state courts quite generally construe common law applied old colony railroad tripp mass boston albany railroad brown mass new york scovill griswold webb new york bork hedding gallagher brown hun thompson exp storage whitemore eq norfolk western old dominion baggage rose public service commission ann cas state depot ohio ann cas missouri pac kohler oregon short line davidson utah ann cas union depot ry meeking dingman duluth lewis railway tex civ app see commonwealth power metc mass goudbout paul union depot napman people fluker georgia railroad banking harmony kentucky decisions highest courts indiana mississippi hold contracts invalid indianapolis union dohn ind state reed miss conclusion reached cravens rodgers mo montana union ry langlois mont kalamazoo hack bus sootsma last three cases conclusion rests least part upon provision state statute constitution arrangements similar principle us sustained english courts perth general station committee ross app cas beadell barker midland ry cases cited show decisions kentucky appeals holding arrangements invalid contrary common law generally understood applied opinion petitioner failed show valid ground disregarding contract interference justified care observed lest doctrine contract void public policy unreasonably extended detriment public interest presumed absence showing something improper done contemplated steele drummond november remembered stated sir george jessel printing company sampson eq public policy requires competent persons utmost liberty contracting contracts entered fairly voluntarily shall held sacred shall enforced courts justice station grounds belong railroad company lawfully may put use interfere duties common carrier privilege granted respondent impair railroad company service public infringe right taxicabmen transport passengers station gives respondent advantage getting business passengers free engage one may ready serve carrying contracts generally makes good order railway tions prevents annoyance serves convenience promotes safety passengers morristown supra complaint behalf passengers lack service unreasonable exaction inconvenience public shown unwarranted arbitrary assume contract contrary public interest grant privileges respondent creates duty part railroad company give like privileges others therefore illegal discrimination state without power require part depot ground used public hack stand without providing compensation therefor fortiori property may handed use petitioner without consent owner decree affirmed unless federal courts bound kentucky decisions directly opposed determination principles common law properly applied cases petitioner argues kentucky decisions persuasive establish invalidity contracts circuit appeals erred refusing follow understand brief contend reason rule decision declared section judiciary act tit usca required adopt kentucky decisions granting point us sustained contract gives respondent subject termination short notice license privilege solicit patronage park vehicles railroad property train time question concerning title land provision state statute constitution ancient fixed local usage involved discovery principles applicable case investigation limited decisions courts state controversy arises state federal courts go sources evidence existing applicable rule effort ascertain rule kentucky adopted common law courts recognize principles local included body law constituting general jurisprudence prevailing wherever common law recognized hunt warnicke heirs hardin lathrop commercial bank dana ray sweeney bush et aetna insurance commonwealth nider commonwealth ann cas see kent commentaries ed pp respects rule decision followed federal courts distinction always made statutes state decisions courts questions general law applicable rule sustained many decisions determining questions general law federal courts inclining follow decisions courts state controversy arises free exercise independent judgment case depends question clearly shown many decisions swift tyson pet action bill exchange justice story writing fully expounded section judiciary act carpenter insurance pet held construction insurance policy involves questions general law lane vick involved construction said page follow state courts construction instrument construction statutes foxcroft mallett held decision state construing deed conclusive chicago city robbins black declined follow determination state constitutes negligence yates milwaukee wall held determination constitutes dedication land public use one general law olcott fond du lac county wall held determination public purpose warrant municipal taxation involves question general law new york cent lockwood wall declined follow state rule liability common carriers injury passengers liverpool phenix ins held question concerning validity contract carriage goods one general law baltimore ohio railroad baugh held responsibility railroad company employees personal injuries beutler grand trunk railway decides fellow servants question general law lower courts followed rule rightly held contract valid facts shown warrant injunction granted decree affirmed justice holmes suit brought respondent brown yellow taxicab transfer company plaintiff prevent petitioner black white taxicab transfer company interfering carrying contract plaintiff defendant louisville nashville railroad company plaintiff corporation tennessee predecessor name corporation kentucky knowing courts kentucky held contracts kind question invalid courts maintained valid family owned kentucky corporation procured incorporation plaintiff caused dissolved conveying corporate property plaintiff new tennessee corporation proceeded make louisville nashville railroad company contract mentioned railroad company gave exclusive privileges station grounds two months later tennessee corporation brought suit circuit appeals affirming decree district granted injunction upheld contract expressly recognized decisions kentucky courts held kentucky railroad company grant rights general law went way regardless courts state circuit appeals considerable tradition behind deciding regard case exceptional feel warranted presenting convictions stated kuhn fairmont coal question important opinion prevailing doctrine accepted upon subtle fallacy never analyzed right fallacy resulted unconstitutional assumption powers courts lapse time respectable array opinion make us hesitate correct therefore think proper state think fallacy often repeated proposition lower courts parties entitled independent judgment matters general law phrase meant matters governed law statute louisiana governed respects called common law phrase think fallacy comes books written branch common law treat unit cite cases circuit courts appeal state courts england colonies england indiscriminately citicise right wrong according writer notions single theory hard resist impression one august corpus understand clearly task concerned transcendental body law outside particular state obligatory within unless changed statute courts might right using independent judgment body law fallacy illusion think exist consist supposing outside thing found law word used different meanings law sense courts speak today exist without definite authority behind common law far enforced state whether called common law common law generally law state existing authority state without regard may england anywhere else may adopted statute place another system previously force boquillas cattle curtis general adoption prevent state courts refusing follow english decisions upon matter local conditions different wear kansas may changed statute baltimore ohio baugh done every day may departed deliberately judicial decisions regard water rights common law generally prevails louisiana living proof need adopted know whether prevailing doctrine regard authorities upon general law louisiana superior trained system whether far sense rule shall adopted whether called common law kentucky law state alone decide within limits constitution state declare one disputed rules general law statute doubt duty courts bow whatever private opinions might mason gulf refining see reason less effect speaks voice see benedict ratner sim edenborn state constitution declare matters general law decisions highest establish law modified statute later decision perceive possible refuse follow state decided domain constitution state establishes implication make declaration clearly said express words far interfered superior power state something make scientific inquiry fact outside independent says authority one denies except citizen another state able invoke exceptional jurisdiction thus law shall whether said make declare law deals law state equal authority however function may described justice story swift tyson pet evidently tacit domination fallacy referred devotes energy showing section judiciary act usca refers statutes provides except excepted laws several shall regarded rules decision trials common law courts examination original document competent hand shown justice story probably wrong anyone interested inquire framers instrument meant harvard law review pages question deeper question authority certain particular acts grant exclusive privileges railroad station governed opinion authority authority state voice adopted state utter last word leave swift tyson undisturbed indicated kuhn fairmont coal allow spread assumed dominion new fields view said necessary give subordinate narrower reasons opinion decision reversed adequate reasons short think recognized question concerning lawful use land kentucky corporation chartered tucky policy kentucky regard settled kentucky years mcconnell pedigo even rule combat recognized settled line state decisions conclusive establish rule property public policy state hartford fire insurance chicago milwaukee paul ry supposed arrangements made use piece land purely local question thing state way state courts taken declare state wills see especially george smith middlings purifier mcgroarty justice brandeis justice stone concur opinion footnotes see watson tarpley mercer county hackett wall marshall county schenck wall boyce tabb wall baltimore jones hough railway oates national bank brooklyn city national bank burgess seligman et myrick michigan central pana bowler gibson lyon enfield jordan smith alabama lake shore railway prentice gardner michigan central railroad oakes mase barber pittsburgh railway pennsylvania hughes presidio county texas pacific ry bourman cases cited kuhn fairmont coal et salem manufacturers goodman