The legislature of the State of Minnesota, in the year 1905, passed an act fixing the rates of passenger fares to be charged by railroads within the State, and also fixing the rates for the transportation of freight.
The act was to take effect on the 1st day of July, 1905, and it provided for the appointment of a railroad commission, with power to fix rates, and also provided for the enforcement of the act by penalties and by mandamus.
Before the act took effect, the railroad companies affected by it filed bills in the Circuit Court of the United States for the District of Minnesota, alleging that the act was unconstitutional, in that it was confiscatory, and deprived the companies of their property without due process of law, and also that it was in violation of the commerce clause of the Constitution of the United States, and they asked for an injunction to restrain the enforcement of the act. These suits were brought against the railroad commission and the Attorney General of the State.
While those cases were pending on appeal, the legislature in 1907 amended the law to create a railroad and warehouse commission with authority to set rates and to impose a penalty of one thousand dollars for each violation of charging higher rates, with the Attorney General charged with enforcement.
After the Supreme Court decided the Minnesota Rate Cases in 208 U.S. 1, stockholders Perkins and Shepard of the Northern Pacific Railway Company filed a new bill in the Circuit Court against the commission members, Attorney General Edward T. Young, and others, seeking to enjoin enforcement of the 1907 act on constitutional grounds.
The Circuit Court granted a preliminary injunction restraining Young from instituting suits to enforce the penalties. Young appeared specially, moved to dismiss the bill as a suit against the State barred by the Eleventh Amendment, but the motion was overruled; he declined to plead further, resulting in a default decree granting the injunction.
Subsequently, Young, as Attorney General, commenced a mandamus proceeding in Minnesota state court against the Northern Pacific Railway Company to compel compliance with the 1907 rates.
Upon learning of the state court action, the Circuit Court issued a rule to show cause why Young should not be held in contempt; after hearing, it found him in contempt, fined him one hundred dollars, and ordered him to dismiss the mandamus suit or remain in custody.
Young then petitioned the Supreme Court of the United States for a writ of habeas corpus, asserting that the federal court's orders exceeded its jurisdiction.
View case