Louisville Nashville Railroad Company v. F. W. Cook Brewing Company

This suit started in a court of the state of Indiana, and was removed by the defendant, now the appellant, to the circuit court of the United States.

The brewing company is an Indiana corporation, engaged in brewing beer at Evansville, Indiana, and sells its product in state and interstate trade. The railroad company is a Kentucky corporation, owning and operating a line of railway extending into many states, including Indiana and Kentucky.

The complaint averred that although prepayment of freight had been tendered and every shipping regulation complied with, the railroad company had refused to accept for carriage from Evansville, Indiana, to stations on the line of its railway in the state of Kentucky, beer in kegs and cases, consigned to points which were 'local-option' or 'dry' localities under the law of Kentucky, and had notified complainant and the public that it would discontinue receiving consignments of beer or other liquors for points in the state of Kentucky where the local-option law of that state was in operation. The prayer of the bill was that the railroad company be enjoined from so refusing to accept the product of the brewing company for transportation from Evansville to such local-option points in Kentucky.

A preliminary injunction was issued as prayed. Thereupon the defendant removed the case to the circuit court of the United States, upon the ground that there was diversity of citizenship, and also because the case involved questions arising under the Constitution and laws of the United States; namely, the validity of the law of Kentucky, prohibiting the transportation and delivery of liquors to points in that state where the sale was prohibited, and also as a case arising under the act of Congress regulating interstate commerce of February 4, 1887 [24 Stat. at L. 379, chap. 104, U.S.C.omp. Stat. 1901, p. 3154], as amended June 29, 1906 [34 Stat. at L. 584, chap. 3591, U.S.C.omp. Stat. Supp. 1909, p. 1149]. An answer was then filed and the cause heard upon bill and answer, with the result that the preliminary injunction allowed by the state court was made permanent, and the railroad company enjoined from refusing to receive and carry beer from Evansville to any point upon its line of road in the state of Kentucky, wet or dry. An appeal by the railroad company to the circuit court of appeals resulted in an affirmance of the order of the circuit court. For the opinion see 172 Fed. 117.

Messrs.Henry L. Stone, Philip W. Frey, and George R. DeBruler for appellant.

[Argument of Counsel from Pages 73-77 intentionally omitted]

Mr. George A. Cunningham for appellee.

[Argument of Counsel from Pages 77-79 intentionally omitted]

Mr. Justice Lurton, after making the above statement, delivered the opinion of the court: