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AUTOMOBILE CLUB OF NEW YORK v. PORT AUTHORITY

No. 1281, Docket 89-7267.

887 F.2d 417 (1989)

AUTOMOBILE CLUB OF NEW YORK, INC., and AAA Clubs of New Jersey, Appellants, v. The PORT AUTHORITY OF NEW YORK AND NEW JERSEY, Philip D. Kaltenbacher, Robert F. Wagner, Richard C. Leone, James G. Hellmuth, Henry F. Henderson, Jr., William K. Hutchison, H. Carl McCall, John G. McGoldrick, William J. Ronan, Howard Schulman, Robert Van Buren, Hazel Frank Gluck, as Commissioners of the Port Authority of New York and New Jersey, Appellees.

United States Court of Appeals, Second Circuit.

Decided October 10, 1989.

Attorney(s) appearing for the Case

Anthony S. Genovese, Kissam & Halpin, New York City (Dennis J. Crossley, John D. D'Ercole, New York City, of counsel), for appellants.

Arthur P. Berg, New York City (Joseph Lesser, Milton H. Pachter, Sholem Friedman, Carlene V. McIntyre, New York City, of counsel), for appellees.

Before OAKES, Chief Judge, VAN GRAAFEILAND and PRATT, Circuit Judges.

OAKES, Chief Judge:

The issue in this case is whether the Port Authority of New York and New Jersey may subsidize the operations of its Port Authority Trans-Hudson ("PATH") Railroad with revenues collected from tolls on its bridges and tunnels. The subsidy is achieved by including PATH in the rate base of the tolls that the Port Authority charges on its bridges and tunnels. The question is then whether the bridge tolls are "just and reasonable," as required by section...

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