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This section contains the nature of the case and procedural background.

At its inception, the New York-New Jersey Port of Authority committed all revenues from its toll profits to bonds the Authority had issued. In 1960, the Authority wished to take over a commuter train service which would require the Authority to use its toll profits already committed to retire its bonds. The Statutory Covenant of 1962 was enacted. State laws repealed the statutory covenant made by the two States in 1962 that had limited the ability of The Port Authority of New York and New Jersey to subsidize rail passenger transportation from revenues and reserves. The United States Trust Company (P) sued for declaratory relief. After a trial, the Superior Court ruled that the statutory repeal was a reasonable exercise of New Jersey's police power, and declared that it was not prohibited by the Contract Clause or by the New Jersey Constitution, Art. IV, § 7, 113. P's complaint was dismissed. The Supreme Court of New Jersey affirmed 'substantially for the reasons set forth in the [trial court's] opinion.'

The legal issues presented in this case will be displayed here.

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