Contemporary American History, 1877-1913Beard, Charles A. (Charles Austin)
History
Contemporary American History, 1877-1913
Beard, Charles A. (Charles Austin)
United States -- History -- 1865-1921
The position of railway corporations, if possible, was more anomalous
still. Their interstate business was subject to the regulations of
Congress and their intra-state business to the control of the state
legislatures. Although there existed, in theory, a dividing line between
these two classes of business, there were always arising concrete cases
where it was difficult to say on which side of the line they would fall
in the opinion of the Supreme Court. States were constantly being
enjoined on the application of the railways for their "interference with
interstate commerce"; and when far-reaching legislation was proposed in
Congress, the cry went up that the rights of states were being trampled
upon. If X shipped a carload of goods to Y within the borders of his
state, he paid one rate; if he shipped it to Z, two miles farther on in
another state, he paid a different rate, perhaps less than in the first
instance. In a number of states companies owning parallel lines might
consolidate; in others, consolidation was forbidden. According to a
report of the Interstate Commerce Commission in 1902, the states were
equally divided on this proposition as to the consolidation of
competing lines. According to the same report, if a railway company was
guilty of unjust discrimination in one state, it paid a fine of $50, and
in other states it was mulcted to the tune of $25,000. At the same time,
whoever obstructed a railway track in Mississippi was liable to three
months in jail; for the same offense in New York he might get three
years; if, perchance, after serving three years and three months in
these two commonwealths, he tried the experiment again in Wyoming, he
might in the mercy of the court be sentenced to death.
A further element of confusion was added by the intervention of the
Federal judiciary in declaring state laws invalid, not merely when they
conflicted clearly with the execution of Federal law, but on
constitutional grounds which meant, for practical purposes, whenever the
said laws were not in harmony with the ideas of public policy
entertained by the courts at the time. The Federal judiciary in regard
to state legislation relative to corporations was, therefore, a
destructive, not a constructive, body. To use the language of the
street, state legislation was simply "shot to pieces" by judicial
decisions. That which was chaotic, disjointed, and founded upon no
uniformity of purpose or policy to begin with was riddled and torn by a
body which had no power for positive action.
Public-domain text, read in full here on John Shaqi.
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