Courts -- United States; Revolutions; United States -- Politics and government
In April, 1894, a record was produced before the Supreme Court which
showed that the State of North Dakota had in 1891 established rates for
elevating and storing grain, which rates the defendant, named Brass, who
owned a small elevator, alleged to be, to him in particular, _utterly_
ruinous, and to be in general unreasonable. He averred that he used his
elevator for the storage of his own grain, that it cost about $3000,
that he had no monopoly, as there were many hundred such elevators in
the state, and, as land fit for the purpose of building elevators was
plenty and cheap, that any man could build an elevator in the town in
which he lived, as well as he; that the rates he charged were
reasonable, and that, were he compelled to receive grain generally at
the rates fixed by the statute, he could not store his own grain. All
these facts were admitted by demurrer, and Brass contended that if any
man's property were ever to be held to be appropriated by the public
without compensation, and under no form of law at all save a predatory
statute, it should be his; but the Supreme Court voted the Dakota
statute to be a reasonable exercise of the Police Power,[31] and
dismissed Brass to his fate.
The converse case is a very famous one known as Smyth _v._ Ames,[32]
decided four years later, in 1898. In that case it appeared that the
State of Nebraska had, in 1893, reduced freight rates within the state
about twenty-nine per cent, in order to bring them into some sort of
relation to the rates charged in the adjoining State of Iowa, which were
calculated to be forty per cent lower than the Nebraska rates. Several
of the most opulent and powerful corporations of the Union were affected
by this law, among others the exceedingly prosperous and influential
Chicago, Burlington & Quincy Railway. No one pretended that, were the
law to be enforced, the total revenues of the Burlington would be
seriously impaired, nor was it even clear that, were the estimate of
reduction, revenue, and cost confined altogether to the commerce carried
on within the limits of the State of Nebraska, leaving interstate
commerce out of consideration, a loss would be suffered during the
following year. Trade might increase with cheaper rates, or economies
might be made by the company, or both causes and many others of
increased earnings might combine. Corporation counsel, however, argued
that, were the principle of the statute admitted, and should all the
states through which the line passed do the like, ultimately a point
might be reached at which the railway would be unable to maintain, even
approximately, its dividend of eight per cent, and that the creation of
such a possibility was conceding the power of confiscation, and,
therefore, an unreasonable exercise of the Police Power, by the State of
Nebraska. With this argument the Supreme Court concurred. They held the
Nebraska statute to be unreasonable. Very possibly it may have been
Public-domain text, read in full here on John Shaqi.
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