The United States Since the Civil WarLingley, Charles Ramsdell
History
The United States Since the Civil War
Lingley, Charles Ramsdell
United States -- History -- 1865-1921
The famous case Munn _v._ Illinois, which was decided by the Supreme
Court in 1876 was possibly the most vital case in the history of the
regulation of public service corporations after the Civil War. The
legislature of Illinois, in conformity with the state constitution of
1870, had passed a law fixing maximum charges for the storage of grain
in warehouses. The owners of a certain warehouse refused compliance
with the law on the ground that it was contrary to the Constitution
and hence null and void. They argued that when the state fixed rates
it deprived the owners of the right to set higher charges and so, in
effect, deprived them of their property, in defiance of that portion
of the Fourteenth Amendment forbidding a state to "deprive any person
of life, liberty, or property, without due process of law."
On examination of the history of the control of such enterprises, the
Court found that it had been customary in England for many centuries
and in this country from the beginning, to regulate rates on ferries,
charges at inns, and similar public enterprises, and that it had never
been thought that such action deprived persons of property without due
process of law. In other words, the established common law, at the
time of the passage of the Fourteenth Amendment, did not look upon
rate regulation as a deprivation of property. The Court, therefore,
declared the Illinois warehouse law constitutional, and in doing so
made the following statement:
Property does become clothed with a public interest when
used in a manner to make it of public consequence, and affect
the community at large. When, therefore, one devotes his
property to a use in which the public has an interest, he, in
effect, grants to the public an interest in that use, and must
submit to be controlled by the public for the common good,
to the extent of the interest he has thus created.
Public-domain text, read in full here on John Shaqi.
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