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
While the Munn case was before the Court, the case Peik _v._ the
Chicago and Northwestern Railway Company was raising a question which
struck at the heart of the chief practical impediment in the way of
state control of transportation. The central question in the
litigation was whether the legislature of Wisconsin could lawfully
regulate rates on railroads inside the state. Since the bulk of the
traffic on most roads crosses state borders at one time or another in
its transit, the regulation of rates within a state normally affects
interstate commerce. But the regulation of interstate commerce is
vested in Congress by the terms of the Constitution. The railroad was
quick to take advantage of the division of power between the states
and the nation. Indeed, when fighting state legislation, the roads
earnestly emphasized the exclusive power of Congress over interstate
commerce; but when fighting national regulation, they equally
deprecated any interference with the reserved rights of the states.
Acting in accordance with its established practice, the Court decided
that the state was authorized to regulate rates within its borders,
even though such regulation indirectly affected persons outside, until
Congress passed legislation concerning interstate commerce. Obviously
this decision allowed the states to work out their railroad problems
unhampered, and constituted one of the chief victories for the
Grangers.
In 1886, however, the Court overturned some of the principles which
had been established in the Munn and Peik cases. The new development
came about in connection with the Wabash railroad. It appeared that
the road had been carrying freight from Peoria, Illinois, to New York
for smaller rates than were charged from Gilman to New York, despite
the fact that Peoria was eighty-six miles farther away. Since Illinois
law forbade a road to levy a greater charge for a short haul than for
a long one, a suit was instituted and carried to the Supreme Court.
The company held that the Illinois legislation affected interstate
commerce and hence trenched upon the constitutional power of Congress.
This time the Court upheld the road. It decided that the
transportation of goods from Illinois to New York was commerce among
the states, that such commerce was subject to regulation by Congress
exclusively, and that the Illinois statute was void. It seemed, then,
that state regulation was a broken reed on which nobody could safely
lean, and attention thereupon turned to the federal government.
Public-domain text, read in full here on John Shaqi.
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