Carly Clendening
Shreveport Rate Case
34 S.Ct. 833 (234 U.S.) 342 (1914)
Vote: 7-2
Majority Opinion: Hughes
Dissenting: Lurton and Pitney
Not Participating: none
Facts: Three railroad companies were claimed, by the Louisiana Railroad
Commission, to have been discriminatory on interstate commerce between
Louisiana and Texas, by charging different rates among shipments in Texas. The
point of manipulating these rates was to boost trade in Texas areas instead of
Shreveport, Louisiana. The Interstate Commerce Commission then set the rates for
interstate and intrastate trades after the hearings, so as to eliminate discrimination.
This regulation was in conflict with the rates set by the Texas Railroad Commission,
so the Houston Railway Company appealed on grounds that the ICC or an agency
created by congress couldn’t regulate intrastate commerce and/or that the ICC
overstepped its’ authority range.
Statute or Provision of the Constitution in Question:
Legal Questions:
1. Were the intrastate regulations set by the ICC done beyond its set power?
Holding:
1. No
Reasoning: It is for Congress to supply the needed correction were the relation
between interstate and intrastate rates presents a problem that needs to be
corrected. Congress is entitled to maintain its own standard as to these rates and to
prevent discrimination. The decision of the Commerce Court is upheld.
Res Judicata: Congress's power to regulate interstate commerce is supreme and has
the power to protect and advance this commerce.
Concurring: none
Dissents: Lurton and Pitney