Minnesota Rate Cases 230 U.S. 352 (1913)
Author | David Gordon |
Pages | 1739-1740 |
Page 1739
In these cases a unanimous Supreme Court reaffirmed state power to regulate INTRASTATE COMMERCE even if it should indirectly affect INTERSTATE COMMERCE. Justice CHARLES EVANS HUGHES stressed the supremacy of federal authority but, reaching back to COOLEY V. BOARD OF WARDENS OF PHILADELPHIA (1852), held that states could regulate interstate commerce when Congress had not yet chosen to act.
The cases before the Court represented extensive litigation throughout the country. The Railroad & Warehouse Commission of Minnesota and the state legislature had issued orders fixing maximum rail rates within the state. Although the rates they set were purely intrastate, both sides agreed that interstate rates would be affected. The cases arose as STOCKHOLDERS ' SUITS to prevent the application of the prescribed rates to interstate operators. (See EX PARTE YOUNG.) On the principal question whether the orders fixed rates that interfered with interstate commerce, Hughes agreed that if the rates imposed a direct burden on commerce, they must fall. He then began a lengthy exposition of the nature of commercial regulation in the federal system, concluding that "it is competent for a state to govern its internal commerce ? although interstate commerce may incidentally or indirectly be involved."
Page 1740
Unless and until Congress acted, state action might well be legal even if touching interstate commerce. Only Congress could judge the necessity for action and, having decided to, it could intervene "at its...
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