Supreme Court Cases

Wabash, St.Louis, & Pacific Railway Co. v. Illinois (1886) Background Background Long-haul, short-haul discrimination by the railroads within the state of Illinois (penalties were applied) Long-haul, short-haul discrimination by the railroads within the state of Illinois (penalties were applied) Issue Issue Could the state regulate railroads on the intrastate (within a state) portion of an interstate (between states) trip? Could the state regulate railroads on the intrastate (within a state) portion of an interstate (between states) trip? Decision State law was unconstitutional The power to regulate interstate commerce belongs to Congress Importance Put pressure on Congress to act if the states can’t regulate the railroads One year after the decision Congress passed the Interstate Commerce Act

Munn v. Illinois (1877) Background Background State of Illinois had passed Granger laws to set rates of railroads and grain elevators (to help farmers) State of Illinois had passed Granger laws to set rates of railroads and grain elevators (to help farmers) Issue Issue Did Illinois law deprive railroads of property (profits) without due process? Did Illinois law deprive railroads of property (profits) without due process? Decision State law was constitutional because the law was related to the public interest Importance Railroad rates were limited by the state government

In Re Debs Background: Background: Eugene V.Debs, president of the American Railway Union, led a strike against the Pullman Railroad which had the effect of halting the distribution of the U.S. mail. He refused to honor an injunction to stop the strike. Eugene V.Debs, president of the American Railway Union, led a strike against the Pullman Railroad which had the effect of halting the distribution of the U.S. mail. He refused to honor an injunction to stop the strike. Constitutional Issue Constitutional Issue Fifth Amendment due process rights of Debs vs Article I Sect VIII commerce clause. Fifth Amendment due process rights of Debs vs Article I Sect VIII commerce clause. Decision Upheld authority of Federal Gov’t to halt Pullman RR Car Strike. Court decided that Debs' actions were illegal because the strike also hurt the public interest when it stopped the delivery of the mail. Importance: Injunction became powerful weapon used by employers against strikers

United States v. E.C. Knight Co. (1895) Background Background American Sugar Refining Co. bought stock in smaller companies & controlled 90% of sugar processed in U.S. (horizontal monopoly) American Sugar Refining Co. bought stock in smaller companies & controlled 90% of sugar processed in U.S. (horizontal monopoly) Issue Issue Can Congress regulate manufacturing? Can Congress regulate manufacturing? Can Congress outlaw “manufacturing monopolies”? Can Congress outlaw “manufacturing monopolies”? Decision Federal Gov’t cannot regulate refineries because they were manufacturing operations, not directly related to interstate commerce State gov’t. can regulate local activities under the terms of 10 th Amendment (Reserved Powers) Importance Few attempts made to prosecute corporations in restraint of trade (most against unions as “unreasonable restraint of trade”)