Texas & Pacific Railway vs. The Inter-State

Commerce Commission.

BY JOHN W. JUDD.

The text of this paper is the case of Texas & Pacific R. R. vs. Inter-State Commerce Commission, decided by the Supreme Court of the United States, and reported in 162 U. S. at page 197.

A careful reading of the opinion of the Court will make it manifest to any thoughtful man, that if this decision shall become the established law of this country, its effects will be of far reaching importance both upon the commercial interests of our country and the political character of our institutions.

To be a little more specific I might say, that some of the heretofore prevailing ideas of political economy amongst our people, will be modified, if not entirely changed; which will in turn modify greatly the political administration of our Government.

I am aware that when I make this statement I at once challenge criticism of what I shall say, because a people as conservative as ours, will not readily accept the idea that one decision of any Court, can have such far-reaching influence.

Before coming to a discussion of the points decided, it is proper to acquaint ourselves with the Act of Congress

known as "An Act to regulate Commerce," which was passed Feb'y. 4, 1887.

So much of the first section as is necessary to a proper presentation of the points under discussion is as follows:

"Be it enacted &c. That the provisions of this act shall apply to any common carrier or carriers, engaged in the transportation of passengers or property, wholly by railroad, or partly by railroad and partly by water, when both are used under a common control, management, or arrangement, for a continuous carriage or shipment from one State or Territory of the United States, or the District of Columbia, to any other State or Territory of the United States or the District of Columbia, or from any place in the United States to an adjacent foreign country, or from any place in the United States through a foreign country to any other place in the United States, and also to the transportation in like manner, of property shipped from any place in the United States to a foreign country, and carried from such place to a port of transshipment, or shipped from a foreign country to any place in the United States, and carried to such place from a port of entry, either in the United States, or an adjacent foreign country.

"All charges made for any service rendered or to be rendered, in the transportation of passengers or property as aforesaid, or in connection therewith, or for the receiving, delivering, storage, or handling of such property, shall be reasonable and just.

"And every unjust and unreasonable charge for such service is prohibited, and declared to be unlawful."

Analysing this section we find, that its provisions apply to the transportation of any property, shipped from any place in the United States to a foreign country, and carried from such place to a port of transshipment, or shipped from

a foreign country to any place in the United States, and carried to such place from a port of entry either in the United States, or an adjacent foreign country; and to such commerce as is here mentioned, all the provisions of the act are equally as applicable as they are to commerce wholly within the United States called interstate.

So much of the second and third sections of the act as concerns this discussion is as follows: .

"That if any common carrier subject to the provisions of this act shall, directly or indirectly, by any special rate, rebate, drawback, or other device, charge, demand, collect, or receive from any person or persons a greater or less compensation for any service rendered, or to be rendered, in the transportation of passengers or property, subject to the provisions of this act, than it charges, demands, collects or receives from any other person or persons for doing for him or them a like and comtemporaneous service, in the transportation of a like kind of traffic, under substantially similar circumstances and conditions, such common carrier shall be deemed guilty of unjust discrimination, which is hereby prohibited and declared to be unlawful.

"Sec. 3. That it shall be unlawful for any common carrier subject to the provisions of this act to make, or give, any undue or unreasonable preference or advantage, to any particular person, company, firm, corporation, or locality, or any particular description of traffic, in any respect whatsoever, or to subject any particular person, company, firm, corporation, or locality, or any particular description of traffic, to any undue or unreasonable prejudice or disadvantage in any respect whatsoever.'

It will be seen that the second section prohibits any carrier from demanding, or receiving, a greater or less charge from one person than from another, for a like and contemporaneous service, in the transportation of a like kind of