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Milwaukee Chicago and St. Paul Railway Company v. the State of Minnesota

Impact



At the time Chicago, Milwaukee, and St. Paul Railway Company v. the State of Minnesota was adjudicated, cases dealing with regulation of private corporations and monopolies were increasingly presented to the Supreme Court. In fact, another case was argued concurrently before the Court, Minneapolis Eastern Railway Co. v. the State of Minnesota. Interestingly, the railroads accepted the decision of the Minnesota Railroad and Warehouse Commission. No official record exists that positively identifies the reason for the company's decision to accept the state's rate, however, it is quite likely that in a legal atmosphere which was perceived as actively pursuing the extent of state and federal regulatory capabilities, the railroads capitulated in their own best interest. In upholding states' rights to found commissions and regulatory bodies to monitor common carriers, the U.S. Supreme Court showed its firm support to limit the potential for monopoly by railroads. Yet, even though the Court only indirectly mitigated unreasonable transport charges set by railroads, this and similar rulings ensured an economic climate which promoted free and fair market competition in the United States.



Additional topics

Law Library - American Law and Legal InformationNotable Trials and Court Cases - 1883 to 1917Milwaukee Chicago and St. Paul Railway Company v. the State of Minnesota - Significance, States' Rights Versus Commercial Rights, Impact, Related Cases, "our Overworked Supreme Court"