HOUSTON, EAST &WEST TEXAS RAILWAY V. UNITED STATES (THE SHREVEPORT CASE)
234 U.S. 342 (1914)
NATURE OF THE CASE: This was a dispute over an Interstate Commerce Commission Order.
FACTS: The Interstate Commerce Commission alleged that discrimination was being laid
against Shreveport. It ordered the carriers who served that city to desist from charging
higher rates for the transportation of any commodity from Shreveport to Dallas and Houston,
respectively and intermediate points, than were contemporaneously charged for the carriage
of such commodity from Dallas and Houston toward Shreveport for equal distances, as the
Commission found that relations of rates to be reasonable. Ds opposed this rate setting
provision as they wanted a ruling that the Commission was without authority to compel their
reduction in order to equalize them with the lower intrastate rates. The Commerce Court held
that Ds were relieved of the obligation to lower rates but that they were at liberty to
comply with the Commission's requirements by increasing rates sufficiently on the intrastate
routes to remove the forbidden discrimination. Ds appealed. The invalidity of the order in
this aspect is challenged upon two grounds: (1) That Congress is impotent to control the
intrastate charges of an interstate carrier even to the extent necessary to prevent
injurious discrimination against interstate traffic; and (2) That, if it be assumed that
Congress has this power, still it has not been exercised, and hence the action of the
Commission exceeded the limits of the authority which has been conferred upon it under the
Commerce Clause.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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