, 1873-08-07
THE RAILROAD LAW AND INTERSTATE
COMMElQE.

t. III tf,etr opinions on tho operation or tho no"
Railroad law. What tho Commissioners decided,
n shor ofloinl construction Of tho law WIS this:
u Tile charges from point west Of tho State to
, point within tho State must not be tho samo
IL or loss than tho chnrgoB from the west lno
If tho State over tho Bano road to tho aamo
point Of destination; 80 tho charges from
point within the State to point east Of tho State
must not DO the same aa or loss than tho chargoB
from tho Bamo point Of departure over tho sanlo
road to tile oaat line Of tho Stato; 80, also tho
charges from point wcst Of the State to point
caAt Of tito State must not DO tho aa1na as |
or lcBs than tho chargos ovor tho Hame
rond from tho wost limo to tho east limo Of tho |
stato." Those arc tho precise words Of tho |
Commissioners. II tloy moan anything, they |
moan TINT tho charges On freight from outside
tho sate to the inside, or from inside tho State
to tho outside, or from one State to another,
must DO creator (einco thoy cannot bo tho Hnme
nor 1oBs) thnn freight cnr1iod for the eamo dis
tanccs within tho State. II tho Commissioners
mean to aay that this is not Nh attompt to regu-
late commerce among the StatoH, thon 1t 10 in
order for thom to riae and explain what inter-
State commerce is.
Tho lato decision OF tho United States Supreme
Court in tho caso Of tho Philadelphia Il Roading
Railroad Company throws additional light on tho
limitation of State power with roforoneo to
Interstate commerce. Tho stato Of Ponnsyl-
vania passed statute requiring the railroads to
mako returns Of freight, and pay taxes on
freight "carriod ovor, through, md upon TINT
portion Of tho thoir limos within this
stato, US If tho whole of their respective
lines woro within this stato." The samo statute
authorized the railroads to add the tux imposed
under it to the tolls for carrying tho freight.
Tho Supreme Court declared this statute nncon-
atitutlonal. Tho main question involved was
whether this tax was 1oyiod upon tho corporation
or upon tho freight carricl botwoon tho stntcs.
It was hold that It was tax upon freight 80
carried, because 1t was added to tho tolls charged
for their transportation. Tho railroads could do
this oven il there woro no oxptcHB authorization
for it iu tho statute. Tho burden Of tho tax
therefore, falls upon tho freight transported,
or the shipper or coneignoo living outside
tho stato and II becomes restriction upon
Interstate commerce imposed by ono Of tho
States. The Court decided transportation Of
freight to DO q constituent Of commerce. ANY
tux On Interstate transportation Of freight
is, therefore, q regulation of commerce
among tho statos, the power to do which In
vested exclusively in Congress-. Tho Court COM
pared tho tho restriction to tho establishment
Of Custom Houses On tho border Of all tho
Btatca to demand a duty for allowing merchan-
disc to enter or loayo tho State on railroad or
canal lying within tho State boundaries. Tho
fact that the tax was intended to raiao money for
tho support of the State Government was do
cidod to havo nothing to do with tho question,
sinco tho effect WIS to lay IN embargo on
Interstate trade. Tho right wns fully conceded
to ovory State to tax it's own internal commerce,
tho franchises, property, and business Of its own
corporations, it must bo done in such d man
nor TINT Interstate intercourao, trade, Or COM
merco shall not be embarrassed or restricted.
The application of this decision to tho HAIL
road Commissioners construction Of tho now
1nlroad law in this State ia obvious. II q State
may not restrict or embarrasa in tho slightest de-
gree the commerce among tho States oven fol
tho purpose Of raising money for tho support oi
its own Government, then, .fortiori, 1t n,ay moi
enbarrasa or restrict Interstate commerce WHOM
1t has nothing to gain in tho way Of stato re-
sources. In tho Reading Rnilroad case, tho
Court mado the two points that thoro waa nj
constitutional limit to the amount Of tax which
oach State might lovy for its own purpoaes, ant
TINT every 9tate would haye tho right to demand
taxes on freight passing through it, l.
such right wore conceded to Pom
sylyania. Tho exercise Of such power OF
tho part Of all tho States would soot
diBablo the Western States from sending thol
products to market. This WAS probably one o
tho contingencies against which tho constitution
nj provision for tho regulation Of ntor-stat
commerce waB intondod to protect tho people
But if this practical prohibition Of inter-stat
commerce could be brought about through taxa
ton, it could bo moro speedily and efroctuall
secured through m arbitrary determination O
tho part Of tho several States to make tho rail
roads charge more for freight coming from otho
States, or going to othcr States, than for til
samo distance within tho 8tate Tho adoptio
of such q law III Indiana and Obi
would fenco out Illinois from tho mal
ket, as Illinois, through it's Commissioners. la
endoayorod to fenco out iowa and Minnesota
Fortunately tho Constitution Of tho Unto
statos will not allow the States to cut oac
othor's throatB in this way.
Tile fact Is that the Railroad Commissioner
1nado mistake In tloir Interpretation of tl
part Of tho law. They will do well to formal
withdraw the opinion they frat gavo, md thu
deprive tho railroads Of all oxcuso for applyin
tho pro rata feat.,ro to through freights. III
railroads may carry freight for nothing fro1
r., II