Wabash, St. Louis & Pacific Railroad Co. v. Illinois 1886
Background: An Illinois law had previously imposed a penalty on railroads that charged the same or more for passengers or cargo being shipped shorter distances than for longer distances. The intent of the statue was to avoid discriminating against smaller towns not served by competing railroads.
Issue: Did the state have the power to regulate the intrastate portion of an interstate railroad journey?
Ruling/Impact: The Supreme Court, in its ruling, invalidated an Illinois law prohibiting long/short haul transportation contracts for it violated the exclusive powers granted to Congress by the Constitution. Moreover the case resulted in the denial of states to regulate interstate rates for railroads and led to the creation of the Interstate Commerce Commission.
Issue: Did the state have the power to regulate the intrastate portion of an interstate railroad journey?
Ruling/Impact: The Supreme Court, in its ruling, invalidated an Illinois law prohibiting long/short haul transportation contracts for it violated the exclusive powers granted to Congress by the Constitution. Moreover the case resulted in the denial of states to regulate interstate rates for railroads and led to the creation of the Interstate Commerce Commission.