Court: Supreme Court of the United States; January 5, 1925; Federal Supreme Court; Federal Appellate Court
Justice Brandeis articulated the Court's opinion regarding cases concerning the regulation of interurban electric railroads engaged in interstate commerce by the Interstate Commerce Commission (ICC). The cases arose from appeals by Ohio municipalities challenging the ICC's orders that required independent interurban electric railroads to increase intrastate passenger fares, which the ICC determined were discriminatory against interstate commerce. The federal court for northern Ohio had previously voided these orders, claiming the ICC's jurisdiction was limited to railroads that are part of a general steam railroad system or those involved in freight transportation. However, the Court disagreed, asserting that the ICC's authority to combat unjust discrimination in interstate commerce extends to interurban electric railroads irrespective of their freight operations.
The Court referenced historical precedent, noting that the ICC had exercised jurisdiction over electric railroads since 1897 and had consistently regulated interurban railroads without distinction for freight involvement. The Court also highlighted that neither the original Act to Regulate Commerce nor its amendments prior to 1910 mentioned electric railroads specifically, and the ICC interpreted the act's language as inclusive of all common carriers, regardless of whether they operated by steam or electricity. The ruling emphasizes the ICC's broad regulatory authority over interurban electric railroads concerning passenger fare regulation.
The term "common carrier by railroad" as defined in various acts, including the Federal Employers’ Liability Act, the Safety Appliance Act, and the Hours of Service Act, has been applied to interurban electric railroads. The Commission's jurisdiction over these interurban roads is supported by Congressional actions that have amended the Act to Regulate Commerce, which in certain respects limited the authority over specific subjects. In 1908, the Commission received applications from interurban electric railroads to set up freight routes and joint rates with steam railroads. The 1910 Act restricted the Commission from establishing routes and rates between certain electric passenger railways and different types of railroads. The Transportation Act of 1920 expanded the Commission's powers while also excluding certain electric railways from its jurisdiction, distinguishing interurban electric railways from street and suburban railways. The Supreme Court, in Omaha, Council Bluffs Street Ry. Co. v. Interstate Commerce Commission, recognized the significant differences between street railroads and common carriers, affirming the latter's inclusion under the Interstate Commerce Act. The opinion emphasized that local matters should primarily be controlled by the states unless Congress explicitly states otherwise. Additionally, the argument that Congress could not authorize fare increases due to contracts between municipalities and carriers was dismissed, referencing New York v. United States. By July 1, 1914, a uniform accounting system for electric railways was implemented, with 271 companies reporting operations over 14,165.28 miles by the end of 1923.
The legal document references multiple cases before the Interstate Commerce Commission (I.C.C.) that address issues related to passenger and freight fares, primarily focusing on electric and interurban railways. It notes that out of 267 operating companies that submitted reports for 1917, 40 reported no freight revenue, and overall, freight revenue constituted only 9.4% of total revenue. Specific statutes (e.g., Section 422, 402, 439, 209, and 300 of 41 Stat. 488) are cited, highlighting exclusions for street, suburban, and interurban electric railways from certain regulations unless they are integrated into a general steam railroad system. These exclusions pertain to fair return determinations, issuance of certificates for line construction or abandonment, security issuance, guarantees to carriers post-federal control, and labor board regulations. The document underscores the limited regulatory framework applicable to electric railways not part of a broader steam railroad system.
