lation just passed in review: 1. Those arising out of the
safeguards which the Bill of Rights throws about property rights; 2.
Those arising out of the intermingling of the interstate and intrastate
operations of the same carriers, and the resulting tangency of State
with national power. Only the latter are considered at this point.
THE SHREVEPORT CASE
Section 1 of the act of 1887 contains the proviso "that the provisions
of this act shall not apply to 'transportation' wholly within the
State." Section 3 of the act prohibits "any common carrier subject to
the provisions" of the act from giving "any unreasonable preference or
advantage" to any person, firm, or locality. In the Shreveport
Case,[383] decided in 1914, the Commission, reading Sec. 3 independently
of Sec. 1, had ordered several Texas lines to increase certain of their
rates between points in Texas till they should approximate rates already
approved by the Commission to adjoining points in Louisiana. The latter
rates, being interstate, were admittedly subject to the Commission. The
local rates were as clearly within the normal jurisdiction of the State,
and had in fact been set by the Texas Railway Commission. The Court
found that the Interstate Commerce Commission had not exceeded its
statutory powers. The constitutional objection to the Commission's
action was stated thus: "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." This
objection the Court met, as follows: "Wherever the interstate and
intrastate transactions of carriers are so related that the government
of the one involves the control of the other, it is Congress, and not
the State, that is entitled to prescribe the final and dominant rule,
for otherwise Congress would be denied the exercise of its
constitutional authority and the State, and not the Nation, would be
supreme in the national field."[384] This, the Court continued, "is not
to say that Congress possesses the authority to regulate the internal
commerce of a State as such, but that it does possess the power to
foster and protect interstate commerce, and to take all measures
necessary or appropriate to that end, although intrastate transactions
of interstate carriers may thereby be controlled."[385]
THE ACT OF 1920 AND STATE RAILWAY RATE REGULATION
The power of the Commission under Sec. 3 of the act of
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