Lecture04Aup

Lecture04Aup - Regulatory Responses to the Railroad Problem...

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Unformatted text preview: Regulatory Responses to the Railroad Problem The Coming of Federal Railroad Regulation The Court and the Emergence of Federal Railroad Regulation The Court and the Emergence of Federal Railroad Regulation The Supreme Court occupies a special place in the history of railroad regulation Can States Regulate Interstate Commerce? Chicago Indianapolis Albany NYC QUESTION: -- Three shippers -- Each leaving Chicago, IL on same RR -- One headed for Indianapolis, IN; another for Albany, NY -- One headed for NYC, NY -- Can IL, IN, and NY legislatures regulate interstate RR's long-haul, short-haul ccc pricing decisions? Can States Regulate Interstate Commerce? Chicago NYC QUESTION: Two shippers Each leaving Chicago, IL on same RR for NYC One large shipper; one small shipper Can IL legislature regulate interstate RR's discriminatory pricing practices of a RR engaged in interstate commerce? The Court and the Emergence of Federal Railroad Regulation Question: In the absence of federal action, do Question the states have the right to fill the void What's the appropriate way to interpret congressional inaction? The Court and the Emergence of Federal Railroad Regulation Munn v. Illinois (1877) Challenges constitutionality of Illinois RR regulations affecting interstate commerce Court says (7-2) that it's constitutional The Court and the Emergence of Federal Railroad Regulation Until Congress acts in the realm of interstate railroad regulation, each state has a right to fill the void States have police power obligations to protect welfare of its citizens, even if in doing so, they indirectly affect interstate commerce The Court and the Emergence of Federal Railroad Regulation When Congress acts, all state regulation affecting interstate commerce must give way. The Court and the Emergence of Federal Railroad Regulation Wabash v. Illinois (1886) Court reverses itself (6-3) The Court and the Emergence of Federal Railroad Regulation Wabash v. Illinois (1886) Court reverses itself Congressional inaction to be interpreted as choice in favor of policy of laissez-faire The Court and the Emergence of Federal Railroad Regulation Why does Court reverse itself? The Court and the Emergence of Federal Railroad Regulation Why does Court reverse itself? 5 new members since Munn decision Doesn't explain why new Court felt the need to reopen the matter and rethink it's position The Court and the Emergence of Federal Railroad Regulation Why does Court reverse itself? 5 new members since Munn decision Doesn't explain why new Court felt the need to reopen the matter and rethink it's position Experience: growing maze of state regulation Uncertainty and unpredictability for RRs and business persons engaged in interstate commerce The Court and the Emergence of Federal Railroad Regulation Why does Court reverse itself? 5 new members since Munn decision Doesn't explain why new Court felt the need to reopen the matter and rethink it's position Experience: growing maze of state regulation Uncertainty and unpredictability for RRs and business persons engaged in interstate commerce Republican nationalism National economy should be the exclusive province of the national government The Court and the Emergence of Federal Railroad Regulation Why does Court reverse itself? 5 new members since Munn decision Doesn't explain why new Court felt the need to reopen the matter and rethink it's position Experience: growing maze of state regulations Uncertainty and unpredictability for RRs and business persons engaged in interstate commerce Republican nationalism National economy should be the exclusive province of the national government Republican conservatism More business-friendly regulation at national level Interstate Commerce Act First federal venture in business regulation Compromise legislation Interstate Commerce Act First federal venture in business regulation Compromise legislation RR's want law legally enforcing pooling contracts Interstate Commerce Act First federal venture in business regulation Compromise legislation RR's want law legally enforcing pooling contracts Western agrarians (farmers, small business, and shippers) want direct statutory regulation Interstate Commerce Act First federal venture in business regulation Compromise legislation RRs want law legally enforcing pooling contracts Western agrarians (farmers, small business, and shippers) want direct statutory regulation Eastern business persons want IRC Interstate Commerce Act Interstate Commerce Act of 1887 Creates 7 member Interstate Commerce Commission Qualified prohibitions on personal/place discriminations Prohibits pooling Interstate Commerce Act Railroads the big losers politically Interstate Commerce Act Railroads the big losers politically Interstate Commerce Act addresses shipper concerns about price discrimination Interstate Commerce Act Railroads the big losers politically Interstate Commerce Act addresses shipper concerns about price discrimination Addresses farmer suspicious of RR pooling Interstate Commerce Act Railroads the big losers politically Interstate Commerce Act addresses shipper concerns about price discrimination Addresses farmer suspicious of RR pooling But doesn't address problem of cutthroat competition at the terminal points Problems of /RR profitability Interstate Commerce Act One consequence: World War I and transportation crisis Basic lack of transportation facilities to mobilize economy for war in Europe ...
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This note was uploaded on 04/02/2008 for the course POL SCI 147C taught by Professor James during the Winter '08 term at UCLA.

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