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CHICAGO, M. & ST.P. RY. CO. V. PUBLIC UTIL. COMM'N, 274 U. S. 344 (1927)

U.S. Supreme Court

Chicago, M. & St.P. Ry. Co. v. Public Util. Comm'n, 274 U.S. 344 (1927)

Chicago, Milwaukee & St. Paul Railway Company v.

Public Utilities Commission of Idaho

No. 242

Argued March 17, 1927

Decided May 16, 1927

274 U.S. 344


1. A state cannot require a railroad to accept confiscatory rates on raw logs hauled intrastate to the mill upon the ground that the revenue from the log haul, combined with that received from the interstate haul of the manufactured products of the logs, is adequate. P. 274 U. S. 350.

Page 274 U. S. 345

2. Where rates found by a regulatory body to be compensatory are attacked a being confiscatory, the courts may inquire into the method by which it conclusion was reached. P. 274 U. S. 351.

3. Findings of the Interstate Commerce Commission that rates on certain commodities in a district embracing several state are unreasonable, and not expressly relating to intrastate rates, are to be construed as applying to interstate rates exclusively. P. 274 U. S. 351.

4. Order of the Director General of Railroads advancing interstate and intrastate rates and of the Interstate Commerce Commission authorizing a further advance held not to affect the rights of carriers or the duties of a state public utilities commission in respect of subsequent rate reductions. P. 274 U. S. 352.

5. The fact that the Interstate Commerce Commission found an interstate rate too high and authorized reduction is no basis for an order of a state commission reducing the intrastate rate on the same commodity, and an order requiring such reduction on that basis alone, without a hearing or consideration of evidence offered to prove the inadequacy of the rate so fixed, is arbitrary and a denial of due process. P. 274 U. S. 352.

41 Idaho 181 reversed.

Certiorari (269 U.S. 550) to a judgment of the Supreme Court of Idaho which affirmed, on appeal of the above named and three other railroads, an order of the respondent commission reducing rates on transportation of saw-logs intrastate in Idaho.

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