Q: What happened in the case Houston, East & West Texas Railway v. U.S?
(Substantial economic effects)(ICC had railway rates between Shreveport and cities in TX and shipments exclusively within Texas)
i.. Court found that Shreveport competed w/ certain Texas cities for shipments from other parts of TX. The lower TX intrastate rates were unfairly discriminating against the Texas-to-Shreveport interstate traffic.
ii. Court ultimately held that commerce power included the right to regulate all matters having such a close and substantial relation to interstate traffic that control is essential or appropriate to the security of that traffic. Though the activity regulated was intrastate, this was not out of reach of Congress because the ultimate object was protection of interstate commerce.
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