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32. Wharves.— Transportation Co. z: N. W. 801; S. C, 140 Wis. 265, 122 N. W.
Parkersburg, 107 U. S. 691, 27 L. Ed. 584, 809.



3469



REGULATION AND CONTROL.



§§ 3857-3859



§ 38 57. Packing Houses. — The acts of congress whereby the secretary of
agricuhure was empowered to have made a careful inspection of cattle, sheep,
and hogs at slaughter houses located in the several states, the products of which
were intended for sale in other states or foreign countries, are void because they
do not ])ertain to interstate or foreign commerce. ^*^

§ 3858. Terminals and Stockyards. — The power of congress to regulate
interstate commerce extends to the necessary switching ot cars and delivery at
terminal points ; and an action to recover penalties imposed by a state statute
upon carriers for discrimination between individuals in regard to terminal facili-
ties can not be maintained with respect to freight brought from another state, as
that matter is covered by a federal statute. ^^ The transportation of cattle from
a point in another state to the chutes at the stockyards at South St. Joseph, Mo.,
is a continuous shipment, all of which, including the transportation by the stock-
yards company over its own tracks, is of an interstate character and covered by
Twenty-Eight Hour Law June 29, 1906.3s The Washington Terminal Company,
which exclusively manages, operates, and controls all steam railroad passenger
traffic entering into and leaving the city of Washington, while within the zone oc-
cupied by its station and tracks, is engaged in interstate commerce. ^'■^

§ 3859. Connecting Carriers. — The Interstate Commerce Act, fixing pri-
mary responsibility on the initial carrier, and also fixing the liability of the con-
necting carrier, and providing for enforcing the same, is a regulation of commerce,
and the act controls interstate shipments, and makes an interstate shipment one
carriage as between the carriers.'*^ The imposition upon an interstate carrier
voluntarily receiving property for transportation from a point in one state to a
point in another state of liability to the holder of the bill of lading for a loss any-
where en route, with a right of recovery over against the carrier actually causing
the loss which is made by Act Feb. 4, 1887, in spite of any agreement or stipula-
tion limiting liability to its own line, is a valid regulation of interstate com-
merce.^ ^ The initial carrier of an interstate shipment is subject to federal reg-
ulation, and hence may not limit its liability to loss or damage occurring on its
own line, but is responsible for any loss or injury caused by it or any connecting
carrier. ■*-



36. Packing houses. — (1 Supp. Rev. St.
937, and 2 Supp. Rev. St. 403). United
States f. Boyer, S5 Fed. 425.

37. Terminals and stockyards. — Fielder
V. Missouri, etc., R. Co. (Tex. Civ. App.),
42 S. W. 362, affirmed in 46 S. W. 633, 93
Tex. 176.

38. United States v. St. Joseph Stock
Yards Co., 181 Fed. 625.

A terminal railroad company held a
common carrier engaged in interstate
transportation of property, within the
meaning of Interstate Commerce Act Feb.
4, 1887, § 1, as amended by Act June 29.

1900, § 1, and subject to the provisions of
sections 6 and 20 of said act, as amended
by §§ 2 and 7. Attorney General v.
Union Stock Yard, etc., Co., 192 Fed. 330.

39. ATc\amara v. Washington Terminal
Co., 37 App. D. C. 384.

40. Connecting carriers. — Pittsburg, etc.,
R. Co. V. Mitchell, 17.5 Ind. 196, 91 N. E.
735, 93 X. E. 996.

Interstate Commerce Act (Act Feb. 4,
1887, c. 104, 24 Stat. 386 [U. S. Comp. St.

1901, p. 31691) § 20, as amended by Hep-
burn Act (Act June 29, 1906, c. 3591, 34
Stat. 5S4 I U. S. Comp. St. Supp. 1909, p.



1163]), giving a right of action against an
initial carrier for negligence of connect-
ing carriers in interstate shipments, not-
withstanding any provision in the con-
tract of carriage to the contrary, is within
the power conferred on Congress to reg-
ulate commerce. St. Louis, etc., R. Co. v.
Heyser. 95 Ark. 412, 130 S. W. 562.

Act Feb. 4, 1887, c. 104, § 20, 24 Stat. 386
(U. S. Comp. St. 1901, p. 3169), as amended
by Act June 29, 1906, c. 3591, § 7, 34 Stat.
593 (U. S. Comp. St. Supp. 1909, p. 1163),
regulating liability of connecting carrier,
is a valid regulation of interstate com-
merce. Galveston, etc., R. Co. v. Wallace,
223 U. S. 481, 56 L. Ed. 516, 32 S. Ct. 205,
affirming judgment 117 S. W. 169, and
Galveston, etc., R. Co. t'. Crow (Tex. Civ.
App.), 117 S. W. 170.

41. Atlantic, etc., R. Co. v. Riverside
Mills, 219 U. S. 186, 55 L. Ed. 167, 31 S.
Ct. 164, 31 L. R. A., N. S., 7, affirming
judgment 168 Fed. 990; Louisville, etc., R.
Co. V. Scott, 219 U. S. 209, 55 L. Ed. 183,
31 S. Ct. 171, affirming judgment 133 Ky.
724, lis S. \V. 990. 19 Am. & Eng. Ann.
Cas. :vy.l.

42. Atlantic, etc., R. Co. v. Ward, 4 .Ala.
•App. 374, 58 So. 677.



§§ 3859-3860



CARRIERS.



3470



Requiring Carrier to Undertake to Carry to Destination. — The require-
ment that carriers who undertake to engage in interstate transportation, and as a
part of that business hold themselves out as receiving packages destined to places
beyond their own terminal, shall be required, as a condition of continuing in that
traffic, to obligate themselves to carry to the point of destination, using the lines
of connecting carriers as their own agencies, was not beyond the scope of the
power of regulation.-*'^ The damage caused by the failure of a connecting car-
rier in an interstate shipment to deliver the goods to the consignee, for which fail-
ure the initial carrier is made liable by the Carmack Amendment of June 29, 1906,
to the Interstate Commerce Act, is not traceable to a violation of the statute, re-
dress for which, under the original act, can only be had in the interstate com-
merce commission or in the federal courts, but such liability may be enforced by
an action in a state court of competent jurisdiction.-*^

§§ 3860-3937. Power of State— § 3860. In General.— The mere del-
egation by congress to the interstate commerce commission of certain powers is
not equivalent to specific action by Congress in respect to the particular matters
involved, which prevent a state from making regulation conducive to the welfare
of its citizens that may indirectly affect commerce.^"' Nothing can be done by a
state which will operate as a burden on the business of a carrier engaged in in-
terstate commerce, or impair the usefulness of its facilities or instruments of
interstate commerce.-*"

Reasonableness of Regulation. — Whether a state regulation affecting a pub-
lic corporation, as a railroad company, is within the powers of the state and valid,
or is invalid as beyond, such powers or in violation of constitutional rights of the
company, depends in the final test upon whether or not it is reasonable in view of
all the circumstances."*'^



43. Requiring carrier to undertake to
carry to destination. — A carrier voluntarily
receiving property for transportation to
a point on another line in another state is,
under the Carmack amendment of June
29, 1906, to the Interstate Commerce Act
of February 4, 1887, conclusively treated
as having made a througli contract of
carriage, rendering it liable for the other
carrier's negligent failure to deliver the
shipment to the consignee. It thereby
elected to treat the connecting carriers as
its agents, for all purposes of transporta-
tion and delivery. Galveston, etc., R. Co.
V. Wallace, 223 U. S. 481, 56 L. Ed. 516,
32 S. Ct. 205.

Proof of delivery of an interstate ship-
ment to the initial carrier, and of failure
to deliver the same to the consignee,
raises a presumption of negligence, so as
to give rise to the liability imposed by
the Carmack amendment of June 29, 1906,
to the Interstate Commerce Act of Feb-
ruary 4, 1887, for loss or damage caused
by it or any other carrier in the chain of
transportation, and casts upon it the bur-
den of proving that the loss resulted from
some cause for which such initial carrier
was not responsible in law or by con-
tract. Galveston, etc., R. Co. v. Wallace,
223 U. S. 481, 56 L. Ed. 516. 32 S. Ct. 205.

44. The jurisdiction of the state court
was attacked, first, on the ground that §
9 of the original Act of 1887 provided the
persons damaged by a violation of the
statute "might make complaint before the



commission * * * or in any district or
circuit court of the United States." 24
Stat, at L. 379, chap. 104, U. S. Comp.
Stat. 1901, p. 3154. It was contended that
Texas, etc., R. Co. v. Abilene Cotton Oil
Co., 204 U.' S. 426, 51 L. Ed. 553, 27 S. Ct.
350, 9 Am. & Eng. Ann. Cas. 1075, ruled
that this jurisdiction was exclusive, and
from that it was argued that no suit could
be maintained in a state court on any
cause of action created either by the orig-
inal Act of 1887 or by the amendment of
1906. But damage caused by failure to
deliver goods is in no way traceable to a
violation of the statute, and is not, there-
fore, within the provisions of §§ 8, 9 of
the act to regulate commerce. Galveston,
etc., R. Co. v. Wallace, 223 U. S. 481, 56 L-
Ed. 516, 32 S. Ct. 205; Atlantic, etc., R.
Co. V. Riverside Mills, 219 U. S. 186, 55
L. Ed. 167, 31 S. Ct. 164, 31 L. R. A., N.
S., 7.

45. Power of state. — Larabee Flour Mills
Co. V. Missouri Pac. R. Co., 74 Kan. 808,
88 Pac. 72. afSrmed in 211 U. S. 612, 53 L.
E:d. 352, 29 S. Ct. 214.

46. Sargent 7'. Rutland R. Co., 86 Vt.
328, 85 Atl. 654.

47. Reasonableness of regulation. —
Louisville, etc., R. Co. v. Railroad Comm.,
191 Fed. 757.

A bill alleged that complainant railroad
company operated an interstate line of
road to and through the city of Mobile,
Ala., where it maintained a passenger
station; that upon its trains it carried the



3471



REGULATION AND CONTROL.



i§ 3860-3861



Under Police Power. — In the absence of action by congress, the states may
exercise police power over interstate carriers.'*^ The grant to congress of the
power to regulate interstate commerce, in the absence of action by congress, does
not deprive the states of their police power to impose reasonable regulations on
interstate carriers for the protection of the lives, health, and safety of the peo-
ple.-io

Carrier Engaged in Both Interstate and Intrastate Commerce. — Where
a carrier was engaged in both interstate and intrastate commerce, it could not re-
fuse to perform services connected entirely with intrastate shipments, without dis-
crimination and for a rate established by it, on the theory that to require such
service would impose an unjust and unreasonable burden on defendant's inter-
state commerce, in violation of the constitution of the United States, art 1, § 8,
subsec. 3.^*^

§ 3861. Corporations. — Among the exceptions to the rule that the right of
a foreign corporation to do business in another state depends entirely on the will
oi the latter is when such business constitutes interstate commerce, and is there-
fore under the paramount authority of congress. ^^ The power of a state to dis-
crimin-^te between its own domestic corporations and those of other states, de-
sirous of transacting business within her jurisdiction, is clearly established; and
while it is well settled, as a general rule, that the right of a foreign corporation
to engage in business within a state other than that of its creation, depends solely
upon the will of such other state, it is equally well established as an exception to
that rule, that a state has no power to exclude a foreign corporation from doing
business within its limits, or to impose conditions and restrictions upon its en-
trance, where such corporation is an instrumentality of interstate or foreign com-
merce, or where its business constitutes such commerce. In these cases the busi-
ness of foreign corporations is solely within the paramount authority of con-
gress, and is protected against interference by state authority.^^ j\ state statute



mails and interstate passengers; that it
transported more passengers to and from
Mobile and more interstate passengers
through that City than the three other
roads entering the city combined, and
that the number passing through was
greatly in excess of the number taking or
leaving its trains there; that, by an order
of the railroad commission of Alabama, it
was required to stop all of its passenger
trains at a so-called union station, built
by an independent local corporation,
which would require all of its trains to
leave its own tracks and run over the
tracks of another company with heavy
curves for more than a mile, entailing a
delay of 40 minutes or more, or to build
tracks of its own, at a cost of at least
$50,000, across the yards and tracks of an-
other company, in which case its trains
would be subjected to irregular delays
which would derange its time schedules;
that the cost of said union station and the
facilities afforded thereby were greatly in
excess of the demands of the business;
and that, owing to the greater number of
complainants trains and cars, it would be
subjected to a greater part of the expense
of maintaining said station. Meld that, on
such facts, admitted l)y demurrer, the or-
der of the commission was an unreason-
able regulation in vif)lation of the inter-
state commerce clause of the constitu-



tion. Louisville, etc., R. Co. ■;:•. Railroad
Comm., 191 Fed. 757.

48. Under police power. — Central, etc.,
R. Co. z'. Groesbeck, 175 Ala. 189, 57 So.
380.

49. Central, etc., R. Co. 7'. Groesbeck,
175 Ala. 189, 57 So. 380.

50. Carrier engaged in both interstate
and intrastate commerce. — Louisville,
etc., R. Co. V. Higdon, 149 Ky. 321, 148
S. W. 26.

51. Foreign corporations. — Parsons-
Willis Lumber Co. v. Stuart, 182 Fed. 779.

52. Hooper z'. California, 155 U. S. 648,
39 L. Ed. 297, 15 S. Ct. 207; Horn Silver
Min. Co. V. State, 143 U. S. 305, 36 L. Ed.
164, 12 S. Ct. 403; New York v. Roberts,
171 U. S. 658, 43 L. Ed. 323, 19 S. Ct. 58,
70; Pensacola Tel. Co. v. Western Union
Tel. Co., 96 U. S. 1, 24 L. Ed. 708; Tele-
graph Co. z'. Texas, 105 U. S. 460, 26 L.
Ed. 1067; Gloucester Ferry Co. v. Penn-
sylvania, 114 U. S. 196, 29 L. Ed. 158, 5 S.
Ct. 826; Philadelphia, etc.. Steamship Co.
V. Pennsvlvania, 122 U. S. 326, 30 L. Ed.
1200, 7 vS. Ct. ni8; McCall V. California,
136 U. S. 104, 34 L. Ed. 392, 10 S. Ct. 881;
Norfolk, etc., R. Co. v. Pennsylvania, 136
U. S. 114, 34 L. Ed. 394, 10 S. Ct. 958;
Pickard r: Pullman Southern Car Co., 117
U. S. 34, 29 L. Ed. 785, 6 S. _ Ct. 635;
Rol)bins v. Shelby County Taxing Dist.,
120 U. S. 489, 30 L. Ed. 694, 7 S. Ct. 592;



§ 3861 CARRIERS. 3472

requiring a foreign railroad corporation to become a resident corporation, as a
condition of its right to continue to operate that part of its road within the state,
is not an interference with interstate commerce, within the inhibition of the fed-
eral constitution on that subject. ^^

Consolidation of Foreign and Domestic Corporations. — A state in per-
mitting a foreign corporation to become one of the constituent elements of a con-
solidated corporation organized under its laws, may impose such conditions as it
deems proper, not inconsistent with the power of congress to regulate interstate
and foreign commerce, or with the powers of the general government. There-
fore, where several railroad corporations organized under the laws of and operat-
ing lines through several states, consolidate under the laws of one of these states,
it is competent for such state to impose upon the new corporation a charge based
upon the amount of its capital stock, for the filing of the articles of consolidation
with the proper officer, such filing being a prerequisite to corporate existence, and
such charge constitutes no tax upon interstate commerce, or the right to carry on
the same, or the instruments thereof, and its enforcement involves no attempt
on the part of the state to extend its taxing power beyond its territorial limit. ^-^

Charter Fee. — A foreign sleeping car company can not be restrained from
doing local business in the state because of its refusal to pay the "charter fee" of
a given per cent of its entire capital stock, imposed by Gen. St. Kan. 1901, § 1264,
for the benefit of the permanent school fund, as a condition of doing such busi-
ness, since such requirement amounts to a burden or tax on the company's inter-
state business and on its property located and used outside the state. ^^

License for Keeping Office.— A statute imposing a tax upon the capital
stock of a corporation for the privilege of keeping an office in the state for the
use of its officers, stockholders, agents and employees, when applied to a foreign
railroad corporation, which, by virtue of its connections and certain traffic con-
tracts with other railroads, has become a link in a through line of road, over
which, as a part of the business thereof, freight and passengers are carried into
and out of the state, is unconstitutional and void as an interference with and as
imposing a burden upon interstate commerce. The business of such railroad com-
pany is interstate commerce, and the tax imposed by the statute is a tax upon the
business of the company, or in other words, a tax upon one of the means or in-
strumentalities of the company's interstate commerce business. ^^

Leloup V. Mobile, 127 U. S. 640, 32 L. Ed. simply the right of the state to determine
311, 8 S. Ct. 1380; Asher v. Texas, 128 U. upon what conditions its laws as_ to the
S. 129, 32 L. Ed. 368, 9 S. Ct. 1; Stouten- consolidation of corporations might be
burgh 7'. Hennick, 129 U. S. 141, 32 L. Ed. availed of, and that the payment of the
637, 9 S. Ct. 256; Crutcher v. Kentucky, charge was a condition imposed by the
141 U. S. 47, 35 L. Ed. 649, 11 S. Ct. 851; state upon the taking of corporate being-
Pembina Consol., etc.. Mill. Co. v. Penn- or the exercise of corporate franchises,
sylvania, 125 U. S. 181, 31 L. Ed. 650, 8 the right which depended wholly upon
S. Ct. 737; Postal Telegraph-Cable Co. v. the will of the state, and hence that liabil-
Adams, 155 U. S. 688, 39 L. Ed. 311, 15 S. ity for the charge was entirely optional.
Ct. 268; Waters-Pierce Oil Co. v. Texas, 55. Charter fee.— Judgment, Coleman v.
177 U. S. 28, 44 L. Ed. 657, 20 S. Ct. 518; Pullman Co., 90 Pac. 319, 75 Kan. 664, re-
Philadelphia Fire Ass'n v. New York, 119 versed in 216 U. S. 56, 54 L. Ed. 378, 30'
U. S. no, 30 L. Ed. 342, 7 S. Ct. 108. S. Ct. 232.

53. Commonwealth v. Mobile, etc., R. 56. License for keeping office.— The
Co., 64 S. W. 451, 23 Ky. L. Rep. 784, 54 statute of Pennsylvania taxing foreign
L. R. A. 916. corporations for the privilege of keeping^

54. Consolidation of foreign and domes- offices in the state for the use of officers,
tic corporations.— In Ashley v. Ryan, 153 etc., held void as to a foreign railroad
U. S. 436. 38 L. Ed. 773, 14 S. Ct. 865, the corporation engaged in carrying on inter-
court, sustaining the statute of Ohio as to state commerce, the office in question be-
the consolidation of corporations, said ing maintained solely for the furtherance
that the question presented was not the of the company's interstate commerce
power of the state to lay a charge upon business. Norfolk, etc., R. Co. v. Penn-
interstate commerce, or to prevent a for- sylvania, 136 U. S. 114, 34 L. Ed. 394, 10'
eign corporation from engaging in inter- S. Ct. 958, citing Gloucester Ferry Co. z^.
state commerce within its confines, but Pennsylvania, 114 U. S. 198, 29 L. Ed. 158„



3473 REGULATION AND CONTROL. §§ 3861-3862

License for Maintaining Passenger Traffic Agency. — A municipal ordi-
nance imposing a license tax upon a foreign railroad corporation for the priv-
ilege of maintaining an agency with the state for the purpose of soliciting passen-
ger traffic over its road between points in other states, is in conflict with the com-
merce clause of the constitution, since the business of such agency constitutes
interstate commerce.^"

Filing Articles of Incorporation in State. — A state law, providing that no
fore'gn railroad corporation may condemn land for or acquire a right of way for
or purchase or hold lands for depots, tracks, or other purposes until it shall have
become organized as a corporation under the laws of the state by filing articles of
incorporation as provided, construed to prohibit a foreign railroad corporation
from operating a railroad within the state as owner without complying with such
section, is not unconstitutional as an attempted interference with interstate com-
merce. •'•'^

§ 3862. Bridges. — A state may tax the instruments of interstate commerce
as it taxes other similar property, provided such tax is not laid upon the com-
merce itself."^ Therefore, the fact that a bridge over a navigable river flowing
between two states is an instrument of interstate commerce, does not exempt
from taxation by either state so much of the bridge as is within it. The taxa-
tion of such a bridge is not a regulation of commerce among the states, nor is it
the taxation of any agency of the federal government. The power of the state
in such case is none the less by reason of the fact that the bridge was erected
under the authority or with the consent of congress, and that the act authorizing
its construction declares that it shall be regarded as a post road. Nor does the
fact that the bridge between low-water mark on either side of the river is used
by the corporation controlling it for purposes of interstate commerce, exempt
it from taxation by the state within whose limits it is permanently located. In
taxing an interstate bridge, a state can properly include the franchise it has
granted the bridge company in the valuation of the company's property. The
fact that the tax on such franchise is to some extent affected by the amount
of the tolls received, and therefore may be supposed to increase the rate of tolls,
is too remote and incidental to make it a tax on the interstate business carried
on over or by means of the bridge. ^*^

5 S. Ct. 82G; Philadelphia, etc., Steamship McCall v. California, 136 U. S. 104, 10 S.

Co. V. Pennsylvania, 122 U. S. 326. 30 L. Ct. 881, 34 L. Ed. 392." Norfolk, etc., R.

Ed. 1200, 7 S. Ct. 1118; McCall v. Califor- Co. v. Pennsylvania, 136 U. S. 114, 34 L.

nia, 136 U. S. 104, 34 L. Ed. 392, 10 S. Ct. Ed. 394, 10 S. Ct. 958.

881. 57. License for maintaining passenger

The business of the through line of traffic agency.— :\IcCall v. California, 136

railroad consisting in a measure of carry- u. S. 104, 34 L. Ed. 392, 10 S. Ct. 881,

ing passengers and freight into Pennsyl- distinguishing Pembina Co'nsol., etc., Mill,

vania from other states and out of that Co. v. Pennsylvania, 125 U. S. 181, 31 L.

state into other states, is interstate com- Kd. 650. 8 S. Ct. 737: Smith v. Alabama,

merce. That being true, it logically fol- 124 U. S. 465, 31 L. Ed. 508, 8 S. Ct. 564.

lows that any one of the roads forming a ^^ pjli„ articles of incorporation in

part o , or constitutmg a Imk in, that state.-Plummer v. Chesapeake, etc., R.

through Ime is engaged in interstate ^^ ^43 j^ ^^^ -^3g g. w. 162, 33 L. R.

commerce, since the business 01 each one A N S Sf''

of those roads serves to increase the vol- '''■,-,"'.,"" ^ ■ t, • .

ume of business done by that through ^59. Bndges.-Covington, etc Bridge

line. Norfolk, etc., R. Co. v. Pennsylva- Co. v. Kentucky, 154 U. S. 204, 38 L. Ed.

nia, 136 U. S. 114, .34 L. Ed. 394, 10 S. Ct. '^^^^^ S. Ct. 1087; Henderson Bridge Co.

95g V. Henderson, 173 U. S. 592, 43 L. Ed.

"It is well settled by numerous deci- «23. 19 S. Ct. 553; Postal Telegraph-Ca-
sions of this court, that a state can not, ^^ Co. v. Charleston, 153 U. S. 692, 38 L.
under the guise of a license tax, exclude Ed. 871, 14 S. Ct. 1094.
from its jurisdiction a foreign corpora- 60. Pittsburgh, etc., R. Co. v. Board, 172
tion engaged in interstate commerce, or U. S. 32, 43 L. Ed. 354, 19 S. Ct. 90; Hen-
impose any burden upon such commerce derson Bridge Co. v. Henderson, 173 U.
within its limits. Some of the cases sus- S. 592, 43 L. Ed. 823, 19 S. Ct. 553; S. C,
taining this proposition are collected in 173 U. S. 624, 43 L. Ed. 835, 19 S. Ct. 877.



§ 3863 CARRIERS. 3474

§§ 3863-3864. Ferries— § 3863. In General.— The regulation of rates
of ferriage of foot passengers across the Hudson River from New Jersey
to New York is a regulation of interstate commerce beyond the power of New
Jersey, under the federal constitution. ''^



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