Houston, East & West Texas Railway Co. v. United States
Supreme Court
234 U.S. 342 (1914)
A railway (plaintiff) connecting Texas cities and Shreveport, Louisiana charged substantially higher rates for goods moving from Shreveport into Texas than for comparable intrastate routes between Texas cities, severely disadvantaging interstate commerce from Shreveport; the Interstate Commerce Commission (defendant) ordered the railway to set its interstate rates comparable to its intrastate rates, and the railway sued in the Commerce Court, arguing this exceeded Congress's interstate commerce authority by effectively regulating intrastate rates. The Commerce Court upheld the ICC's authority, and the railway appealed.
Whether Congress may use its Commerce Clause power to regulate purely intrastate activities that have a substantial effect on interstate commerce.