George W. Bush & Sons Co. v. Maloy

Background

A Maryland law required common carriers of freight by motor vehicle to get a permit before using certain public highways. The State’s Public Service Commission could refuse a permit if it thought the permit would harm the public’s welfare or convenience. George W. Bush & Sons Co. applied for a permit to operate an exclusively interstate freight business. The company said the roads were not congested, the highways could bear the weight, and its trucks would not cause any different burden than similar private use. The Commission denied the permit. The company sued; the trial court and Maryland’s highest court rejected the challenge, and the case came to the national court.

Reasoning

The main question was whether Maryland could refuse a permit and thereby block an interstate trucking business from using the public roads. The Court explained that earlier federal-aid laws show Congress intended state highways to be open to interstate commerce, and held that the Maryland action intruded on the national field of interstate trade regulation. The opinion noted two differences from a related case decided the same day — the highways here lacked federal construction aid, and the Commission acted in its discretion — but said those differences did not change the result. The Court reversed the state courts’ rulings.

Real world impact

The ruling limits a state’s power to use permit rules to exclude interstate carriers from public highways. Interstate freight companies are less vulnerable to blanket state refusals, while state officials must still manage and protect roads within federal limits.

Dissents or concurrances

A separate opinion argued the lower courts were correct, stressing states’ heavy burdens to build and maintain roads and the local nature of traffic problems, and urged deference to state regulation.