Chicago, Milwaukee & St. Paul Railroad v. Wisconsin

Background

A sleeping-car company challenged Wisconsin laws about lowering the upper berth when someone occupied the lower berth. An earlier 1907 law let the lower-berth occupant direct whether the upper be opened or closed; a 1911 law instead forbade lowering an unoccupied upper until it was actually engaged or occupied. The state courts upheld the 1911 restriction, and the railroad sued, arguing the law took its property and interfered with how it ran its business.

Reasoning

The central question was whether the state could require a carrier to keep upper berths closed when not occupied. The Court said the rule effectively forced the company to give away sellable space and thus amounted to taking property without just compensation. The opinion rejected the argument that the law was a health or safety regulation, noting testimony and common knowledge showed lowering uppers did not endanger health or public comfort. The Court also found the rule unreasonably interfered with the company’s management and privacy protections for sleeping passengers. Citing earlier decisions, the Court held that such an uncompensated taking cannot be upheld merely because rates might later be adjusted.

Real world impact

The ruling protects sleeping-car companies’ right to sell and use upper berths and limits states from forcing carriers to provide free berth space without compensation. It preserves carriers’ ability to manage berths and protect passenger privacy. The case is sent back to the Wisconsin court for further proceedings consistent with this opinion.

Dissents or concurrances

Two Justices, McKenna and Holmes, dissented, signaling there was not complete agreement among the Justices on this outcome.