Texas v. Interstate Commerce Commission

Background

The State of Texas sued two federal agencies — the Railroad Labor Board and the Interstate Commerce Commission — asking the Court to declare key parts of the Transportation Act of 1920 unconstitutional, cancel actions already taken under those parts for Texas railroads, and block further action. The challenged provisions deal with labor disputes, wage and working-condition decisions, and federal control over interstate rates, valuation, line construction, securities, and related matters affecting carriers in Texas.

Reasoning

The Court found multiple reasons not to hear the case in its original capacity. First, the defendants are federal corporate agencies rather than citizens of other States, undermining the basis for starting the suit in the Supreme Court. Second, much of the bill argued abstract questions about legislative power instead of a concrete dispute about present rights. Most importantly, the carriers and employees directly affected by the Board’s and Commission’s orders were not parties and must be heard. Statutes require challenges to the Commission’s orders to be brought in the district courts with the United States as a party. For these reasons, the Court declined to resolve the constitutional questions presented.

Real world impact

The suit was dismissed for lack of proper procedure and parties; the Court did not rule on whether the Transportation Act’s provisions are constitutional. Texas must pursue relief in the federal district courts where carriers and the United States can participate. Meanwhile, the Board’s and Commission’s orders remain in force unless overturned in the appropriate lower-court proceedings.