George W. Bush & Sons Co. v. Maloy
Encyclopedia
George W. Bush & Sons Co. v. Malloy, 267 U.S. 317
(1925), was a decision by the United States Supreme Court, which held that the state statute under which the Maryland Public Service Commission
(PSC) issued certificates of public convenience and necessity to common carrier
s engaged in interstate commerce violated the Commerce Clause
of the United States Constitution
.
in 1922 amended the PSC statutes to require common carriers to obtain a certificate from the PSC based upon whether the proposed motor carrier service was "good for the public convenience and necessity." George W. Bush & Sons, which operated a truck line between Delaware and cities in eastern Maryland, was directed by the PSC to apply for a certificate. After a hearing, the PSC denied the application. The company then appealed to the state courts up through the Maryland Court of Appeals
, arguing that the state statute violated the Commerce Clause by attempting to regulate interstate commerce, but the state courts upheld the denial of the certificate by the PSC.
whose decision announced the same day as George W. Bush & Sons Co. Although the highways in Maryland were constructed without federal aid, the majority opinion noted that this was without significance as the federal legislation aiding in the construction of highways make clear the purpose of Congress that state highways shall be open to interstate commerce. Since the Maryland statute attempted to regulate interstate commerce, the statute as construed in this manner was held by the majority to invade a field reserved by the Commerce Clause for federal regulation.
The dissent by Justice McReynolds stated that the state statute did not discriminate against interstate commerce or impede it, and were necessary to protect the state roads. The dissent stated that this regulation was similar to that of harbor regulation by state governments, which the Supreme Court had upheld as being within the class of powers that a state could exercise until Congress had acted on the subject. The dissenting opinion was intended to also apply to Buck.
Justice McKenna is not listed as participating in the decision.
in argument in cases such as Buck, the Supreme Court never ruled on whether personal, noncommercial automobile travel on state highways was a constitutional right.
, which undercut the financial stability of many common carrier companies, there was a concern over the creation of an oversupply of passenger transportation which would drive many companies out of business. To meet this concern, Congress by the Motor Carrier Act of 1935 empowered the Interstate Commerce Commission
(ICC) to bring about equality of regulation between interastate and interstate motor carriers to prevent such an oversupply. The ICC by its regulation restricted interstate competition among common carriers through the issuance of certificates for specific routes based upon the public convenience and necessity. Thus the 1935 legislation essentially overturned the holding of George W. Bush & Sons Co.
Case citation
Case citation is the system used in many countries to identify the decisions in past court cases, either in special series of books called reporters or law reports, or in a 'neutral' form which will identify a decision wherever it was reported...
(1925), was a decision by the United States Supreme Court, which held that the state statute under which the Maryland Public Service Commission
Maryland Public Service Commission
The Maryland Public Service Commission is an independent administrative agency within the state government which regulates public utilities and certain taxi cab and other passenger services in Maryland...
(PSC) issued certificates of public convenience and necessity to common carrier
Common carrier
A common carrier in common-law countries is a person or company that transports goods or people for any person or company and that is responsible for any possible loss of the goods during transport...
s engaged in interstate commerce violated the Commerce Clause
Commerce Clause
The Commerce Clause is an enumerated power listed in the United States Constitution . The clause states that the United States Congress shall have power "To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes." Courts and commentators have tended to...
of the United States Constitution
United States Constitution
The Constitution of the United States is the supreme law of the United States of America. It is the framework for the organization of the United States government and for the relationship of the federal government with the states, citizens, and all people within the United States.The first three...
.
Background
The Maryland General AssemblyMaryland General Assembly
The Maryland General Assembly is the state legislature of the U.S. state of Maryland. It is a bicameral body. The upper chamber, the Maryland State Senate, has 47 representatives and the lower chamber, the Maryland House of Delegates, has 141 representatives...
in 1922 amended the PSC statutes to require common carriers to obtain a certificate from the PSC based upon whether the proposed motor carrier service was "good for the public convenience and necessity." George W. Bush & Sons, which operated a truck line between Delaware and cities in eastern Maryland, was directed by the PSC to apply for a certificate. After a hearing, the PSC denied the application. The company then appealed to the state courts up through the Maryland Court of Appeals
Maryland Court of Appeals
The Court of Appeals of Maryland is the supreme court of the U.S. state of Maryland. The court, which is composed of one chief judge and six associate judges, meets in the Robert C. Murphy Courts of Appeal Building in the state capital, Annapolis...
, arguing that the state statute violated the Commerce Clause by attempting to regulate interstate commerce, but the state courts upheld the denial of the certificate by the PSC.
Court's decision
The majority opinion noted that the PSC under the state statute used an arbitrary test for the granting of permits for common carriers engaged in interstate commerce, similar to the statutory scheme that was struck down in Buck v. Kuykendall, 267 U.S. 307 (1925), a companion caseCompanion case
The term companion cases refers to a group of two or more cases which are consolidated by a appellate court while on appeal and are decided together because they concern one or more common legal issues...
whose decision announced the same day as George W. Bush & Sons Co. Although the highways in Maryland were constructed without federal aid, the majority opinion noted that this was without significance as the federal legislation aiding in the construction of highways make clear the purpose of Congress that state highways shall be open to interstate commerce. Since the Maryland statute attempted to regulate interstate commerce, the statute as construed in this manner was held by the majority to invade a field reserved by the Commerce Clause for federal regulation.
The dissent by Justice McReynolds stated that the state statute did not discriminate against interstate commerce or impede it, and were necessary to protect the state roads. The dissent stated that this regulation was similar to that of harbor regulation by state governments, which the Supreme Court had upheld as being within the class of powers that a state could exercise until Congress had acted on the subject. The dissenting opinion was intended to also apply to Buck.
Justice McKenna is not listed as participating in the decision.
Critical response
The Supreme Court from 1924 to 1926 issued four decisions striking down attempts by states to regulate or to set tariff rates or fares of private commercial carriers that used state highways. Besides George W. Bush & Sons and Buck, these were Michigan Pub. Util. Comm'n v. Duke, 266 U.S. 570 (1925), and Frost & Frost Trucking Co. v. Railroad Comm'n of Cal., 271 U.S. 583 (1926). In these cases, although presented with the issue of the right to travelFreedom of movement
Freedom of movement, mobility rights or the right to travel is a human right concept that the constitutions of numerous states respect...
in argument in cases such as Buck, the Supreme Court never ruled on whether personal, noncommercial automobile travel on state highways was a constitutional right.
Subsequent developments
During the Great DepressionGreat Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...
, which undercut the financial stability of many common carrier companies, there was a concern over the creation of an oversupply of passenger transportation which would drive many companies out of business. To meet this concern, Congress by the Motor Carrier Act of 1935 empowered the Interstate Commerce Commission
Interstate Commerce Commission
The Interstate Commerce Commission was a regulatory body in the United States created by the Interstate Commerce Act of 1887. The agency's original purpose was to regulate railroads to ensure fair rates, to eliminate rate discrimination, and to regulate other aspects of common carriers, including...
(ICC) to bring about equality of regulation between interastate and interstate motor carriers to prevent such an oversupply. The ICC by its regulation restricted interstate competition among common carriers through the issuance of certificates for specific routes based upon the public convenience and necessity. Thus the 1935 legislation essentially overturned the holding of George W. Bush & Sons Co.