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United States v. Joint Traffic Association

171 U.S. 505 (1898)

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United States v. Joint Traffic Association

United States Supreme Court
171 U.S. 505 (1898)

MJ

Facts

A group of railroads (defendants) entered into an agreement regarding the rates they would charge. Managers of the railroads could periodically change the rates, and failure to comply with those changes would result in a violation of the agreement. Violations of the agreement would result in a railroad no longer being party to the association and would require payment of $5,000 or more. The agreement was substantially similar to that analyzed and held to be unlawful in United States v. Trans-Missouri Freight Association. The United States (plaintiff) sued the railroads, claiming that the agreement constituted an unlawful restraint on trade in violation of antitrust statutes. The district court and court of appeals sided with the railroads. The United States appealed. In defending the lawfulness of the agreement, the railroads argued, among other things, that Congress did not have the power to pass antitrust statutes. Specifically, the railroads argued that the statute violated the Fifth Amendment.

Rule of Law

Issue

Holding and Reasoning (Peckham, J.)

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