United States Supreme Court Cases & Opinions

U.S. Supreme Court

United States v. Elgin, Joliet & Eastern Ry. Co., 298 U.S. 492 (1936)

United States v. Elgin, Joliet & Eastern Railway Co.

No. 660

Argued April 8, 9, 1936

Decided May 25, 1936

298 U.S. 492

Syllabus

1. Legislative approval of a construction placed by this Court upon an Act of Congress is evidenced by failure to amend. P. 298 U. S. 500.

2. The mere fact that all the shares of a railroad corporation and all the shares of a manufacturing corporation are owned by a holding company does not make transportation by the one of the products of the other unlawful under the commodities clause of the Interstate Commerce Act. P. 298 U. S. 499.

United States v. Reading Co., 253 U. S. 26, distinguished. Existence of power in the holding company to control the railway company, not exercised in the present case, did not make the railway company the alter ego of the holding company.

11 F.Supp. 435 affirmed.

Appeal from a decree of the District Court of three judges which dismissed a bill brought by the United States to enjoin the Railway Company from hauling the products of certain manufacturing companies in alleged violation of the commodities clause of the Interstate Commerce Act.

Page 298 U. S. 497