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The Supreme Court case of Des Moines and Fort Dodge Railroad Company v. Wabash, St. Louis and Pacific Railway Company was a dispute between two railroad companies over the right to use a particular stretch of track. The Des Moines and Fort Dodge Railroad Company (DMFD) had a contract with the Chicago and Northwestern Railway Company (C&NW) to use a stretch of track between Des Moines and Fort Dodge, Iowa. The Wabash, St. Louis and Pacific Railway Company (WSLP) had a contract with the C&NW to use the same stretch of track. The DMFD argued that the WSLP was infringing on its rights by using the track without its permission. The Supreme Court ruled in favor of the DMFD, finding that the WSLP had violated the DMFD’s contract with the C&NW. The Court held that the WSLP had no right to use the track without the DMFD’s permission, and that the DMFD was entitled to damages for the WSLP’s infringement. The Court also held that the WSLP was liable for any damages caused by its use of the track.
In the dissenting opinion of Des Moines and Fort Dodge Railroad Company v. Wabash, St. Louis and Pacific Railway Company, Justice Harlan argued that the majority’s decision was an improper extension of federal power over state law. He believed that Congress had not intended to preempt all state laws concerning railroad rates when it passed the Interstate Commerce Act in 1887, as this would be a violation of states' rights under the Tenth Amendment. Furthermore, he argued that if Congress did intend to preempt such laws then they should have been more explicit about it in their legislation rather than leaving it up to interpretation by courts. As such, he concluded that Iowa's rate regulation statute was still valid despite being contrary to federal regulations set forth by the Interstate Commerce Commission (ICC).