Munn v. Illinois (1877)
In 1871, the Illinois state legislature voted to set maximum rates on the cost of renting grain elevators and other storage facilities, as well as the transport of agricultural products. Later, in 1877, the Munn and Scott Company was found guilty of violating the law. The firm went to court on the grounds that the law was a deprivation of property without due process. The Supreme Court dismissed the case, as it found that states could regulate private industry involved with the common good. Grain storage and crop transport, being designated public interest, were therefore under the control of laws passed by the state. Furthermore, individual states could take action in commercial areas without hindering the federal control of interstate commerce. Overall, the case was an important precedent in public regulation of private businesses, despite later rulings limiting the scope of said regulation.
In 1871, the Illinois state legislature voted to set maximum rates on the cost of renting grain elevators and other storage facilities, as well as the transport of agricultural products. Later, in 1877, the Munn and Scott Company was found guilty of violating the law. The firm went to court on the grounds that the law was a deprivation of property without due process. The Supreme Court dismissed the case, as it found that states could regulate private industry involved with the common good. Grain storage and crop transport, being designated public interest, were therefore under the control of laws passed by the state. Furthermore, individual states could take action in commercial areas without hindering the federal control of interstate commerce. Overall, the case was an important precedent in public regulation of private businesses, despite later rulings limiting the scope of said regulation.