Smith v. Interstate Commerce Commission

Citations

• 245 U.S. 33
• 38 S. Ct. 30
• 62 L. Ed. 135
• 1917 U.S. LEXIS 1783

Syllabus

<p>The Senate, by resolution, directed the Interstate Commerce Commission to investigate, take proof and report to it, among other things, what amount, if any, certain railroad companies, or any of them, had subscribed, expended or Contributed, to prevent other railroads from entering any of their territory, for maintaining political or legislative agents, for contributing to political campaigns, or for creating sentiment in favor of any of the plans of any of the railroads. In pursuance of this resolution, the Commission ordered an investigation, which was consolidated with another, arising from a complaint made by an individual and limited to the alleged improper issuance of free passes. At the hearing the president of one of the companies, subpoenaed as a witness, was asked by the counsel for the Commission what, if any, funds his company expended, in certain States, in certain years, for political campaign purposes, and charged upon its books to operating or legal expenses or construction account; also to explain certain vouchers, showing expenditures by the company but not the purpose; also whether the company expended funds in-a certain State “in a campaign against rate reductions,” and whether it was the company’s policy to make political compaign contributions. The witness having refused to answer, upon advice of counsel, the court below, upon the petition of the Commission, ordered him to do so.</p> <p>Held: (1) That the investigation, particularly as related to and defined by the questions asked, was not ‘to be regarded as directed to the political activities of the carrier or to its efforts to suppress competition, but as seeking to ascertain the amounts of expenditures made by the carrier, their allocation, and the manner in which they were charged upon its books.</p> <p>(2) That such an investigation was within the competency of the Commission and the questions prbper, in view of the general purposes and objects .of the Act to Regulate Commerce, the reg