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The Supreme Court ruling Munn v. Illinois was significant in understanding government's power to regulate industry since it "upheld state and local governments' right to regulate industry that is essential to the public interest."
What was Munn v. Illinois law case?
Munn v. Illinois, (1877), case in which United States Supreme Court upheld the government's authority to regulate private industries.
Some main points related to Munn v. Illinois law case are-
- The case arose as a result of the Illinois legislature's response in 1871 to pressure from National Grange, a farmer's organization, by establishing maximum prices that private companies can charge for agricultural product storage and transportation.
- Munn and Scott, a Chicago grain warehouse firm, was later found guilty of violating the law, but the conviction was overturned on the grounds that the Illinois rule constituted an unconstitutional deprivation of assets without due process of law. In 1877, the Supreme Court heard the appeal.
- Chief Justice Morrison Remick Waite, speaking for the majority, stated that the state has the authority to regulate private industries that affect the public interest.
- Even though grain storage facilities were dedicated to public use, there own rates were regulated by the government.
- Furthermore, Waite declared that, while Congress has sole authority over interstate commerce, a state could act in the public interest without jeopardizing federal authority.
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