The intent of Congress is to be gathered from the words of the
act according to their ordinary acceptation, and the act should be
construed in the light of circumstances existing at the time it was
passed. Personal hardships cannot be considered, nor can the court
mold the statute to meet its views of justice in a particular
case.
The Court must have regard to all the words used by Congress in
a statute and give effect to them as far as possible, and the
introduction of a new word into a statute indicates an intent to
cure a defect in, and suppress an evil not covered by, the former
law.
The prohibition of the Act of February 4, 1887, c. 104, 2, 24
Stat. 379, as amended by the Act of June 29, 1906, c. 3591, 34
Stat. 584, against a carrier charging a different compensation from
that specified in its published tariff extends to the granting of
interstate transportation by carriers as compensation for injuries,
services, advertising, or property; the statute means that
transportation shall be paid for by all alike, and only in
cash.
The purpose of Congress in enacting the amendatory act of June
29, 1906, was to cut up by the roots every form of discrimination
in rates not specially excepted, and the act applied to existing
contracts and rendered those which were discriminatory illegal.
The court cannot on equitable grounds add an exception to the
classes to which a statute clearly applies if Congress forbears to
do so.
The power of Congress to regulate commerce among the states and
with foreign nations is complete and unrestricted except by
limitations in the Constitution itself, and extends to rendering
impossible
Page 219 U. S. 468
the enforcement by suit of contracts between carriers and
shippers, although valid when made.
The power of Congress to act in regard to matters delegated to
it is not hampered by contracts made in regard to such matters by
individuals, but contracts of that nature are made subject to the
possibility that, even if valid when made, Congress may, by
exercising it power, render them invalid.
An act of Congress rendering contracts in regard to interstate
commerce invalid does not infringe the constitutional liberty of
the citizen to make contracts, and an act, otherwise
constitutional, is not unconstitutional under the Fifth Amendment
as taking private property without compensation because it
invalidates contracts between individuals which conflict with the
public policy declared in the act.
After the enactment of the Act of June 29, 1906, it was unlawful
for a carrier to issue interstate transportation in pursuance of a
prior existing contract to do so as compensation for injuries
received, and, even though valid when made, such a contract cannot
now be enforced against the carrier by suit.
133 Ky. 652 reversed.
The facts, which involve the construction of provisions of the
Interstate Commerce Act relating to payment of fares on railways,
are stated in the opinion.
Page 219 U. S. 471
MR. JUSTICE HARLAN, delivered the opinion of the Court.
As the result of a collision in Kentucky of railroad trains
belonging to the Louisville & Nashville Railroad Company, which
operated various lines extending through that commonwealth as well
as into Tennessee and other states, the plaintiffs Mottley and wife
received serious personal injuries. The collision, it is alleged,
was caused by the gross carelessness and negligence of the agents
and servants of the railroad company.
After the collision, the plaintiffs and the company, on the
second of October, 1871, entered into a written agreement of which
the following is a copy:
"The Louisville & Nashville Railroad Company, in
consideration that E. L. Mottley and wife, Annie E. Mottley,
Page 219 U. S. 472
have this day released said company from all damages or claims
for damages for injuries received by them on the seventh day of
September, 1871, in consequence of a collision of trains on the
railroad of said company at Randolph's station, Jefferson County,
Kentucky, hereby agrees to issue free passes on said railroad and
branches now existing or to exist, to said E. L. Mottley and Annie
E. Mottley, for the remainder of the present year, and thereafter
to renew said passes annually during the lives of said Mottley and
wife or either of them."
The railroad company adhered strictly to this agreement for many
years, but finally refused further to perform it on the ground that
the Act of Congress of June 29, 1906, amendatory of the Act
Regulating Commerce, approved February 4, 1887, made its
enforcement illegal. Thereupon Mottley and wife brought suit in the
Circuit Court of the United States for the Western District of
Kentucky, to enforce the agreement, and obtained a decree in their
favor. 150 F. 406. But, upon a direct appeal to this Court, that
decree was reversed and the case was remanded with directions to
dismiss the suit for want of jurisdiction.
L. & N. R. Co.
v. Mottley, 211 U. S. 149;
Metcalf v. Watertown, 128 U. S. 586;
Tennessee v. Union Planters' Bank, 152 U.
S. 454,
152 U. S. 459.
The grounds upon which the federal court was held to be without
jurisdiction are not important here.
The present action was brought in the Circuit Court of Warren
County, Kentucky. The relief sought was that the defendant company
be required specifically to execute the above agreement by issuing
passes to the plaintiffs for the year 1909, and for every year
thereafter, so long as the plaintiffs should each live, over all
its roads in and out of Kentucky.
The railroad company resists any judgment that would compel it
further to perform the agreement sued on. It bases its defense
mainly on the Commerce Act of Congress
Page 219 U. S. 473
of June 29th, 1906, which became effective August 28th, 1906, 34
Stat. 838, Pt. 1, Res. No. 47. By that statute, Congress, among
other things, provided:
"SEC. 1. . . . No common carrier subject to the provisions of
this act shall, after January first, nineteen hundred and seven,
directly or indirectly, issue or give any interstate free ticket,
free pass, or free transportation for passengers,"
except to certain specified persons, the plaintiffs not being
within any of the expected classes.
"SEC. 6. . . . No carrier, unless otherwise provided by this
act, shall engage or participate in the transportation of
passengers or property, as defined in this act, unless the rates,
fares, and charges upon which the same are transported by said
carrier have been filed and published in accordance with the
provisions of this act; nor shall any carrier charge or demand or
collect or receive a greater or less or different compensation for
such transportation of passengers or property, or for any service
in connection therewith, between the points named in such tariffs,
than the rates, fares, and charges which are specified in the
tariff filed and in effect at the time; nor shall any carrier
refund or remit, in any manner, or by any device, any portion of
the rates, fares, and charges so specified, nor extend to any
shipper or person any privileges or facilities in the
transportation of passengers or property, except such as are
specified in such tariffs."
Feb. 4, 1887, 24 Stat. 379, c. 104; June 29, 1906, 34 Stat. 584,
586, Pt. II, c. 3591.
The Act of June 29th, 1906, regulating commerce and enlarging
the powers of the interstate Commerce Commission, made its
provisions applicable to
"any common carrier or carriers engaged in the transportation of
passengers or property . . . by railroad . . . from one state or
territory of the United States or the District of Columbia, to any
other state or territory of the United States or the District of
Columbia,"
etc., and in this respect it has not
Page 219 U. S. 474
been amended. It also provides that a common carrier violating
the clause forbidding it after January 1, 1907, directly or
indirectly to issue or to give any interstate free ticket, free
pass, or free transportation for passengers, should pay to the
United States a penalty of not less than $100 nor more than $2,000.
Any person (other than those of the excepted classes) who used any
such interstate free ticket, free pass, or free transportation,
became subject to a like penalty.
Id., 585, § 1.
The state circuit court, giving the relief asked, by its
judgment required the railroad company to issue to the plaintiffs
and to each of them a pass over its lines and branches for the year
1909, and thereafter to renew such passes annually during their
respective lives.
Upon appeal to the Court of Appeals of Kentucky, that judgment
was affirmed.
L. & N. R. Co. v. Mottley, 133 Ky.
652.
It may be, as suggested, that a refusal to enforce the agreement
of 1871 will operate as a great hardship upon the defendants in
error. But that consideration cannot control the determination of
this controversy. Our duty is to ascertain the intention of
Congress in passing the statute upon which the railroad company
relies as prohibitive of the further enforcement of the agreement
in suit. That intention is to be gathered from the words of the
act, interpreted according to their ordinary acceptation, and, when
it becomes necessary to do so, in the light of the circumstances as
they existed when the statute was as they existed when the statute
was passed.
Platt v. Union Pacific R. Co., 99 U. S.
48,
99 U. S. 64. The
court cannot mold a statute simply to meet its views of justice in
a particular case. Having, in the mode indicated, ascertained the
will of the legislative department, the statute as enacted must be
executed unless found to be inconsistent with the supreme law of
the land.
In our consideration of the case, it will be assumed -- indeed,
the parties themselves assume -- that the agreement
Page 219 U. S. 475
of 1871 was not, when made, in conflict with the Constitution or
laws of the United States. But we must first inquire whether such
an agreement, if made after the passage of the original and
amendatory commerce acts, would have been valid under those acts.
If those acts forbid agreements of that character, we must then
inquire whether the one in suit can be now enforced simply because
it was valid when made.
The Act of February 4th, 1887, regulating commerce, declared it
to be an unjust and unlawful discrimination for any carrier subject
to the provisions of that act, directly or indirectly, by any
special rate, rebate, drawback, or other device, to charge, demand,
collect, or receive from any person or persons "a greater or less
compensation" for any service rendered or to be rendered in the
transportation of passengers or property than was charged,
demanded, collected, or received from any other person or persons
for doing him or them a like and contemporaneous service in the
transportation of a like kind of traffic under substantially
similar circumstances and conditions. 24 Stat. 379, c. 104, §
2. But the Act of June 29th, 1906, made a material addition to the
words of the act of 1887, for it expressly prohibited any carrier,
unless otherwise provided, to demand, collect, or receive "a
greater or less or different compensation" for the transportation
of persons or property, or for any service in connection therewith,
than the rates, fares, and charges specified in the tariff filed
and in effect at the time. We cannot suppose that this change was
without a distinct purpose on the part of Congress. The words "or
different," looking at the context, cannot be regarded as
superfluous or meaningless. We must have regard to all the words
used by Congress, and, as far as possible, give effect to them.
Market v. Hoffman, 101 U. S. 112,
101 U. S. 115.
The history of the acts relating to commerce shows that Congress,
when introducing into the Act of 1906 the word "different," had in
mind the purpose
Page 219 U. S. 476
of curing a defect in the law, and of suppressing evil practices
under it by prohibiting the carrier from charging or receiving
compensation except as indicated in its published tariff. 11th
Ann.Rep.Interstate Com.Com. 141; 19th
id., 78, 15; 40
Cong.Rec. Pt. 7, p. 6608;
id., 6617;
id., 7428,
7434; Rept. of Confer.Com., 40 Cong.Rec. 9522; 42 Cong.Rec. Pt. 2,
p. 1746.
In our opinion, after the passage of the Commerce Act, the
railroad company could not lawfully accept from Mottley and wife
any compensation "different" in kind from that mentioned in its
published schedule of rates. And it cannot be doubted that the
rates or charges specified in such schedule were payable only in
money. They could not be paid in any other way without producing
the utmost confusion and defeating the policy established by the
acts regulating commerce. The evident purpose of Congress was to
establish uniform rates for transportation, to give all the same
opportunity to know what the rates were, as well as to have the
equal benefit of them. To that end, the carrier was required to
print, post, and file its schedules, and to keep them open to
public inspection. No change could be made in the rates embraced by
the schedules except upon notice to the Commission and to the
public. But an examination of the schedules would be of no avail
and would not ordinarily be of any practical value if the published
rates could be disregarded in special or particular cases by the
acceptance of property of various kinds, and of such value as the
parties immediately concerned chose to put upon it in place of
money for the services performed by the carrier.
That money only was receivable for transportation is the basis
upon which the Interstate Commerce Commission has proceeded, for,
in one of its Conference Rulings (207) issued in 1909, the
Commission held that nothing but money could be lawfully received
or accepted in payment for transportation, whether of passengers
or
Page 219 U. S. 477
property, for any service connected therewith,
"it being the opinion of the Commission that the prohibition
against the charging or collecting a greater or less or
different compensation than the established rates or fares
in effect at the time precludes the acceptance of service,
property, or other payment in lieu of the amount specified in the
published schedules."
It is now the established rule that a carrier cannot depart to
any extent from its published schedule of rates for interstate
transportation on file without incurring the penalties of the
statute.
Union Pac. Ry. Co. v. Goodridge, 149
U. S. 690,
149 U. S. 691;
Gulf, Col. &c. Ry. Co. v. Hefley, 158 U. S.
98,
158 U. S. 102;
ICC v. Ches. & Ohio Ry. Co., 200 U.
S. 361,
200 U. S. 391;
Texas & Pac. Ry. Co. v. Abilene Cotton Oil Co.,
204 U. S. 426,
204 U. S. 439.
That rule was established in execution of a public policy which, it
seems, Congress deliberately adopted as applicable to the
interstate transportation of persons or property. The passenger has
no right to buy tickets with services, advertising, releases, or
property, nor can the railroad company buy services, advertising,
releases, or property with transportation. The statute manifestly
means that the purchase of a transportation ticket by a passenger,
and its sale by the company, shall be consummated only by the
former paying cash and by the latter receiving cash of the amount
specified in the published tariffs. In the first of the cases last
above cited (the
Goodridge case), the Court, referring to
the practice of allowing rebates, said:
"So opposed is the policy of the act to secret rebates of this
description that it requires a printed copy of the classification
and schedule of rates to be posted conspicuously in each passenger
station for the use of the patrons of the road, that everyone may
be apprised not only of what the company will exact of him for a
particular service, but what it exacts of everyone else for the
same service, so that, in fixing his own prices, he may know
precisely with what he has to compete. To hold a defense thus
pleaded to be
Page 219 U. S. 478
valid would open the door to the grossest frauds upon the law,
and practically enable the railroad company to avail itself of any
consideration for a rebate which it considers sufficient, and to
agree with the favored customer upon some fabricated claim for
damages which it would be difficult, if not impossible, to
disprove. For instance, under the defense made by this company,
there is nothing to prevent a customer of the road who has received
a personal injury from making a claim against the road for any
amount he chooses, and in consideration thereof, and of shipping
all his goods by that road, receiving a rebate for all goods he may
ship over the road for an indefinite time in the future. It is
almost needless to say that such a contract could not be supported.
There is no doubt of the general proposition that the release of an
unliquidated claim for damages is a good consideration for a
promise, as between the parties, and if no one else were interested
in the transaction, that rule might apply here; but the
legislature, upon grounds of public policy and for the protection
of third parties, has made certain requirements with regard to
equality of rates which in their practical application would be
rendered nugatory if this rule were given full effect."
That Congress had the constitutional power to adopt such a
policy and to prescribe appropriate means to give it effect we do
not doubt.
It is said, however, that, as the contract of Mottley and wife
with the railroad company was originally valid, it cannot be
supposed that Congress intended by the Act of 1906 to annul or
prevent its enforcement. But the purpose of Congress was to cut up
by the roots every form of discrimination, favoritism, and
inequality except in the cases of certain excepted classes to which
Mottley and his wife did not belong, and which exceptions rested
upon peculiar grounds. Manifestly, from the face of the Commerce
Act itself, Congress, before taking final action, considered the
question as to what exceptions, if any, should
Page 219 U. S. 479
be made in respect of the prohibition of free tickets, free
passes, and free transportation. It solved the question when,
without making any exceptions
of existing contracts, it
forbade by broad, explicit words
any carrier to charge,
demand, collect, or receive a "greater or less or different
compensation" for
any services in connection with the
transportation of passengers or property than was specified in its
published schedules of rates. The Court cannot add an exception
based on equitable grounds when Congress forbore to make such an
exception.
Yturbide v. United
States, 22 How. 290,
63 U. S. 293. The
words of the act therefore must be taken to mean that a carrier
engaged in interstate commerce cannot charge, collect, or receive
for transportation on its road anything but money. In
Armour
Packing Co. v. United States, 209 U. S.
56,
209 U. S. 81,
this Court said:
"There is no provision excepting special contracts from the
operation of the law. One rate is to be charged, and that the one
fixed and published in the manner pointed out in the statute, and
subject to change in the only way open by the statute. There is no
provision for the filing of contracts with shippers, and no method
of making them public defined in the statute. If the rates are
subject to secret alteration by special agreement, then the statute
will fail of its purpose to establish a rate duly published, known
to all, and from which neither shipper nor carrier may depart."
So, in
Adams Express Co. v. United States, 212 U.
S. 522,
212 U. S.
532-533:
"But the power of Congress over interstate transportation
embraces all manner of carriage of that character, whether
gratuitous or otherwise; and, in the absence of express exceptions,
we think it was the intention of Congress to prevent a departure
from the published rates and schedules in any manner whatsoever. If
this be not so, a wide door is opened to favoritism in the carriage
of property in the instances mentioned, free of charge. If it is
lawful, in view of the provisions of the Interstate Commerce Act,
to
Page 219 U. S. 480
issue franks of the character under consideration in this case,
then this right must be founded upon some exception incorporated in
the act."
It is further said that the passes contemplated by the parties
were not strictly free passes, for, it is argued, the railroad
company would receive a valuable consideration for each one issued
by it. This view is more plausible than sound, and does not meet
the difficulty. Suffice it to say in this case that such passes,
when issued, would be illegal under the Act of Congress by reason
of their not being paid for in money according to the company's
schedule of rates, but in consideration only of the release by
Mottley and wife of their claim for damages on account of the
collision in question.
We now come to the question whether, assuming that the agreement
of 1871 was valid when made, could Congress, by any statute
subsequently enacted, make its enforcement by suit impossible.
There are certain propositions at the base of this inquiry which we
need not discuss at large, because they have become thoroughly
established in our constitutional jurisprudence. One is that the
power granted to Congress to regulate commerce among the states and
with foreign nations is complete in itself, and is unrestricted
except by the limitations upon its authority to be found in the
Constitution.
Gibbons v.
Ogden, 9 Wheat. 1;
Brown v.
Maryland, 12 Wheat. 419;
Addyston Pipe and
Steel Co. v. United States, 175 U. S. 211,
175 U. S. 229;
Scranton v. Wheeler, 179 U. S. 141,
179 U. S.
162-163;
C. B. & Q. R. Co. v. Illinois,
200 U. S. 561;
Union Bridge Co. v. United States, 204 U.
S. 364,
204 U. S. 400;
Atlantic Coast Line &c. v. Riverside Mills,
219 U. S. 186,
219 U. S.
202.
In the
Addyston Pipe case, this Court said that, under
its power to regulate commerce, Congress
"may enact such legislation as shall declare void and prohibit
the performance of any contract between individuals or
corporations
Page 219 U. S. 481
where the natural and direct effect of such a contract will be,
when carried out, to directly, and not as a mere incident to other
and innocent purposes, regulate to any substantial extent
interstate commerce."
In the
Scranton case, where a riparian owner sought
compensation from the government because his access to navigability
had been materially obstructed by a pier constructed by the
government on the submerged grounds in front of his land, this
Court said:
"The riparian owner acquired the right of access to navigability
subject to the contingency that such right might become
valueless in consequence of the erection under competent authority
of structures on the submerged lands in front of his property, for
the purpose of improving navigation. When erecting the pier in
question, the government had no object in view except, in the
interest of the public, to improve navigation. It was not designed
arbitrarily or capriciously to destroy rights belonging to any
riparian owner. What was done was manifestly necessary to meet the
demands of international and interstate commerce."
In the
Union Bridge Co. case, the question was as to
the constitutional authority of the government to require the
bridge company to make certain changes or alterations in a bridge
across a navigable river of the United States in Pennsylvania, and
which bridge the company owned and constantly used. It was admitted
that the bridge had been lawfully erected. But ultimately, in view
of the necessities of interstate commerce, it had become an
unreasonable obstruction to free, open navigation by vessels and
boats then in use, and, for that reason alone, the government, by
its constituted authorities, proceeding under an act of Congress,
ordered the bridge company,
at its own cost, to make
certain changes and alterations in the structure. This Court held
that there was no taking of property for public use in the
constitutional sense, and that, although the bridge, when erected
under the authority of
Page 219 U. S. 482
Pennsylvania, may have been a lawful structure, and although it
may not have been an unreasonable obstruction to commerce,
as
then carried on,
"it must be taken, under the cases cited and upon principle, not
only that the company, when exerting the power conferred upon it by
the state, did so with knowledge of the paramount authority of
Congress to regulate commerce among the states, but that it erected
the bridge
subject to the possibility that Congress might at
some future time, when the public interest demanded, exert its
power by appropriate legislation to protect navigation against
unreasonable obstructions."
Long before the above cases were decided it was said in
Legal Tender
Cases, 15 Wall. 550,
82 U. S. 551,
that
"as, in a state of civil society, property of a citizen or
subject is ownership, subject to the lawful demands of the
sovereign, so contracts must be understood as made in reference to
the possible exercise of the rightful authority of the government,
and no obligation of a contract can extend to the defeat of
legitimate government authority."
These principles control the decision of the present question.
The agreement between the railroad company and the Mottleys must
necessarily be regarded as having been made subject to the
possibility that, at some future time, Congress might so exert its
whole constitutional power in regulating interstate commerce as to
render that agreement unenforceable or to impair its value. That
the exercise of such power may be hampered or restricted to any
extent by contracts previously made between individuals or
corporations is inconceivable. The framers of the Constitution
never intended any such state of things to exist.
It is said that if Congress intended by the Commerce Act to
embrace such a case as this, then the act is repugnant to the
Constitution. Does the act infringe upon the constitutional liberty
of the citizen to make contracts? Manifestly not. In the
Addyston Pipe case (p.
175 U. S.
228), above cited, the Court said:
"We do not assent to the
Page 219 U. S. 483
correctness of the proposition that the constitutional guaranty
of liberty to the individual to enter into private contracts limits
the power of Congress, and prevents it from legislating upon the
subject of contracts"
relating to interstate commerce. Again:
"But it has never been, and in our opinion ought not to be, held
that the word [liberty] included the right of an individual to
enter into private contracts upon all subjects, no matter what
their nature, and wholly irrespective (among other things) of the
fact that they would, if performed, result in the regulation of
interstate commerce, and in the violation of an act of Congress
upon that subject. The provision in the Constitution does not, as
we believe, exclude Congress from legislating with regard to
contracts of the above nature
while in the exercise of its
constitutional right to regulate commerce among the states. .
. . Anything which directly obstructs and thus regulates that
commerce which is carried on among the states, whether it is state
legislation or private contracts between individuals or
corporations, should be subject to the power of Congress in the
regulation of that commerce."
These authorities and principles condemn the proposition that
the defendants in error had the constitutional right, pursuant to
or because of the agreement of 1871 and during their respective
lives, to accept and use free transportation for themselves as
passengers on an interstate train after Congress forbade, under
penalty, any interstate carrier to demand, collect, or receive
compensation for transportation, or any interstate passenger not
within the classes excepted by the act, to use transportation
tickets, except upon the basis fixed by the carrier's published
schedule of rates. After the Commerce Act came into effect, no
contract that was inconsistent with the regulations established by
the act of Congress could be enforced in any court. The rule upon
this subject is thoroughly established.
Page 219 U. S. 484
It is not determinative of the present question that the
Commerce Act, as now construed, will render the contract of no
value for the purposes for which it was made. In
Knox v.
Lee, 12 Wall. 457, above cited, the Court,
referring to the Fifth Amendment, which forbids the taking of
private property for public use without just compensation or due
process of law, said:
"That provision has always been understood as referring only to
a direct appropriation, and not to consequential injuries resulting
from the exercise of lawful power. It has never been supposed to
have any bearing upon or to inhibit laws that indirectly work harm
and loss to individuals. A new tariff, an embargo, a draft, or a
war may inevitably bring upon individuals great losses -- may,
indeed, render valuable property almost valueless. They may destroy
the worth of contracts."
In
Fitzgerald v. Grand Trunk Ry. Co., 63 Vt. 169, 173,
which was the case of a contract for the transportation of lumber
through several states, the Supreme Court of Vermont said:
"Such commerce is solely regulated by Congress, and when parties
make contracts to engage in interstate commerce, they are held to
do so upon the basis and with the understanding that changes in the
law applicable to their contracts may be made. There can, in the
nature of things, be no vested right in an existing law which
precludes its change or repeal, nor vested right in the omission to
legislate upon a particular subject which exempts a contract from
the effect of subsequent legislation upon its subject matter by
competent legislative authority."
In Pomeroy on Contracts, § 280 (Specific Performance),
after observing that an illegal contract cannot be made the basis
of any judicial proceeding and that no action in law or equity
could be maintained upon it, it was said:
"This impossibility of enforcement exists whether the agreement
is illegal in its inception or whether, being valid when
Page 219 U. S. 485
made, the illegality has been created by a subsequent
statute."
Among the cases cited by the author in support of that view was
Atkinson v. Ritchie, 10 East, 530, 534, in which the Chief
Justice, Lord Ellenborough, delivering the opinion of the court,
said:
"That no contract can properly be carried into effect, which was
originally made contrary to the provisions of law, or which, being
made consistently with the rules of law at the time, has become
illegal in virtue of some subsequent law, are propositions which
admit of no doubt."
In
Kentucky & Indiana Bridge Company v. Louisville &
Nashville Railroad Co., 34 Am. & Eng. R. Cas. 630, Judge
Cooley said:
"But the Act to Regulate Commerce is a general law, and
contracts are always liable to be more or less affected by general
laws, even when in no way referred to. . . . But this incidental
effect of the general law is not understood to make it a law
impairing the obligation of contracts. It is a necessary effect of
any considerable change in the public laws. If the legislature had
no power to alter its police laws when contracts would be affected,
then the most important and valuable reforms might be precluded by
the simple device of entering into contracts for the purpose. No
doctrine to that effect would be even plausible, much less sound
and tenable."
"If one agrees," said Mr. Parsons, "to do a thing which it is
lawful for him to do, and it becomes unlawful by an act of the
legislature, the act avoids the promise." Parsons on Contracts (6th
Ed.) 675.
We forbear any further citation of authorities. They are
numerous, and are all one way. They support the view that, as the
contract in question would have been illegal if made after the
passage of the Commerce Act, it cannot now be enforced against the
railroad company, even though valid when made. If that principle be
not sound, the result would be that individuals and corporations
could, by contracts between themselves, in anticipation
Page 219 U. S. 486
of legislation, render of no avail the exercise by Congress, to
the full extent authorized by the Constitution, of its power to
regulate commerce. No power of Congress can be thus restricted. The
mischiefs that would result from a different interpretation of the
Constitution will be readily perceived.
In our opinion, the relief asked by the plaintiffs must, upon
principle and authority, be denied, that the railroad company
rightly refused, after the passage of the Commerce Act, further to
comply with the agreement of 1871, and that the decree requiring
performance of its provisions by issuing annual passes was
erroneous.
Whether, without enforcing the contract in suit, the defendants
in error may, by some form of proceeding against the railroad
company, recover or restore the rights they had when the railroad
collision occurred is a question not before us, and we express no
opinion on it.
The judgment is reversed, and the cause is remanded for such
further proceedings as may be deemed proper, not inconsistent with
the views herein expressed.
Reversed.