This Supreme Court case, decided in 1877, established the principle that state governments could regulate private industries that affect the “common good.” The ruling stemmed from a challenge by grain elevator operators in Illinois who argued that the state’s attempts to fix maximum storage rates constituted an unconstitutional deprivation of property.
The significance of this legal decision lies in its expansion of governmental power to intervene in economic affairs. It provided a legal precedent for state regulation of businesses deemed essential to public welfare, paving the way for future legislation addressing issues such as railroad rates, utilities, and other crucial services. The case arose in response to public pressure on governments to address perceived abuses by monopolies and businesses operating in the public interest.
