The Hoch-Smith Resolution: A Study of a Congressional Mandate on Transportation
2022
Malott, E. O.
Preface: This research aimed to study the effectiveness of a legislative direction on rate making to a regulatory commission. In a strict sense, the Hoch-Smith resolution may not be termed a legislative mandate, but most of those affected by it looked upon its directions as a mandate. Passed by Congress and signed by the President in 1925, the resolution, without amendment, remains in the statutes today. Its importance was substantially reduced in 1930 by the interpretation of the United States Supreme Court in the Deciduous Fruit Case. Since then, the resolution has been moved into the background as a legal basis for seeking special consideration for rates on agricultural commodities on commodities of depressed industries. Undoubtedly, the fact that the resolution has not been repealed keeps it in the minds of the Interstate Commerce Commission, of shippers in depressed industries, and of shippers of agricultural commodities. Nevertheless, as an active force in rate-making the resolution dropped out with the Supreme Court interpretation. This report gives particular attention to the period before the 1930 adjudication and to the period following the adjudication and does not attempt to evaluate the present indirect influence. The question of the effectiveness of the principle may properly be resolved through the examination of these two periods.
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