Alabama & Vicksburg Railroad Co. v. Mississippi Railroad Commission
In Alabama & Vicksburg Railroad Co. v. Mississippi Railroad Commission, 203 U.S. 496 (1906), the company made what it called a "rebilling rate" on grain shipped from Vicksburg to Meridian, Mississippi, which was applicable only in case of shipments received at Vicksburg over the Shreveport line.
It gave, however, to such shippers an option for a specified time to send other grain from Vicksburg instead, and thus it was in fact a local rate. To end this discrimination the state commission, in 1903, fixed the same rate for all grain products shipped from Vicksburg to Meridian.
It was urged that the effect of the order would be to force the plaintiff to enter into joint through interstate tariffs and divisions with all lines reaching Vicksburg by rail or river whether it desired such arrangements or not. The court sustained the order holding that it was competent for the State to enforce equality as to local transportation, and that this equality could not be defeated "in respect to any local shipments by arrangements made with or to favor outside companies."