Brief Fact Summary. American Sugar Refining Company (American) purchased four refineries in Philadelphia, effectively monopolizing sugar refining in the United States. The company was subsequently sued by the federal government for engaging in combinations in restraint of trade.
Synopsis of Rule of Law. Exercise of the Commerce Power may not destroy the police power retained by the states.
Issue. Does the act of Congress overstep the authority given by the Commerce Clause?
Held. Yes. Appeals court judgment affirmed. The majority draws a distinction between the manufacture of a good and its final disposition. The Supreme Court of the United States (Supreme Court) also says that a good’s use in commerce is only incidental to its manufacture, and as such, the act overreached the power of Congress under the Commerce Clause.
That which does not belong to commerce is within the jurisdiction of the police power of the state, and that which does belong to commerce is within the jurisdiction of the United States.View Full Point of Law