Swift and Company v. United States

Swift and Company v. United States, 196 U.S. 375 (1905), is a landmark decision of the United States Supreme Court.

The federal government sued Swift and Company and other major meatpackers under the Sherman Act, alleging a combination to fix prices and monopolize the meat industry. The defendants argued that their activities were local (slaughtering and processing) and thus beyond federal reach under the Commerce Clause.

Significance

Justice Holmes articulated the ‘stream of commerce’ doctrine, holding that the meatpacking industry was part of a continuous flow of commerce from ranchers to consumers, even though individual processing activities occurred within a single state. This expanded Commerce Clause power by recognizing that local activities could be part of a larger interstate commercial enterprise, marking a significant departure from the narrow approach of E. C. Knight.

Category

US Federal Case Law