Public Utilities Commission of California v. United States

Summary

The Supreme Court held that California's Public Utilities Code §530, which requires the United States to obtain state commission approval before negotiating reduced freight rates, is preempted by federal procurement authority and therefore unconstitutional under the Supremacy Clause. The Court affirmed the district court's declaratory judgment in favor of the United States. Justice Harlan dissented, arguing the statute should not be struck down without first allowing state interpretation.