This section contains the nature of the case and procedural background.

Market Street operated a public transportation system in San Francisco. The Railroad Commission began an inquiry into the rates being charged and ordered Market Street to reduce its rates. It was found that by lowering fares, demand would increase to provide adequate revenues for expenses and a return on capital. Market Street contends that it was denied due process because the order was based on matters outside the record. The Commission admitted that the records it relied on were taken from Market Street’s monthly reports filed with the Commission.

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