Which Government Agency Was Created to Regulate the Railroads

Which Government Agency Was Created to Regulate the Railroads.

United States federal law

Interstate Commerce Deed of 1887
Great Seal of the United States
Long championship An act to regulate commerce
Enacted by the 49th U.s.a. Congress
Constructive April seven, 1887
Public law Pub.50. 49–104
Statutes at Large 24 Stat. 379
Legislative history
  • Passed the U.Due south. Firm
    on February 4, 1887
  • Passed the U.S. Senate
    on February four, 1887
Major amendments
  • Elkins Act
  • Hepburn Act
  • Mann–Elkins Act
  • Valuation Deed
  • Motor Carrier Act of 1935
  • Railroad Revitalization and Regulatory Reform Deed
  • Staggers Rail Act
  • Motor Carrier Act of 1980

Interstate Commerce Act of 1887
is a United States federal police that was designed to regulate the railroad manufacture, particularly its monopolistic practices.[i]
The Act required that railroad rates be “reasonable and just,” but did not empower the authorities to fix specific rates. Information technology also required that railroads publicize aircraft rates and prohibited brusque haul or long booty fare discrimination, a form of cost discrimination against smaller markets, peculiarly farmers in Western or Southern Territory compared to the Official Eastern states.[2]
The Act created a federal regulatory agency, the Interstate Commerce Commission (ICC), which it charged with monitoring railroads to ensure that they complied with the new regulations.

With the passage of the Act, the railroad manufacture became the first manufacture subject to federal regulation by a regulatory body.[4]
It was later amended to regulate other modes of transportation and commerce.

Background of the act


The human activity was passed in response to rising public business organization with the growing ability and wealth of corporations, particularly railroads, during the late nineteenth century. Railroads had become the principal class of transportation for both people and goods, and the prices they charged and the practices they adopted greatly influenced individuals and businesses. In some cases, the railroads were perceived to have abused their power as a result of too trivial competition. Railroads likewise banded together to form pools and trusts that fixed rates at higher levels than they could otherwise command.[5]

Responding to a widespread public outcry, states passed numerous pieces of legislation. Through the 1870s various constituencies, notably the Grange motion representing farmers, lobbied Congress to regulate railroads. While the Senate would investigate and report its findings and recommendations in 1874, Congress declined to pace in, mirroring the lack of consensus in approach. In the 1886 conclusion on
Wabash, St. Louis & Pacific Railway Company 5. Illinois
the U.Southward. Supreme Courtroom ruled that land laws regulating interstate railroads were unconstitutional because they violated the Commerce Clause of the Constitution, which gives Congress the sectional ability “to regulate Commerce with foreign nations, and amongst the several States, and with the Indian Tribes.”[7]
With many of those questions of approach decided, Congress passed the Interstate Commerce Human activity the post-obit year; it was signed into law by President Grover Cleveland on February 4, 1887.[8]

: 12

The deed worked to keep rates and railroad revenue up on routes where contest existed.[9]
It did this by attempting to strength publicity most rates and make rebates and discrimination illegal. (‘Discrimination’ meant lower rates for certain customers, e.grand. politicians, large customers, sharp bargainers, long haul shippers, shippers in competitive markets, low season travelers.)[9]
Railroads saw that competition made it difficult to pay their stockholders and bondholders the amount of coin promised to them, and competition was therefore “bad.”[10]

Jurisdiction of the act


The human activity likewise created the Interstate Commerce Commission (ICC), the first independent regulatory agency of the US authorities. As part of its mission, the ICC heard complaints against the railroads and issued cease and desist orders to combat unfair practices. While the ICC was empowered to investigate and prosecute railroads and other transportation companies that were alleged to have violated the act, its jurisdiction was limited to companies that operated across state lines. Over time the courts would further narrow the agency’s authority, and in 1903 Congress established the Department of Commerce and Labor and its Bureau of Corporations to study and study on wider industries and their monopolistic practices. By 1906, the Supreme Court had ruled in favor of a railroad visitor in fifteen out of the sixteen cases over which it presided.[eleven]



Early twentieth century


Congress passed a minor subpoena to the Act in 1903, the Elkins Human activity.[12]
Major amendments were enacted in 1906 and 1910. The Hepburn Act of 1906 authorized the ICC to set maximum railroad rates, and extended the agency’due south authority to embrace bridges, terminals, ferries, sleeping cars, limited companies and oil pipelines.[thirteen]
The Isle of mann-Elkins Act of 1910 strengthened ICC authorization over railroad rates and expanded its jurisdiction to include regulation of phone, telegraph, and cable companies.[14]
The Valuation Act of 1913 required the ICC to organize a Bureau of Valuation that would appraise the value of railroad property. This information would exist used to set freight shipping rates.[fifteen]

Motor Carrier Act of 1935


In 1935, Congress passed the Motor Carrier Human activity, which amended the Interstate Commerce Act to regulate jitney lines and trucking every bit mutual carriers.[16]

Subsequently amendments


Congress enacted simplifying and reorganizing amendments in 1978, 1983 and 1994.[17]



Congress passed various railroad deregulation measures in the 1970s and 1980s. The Railroad Revitalization and Regulatory Reform Human activity of 1976 (oft called the “4R Act”) gave railroads more than flexibility in pricing and service arrangements. The 4R Act also transferred some powers from the ICC to the newly formed United States Railway Association, a regime corporation, regarding the disposition of bankrupt railroads.[18]
The Staggers Runway Act of 1980 further reduced ICC authority by allowing railroads to gear up rates more than freely and become more competitive with the trucking industry.[nineteen]

The Motor Carrier Deed of 1980 deregulated the trucking industry.[twenty]



Congress abolished the ICC in 1995 (see
Interstate Commerce Committee Termination Act) and many of its remaining functions were transferred to a new agency, the Surface Transportation Board.[21]

Meet besides


  • History of rail ship in the United States



  1. ^

    Interstate Commerce Act of 1887, ch. 104, 24 Stat. 379, approved 1887-02-04 (text).

  2. ^

    Potter, David. G. (1947). “Discriminatory Freight Rates: Implications of the Interstate Commerce Committee’due south Regulatory Powers”
    The University of Chicago Law Review, fifteen(1), Article viii. Accessed 2017-03-28.

  3. ^

    Editors, Law Review. (1947). “The Historical Development of Easter-Southern Freight Rate Relationships” Law and Contemporary Problems, 12(1). Accessed 2017-03-28.

  4. ^

    U.S. National Archives and Records Administration. Washington, D.C. “Our Documents: Interstate Commerce Deed (1887).” Accessed 2010-10-19.

  5. ^

    Johnson, Emory R.; Van Metre, Thurman W. (1918). “Chapter XVIII. Pools and Traffic Associations”.
    Principles of Railroad Transportation. New York: D. Appleton. pp. 292–307.

  6. ^

    U.Due south. Supreme Court.
    Wabash, St. Louis & Pacific Railway Visitor 5. Illinois,
    118 U.S. 557 (1886), 7 South. Ct. iv, thirty L. Ed. 244

  7. ^

    U.S. Constitution, Article I, Department 8, Clause 3.

  8. ^

    Kohlmeier, Louis M. Jr. (1969).
    The Regulators: Watchdog Agencies and the Public Involvement. New York: Harper & Row. ISBN978-0-06-043747-3.

  9. ^



    Acworth, Westward.M. (1905-12-01). “The Recent History of Federal Control of Railroads in the United States”.
    Railroad Gazette.
    (22): 170.

  10. ^

    White, Richard; Stanford Academy (2008). “Kilkenny Cats: Transcontinental railroads, destructive competition, and the odd road to North American modernity.” Archived 2010-06-16 at the Wayback Auto Paper presented at the Penn Economic History Forum Archived 2010-06-15 at the Wayback Machine, University of Pennsylvania, Section of History, Philadelphia, PA, October 3, 2008.

  11. ^

    Louis Hacker & Benjamin Kendrick
    The United states of america Since 1865, 236

  12. ^

    Elkins Act, 57th Congress, Sess. 2, ch. 708, 32 Stat. 847, approved 1903-02-19.

  13. ^

    Hepburn Human action of 1906, 59th Congress, Sess. ane, ch. 3591, 34 Stat. 584, approved 1906-06-29.

  14. ^

    Mann-Elkins Human action of 1910, 61st Congress, ch. 309, 36 Stat. 539, approved 1910-06-18.

  15. ^

    Valuation Act, 62nd Congress, ch. 92, 37 Stat. 701, enacted 1913-03-01.

  16. ^

    Motor Carrier Act of 1935, 49 Stat. 543, ch. 498, approved 1935-08-09.

  17. ^

    Revised Interstate Commerce Act of 1978, Pub.L. 95–473, 92 Stat. 1337, 49 U.s.a.C. § 10101, canonical 1978-10-17. Pub.Fifty. 97–449, 96 Stat. 2413, approved 1983-01-12. Pub.L. 103–272, canonical 1994-07-05.

  18. ^

    Railroad Revitalization and Regulatory Reform Act, Pub. L. 94-210, xc Stat. 31, 45 U.S.C. § 801, approved 1976-02-05.

  19. ^

    Staggers Track Human activity of 1980, Pub. L. 96-448, 94 Stat. 1895, approved 1980-10-xiv.

  20. ^

    Motor Carrier Human activity of 1980, Pub. L. No. 96-296, 94 Stat. 793, approved 1980-07-01.

  21. ^

    Interstate Commerce Commission Termination Human activity,
    Pub.L. 104–88 (text) (PDF), 109 Stat. 803; 1995-12-29.

External links


  • “People & Events: Interstate Commerce Commission” – PBS Online

Which Government Agency Was Created to Regulate the Railroads

Source: https://en.wikipedia.org/wiki/Interstate_Commerce_Act_of_1887