What was th significance of the Interstate Commerce Commission?
The proposed 21 regional railroads were as follows:
- Boston and Maine Railroad; Maine Central Railroad; Bangor and Aroostook Railroad; Delaware and Hudson Railway
- New Haven Railroad; New York, Ontario and Western Railway; Lehigh and Hudson River Railway; Lehigh and New England Railroad
- New York Central Railroad; Rutland Railroad; Virginian Railway; Chicago, Attica and Southern Railroad
What is the duty of regulating interstate commerce?
Commerce Clause
- Overview. The Commerce Clause refers to Article 1, Section 8, Clause 3 of the U.S. ...
- "Dormant" Commerce Clause. ...
- The Meaning Of "Commerce" The meaning of the word "commerce" is a source of controversy, as the Constitution does not explicitly define the word.
- Further Reading. ...
What did the Interstate Commerce Commission do?
The Interstate Commerce Commission (ICC) was created by Congress in 1887 under the Interstate Commerce Act. The primary responsibilities of the ICC were to control competition and stabilize rates for a then monopolistic rail industry. The ICC's responsibilities were later extended to motor carrier, barge, and airline industries.
What was the goal of the Interstate Commerce Act?
- Shipping rates had to be "reasonable and just"
- Rates had to be published
- Secret rebates were outlawed
- Price discrimination against small markets was made illegal.
What is the function of the Interstate Commerce Commission?
The Interstate Commerce Commission regulates interstate surface transportation, including trains, trucks, buses, water carriers, household goods transporters, freight forwarders, transportation brokers, and pipelines that are not regulated by the Federal Energy Regulatory Commission.
What is the Interstate Commerce Commission in simple terms?
Interstate Commerce Commission. A federal agency that monitors the business operations of carriers transporting goods and people between states. Its jurisdiction includes railroads, ships, trucks, buses, oil pipelines, and their terminal facilities.
What was the purpose of the Interstate Commerce Commission quizlet?
The agency's original purpose was to regulate railroads (and later trucking) to ensure fair rates, to eliminate rate discrimination, and to regulate other aspects of common carriers, including interstate bus lines and telephone companies.
What was the purpose of the Interstate Commerce Act quizlet?
What was the main purpose of the Interstate Commerce Act of 1887? The Interstate Commerce Act was created to limit the monopolistic practices of the railroad industry.
What is the purpose of the Interstate Commerce Commission?
The agency's original purpose was to regulate railroads (and later trucking) to ensure fair rates, to eliminate rate discrimination, and to regulate other aspects of common carriers, ...
What was the purpose of the ICC?
The ICC was established by the Interstate Commerce Act of 1887, which was signed into law by President Grover Cleveland. The creation of the commission was the result of widespread and longstanding anti-railroad agitation. Western farmers, specifically those of the Grange Movement, were the dominant force behind the unrest, but Westerners generally — especially those in rural areas — believed that the railroads possessed economic power that they systematically abused. A central issue was rate discrimination between similarly situated customers and communities. Other potent issues included alleged attempts by railroads to obtain influence over city and state governments and the widespread practice of granting free transportation in the form of yearly passes to opinion leaders (elected officials, newspaper editors, ministers, and so on) so as to dampen any opposition to railroad practices.
What act gave the ICC jurisdiction over railroad safety?
Congress expanded the commission's powers through subsequent legislation. The 1893 Railroad Safety Appliance Act gave the ICC jurisdiction over railroad safety, removing this authority from the states, and this was followed with amendments in 1903 and 1910.
How long did the ICC valuation process last?
The enlarged process led to a major increase in ICC staff, and the valuations continued for almost 20 years. The valuation process turned out to be of limited use in helping the ICC set rates fairly. In 1934, Congress transferred the telecommunications authority to the new Federal Communications Commission.
When did the ICC ban bus segregation?
November 7, 1955 – ICC bans bus segregation in interstate travel in Sarah Keys v. Carolina Coach Company. This extends the logic of Brown v. Board of Education, a precedent ending the use of "separate but equal" as a defence against discrimination claims in education, to bus travel across state lines.
When was the ICC abolished?
The ICC was abolished in 1995, and its remaining functions were transferred to the Surface Transportation Board . The Commission's five members were appointed by the President with the consent of the United States Senate. This was the first independent agency (or so-called Fourth Branch ).
What did the ICC rule on the dining car steward?
The ICC ruled the discrimination to be an error in judgement on the part of an individual dining car steward; both the United States District Court for the District of Maryland and the Supreme Court disagreed, finding the published policies of the railroad itself to be in violation of the Interstate Commerce Act.
The Rise of Industrialization
Following the Civil War, significant technological advancements led to what is known as the Industrial Era. Several industries were impacted, including steel and oil, which led to massive gains in production within the United States.
What did the Interstate Commerce Act of 1887 do?
The formation of interest groups helped to pressure politicians to make a monumental change in congressional legislation. The Interstate Commerce Act of 1887 was the first legislation to subject a private industry (railroads) to federal regulation from a regulatory body.
The Interstate Commerce Act and Small Farmers
A major reason the Interstate Commerce Act was passed was because many small volume shipping customers like small farmers were disproportionately affected by discriminatory pricing. Simply put, many small farmers were being put out of business due to paying higher rates for shipping than large farmers and businesses.
The Purpose of the Interstate Commerce Act
The purpose of the Interstate Commerce Act of 1887 was to provide federal regulation for the railroad industry. The act also created the Interstate Commerce Commission (ICC). The ICC was the first independent regulatory commission and was used as a model for future federal regulatory efforts.
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Transcript
Forty-Ninth Congress of the United States of America; At the Second Session, Begun and held at the City of Washington on Monday, the sixth day of December, one thousand eight hundred and eighty-six
What Was The Interstate Commerce Commission (ICC)?
Understanding The Interstate Commerce Commission
- The ICC was established under the 1887 Interstate Commerce Act originally to regulate railroads, but its powers were later expanded to cover other commercial transportation as well. Before the Act and the ICC, railroads were able to wield monopolypower due to the natural economies of scale and network effects involved with their design, construction, and operation. Most economi…
History of The ICC
- The ICC was established in 1887, following increasing public indignation in the 1880s over abuses and malpractices by the railroad companies. Originally established to regulate the railroads, the ICC had jurisdiction over all common carriers—excluding airplanes—by 1940.1 By 1910, the ICC had been granted the authority by Congress and the Supreme Court to set rates and profit level…
Overview
The Interstate Commerce Commission (ICC) was a regulatory agency in the United States created by the Interstate Commerce Act of 1887. The agency's original purpose was to regulate railroads (and later trucking) to ensure fair rates, to eliminate rate discrimination, and to regulate other aspects of common carriers, including interstate bus lines and telephone companies. Congress expa…
Creation
The ICC was established by the Interstate Commerce Act of 1887, which was signed into law by President Grover Cleveland. The creation of the commission was the result of widespread and longstanding anti-railroad agitation. Western farmers, specifically those of the Grange Movement, were the dominant force behind the unrest, but Westerners generally — especially those in rural areas — believed that the railroads possessed economic power that they systematically abused…
Initial implementation and legal challenges
The Commission had a troubled start because the law that created it failed to give it adequate enforcement powers.
The Commission is, or can be made, of great use to the railroads. It satisfies the popular clamor for a government supervision of the railroads, while at the same time that supervision is almost entirely nominal.— Richard Olney, private attorney, in a letter to Charles Elliott Perkins, President …
Expansion of ICC authority
Congress expanded the commission's powers through subsequent legislation. The 1893 Railroad Safety Appliance Act gave the ICC jurisdiction over railroad safety, removing this authority from the states, and this was followed with amendments in 1903 and 1910. The Hepburn Act of 1906 authorized the ICC to set maximum railroad rates, and extended the agency's authority to cover brid…
Ripley Plan to consolidate railroads into regional systems
The Transportation Act of 1920 directed the Interstate Commerce Commission to prepare and adopt a plan for the consolidation of the railway properties of the United States into a limited number of systems. Between 1920 and 1923, William Z. Ripley, a professor of political economy at Harvard University, wrote up ICC's plan for the regional consolidation of the U.S. railways. His plan became known as the Ripley Plan. In 1929 the ICC published Ripley's Plan under the title Comple…
Racial integration of transport
Although racial discrimination was never a major focus of its efforts, the ICC had to address civil rights issues when passengers filed complaints.
• April 28, 1941 - In Mitchell v. United States, the United States Supreme Court ruled that discrimination in which a colored man who had paid a first class fare for an interstate journey was compelled to leave that car and ride in a second class car was essentially unjust, and violated th…
Criticism
The limitation on railroad rates in 1906-07 depreciated the value of railroad securities, a factor in causing the panic of 1907.
Some economists and historians, such as Milton Friedman assert that existing railroad interests took advantage of ICC regulations to strengthen their control of the industry and prevent competition, constituting regulatory capture.
Abolition
Congress passed various deregulation measures in the 1970s and early 1980s which diminished ICC authority, including the Railroad Revitalization and Regulatory Reform Act of 1976 ("4R Act"), the Motor Carrier Act of 1980 and the Staggers Rail Act of 1980. Senator Fred R. Harris of Oklahoma strongly advocated the abolition of the Commission. In December 1995, when most of the ICC's powers had been eliminated or repealed, Congress finally abolished the agency with the ICC Ter…