How successful was the Interstate Commerce Commission?

Learn about this topic in these articles:

development of administrative law

effect on railroad industry

  • How successful was the Interstate Commerce Commission?

    In United States: The Interstate Commerce Act

    …induced Congress to enact the Interstate Commerce Act in 1887.

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  • In In re Debs: Background

    …Sherman Antitrust Act and the Interstate Commerce Act, also prevented the ARU leadership from communicating with their subordinates.

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role of Cleveland

  • How successful was the Interstate Commerce Commission?

    In Grover Cleveland: Presidency

    …government in the 1880s: the Interstate Commerce Act (1887), which established the Interstate Commerce Commission, the first regulatory agency in the United States, and the Dawes General Allotment Act (1887), which redistributed Native American reservation land to individual tribe members.

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Interstate Commerce Commission (ICC), former independent agency of the U.S. government, established in 1887; it was charged with regulating the economics and services of specified carriers engaged in transportation between states. Surface transportation under the ICC's jurisdiction included railroads, trucking companies, bus lines, freight forwarders, water carriers, oil pipelines, transportation brokers, and express agencies.

The ICC, the first regulatory commission in U.S. history, was established as a result of mounting public indignation in the 1880s against railroad malpractices and abuses (see Granger movement), but until President Theodore Roosevelt, the ICC's effectiveness was limited by the failure of Congress to give it enforcement power, by the Supreme Court's interpretation of its powers, and by the vague language of its enabling act. Beginning with the Hepburn Act (1906), the ICC's jurisdiction was gradually extended beyond railroads to all common carriers except airplanes by 1940. Its enforcement powers to set rates were also progressively extended, through statute and broadened Supreme Court interpretations of the commerce clause of the Constitution, as were its investigative powers for determining fair rates of return on which to base rates. In addition, the ICC was given the task of consolidating railroad systems and managing labor disputes in interstate transport. In the 1950s and 60s the ICC enforced U.S. Supreme Court rulings that required the desegregation of passenger terminal facilities.

The ICC's safety functions were transferred to the Dept. of Transportation when that department was created in 1966; the ICC retained its rate-making and regulatory functions. However, in consonance with the deregulatory movement, the ICC's powers over rates and routes in rails and trucking were curtailed in 1980 by the Staggers Rail Act and Motor Carriers Act. Most ICC control over interstate trucking was abandoned in 1994, and the agency was terminated at the end of 1995. Many of its remaining functions were transferred to the new National Surface Transportation Board.

    The Columbia Electronic Encyclopedia, 6th ed. Copyright © 2022, Columbia University Press. All rights reserved.

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    journal article

    The Interstate Commerce Commission: An Appraisal

    The Yale Law Journal

    Vol. 46, No. 6 (Apr., 1937)

    , pp. 915-954 (40 pages)

    Published By: The Yale Law Journal Company, Inc.

    https://doi.org/10.2307/792048

    https://www.jstor.org/stable/792048

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    Journal Information

    The Yale Law Journal publishes original scholarly work in all fields of law and legal study. The journal contains articles, essays, and book reviews written by professors and legal practitioners throughout the world, and slightly shorter notes and comments written by individual journal staff members. The journal is published monthly from October through June with the exception of February.

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    What was the impact of the Interstate Commerce Commission?

    The Interstate Commerce Act showed that Congress could apply the Commerce Clause more expansively to national issues if they involved commerce across state lines. After 1887, the national economy grew much more integrated, making almost all commerce interstate and international.

    What was the goal of the Interstate Commerce Act and was it successful?

    Approved on February 4, 1887, the Interstate Commerce Act created an Interstate Commerce Commission to oversee the conduct of the railroad industry. With this act, the railroads became the first industry subject to Federal regulation.

    What were the benefits 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, including interstate bus lines and telephone companies.

    What were the drawbacks of the Interstate Commerce Commission?

    The major criticism—that regulation created artificially high rates—led to pressure for deregulation and signaled the beginning of the demise of the ICC. First, the Railroad Revitalization and Regulatory Reform Act of 1976 curtailed the ICC power to regulate rates unless the railroad had a monopoly on certain routes.