What was the interstate commerce act. Summary and Significance of the Interstate Commerce Act of 1887 2019-01-18

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Interstate Commerce Act

what was the interstate commerce act

Realizing that it had to take matters in its own hands, Congress stepped in, and passed the Interstate Commerce Act in 1887. It also required carriers to publish their fares, and allowed them to change fares only after giving the public ten days' notice. Content on this website is from high-quality, licensed material originally published in print form. Railroad monopolies were being formed due to lack of competition Monopolies occur when one company or individual is the only provider of a particular service or product. . In some cases, the railroads were perceived to have abused their power as a result of too little competition.

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Interstate Commerce Act of 1887

what was the interstate commerce act

However, in an 1886 decision, Wabash, St. This ruling led to demands for national legislation and the Interstate Commerce Act was passed in 1887. That if in any case in which an investigation shall be made by said Commission it shall be made to appear to the satisfaction of the Commission, either by the testimony of witnesses or other evidence, that anything has been done or omitted to be done in violation of the provisions of this act, or of any law cognizable by said Commission, by any common carriers or that any injury or damage has been sustained by the party or parties complaining, or by other parties aggrieved in consequence of any such violation, it shall be the duty of the Commission to forthwith cause a copy of its report in respect thereto to be delivered to such common carrier, together with a notice to said common carrier to cease and desist from such violation, or to make reparation for the injury so found to have been done, or both, within a reasonable time, to be specified by the Commission; and if, within the time specified, it shall be made to appear to the Commission that such common carrier has ceased from such violation of law, and has made reparation for the injury found to have been done, in compliance with the report and notice of the Commission, or to the satisfaction of the party complaining, a statement to that effect shall be entered of record by the Commission, and the said common carrier shall thereupon be relieved from further liability or penalty for such particular violation of law. Transportation Consumer Protection Council, Inc. To download this worksheet, click the button below to signup for free it only takes a minute and you'll be brought right back to this page to start the download! That it shall be unlawful for any common carrier subject to the provisions of this act to make or give any undue or unreasonable preference or advantage to any particular person, company, firm, corporation, or locality, or any particular description of traffic, in any respect whatsoever, or to subject any particular person, company, firm, corporation, or locality, or any particular description of traffic, to any undue or unreasonable prejudice or disadvantage in any respect whatsoever. A total of sixteen cases made their way before the United States Supreme Court between 1887 and 1906, and the court only upheld the commission's decision in one of those cases.

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The Interstate Commerce Act < The Iron Horse

what was the interstate commerce act

Railroads also grouped together to form trusts that fixed rates at artificially high levels. About American history and world history can be found at historycental- History's home on the web. In any such action brought for the recovery of damages the court before which the same shall be pending may compel any director, officer, receiver, trustee, or agent of the corporation or company defendant in such suit to attend, appear, and testify in such case, and may compel the production of the books and papers of such corporation or company party to any such suit; the claim that any such testimony or evidence may tend to criminate the person giving such evidence shall not excuse such witness from testifying, but such evidence or testimony shall not be used against such person on the trial of any criminal proceeding. That the Commission hereby created shall have authority to inquire into the management of the business of all common carriers subject to the provisions of this act, and shall keep itself informed as to the manner and method in which the same is conducted, and shall have the right to obtain from such common carriers full and complete information necessary to enable the Commission to perform the duties and carry out the objects for which it was created; and for the purposes of this act the Commission shall have power to require the attendance and testimony of witnesses and the production of all books, papers, tariffs, contracts, agreements, and documents relating to any matter under investigation, and to that end may invoke the aid of any court of the United States in requiring the attendance and testimony of witnesses and the production of books, papers, and documents under the Provisions of this section. Without any form of regulation or control the private railroad companies were able to implement operations and prices of their choosing. It created the first federal regulatory agency through the Interstate Commerce Commission.


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Interstate commerce legal definition of interstate commerce

what was the interstate commerce act

As a result of the failure of states to regulate railroads, the United States Congress passed the Interstate Commerce Act in 1887. The Grangers used their cooperative system to challenge the monopolies of the railroad companies and their unfair practices in relation to grain prices and shipping costs. However, it was entirely private-controlled, and had no government regulations binding on it. Although the law granted the Commission power to investigate abuses and summon witnesses, it lacked the resources to accomplish its lofty goals. Congress had debated the effort for over a decade. In particular, railroads were able to control their markets and manipulate rates to their own advantage. The commission was only authorized to investigate companies whose business crossed over state lines.

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Summary and Significance of the Interstate Commerce Act of 1887

what was the interstate commerce act

Interstate Commerce Act Worksheets This bundle contains 11 ready-to-use Interstate Commerce Act Worksheets that are perfect for students who want to learn more about The Interstate Commerce Act which was passed on February 4, 1887, to address the issues of railroad commerce and discrimination. In some cases, the railroads abused their power as a result of too little competition, as when they charged scandalously high fares in places where they exerted control. The University of Chicago Law Review, 15 1 , Article 8. When the commission did become tough, usually the federal courts intervened to relieve the railroads. While some sections aimed to encourage competition in the market, others penalized it. They were also known as the Robber Barons. While the Senate would its findings and recommendations in 1874, Congress declined to step in, mirroring the lack of consensus in approach.

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What Is the Interstate Commerce and Why Does It Matter?

what was the interstate commerce act

These schemes resulted in for many rail carriers and their customers. The law was in response to public demand that the monopolies of the railroad companies and their operations be regulated. Interstate Commerce Act for kids: The Railroad Monopolies The Interstate Commerce Act established the first true federal regulatory agency. Thus it became the first federal independent regulatory commission, a hybrid agency with elements of judicial, legislative, and executive powers. Such reports shall also contain such information in relation to rates or regulations concerning fares or freights, or agreements, arrangements, or contracts with other common carriers, as the Commission may require; and the said Commission may, within its discretion, for the purpose of enabling it the better to carry out the purposes of this act, prescribe if in the opinion of the Commission it is practicable to prescribe such uniformity and methods of keeping accounts a period of time within which all common carriers subject to the provisions of this act shall have, as near as may be, a uniform system of accounts, and the manner in which such accounts shall be kept.

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Interstate Commerce Commission

what was the interstate commerce act

It later regulated many other forms of surface transportation, including motor vehicle and water transportation. The followingyear, it passed the Interstate Commerce Act, which President grover cleveland signed into law on February 4, 1887. The law was in response to public demand that the monopolies of the railroad companies and their operations be regulated. All charges made for any service rendered or to be rendered in the transportation of passengers or property as aforesaid, or in connection therewith, or for the receiving, delivering, storage, of handling of such property, shall be reasonable and just; and every unjust and unreasonable charge for such service is prohibited and declared to be unlawful. Major amendments were enacted in 1906 and 1910.

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Interstate Commerce Commission

what was the interstate commerce act

Because of its uniqueness, but also because the act that created it was vague in many areas, its precise powers and character remained unclear. Responding to a widespread public outcry, states passed laws that were designed to curb railroad abuses. Too much competition also caused problems, as when railroads granted rebates to large businesses in order to secure exclusive access to their patronage. The Act was revised thrice, in 1978, '83 and '94, which simplified its language, and reorganized it without any changes. Said Commissioners shall not engage in any other business, vocation, or employment. And when any such common carrier shall have established and published its rates, fares, and charges in compliance with the provisions of this section, it shall be unlawful for such common carrier to charge, demand, collect, or receive from any person or persons a greater or less compensation for the transportation of passengers or property, or for any services in connection therewith, than is specified in such published schedule of rates, fares, and charges as may at the time be in force. It also required carriers to publish their fares, and allowed them to change fares only after giving the public ten days' notice.

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Interstate Commerce Act

what was the interstate commerce act

If such common carrier, within the time specified, shall make reparation for the injury alleged to have been done, said carrier shall be relieved of liability to the complainant only for the particular violation of law thus complained of. The latter revisions and recodifications simplified the language of the act and reorganized certain sections; no major substantive changes were made. This advancement led to the strong control on commerce through monopolies. Not more than three of the Commissioners shall be appointed from the same political party. Reductions in such published rates, fares, or charges may be made without previous public notice; but whenever any such reduction is made, notice of the same shall immediately be publicly posted. Illinois decision of the Supreme Court of the United States.

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