What was the purpose of Interstate Commerce Commission?

Asked By: Sven Rameckers | Last Updated: 3rd February, 2020
Category: business and finance financial regulation
4.9/5 (100 Views . 34 Votes)
President Grover Cleveland signed the Interstate Commerce Act of 1887 and created the Interstate Commerce Commission (ICC), the U.S. government's first regulatory agency. The initial purpose of the ICC was to control railroads and their unfair business practices.

Click to see full answer


Herein, when the Interstate Commerce Commission moved away from the original purpose of the commission what role did it begin?

Originally established to regulate the railroads, the Interstate Commerce Commission had jurisdiction over all common carriers—excluding airplanes—by 1940. The primary organization that took over the duties of the now-defunct Interstate Commerce Commission is the National Surface Transportation Board.

Subsequently, question is, who did the Interstate Commerce Commission help? The Interstate Commerce Act required that railroads charge fair rates to their customers and make those rates public. This legislation also created the Interstate Commerce Commission (ICC), which had the authority to investigate and prosecute companies who violated the law.

In this way, why was the Interstate Commerce Commission formed?

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. The railroad companies held a natural monopoly in the areas that only they serviced.

What is an Interstate Commerce Commission permit?

This Permit is evidence of the carrier's authority to engage in transportation as a contract carrier by motor vehicle.

32 Related Question Answers Found

What was the result of the Interstate Commerce Commission?

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.

Who made the Interstate Commerce Act?

year, it passed the Interstate Commerce Act, which President GROVER CLEVELAND signed into law on February 4, 1887. The law required that railroad rates be "reasonable and just," but it did not empower the federal government to fix specific rates. It prohibited trusts, rebates, and discriminatory fares.

What is the definition of interstate commerce?

Interstate commerce refers to the purchase, sale or exchange of commodities, transportation of people, money or goods, and navigation of waters between different states. Interstate commerce is regulated by the federal government as authorized under Article I of the U.S. Constitution.

How did the Interstate Commerce Act help farmers?

The Interstate Commerce Act of 1887 allowed the federal government to regulate the rates the railroads charged for shipping goods across the country. The purpose of the act was to combat unfair pricing of goods by the railroad companies, many of which had no competition and a large number of routes.

What were the drawbacks of the Interstate Commerce Commission?


Which of the following was a disadvantage of the Interstate Commerce Act of 1887? a Farmers were protected from being overcharged for shipping short hauls. b Railroad companies had to charge all customers the same rates. c The Interstate Commerce Commission was able to stop unfair practices.

How does government regulate commerce?

Commerce clause, provision of the U.S. Constitution (Article I, Section 8) that authorizes Congress “to regulate Commerce with foreign Nations, and among the several States, and with Indian Tribes.” The commerce clause has traditionally been interpreted both as a grant of positive authority to Congress and as an

What does the Constitution say about interstate commerce?

The clause states that the United States Congress shall have power "[t]o regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes." Courts and commentators have tended to discuss each of these three areas of commerce as a separate power granted to Congress.

Why was the Interstate Commerce Commission abolished?

The Interstate Commerce Commission (ICC) was the first independent regulatory agency in the United States, and was created in 1887 when Congress passed the Interstate Commerce Act. Congress expanded ICC authority to regulate other modes of commerce beginning in 1906. The agency was abolished in 1995.

Did the Interstate Commerce Act work?

The Interstate Commerce Act of 1887 is a United States federal law that was designed to regulate the railroad industry, particularly its monopolistic practices. The Act required that railroad rates be "reasonable and just," but did not empower the government to fix specific rates.

Why was the Interstate Commerce Act ineffective?


Passed under public pressure to regulate railroads. The act established a five-member Interstate Commerce Commission to carry out this duty. The law was largely ineffective because it had to rely on the courts to enforce its rulings and pro-business courts interpreted it in a very limited sense.

Who is the head of the Interstate Commerce Commission?

INTERSTATE COMMERCE COMMISSION. President Grover Cleveland signed the Interstate Commerce Act of 1887 and created the Interstate Commerce Commission (ICC), the U.S. government's first regulatory agency. The initial purpose of the ICC was to control railroads and their unfair business practices.

Why is regulation of interstate commerce important?

The Commerce Clause serves a two-fold purpose: it is the direct source of the most important powers that the Federal Government exercises in peacetime, and, except for the due process and equal protection clauses of the Fourteenth Amendment, it is the most important limitation imposed by the Constitution on the

What caused the Hepburn Act?

Hepburn Act. The Hepburn Act of 1906 was a bill that fortified the powers of the Interstate Commerce Commission (ICC) and strengthened federal regulation of railroads. William Hepburn of Iowa, chairman of the House Commerce Commission, the Act passed after a series of unpopular rate increases by railroad corporations.

What power did the ICC have over railroad operations?

The power that the Interstate Commerce Commission (ICC) has over railroad operations is "the ICC could make railroads submit their records to Congress."

Why did Congress pass the Interstate Commerce Act?


In 1887, Congress passed the Interstate Commerce Act which created the Interstate Commerce Commission, the first true federal regulatory agency. It was designed to address the issues of railroad abuse and discrimination and required the following: Price discrimination against small markets was made illegal.

What was the significance of the Interstate Commerce Act 1887 and the Sherman Antitrust Act 1890?

The Sherman Antitrust Act is a federal law passed in 1890 that banned trusts and monopolies in industry, authorizing the federal government to dissolve trusts and break up monopolies as part of its power to regulate interstate commerce.

Who regulates interstate trucking?

For many years interstate trucking was heavily regulated by the Interstate Commerce Commission (ICC). The ICC reviewed rates that common carriers were required to file, and strictly limited entry.