No person in the employ of or holding any official relation to any common carrier subject to the provisions of this act, or owning stock or bonds thereof, or who is in any manner pecuniarily interested therein, shall enter upon the duties of or hold such office. See also: Motor Carrier Act;. In some states, the Granger Law was passed due to the Panic of 1873. Initially states had tried to combat these unscrupulous business practices by enacting their own railroad laws. 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.
Most cases took up to 4 years to reach a conclusion, and even then the courts mostly ruled in the favor of the railroads. The railroads had become a major means of interstate commerce, involving the transportation of goods across state borders. Although the law granted the Commission power to investigate abuses and summon witnesses, it lacked the resources to accomplish its lofty goals. Too much competition also caused problems, as when railroads granted rebates to large businesses in order to secure exclusive access to their patronage. However, in an 1886 decision, Wabash, St.
Realizing that it had to take matters in its own hands, Congress stepped in, and passed the Interstate Commerce Act in 1887. It has been amended over the years to embrace new and different forms of interstate transportation, including pipelines, water transportation, and motor vehicle transportation. The growth of the railroad industry was one of the main driving factors behind it. Another example: many states have laws regarding what kind of firewood can be sold within their boundaries. Railroad companies were losing their grip on transportation.
In the late 1800s, most industries were not regulated, and there was concern of monopolies forming due to lack of competition. 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. Railroads also grouped together to form trusts that fixed rates at artificially high levels. 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. You can always be sure you're reading unbiased, factual, and accurate information. For more information on the Interstate Commerce Act read the fact file below or download our comprehensive worksheet pack to utilise within the classroom or home environment.
However, a Supreme Court ruling in 1886 said that only Congress had the power to regulate trade across state boundaries, and not the state governments themselves. Later presidents would assure that reform would not go too far, by appointing pro-railroad commissioners. The University of Chicago Law Review, 15 1 , Article 8. Many states have regulations that help farmers get a leg up in the market and find consumers. Railroads often charged a higher price per mile for short hauls than for long hauls. Shipping rates were to be just, reasonable, and published for the public. 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.
The Interstate Commerce Act required that railroads charge fair rates to their customers and make those rates public. As the United States continued to industrialize in the second half of the nineteenth century, the U. 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. Said Commission shall in like manner investigate any complaint forwarded by the railroad commissioner or railroad commission of any State or Territory, at the request of such commissioner or commission, and may institute any inquiry on its own motion in the same manner and to the same effect as though complaint had been made. Larger railroads sometimes lowered prices so much that they drove other carriers out of business, after which they raised prices dramatically. Monopolies occur when one company or individual is the only provider of a particular product. This ruling led to demands for national legislation and the Interstate Commerce Act was passed in 1887.
On Monday, 64 separate groups concerned with how food is produced demanding that these proposals be stopped. A company that sells millions of battery-cage-produced eggs would be very annoyed at being unable to sell those eggs in states that have banned them. In addition, two major acts of 1980 gave the industry some breathing room: the Staggers Rail Act relaxed government control over rates, mergers, and line abandonment; and the began the process of ending rate regulation. The commission was only authorized to investigate companies whose business crossed over state lines. A company that sells millions of battery-cage-produced eggs would be very annoyed at being unable to sell those eggs in states that have banned them. Railroads had become the principal form of transportation for people and goods, and the prices they charged and the practices they adopted greatly influenced individuals and businesses. That any person, firm, corporation, or association, or any mercantile, agricultural, or manufacturing society, or any body politic or municipal organization complaining of anything done or omitted to be done by any common carrier subject to the provisions of this act in contravention of the provisions thereof, may apply to said Commission by petition, which shall briefly state the facts; whereupon a statement of the charges thus made shall be forwarded by the Commission to such common carrier, who shall be called upon to satisfy the complaint or to answer the same in writing within a reasonable time, to be specified by the Commission.
This advancement led to the strong control on commerce through monopolies. If Congress wanted to get involved, it could; but states had no power to regulate interstate businesses. Image of an 1879 Tiffany Refrigerator Car advertisement for interstate commerce via train Definition The Interstate Commerce Act of 1887 was the first act passed by Congress that made a particular industry subject to regulation by the federal government. A number of states, including Ohio, had unsuccessfully attempted to regulate railroads before 1887. 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.