The Wabash decision declared that states could not regulate any commerce that went outside their borders. The Sherman Antitrust Act was to break up bad trusts that were affecting the economy. While the Act's initial provisions dealt only with the railroads and other carriers owned by them, this was later expanded by the Elkins, Hepburn, and Mann-Elkins Act, to include other carriers like ferries, sleeping cars, oil pipelines, express services, bridges, and even the telecommunication industry. For additional facts refer to the. The Commission shall appoint a secretary, who shall receive an annual salary of three thousand five hundred dollars, payable in like manner. Government Year Published: 1887 The Interstate Commerce Act of 1887 Be it enacted. 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 each Commissioner shall receive an annual salary of seven thousand five hundred dollars, payable in the same manner as the salaries of judges of the courts of the United States. Supreme Court, in Munn v. This had a lot to do with its ambiguous language. Whenever any such petition shall be filed or presented by the Commission it shall be the duty of the district attorney, under the direction of the Attorney-General of the United States, to prosecute the same; and the costs and expenses of such prosecution shall be paid out of the appropriation for the expenses of the courts of the United States. Moreover, President Reagan and his successor, George H. Write , and , Using. Ogden 1824 that federal legislation was supreme over a state law that might affect interstate or foreign commerce.
Transportation Consumer Protection Council, Inc. On long haul railroads, this worked perfectly fine. In 1887, Congress passed the Interstate Commerce Act which created the Interstate Commerce Commission, the first true federal regulatory agency. . However, all attempts to enact intercommerce regulations failed up until the act's passage.
They did not lose much business because of these increases, because the demand of long haul shippers was inelastic; they had to ship their goods somehow, and were willing to pay a higher price for it. That a Commission is hereby created and established to be known as the Inter-State Commerce Commission, which shall be composed of five Commissioners, who shall be appointed by the President, by and with the advice and consent of the Senate. National Archives and Records Administration. One of the largest companies broken up by the act was Standard Oil Company in 1911. The Act was the first federal law to regulate private industry in the United States.
However, the two provisions which had a significant impact were the requirement for annual reports and the prohibition of setting favorable rates to selected shippers. Each faced different railroad market structures. There was intense competition, so prices were very competitive. By 1906, the had ruled in favor of a railroad company in fifteen out of the sixteen cases over which it presided. The most recent paper I looked at was. Short haul railroad companies lost their monopolies and their ability to charge extremely high prices.
What was the impact of the law? So it was later replaced witht eh Clayton Antitrust Act. Indeed, the main body of in the United States is state law. The revisionist school argues that instead, it entrenched the power of the railroads and created a cartel like structure within the rail industry. The members of the Granger Movement significantly increased following the , falling crop prices and increased shipping rates. Interstate Commerce Act of 1887 Overview Terms Explanations Monopolies when one company or individual is the only provider of a particular product Interstate commerce travel of business across state borders Interstate Commerce Act of 1887 the first act passed by Congress that made a particular industry subject to regulation by the federal government Granger laws states passed laws regulating the railroad industry within each state's respective border Wabash, St. However, in reality, determining what rates were discriminatory and which were not turned out to be very technically and politically difficult and, therefore, not highly effective.
However, it was entirely private-controlled, and had no government regulations binding on it. Events took a different turn in the mid-1990s when the federal government began prosecution of the Microsoft Corporation for monopolistic business practices. A more natural coalition arose between railroads with long and shorthaul markets and short haul shippers. That it shall be unlawful for any common carrier subject to the provisions of this act to charge or receive any greater compensation in the aggregate for the transportation of passengers or of like kind of property, under substantially similar circumstances and conditions, for a shorter than for a longer distance over the same line, in the same direction, the shorter being included within the longer distance; but this shall not be construed as authorizing any common carrier within the terms of this act to charge and receive as great compensation for a shorter as for a longer distance: Provided, however, That upon application to the Commission appointed under the provisions of this act, such common carrier may, in special cases, after investigation by the Commission, be authorized to charge less for longer than for shorter distances for the transportation of passengers or property; and the Commission may from time to time prescribe the extent to which such designated common carrier may be relieved from the operation of this section of this act. Realizing that it had to take matters in its own hands, Congress stepped in, and passed the Interstate Commerce Act in 1887. Not until the late 1930s did the Court include manufacturing plants and processes, for example, within the scope of regulation under the commerce clause: child-labor laws were struck down in 1918 and 1922 Bailey v. If such carrier shall not satisfy the complaint within the time specified, or there shall appear to be any reasonable ground for investigating said complaint, it shall be the duty of the Commission to investigate the matters complained of in such manner and by such means as it shall deem proper.
Railroads also banded together to form and that fixed rates at higher levels than they could otherwise command. This changed when President Theodore Roosevelt came to power in 1901. However, at its formation in 1887, constitutional doctrine largely confined federal powers in the regulation of interstate commerce to transportation and communications. The regulations concerned rates, routes, services, mergers, bills of lading, and securities issued by carriers. This reduced the confidence of the shippers, resulting in a sharp decline in the number of appeals. Other specific historical instances of federal government action to regulate interstate commerce can be cited. 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.