The
Interstate Commerce Act
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Interstate Commerce Act for kids: Background History
The Interstate Commerce Act
was passed in response to the public outcry against the
dubious practices of the Railroad Companies. It was the time in
US history when wealthy 'Robber Barons' took
control of industries sparking protests from workers that resulted in strikes in the
towns and cities during the Industrial Revolution. For
additional facts refer to the
Rise of Big Business and Corporations.
Interstate Commerce Act for kids: The 'Robber Barons'
Railroad magnates and industrialists like
Edward Harriman, Charles Crocker, Cornelius Vanderbilt,
Leland Stanford, Henry Bradley Plant and Mark Hopkins
had gained monopolies over the railroad industry and
were referred to as 'Robber Barons'.
Interstate Commerce Act: Grain Elevators and Transportation
The Robber Barons had control of the
railroads and the transportation of grain crops from the
local farmers to distant markets. The steam-powered
Grain Elevators had
been financed by the railroads and the "Prairie
Skyscrapers" were located every 10 miles at the railroad
terminals. The Grain elevator operators bought the
grain from farmers and many used their purchasing power
to control prices.
Interstate Commerce Act for kids: The Granger Movement
The farmers established a coalition of U.S. farmers,
referred to as the
Granger movement.
The Granger movement was supported by the farmers of Iowa,
Nebraska, Kansas, Minnesota, and the Dakotas. 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. The members of the
Granger Movement significantly increased following the
Panic of 1873, falling crop prices and increased shipping rates.
The Grangers applied political pressure and in some states "Granger
Laws" were passed to give legislative assistance to the farmers.
Interstate Commerce Act for kids: The "Granger Laws"
The 'Granger Laws' established state railroad
commissions legislation covering the operation of grain elevators
and set maximum railroad rates. The Railroad Companies were incensed
and challenged the Granger Laws. A number of these state laws were
undermined by the 1886 Wabash, St. Louis & Pacific R.R. Co. v.
Illinois decision of the Supreme Court of the United States. The
Wabash decision declared that states could not regulate any commerce
that went outside their borders. However, the U.S. Supreme Court, in
Munn v. Illinois (1876), established that public regulation of
private utilities for public use was constitutional. This ruling led
to demands for national legislation and the Interstate Commerce Act
was passed in 1887.
Interstate Commerce Act for kids: The Railroad Monopolies
The Interstate Commerce Act
established the first true federal regulatory agency. The railroads
were privately owned and operated and were not regulated. The
railroads had become a major means of interstate commerce, involving
the transportation of goods across state borders. Railroad companies
discriminated in the prices they charged to passengers and shippers
in different localities by providing rebates to large shippers or
buyers - the small farmers could never qualify. 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). Without any form of regulation or
control the private railroad companies were able to implement
operations and prices of their choosing. Interstate commerce
needed to be regulated across all of the states.
The
Purpose of the
Interstate Commerce Act
The law only applied to the railroads
and the purpose of the Interstate Commerce Act was as
follows:
Purpose of the Interstate Commerce Act:
To
address the issues of railroad malpractices, abuse and
discrimination
Purpose of the Interstate Commerce Act:
To
create a five-member Interstate Commerce Commission (ICC)
to regulate the economics and services of specified
carriers engaged in transportation of crops between
states
Purpose of the Interstate Commerce Act:
The law
required that Shipping rates had to be "reasonable and
just"
Purpose of the Interstate Commerce Act:
That
Railroads Shipping Rates had to be published
Purpose of the Interstate Commerce Act:
Prohibited special rates, or rebates, for individual
shippers
Purpose of the Interstate Commerce Act:
Prohibited "preference" in rates for any particular
localities
Purpose of the Interstate Commerce Act:
Price
discrimination against small markets was made illegal
Purpose of the Interstate Commerce Act:
That
railroad companies submitted annual reports to the
Interstate Commerce Commission (ICC)
Purpose of the Interstate Commerce Act:
The ICC
was empowered to investigate and prosecute railroads
that were alleged to have violated the act
Significance of the
Interstate Commerce Act
The Interstate Commerce Act
established the Interstate Commerce Commission (ICC) as the
first true federal regulatory agency. Although the law granted the
ICC the power to investigate abuses and summon witnesses, it lacked
the resources to accomplish its goals. Later administrations ensured
that reform would not go too far, by appointing pro-railroad
commissioners. It would take another 20 years before the Interstate
Commerce Act was strengthened by Congress. For additional facts
refer to the
Mann-Elkins Act.
Interstate Commerce Act for kids - President Grover Cleveland Video
The article on the Interstate Commerce Act provides detailed facts and a summary of one of the important events during his presidential term in office. The following
Grover Cleveland video will
give you additional important facts and dates about the political events experienced by the 22nd and 24th President of the
United States whose presidencies spanned from March 4, 1885 to March 4, 1889
and from March 4, 1983 - March 4,1897.
Interstate Commerce Act
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Interesting Facts about Interstate Commerce Act for kids and schools
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Summary of the Interstate Commerce Act in US history
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The Interstate Commerce Act, a major
event in US history
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Grover Cleveland history timeline
of major events
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Fast, Interstate Commerce Act
about major events in his presidency
●
Foreign & Domestic
policies of President Grover Cleveland
● Grover Cleveland Presidency and
Interstate Commerce Act for schools,
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