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Mann-Elkins Act

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American Business History

Definition

The Mann-Elkins Act was a significant piece of legislation passed in 1910 that expanded the powers of the Interstate Commerce Commission (ICC) and aimed to regulate telecommunication companies as well as railroads. This act built upon the earlier Interstate Commerce Act of 1887 by granting the ICC the authority to set shipping rates and oversee telegraph and telephone services, reflecting the growing need for federal oversight in an increasingly interconnected economy.

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5 Must Know Facts For Your Next Test

  1. The Mann-Elkins Act gave the ICC explicit authority to regulate telephone and telegraph companies, recognizing the growing importance of communication in commerce.
  2. This act allowed the ICC to set maximum rates for freight transportation, moving beyond simply mediating disputes between railroads and shippers.
  3. Under the Mann-Elkins Act, the ICC was empowered to initiate investigations without having to wait for complaints from the public or companies.
  4. The act was part of a broader Progressive Era movement focused on reducing corporate power and increasing government regulation for consumer protection.
  5. The Mann-Elkins Act also laid the groundwork for future legislation aimed at regulating monopolistic practices within various industries.

Review Questions

  • How did the Mann-Elkins Act build upon the earlier Interstate Commerce Act, and what were its main objectives?
    • The Mann-Elkins Act expanded upon the Interstate Commerce Act by giving the Interstate Commerce Commission more powers, specifically over telecommunication companies. Its main objectives included regulating shipping rates, overseeing telegraph and telephone services, and ensuring fair practices in interstate commerce. This act represented a response to the increasing complexity of economic activities and aimed to protect consumers from potential abuses by powerful companies.
  • Discuss the significance of the Mann-Elkins Act in the context of early 20th-century regulatory reforms in America.
    • The significance of the Mann-Elkins Act lies in its role within the broader trend of regulatory reforms during the Progressive Era. It illustrated a growing recognition of the need for federal oversight of industries that had previously been unregulated or inadequately regulated. By empowering the ICC to manage both railroads and telecommunications, it marked a pivotal shift toward greater government intervention aimed at curbing corporate influence and promoting fairness in business practices.
  • Evaluate how the expansion of the ICC's powers through the Mann-Elkins Act influenced future regulatory policies in telecommunications.
    • The expansion of the ICC's powers through the Mann-Elkins Act set important precedents for future regulatory policies in telecommunications. By establishing federal oversight over communication companies, it opened doors for subsequent legislation that would address monopolistic practices and ensure consumer protection. This early regulatory framework influenced later reforms, including the Telecommunications Act of 1996, which aimed to promote competition and adapt regulations to rapidly evolving technologies, illustrating how early efforts laid the foundation for modern telecommunications policy.

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