Interstate Commerce Act of 1887
Definition
This was a federal law designed to regulate the railroad industry, particularly its monopolistic practices. The law required that railroad rates be "reasonable and just," but it didn't empower the government to fix specific rates.
Analogy
Think of this act like a referee in a soccer game. Just as a referee ensures fair play and penalizes foul behavior, this act aimed to ensure fairness in business practices among railroads.
Related terms
Sherman Antitrust Act: A landmark federal statute passed in 1890 which prohibits certain business activities that reduce competition in the marketplace.
Monopoly: A situation where a single company or group owns all or nearly all of the market for a given type of product or service.
Robber Barons: A derogatory term applied to wealthy and powerful 19th-century American businessmen who were viewed as having used questionable practices to amass their wealth.
"Interstate Commerce Act of 1887" appears in:
Study guides (2)
Practice Questions (1)
- What was the primary result of the Interstate Commerce Act of 1887?
Resources
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