Interstate Commerce Commission

Definition

The Interstate Commerce Commission (ICC) was a regulatory body established in 1887 to oversee and regulate the railroad industry, particularly with regards to interstate commerce. It played a significant role in the economic and political landscape of the United States during the late 19th and early 20th centuries.

5 Must Know Facts For Your Next Test

1. The ICC was created in response to public outcry over the monopolistic practices and abusive pricing policies of the railroad industry during the late 19th century.
2. The ICC was granted the authority to investigate railroad rates and practices, and to set maximum rates for interstate transportation.
3. The ICC's jurisdiction was gradually expanded over time to include other modes of transportation, such as trucking and air travel.
4. The ICC played a key role in the enforcement of the Sherman Antitrust Act, which was passed in 1890 to combat monopolistic practices in the economy.
5. The ICC's regulatory power and influence waned in the latter half of the 20th century, as the government shifted towards a more deregulatory approach to the economy.

Review Questions

• Explain the historical context and purpose behind the creation of the Interstate Commerce Commission.
  • The Interstate Commerce Commission (ICC) was established in 1887 in response to growing public concerns over the monopolistic practices and abusive pricing policies of the railroad industry during the late 19th century. The railroad industry had become increasingly consolidated, with a few large companies dominating the market and using their market power to charge exorbitant rates and engage in discriminatory practices. The creation of the ICC was intended to provide a regulatory body with the authority to investigate and oversee the railroad industry, particularly with regards to interstate commerce, in order to protect the public interest and promote fair competition.
• Describe the evolution of the ICC's jurisdiction and regulatory powers over time.
  • The ICC's original mandate was to investigate railroad rates and practices, and to set maximum rates for interstate transportation. Over time, the ICC's jurisdiction was gradually expanded to include other modes of transportation, such as trucking and air travel. This expansion of the ICC's regulatory authority was driven by the increasing importance of these other transportation sectors to the broader economy and the need for consistent oversight and regulation across different modes of transportation. Additionally, the ICC played a key role in the enforcement of the Sherman Antitrust Act, which was passed in 1890 to combat monopolistic practices in the economy. The ICC's regulatory power and influence, however, began to wane in the latter half of the 20th century, as the government shifted towards a more deregulatory approach to the economy.
• Analyze the significance of the Interstate Commerce Commission in the context of the Kennedy Promise and the broader economic and political landscape of the United States.
  • The Interstate Commerce Commission (ICC) was a significant regulatory body that played a crucial role in shaping the economic and political landscape of the United States during the late 19th and early 20th centuries. Its creation and evolution were directly tied to the broader push for antitrust legislation and the regulation of monopolistic practices, which were key components of the Kennedy Promise. The ICC's authority to investigate and oversee the railroad industry, as well as its expanded jurisdiction over other transportation sectors, made it a central player in the government's efforts to promote fair competition and protect the public interest. While the ICC's influence waned in the latter half of the 20th century, its legacy as a regulatory agency responsible for ensuring the proper functioning of the nation's transportation infrastructure and the broader economy remains an important part of the historical context surrounding the Kennedy Promise and the government's role in regulating the economy.

Related terms

Interstate Commerce: Economic activity that involves the transportation of goods or services across state lines, as opposed to commerce that is confined within a single state.

Antitrust Legislation: Laws designed to promote fair competition by regulating monopolistic practices and preventing the concentration of economic power in the hands of a few large businesses.

Regulatory Agency: A government body responsible for overseeing and enforcing rules and regulations within a specific industry or sector of the economy.