Tuesday, March 1, 2011

Railroad Acts - Conquering the Monster

At the time (early 1900s), the railroad industry was a boom. In fact, money and power was flowing through its slippery talons faster than could be controlled. The Interstate Commerce Commission, designed in 1887 in an attempt to curb the beast, was failing miserably. What could be done to stop the terrible tyrant?
Into the spotlight then stepped President Theodore Roosevelt. With some "motivation", Congress finally passed an effective legislation. The first one was the Elkins Act of 1903, which imposed fines on railroads giving rebates and on shippers accepting them.

Even more successful than the Elkins Act was the Hepburn Act of 1906, restricting free passes. Thanks to this Act, the Interstate Commerce Commission was expanded and given power over express companies, sleeping-car companies, and pipeline











By imposing effective legislations on railroads, Roosevelt had brandished his antitrust stick. He probably went to bed that night with a feeling of a job well done.

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