Tuesday, March 1, 2011

Railroad Acts

Before 1903, the Interstate Commerce of 1887 proved feeble in regulating the railroad industry and barons could appeal the commission's decisions on rates to the federal courts.

Elkins Act of 1903: This was aimed at the rebates. Heavy fines could be imposed on the railroads that gave rebates and the shippers that accepted them.



Hepburn Act of 1906: Free passes were severely restricted, existing rates were nullified, and maximum rates were stipulated in the hands of the Interstate Commerce Commission.

These railroad acts were a building block for President Theodore Roosevelt to exert his big stick over other large businesses and try to reduce their power.

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