Interstate Commerce Commission (ICC)
The Interstate Commerce Commission (ICC) was a regulatory body in the United States, founded by the Interstate Commerce Act of 1887. It served as the country’s first independent regulatory agency, originally tasked with overseeing the railroad industry and later expanding its scope to include trucking, bus lines, and other modes of transportation engaged in interstate commerce.
Key Functions and Responsibilities
- Regulation of Rates: The ICC was responsible for ensuring that railroad rates were “reasonable and just” and preventing discriminatory practices.
- Investigation of Complaints: It investigated complaints of unfair practices and had the authority to issue orders to rectify those practices.
- Licensing and Permits: It granted operating licenses to carriers and regulated their adherence to safety and service standards.
Examples
- Rate Regulations: The ICC intervened to regulate the rates that companies could charge for transporting goods and passengers, preventing railroads from exercising monopolistic control over prices.
- Fair Practices: It required railroads to publish their rates and applied restrictions against unjust discrimination. For instance, it was illegal for railroads to charge more for a shorter trip than for a longer trip where the route overlapped.
- Trucking Regulation: Following the Motor Carrier Act of 1935, the ICC expanded its regulatory oversight to include the burgeoning trucking industry, ensuring compliance with similar fair practice and rate regulations.
Frequently Asked Questions (FAQs)
Q1: Why was the ICC established?
A1: The ICC was established in response to public outcry against the monopolistic practices of the railroad industry, such as unfair rates, rebates, and discriminatory practices against small markets and farmers.
Q2: When was the ICC abolished?
A2: The ICC was abolished in 1995, and its remaining functions were transferred to the Surface Transportation Board.
Q3: Did the ICC regulate other forms of transportation besides railroads?
A3: Yes, over time, the ICC’s jurisdiction expanded to include trucking, bus lines, and other forms of interstate transportation.
Q4: What was the significance of the Motor Carrier Act of 1935?
A4: The Motor Carrier Act of 1935 extended the ICC’s regulatory powers to include the emerging trucking industry, standardizing the licensing, rates, and safety records.
Related Terms
- Interstate Commerce Act: The 1887 law that established the ICC.
- Surface Transportation Board (STB): The agency that succeeded the ICC after its abolishment, continuing the regulation of rail and broader surface transportation.
- Public Utility Commission: State agencies established to oversee local utilities, often modeled after the ICC.
Online References
Suggested Books for Further Studies
- “Interstate Commerce Commission and the Railroad Industry: A History of Regulatory Policy” by Richard D. Stone
- “The Rise and Fall of Regulation: A History of the Interstate Commerce Commission” by Ari Hoogenboom
Fundamentals of Interstate Commerce Commission (ICC): Business Law Basics Quiz
Thank you for exploring the depth of regulatory history with the Interstate Commerce Commission. Happy learning!
