Definition
The Interstate Commerce Commission (ICC) was an independent agency of the United States federal government created to regulate the railroads (and later other carriers) to ensure fair rates, eliminate rate discrimination, and regulate other aspects of common carriers. The ICC was established by the Interstate Commerce Act of 1887 and was abolished in 1995, with its functions transferred to other federal agencies.
History and Purpose
- Founded: 1887
- Abolished: 1995
- Purpose: To ensure the public receives fair and reasonable rates and services from carriers and transportation service firms involved in interstate commerce.
- Scope: Initially focused on railroads, later expanded to cover trucking, the interstate bus lines, and other modes of transportation.
- Key Legislation: Interstate Commerce Act of 1887
Examples
- Rate Regulation: The ICC controlled freight rates to prevent unfair pricing practices by railroad companies.
- Eliminating Discriminatory Practices: The ICC worked to eliminate discriminatory practices where larger manufacturers might receive lower shipping rates than smaller businesses.
Frequently Asked Questions (FAQs)
What was the primary function of the ICC?
The primary function of the Interstate Commerce Commission was to regulate the economics and services of specified carriers engaged in transportation between states, with an emphasis on ensuring fair and reasonable rates and eliminating discriminatory practices.
What legislation led to the formation of the ICC?
The ICC was formed through the Interstate Commerce Act of 1887, which was the first federal law to regulate private industry in the United States.
Why was the ICC abolished?
The ICC was abolished as part of the deregulatory trend that started in the 1970s. Its remaining functions were transferred to the Surface Transportation Board (STB) and other federal agencies to streamline federal oversight of transportation industries.
Which types of transportation did the ICC regulate?
The ICC regulated railroads initially, but its authority later included trucking, bus lines, water carriers, and pipelines involved in interstate commerce.
What agency took over most of the ICC functions after its abolition?
The Surface Transportation Board (STB) took over many of the functions formerly performed by the ICC.
Related Terms
- Surface Transportation Board (STB): The federal agency that took over many of the responsibilities of the Interstate Commerce Commission after its dissolution.
- Interstate Commerce Act: 1887 legislation that established the ICC and was the first federal law to regulate unfair business practices.
- Deregulation: Reduction or elimination of government power in a particular industry, often seeking to improve efficiency and competition.
Online References
Suggested Books for Further Studies
- “The Interstate Commerce Commission and the Railroad Industry: A History of Regulatory Policy” by Richard D. Stone
- “The Economic Regulation of Business and Industry: A Comprehensive History” by Claire E. Gillon
- “Regulation of the Railroad Industry: American Railroad Regulation in Historical Perspective” by Charles R. Geisst
Fundamentals of the Interstate Commerce Commission (ICC): Business Law Basics Quiz
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