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Interstate Commerce Commission

The Interstate Commerce Commission (ICC) was a regulatory agency in the United States created by the Interstate Commerce Act of 1887. The agency's original purpose was to regulate railroads (and later trucking) to ensure fair rates, to eliminate rate discrimination, and to regulate other aspects of common carriers, including interstate bus lines and telephone companies. Congress expanded ICC authority to regulate other modes of commerce beginning in 1906. Throughout the 20th century, several of ICC's authorities were transferred to other federal agencies. The ICC was abolished in 1995, and its remaining functions were transferred to the Surface Transportation Board.

Interstate Commerce Commission
Seal
Agency overview
FormedFebruary 4, 1887
DissolvedJanuary 1, 1996
Superseding agency
JurisdictionUnited States
Key documents

The Commission's five members were appointed by the President with the consent of the United States Senate. This was the first independent agency (or so-called Fourth Branch).

Creation edit

The ICC was established by the Interstate Commerce Act of 1887, which was signed into law by President Grover Cleveland.[1] The creation of the commission was the result of widespread and longstanding anti-railroad agitation. Western farmers, specifically those of the Grange Movement, were the dominant force behind the unrest, but Westerners generally — especially those in rural areas — believed that the railroads possessed economic power that they systematically abused. A central issue was rate discrimination between similarly situated customers and communities.[2]: 42ff  Other potent issues included alleged attempts by railroads to obtain influence over city and state governments and the widespread practice of granting free transportation in the form of yearly passes to opinion leaders (elected officials, newspaper editors, ministers, and so on) so as to dampen any opposition to railroad practices.

Various sections of the Interstate Commerce Act banned "personal discrimination" and required shipping rates to be "just and reasonable."

President Cleveland appointed Thomas M. Cooley as the first chairman of the ICC. Cooley had been Dean of the University of Michigan Law School and Chief Justice of the Michigan Supreme Court.[3]

Initial implementation and legal challenges edit

The Commission had a troubled start because the law that created it failed to give it adequate enforcement powers.

The Commission is, or can be made, of great use to the railroads. It satisfies the popular clamor for a government supervision of the railroads, while at the same time that supervision is almost entirely nominal.

— Richard Olney, private attorney, in a letter to Charles Elliott Perkins, President of the Chicago, Burlington and Quincy Railroad, December 28, 1892.[4]

Following the passage of the 1887 act, the ICC proceeded to set maximum shipping rates for railroads. However, in the late 1890s, several railroads challenged the agency's ratemaking authority in litigation, and the courts severely limited the ICC's powers.[2]: 90ff [5]

The ICC became the United States' investigation agency for railroad accidents.[6]

Expansion of ICC authority edit

 
A 1914 cartoon shows railroad companies asking the ICC (depicted as Uncle Sam) for permission to raise rates, while the ghost of a horrified William Henry Vanderbilt looks on.

Congress expanded the commission's powers through subsequent legislation. The 1893 Railroad Safety Appliance Act gave the ICC jurisdiction over railroad safety, removing this authority from the states, and this was followed with amendments in 1903 and 1910.[7] The Hepburn Act of 1906 authorized the ICC to set maximum railroad rates, and extended the agency's authority to cover bridges, terminals, ferries, sleeping cars, express companies and oil pipelines.[8]

A long-standing controversy was how to interpret language in the Act that banned long haul-short haul fare discrimination. The Mann-Elkins Act of 1910 addressed this question by strengthening ICC authority over railroad rates. This amendment also expanded the ICC's jurisdiction to include regulation of telephone, telegraph and wireless companies.[9]

The Valuation Act of 1913 required the ICC to organize a Bureau of Valuation that would assess the value of railroad property. This information would be used to set rates.[10] The Esch-Cummins Act of 1920 expanded the ICC's rate-setting responsibilities, and the agency in turn required updated valuation data from the railroads.[11] The enlarged process led to a major increase in ICC staff, and the valuations continued for almost 20 years.[12] The valuation process turned out to be of limited use in helping the ICC set rates fairly.[13][14]

In 1934, Congress transferred the telecommunications authority to the new Federal Communications Commission.[15]

In 1935, Congress passed the Motor Carrier Act, which extended ICC authority to regulate interstate bus lines and trucking as common carriers.[16]

Ripley Plan to consolidate railroads into regional systems edit

The Transportation Act of 1920 directed the Interstate Commerce Commission to prepare and adopt a plan for the consolidation of the railway properties of the United States into a limited number of systems. Between 1920 and 1923, William Z. Ripley, a professor of political economy at Harvard University, wrote up ICC's plan for the regional consolidation of the U.S. railways.[17] His plan became known as the Ripley Plan. In 1929 the ICC published Ripley's Plan under the title Complete Plan of Consolidation. Numerous hearings were held by ICC regarding the plan under the topic "In the Matter of Consolidation of the Railways of the United States into a Limited Number of Systems".[18]

The proposed 21 regional railroads were as follows:

  1. Boston and Maine Railroad; Maine Central Railroad; Bangor and Aroostook Railroad; Delaware and Hudson Railway
  2. New Haven Railroad; New York, Ontario and Western Railway; Lehigh and Hudson River Railway; Lehigh and New England Railroad
  3. New York Central Railroad; Rutland Railroad; Virginian Railway; Chicago, Attica and Southern Railroad
  4. Pennsylvania Railroad; Long Island Rail Road
  5. Baltimore and Ohio Railroad; Central Railroad of New Jersey; Reading Railroad; Buffalo and Susquehanna Railroad; Buffalo, Rochester and Pittsburgh Railway; 50% of Detroit, Toledo and Ironton Railroad; 50% of Detroit and Toledo Shore Line Railroad; 50% of Monon Railroad; Chicago and Alton Railroad (Alton Railroad)
  6. Chesapeake and Ohio-Nickel Plate Road; Hocking Valley Railway; Erie Railroad; Pere Marquette Railway; Delaware, Lackawanna and Western Railroad; Bessemer and Lake Erie Railroad; Chicago and Illinois Midland Railway; 50% of Detroit and Toledo Shore Line Railroad
  7. Wabash-Seaboard Air Line Railroad; Lehigh Valley Railroad; Wheeling and Lake Erie Railway; Pittsburgh and West Virginia Railway; Western Maryland Railway; Akron, Canton and Youngstown Railway; Norfolk and Western Railway; 50% of Detroit, Toledo and Ironton Railroad; Toledo, Peoria and Western Railroad; Ann Arbor Railroad; 50% of Winston-Salem Southbound Railway
  8. Atlantic Coast Line Railroad; Louisville and Nashville Railroad; Nashville, Chattanooga and St. Louis Railway; Clinchfield Railroad; Atlanta, Birmingham and Coast Railroad; Gulf, Mobile and Northern Railroad; New Orleans, Jackson and Great Northern; 25% of Chicago, Indianapolis and Louisville Railway (Monon Railroad); 50% of Winston-Salem Southbound Railway
  9. Southern Railway; Norfolk Southern Railway; Tennessee Central Railway (east of Nashville); Florida East Coast Railway; 25% of Chicago, Indianapolis and Louisville Railway (Monon Railway)
  10. Illinois Central Railroad; Central of Georgia Railway; Minneapolis and St. Louis Railway; Tennessee Central Railway (west of Nashville); St. Louis Southwestern Railway (Cotton Belt); Atlanta and St. Andrews Bay Railroad
  11. Chicago and North Western Railway; Chicago and Eastern Illinois Railroad; Litchfield and Madison Railway; Mobile and Ohio Railroad; Columbus and Greenville Railway; Lake Superior and Ishpeming Railroad
  12. Great Northern-Northern Pacific Railway; Spokane, Portland and Seattle Railway; 50% of Butte, Anaconda and Pacific Railway
  13. Milwaukee Road; Escanaba and Lake Superior Railroad; Duluth, Missabe and Northern Railway; Duluth and Iron Range Railroad; 50% of Butte, Anaconda and Pacific Railway; trackage rights on Spokane, Portland and Seattle Railway to Portland, Oregon.
  14. Burlington Route; Colorado and Southern Railway; Fort Worth and Denver Railway; Green Bay and Western Railroad; Missouri-Kansas-Texas Railroad; 50% of Trinity and Brazos Valley Railroad; Oklahoma City-Ada-Atoka Railway
  15. Union Pacific Railroad; Kansas City Southern Railway
  16. Southern Pacific Railroad
  17. Santa Fe Railway; Chicago Great Western Railway; Kansas City, Mexico and Orient Railway; Missouri and North Arkansas Railroad; Midland Valley Railroad; Minneapolis, Northfield and Southern Railway
  18. Missouri Pacific Railroad; Texas and Pacific Railway; Kansas, Oklahoma and Gulf Railway; Denver and Rio Grande Western Railroad; Denver and Salt Lake Railroad; Western Pacific Railroad; Fort Smith and Western Railway
  19. Rock Island-Frisco Railway; Alabama, Tennessee and Northern Railroad; 50% of Trinity and Brazos Valley Railroad; Louisiana and Arkansas Railway; Meridian and Bigbee Railroad
  20. Canadian National; Detroit, Grand Haven and Milwaukee Railway; Grand Trunk Western Railroad
  21. Canadian Pacific; Soo Line; Duluth, South Shore and Atlantic Railway; Mineral Range Railroad

Terminal railroads proposed edit

There were 100 terminal railroads that were also proposed. Below is a sample:

  1. Toledo Terminal Railroad; Detroit Terminal Railroad; Kankakee & Seneca Railroad
  2. Indianapolis Union Railway; Boston Terminal; Ft. Wayne Union Railway; Norfolk & Portsmouth Belt Line Railroad
  3. Toledo, Angola & Western Railway
  4. Akron and Barberton Belt Railroad; Canton Railroad; Muskegon Railway & Navigation
  5. Philadelphia Belt Line Railroad; Fort Street Union Depot; Detroit Union Railroad Depot & Station; 15 other properties throughout the United States
  6. St. Louis & O'Fallon Railway; Detroit & Western Railway; Flint Belt Railroad; 63 other properties throughout the United States
  7. Youngstown & Northern Railroad; Delray Connecting Railroad; Wyandotte Southern Railroad; Wyandotte Terminal Railroad; South Brooklyn Railway

Plan rejected edit

Many small railroads failed during the Great Depression of the 1930s. Of those lines that survived, the stronger ones were not interested in supporting the weaker ones.[18] Congress repudiated Ripley's Plan with the Transportation Act of 1940, and the consolidation idea was scrapped.[19]

Racial integration of transport edit

Although racial discrimination was never a major focus of its efforts, the ICC had to address civil rights issues when passengers filed complaints.

History edit

  • April 28, 1941 - In Mitchell v. United States, the United States Supreme Court ruled that discrimination in which a colored man who had paid a first class fare for an interstate journey was compelled to leave that car and ride in a second class car was essentially unjust, and violated the Interstate Commerce Act.[20] The court thus overturns an ICC order dismissing a complaint against an interstate carrier.
  • June 3, 1946 - In Morgan v. Virginia, the Supreme Court invalidates provisions of the Virginia Code which require the separation of white and colored passengers where applied to interstate bus transport. The state law is unconstitutional insofar as it is burdening interstate commerce, an area of federal jurisdiction.[21]
  • June 5, 1950 - In Henderson v. United States, the Supreme Court rules to abolish segregation of reserved tables in railroad dining cars.[22] The Southern Railway had reserved tables in such a way as to allocate one table conditionally for blacks and multiple tables for whites; a black passenger traveling first-class was not served in the dining car as the one reserved table was in use. The ICC ruled the discrimination to be an error in judgement on the part of an individual dining car steward; both the United States District Court for the District of Maryland and the Supreme Court disagreed, finding the published policies of the railroad itself to be in violation of the Interstate Commerce Act.
  • September 1, 1953 - In Sarah Keys v. Carolina Coach Company, Women's Army Corps private Sarah Keys, represented by civil rights lawyer Dovey Johnson Roundtree, becomes the first black person to challenge the "separate but equal" doctrine in bus segregation before the ICC. While the initial ICC reviewing commissioner declined to accept the case, claiming Brown v. Board of Education (1954) "did not preclude segregation in a private business such as a bus company," Roundtree ultimately prevailed in obtaining a review by the full eleven-person commission.[23]
  • November 7, 1955 – ICC bans bus segregation in interstate travel in Sarah Keys v. Carolina Coach Company.[24] This extends the logic of Brown v. Board of Education, a precedent ending the use of "separate but equal" as a defence against discrimination claims in education, to bus travel across state lines.
  • December 5, 1960 - In Boynton v. Virginia, the Supreme Court holds that racial segregation in bus terminals is illegal because such segregation violates the Interstate Commerce Act.[25] This ruling, in combination with the ICC's 1955 decision in Keys v. Carolina Coach, effectively outlaws segregation on interstate buses and at the terminals servicing such buses.
  • September 23, 1961 - The ICC, at Attorney General Robert F. Kennedy's insistence, issues new rules ending discrimination in interstate travel. Effective November 1, 1961, six years after the commission's own ruling in Keys v. Carolina Coach Company, all interstate buses required to display a certificate that reads: "Seating aboard this vehicle is without regard to race, color, creed, or national origin, by order of the Interstate Commerce Commission."

Criticism edit

 
A Puck magazine cartoon from 1907 depicting two large bears named "Interstate Commerce Commission" and "Federal Courts" attacking Wall Street.

The limitation on railroad rates in 1906-07 depreciated the value of railroad securities, a factor in causing the panic of 1907.[26]

Some economists and historians, such as Milton Friedman assert that existing railroad interests took advantage of ICC regulations to strengthen their control of the industry and prevent competition, constituting regulatory capture.[27]

Economist David D. Friedman argues that the ICC always served the railroads as a cartelizing agent and used its authority over other forms of transportation to prevent them, where possible, from undercutting the railroads.[28]

In March 1920, the ICC had Eben Moody Boynton, the inventor of the Boynton Bicycle Railroad, committed as a lunatic to an institution in Washington, D.C.[29] Boynton's monorail electric light rail system, it was reported, had the potential to revolutionize transportation, superseding then-current train travel.[30] ICC officials said that they had Boynton committed because he was "worrying them to death" in his promotion of the bicycle railroad.[31] Based on his own testimony and that of a Massachusetts congressman,[31] Boynton won release on May 28, 1920, overcoming testimony of the ICC's chief clerk that Boynton was virtually a daily visitor at ICC offices, seeking Commission adoption of his proposal to revolutionize the railroad industry.[29]

Abolition edit

Congress passed various deregulation measures in the 1970s and early 1980s which diminished ICC authority, including the Railroad Revitalization and Regulatory Reform Act of 1976 ("4R Act"), the Motor Carrier Act of 1980 and the Staggers Rail Act of 1980. Senator Fred R. Harris of Oklahoma strongly advocated the abolition of the Commission.[32][better source needed] In December 1995, when most of the ICC's powers had been eliminated or repealed, Congress finally abolished the agency with the ICC Termination Act of 1995.[33] Final Chair Gail McDonald oversaw transferring its remaining functions to a new agency, the U.S. Surface Transportation Board (STB), which reviews mergers and acquisitions, rail line abandonments and railroad corporate filings.

ICC jurisdiction on rail safety (hours of service rules, equipment and inspection standards) was transferred to the Federal Railroad Administration pursuant to the Federal Railroad Safety Act of 1970.[34]

Before the ICC was abolished motor carriers (bus lines, trucking companies) had safety regulations enforced by the Office of Motor Carriers (OMC) under the Federal Highway Administration (FHWA.) The OMC inherited many of the "Economic" regulations enforced by the ICC in addition to the safety regulations imposed on motor carriers. In January 2000 the OMC became the Federal Motor Carrier Safety Administration (FMCSA), within the U.S. Department of Transportation. Prior to its abolition, the ICC gave identification numbers to motor carriers for which it issued licenses. The identification numbers were generally in the form of "ICC MC-000000". When the ICC was dissolved, the function of licensing interstate motor carriers was transferred to FMCSA. All interstate motor carriers that transport freight moving across state lines have a USDOT number, such as "USDOT 000000." There are private carriers, e.g. Walmart that move their own freight requiring only a USDOT number, and carriers with authority that haul freight for hire that are still required to have a USDOT number and a Motor Carrier (MC) number that replaced the ICC numbers.[35]

Legacy edit

The ICC served as a model for later regulatory efforts. Unlike, for example, state medical boards (historically administered by the doctors themselves), the seven Interstate Commerce Commissioners and their staffs were full-time regulators who could have no economic ties to the industries they regulated. Since 1887, some state and other federal agencies adopted this structure. And, like the ICC, later agencies tended to be organized as multi-headed independent commissions with staggered terms for the commissioners. At the federal level, agencies patterned after the ICC included the Federal Trade Commission (1914), the Federal Communications Commission (1934), the U.S. Securities and Exchange Commission (1934), the National Labor Relations Board (1935), the Civil Aeronautics Board (1940), Postal Regulatory Commission (1970) and the Consumer Product Safety Commission (1975).

In recent decades, this regulatory structure of independent federal agencies has gone out of fashion. The agencies created after the 1970s generally have single heads appointed by the President and are divisions inside executive Cabinet Departments (e.g., the Occupational Safety and Health Administration (1970) or the Transportation Security Administration (2002)). The trend is the same at the state level, though it is probably less pronounced.

International influence edit

The Interstate Commerce Commission had a strong influence on the founders of Australia. The Constitution of Australia provides (§§ 101-104; also § 73) for the establishment of an Inter-State Commission, modeled after the United States' Interstate Commerce Commission. However, these provisions have largely not been put into practice; the Commission existed between 1913–1920, and 1975–1989, but never assumed the role which Australia's founders had intended for it.

See also edit

Further reading edit

  • Herring, E. Pendleton (1933). "Special Interests and the Interstate Commerce Commission". American Political Science Review. 27 (5): 738–751. doi:10.2307/1946898. JSTOR 1946898. S2CID 146917713.
  • Meyer, B. H. (1902). "The Past and the Future of the Interstate Commerce Commission". Political Science Quarterly. 17 (3): 394–437. doi:10.2307/2140536. JSTOR 2140536.

References edit

  1. ^ United States. Interstate Commerce Act of 1887, Pub. L.Tooltip Public Law (United States) 49–104, 24 Stat. 379, enacted February 4, 1887.
  2. ^ a b Sharfman, I. Leo (1915). Railway Regulation. Chicago: LaSalle Extension University.
  3. ^ "Thomas McIntyre Cooley; 1824-1898". Thomas M. Cooley Law School. Lansing, MI: Western Michigan University. Retrieved 2017-02-25.
  4. ^ Bernstein, Marver H. (1955). Regulating Business by Independent Commission. Princeton University Press. p. 265. ISBN 9781400878789.
  5. ^ U.S. Supreme Court. Interstate Commerce Commission v. Cincinnati, New Orleans and Texas Pacific Railway Co., 167 U.S. 479 (1897).
  6. ^ "Accidents & Safety". Library of Congress. Retrieved 2023-08-03.
  7. ^ Safety Appliance Act of Mar. 2, 1893, 52nd Congress, 2nd session, ch. 196, 27 Stat. 531. Safety Appliance Act of March 2, 1903, 57th Congress, 2nd session, ch. 976, 32 Stat. 943. Safety Appliance Act of April 14, 1910, 61st Congress, 2nd session, ch. 160, 36 Stat. 298.
  8. ^ United States. Hepburn Act of 1906, 59th Congress, Sess. 1, ch. 3591, 34 Stat. 584, approved 1906-06-29.
  9. ^ Mann-Elkins Act of 1910, 61st Congress, ch. 309, 36 Stat. 539, approved 1910-06-18.
  10. ^ Valuation Act, 62nd Congress, ch. 92, 37 Stat. 701, enacted 1913-03-01.
  11. ^ Esch–Cummins Act, Pub.L. 66-152, 41 Stat. 456, approved 1920-02-28.
  12. ^ Gailmard, Sean; Patty, John W. (2013). Learning While Governing: Expertise and Accountability in the Executive Branch. University of Chicago Press. p. 72. ISBN 978-0226924403.
  13. ^ Martin, Albro (1992). Railroads Triumphant: The Growth, Rejection & Rebirth of a Vital American Force. New York: Oxford University Press. p. 358. ISBN 0-19-503853-3. Except to take up incredible amounts of space on library shelves, the reports of the valuation agency never served any visible purpose.
  14. ^ Rose, Mark H.; Seely, Bruce E.; Barrett, Paul F. (2006). The Best Transportation System in the World: Railroads, Trucks, Airlines, and American Public Policy in the Twentieth Century. Ohio State University Press. pp. 7–8. ISBN 978-0-8142-1036-9.
  15. ^ Communications Act of 1934, 73rd Congress, ch. 652, Public Law 416, 48 Stat. 1064, June 19, 1934. 47 U.S.C. Chapter 5.
  16. ^ Motor Carrier Act of 1935, 49 Stat. 543, ch. 498, approved 1935-08-09.
  17. ^ Miranti Jr., Paul J. (1996). "Ripley, William Z. (1867-1941)". In Chatfield, Michael; Vangermeersch, Richard (eds.). History of Accounting: An International Encyclopedia. New York: Garland Publishing. pp. 502–505. ISBN 978-0-815-30809-6.
  18. ^ a b Kolsrud, Gretchen S.; et al. (December 1975). "Appendix B. Review of Recent Railroad Merger History". A Review of National Railroad Issues (Report). Washington, D.C.: Office of Technology Assessment, United States Congress. OTA-T-14. NTIS order #PB-250622.
  19. ^ United States. Transportation Act of 1940, Sept. 18, 1940, ch. 722, 54 Stat. 898.
  20. ^ Mitchell v. United States, 313 U.S. 80 (1941).
  21. ^ Morgan v. Virginia, 328 U.S. 373 (1946)
  22. ^ Henderson v. United States, 339 U.S. 816 (1950).
  23. ^ Challenging the System: Two Army Women Fight for Equality 2009-01-25 at the Wayback Machine, Judith Bellafaire Ph.D., Curator, Women In Military Service For America Memorial Foundation
  24. ^ Sarah Keys v. Carolina Coach Company, 64 MCC 769 (1955).
  25. ^ Boynton v. Virginia, 364 U.S. 454 (1960).
  26. ^ Edwards, Adolph (1907). The Roosevelt Panic of 1907. New York: Anitrock. p. 66.
  27. ^ Friedman, Milton; Friedman, Rose (1990). Free to Choose: A Personal Statement. New York: Harcourt. p. 194. ISBN 978-0-15-633460-0.
  28. ^ Friedman, David D. (1989). The Machinery of Freedom. LaSalle, Illinois: Open Court Publishing. p. 41. ISBN 0-8126-9069-9.
  29. ^ a b "Shows His Single Track Mind Is A Sound One: E. Moody Boynton Given His Liberty". Boston Globe. May 29, 1920. p. 1. Retrieved 25 January 2020.
  30. ^ "To Build Bicycle Railway: Single Track System In Massachusetts Will Have Speed Of 160 Miles An Hour". Washington Post. June 30, 1907. p. 4/148. Retrieved 25 January 2020.
  31. ^ a b "Wm. S. Greene Helps Boynton Get His Liberty". Fall River Globe. May 29, 1920. p. 1. Retrieved 25 January 2020.
  32. ^ Walker, Jesse (2009-11-01). "Five Faces of Jerry Brown". The American Conservative (November 2009). Retrieved 2019-07-22.
  33. ^ ICC Termination Act of 1995, Pub. L.Tooltip Public Law (United States) 104–88 (text) (PDF), 109 Stat. 803, enacted December 29, 1995.
  34. ^ United States. Federal Railroad Safety Act of 1970. Pub. L.Tooltip Public Law (United States) 91–458 Approved 1970-10-16.
  35. ^ "Electronic Code of Federal Regulations (ECFR)".

Sources edit

External links edit

  • Public Broadcasting Service (PBS). "People & Events: Interstate Commerce Commission." 2011-06-28 at the Wayback Machine (Notes for the television program The American Experience: Streamliners.)
  • Historic technical reports from the Interstate Commerce Commission (and other Federal agencies) are available in the Technical Reports Archive and Image Library (TRAIL)
  • Records of the Interstate Commerce Commission and Surface Transportation Board in the National Archives (Record Group 134)
  • Johnson, Emory Richard (1922). "Interstate Commerce" . Encyclopædia Britannica (12th ed.).

interstate, commerce, commission, this, article, lend, undue, weight, certain, ideas, incidents, controversies, please, help, improve, rewriting, balanced, fashion, that, contextualizes, different, points, view, january, 2024, learn, when, remove, this, templa. This article may lend undue weight to certain ideas incidents or controversies Please help improve it by rewriting it in a balanced fashion that contextualizes different points of view January 2024 Learn how and when to remove this template message The Interstate Commerce Commission ICC was a regulatory agency in the United States created by the Interstate Commerce Act of 1887 The agency s original purpose was to regulate railroads and later trucking to ensure fair rates to eliminate rate discrimination and to regulate other aspects of common carriers including interstate bus lines and telephone companies Congress expanded ICC authority to regulate other modes of commerce beginning in 1906 Throughout the 20th century several of ICC s authorities were transferred to other federal agencies The ICC was abolished in 1995 and its remaining functions were transferred to the Surface Transportation Board Interstate Commerce CommissionSealAgency overviewFormedFebruary 4 1887DissolvedJanuary 1 1996Superseding agencySurface Transportation BoardJurisdictionUnited StatesKey documentsInterstate Commerce Act of 1887Interstate Commerce Commission Termination ActThe Commission s five members were appointed by the President with the consent of the United States Senate This was the first independent agency or so called Fourth Branch Contents 1 Creation 2 Initial implementation and legal challenges 3 Expansion of ICC authority 4 Ripley Plan to consolidate railroads into regional systems 4 1 Terminal railroads proposed 4 2 Plan rejected 5 Racial integration of transport 5 1 History 6 Criticism 7 Abolition 8 Legacy 8 1 International influence 9 See also 10 Further reading 11 References 12 Sources 13 External linksCreation editThe ICC was established by the Interstate Commerce Act of 1887 which was signed into law by President Grover Cleveland 1 The creation of the commission was the result of widespread and longstanding anti railroad agitation Western farmers specifically those of the Grange Movement were the dominant force behind the unrest but Westerners generally especially those in rural areas believed that the railroads possessed economic power that they systematically abused A central issue was rate discrimination between similarly situated customers and communities 2 42ff Other potent issues included alleged attempts by railroads to obtain influence over city and state governments and the widespread practice of granting free transportation in the form of yearly passes to opinion leaders elected officials newspaper editors ministers and so on so as to dampen any opposition to railroad practices Various sections of the Interstate Commerce Act banned personal discrimination and required shipping rates to be just and reasonable President Cleveland appointed Thomas M Cooley as the first chairman of the ICC Cooley had been Dean of the University of Michigan Law School and Chief Justice of the Michigan Supreme Court 3 Initial implementation and legal challenges editThe Commission had a troubled start because the law that created it failed to give it adequate enforcement powers The Commission is or can be made of great use to the railroads It satisfies the popular clamor for a government supervision of the railroads while at the same time that supervision is almost entirely nominal Richard Olney private attorney in a letter to Charles Elliott Perkins President of the Chicago Burlington and Quincy Railroad December 28 1892 4 Following the passage of the 1887 act the ICC proceeded to set maximum shipping rates for railroads However in the late 1890s several railroads challenged the agency s ratemaking authority in litigation and the courts severely limited the ICC s powers 2 90ff 5 The ICC became the United States investigation agency for railroad accidents 6 Expansion of ICC authority edit nbsp A 1914 cartoon shows railroad companies asking the ICC depicted as Uncle Sam for permission to raise rates while the ghost of a horrified William Henry Vanderbilt looks on Congress expanded the commission s powers through subsequent legislation The 1893 Railroad Safety Appliance Act gave the ICC jurisdiction over railroad safety removing this authority from the states and this was followed with amendments in 1903 and 1910 7 The Hepburn Act of 1906 authorized the ICC to set maximum railroad rates and extended the agency s authority to cover bridges terminals ferries sleeping cars express companies and oil pipelines 8 A long standing controversy was how to interpret language in the Act that banned long haul short haul fare discrimination The Mann Elkins Act of 1910 addressed this question by strengthening ICC authority over railroad rates This amendment also expanded the ICC s jurisdiction to include regulation of telephone telegraph and wireless companies 9 The Valuation Act of 1913 required the ICC to organize a Bureau of Valuation that would assess the value of railroad property This information would be used to set rates 10 The Esch Cummins Act of 1920 expanded the ICC s rate setting responsibilities and the agency in turn required updated valuation data from the railroads 11 The enlarged process led to a major increase in ICC staff and the valuations continued for almost 20 years 12 The valuation process turned out to be of limited use in helping the ICC set rates fairly 13 14 In 1934 Congress transferred the telecommunications authority to the new Federal Communications Commission 15 In 1935 Congress passed the Motor Carrier Act which extended ICC authority to regulate interstate bus lines and trucking as common carriers 16 Ripley Plan to consolidate railroads into regional systems editThe Transportation Act of 1920 directed the Interstate Commerce Commission to prepare and adopt a plan for the consolidation of the railway properties of the United States into a limited number of systems Between 1920 and 1923 William Z Ripley a professor of political economy at Harvard University wrote up ICC s plan for the regional consolidation of the U S railways 17 His plan became known as the Ripley Plan In 1929 the ICC published Ripley s Plan under the title Complete Plan of Consolidation Numerous hearings were held by ICC regarding the plan under the topic In the Matter of Consolidation of the Railways of the United States into a Limited Number of Systems 18 The proposed 21 regional railroads were as follows Boston and Maine Railroad Maine Central Railroad Bangor and Aroostook Railroad Delaware and Hudson Railway New Haven Railroad New York Ontario and Western Railway Lehigh and Hudson River Railway Lehigh and New England Railroad New York Central Railroad Rutland Railroad Virginian Railway Chicago Attica and Southern Railroad Pennsylvania Railroad Long Island Rail Road Baltimore and Ohio Railroad Central Railroad of New Jersey Reading Railroad Buffalo and Susquehanna Railroad Buffalo Rochester and Pittsburgh Railway 50 of Detroit Toledo and Ironton Railroad 50 of Detroit and Toledo Shore Line Railroad 50 of Monon Railroad Chicago and Alton Railroad Alton Railroad Chesapeake and Ohio Nickel Plate Road Hocking Valley Railway Erie Railroad Pere Marquette Railway Delaware Lackawanna and Western Railroad Bessemer and Lake Erie Railroad Chicago and Illinois Midland Railway 50 of Detroit and Toledo Shore Line Railroad Wabash Seaboard Air Line Railroad Lehigh Valley Railroad Wheeling and Lake Erie Railway Pittsburgh and West Virginia Railway Western Maryland Railway Akron Canton and Youngstown Railway Norfolk and Western Railway 50 of Detroit Toledo and Ironton Railroad Toledo Peoria and Western Railroad Ann Arbor Railroad 50 of Winston Salem Southbound Railway Atlantic Coast Line Railroad Louisville and Nashville Railroad Nashville Chattanooga and St Louis Railway Clinchfield Railroad Atlanta Birmingham and Coast Railroad Gulf Mobile and Northern Railroad New Orleans Jackson and Great Northern 25 of Chicago Indianapolis and Louisville Railway Monon Railroad 50 of Winston Salem Southbound Railway Southern Railway Norfolk Southern Railway Tennessee Central Railway east of Nashville Florida East Coast Railway 25 of Chicago Indianapolis and Louisville Railway Monon Railway Illinois Central Railroad Central of Georgia Railway Minneapolis and St Louis Railway Tennessee Central Railway west of Nashville St Louis Southwestern Railway Cotton Belt Atlanta and St Andrews Bay Railroad Chicago and North Western Railway Chicago and Eastern Illinois Railroad Litchfield and Madison Railway Mobile and Ohio Railroad Columbus and Greenville Railway Lake Superior and Ishpeming Railroad Great Northern Northern Pacific Railway Spokane Portland and Seattle Railway 50 of Butte Anaconda and Pacific Railway Milwaukee Road Escanaba and Lake Superior Railroad Duluth Missabe and Northern Railway Duluth and Iron Range Railroad 50 of Butte Anaconda and Pacific Railway trackage rights on Spokane Portland and Seattle Railway to Portland Oregon Burlington Route Colorado and Southern Railway Fort Worth and Denver Railway Green Bay and Western Railroad Missouri Kansas Texas Railroad 50 of Trinity and Brazos Valley Railroad Oklahoma City Ada Atoka Railway Union Pacific Railroad Kansas City Southern Railway Southern Pacific Railroad Santa Fe Railway Chicago Great Western Railway Kansas City Mexico and Orient Railway Missouri and North Arkansas Railroad Midland Valley Railroad Minneapolis Northfield and Southern Railway Missouri Pacific Railroad Texas and Pacific Railway Kansas Oklahoma and Gulf Railway Denver and Rio Grande Western Railroad Denver and Salt Lake Railroad Western Pacific Railroad Fort Smith and Western Railway Rock Island Frisco Railway Alabama Tennessee and Northern Railroad 50 of Trinity and Brazos Valley Railroad Louisiana and Arkansas Railway Meridian and Bigbee Railroad Canadian National Detroit Grand Haven and Milwaukee Railway Grand Trunk Western Railroad Canadian Pacific Soo Line Duluth South Shore and Atlantic Railway Mineral Range Railroad 1 Terminal railroads proposed edit There were 100 terminal railroads that were also proposed Below is a sample Toledo Terminal Railroad Detroit Terminal Railroad Kankakee amp Seneca Railroad Indianapolis Union Railway Boston Terminal Ft Wayne Union Railway Norfolk amp Portsmouth Belt Line Railroad Toledo Angola amp Western Railway Akron and Barberton Belt Railroad Canton Railroad Muskegon Railway amp Navigation Philadelphia Belt Line Railroad Fort Street Union Depot Detroit Union Railroad Depot amp Station 15 other properties throughout the United States St Louis amp O Fallon Railway Detroit amp Western Railway Flint Belt Railroad 63 other properties throughout the United States Youngstown amp Northern Railroad Delray Connecting Railroad Wyandotte Southern Railroad Wyandotte Terminal Railroad South Brooklyn RailwayPlan rejected edit Many small railroads failed during the Great Depression of the 1930s Of those lines that survived the stronger ones were not interested in supporting the weaker ones 18 Congress repudiated Ripley s Plan with the Transportation Act of 1940 and the consolidation idea was scrapped 19 Racial integration of transport editAlthough racial discrimination was never a major focus of its efforts the ICC had to address civil rights issues when passengers filed complaints History edit Main article Timeline of the civil rights movement April 28 1941 In Mitchell v United States the United States Supreme Court ruled that discrimination in which a colored man who had paid a first class fare for an interstate journey was compelled to leave that car and ride in a second class car was essentially unjust and violated the Interstate Commerce Act 20 The court thus overturns an ICC order dismissing a complaint against an interstate carrier June 3 1946 In Morgan v Virginia the Supreme Court invalidates provisions of the Virginia Code which require the separation of white and colored passengers where applied to interstate bus transport The state law is unconstitutional insofar as it is burdening interstate commerce an area of federal jurisdiction 21 June 5 1950 In Henderson v United States the Supreme Court rules to abolish segregation of reserved tables in railroad dining cars 22 The Southern Railway had reserved tables in such a way as to allocate one table conditionally for blacks and multiple tables for whites a black passenger traveling first class was not served in the dining car as the one reserved table was in use The ICC ruled the discrimination to be an error in judgement on the part of an individual dining car steward both the United States District Court for the District of Maryland and the Supreme Court disagreed finding the published policies of the railroad itself to be in violation of the Interstate Commerce Act September 1 1953 In Sarah Keys v Carolina Coach Company Women s Army Corps private Sarah Keys represented by civil rights lawyer Dovey Johnson Roundtree becomes the first black person to challenge the separate but equal doctrine in bus segregation before the ICC While the initial ICC reviewing commissioner declined to accept the case claiming Brown v Board of Education 1954 did not preclude segregation in a private business such as a bus company Roundtree ultimately prevailed in obtaining a review by the full eleven person commission 23 November 7 1955 ICC bans bus segregation in interstate travel in Sarah Keys v Carolina Coach Company 24 This extends the logic of Brown v Board of Education a precedent ending the use of separate but equal as a defence against discrimination claims in education to bus travel across state lines December 5 1960 In Boynton v Virginia the Supreme Court holds that racial segregation in bus terminals is illegal because such segregation violates the Interstate Commerce Act 25 This ruling in combination with the ICC s 1955 decision in Keys v Carolina Coach effectively outlaws segregation on interstate buses and at the terminals servicing such buses September 23 1961 The ICC at Attorney General Robert F Kennedy s insistence issues new rules ending discrimination in interstate travel Effective November 1 1961 six years after the commission s own ruling in Keys v Carolina Coach Company all interstate buses required to display a certificate that reads Seating aboard this vehicle is without regard to race color creed or national origin by order of the Interstate Commerce Commission Criticism edit nbsp A Puck magazine cartoon from 1907 depicting two large bears named Interstate Commerce Commission and Federal Courts attacking Wall Street The limitation on railroad rates in 1906 07 depreciated the value of railroad securities a factor in causing the panic of 1907 26 Some economists and historians such as Milton Friedman assert that existing railroad interests took advantage of ICC regulations to strengthen their control of the industry and prevent competition constituting regulatory capture 27 Economist David D Friedman argues that the ICC always served the railroads as a cartelizing agent and used its authority over other forms of transportation to prevent them where possible from undercutting the railroads 28 In March 1920 the ICC had Eben Moody Boynton the inventor of the Boynton Bicycle Railroad committed as a lunatic to an institution in Washington D C 29 Boynton s monorail electric light rail system it was reported had the potential to revolutionize transportation superseding then current train travel 30 ICC officials said that they had Boynton committed because he was worrying them to death in his promotion of the bicycle railroad 31 Based on his own testimony and that of a Massachusetts congressman 31 Boynton won release on May 28 1920 overcoming testimony of the ICC s chief clerk that Boynton was virtually a daily visitor at ICC offices seeking Commission adoption of his proposal to revolutionize the railroad industry 29 Abolition editCongress passed various deregulation measures in the 1970s and early 1980s which diminished ICC authority including the Railroad Revitalization and Regulatory Reform Act of 1976 4R Act the Motor Carrier Act of 1980 and the Staggers Rail Act of 1980 Senator Fred R Harris of Oklahoma strongly advocated the abolition of the Commission 32 better source needed In December 1995 when most of the ICC s powers had been eliminated or repealed Congress finally abolished the agency with the ICC Termination Act of 1995 33 Final Chair Gail McDonald oversaw transferring its remaining functions to a new agency the U S Surface Transportation Board STB which reviews mergers and acquisitions rail line abandonments and railroad corporate filings ICC jurisdiction on rail safety hours of service rules equipment and inspection standards was transferred to the Federal Railroad Administration pursuant to the Federal Railroad Safety Act of 1970 34 Before the ICC was abolished motor carriers bus lines trucking companies had safety regulations enforced by the Office of Motor Carriers OMC under the Federal Highway Administration FHWA The OMC inherited many of the Economic regulations enforced by the ICC in addition to the safety regulations imposed on motor carriers In January 2000 the OMC became the Federal Motor Carrier Safety Administration FMCSA within the U S Department of Transportation Prior to its abolition the ICC gave identification numbers to motor carriers for which it issued licenses The identification numbers were generally in the form of ICC MC 000000 When the ICC was dissolved the function of licensing interstate motor carriers was transferred to FMCSA All interstate motor carriers that transport freight moving across state lines have a USDOT number such as USDOT 000000 There are private carriers e g Walmart that move their own freight requiring only a USDOT number and carriers with authority that haul freight for hire that are still required to have a USDOT number and a Motor Carrier MC number that replaced the ICC numbers 35 Legacy editThis section does not cite any sources Please help improve this section by adding citations to reliable sources Unsourced material may be challenged and removed November 2020 Learn how and when to remove this template message The ICC served as a model for later regulatory efforts Unlike for example state medical boards historically administered by the doctors themselves the seven Interstate Commerce Commissioners and their staffs were full time regulators who could have no economic ties to the industries they regulated Since 1887 some state and other federal agencies adopted this structure And like the ICC later agencies tended to be organized as multi headed independent commissions with staggered terms for the commissioners At the federal level agencies patterned after the ICC included the Federal Trade Commission 1914 the Federal Communications Commission 1934 the U S Securities and Exchange Commission 1934 the National Labor Relations Board 1935 the Civil Aeronautics Board 1940 Postal Regulatory Commission 1970 and the Consumer Product Safety Commission 1975 In recent decades this regulatory structure of independent federal agencies has gone out of fashion The agencies created after the 1970s generally have single heads appointed by the President and are divisions inside executive Cabinet Departments e g the Occupational Safety and Health Administration 1970 or the Transportation Security Administration 2002 The trend is the same at the state level though it is probably less pronounced International influence edit The Interstate Commerce Commission had a strong influence on the founders of Australia The Constitution of Australia provides 101 104 also 73 for the establishment of an Inter State Commission modeled after the United States Interstate Commerce Commission However these provisions have largely not been put into practice the Commission existed between 1913 1920 and 1975 1989 but never assumed the role which Australia s founders had intended for it See also editAirline deregulation in the United States History of rail transport in the United States United States administrative lawFurther reading editHerring E Pendleton 1933 Special Interests and the Interstate Commerce Commission American Political Science Review 27 5 738 751 doi 10 2307 1946898 JSTOR 1946898 S2CID 146917713 Meyer B H 1902 The Past and the Future of the Interstate Commerce Commission Political Science Quarterly 17 3 394 437 doi 10 2307 2140536 JSTOR 2140536 References edit United States Interstate Commerce Act of 1887 Pub L Tooltip Public Law United States 49 104 24 Stat 379 enacted February 4 1887 a b Sharfman I Leo 1915 Railway Regulation Chicago LaSalle Extension University Thomas McIntyre Cooley 1824 1898 Thomas M Cooley Law School Lansing MI Western Michigan University Retrieved 2017 02 25 Bernstein Marver H 1955 Regulating Business by Independent Commission Princeton University Press p 265 ISBN 9781400878789 U S Supreme Court Interstate Commerce Commission v Cincinnati New Orleans and Texas Pacific Railway Co 167 U S 479 1897 Accidents amp Safety Library of Congress Retrieved 2023 08 03 Safety Appliance Act of Mar 2 1893 52nd Congress 2nd session ch 196 27 Stat 531 Safety Appliance Act of March 2 1903 57th Congress 2nd session ch 976 32 Stat 943 Safety Appliance Act of April 14 1910 61st Congress 2nd session ch 160 36 Stat 298 United States Hepburn Act of 1906 59th Congress Sess 1 ch 3591 34 Stat 584 approved 1906 06 29 Mann Elkins Act of 1910 61st Congress ch 309 36 Stat 539 approved 1910 06 18 Valuation Act 62nd Congress ch 92 37 Stat 701 enacted 1913 03 01 Esch Cummins Act Pub L 66 152 41 Stat 456 approved 1920 02 28 Gailmard Sean Patty John W 2013 Learning While Governing Expertise and Accountability in the Executive Branch University of Chicago Press p 72 ISBN 978 0226924403 Martin Albro 1992 Railroads Triumphant The Growth Rejection amp Rebirth of a Vital American Force New York Oxford University Press p 358 ISBN 0 19 503853 3 Except to take up incredible amounts of space on library shelves the reports of the valuation agency never served any visible purpose Rose Mark H Seely Bruce E Barrett Paul F 2006 The Best Transportation System in the World Railroads Trucks Airlines and American Public Policy in the Twentieth Century Ohio State University Press pp 7 8 ISBN 978 0 8142 1036 9 Communications Act of 1934 73rd Congress ch 652 Public Law 416 48 Stat 1064 June 19 1934 47 U S C Chapter 5 Motor Carrier Act of 1935 49 Stat 543 ch 498 approved 1935 08 09 Miranti Jr Paul J 1996 Ripley William Z 1867 1941 In Chatfield Michael Vangermeersch Richard eds History of Accounting An International Encyclopedia New York Garland Publishing pp 502 505 ISBN 978 0 815 30809 6 a b Kolsrud Gretchen S et al December 1975 Appendix B Review of Recent Railroad Merger History A Review of National Railroad Issues Report Washington D C Office of Technology Assessment United States Congress OTA T 14 NTIS order PB 250622 United States Transportation Act of 1940 Sept 18 1940 ch 722 54 Stat 898 Mitchell v United States 313 U S 80 1941 Morgan v Virginia 328 U S 373 1946 Henderson v United States 339 U S 816 1950 Challenging the System Two Army Women Fight for Equality Archived 2009 01 25 at the Wayback Machine Judith Bellafaire Ph D Curator Women In Military Service For America Memorial Foundation Sarah Keys v Carolina Coach Company 64 MCC 769 1955 Boynton v Virginia 364 U S 454 1960 Edwards Adolph 1907 The Roosevelt Panic of 1907 New York Anitrock p 66 Friedman Milton Friedman Rose 1990 Free to Choose A Personal Statement New York Harcourt p 194 ISBN 978 0 15 633460 0 Friedman David D 1989 The Machinery of Freedom LaSalle Illinois Open Court Publishing p 41 ISBN 0 8126 9069 9 a b Shows His Single Track Mind Is A Sound One E Moody Boynton Given His Liberty Boston Globe May 29 1920 p 1 Retrieved 25 January 2020 To Build Bicycle Railway Single Track System In Massachusetts Will Have Speed Of 160 Miles An Hour Washington Post June 30 1907 p 4 148 Retrieved 25 January 2020 a b Wm S Greene Helps Boynton Get His Liberty Fall River Globe May 29 1920 p 1 Retrieved 25 January 2020 Walker Jesse 2009 11 01 Five Faces of Jerry Brown The American Conservative November 2009 Retrieved 2019 07 22 ICC Termination Act of 1995 Pub L Tooltip Public Law United States 104 88 text PDF 109 Stat 803 enacted December 29 1995 United States Federal Railroad Safety Act of 1970 Pub L Tooltip Public Law United States 91 458 Approved 1970 10 16 Electronic Code of Federal Regulations ECFR Sources editBarnes Catherine A 1983 Journey from Jim Crow The Desegregation of Southern Transit New York Columbia University Press ISBN 978 0 231 05380 8 Catsam Derek Charles 2009 Freedom s Main Line The Journey of Reconciliation and the Freedom Rides Lexington KY University Press of Kentucky ISBN 978 0 8131 2511 4 Kolko Gabriel 1965 Railroads and Regulation 1877 1916 Princeton University Press ISBN 978 0 8371 8885 0 Stone Richard D 1991 The Interstate Commerce Commission and the railroad industry a history of regulatory policy New York Praeger ISBN 978 0 275 93941 0 White Richard 2011 Railroaded The Transcontinentals and the Making of Modern America W W Norton amp Company ISBN 978 0 393 06126 0 External links edit nbsp Wikimedia Commons has media related to Interstate Commerce Commission Public Broadcasting Service PBS People amp Events Interstate Commerce Commission Archived 2011 06 28 at the Wayback Machine Notes for the television program The American Experience Streamliners Historic technical reports from the Interstate Commerce Commission and other Federal agencies are available in the Technical Reports Archive and Image Library TRAIL Records of the Interstate Commerce Commission and Surface Transportation Board in the National Archives Record Group 134 Johnson Emory Richard 1922 Interstate Commerce Encyclopaedia Britannica 12th ed Retrieved from https en wikipedia org w index php title Interstate Commerce Commission amp oldid 1203815298, wikipedia, wiki, 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