For any railroad that resisted, the iccs conditions would remain in effect until the outcome of. Why did theodore roosevelt get congress to pass the hepburn act. The act also established a fivemember enforcement board known as the interstate commerce commission. He also pursued a railroad monopoly, took on the meatpacking trust, and attacked oil, tobacco, and other monopolies.
The hepburn railway regulation act of 1906 was a major legislative achievement of the progressive era. In his second presidency, he started the square deal. The elkins act, which had the same principles as the hepburn act, was not as strong and did not have enough power to control the railroads and thus failed in achieving true railroad regulation. Hepburn act railroad regulation act 1906 act aiming to restore regulatory from history us history at boston latin academy. Roosevelt supported further railroad regulation in addition to that already on the books, and ultimately signed the hepburn act of 1906 which, while not as radical as what he had sought, he considered satisfactory. Rail lines extended cheaper rates to large shippers by rebating a portion of the charge, operated to the disadvantage of small shippers.
The interstate commerce act 1887 had long proved insufficient in safeguarding the interests of those dependent upon the railroads. Full text of the commodity clause of the hepburn act. Also in 1906, he passed the meat inspection act b to oversee the meat packing industry after upton sinclairs book, the jungle, exposed its practices and caused public outrage. Powered by create your own unique website with customizable templates. In addition, the icc could view the railroads financial records. Next, the square deal went after the meat industry. As early as 1871, railroad regulation had been enacted within individual states, in response to agitation by farmers for rate controls. To the north, the newly formed canadian national railway was itself a crown corporation, owned by the canadian government. Hepburn regulation act in 1906, this legislation gave the government regulatory authority. In 1887 congress passed the interstate commerce act, making the railroads the first industry subject to federal regulation. A different law, the hepburn act, written in the councils of the roosevelt. And each one was able to prevail upon congress to pass legislation in keeping.
The elkins act of 1903 authorizes interstate commerce commission icc to impose heavy fines on railroad companies that offered rebates and on shippers who accepted these rebates. This perception led to the industrys considerable regulation following passage of three notable bills. Miller argues persuasively that even the state granger laws of the 1870s were more the work of river town businessmen who had been discommoded by the com. Each, in different ways, considerably expanded the interstate commerce commissions icc power over the railroads, which ultimately led to many failures through the. Railroad regulation elkins act, hepburn act, adamson act. Both the elkins act and the hepburn act increased the. Theodore roosevelt wanted to protect the american people from the exploitation of the railroads. Before sharing sensitive information, make sure youre on a federal government site. The development of the icc and federal legislation.
There were two noteworthy bills passed into law at this time, the elkins act of 1903 and hepburn act of 1906. With this 1903 act congress sought to strengthen the power of the interstate commerce commission to set maximum railroad freight rates. Jun 24, 2012 cost of railroad transportation, railroad accounts, and governmental regulation of railroad tariffs classic reprint fink, albert on. Full text of the commodity clause of the hepburn act see other formats stop early journal content on jstor, free to anyone in the world this article is one of nearly 500,000 scholarly works digitized and made freely available to everyone in the world by jstor. Citing the shortcomings of the elkins act, progressives began to call for greater regulation of railroad interests, and, in 1906, president roosevelt signed the hepburn act to replace the elkins act. It increased the iccs membership from five to seven, empowered it to fix reasonable railroad rates, and broadened its jurisdiction. Signed by taft, it bolstered the regulatory powers of the interstate commerce commission and supported labor reforms. Roosevelt believes that over speculation will occur and thus he is trying to control it by using the hepburn act. This movement led to the new yorks hepburn committee of 1879. Railroad regulation, the staggers act and path dependence. In retrospect, perhaps his efforts were too sweeping although they did prove effective. This deal first passed hepburn railroad regulation act of 1906 which put regulations on the industry. Along with the elkins act of 1903, the hepburn act, named for its sponsor, eleventerm republican william peters hepburn, was a subset of one of president theodore roosevelts major goals. Jun 03, 2019 roosevelt passed the hepburn act a in 1906, giving the interstate commerce commission more power to determine railroad charges.
Scholars consider the hepburn act the most important piece of legislation affecting. Over the strenuous objections of the railroad industry and wall street, president. William hepburn of iowa, chairman of the house commerce commission, the act passed after a series of unpopular rate increases by railroad corporations. The railroads had abused their power over trade and transportation. Troubled subject of railroad regulation 341 that agitation for a federal railroad law in the 1880s was a legacy of the granger movement of the 1870s. Railroads favored the act, because it prevented loss of revenue. A brief history of railroad regulation and deregulation. The hepburn act 1906 was strongly endorsed by president teddy roosevelt, who adamantly believed that the government should increase regulation and supervision of all railways. The meat inspection act demanded meats that were shipped across state lines be inspected by the federal government. The passage of the hepburn act put more teeth into railroad. The first significant federal regulation the interstate commerce act followed in 1887.
Railroads became increasingly important to the expanding nation, and unfair railroad practices proliferated. From subsidies to nationalization marc scribner september 17, 2012 cei has long made it its mission to highlight to downsides and dangers of economic regulation. Apush chapter 23 questions flashcard test, questions and. The hepburn act is a 1906 united states federal law that gave the interstate commerce. In 1906, the hepburn act granted the icc the power to set maximum rates.
If youre having any problems, or would like to give some feedback, wed love to hear from you. United states history railroads, regulations and the tariff. Triangle shirtwaist factory fire disastrous industrial fire of 1911 that spurred workmens compensation laws and some state regulation of wages and hours in new york. The hepburn rate act was intended to give power to the interstate commerce commission icc to regulate railroad shipping rates. Civil war until the late 1870s, railroads in this country were not generally subject to interference from the national government. This power enabled the government to discontinue free passes to loyal shippers. The interstate commerce act of 1887 is a united states federal law that was designed to regulate the railroad industry, particularly its monopolistic practices. The hepburn act 1906 was passed to transfer power from the private sector to the federal governmentthrough the bolstering of the interstate commerce commission the government was able to regulate railroad shipping rates.
Sought to restore some regulatory authority to the government by giving the icc the authority to inspect the books of railroad companies, a relatively modest expansion of its powers. Trust busting and government regulations on economy. Enacted in the early days of world war i, the selective service act of 1917 authorized the countrys first military draft. Jul 22, 2019 the hepburn rate act was intended to give power to the interstate commerce commission icc to regulate railroad shipping rates. Why did theodore roosevelt get involved with peace talks during the russojapanese war. This law allowed the railroads, in effect, to administer their rates.
Sought to restore some regulatory authority to the government by giving the icc the authority to inspect the books of railroad companies, a. United states united states theodore roosevelt and the progressive movement. Money back guarantee ensures you receive the item you ordered or get your money back. Meat inspection act after upton sinclairs book, the jungle, was released, theodore roosevelt pushed to regulate the meat purchased to. United states theodore roosevelt and the progressive. The act required railroads to hold to their published rates and forbade rate cutting and rebates. Nec future is the federal railroad administrations fra comprehensive plan for improving the northeast corridor nec from washington, d. Through nec future, the fra has worked closely with nec states, railroads, stakeholders, and the public to. It imposed stricter control over railroads and expanded powers of the interstate commerce commission, including giving the icc the power to set maximum rates. By the conclusion of the war, 24 million men had registered for military service. Midgley a veteran pool organizer and samuel spencer were anxious to bring privatecar railroad lines under regulation. The hepburn act was passed by congress to increase the authority of the interstate commerce commission over railroads and certain other types of. It was in 1906 that the railroads fought their fight to a finish against federal regulation, frank h. Dec 23, 2019 the hepburn act 1906 is a united states federal law that formally gave the interstate commerce commission the authority to establish maximum railroad rates.
Chapter 22 study guide alan brinkley the unfinished. The book the octopus by frank norris written in 1901 brought the abuses of the railroads to the public attention. With this act, congress strengthened the interstate commerce commission icc, expanding its authority and empowering it to set railroad rates, institute standardized accounting practices, and require rail companies to file annual reports. The hepburn act of 1906 was a bill that fortified the powers of the interstate commerce commission icc and strengthened federal regulation of railroads. Roosevelt responded by pushing for the meat inspection act and the pure. Hepburn railway act set max shipping rates, uniform method of bookkeeping h. The battle for national reform theodore roosevelt and. The battle over railroad regulation and the interstate commerce commission provides a good example of the shortcomings of this thesis. The elkins act ended the common practice of the railroads granting rebates to their most valued customers. Sep 24, 2012 theodore roosevelt, the son of theodore roosevelt, sr. The interstate commerce act of 1887, regulating the railroads, was one of the first.
The hepburn act was an act that regulated the maximum railroad rates and this ultimately ended the free passes to loyal customers. Public opinions pressure for tighter regulation led to the 1906 enactment of the hepburn act, which strengthened the powers of the interstate commerce. The hepburn act also expanded the iccs jurisdiction to include pipelines, ferries. Reactions to the hepburn act regarding railroads freight rates, julydecember 1906 as discussed in a prior post, the hepburn act, which became law on june 29, 1906, empowered the interstate commerce commission icc, upon complaint, to replace a railroads increased freight rates if the icc determined found them to be unreasonable. In 1903, the elkins antirebate act forbade the carriers from giving large and powerful shippers rebates from the published freight tariffs. The troubled subject of railroad regulation in the gilded. Railroads and the political system have been intertwined since the first rail systems in the. Jul 15, 2018 the hepburn act was passed at the urging of roosevelt to regulate the railroad industry. The hepburn act managed to markedly reduce the practice of giving. The legislation was strongly endorsed by president theodore roosevelt who firmly believed that the federal government must increase its supervision and regulation of the railways engaged in interstate commerce. In addition, the icc could view the railroads financial records, a task simplified by standardized bookkeeping systems. The hepburn act 1906 allowed the icc to set maximum railroad rates and to inspect the financial records of railroad companies.
Until the hepburn act of 1906 was passed, the problem of a. For general help, questions, and suggestions, try our dedicated support forums. Gentlemens agreement us steel corp opened their books to the b of c and was told privately7 of wrong doings g. Railroad regulation by the states was renewed after the civil war, beginning with. Railroads and regulation, 18771916 book, 1970 worldcat. He urged the passage of the elkins act of 1903 and the hepburn act of 1906, both of which strengthened the position of the interstate commerce commission to regulate railroad prices. The hepburn act set maximum freight rates for railroads, representing the greater interests of americans. Reactions to the hepburn act regarding railroads freight. Pages in category united states railroad regulation the following 42 pages are in this category, out of 42 total. Moreover, certain problems with which only the federal government was apparently competent to deal cried out for solution.
The hepburn act 1906 was strongly endorsed by president teddy roosevelt, who adamantly believed that the government should. Railroad regulation elkins act, hepburn act, adamson act background hepburn act background elkins act the elkins act established in 1903 authorized the interstate commerce commission to impose heavy fines on railroads that offered rebates, and upon the shippers that accepted. Railroad regulation elkins act, hepburn act, adamson act by. The elkins act and the hepburn act regulated railroads by. At the end of the civil war, the united states ended mandatory military service. The adamson act 1916 established an eighthour day for railroad. The hepburn act strengthened existing railroad regulations in the following ways. In his second term in office, roosevelt signed legislation on progressive issues such as factory inspections, child labor, and business regulation. The law provided further that rates had to be published and that violations of the law would find both the railroad and the shipper liable for prosecution. Both the elkins act and the hepburn act increased the governments ability to c. Andrew carnegie, too, popped up to endorse the act.
In quest of stability, 18771883 agitation for a federal railroad law, 18841886 formative years of the interstate commerce commission, 18871890 competition and crises. Conservative senators who opposed the legislation, acting on behalf of the railroad industry. Harriman, second only to morgan in controlling railroads, favored the hepburn act. Congress passed the law largely in response to public demand that railroad operations be regulated. This led to the discontinuation of free passes to loyal shippers.
This is very important because major concessions were given by the federal government to both progressive era reformers and big businesses so that a temporary alliance could be. In 1906, the hepburn act was passed, also with business backing. The railroad magnate cassatt spoke out as a major proponent of the act and said that he had long endorsed federal rate regulation. Its rival, canadian pacific, was a private corporation, but both were closely regulated, as were the nationalized railroads of mexico beginning in the late 1920s. This measure brought some improvement, but other abuses needed to be addressed. Elkins act 1903, the hepburn act 1906 and, during william howard tafts term as. Icc termination act of 1995 the interstate commerce commission icc was established in 1887 as the first regulatory agency to regulate the railroads.
Martin was brought up to believe that two great milestones in the government regulation of economic activitythe hepburn act of 1906 and the mann. Jun 15, 2016 the elkins act and the hepburn act regulated railroads by. Hepburn act effective railroad regulation law of 1906 that greatly strengthened the interstate commerce commission. Conservative republicans pushed back by denying roosevelt the. George hamlin fills in for don phillips, who will return next month. Theodore roosevelt and the modern presidency mises institute. Therefore, the elkins act and the hepburn act regulated railroads in a sort of financial way. The legislation, which became known as the hepburn act, proposed.
Jul 06, 2017 pure food and drug act because of the need to restrict the sale of dangerous or ineffective medications to the public, president roosevelt passed this legislation in 1906. Hepburn act a law that strengthened the ratemaking power of the interstate commerce commission, again reflecting the eras desire to control the power of the railroads. In 1906 roosevelt helped push through a meat inspection act, the pure food and drug act, and the hepburn act. The act required that railroad rates be reasonable and just, but did not empower the government to fix specific rates. The hepburn act is a 1906 united states federal law that gave the interstate commerce commission icc the power to set maximum railroad rates and extend its jurisdiction.
Regulation meant protecting the interests of consumers as well as controlling the. The passage of the hepburn act put more teeth into railroad regulation from history 53777 at houston community college. By 1901 the reform upheaval was too strong to be contained within state boundaries. Cost of railroad transportation, railroad accounts, and. In the neillreynolds report of 1906, the meat industry was accused of. The two accomplishments of the socalled square deal were the hepburn railroad regulation act of 1906 which sought to restore some regulatory authority to the government by giving the icc authority to inspect the books of railroad companies and the pure food and drug act which restricted the sale of dangerous or ineffective medications. The elkins act imposed heavy fines on railroads that gave reimbursements, which had been stated as illegal. Study 47 terms apush chapter 22 flashcards quizlet.
The sign shows where the people are headed if they allow the monopolies to continue. May 06, 2010 the elkins act 1903 and the hepburn act 1906 were legislation to do with the railroads in the us. This was done to allow the icc to oversee the creation of the railroad. The hepburn act is a 1906 united states federal law that gave the interstate commerce commission icc the power to set maximum railroad rates and extended its jurisdiction. The elkins act prevented railroads from giving discounts through rebates to their biggest customers. The club roosevelt holds in his hand symbolizes that greater railroad regulation that he is imposing on the alliance between companies and railroads.
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