The Interstate Commerce Commission (ICC) was an independent federal agency in the United States, established through the Interstate Commerce Act of 1887. Its primary mission was to regulate railroads (and later other modes of transportation) to ensure fair rates, eliminate rate discrimination, and oversee other aspects of common carriers. The ICC was abolished in 1995, transferring its remaining functions to the Surface Transportation Board (STB).
Historical Context and Formation
Establishment and Early Years
The ICC was created in response to widespread public indignation over perceived abuses by the railroad industry, which held substantial power over the American economy during the late 19th century. The agency was designed to address monopolistic practices, ensuring that rates were “just and reasonable” and preventing discriminatory practices that favored certain shippers or regions.
Legislative Background
The establishment of the ICC was driven by the following legislative acts:
- Interstate Commerce Act of 1887: This act created the ICC and set out its initial mandate to regulate railroad rates and practices.
- Elkins Act of 1903: Strengthened the ICC by addressing rebate practices and enforcing fair treatment in rate setting.
- Hepburn Act of 1906: Expanded the ICC’s power to include setting maximum railroad rates and expanded its jurisdiction over bridges, terminals, ferries, and oil pipelines.
Evolution and Expansion
Over time, the ICC’s jurisdiction extended beyond railroads to cover trucking, bus lines, and other transportation means, reflecting the changing landscape of interstate commerce.
Key Regulatory Areas
- Rate Regulation: Ensured fair pricing for the services provided by carriers.
- Service Regulation: Monitored and regulated the terms of service offered by carriers.
- Anti-Discrimination: Ensured that carrier services and rates did not unjustly favor or disadvantage particular customers or regions.
Decline and Abolition
The ICC’s relevance began to wane with the deregulation trends of the 1980s and 1990s, as the transportation industry increasingly shifted towards market-driven dynamics. The Staggers Rail Act of 1980 and the Motor Carrier Act of 1980 significantly reduced the ICC’s regulatory grip. Finally, the ICC Termination Act of 1995 formally abolished the Commission, with its remaining functions absorbed by the newly formed Surface Transportation Board.
Comparison with Modern Regulatory Bodies
Surface Transportation Board (STB)
The STB now carries out many of the regulatory functions that once fell to the ICC, albeit evolved to suit a more modern and deregulated transportation environment. The focus has shifted more towards dispute resolution and the oversight of rail mergers and acquisitions.
Key Definitions and Related Terms
- Common Carrier: A service provider that offers transportation services to the general public under the license or authority provided by a regulatory body.
- Rate Discrimination: Charging different rates to different customers for an identical service without a corresponding difference in costs.
- Surface Transportation Board (STB): The federal agency that succeeded the ICC, continuing to oversee certain aspects of railroad rate and service disputes and mergers.
FAQs
Why was the ICC created?
What led to the abolition of the ICC?
What is the legacy of the ICC?
References
- U.S. Government Publishing Office. Interstate Commerce Act of 1887. Link
- Surface Transportation Board. About the STB. Link
- Historical archives on U.S. railroad regulation. Link
Summary
The Interstate Commerce Commission played a pivotal role in shaping the regulation of interstate commerce in the United States from its establishment in 1887 until its dissolution in 1995. Evolving through various legislative changes, the ICC’s legacy continues to impact modern regulatory practices, primarily through its successor, the Surface Transportation Board. Understanding the history and functions of the ICC offers valuable insights into the development and current state of U.S. transportation regulation.
