Student Question
What were three negative effects of the Interstate Commerce Act of 1887?
Quick answer:
The Interstate Commerce Act of 1887, intended to regulate railroad monopolies, had several negative effects. Firstly, its contradictory language sometimes promoted and sometimes penalized competition. Secondly, the Interstate Commerce Commission (ICC) lacked enforcement power, further weakened by a Supreme Court ruling limiting its authority over rates. Lastly, the act's goal to eliminate discriminatory rate plans was undermined by the subjective nature of defining "discrimination," leading to inconsistent applications.
The goal of the Interstate Commerce Act of 1887 was to address the issue of railroad monopolies. While the Act had great intentions, there were resulting negative effects.
1. The terms used in the writing of the law often times contradicted one another. For example: in some instances competition was promoted and in other situations competition was penalized.
2. The 5 member board had little power to enforce the goals of the ICA. The authority given to them was ambiguous at best, and further weakened by the Supreme Court's ruling that the ICC could not establish standards for rates (eNotes 2007)
3. The act aimed to eliminate discrimination in rate plans. The problem was identifying what was "discrimination". In many instances the discrimination was subjective.
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