USA HISTORY

Detailed explanation-1: -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 Act required that railroad rates be “reasonable and just, ” but did not empower the government to fix specific rates.

Detailed explanation-2: -In response, Congress passed the Interstate Commerce Act. This federal law prohibited unfair practices by railroads, such as charging higher rates for shorter routes. A special regulatory commission, the Interstate Commerce Commission, was established to enforce the act.

Detailed explanation-3: -The Interstate Commerce Act (ICA) of 1887 (24 Stat. 379) targeted unfair practices in the railroad industry by attempting to eliminate discrimination against small markets, outlawing pools and rebates, and establishing a “reasonable and just” price standard.

Detailed explanation-4: -The most successful provisions of the law were the requirement that railroads submit annual reports to the ICC and the ban on special rates the railroads would arrange among themselves, although determining which rates were discriminatory was technically and politically difficult.