Interstate Commerce Act Quotes

I regret to say that we of the FBI are powerless to act in cases of oral-genital intimacy, unless it has in some way obstructed interstate commerce. —J. Edgar Hoover

The act finally deregulated the rail industry, repealing the legislation that had created the Interstate Commerce Commission nearly a century previously.

The second point is that, in the key industries we have studied, the state failed as an economic developer. It failed first as a subsidizer of industrial growth. Vanderbilt showed this in his triumph over the Edward Collins' fleet and the Pacific Mail Steamship Company in the 1850s. James J. Hill showed this forty years later when his privately built Great Northern outdistanced the subsidized Northern Pacific and Union Pacific. The state next failed in the role of an entrepreneur when it tried to build and operate an armor plant in competition with Charles Schwab and Bethlehem Steel. The state also seems to have failed as an active regulator of trade. The evidence in this study is far from conclusive; but we can see problems with the Interstate Commerce Commission and the Sherman Anti-trust Act, both of which were used against the efficient Hill and Rockefeller.

To the extent that the Interstate Commerce Act undercut crony capitalism in favor of free market capitalism, it was salutary. But the main effect was to institutionalize crony capitalism even further, decreasing service, efficiency, and innovation.

The Interstate Commerce Act of 1887, regulating the railroads, was one of the first federal regulatory acts in American history. The Act began with a bill introduced in the House by Democratic Representative James H. Hopkins of Pittsburgh, in 1876 at the behest of a group of independent oil producers of western Pennsylvania.

To ship their crops to distant markets they had to rely upon the railroads, many of which were scandalously managed for the profit of Eastern owners and manipulators and set their freight rates arbitrarily high. Hence there arose in the West a widespread and confused agitation against bankers, the gold basis of the currency, industrial monopolists, and above all the railroads: an agitation which in the eighteen-eighties had been chiefly responsible for the passage of such regulatory laws as the Interstate Commerce Act.