Hepburn Act
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| Long title | An Act to amend an act entitled "An act to regulate commerce," approved February fourth, eighteen hundred and eighty-seven, and all Acts amendatory thereof, and to enlarge the powers of the Interstate Commerce Commission |
|---|---|
| Enacted by | the59th United States Congress |
| Effective | June 29, 1906 |
| Citations | |
| Public law | Pub. L.59–337 |
| Statutes at Large | 34Stat.584 |
| Codification | |
| Acts amended | Interstate Commerce Act of 1887 |
| Legislative history | |
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TheHepburn Actis a 1906United States federal lawthat expanded the jurisdiction of theInterstate Commerce Commission(ICC) and gave it the power to set maximum railroad rates. This led to the discontinuation of free passes to loyal shippers.[1]In addition, the ICC could view the railroads'financial records,a task simplified by standardizedbookkeepingsystems. For any railroad that resisted, the ICC's conditions would remain in effect until the outcome of legislation said otherwise. By the Hepburn Act, the ICC's authority was extended to cover bridges, terminals,ferries,railroadsleeping cars,express companies andoil pipelines.
Overview
[edit]The Hepburn Act was named for its sponsor, ten-term Iowa Republican congressmanWilliam Peters Hepburn.The final version was close to what PresidentTheodore Roosevelthad asked for, and it easily passedCongress,with only three dissenting votes.[2]The Act, along with theElkins Actof 1903, was a component of one of Roosevelt's major policy goals: railroadregulation.
The most important provision of the law gave the ICCprice controlpower to replace existing rates with "just-and-reasonable" maximum rates, and authorized the Commission to define what was just and reasonable.[3][4]The Act made ICC orders binding; that is, the railroads had to either obey or contest the ICC orders in federal court. To speed the rate-setting process, the Act specified that appeals from rulings of thedistrict courtswould go directly to theU.S. Supreme Court.
Anti-rebate provisions were toughened, free passes were outlawed, and the penalties for violation were increased. The ICC staff grew from 104 in 1890 to 178 in 1905, 330 in 1907, and 527 in 1909. Finally, the ICC gained the power to prescribe a uniform system ofaccounting,require standardized reports, and inspect railroad accounts.[5]
The limitation on railroad rates depreciated the value of railroad securities, a factor in causing thePanic of 1907.[6]
Significance
[edit]Scholars consider the Hepburn Act the most important piece of legislation affecting railroads in the first half of the 20th century. Economists and historians debate whether it crippled the railroads, giving so much advantage to the shippers that a giant unregulatedtrucking industry—undreamed of in 1906—eventually took away their business.[7]
Follow-up legislation
[edit]Congress passed theMann–Elkins Actin 1910 during the administration of PresidentWilliam Howard Taft,to address limitations in implementation of the Hepburn Act. The Mann–Elkins Act authorized the ICC to initiate reviews of railroad rate increases, rather than simply responding to complaints from shippers. The 1910 law empowered the ICC to set "just and reasonable" maximum rates and placed the burden of proof upon the railroad for demonstrating reasonableness.[8]
See also
[edit]- History of rail transport in the United States
- Interstate Commerce Act(1887)
- The Hepburn Committee(1879)
- Louisville & Nashville Railroad Co. v. Mottley(1908)
References
[edit]- ^United States. Hepburn Act,59th Congress,Sess. 1, ch. 3591, 34Stat.584,enacted June 29, 1906.
- ^Morris, Edmund (2002).Theodore Rex.Modern Library. p.446.ISBN978-0-8129-6600-8.
- ^Debate Handbook on Wage and Price Controls, by J. Weston Walch, James P. McGough, p. 23 (1970)
- ^The American Presidents: The Office and the Men, by Frank Northen Magill, p. 469 (1986)
- ^Stone, Richard D. (1991).The Interstate Commerce Commission and the Railroad Industry: A History of Regulatory Policy.Praeger. p. 12.ISBN978-0-275-93941-0.
- ^ Edwards, Adolph (1907).The Roosevelt Panic of 1907.New York: Anitrock. p. 66.
- ^Martin, Albro (1971).Enterprise Denied: Origins of the Decline of American Railroads, 1897-1917.New York: Columbia University Press.ISBN978-0-231-03508-8.
- ^United States. Mann-Elkins Act,61st Congress,2nd session, ch. 309, 36Stat.539,enacted June 18, 1910.
