1887
139 years ago
RegulatoryUnited States
Interstate Commerce Act Enacted
Washington, D.C.
January 15, 1887
Summary
The U.S. Interstate Commerce Act established the first federal regulation of railroads, aiming to curb monopolistic practices and ensure fair pricing for shippers and passengers.
Full Story
In the late 19th century, America's booming railroad industry faced criticism for exploitative rates and monopolies controlled by tycoons like Jay Gould and Cornelius Vanderbilt. The Interstate Commerce Act, signed on January 15, 1887, by President Grover Cleveland, created the Interstate Commerce Commission (ICC) to oversee rail operations. This regulatory milestone involved lawmakers like Senator John Sherman, who drew from earlier anti-trust efforts, addressing grievances from farmers and businesses affected by discriminatory pricing. The act's significance was profound, as it marked the government's entry into economic regulation, promoting competition and safety standards that reduced accidents and improved service. Engineering challenges, such as standardizing gauges and schedules, were indirectly addressed, fostering a more interconnected national network. For railroad buffs, this era's ornate Pullman cars and the rise of transcontinental lines add intrigue, while the act's legacy influenced modern transportation laws, including those for airlines and trucking, ensuring railroads evolved into safer, more equitable systems that supported U.S. industrialization.
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Quick Facts
- Date
- January 15, 1887
- Event Type
- Regulatory
- Country
- United States
- Years Ago
- 139
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