The Interstate Commerce Commission (ICC) was a regulatory agency in the United States created in 1887. Its primary purpose was to regulate railroads, particularly their monopolistic practices and unfair pricing. The Commission was established to ensure fair rates, eliminate rate discrimination, and regulate other aspects of common carriers engaging in trade across state lines. For example, it addressed situations where railroads charged farmers and small businesses exorbitant rates for shipping goods, effectively stifling economic growth and opportunity.
The establishment of the ICC marked a significant shift in the relationship between the government and the economy. It represented the first large-scale attempt by the federal government to regulate a specific industry and protect the public interest. This intervention was crucial in the late 19th century, as the unchecked power of railroad monopolies led to economic exploitation and hindered the development of a fair and competitive market. The ICCs creation served as a precedent for future regulatory agencies and demonstrated the government’s willingness to address issues arising from rapid industrialization.
