The Railroad Builders: A Chronicle of the Welding of the StatesMoody, John
History
The Railroad Builders: A Chronicle of the Welding of the States
Moody, John
Railroads -- United States -- History
In 1906, when President Roosevelt became intensely active in the
railroad problem, conditions were fairly demoralized. Attempts to
enforce the anti-pooling clause had led railroads to purchase competing
lines, and when the United States Supreme Court pronounced this illegal,
the situation became chaotic. The evils of overcapitalization also
became an issue of the times. The Interstate Commerce Commission had
become almost moribund, and there was a general sentiment that the
trouble arose from the fact that the commission had no power to fix
rates and that the solution of the railroad problem would come only when
such power was vested in it. * The Interstate Commerce Act which became
a law on June 29, 1906, was the outcome of one of the greatest
battles of President Roosevelt's political life. The act increased the
membership of the commission from five to seven members, placed under
its jurisdiction not only railroads but pipe lines, express companies,
and sleeping-car companies, added to the other familiar restrictions a
"commodities clause," which prohibited any railroad from transporting
a product which it had produced or mined, "except such articles or
commodities as may be necessary and intended for its use in the conduct
of its business as a common carrier"--this clause was intended to end
the railroad monopoly of the coal mines--and made the failure to observe
published tariffs a crime punishable with imprisonment. The amended law
did not give the commission the right to fix rates in the first instance
but did empower it, on complaint, to investigate charges and on
the basis of this investigation to determine just maximum rates,
regulations, and practices, though carriers were given the right of
appeal to the courts.
* The Elkins Act of 1903 had, it is true, increased the
effectiveness of the commission in dealing with discriminations, but it
had not solved the problem of securing reasonable rates.
Public-domain text, read in full here on John Shaqi.
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