Elkins Act
Encyclopedia
The Elkins Act is a 1903 United States federal law that amended the Interstate Commerce Act of 1887
. The Elkins Act authorized the Interstate Commerce Commission
to impose heavy fines on railroads
that offered rebates, and upon the shippers that accepted these rebates. The railroad companies were not permitted to offer rebates. Railroad corporations, their officers and employees were all made liable for discriminatory practices.
Prior to the Elkins Act, the livestock
and petroleum
industries paid standard rail shipping rates, but then would demand that the railroad company give them rebates. The railroad companies resented being extorted by the railroad trusts and therefore welcomed passage of the Elkins Act. The law was sponsored by President Theodore Roosevelt
as a part of his "Square Deal
" domestic program, and greatly boosted his popularity.
on behalf of the railroads, and that while some railroads curtailed rebates for some customers, for others the practice continued unabated. Congress was criticized for enacting only monetary fines for violations of the law and avoiding imposition of criminal
penalties.
Interstate Commerce Act of 1887
The Interstate Commerce Act of 1887 is a United States federal law that was designed to regulate the railroad industry, particularly its monopolistic practices. The Act required that railroad rates be "reasonable and just," but did not empower the government to fix specific rates...
. The Elkins Act authorized the Interstate Commerce Commission
Interstate Commerce Commission
The Interstate Commerce Commission was a regulatory body in the United States created by the Interstate Commerce Act of 1887. The agency's original purpose was to regulate railroads to ensure fair rates, to eliminate rate discrimination, and to regulate other aspects of common carriers, including...
to impose heavy fines on railroads
Rail transport
Rail transport is a means of conveyance of passengers and goods by way of wheeled vehicles running on rail tracks. In contrast to road transport, where vehicles merely run on a prepared surface, rail vehicles are also directionally guided by the tracks they run on...
that offered rebates, and upon the shippers that accepted these rebates. The railroad companies were not permitted to offer rebates. Railroad corporations, their officers and employees were all made liable for discriminatory practices.
Prior to the Elkins Act, the livestock
Livestock
Livestock refers to one or more domesticated animals raised in an agricultural setting to produce commodities such as food, fiber and labor. The term "livestock" as used in this article does not include poultry or farmed fish; however the inclusion of these, especially poultry, within the meaning...
and petroleum
Petroleum industry
The petroleum industry includes the global processes of exploration, extraction, refining, transporting , and marketing petroleum products. The largest volume products of the industry are fuel oil and gasoline...
industries paid standard rail shipping rates, but then would demand that the railroad company give them rebates. The railroad companies resented being extorted by the railroad trusts and therefore welcomed passage of the Elkins Act. The law was sponsored by President Theodore Roosevelt
Theodore Roosevelt
Theodore "Teddy" Roosevelt was the 26th President of the United States . He is noted for his exuberant personality, range of interests and achievements, and his leadership of the Progressive Movement, as well as his "cowboy" persona and robust masculinity...
as a part of his "Square Deal
Square Deal
The Square Deal was President Theodore Roosevelt's domestic program formed upon three basic ideas: conservation of natural resources, control of corporations, and consumer protection...
" domestic program, and greatly boosted his popularity.
Criticism
It has been argued that the Elkins Act was drafted by CongressUnited States Congress
The United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....
on behalf of the railroads, and that while some railroads curtailed rebates for some customers, for others the practice continued unabated. Congress was criticized for enacting only monetary fines for violations of the law and avoiding imposition of criminal
Criminal law
Criminal law, is the body of law that relates to crime. It might be defined as the body of rules that defines conduct that is not allowed because it is held to threaten, harm or endanger the safety and welfare of people, and that sets out the punishment to be imposed on people who do not obey...
penalties.
See also
- History of rail transport in the United StatesHistory of rail transport in the United StatesRailroads have played a large role in the development of the United States of America, from the industrial revolution in the North-east to the colonization of the West. The American railway mania began with the Baltimore and Ohio Railroad in 1828 and flourished until the Panic of 1873 bankrupted...
- Hepburn ActHepburn ActThe Hepburn Act is a 1906 United States federal law that gave the Interstate Commerce Commission the power to set maximum railroad rates. This led to the discontinuation of free passes to loyal shippers. In addition, the ICC could view the railroads' financial records, a task simplified by...
(1906) - Mann-Elkins ActMann-Elkins ActThe Mann–Elkins Act was a 1910 United States federal law that is among the Progressive era reforms. The Act extended the authority of the Interstate Commerce Commission to regulate the telecommunications industry, and designated telephone, telegraph and wireless companies as common...
(1910)