With this 1903 act Congress sought to strengthen the power of the Interstate Commerce Commission to set maximum railroad freight rates. The act required railroads to hold to their published rates and forbade rate cutting and rebates. Railroads favored the act, because it prevented loss of revenue. The Elkins Act also supplemented the Interstate Commerce Act of 1887 by providing more specific methods of procedure and penalties for nonobservance of its provisions. The law provided for prosecution and punishment of railroad corporations, as well as their agents and officers, for giving or receiving rebates and made it a misdemeanor to deviate from published rates.

Bibliography

Eisner, MarcAllen. Regulatory Politics in Transition. 2d ed. Baltimore: Johns Hopkins University Press, 2000.

Kolko, Gabriel. Railroads and Regulation, 1877–1916. Princeton, N.J.: Princeton University Press, 1965.

Sanders, Elizabeth. Roots of Reform: Farmers, Workers, and the American State, 1877–1917. Chicago: University of Chicago Press, 1999.

—John B. Clark/C. P.

Elkins Act

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The Elkins Act is a 1903 United States federal law that amended the Interstate Commerce Act of 1887.[1] 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.[2]

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.[citation needed]

Criticism

It has been argued that the Elkins Act was drafted by Congress on behalf of the railroads, and that while some railroads curtailed rebates for some customers, for others the practice continued unabated.[3] Congress was criticized for enacting only monetary fines for violations of the law and avoiding imposition of criminal penalties.[4]

See also

References

  1. ^ Elkins Act, 57th Congress, Sess. 2, ch. 708, 32 Stat. 847; 1903-02-19.
  2. ^ Sharfman, I. Leo (1915). "The Elkins Act". Railway Regulation. Chicago: LaSalle Extension University. pp. 201–202. http://books.google.com/books?id=g-pCAAAAIAAJ&dq=elkins%20act&pg=PA201#v=onepage&q=roosevelt&f=false. 
  3. ^ Parsons, Frank (1906). "The Elkins Act and its Effects". The Heart of the Railroad Problem. Boston: Little, Brown. pp. 110–119. http://books.google.com/books?id=p78pAAAAYAAJ&dq=elkins%20act&pg=PA110#v=onepage&q=elkins%20act&f=false. 
  4. ^ Taft, William H.. "The Legislative Policies of the Present Administration". Present Day Problems: A Collection of Addresses Delivered on Various Occasions. p. 162. http://books.google.com/books?id=eG6ahBv9-iEC&dq=taft%20%22present%20day%20problems%22&pg=PA162#v=onepage&q=elkins%20act&f=false.  Speech given at Columbus, Ohio, August 19, 1907.



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Stephen Benton Elkins (American statesman)
rebate (in economics)
James Robert Mann (American jurist & statesman)
Commerce, Court of (American history)
Hepburn Act (American history)