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The group that fixes rates and regulates the railroads is called the ICC.

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Why didn't the Interstate Commerce Act immediately limit power of the railroads?

Because of a long legal process and resistance from the railroads, until 1897, when Supreme Court ruled that it could not set maximum railroad rates.


Why was the interstate commerce commission established-?

The interstate commerce commission was established to regulate railroads. It was meant to eliminate rate discrimination and make sure fair rates were being used.


Why did railroads try to stop farmers from organizing?

Railroads in the late 19th and early 20th centuries often sought to prevent farmers from organizing because they held significant economic power over agricultural communities. The main reasons include: **Control Over Shipping Costs**: Railroads were the primary means of transporting crops from farms to market. Farmers depended on railroads to ship their goods, but the railroads often charged high, discriminatory rates. These high rates, especially for shipping grain or livestock, squeezed farmers’ profits. If farmers organized, they might be able to exert collective bargaining power to demand lower rates, which would cut into the railroads’ profits. **Political Influence**: Railroads were some of the largest and most influential corporations in the U.S. during the Gilded Age and early Progressive Era. They had political influence and could sway local and national governments. Farmers' organizations, like the Grange and later the Populist movement, aimed to push for reforms in pricing, regulation, and land policies that could reduce the power of the railroads. This posed a direct challenge to the interests of railroads and their political allies. **Competition and Monopoly**: Many railroads operated as monopolies or oligopolies in certain regions, meaning that farmers often had few or no other options for transporting their goods. If farmers began to organize and demanded fairer pricing, railroads feared that such movements could encourage the development of competing transportation networks, which would break their monopoly and reduce their ability to control the flow of goods. **Potential for Government Regulation**: The success of farmer organizing could lead to government intervention, such as the regulation of railroads. The Interstate Commerce Act of 1887 and the Sherman Antitrust Act were early attempts to regulate railroad monopolies, and farmers were a driving force behind such legislation. Railroads sought to suppress any movement that might result in tighter regulation or government control over their rates and operations. Farmers’ efforts to organize were therefore seen as a threat to the economic power of railroads, both in terms of direct financial losses and the broader political and regulatory challenges they could inspire.


Why were farmers in favor of government regulations of railroads?

Farmers favored government regulations of railroads because they sought to curb the monopolistic practices and price discrimination that often disadvantaged them. Railroads frequently charged exorbitant rates for shipping their crops, which cut into their profits. By advocating for regulations, farmers aimed to ensure fair pricing and reliable access to transportation, thus enhancing their economic stability and competitiveness in the market. These regulations were seen as a means to level the playing field against powerful railroad companies.


Who did grangers blame for most of the problems plaguing farmers after 1870?

Grangers primarily blamed railroads and grain elevator operators for the problems plaguing farmers after 1870. They argued that these entities engaged in monopolistic practices, charging exorbitant rates for transportation and storage, which squeezed farmers' profits. Additionally, they pointed to the influence of banks and money lenders, claiming that high interest rates and unfair lending practices further exacerbated their financial struggles. This blame laid the groundwork for their push for economic reforms and regulatory measures.

Related Questions

Licenses fixes rates and regulates other aspects of commercial transportation?

The group that controls these things is known as the ICC.


What organization licenses fixes rates and regulates other aspects of commercial transportation?

In the United States, the Federal Motor Carrier Safety Administration (FMCSA) is the organization responsible for regulating and licensing fixed rates and other aspects of commercial transportation, particularly for freight carriers and bus services. Additionally, the Surface Transportation Board (STB) oversees economic regulation for railroads and certain aspects of intermodal transportation. These agencies ensure safety, compliance, and fair competition within the commercial transportation sector.


Which of these regulated the freight rates of railroads?

The Interstate Commerce Commission regulated the freight rates of railroads.


What has the author H T Newcomb written?

H. T. Newcomb has written: 'Proposed solution of the railway rate problem' -- subject(s): Railroads, Rates, Freight 'Railway economics' -- subject(s): Railroads 'The work of the Interstate Commerce Commission' -- subject(s): Railroads and state, United States. Interstate Commerce Commission, Railroads, United States, Rates, Freight 'Changes in the rates of charge for railway and other transportation services ..' 'Reasonable railway rates' -- subject(s): Railroads, Rates 'For the railroads' -- subject(s): Railroads, Rates, Freight 'The concentration of railway control' -- subject(s): Railroads


What has the author Mark Wymond written?

Mark Wymond has written: 'Government partnership in railroads' -- subject(s): Railroads and state 'Railroad valuation and rates' -- subject(s): Railroads, Rates, Freight, Valuation


Who regulates interest rates on all types of credit?

the fed


What did the Interstate Commerce Act required of the railroads?

to charge the same taxes


What has the author Joseph Horrocks written?

Joseph Horrocks has written: 'Railway rates' -- subject(s): Railroads, Rates, Freight


How have graduated licenses reduced DUI driving rates?

Graduated licenses have reduced DUI driving rates because this license allows for new drivers to receive a gradual amount of driving experience over time.


What has the author Norris L Gage written?

Norris L. Gage has written: 'The relations of Kansas railroads to the state of Kansas' -- subject(s): Accessible book, Railroads, Rates, Railroads and state


How did the grange movement improve the plight of farmers?

forcing railroads to lower their rates


What anomaly involving railroads necessitated regulation?

For major trunk lines, where there was competition, the railroads charged lower rates and even gave rebates. For spur lines, where there was a monopoly, the railroad charged higher rates for the same type