ICC: Interstate Commerce Commission

Why was the Interstate Commerce Commission created?

The Interstate Commerce Commission (ICC) was created to regulate interstate surface transportation. Initially focused on trains, its scope later widened to include trucks, buses, water carriers, household goods transporters, freight forwarders, transportation brokers, and pipelines that were not regulated by the Federal Energy Regulatory Commission.

The Commission resolved disputes over rates and charges among regulated carriers, shippers, receivers of freight, passengers, and other parties in the field of transportation economics. It made decisions on requests for mergers, consolidations, and control acquisitions. It established accounting standards, granted restitution, and oversaw the enforcement of laws governing railroad bankruptcy. It also worked to prevent unfair discrimination, harmful competition, and baiting.

Key Takeaways

• • Ultimately abolished in 1995, the Interstate Commerce Commission (ICC) was the first agency that regulated railroad transportation between states.
  • Initially focused on trains, the Commission’s scope later widened to include trucks, buses, water carriers, household goods transporters, freight forwarders, transportation brokers, and pipelines that were not regulated by the Federal Energy Regulatory Commission.

What happened to the Interstate Commerce Commission?

From 1887 until 1995, the Interstate Commerce Commission (ICC) governed the operations and services of certain carriers involved in interstate transportation. The ICC was the country’s first regulatory body in charge of common carriers. However, the agency was shut down at the end of 1995 because some of its responsibilities had been transferred to other organizations or, in certain circumstances, were no longer necessary due to deregulatory changes.

Why was the Interstate Commerce Commission important?

The ICC was important because it regulated railroads and trucking to ensure fair rates, eliminate rate discrimination and regulate other aspects of common carriers. This even included interstate bus lines and telephone companies. The Interstate Commerce Act demonstrated that if a national problem impacted commerce across state lines, Congress might apply the Commerce Clause to those matters more broadly. The national economy became significantly more interconnected after 1887, resulting in practically all commerce becoming interstate and international.  That change made the Commerce Clause a potent legislative instrument for resolving societal issues.

What replaced the Interstate Commerce Commission?

As a result of the Interstate Commerce Commission (ICC) being abolished in 1995, its remaining functions were given to a new agency. This agency is the National Surface Transportation Board (STB) established January 1, 1996. Railroad rates, railroad mergers or line sales, and a few other transportation-related issues are now governed and decided by the National Surface Transportation Board.