Which act established the Interstate Commerce Commission to regulate railroad prices and interstate carriers?

Which act established the Interstate Commerce Commission to regulate railroad prices and interstate carriers?

• A. FDIC (Federal Deposit Insurance Corporation)
• B. Securities and Exchange Commission
• C. Organic Act of 1916
• D. Interstate Commerce Act

Answer: (D)

The question is about how the federal government began regulating interstate commerce, specifically by creating a regulator to oversee railroad rates and practices. The Interstate Commerce Act of 1887 established the Interstate Commerce Commission, giving it the power to monitor and set reasonable, just rates, prohibit rebates, require published schedules, and prevent discriminatory treatment by railroads across state lines. This act marked the first major move of the federal government into regulating private industry in the public interest and set up a precedent for how interstate commerce would be overseen. The other options correspond to different purposes: the FDIC insures bank deposits; the Securities and Exchange Commission regulates the securities markets; the Organic Act of 1916 created the National Park Service. None of these established a body to regulate railroad prices and interstate carriers, so they’re not the correct choice.

The question is about how the federal government began regulating interstate commerce, specifically by creating a regulator to oversee railroad rates and practices. The Interstate Commerce Act of 1887 established the Interstate Commerce Commission, giving it the power to monitor and set reasonable, just rates, prohibit rebates, require published schedules, and prevent discriminatory treatment by railroads across state lines. This act marked the first major move of the federal government into regulating private industry in the public interest and set up a precedent for how interstate commerce would be overseen.

The other options correspond to different purposes: the FDIC insures bank deposits; the Securities and Exchange Commission regulates the securities markets; the Organic Act of 1916 created the National Park Service. None of these established a body to regulate railroad prices and interstate carriers, so they’re not the correct choice.