The Mann–Elkins Act
Elkins Act
The Elkins Act is a 1903 United States federal law that amended the Interstate Commerce Act of 1887. The 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 their employees, were all made liabl…
Progressive Era
The Progressive Era was a period of widespread social activism and political reform across the United States that spanned the 1890s to the 1920s. The main objectives of the Progressive movement were eliminating problems caused by industrialization, urbanization, immigration, and political corruption. The movement primarily targeted political machines and their bosses. By taking down these …
Stephen Benton Elkins
Stephen Benton Elkins was an American industrialist and political figure. He served as the Secretary of War between 1891 and 1893. He served in the United States Congress as a Delegate from the Territory of New Mexico and a Senator from West Virginia.
James Robert Mann
James Robert Mann was an American legislator and U.S. Representative from Illinois, 1897–1922. He was a member of the Republican party, and served as House Minority Leader from 1911 to 1919.
What was the effect of the Elkins Act?
The result of the Elkins Act was that railroads had a stronger mechanism to protect their collusive prices and corporate trusts were weakened in their ability to gain shipping discounts. Farmers and other railroad users, instead of benefiting from greater competition, were unaffected by the Act.
What was the effect of the Elkins Act on railroad prices?
Following the passage of the Elkins Act, real freight rates decreased only slightly. In 1905, leaders in the regulation movement testified before Congress to identify the reduction in prices that resulted from the Act. Yet, in the first months following the passage of the law, the most pronounced change in railroad pricing was the elimination of rebates. However, later analysis has found that decreases in carrier prices are better attributable to decreases in the costs of operation due to technology advances. The elimination of rebates led the railroads to seek other methods to compete for business, leading Governor Albert B. Cummins of Iowa to declare, in 1905, that the elimination of rebates simply forces railroads to seek alternative noncompetitive means to secure business. The Elkins Act, thus, was more effective in stabilizing prices and entrenching price collusion than demonstrably lowering prices.
What did the elimination of rebates do to the railroads?
Cummins of Iowa to declare, in 1905, that the elimination of rebates simply forces railroads to seek alternative noncompetitive means to secure business.
Why did the Elkins Act work?
A diverse group of stakeholders publicly supported the Elkins Act. Citizens who supported the law hoped that reducing price discrimination would lower freight prices uniformly, and railroad interests lobbied for the passage of the Act as a means of enforcing collusive pricing.
What is the Elkins Act?
Unsourced material may be challenged and removed. The Elkins Act is a 1903 United States federal law that amended the Interstate Commerce Act of 1887. The Act authorized the Interstate Commerce Commission (ICC) to impose heavy fines on railroads that offered rebates, and upon the shippers that accepted these rebates.
What was the purpose of the Hepburn Act?
The Hepburn Act set maximum freight rates for railroads, representing the greater interests of Americans.
What was the Hepburn Act?
The Hepburn Act set maximum freight rates for railroads, representing the greater interests of Americans. The regulations of the Hepburn Act strained railroads, which saw new competition from the rise of trucks and automobiles.
Why did the muckrakers help the Progressive Era?
The muckrakers played a pivotal role in initiating the Progressive Era, because they spurred everyday Americans to action. Unlike earlier sensationalist journalists, the muckrakers told their stories with the explicit goal of galvanizing their readers and encouraging them to take steps to address the issues. With photographs and descriptions of real-life scenarios of which many Americans were unaware, the muckrakers brought the tribulations of child factory workers, the urban poor, and others into the living rooms of the middle class.
What did Du Bois advocate for?
B. Du Bois sought to push for civil rights directly, through legal and political channels, drawing on the education and skills of the "talented tenth" to advance the Niagara Movement's agenda. The movement's Declaration of Principles called for immediate political, economic, and social equality for African Americans, including universal suffrage, education, and an end to the convict-lease system. This represented, in many ways, a rejection of Booker T. Washington's advocacy of accommodation and self-improvement.
What was the difference between Roosevelt's new nationalism and Wilson's new freedom?
The major difference between Roosevelt's New Nationalism and Wilson's New Freedom concerned the candidates' beliefs about the necessary size of the federal government. Wilson believed that a small federal government could keep bad businesses in check while allowing the country to grow. Roosevelt, in contrast, believed that the country required a large and involved federal government to safeguard the interests of the American people.
What was the difference between Roosevelt's new nationalism and Wilson's new freedom?
The major difference between Roosevelt’s New Nationalism and Wilson’s New Freedom concerned the candidates’ beliefs about the necessary size of the federal government. Wilson believed that a small federal government could keep bad businesses in check while allowing the country to grow. Roosevelt, in contrast, believed that the country required a large and involved federal government to safeguard the interests of the American people.
What was Wilson's goal in the first year of his presidency?
Still, he took a number of steps in the first year of his presidency to shore up the economy and push back against destructive trusts. With those goals accomplished, he largely left the Progressive agenda alone. As the 1916 election season approached, however, Wilson realized that his hands-off policy was not endearing him to voters, and he ended his first term in a flurry of Progressive legislation that reminded the voting public of all he could do for them.
Overview
The Elkins Act is a 1903 United States federal law that amended the Interstate Commerce Act of 1887. The Act authorized the Interstate Commerce Commission (ICC) 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 their employees, were all made liable for discriminatory practices.
Background
Congress passed the Elkins Act as an amendment to the Interstate Commerce Act. Without restrictive legislation, large firms could demand rebates or prices below the collusive price from railroad companies as condition for their business. As a result, it was common practice for railroads to offer competitive lower rates for transport between the large cities with high density of firms than the monopolistic rates between less industrial cities, irrespective of length of travel…
Purpose
The ICC had been unable to protect competition and fair pricing. Section 2 of the Interstate Commerce Act prohibits a carrier from offering preferential prices or rebates; however, enforcement of this section was ineffective. Powerful trusts would pay the standard shipping price, but demand a rebate from the carrier. Court cases brought before the commission generally did not result in punitive action, as the ICC was composed primarily of railroad interests. Carrier…
Impact
Following the passage of the Elkins Act, real freight rates decreased only slightly. In 1905, leaders in the regulation movement testified before Congress to identify the reduction in prices that resulted from the Act. Yet, in the first months following the passage of the law, the most pronounced change in railroad pricing was the elimination of rebates. However, later analysis has found that decreases in carrier prices are better attributable to decreases in the costs of operati…
Contemporary criticism
In reaction to the Elkins Act, it was argued that the law 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. Congress was criticized for enacting only monetary fines for violations of the law and avoiding imposition of criminal penalties.
Subsequent legislation
Citing the shortcomings of the Elkins Act, Progressives began to call for greater regulation of railroad interests, and, in 1906, President Roosevelt signed the Hepburn Act to replace the Elkins Act. The Hepburn Act set maximum freight rates for railroads, representing the greater interests of Americans. The regulations of the Hepburn Act strained railroads, which saw new competition from the rise of trucks and automobiles. The Panic of 1907 was, in part, a result of the turmoil of …
See also
• History of rail transport in the United States
• Mann-Elkins Act (1910)