Thursday, August 27, 2015

What were three negative effects of the Interstate Commerce Act of 1887?

It is a federal law targeting at unfair practices of the monopolistic railroad industry by eliminating the usage of discriminatory against small markets, and constructing a reasonable price standard. However, there are still negative effects regarding this policy.


Firstly, this policy is very contradictory as some provisions were used to stimulate competition amongst companies, while on the other hand, some were used to penalized and crackdown on competition.


Secondly, this policy only apply to railroads.


Lastly, the power that the five member board had was very limited to say the least, to enforce the goals of ICA of 1887, so it was plain useless.

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