Progressive Movement Practice Exam 2025 – Comprehensive All-in-One Guide to Exam Success!

The significance of the Interstate Commerce Act of 1887 lies in its role as the first federal law aimed at regulating private industry, specifically the railroad industry. Prior to the act, the regulation of commerce was primarily a function of the states, which led to a patchwork of laws and practices that often resulted in unfair rates and discriminatory practices against smaller shippers. The Interstate Commerce Act sought to rectify this by establishing the Interstate Commerce Commission (ICC), which had the authority to oversee and regulate railroad rates and practices.

This was a groundbreaking development, as it marked a shift toward federal intervention in the economy, especially in areas critical to national commerce and trade. The act set a precedent for future regulatory legislation and laid the groundwork for the federal government's role in economic regulation, emphasizing fairness and transparency in interstate commerce. Through its enforcement mechanisms, it aimed to ensure that railroads operated in a manner that was just and reasonable for all parties involved, thereby protecting consumers and smaller businesses from monopolistic practices.