Mann–Elkins Act facts for kids

The Mann–Elkins Act, also known as the Railway Rate Act of 1910, was an important U.S. federal law. It made the Interstate Commerce Commission (ICC) much stronger in controlling railroad prices. This law also gave the ICC power to regulate telephone, telegraph, and wireless companies. Plus, it created a special court to handle railroad disagreements.

Why the Mann-Elkins Act Was Needed

Before this law, railroads in the United States had a lot of power. They could set prices for carrying goods and passengers. Sometimes, these prices were unfair. President William Howard Taft was worried about these unfair practices. He wanted to make sure businesses competed fairly.

Earlier laws, like the Interstate Commerce Act of 1887 and the Hepburn Act (1906), tried to fix these problems. But they didn't quite work. President Taft believed the ICC needed more power. He wanted the ICC to be able to stop railroad price increases before they happened. Before, the ICC could only react to complaints after prices went up.

What the Mann-Elkins Act Did

The Mann-Elkins Act was a big step during the Progressive Era. This was a time when many laws were passed to improve society. Congressmen Stephen Benton Elkins and James Robert Mann were the main people who pushed for this law. It was created because western railroads suddenly raised their prices in 1910.

Controlling Railroad Prices

The 1910 act changed earlier laws. It gave the ICC the power to look into any railroad price increases. If the ICC thought a price was unfair, it could stop it. The railroads then had to prove that their new prices were reasonable.

This law was the first time the U.S. government could set maximum prices for a whole industry during peacetime. It also made the "long-and-short haul" rule stronger. This rule meant railroads couldn't charge more for a short trip than for a longer trip on the same route. The only exception was if the ICC specifically allowed it.

The Act also stopped railroads from giving free or very cheap rides to their employees or their families. Everyone had to pay fair prices.

Regulating New Industries

A big part of the Mann-Elkins Act was giving the ICC power over the telecommunications industry. This meant that telephone, telegraph, and wireless companies were now seen as "common carriers." This term means they had to serve everyone fairly, just like railroads.

Creating a Special Court

The act also created a special court called the United States Commerce Court. This court was made to quickly handle disagreements about railroads. If someone disagreed with a decision from this court, they could go straight to the Supreme Court of the United States. This stopped railroad companies from making court cases last a very long time. However, this special court only lasted a few years and was closed by Congress in 1913.

Impact of the Mann-Elkins Act

After the Mann-Elkins Act, railroads found it harder to make enough money. Even though the ICC allowed some price increases, it wasn't always enough to cover their rising costs. Many railroads faced serious financial trouble.

When the United States was getting ready for World War I, the government saw problems with the country's railroads. There weren't enough terminals, tracks, or rolling stock (train cars). Because of this, President Woodrow Wilson decided to take control of the railroads in December 1917. The United States Railroad Administration was set up to manage them during the war. This government control ended in 1920.

The Mann-Elkins Act was also important because it helped lead to the Communications Act of 1934. The 1934 law combined parts of the Mann-Elkins Act and other laws. It created a single authority for all telecommunications, which was the new Federal Communications Commission (FCC).