In late nineteenth century United States history, how did the Interstate Commerce Act of 1887 help farmers who depended on railroads to ship their crops?

Difficulty: Medium

Correct Answer: It prevented railroads from charging farmers higher rates than other customers for the same services.

Explanation:


Introduction / Context:
In the late nineteenth century, American farmers often depended almost completely on railroads to move their crops to markets. Because many regions were served by only one major railroad, that company could charge very high or unfair prices. This led to serious complaints and political pressure, especially from farmers organisations and populist movements. The Interstate Commerce Act of 1887 was passed to regulate such abuses. This question asks specifically how the Act helped farmers by changing the way railroads set their rates.

Given Data / Assumptions:

  • The law in question is the Interstate Commerce Act of 1887.
  • The focus is on its effect on farmers who used railroads.
  • The options offer a mix of realistic regulatory changes and unrealistic or incorrect measures.
  • The learner is expected to distinguish between direct cash gifts and changes in pricing rules.

Concept / Approach:
One of the key goals of the Interstate Commerce Act was to prevent unfair discrimination in freight rates. Before the Act, railroads often gave special low rates to large industrial shippers and charged higher rates to small farmers for similar distances and services. The Act required that rates be reasonable and just and gave the Interstate Commerce Commission authority to investigate. In practice, this helped farmers by limiting the ability of railroads to charge them more than other customers for the same service. It did not give farmers free shares in railroads, nor did it automatically transfer government money to them. Therefore, the correct answer must mention the prevention of discriminatory high rates against farmers.

Step-by-Step Solution:
1. Recall that farmers complained about paying higher freight rates than large companies for similar shipments. 2. Remember that the Interstate Commerce Act responded by regulating rates and banning unfair discrimination among customers. 3. Look at the options and identify the one that says the Act prevented railroads from charging farmers more than other customers for the same services. 4. Recognise that options about giving farmers company shares or cash subsidies are not part of the historical record. 5. Notice that forcing railroads to build lines everywhere or raising rates on farmers would not logically help them. 6. Select the option that refers to stopping higher, discriminatory rates for farmers.
Verification / Alternative check:
To verify, learners may think of how economic history textbooks summarise the law: the Interstate Commerce Act aimed to ensure reasonable and just rates and to end practices such as charging more for shorter hauls or giving secret rebates to big shippers. Farmers benefited because railroads could no longer legally single them out for especially high prices compared with other customers. No major source describes the Act as giving company stock or direct cash payments to farmers, which confirms that the option about preventing higher charges is the historically accurate one.

Why Other Options Are Wrong:
Taking government payments from railroads and giving them to farmers is not mentioned in discussions of the Interstate Commerce Act and does not describe its main purpose.
Giving farmers shares in railroad companies would change ownership, not regulate rates, and is not part of the Act provisions.
Forcing railroads to build lines everywhere regardless of cost would be extremely expensive and impractical and is not recorded as a real requirement of the law.
Requiring farmers to pay higher rates to modernise railroads would harm, not help, farmers and contradicts the idea of protecting them from unfair pricing.

Common Pitfalls:
Many students know that the Act regulated railroads but are unsure about the exact mechanism. Some may confuse it with later programs that gave subsidies or financial support to various groups. Others might think that any law claimed to help farmers must involve free money or land. To avoid these misunderstandings, it is helpful to remember that the Interstate Commerce Act focused on rate fairness and the end of discrimination in pricing. Specifically, it protected farmers from being charged more than other customers for similar services, and this is the point that the correct answer highlights.

Final Answer:
The correct answer is It prevented railroads from charging farmers higher rates than other customers for the same services.

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