In United States economic history, the Interstate Commerce Act of 1887 required what important change in the way railroads set their freight rates?

Difficulty: Medium

Correct Answer: Railroads were required to publish their rates and keep them reasonable and just, without unfair discrimination.

Explanation:


Introduction / Context:
The Interstate Commerce Act of 1887 is a key law in United States economic and political history. It was passed at a time when railroads had huge power over long distance trade and could easily exploit farmers and small businesses with unfair pricing and secret deals. This question asks what the Act required with respect to railroad freight rates. Understanding this helps learners see how early government regulation tried to create fairer conditions in a rapidly industrialising economy.

Given Data / Assumptions:

  • The law mentioned is the Interstate Commerce Act of 1887.
  • The focus is on what the Act required from railroads regarding their rates.
  • The options include both realistic and unrealistic statements about railroad obligations.
  • The learner is assumed to know that the Act was about fairness and regulation, not about giving more special privileges.

Concept / Approach:
Before 1887, railroads could charge different customers very different prices for the same service, often giving secret rebates to big shippers and forcing farmers to pay very high rates. The Interstate Commerce Act tried to stop this by requiring that railroad rates be reasonable and just, by banning unfair discrimination, and by insisting that railroads publish their rates openly. It also created the Interstate Commerce Commission to oversee this process. Therefore, the correct answer must mention reasonable, published rates and the ending of unfair discrimination, not free travel, total freedom to set any rate, or impossible restrictions on carrying goods.

Step-by-Step Solution:
1. Identify the key law: Interstate Commerce Act of 1887, dealing with regulation of railroads that operated across state lines. 2. Recall that farmers and small shippers complained about unfair high rates and secret deals given to large industrial customers. 3. Remember that the Act required railroads to publish their rates and to make sure those rates were reasonable and just, without discrimination between similar customers. 4. Review the options and look for the statement that mentions published, reasonable, and non discriminatory rates. 5. Eliminate options that talk about free transport for officials, total freedom to set any rate, or bans on carrying farm products, because these do not match the historical purpose of the law. 6. Select the option that correctly states that railroads had to publish their rates and keep them reasonable and just, without unfair discrimination.
Verification / Alternative check:
For verification, learners can connect this question to another related idea: the same Act and the work of the Interstate Commerce Commission helped farmers by preventing railroads from charging them more than other customers for the same service. This matches the idea of banning unfair discrimination. Also, economic history summaries often highlight the phrases reasonable and just rates and published rate schedules when explaining the law. Since no serious account mentions free rides for officials or forbidding farm transport, the option about published, reasonable, and non discriminatory rates clearly matches the standard textbook description of the Interstate Commerce Act of 1887.

Why Other Options Are Wrong:
Providing free transport for government officials was not the main requirement of the Act and is not a key feature in historical summaries.
Allowing railroads to charge any rate they wanted, as long as trains crossed state borders, would be the opposite of regulation and does not describe this law.
Forbidding railroads to carry farm products is unrealistic and would have harmed farmers rather than helping them, so it does not fit the purpose of the Act.
Requiring railroads to give foreign companies lower rates than American companies is not a feature of the law and would contradict its fairness goal.

Common Pitfalls:
Students sometimes confuse different kinds of economic reforms and may think that any law involving railroads must be about nationalising them or giving special benefits to certain groups. Others focus only on the year and forget what the Act actually did. To avoid such mistakes, it is helpful to remember one clear sentence: the Interstate Commerce Act of 1887 required railroads to publish reasonable and just rates and to stop unfair discrimination. Keeping this simple summary in mind ensures that the correct option is chosen quickly in exam questions.

Final Answer:
The correct answer is Railroads were required to publish their rates and keep them reasonable and just, without unfair discrimination.

More Questions from World History

Discussion & Comments

No comments yet. Be the first to comment!
Join Discussion