Interstate Commerce Act of 1887

The Interstate Commerce Act of 1887 was the first federal statute to regulate a private industry, requiring railroads to charge reasonable, published rates and creating the Interstate Commerce Commission to enforce them.

1887 US federal Enforced by Surface Transportation Board 24 Stat. 379

What it requires

The Act required railroads in interstate commerce to charge reasonable and just rates, publish their tariffs, and stop rate discrimination, rebates, pooling and higher charges for short hauls than long hauls on the same line. It created the five-member Interstate Commerce Commission to hear complaints. Later laws extended ICC control to trucking in 1935. Its rate controls were dismantled by deregulation in the 1970s through 1990s, and the ICC was abolished on January 1, 1996, with remaining functions moved to the Surface Transportation Board.

Why it matters

The Act is the root of the published tariff and common carrier concepts that still shape freight contracts. Carrier rules tariffs, accessorial schedules and the Carmack liability framework all descend from the ICC system it created. For example, when an LTL carrier bills a reweigh or liftgate fee under its rules tariff rather than the shipper's contract, it relies on a tariff structure that dates to 1887. Knowing that lineage helps shippers and 3PLs see why negotiated contracts must expressly override carrier tariffs to control cost and liability.

Related laws

Sources

Not legal advice.