Hepburn Act
Plociennik,Ines
Period 3
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The Hepburn Act of 1906 was a bill that secured the
powers of the Interstate Commerce Commission
(ICC) and strengthened federal regulation of
railroads.
Named for Rep. William Hepburn of Iowa, chairman
of the House Commerce Commission.
The Act passed after a series of unpopular rate
increases by railroad corporations.
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On January 24, 1906 William P. Hepburn introduced
the Hepburn bill to the U.S. House of
Representatives.
The original un-amended bill passed the House on
February 8, 1906 with only three dissenting votes
The Act made ICC orders irrevocable and
inescapable; the railroads had to either obey or fight
the ICC orders in federal court.
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In an effort to attract much-needed investment capital to
improve efficiency and safety, the railroads raised the
rates they charged for their services.
Passengers and shippers reacted with anger at the
announcement of the rate hikes, as demand for railroads
were quickly heightening.
The limitation on railroad rates depreciated the value of
railroad securities, a factor in causing the Panic of 1907.
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The Hepburn Act expanded the powers of the 1903
Elkins Act (promoted by the Pennsylvania Railroad
as a way to end the practice of rebates).
It gave ICC rulings the force of law (where before
only the courts could enforce the regulations) and
allowed the Commission to set maximum, though
not minimum, “fair, just, and reasonable” rates.
It also prohibited giving free passes except to
railroad employees and created standard
bookkeeping methods.
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Railroads were required to submit annual reports to
the ICC, which appointed professional staff to
examine railroad accounts.
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President Theodore Roosevelt took an extreme interest in
passage of the bill and deeply supported the Hepburn Act.
He worked to keep more stringent regulations out of the
legislation.
President Roosevelt thought improved government
regulation of the industry was a halfway point between the
chaos of unrestricted competition (including the formation
of monopolies) and government ownership of the railroads.
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On November 25, 1905, Harper's Weekly featured a cartoon by William
Allen Rogers about President Theodore Roosevelt's attempt to pass federal
railroad regulation.
This cartoon depicts President Roosevelt appears in his “Rough Rider”
uniform, with spike in hand, prompting an enraged (Republican) Elephant to
attack.
The opposing Republican Elephant has been transformed into a train engine
(note the elephant legs), representing large railroad corporations (“trusts”),
which controls its threatening movements.
The top right corner shows uncle Sam and other onlookers anxiously
watching the fight.
It was Roosevelt’s regulation of the railroads that earned him the nickname,
“trustbuster.”
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The cartoon "Hepburn Rate Bill" by Clifford K. Berryman was published on
May 15, 1906 on the front page of the Washington Post.
Berryman depicted the Hepburn Bill limping back to the House on crutches,
in reaction to the Senate's torrent of revisions.
The bill also appears frightened - it knew the Constitution requires
legislation to pass both houses of Congress before being presented to the
President and that the House may not agree with the Senate's changes.
However, none of the Senate amendments essentially altered Roosevelt's
vision of the bill, and thus the teddy bear (representing Theodore Roosevelt)
expresses his approval of the legislation.