Hepburn ActPlociennik,Ines

Period 3

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.

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.

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.

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.

Railroads were required to submit annual reports to the ICC, which appointed professional staff to examine railroad accounts.

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.

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.”

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.