The background of regulation is reviewed, the interstate commerce act is examined, and the development of multimodal regulation is discussed. The regulatory practices of the Interstate Commerce Commission are discussed, the effects of regulation are outlined, and the alternatives to regulation are considered. The Interstate Commerce Act of 1887, the Elkins and Hepburn Acts, and the Transportation Act of 1920 are all examined. A consideration of multimodal regulation covers motor carrier regulation, common carriers, contract carriers, water carrier regulation, freight forwarder regulation, the Reed-Bulwinkle Act and the Transportation Act of 1958. Major regulatory areas such as entry, rates, service and mergers are considered individually, and the effects of regulation on prices, service, on market share, and on the economy are summarized. Alternatives to the current system may take one of 2 possible directions: regulation may be strengthened and increased, or regulation can be reduced or eliminated. History indicates that regulation was established to reduce the competitiveness of railroads. Its objective has been to maintain cartel pricing and to increase profitability of railroads. Although, in recent years, it has not been successful in securing profits for rail carriers, it has inflicted substantial costs and inefficiencies on the rest of the economy. Antitrust regulation appears to be the only type of public control necessary. The abolition of all economic regulation of surface freight transportation would bring large benefits to shippers, consumers and the economy.

  • Corporate Authors:

    American Enterprise Institute for Public Policy Research

    1150 17th Street, NW
    Washington, DC  United States  20036
  • Authors:
    • Moore, T G
  • Publication Date: 1972

Media Info

  • Features: Tables;
  • Pagination: 98 p.

Subject/Index Terms

Filing Info

  • Accession Number: 00134764
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Jun 23 1976 12:00AM