In the late 19th century, the railroad industry was booming in the United States, with new tracks being laid, new routes being established, and new companies popping up all over the country. However, this rapid growth led to fierce competition among railroads, driving down prices and causing financial instability in the industry. To address this issue, the major players in the railroad industry made agreements to reduce competition and keep prices stable.

Congress, seeing the potential harm to the economy that these agreements could cause, responded by passing a series of laws to regulate the railroads. These laws, collectively known as the Interstate Commerce Act, were the first major federal regulation of a private industry in American history.

The Interstate Commerce Act established the Interstate Commerce Commission (ICC), a regulatory body that was tasked with overseeing the operations of the railroad industry. Among the ICC`s responsibilities were the enforcement of fair rates and practices, the prevention of discrimination against shippers and customers, and the investigation and prosecution of illegal agreements among railroads.

The ICC was a major milestone in the history of American regulation, and it set the stage for the government`s future involvement in regulating industries such as telecommunications, airlines, and utilities.

However, the effectiveness of the ICC was limited by a number of factors. For one, the commission lacked the power to set rates or to force railroads to comply with its decisions. Additionally, the railroads themselves had significant political power, which they used to lobby Congress and fight against regulation.

Despite these challenges, the ICC remained in operation until it was abolished in 1995. Its legacy lives on today, as the principles of fair competition and non-discrimination that it established continue to shape American policy and regulation.