What authority did the Hepburn Act (1906) grant to the ICC?

• A. To regulate postal rates
• B. To supervise interstate commerce in shipping
• C. To oversee aviation
• D. To set railroad rates and regulate railroad practices.

Answer: (D)

The main idea being tested is how the Hepburn Act expanded federal regulation of railroads by giving the Interstate Commerce Commission real power over pricing. Before this act, the ICC could investigate and supervise some practices but couldn’t set actual rates; railroads had more freedom in setting prices. The Hepburn Act explicitly authorized the ICC to set maximum railroad rates and regulate railroad practices, including issues like rebates and discriminatory pricing, and it also broadened the Commission’s oversight to related railroad operations. This reflects the Progressive Era goal of strengthening government to curb monopolies and protect shippers and consumers.

Postal rates fall under the postal service, not railroad regulation. Aviation regulation came later and was not addressed by this act. While the ICC did oversee interstate commerce, the key change here was the authority to fix rail rates and regulate rail practices, not a general mandate over all interstate shipping.