ELKINS ACT FEBRUARY 1903 ELKINS ACT TRANSPORTATION BUSINESS/COMMERCE U.S GOV'T LEGISLATIVE U.S GOVERNMENT AND CONSTITUTION IN FEBRUARY 1903 CONGRESS PASSED THE ELKINS ACT TO REGULATE THE RAILROAD INDUSTRY THE ACT STRENGTHENED THE INTERSTATE COMMERCE COMMISSION BY ESTABLISHING MORE EFFICIENT PROCEDURES AND GREATER PENALTIES FOR VIOLATING THE INTERSTATE SHIPPING REGULATIONS THE ACT MADE IT A MISDEMEANOR FOR RAILROADS TO CHARGE MORE THAN THEIR POSTED SHIPPING RATES THE ACT ALSO MADE IT ILLEGAL FOR RAILROADS AS WELL AS THEIR AGENTS AND OFFICIALS TO GIVE OR RECEIVE REBATES REBATES WERE CASH PAYMENTS OR DISCOUNTS GIVEN TO LARGE CUSTOMERS TO ENCOURAGE THEM TO USE A PARTICULAR RAILROAD THIS PRACTICE GAVE THE LARGER CUSTOMERS AN ADVANTAGE OVER SMALLER CUSTOMERS MAINLY FARMERS AND SMALL BUSINESSES WHO HAD TO PAY THE FULL SHIPPING RATE THE ELKINS ACT WAS PART OF PRESIDENT THEODORE ROOSEVELT'S ATTEMPT TO CONTROL BIG BUSINESS AND BREAK UP MONOPOLIES THE 1906 HEPBURN ACT FURTHER REGULATED RAILROADS BY AUTHORIZING THE INTERSTATE COMMERCE COMMISSION TO SET SHIPPING RATES
