What was the role of the Interstate Commerce Commission (ICC) regarding railroad rates?

The correct answer highlights the essential function of the Interstate Commerce Commission (ICC) in regulating railroad rates. Established in 1887, the ICC was the first federal regulatory agency designed to oversee the practices of railroad companies. One of its primary responsibilities was to ensure transparency in the pricing of railroad services, which it achieved by making railroad rates public. This was significant in preventing railroads from offering preferential rates to certain customers, which could create unfair competitive advantages and allow for exploitative practices. By prohibiting secret or discriminatory pricing, the ICC aimed to facilitate a fairer market environment for both consumers and smaller businesses relying on rail transport.

The role of the ICC was not to set fixed prices for all railroad services; rather, it aimed to establish a framework of oversight to ensure that rates were reasonable and just. Additionally, while the ICC had regulations that influenced practices within the railroad industry, it did not privatize operations for profit nor eliminate all forms of economic regulation. Its goal was regulation rather than complete deregulation, focusing on maintaining a balance between private enterprise freedom and public interest.