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How did the Interstate Commerce Commission become a model for later U.S. regulatory agencies?
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Administrative law
Cartoon depicting a uniformed Interstate Commerce Commission officer shining a large searchlight on U.S. railroad executive Edward Henry Harriman, who is struggling to carry a large load of packages and toy trains, some labeled “merger.”
The Interstate Commerce Commission (ICC), established in 1887, served as the prototype for independent regulatory agencies in the United States. It became a model for later agencies by demonstrating that a commission of specialists could provide more consistent policy and deeper industry expertise than an elected legislative body.12
The ICC’s structure established several key precedents for administrative governance:
- Combined Functions: It pioneered the integration of legislative and judicial functions, allowing agencies to set standards and conduct hearings to judge adherence to those standards.2
- Independence: It operated outside direct executive supervision, intended to remain impartial and nonpartisan.2
- Systemic Regulation: It was the first body to regulate an entire class of industries rather than addressing issues on a case-by-case basis.2
- Administrative Design: It utilized a commission system with fixed, staggered terms for appointees, preventing any single president from drastically altering an agency's direction.2
This framework directly influenced the creation of subsequent bodies, such as the Federal Trade Commission and the Federal Communications Commission.2