1902 in rail transport

Transcription

Railroads and Coal As a Progressive, Theodore Roosevelt was willing to use the power of his office to regulate large businesses. In addition to breaking up large trusts, Roosevelt used other means to weaken the power of corporate bosses, intervene on the behalf of workers, and protect the American consumer. In 1902, 140,000 coalminers went on strike in Pennsylvania. The workers were demanding a 20 percent raise, a nine-hour workday, and the right to form a union. Yet, the owners of the mines refused to bargain. As the strike wore on, the nation's coal reserves, which the US economy depended on, began to run low. Roosevelt determined to intervene. President Roosevelt called the leaders of both sides to the White House in an attempt to work out an agreement. When talks began breaking down, Roosevelt threatened to use the power of the federal government to seize control of the mines for the benefit of the nation. Faced with the president's threat, the laborers and mine operators agreed to settle the dispute via arbitration (allowing a third party to mediate). As part of the settlement, miners were granted a 10 percent pay hike and a nine-hour workday. In order to receive the benefits, the miners had to give up their demands to set up a closed shop (all workers had to belong to the union) as well as their right to go on strike again for the following three years. Roosevelt's actions established the precedent of the US government intervening in labor disputes whenever the welfare of the nation was threatened. Another area where Roosevelt used the power of his office to regulate big business was the railroad industry. The nation was largely dependent on railroads to move people and goods, but powerful barons (wealthy businessmen) and trusts controlled much of America's tracks. High rates, corruption, and bribery were common. In 1887, Congress had attempted to prevent railroad owners from colluding together to fix prices with the passage of the Interstate Commerce Act. The Interstate Commerce Commission (ICC) was established to enforce the act, but the agency held little enforcement power. Roosevelt argued that more federal regulation was needed to protect consumers. In 1903, Congress passed the Elkins Act, which prohibited railroad officials from giving rebates to shippers for using their railroads, as it had been a common form of bribery as well as a way to target competitors. In addition, railroads were forbidden to change rates without notifying the public in advance. In 1906, Congress added on the Hepburn Act, which limited a company's ability to selectively distribute free railroad passes. The act also allowed the ICC to set a maximum rate companies could charge. The bills signed into law by Roosevelt greatly increased the power of the federal government to regulate railroads within the United States.