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The Staggers Act - Research Paper Example

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This also brought about competition in the sector since the new businesses were privately owned by individuals. Similarly, the increase of…
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The Staggers Act
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The Staggers Act

Download file to see previous pages... The Staggers Act was a Federal ruling that removed restrictions from the American railroad industry. The main aim of the Act was to restore the highly-controlled structure of the US rail transportation system that operated since the enactment of the Interstate Commerce Act (‘87) (Eakin, et al, 2010). The regulation forced private railroad businesses with the adoption of price control and counter the emerging competition in the industry. This meant that the private firms would adjust their operations to other non-profitable routes in order to enhance their survival in the industry. The provisions of the Staggers Act entailed the requirements that rail transporters could inflict any given fee for services. The provision was applicable in situations where the carriers did not experience competition from other sectors. Another stipulation was the removal of the industry-wide rate regulation to facilitate an all-inclusive business environment (Gallamore & Meyer, 2014). The other change was that one railroad would be free to provide access to the others in case of a single railroad in order to avoid rail congestion.
The intent of the Act was to ensure that the railway transportation flourished despite the entry of new players in the industry. It is evident that airlines and automobiles provided alternative transport systems to the passengers. As a result, the private railroad firm started to adjust charges in order to fight the emerging competition within the industry (Feldstein, 1994).
The Staggers Act’s aim was to protect the public railroad by ensuring that charges favored all players across the industry. It is also prudent that the existence of the Interstate Commerce Commission (ICC) ensured that all transport corporations observed the new ruled imposed on them. This was a noble step towards restoring normalcy ...Download file to see next pagesRead More
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