[1] Prior to the Elkins Act, the livestock and petroleum industries paid standard rail shipping rates, but then would demand that the railroad company give them rebates.
The law was sponsored by President Theodore Roosevelt as a part of his "Square Deal" domestic program, and greatly boosted his popularity.
Court cases brought before the commission generally did not result in punitive action, as the ICC was composed primarily of railroad interests.
[3] Carriers found guilty of price discrimination, moreover, could appeal the ICC decision to federal courts, delaying punishment for years.
[6] By reducing the severity of punishment, legislators hoped to encourage firms to testify against each other, and promote stricter enforcement of the law.
The result of the Elkins Act was that railroads had a stronger mechanism to protect their collusive prices and corporate trusts were weakened in their ability to gain shipping discounts.
[citation needed] While farmers may have benefited from the establishment of a price ceiling on freight rates, the nature of the railroad industry may have not have permitted perfect competition.
Economist Robert Harbeson argues that the price wars prior to the Elkins Act suggest that the railroad industry was more oligopolistic.
[10] Congress was criticized for enacting only monetary fines for violations of the law and avoiding imposition of criminal penalties.