History of Rail Transportation in California - Regulation

Regulation

Public response to the corruption that arose from California's economic "explosion" led to the enactment of numerous reform and regulation measures, many of which coincided with the ascendancy of the Populist and Progressive movements. Early examples of railroad regulation include Granger case decisions in the 1870s, and the creation of the first (albeit ineffective) Railroad Commission via amendment of the State's Constitution of 1879, forerunner of today's California Public Utilities Commission. In 1886, the U.S. Supreme Court ruled against Santa Clara County in Santa Clara County v. Southern Pacific Railroad. The documents of the Court decision included a statement that a corporation henceforth could be considered an American citizen, with all the associated immunities and privileges (except the right to vote). The document phrasing has long made it difficult for states to pass legislation that could make corporations accountable to the people. The Stetson-Eshelman Act of 1911 provided for the fixing of shipping rates by state legislatures. In 1911, California's new Progressive government established the second Railroad Commission, more effective and less corrupted than the first one.

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Famous quotes containing the word regulation:

    Lots of white people think black people are stupid. They are stupid themselves for thinking so, but regulation will not make them smarter.
    Stephen Carter (b. 1954)

    Nothing changes my twenty-six years in the military. I continue to love it and everything it stands for and everything I was able to accomplish in it. To put up a wall against the military because of one regulation would be doing the same thing that the regulation does in terms of negating people.
    Margarethe Cammermeyer (b. 1942)

    Nothing can be more real, or concern us more, than our own sentiments of pleasure and uneasiness; and if these be favourable to virtue and unfavourable to vice, no more can be requisite to the regulation of our conduct and behavior.
    David Hume (1711–1776)