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President Cleveland signed the Interstate Commerce Act in 1887. What did the act forbid?
AExcessive charges, pools, rebates and rate bias
BForeign ownership of any railroad company
CNight working on all interstate railroads
DAny new railroad line west of Chicago
Answer & Solution
Correct answer: A. Excessive charges, pools, rebates and rate bias
1. 1. Four practices are named as forbidden: excessive charges, pools, rebates and rate discrimination.
2. 2. Pooling was the arrangement by which rival companies split traffic and shared the earnings.
3. 3. Rate discrimination meant charging some shippers more than others between the same points.
4. 4. The act also created a commission to guard against violations, but ownership, working hours and new lines are not what it banned.
_Source: An Outline of American History (U.S. Information Agency, 1990, public domain), section CITIES AND PROBLEMS MULTIPLY_
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