Elkins Act of 1903
TR sponsored the Elkins Act as part of his "Square Deal.” It was one of his first steps in regulating the economy. It greatly helped boost his first term popularity.
The act was an amendment to the Interstate Commerce Act of 1897. It imposed heavy fines on railroads that offered rebates and on those shippers who accepted rebates. Rebates gave trusts and major manufacturers the edge over small business who couldn’t compete due to the higher cost of getting their products to market.
However, some railroad rebates helped overseas trade. Some railroad rebates were only given to businesses sending goods overseas.
