Leveraging the Supreme Court's establishment of Congressional supremacy over commerce, the Interstate Commerce Commission was established in 1887 with the intent of regulating railroad robber barons. President Grover Cleveland appointed Thomas M. Cooley, a railroad ally, as its first chairman and a permit system was used to deny access to new entrants and legalize price fixing.
The establishment of the Interstate Commerce Commission in 1887 was driven by the Supreme Court's recognition of Congressional authority over commerce, with the aim of regulating railroad monopolies under President Grover Cleveland's administration. Thomas M. Cooley, a railroad supporter, was appointed as its initial chairman and implemented a permit system to control new entrants and legalize price fixing.