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 creation of the Interstate Commerce Commission in 1887, established by the Supreme Court's decision on Congressional supremacy over commerce, aimed to regulate powerful railroad companies under President Grover Cleveland's leadership. Thomas M. Cooley, a railroad ally, was appointed as its first chairman and implemented a permit system to restrict new competitors and allow existing companies to fix prices.