The Railroad Commission was organized in 1905 by legislative action (Chap. 362). It was the successor to the Office of the Railroad Commissioner which had been established in 1874 (Chap. 273). Originally a three member commission, the Office of the Railroad Commission was the product of a reform movement led by Grange interests to regulate railroad freight rates. At first the Commission had extensive rate-making authority. Within a few years the Commission's structure and powers were changed by the legislature. Its rate-making authority was removed, and it's size was decreased in 1876 to a single commissioner (Chap. 57). In 1881, it was transformed into an elective office (Chap. 300). Subsequent to 1877, the Office of the Railroad Commission was known as the Railroad Department (1877-1882) and then as the Railroad Commissioner's Department (1882-1907).
The Railroad Commission consisted of three members chosen by the governor with confirmation by the senate for terms of six years. The Commission was given enhanced and extensive powers to regulate railroad operations. In 1907, with the passage of the original public utility law (Chap. 499, Laws of 1907), the regulation of utilities was added to the Commission's duties. The Commission's authority extended to administering the laws bearing upon regulation of railroads; street railroads; telegraph and telephone companies; express, freight line, sleeping car, light, water, heat, and power companies; railroad construction; certificates of public conveniences and necessities; valuations of properties; safety devices; and other areas.
In subsequent years the Commission was given authority to regulate and supervise other areas of commercial activity. These included jurisdiction over water power operations (1915); the regulation of securities (Chap. 674, Laws of 1919); and regulation of auto transportation companies (Chap. 395, Laws of 1927). The commission's role as regulator of Wisconsin railroads diminished in importance with the addition of these new responsibilities.
Additionally, as a result of the Transportation Act of 1920, many of its powers were transferred to the federal Interstate Commerce Commission (ICC). Except in purely intrastate cases, after 1920 the Commission primarily acted only to represent the interests of Wisconsin shippers in cases before the ICC. The Commission continued to exercise control over the regulation of railroad safety devices and railroad service. It also continued to collect statistics on railroad accidents.
By 1920, the Commission's greatest concerns were with the regulation of public utilities. The Commission was responsible for approving utility operating and construction permits, setting utility rates, and regulating utility operations, services, and safety. The Commission's control over water power operations extended to the granting permits for all dam construction and operations. The Commission was also responsible for regulating water levels on lakes and rivers. The Commission's responsibilities for securities, usually referred to as the Blue Sky Law, involved licensing and regulating any company wishing to bur or sell securities in the state. In 1931 (Chap. 183, Laws of 1931) the public utilities law was extensively revised and the Commission's powers relative to utilities were expanded. As a result, the name of the Railroad Commission was changed to the Public Service Commission.
