Final answer:
The Hepburn Act gave the ICC the power to set maximum rates for railroads, affecting how they manage occupancy and capacity. It shifted the burden of proof to railroads to justify their rates. Zoning regulations influence business operations, not direct occupancy rate regulation.
Step-by-step explanation:
Under the Hepburn Act, the occupancy rate is not directly regulated; however, the Act expanded the authority of the Interstate Commerce Commission (ICC) to establish maximum rates for railroads, which indirectly influences how railroads manage their occupancy and capacity. Before the Hepburn Act, the ICC could only investigate and litigate against perceived violations of fair competition. With the enactment of the Hepburn Act in 1906, a shift in responsibility occurred, and railroads were now tasked with proving the fairness of rates if they differed from those set by the ICC, placing a larger emphasis on the businesses to demonstrate that their rates and by extension, their occupancy strategies were just and reasonable within the framework of industry regulation.
Zoning regulations, which define how property can be used, do not directly regulate occupancy rates, but they do impact business operations by delineating what types of activities can take place in specific areas. Zoning is a common land-use regulatory tool used by urban areas since New York City's first zoning ordinance in 1916. Understanding these regulatory frameworks is essential for business owners who must adhere to both zoning and industry-specific regulations like those imposed by the Hepburn Act on railroads.