The Intermediate Rate Association (IRA) was formally organized at a convention of western businessmen on June 13, 1921 in Salt Lake City, Utah. The organization took its name from the then current railroad practice of illegally charging a greater rate on freight for east or westbound transcontinental traffic dropped at "intermediate" points than was charged to more distant points of destination. Thus, a businessman was charged more to ship goods by rail from Chicago to Spokane, Washington, than if he shipped them all the way to Portland, Oregon.

Included in the functions of the IRA was the maintenance of legal counsel in order to prosecute cases against the railroads before appropriate governmental agencies, especially the Interstate Commerce Commission, lobbying for lower rates, and promoting member's viewpoints through speakers and pamphlets. General offices of the IRA were located in Spokane, Washington, and several businessmen prominent in the Spokane Chamber of Commerce, such as J. A. Ford and C. O. Bergen, were leaders in the national organization. However, membership and activities were widespread throughout the inter-mountain region. The IRA played an active part during several transportation rate controversies of the 1920's and 1930's, particularly the Gooding Bill and the Pettengill Bill.