The establishment of a transnational railroad system after the Civil War dramatically changed the nature of industry and, as a result, of government. Railroads reshaped regional alliances, stimulated businesses, and increasingly tied the country together in one national market. At the same time the structure of the railroad industry left customers vulnerable to unethical business practices, leading many to call for government oversight of the railroads.

Unfair Pricing.

Competition proved difficult to sustain in the railroad industry. Larger lines drove smaller ones out of business by undercutting their rates. Once larger company had taken over a smaller company's routes, it raised prices to finance other acquisitions.When a single railroad company controlled a route, the company could charge whatever it chose for transporting freight and passengers. These prices were not only inflated but often whimsical and unfair. Companies often discounted the rates...