The Railroad Takes Over

Reliance and Conflict
railroad, track, expansion, travel, transport
The railroad system, once the backbone of transportation and travel, played a crucial role in the functioning of both individuals and businesses. However, the absence of government regulation led to escalating rates, causing discontent among various stakeholders.
Rising Railroad Rates and Public Dependence
Railroad companies capitalized on the public's reliance on their services and increased rates without government oversight.
Effect on Businesses and Travelers: Business owners, farmers, and travelers faced dissatisfaction due to the elevated prices.
Call for Government Intervention in Railroad Pricing
Growing discontent prompted states to seek government involvement in regulating railroad prices.
Interstate Commerce Challenges: Expensive travel and shipping costs hindered interstate commerce, affecting the transportation of goods across state lines.
The Role of Interstate Commerce in Seeking Regulation
The expenses incurred in interstate commerce became a catalyst for government intervention.
Need for Price Regulation: States sought government regulations to ensure fair pricing and maintain the viability of interstate commerce.
Why were the railroads able to charge high prices for shipping and travel?

There were very few railroads in the country.

People relied on the railroads for fast transportation.

Railroads were the only legal form of travel.

The railroads held a monopoly on transportation, allowing them to control prices without fear of competition. Additionally, the high demand for their services meant that customers were willing to pay the higher prices in order to access fast and efficient transportation. Without government regulation in place, the railroads were free to set prices as they saw fit, leading to the increased rates that caused dissatisfaction among businesses and travelers.