During the mid to late 1800's, the American economy boomed and expanded at an astonishing rate due to rapid industrialization, wealth of natural resources, many new inventions, and an expanding labor force. Railroads and big business led by the principles of laissez faire and capitalism ruled the new economy. The governments concern over the economy and major corporations abusing commerce legislation led to federal inference to protect American interests.
The first step to the economic expansion of the United States was the evolution of railroads to transport American goods quicker and more effectively. Railroads provided the service of connecting the mines of Wyoming to the manufacturing centers of the north. The government trying to strengthen the infrastructure began giving land grants to connect the country together with railroad lines to quicken the transportation of materials. By 1968, the government bought 131.5 million acres of land in twenty five states at an average of ten cents an acre. Democratic Congressmen J. K. Luttrell in a speech to House of Representatives said, "the result of granting or giving away acres of public domain or lands of the people. The people are groaning under the burdens of taxation heaped upon them by reckless and willful legislation upon the part of their Representatives, who have given to unscrupulous corporations lands, bonds, and money." (Document G) In response, in 1876, Congress terminated land grants for railroad usage saying, "that in the judgement of this House, no subsidy in money, bonds, public lands, endorsement, or by pledges of public credit, should be granted by Congress to associations or corporations engaged or proposed to engage in public or private enterprises." (Document F).
Exploitation of the common citizen by railroad companies and major corporations led to the Interstate Commerce Act of 1887. Rapid inflation, price discrimination, business pooling, and railways" unfair charges contributed to federal action.
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