Question

Why did industries become so much larger after the US Civil War, and how did this lead to abusive practices? What role did politics play in creating US laws fostering competition?

Answer 1

Without the unifying influence of a transcontinental railroad system, industrial progress in a nation the size of the United States would have been difficult. At the end of the Civil War, most of the existing railway operations were "short lines" serving a limited territory. Confusion was rampant when goods were shipped over long distances; freight had to be reloaded repeatedly on different lines to reach their destinations.

The concept of transcontinental railroad lines was discussed as early as the 1830s, and was revived during the 1849 gold rush in California. Until the Civil War, technical difficulties, bitter rivalries over route locations, and massive expenses prevented action. With the passage of the Pacific Railroads Act, which provided funding for the Union Pacific Railroad and Central Pacific Railroad, Congress began the process in 1862 for a variety of political and military motives. Other transcontinental links soon followed.

Despite the strong support in US political culture for the idea of competition, there is no single, generally accepted, authoritative statement of purpose for national competition policy. The first national competition laws, the Interstate Commerce Act of 1887 and the Sherman Act of 1890, made federal powers and institutions available for the application of substantive principles largely derived from com