Railroads Take Control

James J. Hill

The time before 1906, railroads had complete freedom over what they ship. James J. Hill and J. P. Morgan controlled most of the western railroads. They controlled what come in and out, how much it costs and who pays for what to ride on the trains. They gave away free RR passes to individuals with power, so that they can have free advertisement when they travel.

J. P. Morgan

Because they controlled so much power, they not only influenced national trade but also international trade. Asian and Pacific traders had to play a higher price for shipping because of Hill and Morgan’s Power. Those places had no other choice to pay because that was the only way to bring their trades the east.

In 1906, Teddy Roosevelt pushed the Hepburn Act, which limited the distribution of free RR passes. Also The Interstate Commerce Commission took control over Hill’s and Morgan’s railroad and made the railroad industry set rates for shipping and traveling costs. That helped everyone who ships and travels on railroads, because they now have to pay less to ship and to travel.