American Railroad Industry

Consequently, between 1880 and rough 1920, the well-heeled Age of railwaying emerged and during this period, consolidation in the industry brought about the existence of a number of monopolies that were based on regional primacy (Leonard, 1964). The developing railroads rapidly became huge businesses, vital to the success of American capitalism. Large corporations saw railroads as a vital element in their capacity to serve markets and the railroad companies recognized that they had acquired tremendous power to control pricing structures. With the opening of the West to geographic expedition and fit(p)tlement, the railroads assumed even more significance and the railroad companies grew spicy and were able to finance political campaigns, gaining control over the legislative process as it might impact upon them (Development of the railroad monopoly, 2009).

During the insurgent half of the nineteenth century, farmers increasingly relied on railroads to transport crops. The railroad companies, which functioned as virtual regional monopolies and which joined together to set prices on the national level, were able to control the incomes of farmers through the price mechanism. The government activity decided to take action and in the creative case of Munn v. Illinois, the Supreme Court established the right of government to regulate business in the public i

According to Data Monitor (2008), the U.S.

railroad orbit had a value of $62.8 billion as of 2007. It is anticipated that by 2012, the sector will have a value of $75.1 billion. U.S. railroads argon of vital significance in terms of moving some(prenominal) passengers and freight and linking diverse regions of the country. Data Monitor (2008) sees the market as consisting of a highly competitive landscape with weak supplier power and high barriers to entry. Most rail transport in the United States consists of freight shipments, but the sector is flourishing peculiarly in light of escalating energy costs for short line truck freight carriers. Overall, many of these advances can be traced to the reel Act which has been extremely important in returning the American railroad industry to productivity and profitability.

Development of the railroad monopoly. (2009). uncommitted at

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