Why regulation grew
Farmers, merchants, and communities often complained about freight rates, discriminatory pricing, and the power of large railroad companies.
Interstate Commerce Act
The Interstate Commerce Act of 1887 created the Interstate Commerce Commission, commonly called the ICC, to oversee interstate railroad practices.
A long regulatory era
Over time the federal government gained greater authority over rates, mergers, service, and other railroad matters.
Deregulation
By the 1970s many railroads were financially weak. The Staggers Rail Act of 1980 reduced economic regulation and gave freight railroads more flexibility in rates and contracts.