The following is an excerpt from the Interstate Commerce Act of 1887. “Monopolies are generally viewed as harmful because they obstruct the free competition that determines the price and quality of products and services offered to the public. The railroad monopolies had the power to set prices, exclude competitors, and control the market in several geographic areas. Although there was competition among railroads for long-haul routes, there was none for short-haul runs. Railroads discriminated in the prices they charged to passengers and shippers in different localities by providing rebates to large shippers or buyers. These practices were especially harmful to American farmers, who lacked the shipment volume necessary to obtain more favorable rates.”

According to the excerpt why was it necessary to pass the Interstate Commerce Act of 1887?

to regulate unfair business practices established by railroads

to regulate giving the same rates for hauling the same freight and same distance

to regulate influencing the passing of the Wabash decision

to regulate charging more for short and long hauls