Congress responded to the railroad industry making agreements to reduce competition and keep prices high in the late 1800s by a. creating the interstate commerce commission. b. offering a subsidy to small farmers. c. raising taxes on railroad owners. d. creating the social security administration.

A. creating the Interstate Commerce Commission

In 1887 Congress passed the Interstate Commerce Act, making the railroads the first industry subject to Federal regulation. Congress passed the law largely in response to public demand that railroad operations be regulated. The act also established a five-member enforcement board known as the Interstate Commerce Commission. In the years following the Civil War, railroads were privately owned and entirely unregulated. The railroad companies held a natural monopoly in the areas that only they serviced.