Until  1886,  it  was  generally  believed  that  a  state  had  a  right  to  regulate
rates  on  all  transportation  business  within  its  boundaries,  but  in  that
year  the  United  States  Supreme  Court  decided  that  the  regulation  by  a
state  of  rates  on  traffic  originating  outside  of  the  state,  or  destined  to
points  outside  of  the  state,  is  interference  with  interstate  commerce.  As
most  of  the  traffic  is  interstate  this  decision  practically  deprived  state
regulation  of  its  force.  The  demand  of  the  public  for  regulation  of  railways
continued  to  increase  to  such  an  extent  that  Federal  regulation  became
a  necessity.  In  1887,  Congress  passed  the  "Act  to  Regulate  Commerce."
This  Act  created  a  commission  to  investigate  and  adjust  transportation
charges,  and  to  correct  abuses,  but  this  law  did  not  prevent  discrimination,
although  the  railroads  were  compelled  to  begin  a  semblance  of  tariff
enforcement,  and  it  did  secure  publicity  of  rates,  reduced  freight  charges,
and  adjusted  railroad  charges  in  different  localities.  The  Act  was  so  framed
that  its  provisions  could  be  evaded  by  both  the  shippers  and  the  carriers.
