This chapter discusses the legal battles between Texas's railroads and the Texas Railroad Commission. James S. Hogg lobbied for the creation of a railroad commission after becoming governor in 1890. The Railroad Commission immediately lowered rates between 10 and 75 percent from their unregulated levels with the result of stimulating the local economy. The trustees of seven railroads filed for an injunction against the rates and a further injunction against any future rates. The chapter examines the Supreme Court case Reagan v. Farmers' Loan and Trust Company, which laid the groundwork for both Smyth v. Ames and Ex parte Young, as well as the Commerce Court ruling that Texas's railroad rates were discriminatory and interfered with interstate commerce. It also considers the Shreveport Rate Cases, in which the railroads claimed that Congress did not have the power to regulate intrastate rates, and another case involving Pullman.
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