Final answer:
The U.S. government passed the Interstate Commerce Act in 1887 at the end of the Gilded Age to regulate monopolies and unfair business practices by railroads, establishing standard rates, requiring transparency, and creating the Interstate Commerce Commission for oversight.
Step-by-step explanation:
The U.S. government took significant steps to regulate monopolies and unfair business practices by the railroads at the end of the Gilded Age with the passage of the Interstate Commerce Act in 1887. This seminal law required railroads to establish standard rates and publish these rates to ensure transparency and fairness, particularly for small farmers who had previously been at a disadvantage due to discriminatory pricing practices. Furthermore, the Act led to the creation of the Interstate Commerce Commission (ICC), the first federal agency responsible for regulating industry, effectively curbing the predatory practices of railroads by overseeing their business practices, including establishing 'reasonable and just' rates.
In the subsequent years, the regulatory framework was expanded with the enactment of the Sherman Antitrust Act of 1890, which targeted monopolistic practices across various industries, not just railroads. Together, these acts formed the foundation of federal regulatory policy aimed at promoting fair competition and controlling the influence of powerful conglomerates on the U.S. economy.