Final answer:
Frank Norris's novel The Octopus exposed the corrupt practice of railroad companies charging farmers exorbitant transportation fees. This practice was part of broader exploitations by railroad "robber barons", who benefited from differential shipping rates and government support while undermining small farmers.
Step-by-step explanation:
Frank Norris and Railroad Business Practices
Frank Norris exposed several corrupt business practices in his novel The Octopus: A Story of California. However, the specific practice addressed in your question regards the way railroad conglomerates exploited farmers, which is the practice of railroad companies charging farmers and ranchers excessive rates to transport goods and livestock to their land. This manipulation is effectively conveyed through Norris's allegorical use of the octopus to describe the suffocating grip of railroad monopolies on farmers.
According to historical records and literature, railroad barons, often characterized as "robber barons," became wealthy through exploitative practices, such as offering differential shipping rates that favored large businesses over local farmers. These practices resulted in not only economic disparities but also widespread disenchantment among the farming community. The Interstate Commerce Act and the Sherman Anti-Trust Act were designed to address these issues, yet due to the legal and logistical barriers, small farmers often found little relief.
The federal government played a significant role in these dealings by providing resources in the form of government loans and land grants to railroad companies. While this facilitated infrastructure growth and national connectivity, it also opened doors for railroad companies to misuse their powers by favoring certain customers and manipulating rates, which was detrimental to small-scale producers. The situation was further exacerbated by the influence railroad corporations held over politics and legal systems, leaving farmers at a significant disadvantage.
Muckrakers like Norris stepped in to shine a light on such corrupt practices, and their investigative journalism played a crucial role in the Progressive Era, leading to reforms that sought to tackle these monopolistic behaviors and provide some protection to individual and small business interests.