Final answer:
Governor James Stephen Hogg established the Texas Railroad Commission in 1891 to regulate railroad operations, including rates and fair competition, in response to the concerns of farmers and shippers in Texas.
Step-by-step explanation:
Governor James Stephen Hogg established the Texas Railroad Commission in 1891 to oversee all railroad operations in the state of Texas. This commission was designed to regulate the rates charged by railroads, ensure fair practices, and address the concerns of farmers and other shippers who felt that the railroads were abusing their power and engaging in unfair pricing and scheduling practices.
As a regulatory agency, the Texas Railroad Commission sought to enforce transportation laws and maintain a level of fair competition within the industry. Over time, the commission's authority expanded to oversee not only railroads but also the burgeoning oil and gas industry in Texas.