Final answer:
To say many railroad companies formed "pools" means they collaborated to regulate competition and prices within a specific area to maintain higher profits. This was part of the broader economic and political changes brought about by the Transcontinental Railroad's expansion, which included both government support and questionable business practices.
Step-by-step explanation:
When many railroad companies formed "pools," it meant that they essentially agreed to divide the business in a particular area among themselves, setting rates and schedules to avoid competition that could drive down profits. This practice was one aspect of the larger story of the Transcontinental Railroad and its economic impact during the 19th century in America.
The construction and rapid expansion of the railway system were fueled by a mix of private investment and considerable governmental support, including land grants and federal and state loans. Such financial strategies were critical in connecting the vast American West with the rest of the country, dramatically increasing real estate and farm values along the way. However, alongside the successes, there were also failures, leading to bankruptcies and the creation of ghost towns. Larger railroad companies, often run by the so-called "robber barons," engaged in exploitative practices like differential shipping rates, which ultimately led to nationwide strikes such as the Pullman Strike.
Through these practices, railroads brought profound political and economic changes, including urban growth and national political power consolidation. Despite their transformative impact, railroad companies' strategies and government collaborations frequently led to criticism, and the term "corporate welfare" emerged to describe the attitude that private companies benefited from public risk.