How did the federal government respond to the economic issues of tariffs, trusts, and railroads in the late 1800s?

Tariffs, or taxes on imported goods, have been used by the
government since the 1700’s to help American businesses.  A tariff would make foreign
made goods more expensive so people would buy American made goods.  Between 1865 and
1900, a debate raged whether tariffs were good or bad for the country.  Some argued they
were good since they helped American businesses, while others argued that they were bad
because they raised prices on goods purchased by American consumers.  This debate was
reflected in the fact that in the late 1800’s the tariff was continually raised and then
lowered again and again.

In the late 1800’s, large
corporations such as Standard Oil Company, led by John D. Rockefeller, were established
and these companies began to form “trusts”.  Trusts were a type of business
consolidation common in the 1880’s and 1890’s where businesses came together under the
direction of a board of trustees to operate as one giant corporation.  This was used
specifically to create monopolies to reduce competition which could hurt the American
consumer.  Railroads in particular began to use business practices that hurt consumers,
and especially small farmers who would have to ship their produce to market by rail. 
Railroads gave large shippers rebates, or illegal kickbacks, and these railroads also
began to form “pools” to reduce competition.  In the late 1800’s, the government began
to react to these types of business practices.  Its first target was the railroads.  The
government passed the Interstate Commerce Act in 1887 to regulate railroad rates.  This
law also established the Interstate Commerce Commission to oversee this law.  Then, in
1890, the government passed the Sherman Anti-Trust Act which banned trusts or other
business organizations that restricted interstate commerce.