=Railroad Consolidation.=--It has been shown that at the beginning railroad building consisted of short stretches from town to town, or from the end of one water communication to the beginning of another. It was but reasonable that these would join for the purpose of through traffic. The result was also better efficiency as the equipment could be used to better advantage; the terminal costs were reduced as there were not so many of them; and, what may have been a leading cause, the control, and perhaps prevention, of competition. Unrestricted competition caused rate wars; rates once down it was difficult to get them back and frequently bankruptcy occurred. Government regulations were made prohibiting rate agreements and pooling. Such apparently hastened consolidation. One objection to consolidation was the concentration of vast financial powers in the hands of a few, and since money had much influence in Washington and in the state capitals, political power as well. This and combinations of other industrial concerns were causes which brought about the enactment of the Sherman Anti-Trust law of July 2, 1890.[109] This law did not come in time to stop consolidation and it may be doubtful if it would for the Supreme Court has decided that combinations are not unlawful unless they exercise an unreasonable restraint upon trade.[110] The methods of consolidation are: _merger_ or outright purchase, in which case the individual lines lose their separate identity; _stock purchase_, wherein a controlling share of the stock of another road is held by the purchasing line or by a holding company; _lease_ usually for long periods, a rental being paid periodically for the use of the line; and, _community of interest_, that is the establishment of friendly relations. The consolidations are more often financial than physical. When two roads physically combine under one management it is customary to reorganize and assume the same name. In the consolidations given in the table below many of the roads are operated separately and almost independently but are dominated by common financial interests with common policies or very friendly relations. Some of the principal consolidations prior to 1912 are:[111] _Vanderbilt Interests_