Thus the Constitutional distinction between state and inter-state commerce is irrelevant to the real facts of American industry and trade.
In the past the large corporations have, on the whole, rather preferred state to centralized regulation, because of the necessary inefficiency of the former.

Inter-state railroad companies usually exercised a dominant influence in those states under the laws of which they had incorporated; and this influence was so beneficial to them that they were quite willing for the sake of preserving it to subsidize the political machine and pay a certain amount of blackmail.

In this way the Pennsylvania Railroad Company exercised a dominant influence in the politics of Pennsylvania and New Jersey; the New York Central was not afraid of anything that could happen at Albany; the Boston and Maine pretty well controlled the legislation of the state of New Hampshire; and the Southern Pacific had its own will in California.

Probably in these and other instances the railroads acquired their political influence primarily for purposes of protection.

It was the cheapest form of blackmail they could pay to the professional politicians; and in this respect they differed from the public service corporations, which have frequently been active agents of corruption in order to obtain public franchises for less than their value.