> The U.S. entry into the war in April 1917 coincided with a downturn in the fortunes of the nation’s railroads: rising taxes and operations costs, combined with prices that were fixed by law, had pushed many railroad companies into receivership as early as late 1915. A year later, in a last-minute bill passed through Congress, Wilson had forced the railroad management to accept union demands for an eight-hour work day.

Government fixed prices, and made one of their factors of production (labour) more expensive.