LEARNING TARGETS
At the end of this lesson you will:
● Tell how Roosevelt felt about trusts and other large business organizations
● Discover the Supreme Court Ruling in Northern Securities v the United States
● Know the events that took place at eastern Pennsylvania’s anthracite mines
● Identify the Bureau of Corporations and its activities involving with U.S. Steel
● Identify the Interstate Commerce Commission and its activities with the railroads
● Know who Upton Sinclair was and what he did.
● Understand the impacts of the Meat Inspection and Newlands Reclamation Acts.
● Explain how laissez-faire was related to preserving public lands
● Describe the situation with patent medicines that led to the passage of the Pure
Food and Drug Act, and describe the protections the new law provided.
ROOSEVELT REVIVES THE PRESIDENCY
-Roosevelt Takes on the Trusts
• “I shall see to it that everyman has a square deal, no
less and no more.”—Theodore Roosevelt
•
Roosevelt believed that trusts and other large
business organizations were very efficient and part of
the reason for American’s prosperity.
• He also wanted to find a way to supervise big
business without destroying is economic efficiency.
NORTHERN SECURITIES
Three men, E.H. Harriman (Union Pacific), James J. Hill (Great Northern), and J.P.
Morgan (Northern Pacific) fought for control of the Burlington Railroad company.
This stock battle almost created a financial panic which could have sent the nation
into a recession.
The three men compromised and formed the Northern Securities holding company.
This mammoth company (with too much power) concerned many, including
Roosevelt, as a classic example of private interests threatening the nation as a
whole.
Roosevelt decided that Northern Securities violated the Sherman Anti-trust
Act.
In 1904 in Northern Securities v. the United States, the Supreme Court ruled that
Northern Securities had indeed violated the Sherman Antitrust Act.
Roosevelt was hailed as a “trustbuster” and his popularity soared.
ROOSEVELT REVIVES THE PRESIDENCY
-The Coal Strike of 1902
• Nearly 150,000 workers walked out of eastern Pennsylvania’s
anthracite (coal) mines demanding a pay increase, a reduction
in work hours, and recognition for their union.
• The nation was in danger of facing a massive coal shortage,
closing factories, and cold homes in winter.
• To Roosevelt it was another example of groups pursuing
their private interests at the expense of the nation.
THE COAL STRIKE OF 1902
Roosevelt threatened the uncooperative mine owners with
sending in the US Army to run the mines if they did not accept
arbitration with the mine workers.
The mine owners gave in and accepted a deal ending the strike.
Roosevelt had taken the first step toward the federal government
becoming an honest broker between powerful groups in
society.
ROOSEVELT REVIVES THE PRESIDENCY
-The Bureau of Corporations
• Bureau of Corporations, with the authority to investigate
corporations and issue reports on their activities.
• U.S. Steel, would open their account books and records to
the Bureau of Corporations.
• In exchange, if the Bureau found anything wrong, the
company would be advised privately and allowed to correct
the problem without having to go to court.
ROOSEVELT REVIVES THE PRESIDENCY
-Congress Follows
• The Interstate Commerce Commission Regulation of Big
Business was an effort to regulate the railroad industry.
• Over time the ICC became a supporter of the railroads
interests, and by 1920 it had begun setting rates at levels
intended to ensure the industry’s profits.
SOCIAL WELFARE ACTION
By 1905, consumer protection was a national issue.
●Samuel Hopkins Adams published magazine articles (Collier’s) describing the patent
medicines available at the time
●most were alcohol, colored water, and sugar
●some were laced with caffeine, opium, cocaine, and other dangerous compounds
●few medicines did as they claimed they would
●Public outcry led to the passage of legislation in the form of the Pure Food and Drug Act
●prohibited the manufacture, sale, or distribution of impure or falsely labeled food and drugs
SOCIAL WELFARE ACTION
• Dr. W.H. Wiley, chief chemist at the US Department of
Agriculture, issued reports documenting the dangerous
chemicals being used to preserve meats.
• Upton Sinclair observed the slaughterhouses of Chicago.
• Sinclair published “The Jungle”.
• Sinclair’s book was a best-seller.
• It made consumers ill and angry. Roosevelt and Congress
responded with the Meat Inspection Act.
CONSERVATION
-Land Development in the West
• In1902 Roosevelt supported passage of the Newlands
Reclamation Act, authorizing the use of federal funds from
public land sales to pay for irrigation and land development
projects.
• Roosevelt appointed Gifford Pinchot to head the US Forest
Service in order to save the nation’s forests.
• Roosevelt quadrupled the amount of national
forests, and established 5 new national parks
and 51 federal wildlife reservations.
CONSERVATION
-Gifford Pinchot
• Laissez-faire argument that the best way to preserve public
land was to sell it to lumber companies, who would then
carefully conserve it because it was the source of their profits.
• Pinchot rejected this idea: “The natural resources must be
developed and preserved for the benefit of the many and not
merely the profit of a few”—Gifford Pinchot
• Pinchot drew up regulations controlling lumbering on federal
wildlife reservations.
REVIEW QUESTIONS
● How did Roosevelt feel about trusts and other large business organizations?
● What was the Supreme Court Ruling in Northern Securities v the United
States?
● What events that took place at eastern Pennsylvania’s anthracite mines?
● Identify the Bureau of Corporations and its activities involving with U.S. Steel
● What were the Interstate Commerce Commission and its activities with the
railroads?
● Who was Upton Sinclair was and what did he do?
● What impacts did the Meat Inspection and Newlands Reclamation Acts have
on their respective areas of influence?
● How was laissez-faire related to preserving public lands?
ESSAY QUESTION
Describe the situation with patent medicines that led to the passage of the Pure Food
and Drug Act, and describe the protections the new law provided.
ESSAY ANSWER
Describe the situation with patent medicines that led to the passage of the Pure Food
and Drug Act, and describe the protections the new law provided.
In an era before modern pharmaceuticals had been developed, many companies
patented and marketed potions they claimed would cure a variety of ills. Many
patent medicines were little more than alcohol, colored water, and sugar. Others
contained caffeine, opium, cocaine, and other dangerous compounds.
Consumers had no way to know what they were taking, nor received any
assurance the potions worked as claimed. In 1905 a series of articles in Collier’s
magazine helped focus public attention on the problem. An outraged Roosevelt
pushed for federal legislation. In 1906 the Pure Food and Drug Act was passed,
prohibiting the manufacture, sale or shipment of impure or falsely labeled food
and drugs.