SLOGAN
Protecting the Small
QUOTES
“We wish to control big business so as to secure among other things good wages for
the wage workers and reasonable prices for the consumers.”(Theodor Roosevelt)
“If necessary the nation has got to posses the right of supervision and control as
regards the great corporations which are its creatures, particularly as regards the
great business combinations which derive a portion of their importance from the
existence of some monopolistic tendency.”(Theodor Roosevelt)
TRUST BUSTING
government activities seeking to dissolve corporate trusts and monopolies
SHERMAN ANTITRUST ACT
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In 1890 the Government took a stand against monopolies in fear that would
crush free competition.
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Sherman Antitrust Act passed to stop companies from interfering with free trade.
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Almost impossible to enforce
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Act didn’t define words like trust, prosecuting companies was not easy.
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If companies felt any pressure from the government, they would just throw out
their trust and reorganize into individual corporations
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Supreme Court refused the act, and threw out seven of the eight causes
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Government gave up on the enforcement of the Sherman Antitrust Act
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Businesses continued to consolidate
NORTHERN SECURITIES
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In the twentieth century American were growing into great interregional systems
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Separate railroad companies co-operated with each other
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Two greats of the American railroad and finance were involved in railroad consolidation
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J.P. Morgan
• Wall Streets most powerful investment banker at the time
• Highest interests were his holdings in the Northern Pacific Railroad
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James J. Hill
• St. Paul based “empire builder”
• Owned the Northern railroad
• His railroad crossed the same states as the Northern Pacific lines
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Morgan and Hill saw an advantage in controlling the Burlington railroad
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Created new corporation, The Northern Securities
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Did not think about the power TR would bring to the presidency
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Roosevelt prosecuted the Northern Securities company
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1904, Supreme Court shut it down
RR REGULATION
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1887 congress passed the Interstate Commerce Act
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Established a 5 member board called the Interstate Board of Commission
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Railroad companies held monopolies in the area they served
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Railroad companies set their own prices for shipment
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Offered lower rates to customers with larger loads
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In the 1860’s the Granger movement took place, which went against railroad
monopolies for their high prices
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Granger Movement- begun by farmers who called for government regulation of
railroads and other industries whose prices and practices were monopolistic and
unfair.
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Granger movement failed and original interstate Commerce Act guidelines
remaind
ELKINS ACT
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Senator B. Elkins presented the senate with the Elkins Act in early 1902
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In 1903 the Elkins Act was put into place to stop the practice of rebates
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Rebates- A deduction from an amount to be paid or a return of part of an amount
given in payment.
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Gave federal courts power to end rate discrimination
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The Elkins Act also upheld rates published by the Interstate Commerce Act
HEPBURN ACT
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Passed in 1906 the Hepburn act gave the Interstate Commerce Commission (ICC)
the authority to make the railroad rates
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The Hepburn Act was written by William Peters Hepburn
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The ICC’s original purpose was to regulate railroads to ensure fair rates and
regulate other aspects of common carriers
FEDERAL TRADE ACT
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Passed In 1914, the Federal Trade Act established the Federal Trade Commission (FTC)
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FTC- a federal agency, established in 1914, that administers antitrust and consumer
protection legislation in pursuit of free and fair competition in the marketplace.
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The Federal Trade Act was one of Wilsons biggest acts against trusts
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This act was issued “cease & desist” orders on large corporations to curb unfair trade
practices
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Also gave more flexibility to the U.S. Congress for judicial matters
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Passed in the senate by a 43-5 vote on September 8th, 1914 and passed the house on
the 10th
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The Federal Trade Act’s principal mission was the promotion of consumer protection
and the elimination and prevention of anti-competitive business practices
CLAYTON ANTITRUST ACT
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Passed in 1914 to clarify and supplement the Sherman Antitrust Act of 1890
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Drafted by Henry De Lamar Clayton
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The Clayton Antitrust Act prohibited exclusive sales contracts, local price cutting,
rebates, and intercorporate stock holdings
COAL STRIKE
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Took place in 1902, was also known as the Anthracite Coal Strike
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United Mine Workers of America in the Anthracite coal fields of eastern
Pennsylvania
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Miners were demanding higher wages, shorter work days, and recognition of their
union(UMWA)
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Strike threatened to shut down winter fuel supply to all major cities
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President Roosevelt set up a fact-finding commission that suspended the strike
PRESIDENTS
• Theodor Roosevelt
• William Taft
• Woodrow Willson