Objective: To examine the causes and effects of the
Sherman Anti-trust Act.
Do Now: Name as many oil/gas companies as you can.
John D.
Rockefeller
Sen. John Sherman
J. Pierpont
Morgan
1

Major Global Oil Companies
(16 Chevron stations are branded as "Standard" to protect Chevron's trademark of "Standard Oil" )
Trust – an industry controlled by a single board of directors

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
Mergers – one corporation buys out the stock of another
Monopoly = buy out all competitors/control wages and prices
 Holding company – buy out stocks of other companies
 J.P. Morgan bought Carnegie Steel
 John D. Rockefeller’s Standard Oil Company
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
Trusts = competing companies join -> form one large corporation but all members earn money from dividends on their stocks
90% of the oil industry (1880)

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Pay extremely low wages, reduce competition by selling oil at a low price, then he increased the price of oil
“Robber baron”
Gave away $500 million
3

Standard Oil Trust
· John D. Rockefeller formed the Standard Oil trust in 1890.
John D. Rockefeller: Oil, Money, and Power (4:08)
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· The
Standard Oil trust ended competition , forming a monopoly .
· The
Sherman Antitrust Act was passed in 1890, banning the
5 formation of trusts and monopolies .

Why would Americans criticize his tactics?
Political cartoon showing a Standard Oil tank as an octopus with many tentacles wrapped around the steel, copper, and shipping industries, as the White House.

Who has the ability to influence the Senate?
Why is this important?
7

How does the cartoonist depict trusts?
8

How does the cartoonist view monopolies? What is the federal government’s response?
“The Modern Buccaneers” 9

This Harper's Weekly cartoon by W. A. Rogers portrays the rise of the large business corporation ("monopoly") as an illicit enterprise (a pirate ship) which menaces economic competition, and depicts the response of the federal government as woefully inadequate (Uncle Sam shooting a toy
10 cannon).

“Congress—Who’s In It and Who Owns It”; cartoon by Jacob
Burck reflecting the opinion that _______interests were able to
11 maneuver the ______________.

“Congress—Who’s In It and Who Owns It”; cartoon by Jacob
Burck reflecting the opinion that big money interests were able
12 to maneuver the politicians.

The Role of Banks
· J. Pierpont Morgan used profits earned as a banker to purchase other major corporations.
· By 1898, Morgan controlled most of the major rail lines in
America.
· By 1901,
Morgan became head of the U.S.
Steel Company, which became the first U.S. company to be worth over $ 1 billion .
J.P. Morgan – Carnegie Steel (2:35)
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What is the message of this cartoon?
14

Interlocking director – An individual who serves as a director of two or more corporations. If the corporations are competitors, interlocking directorates generally violate antitrust laws.
15

What were the causes and effects of the Sherman Anti-Trust Act?
Causes Effects
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