Antitrust Movement

Antitrust Movement, 1880-1890:

  • “Robber barons/Titans of Industry”
    • Created alliances known as trusts to gain control of industries.
  • In Railroads:
    • Railroad companies formed groups
    • to divide traffic
    • fix rates
    • keep rates higher in areas where there was no competition
    • Time Zones, 1883, 1918
  • Farmers banded together as the Patrons of Husbandry, or the Grange, in1867.
    • The Grange pushed for state regulations of the railroad monopolies.
    • Eventually, Congress passed the Interstate Commerce Act in 1887
    • Outlawed pools and unfair pricing
    • Required rates to be “reasonable and just”
    • Determined by a case-by-case basis
    • Created Interstate Commerce Commission to determine
      • They were ignored
      • Sympathized w/ R.R. companies
  • Sherman Antitrust Act, 1890
    • "Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States is hereby declared to be illegal."
    • Problems:
      • What is "restraint of trade?"
      • What's trust?
      • U.S v E. C. Knight Company
        • Determined E.C. Knight Company's monopoly in the sugar industry legal because "sugar manufacturing isn't commerce"
        • After the ruling, the act was basically useless
    • Used later against unions
Unless otherwise stated, the content of this page is licensed under Creative Commons Attribution-ShareAlike 3.0 License