This problem was soon circumvented, and President Theodore Roosevelt promoted the antitrust cause, calling himself a "trustbuster." In 1914, Congress established the Federal Trade Commission (FTC) to formalize rules for fair trade and to investigate and curtail unfair trade practices. 325 (1895), that manufacturing was not interstate commerce. Initial enforcement of the Sherman Act was halting, set back in part by the decision of the Supreme Court in United States v. Still, the act was a far-reaching legislative departure from the predominant laissez-faire philosophy of the era. In effect, Congress passed the problem of enforcing the law to the Executive Branch, and to the judicial branch, it gave the responsibility of interpreting the law. For example, such key terms as monopoly and trust were not defined. Because Congress was somewhat uncertain of the reach of its legislative power, it framed the law in broad common-law concepts that lacked detail.
Congress had enacted the Sherman Act pursuant to its constitutional power to regulate interstate commerce, but this was only the second time that Congress relied on that power.
However, enforcement of the act proved to be difficult. It also made it a crime to "monopolize, or attempt to monopolize … any part of the trade or commerce." The purpose of the act was to maintain competition in business. The Sherman Act made agreements "in restraint of trade" illegal. All of these acts attempt to prohibit anticompetitive practices and prevent unreasonable concentrations of economic power that stifle or weaken competition. §§ 41 et seq.), and the Robinson-Patman Act of 1936 (15 U.S.C.A. §§ 12 et seq.), the Federal Trade Commission Act of 1914 (15 U.S.C.A. The act was followed by several other antitrust acts, including the Clayton Act of 1914 (15 U.S.C.A. The public demanded legislative action, which prompted Congress, in 1890, to pass the Sherman Act. fear and hatred of unchecked power, whether political or economic, and particularly of monopolies that ended or threatened equal opportunity for all businesses. Even more important, perhaps, was that the trusts fanned into renewed flame a traditional U.S. Steel Corporation).Ĭonsumers, workers, farmers, and other suppliers were directly hurt monetarily as a result of the monopolizations. Rockefeller's Oil Trust (Standard Oil of New Jersey), and J. The most notorious of the trusts were the Sugar Trust, the Whisky Trust, the Cordage Trust, the Beef Trust, the Tobacco Trust, John D. Access to greater political power at state and national levels led to further economic benefits for the trusts, such as tariffs or discriminatory railroad rates or rebates. The trusts found that through consolidation they could charge Monopoly prices and thus make excessive profits and large financial gains. manufacturing and mining industries into nationwide monopolies. Trusts were corporate holding companies that, by 1888, had consolidated a very large share of U.S. By the end of the century, however, the emergence of powerful trusts began to threaten the U.S. Until the late 1800s the federal government encouraged the growth of big business.
#Sherman act s 1 free#
Antitrust laws seek to eliminate such illegal behavior and promote free and fair marketplace competition. Some businesses have tried to eliminate competition through illegal means, such as fixing prices and assigning exclusive territories to different competitors within an industry. However, many businesses would rather dictate the price, quantity, and quality of the goods that they produce, without having to compete for consumers.
When businesses fairly compete for the consumer's dollar, the quality of products and services increases while the prices decrease. The prevailing economic theory supporting antitrust laws in the United States is that the public is best served by free competition in trade and industry. antitrust laws, was signed into law by President Benjamin Harrison and is named after its primary supporter, Ohio Senator John Sherman. §§ 1 et seq.), the first and most significant of the U.S. The Sherman Anti-Trust Act of 1890 (15 U.S.C.A.
0 kommentar(er)
