The Formula For Creating A Successful Business

The railroad monopolies were the first to be targeted by the government. Small customers and businesses were taking huge hits from the outrageous overcharge and prices set by the monopolies. State legislatures attempted to fix this issue creating maximum rate laws, however the Supreme Court would later rule these state laws as unconstitutional in Munn v. Illinois. This ruling further enraged the public as many of these railroad monopolies were giving

In the years following the Civil War, railroads had become the primary form of transportation for both people and goods. They were privately owned and entirely unregulated which gave them a natural monopoly in the areas that only they serviced. Monopolies are normally viewed harmful as they obstruct the free competition that determines the price and quality of products and services offered. The railroad monopolies had the power to set prices, exclude competitors, and control the market in several geographic areas. There was competition among railroads for long-haul routes but there was none for the short haul runs. This allowed the railroads to discriminate in the prices by charging a higher price per mile for short hauls than long hauls. They also discriminated in the prices they charged to passengers and shippers in different localities by providing rebates to large shippers or buyers. These practices caused problems to the American farmers who lacked the shipment volume necessary to obtain more favorable rates. The prices charged and the practices adopted by the railroad services greatly influenced individuals and businesses. Railroads also banded

During the building of the Transcontinental Railroad, the railroads themselves created a large market for the steel and iron industries.4 The steel and oil industries were booming and corruption was rampant. Andrew Carnegie had cornered the market in the steel industry and John D. Rockefeller had cornered the oil market. Rockefeller bought up his competition after essentially putting them out of business by flooding the market with refined oil bringing down prices and profits. He was determined to pay no one a profit because he wanted it all for himself. He created a plan called vertical integration which consolidated his businesses into one by creating The Standard Oil Trust.5 These two men became known as barons and got rich beyond belief. In 1890, the Government enacted the Sherman Anti-Trust Act to prevent large firms from controlling one single industry and finally put a stop to these monopolies and trusts, 6 but it was not rigorously enforced until the 1900’s. This act was designed to restore competition and

1914: Clayton passes the Federal Trade Commission Act to invest trust activity and halt unfair behavior (false ads, adulteration.mislabeling, and bribes).

Roosevelt persuaded Congress to create a Bureau of Corporations to investigate and regulate big business, then brought an anti-trust suit against J.P. Morgan's Northern Securities Company, a railroad trust controlled by the Wall Street financier, with the United States Supreme Court upholding the closure of the trust in the case of Northern Securities Co. v. United States issued in 1904. During Roosevelt's Administration, over 40 major corporations were sued for antitrust or price-fixing violations. Roosevelt greatly expanded the powers of the government within the economy, often by endorsing new power for organized labor to organize and put forth leverage against employers. By supporting labor in the settlement of the Anthracite Coal Strike of 1902, Roosevelt became the first president to assume such a direct role in intervening in labor disputes, including the threatened use of the U.S. Army to seize the coal mines and operate them until the owners agreed to arbitration to settle the strike. Rosevelt unlike many of his successors really took advantage of the power given to him as president. During his presidency he revived the Sherman Antitrust Act ,which was an act that sought to prevent companies from combining into trusts and gaining monopolies. Roosevelt was also one to enforce the Hepburn Act, which allowed the Interstate Commmerce Commission to regulate railroads. The railroads had allied themselves with large

odUS History Review Test 18 The Rise of Industrial America, 1865 - 1900 1. The World’s Columbian Exposition in 1892 was [A] a meeting held in the District of Columbia to expose industrial working conditions. [B] the Chicago World’s Fair. [C] a summit conference of North and South American governments held in Colombia to promote industrial development in the Americas. [D] the first international labor relations conference held at Columbia University in New York City. [E] the meeting held in Chicago by the leaders of the major industrial unions, to find a method of cooperating in the struggle against big corporations. 2. The Interstate Commerce Commission was established to [A] investigate and oversee railroad activities. [B] encourage

With the Sherman Antitrust Act in 1890, the government set out to limit the power of large corporations who were monopolizing good and controlling the economy. Small businesses struggled to stay afloat in the midst of these economic superpowers. The aim of the Sherman Antitrust Act was to make monopolization illegal. This was significant because it made the American economy rich with competition and increased monetary circulation. This in turn made the economy more favorable for smaller businesses.

The period between the American Revolution and the Civil War had great significance for the United States' economy. Although initially the economy seemed unstable at first, after the second war that America fought with England, the economy began to show considerable growth thereafter. This can be seen as the result of the cotton trade in the South and the eventual industrialisation of America, especially in the Northeast and later the West. From the invention of cotton gins to the adaptation of railways one can see how the United States used their opportunities and resources to their full advantage, transforming their economy to be able to compete among the worlds leading economical countries.

Antitrust laws are federal and state government laws that regulate the conduct and organization or businesses. This helps promote fair competition for consumers. There are four main areas involving the

The Civil War changed and molded the nation onto a path never taken before the Gilded Age, leading to the use of machinery, agricultural advances, and monopolies. Farmers and industrial laborers noticed something in common- the growth of the United States was rapidly moving westward: in size, population, opportunity, and technological advances. With this rapid growth steadily increasing, industrial workers became frustrated with the unsafe workplaces, limited rights, and long shifts with low pay. Farmers recognized the growing need for agriculture in the west as the nation was expanding, but ran into trouble as the realization set in that monopolies were influencing nearly every aspect of the United State’s government and economy. The Gilded

Between 1865 and 1939 not all Americans accepted big business dominance. In the beginning of this era

In 1901, the American economy was engulfed by giant trusts. He believed that major monopolies were a major threat to free markets. As a result, he used the federal government to diminish the power upholding his policy to support the public. In addition, after the anti trust act was upheld, Theodore Roosevelt was inspired to act on more anti trust acts which included oil and American tobacco. Moreover, Theodore Roosevelt also increased the government's role by signing the Hepburn Act which gave the Interstate Commerce Commission more power over the railroads. All in all, he had implemented major changes in the department of tariffs during his presidency that was met with appreciation from the general public. He advocated for a non corrupt corporation and implemented acts in order to do

The government also enacted the Hepburn Act, which made shipping internationally difficult on the railroad. Despite the fact that government grants led to incompetent railroads, the Interstate Commerce Commission and Hepburn Act were put into place, which made it so Hill “could not offer rate discounts on exports traveling on the Great Northern en route to the Orient” which was helping improve the economy with increased trade. Hill and other market entrepreneurs were not corrupt or unfair when choosing to not have subsides, but rather the political entrepreneurs were corrupt and insolvent. Also, Folsom argues that John D. Rockefeller was negatively impacted by government intervention. The Sherman Act was intended “to prevent monopolies and those companies ‘in restraint of trade’. Yet Standard Oil had no monopoly and certainly was not restraining trade” . Rockefeller’s goal was not to create a monopoly but in order to keep his business succeeding he needed directors in each state. By enacting the Sherman Act, Rockefeller’s company struggled, due to competition rising. These laws essentially stopped the growth of successful businesses, such as Hill and Rockefeller, who became so successful due to no government intervention.

The Sherman Antitrust Act was enacted on July 2nd, 1890 which prohibits activities that restrict interstate commerce and competition in the marketplace.

The Sherman Anti-Trust Act of 1890 was passed to prohibit trusts, this was the first law passed by U.S. Congress to enforce this. This act was named after Senator John Sherman. Before this act was put into place, many other states had enforced laws very similar to the Sherman Anti-Trust Act. These laws were not perfect though, the large corporations had the majority of the economic power. Congress was not pleased with this, thus making the Sherman Anti-Trust Act. This act allowed Congress to regulate interstate commerce, outlawing monopolistic practices. If a person were to violate this act, he or she could be imprisoned for a year and fined five-thousand dollars. This law was successfully used to help Theodore Roosevelt during his campaign, “trust-busting”. Also, President Taft used the law to back himself up against the Standard Oil Trust and American Tobacco Company. The Standard Oil trust was when a board of nine trustees was set up to make all of the company decisions , allowing the company to run as a monopoly. The Sherman Anti-Trust Act allowed both presidents to dissolve the trusts that were creating problems. On the other hand, the Sherman Anti-Trust Act had many holes, it did not have exact wording, therefore allowing companies to still control the majority of the producing and still get away with it. The Sherman Anti-Trust Act had substantial success, but was put to rest and replaced with the Clayton Anti-Trust