Good trusts bad trusts trust busting
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Good Trusts, Bad Trusts, & Trust Busting PowerPoint PPT Presentation


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Good Trusts, Bad Trusts, & Trust Busting. Good Trusts. Large corporations that encouraged economic development & cooperation between industries Businesses that learned new ways to cooperate with other businesses Businesses that incorporates new ways of self-regulation. Bad Trusts.

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Good Trusts, Bad Trusts, & Trust Busting

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Good trusts bad trusts trust busting

Good Trusts, Bad Trusts, & Trust Busting


Good trusts

Good Trusts

  • Large corporations that encouraged economic development & cooperation between industries

  • Businesses that learned new ways to cooperate with other businesses

  • Businesses that incorporates new ways of self-regulation


Bad trusts

Bad Trusts

  • Large corporations:

    • Widespread corruption among business leaders

    • Employed unfair business practices (unfair labor practices, poor working conditions & price fixing)

    • Restricted ability of workers to unionize

  • Government Officials (Progressives) seek to break up these Bad Trusts and enact reforms


Teddy roosevelt trust busting

Teddy Roosevelt & Trust Busting

  • 1902—Teddy Roosevelt began breaking up trusts (large corporations)

    • Directed the Department of Justice (DOJ) to begin a series of prosecutions (citing the violation of the Sherman Anti-Trust Act)

    • 1st Target: Northern Securities Company

      • Financier J.P. Morgan merged RR Companies, created monopoly over RR’s of nearly all RR’s from Chicago to CA


Northern securities company v the united states

Northern Securities Company v. the United States

  • Court held stock transactions constituted an illegal combination in restraint of interstate commerce & restricted competition—thus enabling the company to control prices (price gouging)


Teddy roosevelt trust busting1

Teddy Roosevelt & Trust Busting

  • No. Securities Co. v. U.S. established T.R.’s reputation as a ‘trust buster.’

  • During his 2 terms, the DOJ filed 43 court cases under the Sherman Antitrust Act

    • Purpose: to restrain to dissolve business monopolies

  • Targets included major tobacco and beef trusts

  • T.R. viewed suits as necessary to publicize corruption in big business & to assert the Federal Government’s final authority over big business


Teddy roosevelt trust busting2

Teddy Roosevelt & Trust Busting

  • While he did support small business, he did not truly advocate breaking up ALL big corporations.

    • He was interested in breaking up the large corporations that broke the law


Teddy roosevelt s 2 nd term

Teddy Roosevelt’s 2nd Term

  • Pushed for greater regulatory legislation

  • 1906—Hepburn Act

    • Strengthened the ICC (Interstate Commerce Commission)

    • ICC—established in 1887 as the 1st regulatory commission/agency

      • Purpose: authorized to set max Railroad rates and inspect financial records of Railroad Companies


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