Mrs. Ruland's U.S. History Class Project
Trust-Busting
In the late 19th century, the economy was full of trusts and monopolies. They used horizontal and vertical consolidation to raise prices and force competition out of business, so they could raise prices even more. The most prominent of these corporations were Standard Oil, the American Tobacco Company, and the Beef trust. The government realized they had a problem on their hands and designed the Sherman Antitrust Act in 1890. However, the act was mostly ineffective and some trusts even argued that the law could be used against labor unions. The government responded by forming the Clayton Antitrust Act in 1914. In time, Standard Oil, the American Tobacco Company, and the beef trust were broken up or forced to change. Holding companies like the Northern Securities Company were broken up as well. The Theodore Roosevelt and William Taft administrations focus on trust-busting finally paid off.
Sherman Antitrust Act of 1890
This web site gives information on the origins and specific uses of the Sherman Antitrust Act as well as information on the Clayton Antitrust Act and the Federal Trade Commission. The web site also gives some background on the leaders in the fight to end trusts. Using this page for background research on the various antitrusts acts and the actions of important political figures, such as Teddy Roosevelt or John Sherman, against trusts is recommended.
This web site provides information on the Sherman Antitrust Act. The site shows the successes and failures of the act and the specific punishments that trusts were to be given if found in violation of the law. It uses a political cartoon to show how the trusts were stronger than the government, and in some case controlled the government. The web site also includes a brief summary of the Clayton Antitrust Act.
Clayton Antitrust Act of 1914
Encarta encyclopedia gives the important points of the Clayton Antitrust Act, which was an upgrade of the Sherman Antitrust Act of 1890. The site includes the cause of the act, as well as what the unions gained and what the trusts could no longer do. It also contains a few links to other related articles. The downside is that the site does not provide any specific examples of when the Clayton Antitrust Act was used.
Northern Securities Company
This web site provides a brief summary of the Northern Securities Company v. United States Supreme Court case of 1904. It shows the constitutional principles involved in the case and the overall outcome. This case was a huge victory for the Antitrust Administration, and gave it some power over holding companies such as Northern Securities. However, the site is very brief.
Breakup of Standard Oil
The Dismantling of the Standard Oil Trust
This website tells the reader about the life of John D. Rockefeller and the Standard Oil Company. The website also shows the definition of trusts and the reaction to trusts by the people. Also, on the website there is information on the President's actions about trusts and what he did to stop them. This site contains a lot of reading however.
Trustbusters: A History Lesson
This website shows the reader a detailed history about trustbusting. Starting at the early 1900's with Rockefeller and ending with the 1980s cases against Big Blue (IBM) and Ma Bell (AT&T). This site shows what trusts are and how they have affected Americans throughout history. This website is a lesson however and may not be a great site for just gathering information.
Whatever Happened to Standard Oil?
This site provides detailed information about the history of the Standard Oil trusts. It contains a thorough timeline depicting the growth of the Standard Oil company across the nation. A colorful map differentiates between the specific regions that each faction of the trust held marketing rights in, such as Maverick Oil's right to marketing in the eastern New England region. The site wraps up with an insightful FAQ section to allow readers to receive more information about the history of the oil trusts.
Theodore Roosevelt's Role
Towards the middle of former President T. Roosevelt's 1912 speech, he professes his belief and focus on breaking up trusts and monopolies. He defends his accomplishments against the accusations of President Wilson. He walks through his successes and failures and shares his personal opinion on trust-busting.
Trust-Busting Today
Anti-trusts or Anti-free markets
This is an interesting account of a recent Senator who believes that trusts are still a problem today and are not being dealt with sufficiently. He uses modern examples like Microsoft and Intel to defend his accusations. He claims that this time period is similar to the time period just before the trust outbreak and the U.S. may be on the verge of a repeat in trusts in the economy.
By Brian, Stephen, Tim and Zach
Last updated March 28, 2005
© Marcella Ruland 1998-2008, All rights reserved
