Presentation on theme: "Northern security Co. Jacob Romeo Vs. US."— Presentation transcript:
Northern security Co. Jacob Romeo http://ehistory.osu.edu/osu/mmh/1912/trusts/NorthernSecurities.cfm Vs. US
At the turn of the 20 th century J.P Morgan was The most powerful investment banker in Wall Street, with holdings in the Northern Pacific Railroad James J. Hill was the founder of the great Northern railroad Hill and Morgan teamed up and controlled the Burlington Railroad, which connected the Twin Cities of Minnesota with Chicago and extended deep into the grain belt of the upper Midwest. Origin of Northern security company
Collaborators John D. Rockefeller also helped finance Northern securities. They also gained the help of Edward Harriman who was trying to acquire the Burlington, Quincy, and Chicago railroads earlier. American-buisiness.org
Cause of the case Roosevelt's Department of Justice prosecuted the Northern Securities Company for violating the Sherman Act. The Sherman act is based on the constitutional power of Congress to regulate interstate commerce. It declared every contract, group, or conspiracy that restrained interstate and/or foreign trade illegal. : Sherman Antitrust Act — Infoplease.com http://www.infoplease.com/ce6/history/A0844878.html#ixzz1viZ4vqnuSherman Antitrust Act — Infoplease.comhttp://www.infoplease.com/ce6/history/A0844878.html#ixzz1viZ4vqnu
After that the Northern securities company sued in order to repeal the act. However they were judged guilty on a 5-4 ratio of judges in the supreme court.
Result The courts decided that the Northern securities company was unconstitutional and the company was dissolved. This was a huge victory for Theodore Roosevelt. Not only did he gain his reputation as a trust buster, he also proved that the power of the executive office was greater than companies
Change in policies Federal incorporation started to become more prominent After this case, a gentleman’s agreement practice emerged between J.P Morgan and other companies, and Roosevelt’s administration.