1. Good Trusts, Bad Trusts, & Trust Busting

2. 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

3. 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

4. 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

5. 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)

6. 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

7. 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

8. 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