Monopolies and Trusts

The Progressive Movement pushed for more government regulation in domestic affairs, which included the economy. Large corporations often employed workers which were underpaid and worked in poor working conditions; the goal of the Progressive Movement was to dissolve these inequalities.

Important People

Ida Tarbell

Ida Tarbell was a "muckraker", meaning that she was a journalist who found flaws in the American government or in politicians and exposed them. Tarbell wrote and published McClure's Magazine which tarnished the reputation of the Standard Oil Company and brought to their unethical practices.

Theodore Roosevelt

Theodore Roosevelt-the 26th president of the United States- aimed to regulate up large corporations. He accomplished this through the Sherman Anti-Trust Act, which prevented certain contracts and combinations of countries. Roosevelt proved this act effective through the regulation of the Northern Securities Company. Roosevelt was given the nickname: "trust-buster."

William Howard Taft

William Howard Taft was Roosevelt's successor and was known for breaking up many different trusts and monopolies; in fact, he broke up almost twice as many trusts/monopolies than Roosevelt. Most notably, he broke up the Standard Oil Company in 1911 using the Sherman Anti-Trust Act.

Major Events

Northern Securities Cases (1904)

The Northern Securities Companies was a group of companies that all had formed a large railroad trust formed by notable economic figures: J.P. Morgan and James J. Hill. Roosevelt used the Sherman Anti-Trust Act to file a lawsuit against these companies and ultimately won. The ruling in the favor of Roosevelt reinstated some government power over the economy to ensure that trusts and monopolies aren't built up to that extreme.

Standard Oil Breakup (1911)

The Standard Oil Companies was a oil monopoly controlled by John D. Rockefeller, who, at the time, controlled a majority of the oil market. Taft used the Sherman Anti-Trust Act-yet again-to effectively dissolve the Standard Oil Companies into 34 smaller companies.

Key Laws/Court Decisions

Sherman Anti-Trust Act (1890): made it illegal to form trust, restrict trade, or form monopolies

Elkins Act (1903) aimed to prevent corruption within the railroad industry by preventing rebates which, in turn, made the market more fair.

Clayton Antitrust Act of 1914 strengthened anti-trust laws and protected labor unions and advocated for workers' rights.

Federal Trade Commission Act (1914): allowed the government to oversee businesses to prevent unjust actions.

Media

Media, as in all stages of US History, played a significant role in The Progressive Movement pertaining to trusts and monopolies as it influenced public opinion and caused a increase in awareness of the severity and gravity of the situation. It helped call for action as there were more people to get behind the movement.

In the cartoon, the large trusts are held together and portrayed negatively as they are fat and oversized.

Evaluation

The Progressive Movement pertaining to trusts and monopolies was significant in the American economic history as it signified a pivotal time. By utilizing the various acts and laws discussed in the website, the Progressive Movement brought control of the economy and prevented trusts and offered consumer protection.

The Progressive Movement pertaining to trusts and monopolies was widely successful; however, the primary focus of the movement was placed on certain companies and ignored social issues-equality. Additionally, there was incomplete coverage and enforcement of the rules; some people got away with it.

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