An 1899 political cartoon in the New York World newspaper showing Uncle Sam being made to walk the plank by trusts.
Trusts became very powerful in the late 1800s. One such trust, Rockefeller's Standard Oil Corporation, controlled over 90% of the oil refining and petroleum business. This meant that trusts could dictate higher prices for everything from gasoline to steel to copper. Why? Because there was no competition to stop these mega-companies.
The Sherman Antitrust Act
Soon though, Americans grew tired of paying too much for goods caused by a lack of fair competition. In 1890, Congress enacted the Sherman Antitrust Act named for Ohio Senator John Sherman. The law made it illegal to form a trust that interfered with free trade between states or other countries. Additionally, the law made it a felony or serious crime to control prices.
The government used this law to break large trusts into smaller, more competitive companies. For example, in 1911, the federal government used the Sherman Antitrust Act to break the Standard Oil Company into thirty smaller companies.
Why were trusts so powerful?
What actions were felonies under the Sherman Antitrust Act?
Why do you think Congress wanted to limit trusts' control of the economy?
| Your Responses | Sample Answers |
|---|---|
| Monopolies which control trusts also control prices and trade between states. | |
| to control prices or restrict trade between states | |
| to lower prices, promote competition, and grow the economy | |
