What was the Northern Securities Corporation Teddy Roosevelt?
The Northern Securities Company was a short-lived American railroad trust formed in 1901 by E. H. Harriman, James J. Hill, J.P. Morgan and their associates. The company controlled the Northern Pacific Railway; Great Northern Railway; Chicago, Burlington and Quincy Railroad; and other associated lines.
What happened in the Northern Securities Supreme Court case?
v. United States, 193 U.S. 197 (1904), was a case heard by the U.S. Supreme Court in 1903. The Court ruled 5 to 4 against the stockholders of the Great Northern and Northern Pacific railroad companies, who had essentially formed a monopoly, and to dissolve the Northern Securities Company.
What was the significance of the Northern Securities case?
The Northern Securities case was significant because: It overturned the previous decision of United States vs E. C. Knight Co. in which the Court ruled that the Sherman Antitrust Act was insufficient in regulating that monopoly.
Why was Teddy Roosevelt a trust buster?
A Progressive reformer, Roosevelt earned a reputation as a “trust buster” through his regulatory reforms and antitrust prosecutions. His “Square Deal” included regulation of railroad rates and pure foods and drugs; he saw it as a fair deal for both the average citizen and the businessmen.
Who busted the Northern Securities trust?
trust-busting role of Roosevelt Roosevelt pursued this policy of “trust-busting” by initiating suits against 43 other major corporations during the next seven years. (See primary source document: Controlling the Trusts.)
What industry was busted by the Northern Securities case?
It took over twenty years before the federal government, under President Theodore Roosevelt, got around to challenging the “trusts” in court. Seven years after the Northern Securities case, an even larger trust was “busted” by the Supreme Court. It was the oil trust known as Standard Oil, owned by John D.
Why was the Northern Securities Company broken up?
In the same year, Hill set up the Northern Securities Company, a holding company to control the three railroads, with himself as president. The U.S. Supreme Court declared it in violation of the Sherman Anti-Trust Act in 1904 and ordered the company dissolved.
What was the Northern Securities Case 1902?
In 1902, President Theodore Roosevelt instructed his Justice Department to break up this holding company on the grounds that it was an illegal combination acting in restraint of trade. Using the Sherman Anti-Trust Act, the federal government did so and the Northern Securities Company sued to appeal the ruling.
What is a trust and what is a trust buster?
Trust busting is the manipulation of an economy, carried out by governments around the world, in an attempt to prevent or eliminate monopolies and corporate trusts. Trusts are typically large conglomerates that may hold the title of or own the assets of several organizations.
What did the Northern Securities violate?
The purpose of the new company was to acquire stock in two railroads, the Northern Pacific and the Great Northern. The government of President Theodore Roosevelt (1858–1919) filed suit to break up Northern Securities, on the grounds that such a company violated the 1890 Sherman Antitrust Act.
When did the Northern Securities case reach the Supreme Court?
The Northern Securities Case (1904), which established President Theodore Roosevelt’s reputation as a “trust buster,” reached the Supreme Court in 1904.
Why was the Northern Securities Company dissolved in 1904?
Roosevelt’s Department of Justice prosecuted the Northern Securities Company for violating the Sherman Act. In 1904, the Supreme Court agreed with the administration’s position, and ordered the Northern Securities company dissolved. For Roosevelt, this proved a great victory.
Who was involved in the Standard Oil antitrust case?
The Standard Oil antitrust case pits President Theodore Roosevelt against tycoon John D. Rockefeller in a legal battle that continues to influence antitrust thinking today, and just how big and powerful one company should be. Use Up/Down Arrow keys to increase or decrease volume.