Theodore Roosevelt and His Times: A Chronicle of the Progressive MovementHowland, Harold
History
Theodore Roosevelt and His Times: A Chronicle of the Progressive Movement
Howland, Harold
Progressive Party (1912); Roosevelt, Theodore, 1858-1919
By the successful prosecution of this case the Sherman act was made once
more a potentially valuable instrument for the prevention of the more
flagrant evils that flow from "combinations in restraint of trade."
During the remaining years of the Roosevelt Administrations, this legal
instrument was used with aggressive force for the purpose for which it
was intended. In seven years and a half, forty-four prosecutions were
brought under it by the Government, as compared with eighteen in the
preceding eleven years. The two most famous trust cases, next to the
Northern Securities case and even surpassing it in popular interest,
because of the stupendous size of the corporations involved, were those
against the Standard Oil Company and the American Tobacco Company. These
companion cases were not finally decided in the Supreme Court until the
Administration of President Taft; but their prosecution was begun while
Roosevelt was in office and by his direction. They were therefore
a definite part of his campaign for the solution of the vexed trust
problem. Both cases were decided, by every court through which they
passed, in favor of the Government. The Supreme Court finally in 1911
decreed that both the Standard Oil and the Tobacco trusts were in
violation of the Sherman act and ordered their dissolution. There could
now no longer be any question that the Government could in fact exercise
its sovereign will over even the greatest and the most powerful of
modern business organizations.
The two cases had one other deep significance which at first blush
looked like a weakening of the force of the anti-trust law but which was
in reality a strengthening of it. There had been long and ardent debate
whether the Sherman act should be held to apply to all restraints of
trade or only to such as were unreasonable. It was held by some that it
applied to ALL restraints and therefore should be amended to cover only
unreasonable restraints. It was held by others that it applied to all
restraints and properly so. It was held by still others that it applied
only to unreasonable restraints. But the matter had never been decided
by competent authority. The decision of the Supreme Court in these two
outstanding cases, however, put an end to the previous uncertainty.
Chief Justice White, in his two opinions, laid it down with definiteness
that in construing and applying the law recourse must be had to the
"rule of reason." He made clear the conviction of the court that it was
"undue" restraints of trade which the law forbade and not incidental or
inconsiderable ones. This definitive interpretation of the law, while
it caused considerable criticism at the moment, in ultimate effect so
cleared the air about the Sherman act as effectually to dispose of
the demands for its amendment in the direction of greater leniency or
severity.
Public-domain text, read in full here on John Shaqi.
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