why did the us attorney general sue the northern securities company

If they didn't agree to it he threatened to take over the mines. They eventually agreed. How did Roosevelt engage in trust-busting? By directing US attorney general to sue the Northern Securities Company for violating Sherman Act and launched a vigorous trust-busting act.

Full Answer

What happened in the Northern Securities Company case?

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. The case worked its way up to the Supreme Court, where the justices …

What was the Supreme Court ruling in Northern Securities v 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.

Can the federal government stop the Northern Securities Company?

The company was sued in 1902 under the Sherman Antitrust Act of 1890 by the Justice Department under President Theodore Roosevelt, one of the first antitrust cases filed against corporate interests instead of labor. The government won its case, and the company was dissolved, so that the three railroads again operated independently.

How did the Sherman Antitrust Act affect Northern Securities?

Deciding that accommodation was preferable to a fight to the death, the erstwhile competitors merged their holdings in the Northern Securities Company. Noting that traffic between Chicago and the Northwest was monopolized, Roosevelt in 1902 ordered Attorney General Philander C. Knox to bring suit, alleging restraint of trade.

Why did Roosevelt sue the Northern Securities?

Summary and definition: The 1904 Northern Securities case was a federal prosecution in which President Roosevelt ordered the Department of Justice to take the Northern Securities Company to court for violating the Sherman Antitrust Act in his “trust-busting” efforts to break up Big business monopolies.

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 lawsuit about?

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 did Roosevelt do to the Northern Securities Company?

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.

What was the problem with the Northern Securities Company monopoly?

In Northern Securities Co. v. United States, 193 U.S. 197 (1904), the U.S. Supreme Court held that a holding company formed to create a railroad monopoly violated the Sherman Antitrust Law. The government's victory in the case helped solidify President Theodore Roosevelt's reputation as a “trustbuster.”Feb 9, 2016

Who implemented the Clayton Act?

President Woodrow Wilson signed it into law on October 15, 1914.

What was the Northern Securities Company quizlet?

Northern Securities Company a railroad holding company organized by financial titan J. P. Morgan and empire builder James J. Hill. These Napoleonic moguls of money sought to achieve a virtual monopoly of the railroads in the Northwest.

How did the Northern Securities Company become a monopoly?

The majority opinion was ruled in favor of the government, saying that the only reason for the existence of Northern Securities was to create a monopoly on railroad traffic across the northern part of the country. The court ordered the company to be separated by selling the railroads it had acquired.

In what way did the Court broaden the meaning of the word commerce in the Northern Securities case?

In what way did the Court broaden the meaning of the word commerce in the Northern Securities case?: The meaning of commerce has been broadened to mean any business that has interstate connections, such as a railroad company.

Do you agree with Roosevelt's use of the Sherman Antitrust Act against Northern Securities?

The American public cheered Roosevelt's new offensive. The Supreme Court, in a narrow 5 to 4 decision, agreed and dissolved the Northern Securities Company. Roosevelt said confidently that no man, no matter how powerful, was above the law.

What was the Northern Securities Company Worth?

To prevent hostile takeovers the agreement established the Northern Securities Company, a holding company to control stocks of the Northern Pacific, Great Northern, and Burlington. The new company in which Morgan and Hill held controlling interest was worth approximately $400 million.