The Supreme Court regulated in the Northern Securities Trust case that monopoly was illegal and the trust should be broken up. The Northern Securities Case (1904), which founded President Theodore Roosevelt’s name as a “trust buster,” grasped the Supreme Court in 1904.
EXPLANATION:
The Supreme Court regulated in the Northern Securities Trust was the first model of Roosevelt’s use of anti-trust legislature to disassemble a monopoly, in this case, a retaining company regulating the major railway lines from Chicago to the Pacific Northwest.
James J. Hill of St. Paul, Minnesota struggled against the efforts of his arch-competitor Edward H. Harriman to take control of Burlington, Chicago, and Quincy Railroad in 1901. Hill, who ran the Great Northern and North Pacific Railroads, aimed to obtain entree to Chicago for its tracks from the Twin Cities. Hill and Harriman worked closely with financier John D. Rockefeller and banker J. P. Morgan to establish the Northern Securities Company after a prolonged and potentially catastrophic bidding war for CB&Q.
Founded in the state of New Jersey (which had laws that support this type of bargain), Northern Securities held a majority stake in CB&Q, the North Pacific, and the Great Northern railways, along with small roads related to the three.
In 1902, President Theodore Roosevelt commanded his Department of Justice to divide this retaining company on the grounds that it was an unlawful combination that acted to limit trade. By applying the Sherman Anti-Trust Act, the federal government did so and the Northern Securities Company prosecuted to appeal the decision.
The case went to the Supreme Court, where the judges decide 5-4 in favor of the federal government. Roosevelt's trial had ignored the advice of prominent Republicans and showed independence from party elders. It also increased the support of its people and helped in its election campaign in 1904.
LEARN MORE:
If you’re interested in learning more about this topic, we recommend you to also take a look at the following questions:
• The government not sued the northern securities railroad trust because it thought the trust was? https://brainly.com/question/5082675
• What is an example of “trust-busting” that Theodore Roosevelt enforced? https://brainly.com/question/1619983
KEYWORDS : Northern Securities Trust, North Pacific Railroads
Subject : History
Class : 10-12
Sub-Chapter : Northern Securities Trust
