Final answer:
The reason behind large companies forming alliances was to gain more power and control in the market. By doing so during the era of industrialization, they engaged in anticompetitive practices which led to the passage of antitrust laws to ensure fair competition.
Therefore, option 1) is correct.
Step-by-step explanation:
The formation of an alliance by large companies to squeeze out competition and influence members of the US Senate is best understood within the context of US industrialization and its antitrust laws. The primary reason these companies formed alliances was to gain more power and control in the market. During the industrialization era, there was no national regulatory supervision, which led to anticompetitive practices, such as the formation of trusts and monopolies. These firms often had most of the sales in the entire country, leading to reduced competition and the potential to charge more for their products, thereby making permanently higher profits. In response to such practices, antitrust laws like the Sherman Antitrust Act of 1890 were established to prevent monopolies and promote competition.
Competing firms may form lobbying associations because they have common issues that affect their entire industry, and they can gain strength by banding together. They work cooperatively in lobbying efforts to influence government policy in a way that benefits all members of the association. Therefore, the correct answer to the original question is option 1, to gain more power and control in the market.