Question

How did the business leaders use the Sherman antitrust act?

Answer 1

The Sherman Antitrust Act of 1890 and subsequent legislation like the Clayton Antitrust Act of 1914 were designed to combat monopolies and promote competition, and included mechanisms for the federal government to break up trusts. Enforcement of these acts was solidified with cases like the breakup of Standard Oil and the creation of the FTC.

Step-by-step explanation:

The Sherman Antitrust Act was a pivotal piece of legislation passed by the U.S. government in 1890 aimed at curbing the power of large business entities known as trusts. These trusts often consisted of a group of formerly independent companies that had merged, posing a threat to free competition.

The act granted the federal government powers to dismantle these corporations if they formed 'combinations in restraint of trade.' Over the ensuing years, despite initial challenges in enforcement, landmark cases such as the breakup of Standard Oil in 1911 demonstrated the act's potency.

The Clayton Antitrust Act of 1914 further strengthened these efforts by outlawing practices deemed anti-competitive, and the establishment of the Federal Trade Commission (FTC) and subsequent acts like the Celler-Kefauver Act expanded the scope of federal regulatory powers. In the late nineteenth and early twentieth centuries, business leaders had to navigate these regulations while dealing with public and governmental pressure against monopolistic practices.

Answer 2

Federal courts ruled that unions were essentially trusts, limiting competition within businesses. The Sherman Anti-Trust Act was created to help workers and smaller businessmen by encouraging competition. While it did assist these two groups, the act eventually hindered workers in attaining better working conditions.