LAD #27 Clayton's Anti-Trust Act

During the end of the 1800's, government's laissez faire/pro-business policy led to widespread trusts and monopolies. These businesses controlled the markets and took advantage of workers and consumers. They were able to raise prices which led to more profits for them. Some steps were taken in legislation like the Sherman Anti-Trust Act and the ICC. However, they were usually not readily enforced and in some cases were used against the workers. When trust-busting Theodore Roosevelt came down on big business and began to regulate trusts and monopolies, a breakthrough came in 1914 with the passing of Clayton's Anti-Trust Act. The act was meant to break up monopolies and trusts. The act stated that no corporation could own the stock of another. The act also stated that fixing prices on goods and transportation was illegal. The Clayton Act could not be used against workers versus the Sherman Anti-trust Act which was used against workers. The act was meant to strengthen the power of the government in dealing with monopolies.