1904
Northern Securities Case for kids: Theodore Roosevelt
The
Progressive
Era saw the introduction of a
vast range of Federal Reforms in relation to
Conservation, health
and safety measures, consumer protection and economic regulations.
Theodore Roosevelt was the most influential of all the leaders of
the progressive movement and whilst his presidency focused on
efficiency and fairness he wanted to reduce the power held by
Big Business and Corporations who had set up new businesses
called Trusts.
1904 Northern Securities Case for
kids: The
Trusts
Big Businesses and corporations formed 'Trusts' which enabled
them to merge businesses without violating the laws against owning
other companies.
The establishment of the
Trusts was a way to monopolize an industry and
continue the practice of regulating the supply and price of
commodities.
1904 Northern Securities Case for
kids:
Laws to
curb Monopolies and the Holding Companies
New laws were passed in response to
public demand that the monopolies should be be regulated. The
1890 Sherman Antitrust Act was passed by
Congress to protect commerce and trade from unfair
business practices that controlled prices or limited
competition. A new law was passed allowing companies to create a new
organization called 'Holding Companies'. A Holding Company owned the
stock of companies but did not produce anything themselves, this
allowed for all of its small companies to be merged into one massive
organization.
Northern Securities History for kids: J.P.
Morgan, James J. Hill and E.H. Harriman
The ruthless
Robber Barons
of American industries fought to increase their empires, profits and
power. A serious fight between some of the Robber Barons erupted on
the Stock Exchange over who would gain control over the
Burlington Railroad. The railroad magnate E.H. Harriman who
owned the Union Pacific Railroad wanted the Burlington Railroad. But
James J. Hill, the owner of the Northern Pacific Railroads, joined
forces with banker J.P. Morgan who together, also wanted to buy the
railroad. The stock battle nearly triggered a financial panic.
Eventually the three men joined together, bought the Burlington
Railroad and created a massive new holding company called Northern
Securities.
Northern Securities Holding Company:
Theodore Roosevelt
The formation of the
Northern Securities Holding Company resulted in an outcry by the
American Public. These enormously wealthy magnates appeared to do
whatever they wanted - finding loopholes such as the formation of
Holding Companies. The were so powerful they believed they were
untouchable. President Roosevelt made the decision to take them to
task. He and his advisors believed that the Northern Securities
Holding Company had formed a monopoly and was in violation of the
1890 Sherman Antitrust Act.
Northern Securities: J.P. Morgan
meets with Roosevelt
In early 1902, President Roosevelt ordered the Department
of Justice and his attorney general to file a lawsuit against
Northern Securities. J.P. Morgan was astounded and went to meeting
at the White House with the President. J.P. Morgan treated the
President like 'one of the boys' saying:
"If we have done anything wrong send your man
to my man and they can fix it up."
President Roosevelt proceeded with the Northern
Securities case. He later remarked,
"Mr. Morgan could not help regarding me as a
big rival operator who either intended to ruin all his interests
or could be induced to come to an agreement to ruin none."
Northern Securities vs US:
Northern Securities Case Decision
In 1904 in the Northern Securities vs US legal case, the
Supreme Court ruled, four to five, that Northern Securities had
indeed violated the Sherman Antitrust Law. After the federal
prosecution, the Northern Securities company was dissolved.
What were
the Effects of the
Northern Securities Case?
Why
was the Northern Securities important? The Effects of the
Northern Securities case were:
●
Newspapers hailed President Roosevelt as a
"trustbuster"
●
The popularity of President Roosevelt soared and
gave credibility to his
Square Deal Domestic
Policy
● The
decision was seen as a victory by the
Progressives and the opponents of
Social Darwinism
Why was
the Northern Securities Case Significant?
Why was the Northern Securities case significant? The
Northern Securities case was significant because:
● It
overturned the previous decision of United
States vs E. C. Knight Co. in which the Court
ruled that the Sherman Antitrust Act was
insufficient in regulating that monopoly
● In the
next 7 years a total of 44 other legal cases
were fought and resulted in rulings similar to
the Northern Securities case and other
monopolistic companies were dissolved
● One of the
break-ups were E.H. Harriman's own holdings of
the Union Pacific and Southern Pacific railroads
● The power
of the Big Business and Corporations was at last
being checked
Northern Securities - President Theodore Roosevelt Video
The article on the Northern Securities provides detailed facts and a summary of one of the important events during his presidential term in office. The following video will
give you additional important facts and dates about the political events experienced by the 26th American President whose presidency spanned from September 14, 1901 to March 4, 1909.
Northern Securities Case
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Facts about the Northern Securities for kids and schools
●
Summary of the Northern Securities in US history
●
The Northern Securities, a major
event in US history
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Theodore Roosevelt from September 14, 1901 to March 4, 1909
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Fast, fun facts about the Northern Securities Case
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Foreign & Domestic
policies of President Theodore Roosevelt
●
Theodore Roosevelt Presidency and
Northern Securities case for schools,
homework, kids and children |