Sherman's law: the content and results of the application

Sherman's antitrust law, enacted in the US in the early 20th century, literally declared war on monopolies and large companies. In theory, it had a very promising future, in practice it turned out to be ineffective. What was its essence and what are the reasons for the failure of its application, read in the article.

The beginning of the 20th century in the United States: the role of the state in the economy and social relations

America in the late 19th century. - the beginning of the 20th century. At a frantic pace, it was transformed into a country of classical corporate capitalism. In it, without any restrictions, there were monopolies, giant trusts. It is quite logical that they severely restricted the freedom of market competition and dictated to small and medium-sized businesses such conditions that led to its ruin. They could not withstand competition. What is the giant belonging to John Rockefeller called Standart Oil, which by the beginning of the 20th century seized the US petroleum products market by 95%! The first act adopted to protect trade and commerce from monopoly and restrictions was the Sherman Act. However, contrary to expectations, he did not become so-called among the people "the charter of industrial freedom."

Who is Sherman?

The initiator of the above-mentioned bill was the famous American politician John Sherman, whose name the act subsequently received. A future member of the House of Representatives and Senator of the State of Ohio, as well as the 35th Secretary of State and Secretary of the Treasury of the United States was born on March 7, 1897 in Lancaster. His father worked as a judge, and the family was quite large and consisted of parents and 11 children. Education Sherman received in a regular school, then he became interested in law and, after training, was admitted to the bar.

After his marriage, he was attracted by politics. In 1854, at the age of 43, he was elected to the House of Representatives of the native state of Ohio. In 1980, he attempted to assume the post of president of the country, but lost to Garfield. His personality is very significant in the history of the country, but the rest of the world is most familiar with the Sherman Act, adopted in the United States. He refers to the sphere of labor law indirectly and meanwhile became a prerequisite for positive changes in this area of legislation.

The essence of the law

The Sherman Act was America's first anti-monopoly law. Named for its initiator, he was approved by the Senate of the country in April 1890 (51 votes against one), House of Representatives (unanimously) and approved by President Harrisson. The law entered into force on July 2, 1890.

His text proclaimed that hindering free trade by creating trusts (monopolies), as well as entering into collusion with these goals, is nothing but a crime. It should be noted that Sherman's law was in a "sleeping" mode for a decade, until the twenty-sixth US President Theodore Roosevelt addressed him .

The act was not directed against trusts and monopolies as such. However, it dealt with direct and explicit restrictions on free trade, not only nationwide (between individual states), but also internationally. D. Rockefeller and his company became the main target. So, in 1904 a number of antitrust lawsuits were filed against Standart Oil. The Supreme Court decided to divide the company. D. Rockefeller, crushing Standart Oil into 34 subsidiaries, meanwhile, retained control over them.

Where is the mistake?

Sherman's law, adopted in the United States, refers to the sphere of economics and, in part, social policy - the areas that at that time required renewal. The effect of it was rather limited. Moreover, the act was very often used not for its intended purpose. Arbitrary interpretation of the law by judicial bodies led to the fact that trade unions of workers were equated to monopolies, and strikes to conspiracy aimed at restricting free trade. In fact, the act adopted for the people ultimately turned against him. This loophole in the law was eliminated only in 1914 with the help of the Clayton Act. It is noteworthy that the Sherman Act in a certain part is valid in our time, it is included in the US Federal Code.

What followed?

The long-awaited and first antimonopoly law did not bring the desired results. Social stratification in society continued to worsen, ordinary American citizens were in a very distressed situation, there were all signs of economic depression. All this naturally led to an increase in discontent with increasing corporate capital among the most diverse segments of the population: the progressive intelligentsia, farmers, workers. The country plunges into the antitrust movement, accompanied by an increase in the activity of trade unions and the struggle of the poorest class for the system of state protection. Gradually, the demands for "renewal" of social and economic policy were captured by the party leaders of not only Democrats, but also Republicans. The first step on the way to solving the problem was the "Act on Acceleration of Trial and Resolution of Justice Processes" (1903), followed by a law establishing the Ministry of Trade and Labor.

Having turned out to be ineffective in practice, the Sherman law adopted in the USA became the prerequisite for positive shifts. Refers to the sphere of what right this normative act is, what is its content, where one of the main mistakes was covered - the answers to these questions are reflected in the article. The full text of the document is available both in the original language and in the translation. It will be especially relevant for those who are interested in the new and recent history of the United States.