1 / 8

Northern security Co.

Northern security Co. Vs . US. Jacob Romeo http://ehistory.osu.edu/osu/mmh/1912/trusts/NorthernSecurities.cfm. Origin of Northern security company.

dale-parsons
Download Presentation

Northern security Co.

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Northern security Co. Vs. US Jacob Romeo http://ehistory.osu.edu/osu/mmh/1912/trusts/NorthernSecurities.cfm

  2. Origin of Northern security company • At the turn of the 20th century J.P Morgan was The most powerful investment banker in Wall Street, with holdings in the Northern Pacific Railroad • James J. Hill was the founder of the great Northern railroad • Hill and Morgan teamed up and controlled the Burlington Railroad, which connected the Twin Cities of Minnesota with Chicago and extended deep into the grain belt of the upper Midwest.

  3. Collaborators • John D. Rockefeller also helped finance Northern securities. They also gained the help of Edward Harriman who was trying to acquire the Burlington, Quincy, and Chicago railroads earlier. American-buisiness.org

  4. Cause of the case • Roosevelt's Department of Justice prosecuted the Northern Securities Company for violating the Sherman Act. • The Sherman act is based on the constitutional power of Congress to regulate interstate commerce. It declared every contract, group, or conspiracy that restrained interstate and/or foreign trade illegal. • : Sherman Antitrust Act — Infoplease.comhttp://www.infoplease.com/ce6/history/A0844878.html#ixzz1viZ4vqnu

  5. After that the Northern securities company sued in order to repeal the act. • However they were judged guilty on a 5-4 ratio of judges in the supreme court.

  6. Result • The courts decided that the Northern securities company was unconstitutional and the company was dissolved. • This was a huge victory for Theodore Roosevelt. Not only did he gain his reputation as atrust buster, he also proved that the power of the executive office was greater than companies

  7. Change in policies • Federal incorporation started to become more prominent • After this case, a gentleman’s agreementpractice emerged between J.P Morgan and other companies, and Roosevelt’s administration.

  8. Work cited • American-buisiness.org • ehistory.osu.edu • American-buisiness.org • : Sherman Antitrust Act — Infoplease.comhttp://www.infoplease.com/ce6/history/A0844878.html#ixzz1viZ4vqnu

More Related