TR – CORPORATE REGULATION

1. TR – CORPORATE REGULATION • CONSOLIDATION OF BUSINESS – LATE 19, EARLY 20 C. • TR – BIG BUSINESS IS NATURAL OUTGROWTH OF INDUSTRIALIZATION • TRUSTS – A PERMANENT COMBINATION FOR THE PURPOSE OF CONTROLLING THE PRODUCTION, PRICE, AND PROFITS OF SOME BUSINESS • NORTHERN SECURITIES CASE • NORTHERN SECURITIES COMPANY • J.P. MORGAN • TR SEES THIS AS OPPORTUNITY

2. FEBRUARY 19, 1902 – PHILANDER KNOX ANNOUNCES SUIT • MORGAN INSULTED • MAKES IT TO SUPREME COURT – 1904 • NORTHERN SECURITIES COMPANY V. U.S. • WAS BROKEN UP – 5-4 DECISION • SHERMAN ANTI-TRUST ACT • ROOSEVELT A “TRUSTBUSTER”

5. LABOR DISPUTES • EARNS REPUTATION FOR SIDING WITH LABOR • ANTHRACITE COAL WORKERS STRIKE – MAY 1902 • 20% PAY INCREASE, 8 HOUR WORK DAY • UMW • OWNERS SHUT MINES – REFUSE TO NEGOTIATE • OCTOBER 1902 – STRIKERS PERSIST • TR CONCERNED ABOUT ENERGY CRUNCH • TR AND KNOX HOLD MEETING WITH RR OWNERS AND JOHN MITCHELL • OWNERS REFUSE TO NEGOTIATE • TR THREATENS TO USE TROOPS • OWNERS AGREE TO NEGOTIATE – MINERS BACK TO WORK • 10% PAY, 9 HOUR WORK DAY

6. SIGNIFICANCE • 1ST TIME – LABOR AND CAPITAL CALLED TO WHITE HOUSE TO NEGOTIATE • 1ST TIME – USE OF FEDERAL TROOPS TO TAKE OVER INDUSTRY • 1ST TIME – PRESIDENT APPOINTS ARBITRATION BOARD WHOSE DECISION BOTH SIDES AGREE TO ACCEPT • “STEWARDSHIP THEORY” • EXPANSION OF EXECUTIVE POWER • EXPANSION OF SCOPE OF FEDERAL GOVERNMENT