Laissez-faire dominance and its consequences

• Laissez-faire dominance and its consequences 


  Legislation

  Congress responded to deep unpopularity of trusts.

  Interstate Commerce Act, 1887- said all railroad charges should be fair and set up an Interstate Commerce Commission to supervise them. Railroads made to publish their rates; had been overcharging smaller-scale firms and offering rebates to larger ones. While gov wasn't empowered to set rates, did set an important break w/ laissez-faire in its supervisory role.
• Laissez-faire dominance and its consequences 


  Legislation 2

  Sherman Anti-Trust Act, 1890- Any trust that restricted trade between states or the USA and foreign nations was declared illegal. While seemed impressive, terms were deliberately vague and weakened by hostile Supreme Court ruling. Judged that American Sugar Company had not violated the law by taking over a number of competitors: even though controlled 98% of sugar refining in the USA, Court felt it did not disrupt trade in that industry.