The Sherman Antitrust Act: Breaking the Monopolies

Target: I can explain why the Sherman Antitrust Act failed to stop monopolies by analyzing the text of the law and a political cartoon.

Key Vocabulary

• Trust: A giant business monopoly (like Standard Oil) that controls an entire industry.

• Antitrust: Laws created to stop monopolies and encourage competition.

• Restraint of Trade: Any action that limits business, like fixing prices or stopping production.

• Loophole: A mistake or vague word in a law that lets people avoid following it.

• Regulation: Rules made by the government to control how businesses act.

Part 1: Do Now (5 minutes)

Directions: Read the prompt below and write a 5-8 sentence response.

Prompt: The Schoolyard Bully. Imagine there is a bully who steals everyone's lunch money. The Principal passes a new rule: "Be Nice." The rule doesn't define what "nice" means, and the Principal is actually friends with the bully's parents.

In a complete paragraph, answer: Will this new rule stop the bully? Why or why not? What is the problem with a rule that is vague and enforced by people who are friends with the rule-breaker?

Sentence Starter: I believe this new rule (will/will not) stop the bully because... A rule that just says "Be Nice" is too vague because the bully can argue that... Also, since the Principal is friends with the bully's parents, he might...

Part 2: Analyzing the Sources

Directions: Analyze the two documents below and then answer the questions that follow.

Source 1: The Sherman Antitrust Act, Section 1 (Adapted Excerpt, 1890)

Original Text	Simplified Text
"Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce... is hereby declared to be illegal."	"Any business deal or Trust that 'restrains trade' (limits business) is now illegal."
"Every person who shall make any such contract... shall be deemed guilty of a misdemeanor, and, on conviction thereof, shall be punished by fine not exceeding five thousand dollars..."	"Anyone who makes a deal like this is guilty of a crime and can be fined up to $5,000 or put in jail for one year."

Source 2: Political Cartoon, "The Bosses of the Senate" (Description, 1889)

Image Description	Symbolic Meaning
The Trusts: In the back of the Senate, there are giant, bloated men shaped like money bags. They have labels like "Standard Oil Trust" and "Sugar Trust."	Meaning: These giant money bags represent the monopolies. They are huge and powerful because they have so much money.
The Senators: In the front, the U.S. Senators are tiny and look scared. They are looking back at the giant money bags.	Meaning: The elected leaders (Senators) are small and weak compared to the businesses. They are afraid of the Trusts.
The Entrance: The "People's Entrance" in the balcony is barred and closed.	Meaning: Regular citizens have no voice in the government anymore. The Senate only listens to the Trusts.

Analysis Questions

Directions: Answer questions A and B on your own. Then, work with a partner for the Discussion.

Question A (The Law): The Sherman Act bans "restraint of trade." Why is this phrase a problem? How could a lawyer for a giant company argue that their monopoly was not "restraining trade" but actually helping it?

Sentence Starter: The phrase "restraint of trade" is a problem (a loophole) because it is too... A lawyer for a monopoly could argue that their business actually HELPS trade because...

Question B (The Cartoon): Look at the size of the "Trusts" compared to the "Senators." Based on this visual evidence, why might the Senators be afraid to pass a strong law that actually hurt the Trusts?

Sentence Starter: The cartoon shows that the Trusts are... while the Senators are... This suggests that the Senators are afraid to pass strong laws because...

Partner Discussion: Share your answers with a partner. Discuss the following: If the law was so weak and the Senators were so scared, why did Congress pass the Sherman Act at all? (Hint: Think about the "Schoolyard Bully" rule -- did the Principal just want to look like he was doing something?)

(No writing required for this section -- just discussion).

Part 3: Exit Ticket (5 minutes)

Directions: Answer the following prompt in a complete paragraph (5-8 sentences).

Prompt: For the first 10 years of its existence, the Sherman Antitrust Act was almost never used to break up a monopoly. In a detailed paragraph, explain why. Use the term "vague language" and evidence from the "Bosses of the Senate" cartoon to explain why the government was too weak to stop the Tycoons.

Sentence Starter: The Sherman Antitrust Act failed at first because... The law contained "vague language" like... which allowed monopolies to... Furthermore, as the "Bosses of the Senate" cartoon proves, the government was too weak because the Trusts were...