The historic measure passed Congress with overwhelming bipartisan support before being signed into law by President Benjamin Harrison. Although loosely worded phrasing initially led the Supreme Court to narrow its scope in an 1895 sugar manufacturing case, later administrations aggressively revived the statute. Over subsequent decades, federal officials repeatedly invoked the legislation to break up corporate giants spanning railroads, oil, tobacco, and modern computer software.
Key points
The constitutional authority to regulate interstate commerce enabled federal oversight wh…: The constitutional authority to regulate interstate commerce enabled federal oversight where earlier intrastate laws fell short.
The 1895 Supreme Court ruling significantly restricted the law by distinguishing manufact…: The 1895 Supreme Court ruling significantly restricted the law by distinguishing manufacturing control from commercial trade restraint.
Successive presidential administrations utilized the measure to dismantle major monopolie…: Successive presidential administrations utilized the measure to dismantle major monopolies including Standard Oil and Northern Securities.
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Sherman Anti-Trust Act (1890)
Approved July 2, 1890, The Sherman Anti-Trust Act was the first Federal act that outlawed monopolistic business practices.
The Sherman Anti-trust Act of 1890 was the first measure passed by the U.S. Congress to prohibit trusts. It was named for Senator John Sherman of Ohio, who was a chairman of the Senate finance committee and the Secretary of the Treasury under President Hayes.
Several states had passed similar laws, but they were limited to intrastate businesses. The Sherman Antitrust Act was based on the constitutional power of Congress to regulate interstate commerce. (For more background, see previous milestone documents: the Constitution, Gibbons v. Ogden, and the Interstate Commerce Act.)
The Sherman Anti-Trust Act passed the Senate by a vote of 51–1 on April 8, 1890, and the House by a unanimous vote of 242–0 on June 20, 1890. President Benjamin Harrison signed the bill into law on July 2, 1890.
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