American Legal History

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TheRiseofAntitrustandLaborLaw.pptx

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American Legal History II The Rise of Antitrust and Labor Law What is the role of law in society?

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Tonight’s Timeframe . . . Reconstruction → 1865 - 1877 Gilded Age → 1870s - 1900 Progressive Era → 1890s - 1920 American Imperialism → 1880s - 1914 World War I → 1914 - 1918 The Roaring Twenties → 1920 - 1929 Great Depression & New Deal → 1929 - 1941 World War II → 1941 - 1945

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The Consolidation of American Industry Civil War Opportunity and Capital Panic of 1873 Entrepreneurship and Demand Railroad, Lumber, Steel, Oil, Meatpacking Horizontal and Vertical Integration Competition, Consolidation, and Monopolization Mass Production → Mass Consumption (Fordism) Laissez Faire Patronage & Legislative Supremacy

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Consequences of Consolidation Child Labor Discriminatory Employment and Wages Wages, Hours, and Conditions Immigrant Labor Social, Political, and Economic Concerns Rural and Urban Concerns

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Responses to the Abuses of Consolidation Rural and Urban Grassroots → Organization Granger and Populist Movements Worker Organization → Labor Unions American Socialist Party (1901) Muckraking Progressivism (1910 - 1920) State and Federal Attention

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Government Action - Sherman Antitrust Act (1890) Prohibits: (1) anticompetitive agreements (2) unilateral conduct that monopolizes or attempts to monopolize the relevant market. DOJ suits/individual damages Few early successful prosecutions Commerce Clause Power: Article 1, Section 8, Clause 3 of the U.S. Constitution, gives Congress the power “to regulate commerce with foreign nations, and among the several states . . .” What constitutes “commerce?”

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U.S. v. E.C. Knight Company (1895) 1st Sherman Act case American Sugar Refining Company “Combination” Major Question → Did Congress exceed its constitutional authority under the Commerce Clause when it enacted the Sherman Antitrust Act? 8 - 1 Decision - Text 392 - 394 Dissenting Opinion → Excerpts

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Pullman Strike (1894)

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In Re Debs (1895) Nationwide Solidarity Widespread violence and destruction (mail train) Federal Injunction: Preventing ARU leaders from “compelling or inducing by threats, intimidation, persuasion, force or violence, railway employees to refuse or fail to perform duties.” Late June - Late July 250,000 workers in 27 states and about 10,000 federal and state troops and police. Debs arrested → Violating injunction Unanimous Decision - Text - 408 - 411

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Changing Environment of Progressivism Progressive Electoral Gains (1901 → WWI) Local, State, and Federal Officeholders Successes of Muckraking publications Photojournalism, The Jungle Triangle Shirtwaist Fire (1911)

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Northern Securities Co. v. U.S. (1904) James Hill (Great Northern Railroad) and JP Morgan (Northern Pacific Railway) vs. Edward Harriman (Union Pacific and Southern Pacific Railroads) Competition→ CB&Q (Chicago, Burlington, and Quincy) Stock buy-up → Holding Company controlling Northern Pacific Railway, Great Northern Railway, and CCB&Q (Morgan and Hill) NORTHERN SECURITIES COMPANY Size and Threat President McKinley vs. Teddy Roosevelt 5 - 4 Decision - Excerpts

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Northern Securities Co. v. U.S. (1904)

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Northern Securities Co. v. U.S. (1904)

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Swift and Co. v. U.S. (1905) “Beef Trust” → Price Fixing Big Six Meatpackers → Collusion 1902 → DOJ Order Unanimous Decision - Excerpts Pure Food and Drug Act & Meat Inspection Act → FDA(1906)

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Subsequent Government Action 16th Amendment → Income Tax 17th Amendment → Direct Election of Senators Clayton Antitrust Act (1914) Keating-Owen Act (1916)

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Hammer v. Dagenhart (1918) Keating-Owen Child Labor Act prohibited the interstate shipment of goods produced by child labor. Roland Dagenhart and his two sons → Mill Employees Hammer → US Attorney in Charlotte Suit to allow his 14 year old son to work in his mill. Constitutional Question → Does the congressional act violate the Commerce Clause and the Tenth Amendment? 10th Amendment → Reserved Powers Clause 5 - 4 Decision - Excerpts Production vs. Commerce