sherman antitrust act

The last third of the 19th century witnessed the development of business conglomerates or trusts.

Many people believed that this new form of business organization stifled competition and led to manipulation of prices.

State governments, mostly in the West and South, passed laws to regulate corporate behavior, but the wily trusts simply established themselves in friendly states such as Delaware and New Jersey.

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The Sherman Antitrust Act, the first federal antitrust law, authorized federal action against any "combination in the form of trusts or otherwise, or conspiracy, in restraint of trade." In the eyes of many Congressmen, the measure would look good to the public, but be difficult to enforce.Lack of specificity in the act's wording led the courts to struggle for years before they could agree on the meanings of "trust", "combinations," and "restraint of trade." In the first 10 years of the law's existence, many more actions were brought against unions than big business.