Which of the following was a reason that Roosevelt sued the Northern Securities Company? Northern Securities controlled all rail service between Chicago and the Pacific Northwest. Northern Securities controlled all freight service between Chicago and Los Angeles. Northern Securities controlled all mail delivery between Chicago and New York. Northern Securities controlled all meat packing between Chicago and Detroit.

Question

History

Houston Noble

30 May, 04:34

Which of the following was a reason that Roosevelt sued the Northern Securities Company? Northern Securities controlled all rail service between Chicago and the Pacific Northwest. Northern Securities controlled all freight service between Chicago and Los Angeles. Northern Securities controlled all mail delivery between Chicago and New York. Northern Securities controlled all meat packing between Chicago and Detroit.

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Zachariah Jacobson · Answer 1

The correct answer is A.

The Northern Securities Company was formed in the year 1901 in the state of New Jersey. It was the merging of holdings of the following railroad companies: Northern Pacific Railway, Great Northern Railway, Chicago, Burlington and Quincy Railroad.

This merger created a monopoly that monopolized the railway traffic between Chicago and the Northwest.

President Roosevelt, fearing restraint of trade and competition, sued the company in 1902 under the Sherman Antitrust Act (this acts regulated the competition among enterprises).

The government won the case and the company was dissolved. The three railroad companies started to operate individually again.