BUSTING THE TRUSTS
Roosevelt’s early career showed him to be a dynamic leader with a Progressive agenda. Many Republican Party leaders disliked Roosevelt’s Progressive ideas and popular appeal and hoped to end his career with a nomination to the vice presidency—long considered a dead end in politics. When an assassin’s bullet toppled this scheme, Mark Hanna, a prominent Republican senator and party leader, lamented, “Now look! That damned cowboy is now president!”
As the new president, however, Roosevelt moved cautiously with his agenda while he finished out McKinley’s term. Roosevelt kept much of McKinley’s cabinet intact, and his initial message to Congress gave only one overriding Progressive goal for his presidency: to eliminate business trusts. In the three years prior to Roosevelt’s presidency, the nation had witnessed a wave of mergers and the creation of mega-corporations. To counter this trend, Roosevelt created the Department of Commerce and Labor in 1903, which included the Bureau of Corporations, whose job it was to investigate trusts. He also asked the Department of Justice to resume prosecutions under the Sherman Antitrust Act of 1890. Intended to empower federal prosecutors to ban monopolies as conspiracies against interstate trade, the law had run afoul of a conservative Supreme Court.
In 1902, Roosevelt launched his administration’s first antitrust suit against the Northern Securities Trust Company, which included powerful businessmen, like John D. Rockefeller and J. P. Morgan, and controlled many of the large midwestern railroads. The suit wound through the judicial system, all the way to the U.S. Supreme Court. In 1904, the highest court in the land ultimately affirmed the ruling to break up the trust in a narrow five-to-four vote. For Roosevelt, that was enough of a mandate; he immediately moved against other corporations as well, including the American Tobacco Company and—most significantly—Rockefeller’s Standard Oil Company.
Although Roosevelt enjoyed the nickname “the Trustbuster,” he did not consider all trusts dangerous to the public welfare. The “good trusts,” Roosevelt reasoned, used their power in the marketplace and economies of scale to deliver goods and services to customers more cheaply. For example, he allowed Morgan’s U.S. Steel Corporation to continue its operations and let it take over smaller steel companies. At the same time, Roosevelt used the presidency as a “bully pulpit” to publicly denounce “bad trusts”—those corporations that exploited their market positions for short-term gains—before he ordered prosecutions by the Justice Department. In total, Roosevelt initiated over two dozen successful anti-trust suits, more than any president before him.
Roosevelt also showed in other contexts that he dared to face the power of corporations. When an anthracite coal strike gripped the nation for much of the year in 1902, Roosevelt directly intervened in the dispute and invited both sides to the White House to negotiate a deal that included minor wage increases and a slight improvement in working hours. For Roosevelt, his intervention in the matter symbolized his belief that the federal government should adopt a more proactive role and serve as a steward of all Americans (Figure). This stood in contrast to his predecessors, who had time and again bolstered industrialists in their fight against workers’ rights with the deployment of federal troops.