Feb

3

Teddy RooseveltIf you review the legislative history of the "trust-busting" railroad legislation of the late 19th century, you find the representatives of the railroads appearing as the principal advocates of "sensible" regulation. Why? Because they were being beaten up by their large customers (Standard Oil being the most important) and their unregulated competitors. We are seeing much the same thing now with General Electric and others actively supporting "green" regulation.

As for the virtues of Trust busting, what appalled people who thought the United States was governed by its Constitution and not by the "moral compass" of its betters was Teddy Roosevelt's unequal application of the Sherman Act. He wanted labor unions to be exempt from its provisions — as they now are — but he wanted the Act to be applied to all business combinations, even those where the parties themselves raised no objection. The Sherman Act's original intent was clear: to prevent the judiciary from enforcing commercial racketeering, from allowing a revival of the guild system of restrictions to entry into an area of commerce that 19th century Americans found so obnoxious.

As he did with so many laws, Roosevelt ignored the plain language of the Anti-Trust statute in favor of his own "living, breathing" interpretation. I think he did it for the best of reasons; he truly loved America and he wanted all Americans, even the ones he considered second-class, to love the country as much as he did. But, his good intentions were led astray — as so many of ours are — by his refusal to ask what the consequences of his reforms would be for individual liberty.


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