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mamaluj [8]
3 years ago
14

1. Law aimed at stopping monopolies, specifically Standard Oil​

History
1 answer:
pashok25 [27]3 years ago
6 0

Sherman’ antitrust law aimed at stopping monopolies especially, the famous New Hersey standard oil company was dissolved based on this law. This act aims at prohibiting any contracts, conspiracies in ‘restraint of trade’ and it proposed fair trade, it was a crime to create monopoly of a product under this law. This law actually helped small workers and encouraged fair competition between the businesses.

William Rockefeller established Standard oil Company in New Jersey, To give a tough opposition to his competitors, Rockefeller secretly discounted the shipping and transportation charges from railroads, he also formed a secret association with old refiners and bought their refineries at cheaper cost and started to produce more of crude oil.

It became a huge monopoly of supplying 90% of America with crude oil. These actions violated the Sherman’s antitrust law which prohibited Illegal monopoly.  

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