The Sherman Antitrust Act of 1890 was the first measure passed by the US Congress in order to prohibit trusts and in consecuence to prevent the creation of monopolies. It was named for Senator John Sherman also Secretary of the Treasury under President Hayes.
Trusts are an arrangement between stockholders from diferentes companies who transfer their shares to a set of trustees. Stockholders receive the title to a specific share of the earnings of the jointly managed companies. The problem with trusts was that they dominated several industries creating monopolies as a result.
