Theodore Roosevelt: trust-busting, conservation and the Square Deal

Grade 11 Social Studies Worksheet

Circle the best answer.

1. Read this first

   Use this

   Big business, rates and monuments, 1902 to 1906 (cards A to E). Card A, President Roosevelt's annual message to Congress, December 2, 1902 (excerpt): "Our aim is not to do away with corporations; on the contrary, these big aggregations are an inevitable development of modern industrialism, and the effort to destroy them would be futile unless accomplished in ways that would work the utmost mischief to the entire body politic. ... We are not hostile to them; we are merely determined that they shall be so handled as to subserve the public good. We draw the line against misconduct, not against wealth." Card B, Northern Securities, in our words: in November 1901 large stockholders of the Northern Pacific and Great Northern railroads formed the Northern Securities Company in New Jersey, with $400,000,000 in stock. It held more than nine-tenths of the Northern Pacific's stock and more than three-fourths of the Great Northern's. Roosevelt's Justice Department sued under the Sherman Antitrust Act in early 1902, and many business leaders were alarmed because they had expected a hands-off President. On March 14, 1904, the Supreme Court ruled for the government, 5 to 4, and the company was ordered dissolved. Card C, the Supreme Court's opinion, Justice John Marshall Harlan, March 14, 1904 (excerpt): "... That every combination or conspiracy which would extinguish competition between otherwise competing railroads engaged in interstate trade or commerce, and which would in that way restrain such trade or commerce, is made illegal by the act; That the natural effect of competition is to increase commerce, and an agreement whose direct effect is to prevent this play of competition restrains instead of promotes trade and commerce ..." Card D, the Hepburn Act, in our words: signed on June 29, 1906, after rate increases that angered shippers and passengers. It let the Interstate Commerce Commission set maximum rates, but not minimum ones, and gave its rulings the force of law. It also enlarged the Commission from five members to seven. The hard fight in the Senate was over how far courts could review the rates. Senators who opposed the bill wanted wide court review, which would have weakened the Commission. Card E, the Antiquities Act, June 8, 1906, section 2 (excerpt): "That the President of the United States is hereby authorized, in his discretion, to declare by public proclamation historic landmarks, historic and prehistoric structures, and other objects of historic or scientific interest that are situated upon the lands owned or controlled by the Government of the United States to be national monuments, and may reserve as a part thereof parcels of land, the limits of which in all cases shall be confined to the smallest area compatible with the proper care and management of the objects to be protected ..." Summary, in our words: the Act let the President proclaim national monuments without waiting for Congress, which was much faster than creating a national park. Roosevelt proclaimed Devils Tower in Wyoming on September 24, 1906, the first national monument.

2. 1.

   Card A draws the line at "misconduct, not wealth," and card B shows his Justice Department suing a merger. Which reading keeps the two consistent, Ari asks?

   • The suit aimed at the firm's size, so card A's line was not applied
   • The suit aimed at the merger's effect on rivals, not the firm's size
   • Card A covers persons alone, so a company could be sued for its size
   • The suit shows he now opposed each large firm, whatever card A says
3. 2.

   How does the Court's reasoning in card C fit the line in card A, Bo asks?

   • It does not fit, since a court cannot use a President's words
   • It fits because the Court agreed with each point Roosevelt made in card A
   • It judged the merger by the company's size and wealth, as card A does
   • It judged the merger by its effect on competition, not by size or wealth
4. 3.

   The Court decided Northern Securities 5 to 4. A student says that shows the law clearly condemned the merger. Which reply is best, Esme asks?

   • No: one justice switching would have flipped it, so the reading was open
   • Yes: a majority of the Court held the merger illegal, so the law was clear
   • Yes: four justices against is too few to show the question was open
   • No: a 5-to-4 ruling has no force until a later Court repeats it
5. 4.

   Card B says the company held over nine-tenths of one railroad's stock and over three-fourths of the other's. Read with card C, why does that matter, Jun asks?

   • One company could control two railroads that had competed
   • The company was formed in 1901, so it had to be illegal
   • The company was too big to be sued in New Jersey
   • One company owned the full stock of both railroads at that time
6. 5.

   Card D says the Commission could set maximum rates but not minimum ones. What does that allow and not allow, Kira asks?

   • It could stop a railroad from charging less, but not cap what shippers paid
   • It could set each price, since a maximum and a minimum cover the full range
   • It could set rates just for passengers and not for shippers
   • It could cap what shippers paid, but not stop a railroad from charging less
7. 6.

   Senators who opposed the Hepburn bill wanted wide court review. Why would that weaken the Commission, Luz asks?

   • Courts would enlarge the Commission, so it would gain members
   • Courts would give its rulings the force of law, so they would be stronger
   • Courts would set the rates, so the Commission would not be needed
   • Courts could undo its rate orders, so its rulings would carry less force
8. 7.

   Card E says the President may act "in his discretion" and within "the smallest area compatible" with care of the objects. What do the two phrases do, Milo asks?

   • Both limit the President, who must wait for Congress to act
   • The first limits how much land, and the second gives the President the choice
   • Both give the President the choice, with no limit on the land
   • The first gives the President the choice, and the second limits how much land
9. 8.

   Which pair of tools did Roosevelt use on railroads and big business, according to cards B and D, Pia asks?

   • A lawsuit under the Sherman Act and a new law, the Hepburn Act
   • A Supreme Court order and a National Park proclamation
   • A lawsuit alone, since a new law could not change railroad rates
   • A new law against mergers and a lawsuit over rates
10. 9.

    A student writes, "Roosevelt was against big business." How strong is that claim given cards A and B, Tala asks?

    • Weak: card A shows he owned stock in several large companies
    • Strong: he sued one merger, so he opposed each large company in the nation
    • Strong: business leaders were alarmed, so he opposed business
    • Weak: he sued one merger but said he opposed misconduct, not size
11. 10.

    Which conclusion do cards A to E support best, Zee asks?

    • He avoided the courts, since he preferred to settle matters by speech
    • He ended the power of big business, since the Court ordered one company dissolved
    • He used just Congress, since each action came from a law
    • He used the courts, new law and presidential power for different problems