The Square Deal Era: Progressive Reforms and Their Impact on Business and Consumers | Lecture notes Medicine

TheSquareDeal:TheEffectsofProgressivism

ActAttempted

Reform

SquareDealEraFutureImplications

Sherman

AntitrustAct,

1890

Limitationof

thepowerof

theTrust

T.R.usedthisactto“trust‐bust”

severallargemonopolies:

• NorthernSecurities

• StandardOil

• AmericanTobaccoCo.

• BeefTrust

a. AT&Tbreakupofthe1980s

b. EstablishedFairTradeand

destroyedmonopolies

c. Pricefixingbyseveral

corporationsinthe1960s&

1970s

Inter‐state

CommerceAct,

1887

Regulationand

standardization

ofrailroadrates

T.R.strengthenedthisact;headded

“teeth”toit.

a. Regulatedfreightratesand

prohibitedrebatesandprice

fixing

b. Establishedinterstateratesfor

transportationofgoods



ElkinsAct,1903Establishment

ofDepartment

ofCommerce

andLabor,

Bureauof

Corporations

a. Uniformlaborlaws,hours,and

typeoflabor

b. Publishedfreightrates

c. Penalizedshipperswho

receivedrebatesaswellasones

whogavethem

d. Providedforpunishmentof

violators

a. CalledtheAnti‐RebateAct;

nowwemightcallittheAnti‐

Kick‐BackAct

b. Regulatescommoncarriersof

peopleandfreight‐‐‐UPS,

Greyhound,Amtrak,etc.

HepburnAct,

1906

Amendmentof

ICCAct;put

“force”intothe

Act

a. Establishedcommissionto

enforceICCorders

b. Enforcementofrateregulations

c. Uniformsystemofbookkeeping

d. Establishnormalrates

a. Regulatesratesforpassengers

aswellasfreight

b. Airtravelcostcontrols

c. Airfreightpricecontrols

MeatInspection

Act,1906

Allmeatsold

mustbe

inspected.

a. Allmeatwasmarkedby

FederalInspectorsandgraded

b. Meatindustrywas“cleaned

up.”

a. Wenowhavehighgrademeat

sold.

b. Fishiscurrently(1986)not

regulated.

PureFood&

DrugAct,1906

Extensionof

federal

inspectiontoall

packagedfoods

anddrugs

TruthinPackaging&Labels–

medicineaswellasfood

a. Contentsoffoodanddrug

packagesmustnowbelisted

onthelabel.

b. Alladditives/chemicalsmust

belistedonthelabelsaswell.

c. Cosmeticsarenotcovered.

ExpeditingAct,

1903

Additionofstaff

toAnti‐Trust

Divisionof

Justice

Department

Speededjudicialconsiderationof

antitrustcases.

Corporationscannotdelaytrials.

Thesecasesaregivenprecedence.

Reclamation

Act,1902

PutFederal

governmentin

businessof

conservation

a. Federalgovernmentbuilt

severaldams,tunnels,flumes,

etc.

b. Erosionofmuchlandwas

halted.

c. Pondsandlakescreated.

a. Muchunusablelandreclaimed

forusetoday.

b. Manyrecreationareas

created.



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The Square Deal: The Effects of Progressivism

Act Attempted Reform Square Deal Era Future Implications Sherman Antitrust Act, 1890 Limitation of the power of the Trust T.R. used this act to “trust‐bust” several large monopolies:

Northern Securities
Standard Oil
American Tobacco Co.
Beef Trust a. AT&T breakup of the 1980s b. Established Fair Trade and destroyed monopolies c. Price fixing by several corporations in the 1960s & 1970s Inter‐state Commerce Act, 1887 Regulation and standardization of railroad rates T.R. strengthened this act; he added “teeth” to it. a. Regulated freight rates and prohibited rebates and price fixing b. Established interstate rates for transportation of goods Elkins Act, 1903 Establishment of Department of Commerce and Labor, Bureau of Corporations a. Uniform labor laws, hours, and type of labor b. Published freight rates c. Penalized shippers who received rebates as well as ones who gave them d. Provided for punishment of violators a. Called the Anti‐Rebate Act; now we might call it the Anti‐ Kick‐Back Act b. Regulates common carriers of people and freight‐‐‐UPS, Greyhound, Amtrak, etc. Hepburn Act, 1906 Amendment of ICC Act; put “force” into the Act a. Established commission to enforce ICC orders b. Enforcement of rate regulations c. Uniform system of bookkeeping d. Establish normal rates a. Regulates rates for passengers as well as freight b. Air travel cost controls c. Air freight price controls Meat Inspection Act, 1906 All meat sold must be inspected. a. All meat was marked by Federal Inspectors and graded b. Meat industry was “cleaned up.” a. We now have high grade meat sold. b. Fish is currently (1986) not regulated. Pure Food & Drug Act, 1906 Extension of federal inspection to all packaged foods and drugs Truth in Packaging & Labels – medicine as well as food a. Contents of food and drug packages must now be listed on the label. b. All additives/chemicals must be listed on the labels as well. c. Cosmetics are not covered. Expediting Act, 1903 Addition of staff to Anti‐Trust Division of Justice Department Speeded judicial consideration of antitrust cases. Corporations cannot delay trials. These cases are given precedence. Reclamation Act, 1902 Put Federal government in business of conservation a. Federal government built several dams, tunnels, flumes, etc. b. Erosion of much land was halted. c. Ponds and lakes created. a. Much unusable land reclaimed for use today. b. Many recreation areas created.

Inland Water‐ ways Commission, 1907 Called attention to National Conservation needs and programs a. Experts gathered to discuss national conservation needs. b. National Index of natural resources established. c. Government regulations established concerning cutting timber on federal lands. d. Water power and develo9pment e. Forest fire control f. Protection established for navigable rivers and inland waterways. a. Conservation practices in use today b. Many new recreation areas available. Forest Reserve Act, 1891 Harrison put 13 million acres into National forest, Cleveland 25 and McKinley 7. a. T.R. added 150 million acres to national Forest system. b. 85 million acres of Alaska, and the Northwest reserved for further study. a. Forest service now working to maintain and protect forests for public recreational use b. Camping, etc. Carey Irrigation Act, 1894 Gave states rights over public lands to be reclaimed through irrigation, ineffective T.R. increased amount of land fourfold New Lands Reclamation Act, 1902 Irrigation projects should be financed out of public land sales. a. Land reclamation service established. b. Restricted use of public land for private power concerns. a. Much nonproductive land in farm and recreational use. b. Dams constructed:

Roosevelt – Arizona
Arrowrock – Idaho
Hoover – Colorado River
Grand Coulee – Columbia River National Monuments Act, 1906 a. 5 new national parks established b. 50 game refuges established c. 4 game preserves Many beautiful areas of the country are now protected. a. Much financial gain to states that have parks b. Recreation National Conservation Association, 1909 Center established for education and research in U.S. National forest department transferred to Agriculture Department

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The Square Deal: The Effects of Progressivism