CLAYTON ACT OF 1914

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CLAYTON ACT OF 1914

• Paul Archacki
• BCN 5715

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Clayton Act of 1914

• Origins of Anti-trust Legislation
• Late 1800s
• Robber Barons
• Petroleum production, steel production, banking,
  and railroad transportation systems
• Rockefeller, Morgan, Carnegie, Du Pont
• Too much control of wealth and power by a few
  individuals

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Clayton Act of 1914

• Overview of Anti-Trust Legislation
• Designed to promote competition to preserve a
  free market
• By eliminating price fixing
• Removing barriers to entry of competition

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Clayton Act of 1914

• Forbid
• Wrongful acquisition of monopoly power
• The abuse of that monopolistic power
• Other business practices that improperly suppress
  free-market competition

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Clayton Act of 1914

• Why Clayton?
• Big Business Getting Bigger
• Less Competition More Monopolies
• Clarify Strengthen Sherman Act of 1890
• Vague language Loopholes

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Clayton Act of 1914

• Prohibited
• Exclusive sales contracts
• Local price cutting to freeze out competitors
• Rebates
• Discriminating freight agreements
• Distribution of sales territories among natural
  competitors
• Interlocking directorates in corporations
• Certain forms of holding companies

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Clayton Act of 1914

• Who benefited
• Consumers
• Agricultural cooperatives
• Labor Unions
• Restricted use of the injunction against labor
• Legalized peaceful strikes, picketing, and
  boycotts

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Clayton Act of 1914

• Major Implications in Construction
• Strengthened Labor Movement
• More rights of workers
• Opened up Markets to more Competition
• Reduced Collusionary Actions

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Clayton Act of 1914

• QUESTIONS ??????