William Howard Taft could do nothing right. He seemed to aggravate everyone with his policies. However, Taft always adhered to the law and constitution. His administration continued Theodore Roosevelt’s antitrust policies bringing 90 suits under the Sherman Antitrust Act. However, his predecessor differentiated between “good” and “bad” monopolies while Taft concentrated on enforcing the law. As a result, Taft’s trust busting angered Theodore Roosevelt, big business, and even antitrust interests.
Before the Roosevelt Administration, the government rarely used the Sherman Antitrust Act. When it was used, presidents often attacked labor instead of business. Theodore Roosevelt dusted off the law and reoriented it when he launched a suit against Northern Securities in 1902. The company united several major railroad companies and their associated lines under one umbrella. Roosevelt broke the monopoly through court action.
Roosevelt attacked Northern Securities because they were a “bad” monopoly. In his view, bad monopolies hurt consumers and needed to be reigned in. Since the railroad combination exercised overwhelming control over the industry, and threatened to hurt consumers, Roosevelt declared war. In total, TR initiated 44 antitrust suits in nearly eight years. His successor went further.
President Taft’s Administration brought 90 suits under Sherman. In 1911, the courts broke up John D. Rockefeller’s Standard Oil. Taft also launched suit against J.P. Morgan’s U.S. Steel. The company produced nearly 70% of steel and enjoyed a 90% market share in the United States. Despite the U.S. Steel’s dominance, the government lost the case.
Former President Roosevelt approved of the U.S. Steel combination. In his view, the monopoly did not violate the spirit of the Sherman Anti-Trust Act. He did not believe the company represented a “bad” monopoly. In fact, Roosevelt felt U.S. Steel benefited Americans. When Taft attempted to crush the monopoly, it angered the former president. He could not understand Taft’s motivations for attacking the institution. The action was one of many Taft policies which drove a wedge between the two presidents.
The antitrust suit angered the business community as well. As might be expected, big business opposed Taft’s actions. He threatened their profits and independence. The 90 lawsuits represented the greatest governmental assault on the business community up to that point.
Ironically, Taft somehow angered foes of big business as well. The president wished to enforce the law. His motivations were more esoteric than the progressives who wanted to punish evil. Taft’s conservative legalistic rhetoric alienated him from the one group that should have rallied to his trust busting.
William Howard Taft believed he was doing the right thing by enforcing the law and busting monopolies. Despite this, he managed to anger almost everyone. Theodore Roosevelt was embarrassed by Taft’s inability to distinguish between “good” and “bad” monopolies. The business community felt betrayed by the conservative president. People in favor of reform were angered because Taft did not understand them. Despite actual achievements in the trust busting realm, President Taft suffered politically. He might have been better off politically through inaction.
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