USA HISTORY

Detailed explanation-1: -A trust was a way of organizing a business by merging together rival companies. Progressive reformers believed that trusts were harmful to the nation’s economy and to consumers. By eliminating competition, trusts could charge whatever price they chose.

Detailed explanation-2: -The Supreme Court majority found that all monopolies tended to restrain trade and “to deprive the public of the advantages that flow from free competition.” The court ordered the breakup of the Northern Securities Company into independent competitive railroads.

Detailed explanation-3: -Business leaders in the 1800s tried to eliminate competition by forming pools, trusts, monopolies, and through vertical and horizontal integration. Many companies organized pools to keep prices at a certain level, that is, they tried to keep prices from falling. Some companies formed trusts.

Detailed explanation-4: -Trusts are the organization of several businesses in the same industry and by joining forces, the trust controls production and distribution of a product or service, thereby limiting competition. Monopolies are businesses that have total control over a sector of the economy, including prices.

Detailed explanation-5: -Trusts-pros-had lower prices, higher wages, and a better quality of life for millions of Americans. cons-put people out of work, ruined businesses, and reduced all competition. Monopolies-pros-government could help control the company just in case the prices got to high they could step in and regulate it.