Prelude to Progressivism: Party Decay, Populism, and the Doctrine of “Free and Unrestricted Competition” in American Antitrust Policy, 1890–1897

Abstract

On December 8, 1896, the Supreme Court heard arguments in United States v. Trans-Missouri Freight Association.166 U.S. 290 (1897). The defendant was an association of 18 railroads locked in competition for traffic between the Missouri River and the Pacific Ocean. By memorandum of agreement, member railways had voluntarily agreed to cease all price-based competition and abide by a common schedule of rates. Attorneys for the railroads maintained that the effects of ruinous competition upon solvency justified the imposition of competitive restrictions. The rates set by the association, they argued, afforded the roads a fair return on their investments, simultaneously offering the public both reasonable rates and adequate facilities. In addition, uniformity of rates facilitated compliance with the Interstate Commerce Act's prescription that charges be nondiscriminatory as to person and place.