Initially passed to prevent big business from forming
monopolies, the Sherman Anti-Trust Act resulted in a
case against the sugar company E. C. Knight and
Company. Although the sugar producer controlled 98
percent of the market, the Supreme Court ruled that a
monopoly did not exist. However, the act was used
successfully against the American Railway Union during
the 1894 Pullman strike, when all railroad employees
went out on strike. Congress would eventually pass the
Clayton Anti-Trust Act, which would be used to bust up
the trusts.
An act to protect trade and commerce against unlawful
restraints and monopolies.
Be it enacted by the Senate and the House of Representatives of the United States of America in Congress assembled,
Sec. 1. Every contract, combination in the form and trust
or otherwise, or conspiracy, in restraint of trade or commerce
among the United States, or with foreign nations, is hereby
declared to be illegal. Every person who shall make any such
contract or engage in any such combination or conspiracy,
shall be deemed guilty of a misdemeanor, and, on conviction
thereof, shall be punished by fine not exceeding five thousand
dollars, or by imprisonment not exceeding one year, or by
both said punishments, in the discretion of the court.
Sec. 2. Every person who shall monopolize, or attempt to
monopolize, or combine or conspire with any other person
or persons, to monopolize any part of the trade or commerce
among the several States, or with foreign nations, shall be
deemed guilty of a misdemeanor, and, on conviction thereof,
shall be punished by fine not exceeding five thousand dollars,
or by imprisonment not exceeding one year, or both said
punishments, in the discretion of the court.
Sec. 3. Every contract, combination in form of trust or
otherwise, or conspiracy, in restraint of trade or commerce in
any Territory of the United States or of the District of
Columbia, or in restraint of trade and commerce between
any such Territory and another, or between any such Territory or Territories and any State or States or the District of
Columbia, or with foreign nations, or between the District of
Columbia and any State or States or foreign nations, is hereby
declared illegal. Every person who shall make any such contract or engage in any such combination or conspiracy, shall
be deemed guilty of a misdemeanor, and, on conviction
thereof, shall be punished by fine not exceeding five thousand
dollars, or by imprisonment not exceeding one year, or by
both said punishments, in the discretion of the court.
Sec. 4. The several circuit courts of the United States are
hereby invested with jurisdiction to prevent and restrain violations of this act; and it shall be the duty of the several district attorneys of the United States, in their respective
districts, under the direction of the Attorney General, to
institute proceedings in equity to prevent and restrain such
violations. Such proceedings may be by way of petition setting forth the case and praying that such violation shall be
enjoined or otherwise prohibited. When the parties complained of shall have been duly notified of such petition the
court shall proceed, as soon as may be, to the hearing and
determination of the case; and pending such petition and
before final decree, the court may at any time make such temporary restraining order or prohibition as shall be deemed
just in the premises.
Sec. 5. Whenever it shall appear to the court before which
any proceeding under section four of this act may be pending, that the ends of justice require that the other parties
should be brought before the court, the court may cause
them to be summoned, whether they reside in the district in
which the court is held or not; and subpoenas to that end
may be served in any district by the marshal thereof.
Sec. 6. Any property owned under any contract or by any
combination, or pursuant to any conspiracy (and being the
subject thereof) mentioned in section one of this act, and
being in the course of transportation from one State to
another, or to a foreign country, shall be forfeited to the
United States, and may be seized and condemned by like proceedings as those provided by law for the forfeiture, seizure,
and condemnation of property imported into the United
States contrary to law.
Sec. 7. Any person who shall be injured in his business or
property by any other person or corporation by reason of
anything forbidden or declared to be unlawful by this act,
may sue therefor in any circuit court of the United States in
the district in which the defendant resides or is found, without respect to the amount in controversy, and shall recover
three fold the damages by him sustained, and the costs of suit,
including a reasonable attorney’s fee.
Sec. 8. That the word “person,” or “persons,” wherever used
in this act shall be deemed to include corporations and associations existing under or authorized by the laws of either the
United States, the laws of any of the Territories, or the laws of
any State, or the laws of any foreign country.
Approved, July 2, 1890.