Northern Securities v. United States

The Court ordered the dissolution of a railroad holding company monopoly under the Sherman Antitrust Act.

Overview

J.P. Morgan and James Hill created the Northern Securities Company to merge the Great Northern and Northern Pacific railroads, eliminating competition in the Northwest. President Theodore Roosevelt directed his attorney general to sue. By a 5-4 vote, the Court held the holding company was a combination in restraint of interstate commerce, marking the first major breakup under the Sherman Act and demonstrating that the government would enforce antitrust law against the nation's largest financiers. The ruling validated Roosevelt's trust-busting agenda and established an early foundation for modern antitrust enforcement.