Consumers will pay for bank, airline monopolies

Consumers will pay for bank, airline monopolies

By EDWARD LOTTERMAN -- The Bismarck Tribune

via http://www.airportbusiness.com/publication/article.jsp?siteSection=1&id=39929

 

... Teddy Roosevelt must be turning over in his grave.

A century ago, public concern about pricing abuses by monopolies was the core economic policy issue of the day. In those days, monopolies often used the legal ruse of "trusts" that held controlling interests in several nominally independent companies.

TR, a Republican who was proud to be called "progressive," was the most aggressive "trust-buster" of all time. But now, Roosevelt is being disowned by many contemporary Republicans and anti-trust is not an issue for either party. What happened?

In 1910, people were acutely aware that concentrated market power can lead to higher prices for consumers, having dealt with such issues for decades, especially in reaction to abusive pricing by railroads that had monopolies on service in certain areas. Such concerns had led to the establishment of the Interstate Commerce Commission in 1887 and passage of the Sherman Anti-Trust Act in 1890.

That act had many loopholes, however, and perceived continued abuses led to calls for greater action.

 

After an assassin's bullet catapulted Roosevelt into the White House after only six months as vice president, vigorous anti-monopoly enforcement became his top priority. In all, he instigated 45 anti-trust actions including those that broke up Standard Oil and International Harvester.

 

But such activism was not part of the makeup of his more conservative protege, William Howard Taft, who let anti-trust wither after taking office in 1909. And legislation to plug loopholes in the Sherman Act did not pass until 1914, after Democrats had taken control of both the presidency and Congress. ...