American History II: The Presidents of the Progressive Era
Theodore Roosevelt (1858 – 1919), 26th President (1901-09), Republican
Promoted his “Square Deal” - a promise to treat both citizens and businesses fairly; Roosevelt wanted to protect consumers from “bad” trusts, but also protect businesses from unreasonable labor demands
The Anthracite Coal Mine Strike
1902: 150,000 Pennsylvania coal miners went on strike, leaving the nation without coal for heat
Roosevelt threatened to nationalize the mines, forcing the owners to negotiate with the strikers
The Elkins Act (1903) & Hepburn Act (1906)
Required railroads to charge everyone the same shipping rates
Laws strengthened the Interstate Commerce Commission (ICC) by giving it the ability to impose fines and even to set railroad rates
US v. Northern Securities (1901)
Three major railroads merged under a holding company called Northern Securities, creating a monopoly
Roosevelt sued, claiming Northern Securities violated the Sherman Antitrust Act
The Supreme Court ruled in Roosevelt’s favor, ordering the breakup of Northern Securities
Creation of the U.S. Department of Commerce & Labor (1903)
Even while opposing trusts, Roosevelt knew that supporting business was good for the nation
Roosevelt created the Dept. of Commerce & Labor, including the Bureau of Corporations, a branch designed to monitor businesses and advised them when their practices might force government action
The Meat Inspection Act (1906) & Pure Food & Drug Act (1906)
In 1906, Upton Sinclair wrote The Jungle, an exposé of the disgusting conditions within the meat-packing industry
Public outcry afterwards prompted Roosevelt to seek food inspection reforms
New laws required the inspection of meat by the United States Dept. of Agriculture (USDA) and prohibited the manufacture, sale, or shipment of impure or falsely labeled food and drugs
Products containing drugs like alcohol, caffeine, or cocaine also had to be labeled
Land Conservation Efforts
Roosevelt supported conservation of the nation’s natural resources and set aside millions of acres of public lands for national parks, forests, and wildlife preserves
William Howard Taft (1857 – 1930), 27th President (1909-13), Republican
Strongly supported by Roosevelt during the election of 1908
The Payne-Aldrich Tariff (1909)
Taft tried to get tariffs lowered, but ended up being forced to accept the Payne-Aldrich Tariff which actually raised tariffs on most goods
This angered & disappointed Progressives, including Roosevelt, and badly hurt Taft’s reputation
Ballinger-Pinchot Controversy (1909)
Taft’s Secretary of the Interior, Richard Ballinger, was accused by head of the US Forest Service (and close friend of Roosevelt) Gifford Pinchot of corruption
Taft’s Attorney General dismissed the charges due to lack of evidence, so Pinchot leaked his story to the press
Taft fired the popular Pinchot, angering Progressives
The Mann-Elkins Act (1910)
Increased the powers of the Interstate Commerce Commission by adding communications (telegraph & telephone companies) to the industries overseen by the ICC
Taft the “Trustbuster”
Roosevelt was perceived as being a more efficient trustbuster than Taft, but Taft actually prosecuted twice as many antitrust cases in his 1 term as president as Roosevelt did in 2 terms!
US v. American Tobacco(1911)
US Supreme Court ruled that James Duke’s American Tobacco Co. had violated the Sherman Antitrust Act by establishing an illegal monopoly on the cigarette industry
The Children’s Bureau (created in 1912)
Designed to protect children from abuse, both at home and in the workplace and to monitor orphanages, foster care, and adoptions
First federal agency to be headed by a woman (Julia Lathrop)
The Triangle Shirtwaist Factory Fire (March 25, 1911)
Exit doors to a New York textile factory were kept locked from the outside to prevent employees from stealing
When a fire broke out, the workers could not escape and 146 died
Public outrage led to major reforms in factory working conditions and building codes
The Election of 1912
Disappointed in Taft, Roosevelt decided to run for president once again in 1912
The Republican Party stuck with Taft, so Roosevelt formed his own Progressive Party, better known as the “Bull Moose” Party
The Bull Moose platform of “New Nationalism” supported making the federal government powerful enough to regulate corporations
Roosevelt was shot while campaigning, limiting his ability to appear in public over the last several weeks of the election
The Democratic Party nominated Progressive NJ governor (and political newcomer) Woodrow Wilson
With the Republicans split between Taft and Roosevelt, Wilson won the election fairly easily
Woodrow Wilson (1856 – 1924), 28th President (1913-21), Democrat
Ran on the “New Freedom” platform: rather than empower government to regulate monopolies and trusts, simply destroy monopolies to ensure fair competition
Believed in limited government, especially where the economy was concerned
16th Amendment (1913): Created a federal income tax
17th Amendment (1913): To eliminate corruption in the Senate, the Constitution was amended to require US senators to be publicly elected rather than appointed by state legislatures
The Underwood Tariff (1913): Cut tariffs in half, down to about 30%
Wilson believed that competition with European companies would force American companies to produce better products more efficiently (cheaper)
The Federal Reserve Act (1913)
Required private banks to keep a portion of their deposits on reserve in federally run banks to act as a cushion against unexpected losses; federal reserve banks then set national interest rates and regulated the amount of money in circulation, allowing them to control inflation and prevent recessions
The Federal Trade Commission (1914)
Had the authority to investigate and penalize businesses using unfair trade practices
FTC was not designed to breakup trusts, but rather to make companies play fair
The Clayton Antitrust Act (1914)
Banned “tying” agreements which required retailers who bought products from one company to stop selling products from competing companies
Required businesses to charge all customers the same price for a product
Banned manufacturers from giving price discounts to retailers who bought larger volumes
Declared labor unions to be exempt from antitrust laws
The Keating-Owen Child Labor Act (1916)
Prohibited the employment of children under 14 in factories producing goods sold through interstate commerce, but was later declared unconstitutional by the US Supreme Court
The Adamson Act (1916): Passed by Congress to avoid a national railroad strike
Established an 8-hour workday for railroad workers, created overtime pay
First US law to regulate the hours of workers in private industry
Federal Farm Loan Act (1916)
Created special federal banks to provide loans to farmers and small businesses
Encouraged small businesses to compete with bigger rivals to prevent trusts and monopolies
18th Amendment (1919)
Growing support for temperance (anti-alcohol) led to a ban on the manufacture, transport or sale of alcoholic beverages anywhere in the US
18th Amendment was repealed by the 21st Amendment in 1933
19th Amendment (1920): Gave women the right to vote in federal elections