Forum Post: Break up Companies that are Threats to the Economic System of the United States!!!

We need a Sherman Act Part 2! We need to enact Thomas Jefferson's proposed 11th Ammendment!

As you will see below, Standard Oil was a villanous company deemed a monopoly (one type of economic threat), but "Too Big to Fail" companies are also massive economic threats (as the bailouts showed us.)

Please see the below PBS Documentary showing Standard Oil's Insudious Nature:

www.youtube.com/watch?v=BwEkpB4feN0

Obviously Standard Oil was unethical. Also, see the following:

The federal Commissioner of Corporations studied Standard's operations from the period of 1904 to 1906 and concluded that "beyond question... the dominant position of the Standard Oil Company in the refining industry was due to unfair practices—to abuse of the control of pipe-lines, to railroad discriminations, and to unfair methods of competition in the sale of the refined petroleum products".

The above is in: Jones, Eliot. The Trust Problem in the United States pp. 65-66 which can be found here: http://www.questia.com/PM.qst?a=o&d=59428682

Standard Oil was a Monopolistic company that needed to be, and was, broken up by the United States government (utilizing the Sherman Act.)

Further, in Jones (p.73), above:

The general result of the investigation has been to disclose the existence of numerous and flagrant discriminations by the railroads in behalf of the Standard Oil Company and its affiliated corporations. With comparatively few exceptions, mainly of other large concerns in California, the Standard has been the sole beneficiary of such discriminations. In almost every section of the country that company has been found to enjoy some unfair advantages over its competitors, and some of these discriminations affect enormous areas."---Bureau of Corporations

Standard Oil utilized "Dumping" to force competitors out of business, then raised prices:

http://en.wikipedia.org/wiki/Dumping_(pricing_policy)

From (Dumping) Above (About Standard Oil):

Ron Chenow points to the example of regional oil monopolies in Titan : The Life of John D. Rockefeller, Sr. where Rockefeller receives a message from Colonel Thompson outlining an approved strategy where OIL IN ONE MARKET, Cincinnati, would be SOLD AT OR BELOW COST to drive competition's profits down and FORCE THEM TO EXIT THE MARKET. In another area where other INDEPENDENT BUSINESSES WERE ALREADY DRIVEN OUT, namely in Chicago, PRICES WOULD BE INCREASED by a quarter.

As you can see from the above, Standard Oil only lowered prices, in order to force out competition, once the competition was eliminated, CHICAGO CONSUMERS SUFFERED due to Standard Oil PRICE INCREASES (in order to increase Standard Oil's Profits.)

See the below on why monopolies a bad for consumers: http://www.youtube.com/watch?v=XnXm-hFmKUQ

A monopolistic business can, utilizing “economies of scale”, drive down prices, but what long term incentive do they have to drive down prices, after no competition exists? None. Just as in the Standard Oil Example, they have every incentive to raise prices. Those monopolistic businesses will charge the highest price they possibly can (in order to maximize profits) at the expense of consumers. Remember Standard Oil. We need a Sherman Act Part 2! We need to enact Thomas Jefferson's proposed 11th Ammendment!