Under President Woodrow Wilson's administration, the Clayton Anti-Trust Act was passed to limit the power of big business in America. This piece of legislation attempted to dissemble existing monopolies and prevent the formation of new ones. It prevented industrialists from selling their commodoties at different prices to different purchasers if this discrimination limited competition. This regulation was intended to prevent large businesses, which could afford to charge lower prices, from dramatically dropping the cost of their goods in order to elimate the competition of presented by smaller business. Often times, these large businesses would then raise their rates again after the smaller companies had been forced out of business. The act also stipulated that businesses could not offer their goods for discounted rates to other companies that promised not to engage in commerce with other businesses. It also defined unlawful mergers. Merges of companies would not be lawful if they severely limited competition and created a monopoly. Despite all of these regulations, the act does not come across as "anti-business." Big business were still given the authority to set their own prices and did not prevent them from choosing their own customers. The goal was not to restrict trade. Rather, the Federal Government wanted to reign in on monopolies.
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