United States v. E. C. Knight - Robber Barons

A handful of mid- to late nineteenth century railroad owners and executives became known as the "robber barons" because of the illegal and monopolistic practices they used to control the U.S. railroads. Without laws and regulations, the robber barons largely did what they wanted, amassing wealth and power through their railroad monopolies.

Jay Gould, perhaps the most notorious of the robber barons, took over the Erie Railroad by bribing politicians, issuing fraudulent stock, launching price wars, influencing the gold market, and deceiving business associates. Other key robber barons included Edward Henry Harriman and James J. Hill who competed with each other for control of the Northwest railroads. Harriman's Union Pacific eventually seized the Pacific Coast, while Hill's Great Northern Railway connected the North and West. The two briefly formed the monopoly Northern Securities Company, which the U.S. Supreme Court broke up in 1904.

Around the turn of the century, the robber barons' dominance began to wane because of growing public anger over ticket price fluctuations and stock market dips stemming from the railroads. During this period, the federal government dealt a series of blows to the robber barons in the form of laws, regulations, and court orders, which led to policies that curbed the formation of monopolies.