''Swift & Co. v. United States'', 196 U.S. 375 (1905), was a case in which the

United States Supreme Court The Supreme Court of the United States (SCOTUS) is the highest court in the federal judiciary of the United States. It has ultimate appellate jurisdiction over all U.S. federal court cases, and over state court cases that turn on question ...

ruled that the Commerce Clause allowed the federal government to regulate monopolies if it has a direct effect on commerce. It marked the success of the

Presidency of Theodore Roosevelt Theodore Roosevelt's tenure as the 26th president of the United States began on September 14, 1901, and expired on March 4, 1909. Roosevelt, a Republican Party (United States), Republican, took office upon the Assassination of William McKinley, a ...

in destroying the "Beef Trust". This case established a "stream of commerce" (or "current of commerce") argument that allows Congress to regulate things that fall into either category. In particular it allowed Congress to regulate the Chicago slaughterhouse industry. Even though the slaughterhouse supposedly dealt with only intrastate matters, the butchering of meat was merely a "station" along the way between cow and meat. Thus, as it was part of the greater

meat industry The meat industry are the people and companies engaged in modern industrialized livestock agriculture for the production, packing, preservation and marketing of meat (in contrast to dairy products, wool, etc.). In economics, the meat industry is ...

that was between the several states, Congress can regulate it. The Court's decision halted price fixing by

Swift & Company JBS USA Holdings, Inc. is a meat processing company and a wholly owned subsidiary of the Brazilian multinational JBS S.A. The subsidiary was created when JBS entered the U.S. market in 2007 with its purchase of Swift & Company. JBS USA is bas ...

and its allies.

Details

The case originated in 1902 when President Theodore Roosevelt directed his Attorney General Philander Knox to bring a lawsuit against the "Beef Trust" on antitrust grounds using the

Sherman Antitrust Act The Sherman Antitrust Act of 1890 (, ) is a United States antitrust law which prescribes the rule of free competition among those engaged in commerce and consequently prohibits unfair monopolies. It was passed by Congress and is named for S ...

of 1890. The evidence at trial demonstrated that the "Big Six" leading meatpackers were engaged in a conspiracy to fix prices and divide the market for livestock and meat in their quest for higher prices and higher profits. They blacklisted competitors who failed to go along, used false bids, and accepted rebates from the railroads. The six companies involved were Swift, Armour, Morris, Cudahy, Wilson and Schwartzchild. Together, they did $700 million a year in business and controlled half of the national market, and up to 75% in New York City. When they were hit with federal injunctions in 1902, the Big Six agreed to merge into one National Packing Company in 1903 to continue to control the trade internally. The case was heard by the Supreme Court in 1905, shortly after it struck down a similar consolidation and the Northern Securities case of 1904. Speaking for the court,

Oliver Wendell Holmes Jr. Oliver Wendell Holmes Jr. (March 8, 1841 – March 6, 1935) was an American jurist who served as an associate justice of the Supreme Court of the United States, associate justice of the Supreme Court of the United States, U.S. Supreme Cou ...

broadened the meaning of "interstate" commerce by including actions that were part of the chain where the chain was clearly interstate in character. In this case, the chain ran from farm to retail store and crossed many state lines. The federal government's victory in the case encouraged it to pursue other antitrust actions. Public opinion, outraged by

Upton Sinclair Upton Beall Sinclair Jr. (September 20, 1878 – November 25, 1968) was an American author, muckraker journalist, and political activist, and the 1934 California gubernatorial election, 1934 Democratic Party (United States), Democratic Party ...

's novel ''

The Jungle ''The Jungle'' is a novel by American author and muckraking-journalist Upton Sinclair, known for his efforts to expose corruption in government and business in the early 20th century. In 1904, Sinclair spent seven weeks gathering information ...

'', which depicted horribly unsanitary conditions in Chicago's meatpacking plants, supported the decision. Congress followed by passing in 1906 both the

Pure Food and Drug Act The s:Pure Food and Drug Act of 1906, Pure Food and Drug Act of 1906, also known as the Wiley Act and Harvey Washington Wiley, Dr. Wiley's Law, was the first of a series of significant consumer protection laws enacted by the United States Con ...

and the

Meat Inspection Act The Federal Meat Inspection Act of 1906 (FMIA) is an American law that makes it illegal to adulterate or misbrand meat and meat products being sold as food, and ensures that meat and meat products are slaughtered and processed under strictly ...

.Walker (1906)

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External links

* {{DEFAULTSORT:Swift and Co. v. United States 1905 in United States case law United States Constitution Article One case law United States antitrust case law United States Dormant Commerce Clause case law United States Supreme Court cases United States Supreme Court cases of the Fuller Court Meat processing in the United States JBS S.A. History of Chicago

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