Today in Legal History: US v. E.C. Knight Decided

January 21, 1895. The Sherman Anti-Trust Act was passed by Congress in 1890 to stop large monopolies from controlling commerce.  The justification for the Sherman Act was the Commerce Clause.  In US v. E.C. Knight, 156 U.S. 1 (1895) the ability of the Sherman Act was heavily curtailed.  The Supreme Court made a distinction between commerce and manufacturing.  If the manufacturing was done within a single state, the Commerce Clause did not apply.  Until the Clayton Act in 1916, sugar and other processing monopolies like the one in US v. E.C. Knight could not be controlled by federal powers.

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