The Sherman Act was passed in 1890 and was named after its author, Senator John Sherman, an Ohio Republican, the chairman of the Senate Finance Committee, who was also Rockefeller’s colleague.After being ratified in the Senate on April 8, 1890 by a vote of 51-1, the Sherman Act passed unanimously (242-0) in the House of Representatives on June 20, 1890, and was then signed into law by President Benjamin Harrison on July 2, 1890.
Despite its name, the Act has fairly little to do with “trusts”. Around the world, what U.S. lawmakers and attorneys call “antitrust” is more commonly known as “competition law.” The purpose of the Act was to oppose the combination of entities that could potentially harm competition, such as monopolies or cartels. Its reference to trusts today is anachronistic. At the time of its passage, the trust was synonymous with monopolistic practice, because the trust was a popular way for monopolists to hold their businesses, and a way for cartel participants to create enforceable agreements.
********************************************************
QUEEN’S COMMENTS
Although this law is still in effect today, our leaders in Washington, for the most part, ignore it. For example, in 1995 the Archer Daniel Midland company pleaded guilty to price-fixing involving lysine and another substance, citric acid. It paid a $100 million fine.
Then, in 1998 A federal jury convicted three past and present Archer Daniels Midland Co. executives conspiring with competitors to fix the price of the feed additive lysine.
Convicted were Michael Andreas, 49, on leave as executive vice president of ADM; Terrance Wilson, 60, retired head of ADM’s corn-processing unit; and former ADM biochemist Mark Whitacre, 41. They faced a maximum three-year prison sentence and at least a $350,000 fine.
Whitacre, who was serving prison time for embezzling $9 million from ADM, also helped FBI agents collect audio and videotapes of ADM’s dealings Asian and European competitors. After hearing more than six weeks of testimony, the U.S. District Court jury deliberated for more than four days before returning the guilty verdicts. The courtroom was silent as the decision was read.
Andreas is the son of Dwayne Andreas, the politically connected chairman and founder of ADM, the agribusiness giant based in downstate Decatur that bills itself as “supermarket to the world.”
Lassar contended that the three ADM executives used the same model that an ADM employee testified had been designed to fix prices for citric acid, a model he said was masterminded by Wilson.
At the trial, Lassar produced notes and charts that he says prove that ADM agreed that it would have a 27 percent share of the world’s $600 million lysine market in 1994, a target that he says the company hit within tenths of a percentage point.
“This was a crime of greed a crime by an extremely large corporation that wanted to make even more money at the expense of their customers,” Lassar said.
********************************************************
WELL AND GOOD. WHAT HAPPENED THEN TO DWAYNE ANDREAS (CEO OF ARCHER DANIEL MIDLAND) FOLLOWING THIS CONVICTION?
In a nutshell, Archer Daniel Midland [ADM] were let off the hook by testifying against the people they were negotiating with to fix prices.
Subsequently, Dwayne Andreas stepped down as chief exceutive. Even though these were the largest fines to ever be brought against an American corporation for antitrust violations, it was still small in contrast to the profits that ADM made from the price-fixing scheme. Many of these details were publicly suppressed by the Justice Department as the result of ADM’s cooperation, in addition to the fact that ADM was granted immunity on the charges of price fixing of the high fructose corn syrup. In 1996, a federal grand jury indicted Whitacre, Michael Andreas, Wilson, and the director of Ajinomoto on charges of conspiring to fix the global prices for lysine. Whitacre was also charged with 45 counts of wire fraud, money laundering, conspiracy, obstruction of justice, filing false income tax returns, and interstate transportation of stolen property. He tried to commit suicide as the result of his argument that the government was hurting him, when he cooperated with the FBI all along.
In March 1998, Whitacre was sentenced to nine years in prison and was ordered to repay $11 million to ADM.[Lesson learned: you can cheat the American consumer but don't mess with the wealthy investors of a Wall Street Corporation.] In September 1998, Michael Andreas, Wilson, and Whitacre were convicted of conspiring to fix lysine prices. Although the maximum punishment for such offenses could have been three years in prison and a fine of $350,000, Andreas and Wilson were sentenced to two years in prison and fined $350,000. Whitacre was sentenced to another two and a-half years for the price- fixing.
**********************************************************
HERE IS THE FINAL SLAP IN THE FACE TO THE AMERICAN TAX PAYERS and consumers :
In spite of the fact that this company was convicted of violating the Sherman Anti-trust act and its leaders declared common criminals, millions of taxpayer dollars have continued to be handed over to ADM in the form of agricultural subsidies.
As a grain trader, ADM dwarfs its farmer suppliers, and is able to dictate the economic terms that suit it. However ADM is less aggressive than Cargill in pushing anti-farmer policies, and has less involvement in the developing world. In fact, it extracts its earnings less from farmers (as Cargill does) than from consumers (through collusion and price-fixing) and from taxpayers. ADM, like the other grain traders, has focused heavily on the accumulation of political power – which is has largely achieved through the personal connections of former chairman and CEO Dwayne Andreas.
While Cargill has used its political influence to crack open foreign markets, and to push free trade agreements, ADM has lobbied for excessively favourable domestic treatment. ADM is infamous for its ability to obtain corporate welfare – in the form of government subsidies and tax breaks.