Houghton Mifflin Social Studies
Lesson at a Glance Outline

Chapter 16 Lesson 2: The Reforming Impulse (pp. 477-485)

I. The Mugwumps Seek Reform

II. Attacking the Spoils System

    A. Mugwumps and other reformers worked to replace the spoils system with a system in which people had to prove their abilities to hold government jobs.

    B. Congress passed the Civil Service Act of 1883, which set aside about 15,000 federal jobs to be filled through a competitive test.

III. Regulating the Railroads
    A. Railroads often used unfair business practices against competitors, charged unfairly high rates to farmers, and bribed politicians.

    B. In 1887, Congress passed the Interstate Commerce Act, which outlawed many unfair railroad practices and set up the Interstate Commerce Commission.

    C. Although the ICC had little power at first and the Supreme Court usually ruled in favor of the railroads, the law did establish the government's right to regulate business.

IV. Restraining the Trusts
    A. Through monopolies or trusts, one company or group of companies could control an entire industry, and then set prices and quantities of goods to make the greatest possible profitable.

    B. In 1890, Congress passed the Sherman Antitrust Act to limit the power of the trusts.

    C. The Sherman law had little effect at first because businesses found loopholes in it and the Supreme Court interpreted it narrowly.

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