US v. E C Knight Co.

US Supreme Court decision of 1895 dealing with the right of the federal government to restrict the formation of corporate monopolies. The American Sugar Co. established a 98% monopoly on sugar manufacturing in the US when it purchased the E C Knight Sugar Co., its leading competitor. The Justice Department filed suit against Knight for conspiracy to violate federal antitrust legislation. The Court ruled 8 to 1 that manufacturing was distinct from commerce and therefore outside of federal regulatory jurisdiction. The charges against Knight were dropped, virtually nullifying an important provision of the Sherman Antitrust Act 1890.