Understanding the Clayton Act of 1914: An Analysis of the Interest Group Hypothesis

The trusts issue culminated in the passage of the Clayton Act in1914, which conventional wisdom holds was a response to theperceived ineffectiveness of the Sherman Antitrust Act of 1890.Using ordered and multinomial logit analysis, we were able todetect economic interest variables that explain the senators'votes. The empirical findings strongly support the wealth transferhypothesis, and the regression results clearly show that senatorsresponded to interest groups. While we also found some support forthe ideological perspective, it is clear that there was much moreto the vote than the conventional story would suggest.