Theodore Roosevelt and the Bureau of Corporation: Executive-Corporate Cooperation and the Advancement of the Regulatory State

Abstract

Theodore Roosevelt's trust policy has been viewed as “progressive” by his contemporaries, dictated by big business by the New Left, and as a precursor to autonomous institutional development most recently. This thesis will instead analyze Roosevelt's actions through a pragmatic lens. Roosevelt's first legislative action in relation to the trusts was to create the Bureau of Corporations. Whilst seemingly ushering in transparency in business affairs through its reporting function, Roosevelt secured executive jurisdiction over publicly circulating its findings, paving the way for private, state-corporate cooperation. Obtaining sensitive information through the promise of discretion, Roosevelt held an implicit leverage over companies, allowing him to threaten to publicize illegalities if they refused to abandon them. The Bureau became a forum for closed-door agreements which achieved tangible amelioration of practice, whilst minimizing the damage entailed by a public airing of corporate America's dirty laundry. I will analyze several Bureau investigations and illustrate the learning curve by which Roosevelt and big business came to an agreement over the parameters of cooperation. Mired by mixed signals from both sides during its early investigations, the emergence of dialectical negotiations over corporate practice and the extent of government-induced public scrutiny came to embody a fledgling cooperative process. These investigations illustrate the pragmatic means by which Roosevelt pursued a conservative, yet effective, reigning in of big business power.