Gentlemen`s agreements between industry and the U.S. government were common in the 1800s and early 1900s. The Bureau of Corporations, a predecessor of the Federal Trade Commission, was established in 1903 to investigate monopolistic practices. Japan has agreed to limit the number of passports it has provided to workers and domestic workers to 400 per year. Four classes of immigrants would still be allowed to enter Canada: returning residents and their wives, children and parents; Immigrants employed by Japanese residents in Canada for personal and domestic services; Canadian government-approved workers; and contracted farm labour by Japanese landowners in Canada. Although no specific legislation has been adopted to enforce the quota, the agreement has resulted in a significant reduction in Japanese immigration. In the year following the agreement, only 495 Japanese immigrants arrived in Canada.  This, in some cases, led to gentlemen`s agreements in which Wall Street financiers, such as J.P. Morgan and his “House of Morgan”, would meet with the office to obtain prior authorization for mergers and acquisitions. One such example was the gentlemen`s agreement in which regulators and the president ignored the Sherman Antitrust Act, which allowed united States Steel Corp. to become the world`s first multi-billion-dollar company.
Let me begin first for the laborious thoroness and admirable temperament with which you have gone in the case of the treatment of the Japanese on the coast . I had a conversation with the Japanese ambassador before leaving for Panama; read to him what I had to say in my annual message, which he obviously liked very much; and told him that, in my view, the only way to avoid permanent friction between the United States and Japan was to limit as much as possible the movement of citizens from each country to each other to students, travellers, businessmen and others; As no American worker tried to enter Japan, the need was to prevent all immigration of Japanese workers – that is, from the Coolie class – to the United States; that I really hoped that his government would prevent his coolies, all their workers, from coming to either the United States or Hawaii. He was strongly committed to this view and said that he had always opposed Japanese coolies going to America or Hawaii… I hope my message will calm their feelings for the government to tacitly stop all immigration of coolies into our country.