Scenario 1 Basic Facts Year 1893 Location Cleveland

Scenario 1: Basic Facts • • Year: 1893 Location: Cleveland, Ohio Two major cement contractors – Smith and Jones They contract: Smith handles all north town business; Jones handles all south business • Goal: To protect their businesses • Larson – Large building contractor in south end doesn’t like Jones’ south-end monopoly Law 552 - Antitrust - Instructor: Dwight Drake

Scenario 1 • In 1893, what would have been best arguments on behalf of the Smith and Jones position? • In 1893, what would have been best arguments on behalf of Larson’s position? Law 552 - Antitrust - Instructor: Dwight Drake

Questions re: Trans-Missouri Freight • Is price fixing ever good? • Did railroad rate case make it harder for majority? For dissent? • What are liberty of contract, freedom of trade? What are the sources of these rights? • What is protectionism? Is it part of antitrust? Should it be? Law 552 - Antitrust - Instructor: Dwight Drake

Scenario 2: Basic Facts • Year: 1900 • Smith/Jones division contract expanded to four states • Smith/Jones shared a portion of profits, made joint investments and rose to the level of a common law partnership Any new arguments? Law 552 - Antitrust - Instructor: Dwight Drake

Questions: Addyston Pipe & Steel • What percent of market? • Did they set unreasonable prices? Was this relevant to decision? • What is the difference between primary and ancillary restrain, per Taft? • What was impact of common law? • What is impact of public interest factor? Law 552 - Antitrust - Instructor: Dwight Drake

Scenario 3: Basic Facts • Year 1904 • Smith-Jones form New Jersey holding company • Smith-Jones consolidate through holding company. • Smith-Jones acquire 10 other firms through holding company • Divide market in 15 states Law 552 - Antitrust - Instructor: Dwight Drake

Scenario 3 • In 1904 after Northern Securities , what would have been best arguments against the Smith/Jones position? • In 1904 after Northern Securities, what would have been best arguments in support of the Smith/Jones position? Law 552 - Antitrust - Instructor: Dwight Drake

Scenario 4: Basic Facts • • Year 1915 Smith-Jones dominant player in 25 states Other firms can’t get foothold in these states. What additional facts would help analysis? Law 552 - Antitrust - Instructor: Dwight Drake

Standard Oil (1911) • Rockefeller’s Oil Trust – The “Mother of all Trust” • How bad were the actors? • How significant was common law? • White on majority. Was he consistent with his prior views? • What is “undue restraint”, “standard of reason”? Law 552 - Antitrust - Instructor: Dwight Drake