Source: http://www.carsandracingstuff.com/library/government/366US316.php
Timestamp: 2019-04-23 20:44:03+00:00

Document:
NO. 55.  ARGUED FEBRUARY 20-21, 1961 - DECIDED MAY 22, 1961 - 177 F.
YEARS FROM THE EFFECTIVE DATE OF THE DECREE.  PP. 318-335.
VIOLATIONS OF THE ANTITRUST LAWS.  PP. 322-325.
JUDGMENT WAS SCRUPULOUSLY AND FULLY CARRIED OUT.  PP. 325-326.
MANAGEMENT AND CONTROL OF GENERAL MOTORS.  P. 333.
TO THE SURER, CLEANER REMEDY OF COMPLETE DIVESTITURE.  PP. 333-334.
TO THE REMEDY ARE TO BE RESOLVED IN ITS FAVOR.  P. 334.
RIGHTS IN RESPECT OF ITS GENERAL MOTORS STOCK.  PP. 334-334.
YEARS, OF THE EFFECTIVE DATE OF THE DECREE.  P. 335.
UNITED STATES V. E. I. DU PONT DE NEMOURS & CO. ET AL.
MOST OF WHOM, OF COURSE, HAD NOT BEEN MADE PARTIES TO THIS LITIGATION.
HAVE VERY SERIOUS ADVERSE CONSEQUENCES."  177 F. SUPP. 1, 42 (D.C.N.D.
AND ADOPTED THE DU PONT PROPOSAL, WITH SOME SIGNIFICANT MODIFICATIONS.
PROBABLE JURISDICTION.  362 U.S. 986 (1960).
DISCHARGE OF THE DUTY DELEGATED BY OUR JUDGMENT TO FORMULATE A DECREE.
RESTS WITH THE TRIAL JUDGE," BESSER MFG. CO. V. UNITED STATES, 343 U.S.
DISCRETION.  SEE, E.G., MARYLAND & VIRGINIA MILK PRODUCERS ASSN. V.
UNITED STATES, SUPRA, P. 473; UNITED STATES V. W.T. GRANT CO., 345 U.S.
629, 634 (1953); TIMKEN ROLLER BEARING CO. V. UNITED STATES, 341 U.S.
THE RELIEF IS EFFECTIVE TO REDRESS THE ANTITRUST VIOLATION PROVED.
THERE WERE INAPPROPRIATE PROVISIONS IN THE DECREE."  UNITED STATES V.
THAN THAT, THE GOVERNMENT HAS WON A LAWSUIT AND LOST A CAUSE."
INTERNATIONAL SALT CO. V. UNITED STATES, SUPRA, P. 401.
RESPONSIBILITY OF AFFORDING THE PARTIES A REVIEW OF HIS DETERMINATION.
(FN5)  THIS CIRCUMSTANCE IMPOSES A SPECIAL BURDEN UPON US, FOR, AS MR.
STATES, 324 U.S. 570, 571 (1945), CLARIFYING 323 U.S. 386 (1945).
THIS CASE FURTHER APPEARS IN THE LIGHT OF ADDITIONAL CONSIDERATIONS.
SHOULD BE DERELICT IN OUR DUTY IF WE DID NOT CORRECT THE ERROR.
OF COURSE THE DISCOVERY OF MEASURES EFFECTIVE TO RESTORE COMPETITION.
WHATEVER THE ADVERSE EFFECT OF SUCH A DECREE ON PRIVATE INTERESTS.
SUGGEST THAT AN UNDOING OF THE ACQUISITION IS A NATURAL REMEDY.
COURT'S MIND WHEN A VIOLATION OF SEC. 7 HAS BEEN FOUND.
DONE.  BUT THESE ARGUMENTS MISCONCEIVE THE NATURE OF THIS PROCEEDING.
THE PURPOSE OF THE DECREE TO TERMINATE."
CAPITAL STRUCTURE, ESTABLISHED UNDER STATE CORPORATION LAW.
SHALL GIVE PRECEDENCE TO THIS CAUSE ON ITS CALENDAR.
WITH THIS OPINION.  IT IS SO ORDERED.
VIOLATED THE SHERMAN ACT.  SEE 353 U.S., AT 588, NOTE.  5.
DEFERENCE WRITTEN INTO THE PRINCIPAL OPINION.
IMPORTANCE UNDER SEC. 1 OF THE ACT, 32 STAT. 823, AS AMENDED, 15 U.S.C.
1903).  SEE ALSO H.R. REP. NO. 3020, 57TH CONG., 2D SESS. 2 (1903).
KEEP SUCH AN IMPORTANT MATTER FROM GOING UNREVIEWED, SEE H.R. REP. NO.
WHICH PROCEEDED TO DECIDE THE APPEAL.  148 F.2D 416 (C.A.2D CIR.
COURT'S POWER TO SEE THAT ITS MANDATE IS CARRIED OUT.
SESS. (1959); H.R. REP. NO. 1128, 86TH CONG., 1ST SESS. (1959).
FN8  SEE, E.G., UNITED STATES V. CRESCENT AMUSEMENT CO., 323 U.S.
173, 189 (1944); UNITED STATES V. CORN PRODUCTS REFINING CO., 234 F.
188 F. 127, 153 (C.C.D. DEL. 1911), MODIFIED, 273 F. 869 (D.C.D. DEL.
PARA. 26,923, AT P. 36,462 (F.T.C. 1958).
IN TERMS, OR SOME OTHER STRONG INDICATION OF INTENT.  HECHT CO. V.
BOWLES, 321 U.S. 321, 329 (1944).
THEY ARE EQUALLY APPLICABLE TO SEC. 7.
STATES V. AMERICAN TOBACCO CO., 221 U.S. 106 (1911); UNITED STATES V.
MODIFIED AFTER REMAND, CONTINENTAL INS. CO. V. UNITED STATES, 259 U.S.
STATES V. PARAMOUNT PICTURES, INC., 334 U.S. 131 (1948); BESSER MFG.
CO. V. UNITED STATES, 343 U.S. 444 (1952); INTERNATIONAL BOXING CLUB V.
(D.C.D. DEL. 1921); UNITED STATES V. LAKE SHORE & M.S.R. CO., 203 F.
UNITED STATES V. INTERNATIONAL HARVESTER CO., 214 F. 987 (D.C.D. MINN.
STATES V. MINNESOTA MINING & MFG. CO., 92 F. SUPP. 947 (D.C.D. MASS.
1950), MODIFIED, 96 F. SUPP. 356 (D.C.D. MASS. 1951); UNITED STATES V.
DECREE ENTERED, 105 F. SUPP. 215 (D.C.S.D.N.Y. 1952).
THE PYRRHIC VICTORIES OF ANTITRUST, 27 IND. L.J. 1, NOTE 1 (1951).
CITED IN A LITIGATION CONTEXT.
F. SUPP., AT 400-401 AND NOTE 16.
FN14  SEE HALE AND HALE, OP CIT., SUPRA, NOTE 11, AT 370.
FN15  FOR THE SIGNIFICANCE OF SUCH LONG HABIT, SEE NORTH AMERICAN CO.
(D.C.S.D.N.Y. 1952); DOUGLAS, DEMOCRACY AND FINANCE 33 (1940).
(D.C.S.D.N.Y. 1916), APPEAL DISMISSED ON MOTION OF APPELLANT, 249 U.S.
621 (1919); 12 ALA. L. REV. 214, 220-221 (1959); NOTE, 56 COL. L. REV.
ANTITRUST LAWS, 38 MICH. L. REV. 462, 469 (1940).
FN17  SEE HALE AND HALE, OP. CIT., SUPRA, NOTE 11, AT 379.
REVIEW OF THOSE DECREES HERE?
WAS ASKED IN THE CONTEXT OF THESE FACTS.
AUTOMOTIVE VEHICLES IN THE NATION" OVER THE PERIOD FROM 1938 TO 1955.
THIRTY-EIGHT AND FIVE-TENTHS PERCENT RESPECTIVELY.
AND FINISHES."  353 U.S., AT 602.
SET ABOUT MAXIMIZING DU PONT'S SHARE OF THE GENERAL MOTORS MARKET.
OF FROM FOUR TO SEVEN OF GENERAL MOTORS' EIGHT OPERATING DIVISIONS.
"COMPARED FAVORABLY" WITH PURCHASES BY OTHER GENERAL MOTORS DIVISIONS.
NOT GAINED SOLELY ON COMPETITIVE MERIT."  353 U.S., AT 605.
ATTEMPTS, COMBINATIONS, OR CONSPIRACIES TO MONOPOLIZE, SUCH TRADE.
GOVERNMENT'S APPEAL FROM THE DISMISSAL OF ITS SHERMAN ACT ALLEGATIONS.
OR TEND TO CREATE A MONOPOLY OF ANY LINE OF COMMERCE.
INTENDED  ..  .""  353 U.S., AT 589.
SERVE WHAT THEY DEEMED THE BEST INTERESTS OF THEIR OWN COMPANIES.
PARTICULAR CASE.'  INTERNATIONAL SALT CO. V. UNITED STATES, 332 U.S.
392, 400-401."  353 U.S., AT 607-608.
TO SUBMIT A PLAN WITHIN THIRTY DAYS.
THE GOVERNMENT SUBMITTED ITS PROPOSED DECREE ON OCTOBER 25, 1957.
AT THE CAPITAL GAINS RATE.
THE GENERAL MOTORS SHARES ALLOCABLE TO THEM TO THEIR OWN STOCKHOLDERS.
SUBSCRIPTION RIGHTS TO ITS STOCKHOLDERS.
REQUIRED BY THE MANDATE OF THIS COURT.
MEMORANDUM BUT IT DID NOT SUBMIT AMENDMENTS TO ITS ORIGINAL PROPOSAL.
BEGIN DECIDING ISSUES PIECEMEAL AT THAT LATE DATE.
BEFORE THE COURT UNAMENDED IN ANY DETAIL.
"MR. REYCRAFT (CHIEF COUNSEL FOR THE GOVERNMENT):  ..  .
CHANGE THE DECISIONS THEY MAKE.
DECREE THAT YOU PROPOSED BEFORE THIS HEARING STARTED?
"MR. REYCRAFT:  THAT IS RIGHT, SIR.
"MR. COX (COUNSEL FOR DU PONT):  ..  .
OF THE DEVIATION FROM THE ORIGINAL PROPOSAL.
"MR. COX:  I WOULD ASSUME THAT WOULD BE TRUE.
IS THE DECREE, WITH PROBABLY MINOR CHANGES.
RATHER THAN ON ALTERNATIVE SUGGESTIONS.
FOUND TO EXIST."  177 F. SUPP., AT 12-13.
S. CT. 373, 89 L. ED. 322; UNITED STATES V. NATIONAL LEAD CO., 332 U.S.
SHOULD WEIGH IN THE FRAMING OF ITS FINAL JUDGMENT.  UNITED STATES V.
AMERICAN TOBACCO CO., 221 U.S. 106, 185, 31 S. CT. 632, 55 L. ED. 663.
71 S. CT. 971, 95 L. ED.  1199."  177 F. SUPP., AT 13-14.
WOULD BE ITS IMPACT ON THE MARKET VALUE OF THE SECURITIES INVOLVED.
GOVERNMENT DECREE WERE IN EFFECT."  177 F. SUPP., AT 22.
FOURTH WITNESS' OPINIONS HAD NO FOUNDATION IN FACTUAL EVIDENCE.
GENERAL MOTORS AND DU PONT STOCK DURING THE DIVESTITURE PERIOD.
FAIR VALUE AND TRUE WORTH OF THE STOCK."
THE COUNTRY, WOULD BE FORCED TO MAKE MASS SALES OF DU PONT STOCK.
HIGHLY UNECONOMIC AND VERY DIFFICULT TO ACCOMPLISH.
DIVESTITURE, BY CORPORATIONS OR INDIVIDUALS AFFILIATED WITH DU PONT.
LARGE ENOUGH BLOCK TO EXERCISE ANY REAL CONTROL OVER GENERAL MOTORS.
BY THESE STOCKHOLDERS WOULD BE PRECLUDED.
CONCLUDED, "ON WHICH THE COURT COULD MAKE SUCH A FINDING."  177 F.
PONT HAS NOT HELD ITS STOCK IN GENERAL MOTORS SOLELY FOR INVESTMENT.
VARYING IN DETAIL DEPENDING ON THE VARIATION OF THE GOVERNMENT'S PLAN.
THE STOCKHOLDERS OF THOSE COMPANIES.
THE COURT DEALT WITH THE GOVERNMENT'S TWO OBJECTIONS TO ITS RESULT.
MOTORS STOCK WOULD "CONSTITUTE A SERIOUS ABUSE OF DISCRETION."  177 F.
RELATION TO THE PARTICULAR FACTS OF THE CASES RELIED ON.
DISPENSE EQUAL JUSTICE UNDER LAW WOULD ALL TOO OFTEN BE FRUSTRATED.
AND TO MOULD EACH DECREE TO THE NECESSITIES OF THE PARTICULAR CASE.
NEEDS AS WELL AS BETWEEN COMPETING PRIVATE CLAIMS  ..  .""
INEVITABLE IMPACT FAR BEYOND THE INTERESTS OF THE IMMEDIATE PARTIES.
FORMULATION OF ANTITRUST DECREES BECOMES NECESSARY.
SET OF PROHIBITIONS AGAINST SUCH DEALING BETWEEN THE TWO ENTERPRISES.
COMBINATION FROM THE BEGINNING  ..  .""
ANTITRUST STATUTES, BECAME LAW BEFORE THE INCOME TAX WAS A REALITY.
AND MEANS, JULY 20, 1959, 4 ANTITRUST BULLETIN 557 (1959).
STATES STEEL CORP., 251 U.S. 417, 453.
THE EFFECT  ..  MAAY BE TO SUBSTANTIALLY LESSEN COMPETITION."
THIS COURT WITHOUT OPINION, 347 U.S. 521).
PUBLIC, INVESTORS, CUSTOMERS, AND EMPLOYEES BE TAKEN INTO ACCOUNT.
MADE."  177 F. SUPP., AT 14.
DEPRIVES THE ANTITRUST DEFENDANTS OF THE BENEFITS OF THEIR CONSPIRACY.
GUIDED THIS COURT'S RULINGS ON DIVESTITURE.  IN STANDARD OIL CO. V.
CREATION OF THE COMBINATION IS ITSELF THE VIOLATION."  UNITED STATES V.
CORPORATE DEFENDANT OR ITS AFFILIATES.
WILL BE AVAILABLE IN THE FUTURE  ..  .""  323 U.S., AT 189-190.
THESE, THEN, ARE THE JUSTIFIABLE BASES FOR COMPELLING DIVESTITURE.
OF THE STOCKHOLDING ON COMPETITION, NOT THE STOCKHOLDING AS SUCH.
PRECLUDE RESTRAINTS, BY INJUNCTIVE RELIEF, THAT RENDER IT "IMPOTENT,"
PONT'S COMPETITORS."  353 U.S., AT 607.
GREAT NORTHERN AND NORTHERN PACIFIC RAILWAYS, NORTHERN SECURITIES CO.
DESTROY A POTENTIAL COMPETITOR, UNITED STATES V. READING CO., 226 U.S.
OR INADEQUACIES ARE IMPRESSIVELY DISPROVED BY THIS RECORD.
90.  SEE INTERNATIONAL SALT CO. V. UNITED STATES, 332 U.S. 392, 400.
U.S. 386, 418; SCHINE CHAIN THEATRES, INC., V. UNITED STATES, 334 U.S.
THE TRIAL COURT'S FUNCTION AS FACT-FINDER.
THIS SUIT WAS INSTITUTED TO CHALLENGE THE VALIDITY OF THE ACQUISITION.
THOUSANDS.  THE VALUE OF THE GENERAL MOTORS STOCK GREATLY INCREASED.
AVERTED REASONABLY FOUNDED FEAR OF SERIOUS ECONOMIC DISLOCATION.
ARGUMENTATIVE FORM IN WHICH IT IS BEFORE US  ..  .""
THE WISDOM OF THIS POLICY IS REFLECTED IN MANY OF OUR DECISIONS.
BY THEIR TERMS, ARE INAPPLICABLE TO PREVIOUS ACQUISITIONS.  64 STAT.
1125, 15 U.S.C. SEC. 18.
FN2  26 STAT. 209, AS AMENDED, 50 STAT. 693, 15 U.S.C. SECS. 1, 2.
FN3  SEE 353 U.S., AT 588, N. 5.
THE DIRECTION AND PURPOSES OF THE COURT'S OPINION FOLLOWS.
DISTRIBUTED TO THEM AS STOCKHOLDERS BY GENERAL MOTORS.
NOMINATING ANY PERSON TO BE AN OFFICER OR DIRECTOR OF GENERAL MOTORS.
ANY CHEMICAL DISCOVERY OF GENERAL MOTORS.
MOTORS IN ITS DEALINGS WITH DU PONT.
PROXY MACHINERY NECESSARY TO EFFECTUATE THIS PROVISION WAS OUTLINED.
OR OTHERWISE DISPOSE OF THEIR GENERAL MOTORS STOCK.
FURTHER ORDERS NECESSARY FOR CARRYING OUT THE JUDGMENT.
BOUND BY THE VOTING RESTRICTIONS OF THE JUDGMENT.
PRIVILEGES AS TO GENERAL MOTORS UPON A SHOWING OF GOOD CAUSE.
FN7  SEE, E.G., UNITED STATES V. CRESCENT AMUSEMENT CO., 323 U.S.
INTERNATIONAL BOXING CLUB V. UNITED STATES, 358 U.S. 242, 253.
EITHER THE NEGATIVE OR THE POSITIVE FORM OF DECREE."
LAKES TOWING CO., 208 F. 733, 217 F. 656.
PENDING DU PONT CASE.  SEE 4 ANTITRUST BULLETIN, AT 561, N. 7, 562, N.
AGAIN TO THE SERIOUS TAX PROBLEM ENGENDERED BY THE CASE.  SEE H.R.
S. 200 BEFORE THE SENATE COMMITTEE ON FINANCE, 86TH CONG., 1ST SESS.
FN11  AND SEE UNITED STATES V. UNITED SHOE MACHINERY CORP., 110 F.
MFG. CO., 96 F. SUPP.  356, 357.
CREATION ANEW OF RESTRAINT FORBIDDEN BY LAW  ..  .""
STANDARD OIL CO. V. UNITED STATES, 221 U.S. 1; UNITED STATES V.
AMERICAN TOBACCO CO., 221 U.S. 106; UNITED STATES V. UNION PACIFIC R.
STATES V. LEHIGH VALLEY R. CO., 254 U.S. 255; AND UNITED STATES V.
MADISON SQUARE GARDEN.'"  358 U.S., AT 256.
INTERNATIONAL SHOE CO. V. FEDERAL TRADE COMM'N, 280 U.S. 291, 297-298.
LESSENING OF COMPETITION  ..  .
TO SAY, TO SUCH A DEGREE AS WILL INJURIOUSLY AFFECT THE PUBLIC  ..
VIRGINIA MILK PRODUCERS ASSN. V. UNITED STATES, 362 U.S. 458.
CO., 340 U.S. 76, OR HARTFORD-EMPIRE CO. V. UNITED STATES, 324 U.S.
REVIEWING COURT."  340 U.S., AT 89.
CITED IN NOTES 7 AND 16, SUPRA.
AND XII OF THE FINAL JUDGMENT.
OF MR. JUSTICE REED); LORAIN JOURNAL CO. V. UNITED STATES, 342 U.S.

References: V. 
 V. 
 V.

 V. 
 V. 
 V.

 V. 
 V. 
 V. 
 V.

 V. 
 V.

 V. 
 V. 
 V. 
 V.

 V. 
 V. 
 V. 
 V.

 V. 
 V. 
 V.

 V.

 V.

 V. 
 V. 
 V. 
 V. 
 V. 
 V. 
 V. 
 V.

 V. 
 V. 
 V.

 V. 
 V. 
 V. 
 V.