Document: 376 U.S. 665 84 S.Ct. 1033 12 L.Ed.2d 1 UNITED STATES, Appellant,v.FIRST NATIONAL BANK AND TRUST COMPANY OF LEXINGTON et al. No. 36. Argued March 4 and 5, 1964. Decided April 6, Daniel M. Friedman, Washington, D.C., for appellant. Robert Odear, Lexington, Ky., appellees. Opinion of the Court by Mr. Justice DOUGLAS, announced BLACK. This is a civil suit in which United States charges that consolidation First National Bank Trust Co. Kentucky (First National), Security Lexington (Security Trust), to form Security), constitutes combination restraint trade commerce violation § Sherman Act an attempt monopolize 2 Act.1 26 Stat. 209 as amended, 15 U.S.C. §§ 1, 2. The plan was submitted Comptroller Currency he, pursuant provision Merger 1960, 74 129, U.S.C (Supp. IV) 1828(c), requested received reports probable competitive effects proposed from Attorney General, Federal Deposit Insurance Corp., Board Governors Reserve System. Each report concluded would adversely affect competition among commercial banks Fayette County. Nevertheless, approved on February 27, 1961; it effected this filed same day. District Court, while agreeing Currency's approval did not render immune challenge under Act,2 held no had been shown. 208 F.Supp. 457. case here direct appeal. 29. We noted jurisdiction. 374 824, 83 1864, 10 1049. 3 agree with banking one relevant market3 determining issue case. In County are only financial institutions authorized receive demand deposits offer checking accounts. They also county accept time partnerships corporations make single-payment loans individuals4 industrial businesses. Moreover, wider variety services than other institutions, e.g., deposit boxes, Christmas Clubs, correspondent bank facilities, collection services, trust department services. should be judged light its effect County.5 record establishes here, v. Philadelphia Bank, 321, 1715, 915, 'factor inconvenience' does indeed localize 'as effectively high transportation costs industries.' U.S., at 358, 1739, 915. Practically all business originates Only 4.8% National's accounts 4.5% Trust's were depositors who maintain offices Lexington. dollar volume percentage 2.8 each bank. Apart large national companies, businesses area restricted their working capital loans; outside do negligible amount county. There corporate fiduciaries 5 turn then facts alleged Act. 6 Prior relative size compared five competitors follows: Assets Deposits Loans 7 National........... 39.83% 40.06% 40.22% 8 Citizens Union........... 17.06 16.78 16.41 9 Commerce......... 12.99 13.32 14.46 Trust........... 12.87 11.88 13.98 11 Central Bank............. 9.14 9.66 8.85 Second National.......... 8.10 8.30 6.09 established larger remaining combined: 13 Security........... 52.70% 51.95% 54.20% 14 16 17 18 consolidation, close business. Between them they 94.82% assets, 92.20% earnings, 79.62% accounts: Number Dept. Earnings Accounts 19 Trust... 50.55%. 46.91% 54.31% National... 44.27 . 45.29 25.31 Union... 3.41 4.21 16.01 National.. 1.33 .63 2.12 Commerce.. .44 2.96 2.26 20 'predatory' purpose. But we think clear significant will eliminated consolidation. testimony three four seriously ability compete over years; 'image' 'bigness' powerful attraction customers, advantage increases progressively disparity size; multiplicity extra field new company could tends foreclose there. 21 elimination between unreasonable case, think, governed Northern Securities States, 193 197, 24 436, 48 L.Ed. 679, progeny. Pacific Great operated parallel lines west Chicago. A holding acquired controlling stock company. adjudged without reference or determination extent traffic combined roads still subject some competition. It enough two competed, insubstantial put end it. Id., 326—328, 452—453, 679. 22 Union R. Co., 226 61, 33 53, 57 124, tradition. Acquisition interest Southern violate As illegal because inter se merging strength weakness whatever remained. said: 23 'It urged infinitesimal when gross transacted both roads, so small incidental ought within law; but amply shows that, these great deal compete, comparatively part sum total traffic, state interstate, carried them, nevertheless such competing volume, amounting many millions dollars. Before transfer stock, active systems; reason power arising has since placed common control. means part, valuable interstate thus directly affected.' 88—89, 58, 124. 25 Reading 253 , 40 425, 64 760, third series. brought control carriers coal companies. That 'without more' 59, 433, 760. fourth series 259 214, 42 496, 66 907, acquisition Pacific—a connecting link transcontinental shipments competitor Pacific—was earlier cases6 27 'These cases, collectively, establish system railroad cannot acquire another, nor substantial vital thereof, suppress, materially reduce free normal flow channels trade.' 230—231, 499, 907. 28 need go far went Yellow Cab 332 218, 225, 67 1560, 1564, 91 2010, where 29 '* * affected conspiracy immaterial whether charged complaint. Section outlaws restraints regardless 30 cases least stand proposition companies major factors market, merger itself standard met present view fact question share market. 31 said Columbia Steel 334 495, 68 1107, 92 1533, counter view. Corp. assets Consolidated Both made fabricated structural steel products, former selling nation-wide basis, latter States. conclusion lawful reached after observed, alia, rate structures location Steel's fabricating subsidiaries, unable Consolidated's 511—518, 529—530, 1116—1119, 1125, 1533. must confined special facts. 32 'In what restraint, compelling significance; look rather controlled, competition, action springs requirements purpose monopolize, development industry, consumer demands, characteristics undertake prescribe any set figures measure reasonableness corporation's enlargement activities purchase competitor. command market varies setting factor placed.' 527—528, 1124, those clearly point way, have seen. Where, our Act, reach questions posed 34 Reversed. 35 J stice BRENNAN WHITE circumstances presented rest reversal, however, solely relied quoted applied compel reversal. 36 HARLAN, whom STEWART joins, dissenting. 37 Court's return discarded theory anti-trust law, little future importance. decision last Term Clayton 18, applicable mergers surely marks like one, Government relies Since, doomed novelty reports, become vehicle turning clock back antitrust law days long past, I am constrained more merely register my dissent. I. 38 Stripped embellishments, opinion amounts invocation formulas numerology presumption good things come usually, if always, packages.1 'facts Act,' ante, p. 668, relies, are: (1) before consolidation; (2) position limited business;2 (3) 'testimony 39 adverts provided characterized district judge heard seemingly 'based upon surmise lacking factual support.' 457, 460. Since suggests regarding evidentiary finding trial court 'clearly erroneous,' accepted 338 338, 341—342, 70 177, 179, 94 150, leaving basis statistics unquestionably showing big bigger. embellishment adorns 'where pp. 671-672 sole support proposition, defended independent reasoning whatever, 'railroad cases,' reiteration forms bulk opinion.3 questionable involved massive systems4 'two extensively engaged erstate commerce'5 relevance situation. question, explored. 41 Colubmia cited here: 'control another violates *,' id., 531, 1126, relegated footnote stated 'examine determine now approve either language holdings.' Ibid. cases' found 'so dissimilar presented' 'furnish guidance' deciding later Beyond explicit rejection further implicit portion quotes, 672. market.' 527, 1523. 43 Quite obviously, alone sufficient answer charge, pointless attend out reiterated approvingly regard. 44 If regard criteria enumerated Steel, none except perhaps favor here. Although purposes meaning absence context,6 may admitted volume7 controlled large. So test, speak against appellee. 45 On hand, attested findings refuted even mentio ed opinion: 46 'As December 31, there operation beside Company Company, banks, namely: 47 'Citizens $27,876,000, $24,569,000 net discounts $14,457,000; 'Bank Commerce, $21,230,000, $19,500,000 $12,738,000; 49 'Central $14,930,000, $14,144,000, $7,799,000; 50 'Second $13,240,000, $12,157,000 $5,362,000. 51 'Before herein referred to, successfully other. 52 officials employees defendant, numerous witnesses, most men experience banking, testified opinion, lessen tend create monopoly field. 53 'According testimony, merged community substantially restrain banking.' F.Supp., 459—460.8 54 motive behind indicated below, similarly unchallenged, appears result program expansion invidious scheme secure local Any doubts score removed concession government counsel oral argument. evidence anticompetitive 55 nothing below pertinent laid down Steel—the characteristics—which supports conclusion.9 sum, analysis ends begins; collapses into agreed premise 'big.' III. 56 truth is, course, anything, masqu rading garb One can hardly doubt comes us false colors surprise Government. See dissenting supra, 373, 1746, No sympathy respect having 'at outset elected proceed Times-Picayune Pub. 345 594, 609, 73 872, 881, 97 1277, 'the up stringent law,' 610, 1277. pernicious allowing change horses midstream quite form10 goes beyond and, revitalization properly moribund rule law. today's precludes possibility Congress out. plainly intend measured considerations industries. Characteristic indications, detail 374—386, 1747—1753, following excerpt Senate Report bill became IV, 1963) 1828(c): 58 'The committee wants crystal intention various particular outweigh factors, however favorable unfavorable, not, themselves, decision.' S.Rep.No. 196, 86th Cong., 1st Sess., 24. 59 Adherence principles enunciated leave room accommodation framework laws features recognized Congress. difficult see how peculiar which, reason, lead different result, bludeon strikes combinations well fault 'bigness.' 60 affirm. Sections provide part: 'SEC. 1. Every contract, otherwise, conspiracy, several foreign nations, hereby declared illegal. 'SEC person shall combine conspire persons, demed guilty misdemeanor *.' 350—355, 1734—1737, desposition find unnecessary Small loan personal $800 less rates higher banks. carry deposits, real estate generally shorter duration offered savings associations insurance used geographical saying 'since concentrations population counties banks.' Two decided Standard Oil New Jersey 221 502, 619, reason.' Compare 534, 1127, signling aspect banks' unclear, regarded 667 note 3. majority's disposition reasons believing (monopoly) affirmed. 671, wholly irrelevant. 679; 124; 26, 363, 1741, 'a produces firm undue results increase concentration firms inherently likely *' concerned application 612, 882, 'no magic inheres numbers,' statement 528, '(t)he 'total $65,069,000, $58,673,000 $35,434,000.' 459. Trust, $21,033,000, $17,402,000 $12,317,000.' contrary evidence, presidents 'expressed considerable fear serious loss disastrous them,' 460, discredited Court. 674. With turns past notes number decreased 1929 1938; statistic, home doubtful significance context, particularly period during decrease occurred. Government's president his sulted through (years consolidation) principally enable 'to better National.' fact, years concentration. thing say, Times-Picayune, 608, Act's specific standards illuminate public policy designed subserve treat interchangeable. 609—610, 880—881,

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