Legal Document

370 U.S. 294 82 Supreme Court Reporter 1502 8 United States Reports Lawyer’s Edition 2d Series KF101.8 U54 510 BROWN SHOE CO., Appellant,v.UNITED STATES. Number 4. Argued Dec. 6, 1961. Decided June 25, 1962. [Syllabus from pages 294-295 intentionally omitted] Arthur or Haw. Hawai‘i KFH45 A2 Dean, New York City, for appellant. Sol. Gen. Archibald Cox, appellee. Mr. Chief Justice WARREN delivered the opinion of Court. I. 1 This suit was initiated in November 1955 when Government filed a civil action District Eastern Missouri alleging that contemplated merger between G. R. Kinney Company, Incorporated (Kinney) and Brown Shoe (Brown), through an exchange stock, would violate § 7 Clayton Act, 15 Code KF62 18, Annotated KF65 U5 18. The as amended, provides pertinent part: 2 'No corporation engaged commerce shall acquire, directly indirectly, whole any part stock other share capital * another also commerce, where line section country, effect such acquisition may be substantially to lessen competition, tend create monopoly.' 3 complaint sought injunctive relief under restrain consummation merger. 4 A motion by preliminary injunction pendente lite denied, companies were permitted merge provided, however, their businesses operated separately assets kept identifiable. then effected on May 1, 1956. 5 In Court, contended Brown—the third largest seller shoes dollar volume States, leading manufacturer men's, Women's, children's shoes, retailer with over 1,230 owned, controlled retail outlets1—and Kinney—the eighth company, volume, among those primarily selling itself large 350 outlets—'may competition monopoly' eliminating actual potential production national wholesale shoe market sale at Nation, foreclosing 'a represented Kinney's outlets whose annual sales exceed $42,000,000,' enhancing Brown's competitive advantage producers, distributors sellers shoes. argued 'line commerce' affected this is 'footwear,' alternatively, 'line(s)' are 'men's,' 'women's,' 'children's' considered, 'section country,' within which anticompetitive judged, Nation whole, each separate city its immediate surrounding area parties sell retail. 6 shown not endanger if 'line(s) 'section(s) country' properly determined. urged only age sex intended customers considered determining relevant but differences grade material, quality workmanship, price, customer use resulted establishing different lines commerce. While agreeing that, regard manufacturing, geographic assessing upon country retailing, must vary economic reality central business district 'standard metropolitan area'2 smaller community. further both manufacturing level level, industry enjoyed healthy vigor not, event, diminished proposed because manufactured less than 0.5% retailed 2% Nation's rejected broadest contentions parties. found 'there one group classifications understood recognized entire public—the classification into 'women's' independently.' On hand, '(t)o classify could unfair unjust; them impractical, unwarranted unrealistic.' Realizing 'the areas effective retailing purposes cannot fixed mathematical precision,' 'when determined reality, 10,000 more population contiguous area, regardless name designation, store (operated, franchise, plan)3 located.' 9 Government's contention combining facilities women's, market. However, did find likely foreclosure manufacturers manufacturers' distribution separately, throughout Nation. alone every located. 10 here differ slightly made before order fully understand appraise these assertions, it necessary set out some detail Court's findings concerning nature place industry. 11 Industry. 12 although domestic scattered number manufacturers, small occupied commanding position. Thus, while 24 produced about 35% top 4—International, Endicott-Johnson, (including Kinney) General Shoe—alone approximately 23% 65% 24. 13 1955, nonrubber 509.2 million pairs, 103.6 pairs men's 271 women's 134.6 shoes.4 normally factories. 14 public buys 70,000 outlets, 22,000 which, derive 50% gross receipts classified 'shoe stores' Census Bureau.5 These stores generally (1) only, (2) (3) (4) 'definite trend' acquire outlets. For example, International Company had no 1945, 1956 acquired 130; 80 1945 526 1956; Corporation America, same period increased holdings 301 842; Melville 536 947; Endicott-Johnson 488 540. Brown, itself, own prior 1951, 845 Moreover, 1950 nine independent chains, operating 1,114 stores, have become subsidiaries firms ceased operations. 16 And once there parent-manufacturers supply ever increasing percentage outlets' needs, thereby effectively competing accounts. Manufacturer-dominated 'drying up' available producers. 17 Another exist decrease plants appears been concomitant 1947, 1,077 1954 decreased 10% 970.6 Shoe. 18 participant, moving factor, trends. Although experimented several times disposed all. again began seek acquiring operator leased departments, Wohl (Wohl), 250 departments department States. Between 1952 acquisitions: Wetherby-Kayser (three stores), Barnes & (two Reilly departments), Richardson Store (one store), Dallas (not connected Wohl) (leased Dallas). 1954, major acquisition: Regal time, plant producing 110 19 corporations lead companies. Thus bought 12.8% total purchases subsequently 21.4% 32.6% 1955. Wetherby-Kayser's 10.4% after. Regal, previously sold worth $89,000 $265,000 $744,000 Brown. 20 During seven solely manufacturing. As result, fourth 25.6 4% footwear production. 21 Kinney. 22 principally family-style chain At time trial, 400 270 cities. make 1.2% all volume. 1.6% pairage Of sales, 1.1 1% shoes; 4.2 1.5% 2.7 shoes.7 23 addition extensive activity, owned four combined output making twelfth obtain 20% plants. merger, Brown; conceded reasons8 Kinney, had, 1957, outside supplier supplying 7.9% needs. 25 It setting held Act. ordered divest completely capital, interests operate greatest degree possible concern pending complete divestiture, refrain thereafter having interest assets, file court 90 days plan carrying divestiture decreed. stated retain jurisdiction cause enable apply might enforce judgment. Prior submission plan, notice appeal jurisdictional statement seeking review judgment below entered. II. 26 JURISDICTION. 27 Appellant's cites basis our Expediting Act February 11, 1903, 32 Statutes-at-Large 823, 29, 29. antitrust complainant direct final court.' (Emphasis supplied.)9 does contest appellant's claim jurisdiction; contrary, moved summarily affirmed, conceding present merits We deferred ruling summary affirmance noted probable appeal. 363 825, 1595, 1521.10 28 suggested bench during oral argument since include specific dissolution Brown-Kinney reserves filing plans implementing 'final' response suggestion, briefs contending we do dispose case posture. mere consent consideration decision cannot, confer See American Fire Casualty company versus Finn, 341 17—18, 71 534, 541, 95 L.Ed. 702; People's Bank Belville Calhoun, 102 256, 260—261, 101; Capron Van Noorden, Cranch 126, 127, 229. Therefore, sources threshold inquiry appropriate disposition comes us. Revised Rules 15(1)(b), 23(1)(b), U.S.C.A.; Kesler Department Public Safety, 369 153, 807, 641; Collins Miller, 252 364, 40 347, 64 616; More, 159, 397. 29 requirement entered lower right attaches has ancient history federal practice, first appearing Judiciary 1789.11 With occasional modifications, remained cornerstone structure appeals courts.12 adopted essentially practical tests identifying judgments are, 'final.' See, e.g., Cobbledick 309 323, 326, 60 540, 84 783; Market Street Railroad Comm., 324 548, 552, 65 770, 773, 89 1171; Republic Natural Gas Oklahoma, 334 62, 69, 68 972, 977, 92 1212; Cohen Beneficial Industrial Loan Corp., 337 546, 69 1221, 1225, 93 1528; DiBella 121, 124, 129, 654, 656, 614; cf. Federal Trade Comm. Minneapolis-Honeywell Regulator Co., 344 206, 212, 73 245, 249, 97 245; KF105 F3 M. Schaefer Brewing 356 227, 232, 78 674, 677, 721. pragmatic approach question finality essential achievement 'just, speedy, inexpensive determination action':13 touchstones procedure. 30 most cases cited jurisdiction, issue 'finality' raised discussed few occasions particular orders suits applicable light claims they insufficiently so preclude Compare Schine Chain Theatres 329 686, 67 367, 91 602, 110, 947, 1245. passed without comment adjudications merits. bound previous exercises power act questioned sub silentio, Tucker Truck Lines, Inc., 33, 38, 67, 54; ex rel. Arant Lane, 245 166, 170, 38 94, 96, 62 223, neither should disregard implications exercise judicial authority assumed proper years.14 Cf. Stainback Mo Hock Ke Lok Po, 336 368, 379—380, 606, 612, 741; Radio Station WOW Johnson, 326 120, 125—126, 1475, 1478, 2092. 31 think decree sufficient indicia us hold appealable time. note, first, Government. Every prayer upon. Full expressly required. Appellant permanently enjoined business, defendant suit. single provision requiring appellant propose future court's divestiture. reach of, affirm, below, sole remaining task will acceptance full supervision accepted. Further rulings administering decree, facilitated fact defendants required maintain books lite, sufficiently subordinate to, issues presented posture now.15 attack such; facts case, alleged proved Government, proper. propriety disputed 'all nothing' basis. ripe now, will, thereafter, foreclosed. Repetitive occur here. supra, 1480; Catlin 229, 233—234, 631, 633, 911; 325, 330, 541. second supporting view character still Such requires careful, often extended, negotiation formulation. process take vacuum, but, rather, changing place, buyers bankers accomplish forced sale. unsettling influence uncertainty initial, underlying compelling difficult assuring expeditious enforcement laws. delay withholding until details approved reviewed well mean change conditions pronounced render impractical otherwise unenforceable very asset litigation held. interest, parties, lose 33 Lastly, holding instant and, thus, appealable, require departure settled course practice. consistently decrees contemplating either comparable remedial formulation entry precise ordered. No instance following asked consider here, party subject later brought back error finally approved.16 two years ago, unanimous accepting affirming similar amended juncture litigation. Maryland Virginia Milk Producers Association 362 458, 472 473, 847, 856, 880.17 fear piecemeal adherence existing procedure can support history. substantial body precedent supports considerations discussed. believe contrary result inconsistent gave name. III. 34 LEGISLATIVE HISTORY. 35 come based allegations violated 1950.18 amendments culminated efforts years, parts Commission members Congress, secure revision laws many observers ineffective form. Sixteen bills amend 1943 1949 introduced hearings three sessions.19 legislative attention measure, broad, general language selected Congress expression whether consistent intent legislature. E. du Pont de Nemours 353 586, 591—592, 77 872, 876, 1057; Schwegmann Bros. Calvert Distillers 384, 390—395, 745, 748, 1035; Morton Salt 37, 43—46, 49, 822, 826, 1196; Corn Products Refining 726, 734—737, 961, 965, 1320. 36 enacted 1914, original prohibited lessening companies, monopoly explicit terms, construed bar another.20 Nor appear competitor.21 proponents terminology employed provisions accident unawareness inimical acquisition, fails views.22 possibility discussed,23 important conceived directed development secret competitors purchase competitors' stock.24 37 was, long deficiencies enacted. Its Annual frequently amendments, along lines: 'plug loophole' exempting acquisitions coverage second, proposing give notification plans.25 Final Report Temporary National Economic Committee recommended changes focusing proposals.26 Hearings incorporating 1950, none reached floor plenary consideration. bill eventually confined embracing Act's terms conducted Eightieth Eighty-first Congresses, far-reaching examination undertaken. unmistakably clear indication standards wished courts judging legality mergers. expressions point hearings, committee reports House Senate debate provide charged enforcing usable frame reference evaluate given dominant theme pervading congressional what rising tide concentration economy. Apprehension bolstered publication 1948 Commission's study corporate Statistics current studies evidence danger economy unchecked expansions mergers.27 Other desirability retaining 'local control' protection businesses.28 Throughout recorded discussion examples Congress' accelerated grounds, threat values trend toward thought pose. 39 What factors, validity specifically redrafting 7? First, doubt wish stock.29 41 Second, deletion 'acquiring-acquired' text,30 hoped plain applied mergers competitors, vertical conglomerate country.31 42 Third, apparent keystone erection barrier saw concentration, arresting incipiency. dynamic force; assure brake force outset gathered momentum.32 43 Fourth, closely related third, rejected, inappropriate problem remedy, application combinations dealing arising Sherman early 7.33 44 Fifth, tool preventing demonstrable anti-competitive effects, stimulation flow When breadth expressed, supporters indicated impede, combination compete larger dominating market, nor financially failing longer vital factor market.34 word 'community' description illustration desire indicate adverse effects economically significant 'section' country.35 Taken illuminates extent competition. 45 Sixth, measuring markets, defined product locus judged. adopt definition 'substantially,' quantitative shares designated qualitative merger's measured.36 46 Seventh, providing definite agencies gauge determine 'substantially' monopoly, plainly functionally viewed, context industry.37 That is, consolidation fragmented rather concentrated, seen recent domination leaders fairly participating experienced easy access markets suppliers witnessed ready new barriers prospective entrants, aspects, varying importance consideration, taken account.38 47 Eighth, used words 'may competition' (emphasis supplied), probabilities, certainties.39 Statutes existed clear-cut menaces competition; statute ephemeral possibilities. Mergers proscribed 48 against background return IV. THE VERTICAL ASPECTS OF MERGER 49 arrangements standing supplier-customer relationship characterized 'vertical.' primary vice arrangement tying segment open them, 'clog competition,' Standard Oil California 293, 314, 1051, 1062, 1371, 'deprive(s) rivals fair opportunity compete.'40 H.R.Rep. 1191, 81st Cong., 1st Sess. 8. extended nature, least denies trade customer-party arrangement. unlawful arrangements, forbids 'in country.' noted, 50 '(d)etermination predicate finding violation threatened 'within competition.' Substantiality affected.'41 51 'area (the commerce') country'). Product Market. 52 outer boundaries reasonable interchangeability cross-elasticity demand substitutes it.42 broad well-defined submarkets themselves, constitute purposes. 593—595, 57 877, 1057. submarket examining recognition entity, product's peculiar characteristics uses, unique facilities, distinct customers, prices, sensitivity price changes, specialized vendors.43 Because prohibits examine probability If exist, proscribed.44 53 Applying conclude record public; plants; rendering noncompetitive others; course, class customers. 54 Appellant, contends definitions fail recognize 'price/quality' 'age/sex' distinctions argues predominantly medium-priced manufactures occupy low-priced sells. But agreement equivalent otherwise. unrealistic accept $8.99 above.$9.00. 55 say, differences, unimportant analyzing merger; drawn products merging where, fact, exists. agree division 'unrealistic.' raises problem. sharpest criticism constituted argues, little boy wear girl's black patent leather pump' '(a) male baby growing boy's shoes.' 'infants' babies" 'misses' children's' 'youths' boys" Assuming, arguendo, boys' employ finer aid (5.8%) youths' (6.5%), misses' (6.0%) infants' babies' (4.9%). Similarly, sells (2%) (3.1%), (1.9%), (1.5%). enjoy divisions chosen employed. significant, quantities virtually type together, picture same. We, therefore, conclusion subdivide 'impractical' 'unwarranted.' 56 Geographic insofar aspect concerned, relationships value, bulk, weight consumer distribute nationwide basis, do. measured range distribution. 58 Probable Effect Merger. 59 Once defined, analysis Since diminution stem results size seldom determinative. foreclosed approaches proportions, violated; run afoul Act.45 indicates clearly stringent applying Act.46 minimis 'substantially 61 extremes, us, decisive. cases, becomes undertake various historical factors proscribe.47 purpose arrangement.48 illegality (under 7) interpreting sections Act,'49 chose identical 14, interpreted interdependence by, arrangement, 3, limited term exclusive-dealing contract, significantly greater contract Tampa Electric Nashville Coal 365 320, 81 623, 580, 332 392, 12, 20.50 reason readily discernible. usual forces brand he necessarily want desire. inherently anticompetitive, established relatively amount affected. supra. unless device attempt break Harley-Davidson Motor F.T.C. 1047, 1066, rarely51 harmonized strictures laws, preserve stimulate 305—306, 1058. contracts negotiated behest who his merit. save if, E.g., Yet escape censure involved, insure commodity customer's Similar 63 attached demonstrated H.R. 2734, evince intention 'failing company' doctrine 280 291, 89, 74 431.52 foresaw identical, market.53 involved date $72,000,000 $18,000,000. Not family industry, involve foreclosure. past behavior testimony President,54 ownership stores. operation quite analogous involving clause.55 industry.56 true, competition.57 wording prognosis merger.58 66 existence integration, found, substantiated record. tendency increasingly corollary trends them. deliberate policies account predict consequences continuing viewed. composed retailers, dynamically competitive. immunize oligopoly. Pillsbury Mills, 555, 573. commands examine.59 remarked above, economics way life preserved Congress.60 desirous formation oligopolies attendant local control business. Where numerous units, appeared anxious structure. Report, quoting approval report movement, states explicitly addressed, inter alia, problem: 'Under creates constitutes monopolize. Imminent acquires another, unlikely perceived enterprise. grows series acquisitions, accretions individually minute *. 70 'Where enterprises extending successive cumulative convert intense concerns produce supply.' S.Rep. 1775, 5, U.S.Code Cong. Adm.News Page 4297.61 see findings, facts, forth Part N Immigration Nationality Decisions opinion, convince being subjected just left unchecked, 72 integration avowed policy forcing subsidiaries, foreclose countervailing competitive, economic, social advantages. V. HORIZONTAL MERGER. An performing functions goods services 'horizontal.' depends, scope. face depend as: relative arrangement; allocates parties; fixes prices product; absorbs insulates competitors.62 horizontal occupying whatever eliminated. Section amendment, focused proscribing companies.63 gauged broader scale: again, 'necessary predicate' aspects levels businesses. too insignificant prohibitions appealed portion decision. occasion express views respect finding. companies' 75 Shoes sell: enumerated kinds characteristic 76 IV correctly analyze reasons considering criteria S.Rep.No.1775, 5—6; 593, significance commerce,' Erie Sand Gravel 291 Reporter, 2nd 279, 283 (C.A.3d Cir.); Bethlehem Steel 168 F.Supp. 576, 595—603 (D.C.S.D.N.Y.). prescribed pragmatic, factual formal, legalistic one. must, 'correspond commercial realities'64 significant. instances encompass circumstances area. Columbia Pictures 189 193—194 (D.C.S.D.N.Y.); Ass'n, 167 799 (D.C.D.C.), 880. competed fraction operated, scope 7. speaks 'any 'any' merger—at extent—is proscribed.65 79 dispute viewed vertically facilities. disagree. analyzed exceeding territory controlled.66 By one-half cities represented. recognizes characterization proper, judged testing markets. improperly should, districts cities, others, areas' communities found. test distinguish situations improper. believe, outskirts downtown areas, undoubtedly intercourse area,' environs.67 therefore environs enough shops suburban shopping centers city, yet exclude beyond significance. 83 Having delineated measured, turn lessened initially, challenges grounds above critical may, lessened. objects appropriate. says erred enter sale, Council Bluffs, Texas City St. Paul. Even assuming representative sample used, detailed city—St. Louis—a operate. establish standard image 100 particularly much Louis, others larger, climates median per capita incomes. 85 adequate true concentrated sat available, heard witnesses operated. careful conclusions variations climate wealth received sampling impact measured. how variables mentioned affect Each competitor equally even though Louis size, wealth. it. There protract already complex analyses peripheral basic sample.68 86 demonstrate soundness conclusions, substantiates undisputed statistics retail, separated persuasive foundation built. computation drafting exhibits, deny correctness reveal.69 appended exhibits opinion. They show, ranging location Topeka, Kansas, Batavia, York, Hobbs, Mexico, (by unit volume) exceeded 20%.70 cities—some line—the 20%; 40%. Dodge 57%; 49%. (ranging 33% 57%) alone, captured portions 13% 34%); intensified concentration. 118 5%. 5% lines. 87 market.71 achieving now approved, approve shares. oligopoly avoid furthered dissolve approved. Furthermore, controls adversely Testimony experience demonstrates strong, insulate vagaries locations chains alter styles renders independents unable inventories. integrated operation. wholesalers enterprise, brands retailers. operations beneficial consumers. Their expansion rendered protects. promote viable, small, locally appreciated higher costs maintenance industries resolved favor decentralization. 88 evaluating lend additional One industry.72 pointed out, has, prime example trend. Most producers capture assured wares. aim effect, numbers fewer hands, plane. absorbed aggregation nationally owned. Including franchise placed almost 1,600 7.2% Bureau,73 2.3% outlets.74 mandate tendencies curbed incipiency, giant steps striding across hundred call halt. mitigating failure inadequate resources prevented maintaining position, need meaningful sustained burden proof. correct concluding overwhelming majority affirmed. Affirmed. FRANKFURTER took case. WHITE APPENDIX 94 Sales (1955) Combined 96 Brown- Area Total 98 (pairs) (%) 99 (%)* Kans.. 31,400 23.3 34.4 57.7 Tex.. 32,300. 27.8 20.7 48.5 Iowa. 68,200 27.3 15.4 42.7 Marshalltown, 72,600 21.8 13.4 35.2 Uniontown, Pa.. 144,900. 16.3 18.8 35.1 Ardmore, Okla.. 62,600. 14.4 20.3 34.7 Keokuk, 34,600. 18.4 14.8 33.2 Ottumwa, 67,200. 28.2 4.3 32.5 Pine Bluff, Ark.. 63,100. 21.6 9.4 31.0 Lawton, 95,200. 20.2 9.8 30.0 Borger, 50,100. 15.5 13.8 29.3 Roswell, N. Mexico. 80,900 11.7 15.8 27.5 224,000. Coatesville, 46,200. 17.2 10.0 27.2 50,800. 22.2 5.0 Iowa 72,200. 15.3 10.7 26.0 Dubuque, 119,000. 14.3 11.5 25.8 Carlisle, 55,500. 17.5 5.9 23.4 Texarkana, 65,800. 15.9 7.5 Fort Dodge, 104,000 10.8 12.5 Steubenville, Ohio. 207,200 14.9 8.1 23.0 Mason 102,400 8.3 22.7 Marion, 91,600. 6.7 15.7 22.4 Pueblo, Colo.. 152,400. 14.1 Hibbing, Minn.. 44,600. 18.1 3.4 21.5 Fargo, Dak.. 162,800. 6.2 Franklin, 32,100. 7.1 Corpus Christi, 331,500 2.4 19.0 21.4 Y.. 75,300. 13.2 21.3 McAllen, 90,200. 13.0 Concord, H.. 57,300. 15.6 4.7 Sioux 222,000 7.7 12.3 20.0 Muskogee, 68,100. 7.6 12.2 19.8 Rochester, 130,100 11.2 8.6 Bartlesville, 63,100 3.9 19.7 Berwyn, Ill.. 95,900. 17.8 1.9 Clarksburg, W. Va.. 134,600 19.4 Davenport, 230,300. 6.4 12.8 19.2 Freeport, 88,000. Grand Forks, 121,100 6.1 18.9 Muskegon, Mich.. 172,000. 4.0 Baton Rouge, La.. 398,100 3.8 18.7 Des Moines, 562,800 4.9 Women's - Continued Springfield, Mo.. 210,400 3.7 18.6 Laredo, 166,200. 3.2 18.5 Cloud, 88,400. 9.6 8.9 Smith, 165,200 11.8 6.5 18.3 Kingsport, Tenn.. 106,200 5.1 Gulfport, Miss.. 99,700. 14.2 17.9 Cortland 55,300. 5.5 17.7 Fremont, Nebr.. 56,100. 5.6 17.4 Manitowoc, Wis.. 60,800. 13.9 3.5 Salina, 102,800. 3.3 17.1 Muncie, Ind.. 158,000. 7.9 9.0 16.9 Portsmouth, 141,200 9.2 7.2 16.4 Reading, 417,200. 6.0 10.4 Greensburg, 117,800. 8.0 Little Rock, 468,100 Flint, 628,300. 13.1 Wichita, 666,600. Lubbock, 305,500. Kingston, 112,100. 11.6 Emporia, 44,300. 0.8 15.1 Johnson 75,800 12.0 3.1 Odessa, 167,700. 7.0 Bloomington, 129,600 Elgin, 126,900. 14.7 Enid, 140,400. Burlington, 74,500. 14.6 South Bend, 434,500 1.6 Galesburg, 95,600. 12.4 2.1 14.5 Abilene, 184,300. 2.0 Meridian, 120,000. 10.6 Toledo, 821,800. 1.3 12.6 Tulsa, 749,000. 6.9 Colorado Springs, 225,600 13.6 Williamsport, 153,400 4.1 13.3 Mankato, 99,900. 5.3 Green Bay, 220,000. 5.2 12.7 Waterloo, 224,100. 10.2 2.3 Falls, S. 172,000 7.4 Glens 115,300 4.6 Kansas 181,300 3.6 Oklahoma 839,500 1.8 Hutchinson, 156,400 11.4 Kenosha, 107,700. 11.3 Pottsville, 147,000. San Angelo, 113,800 11.1 Wheeling, 311,600 Ithaca, 82,300. 5.8 10.5 Zanesville, 138,800 1.5 Mobile, Ala.. 473,100. 1.0 Pa... 344,200. 5.1. Gary, 414,400. 4.3. Decatur, 221,800. Amarillo, 334,100. 8.8 Minneapolis, 1,909,900 8.4 Forth Worth, 1,092,100 1.4 Waco, 170,400. 5.4. 2.9 Altoona, 241,000. 4.8 Lancaster, 316,400. Rockford, 377,400. Saginaw, 326,300. Rapids, 650,300 Jacksonville, Fla.. 739,200 0.6 7.3 Columbus, Ga.. 308,300. Evansville, 486,600 Paul, 1,013,200 6.6 Montgomery, 437,100 1.7 Peoria, 469,300. 2.8 304,400 Milwaukee, 1,984,900 0.3 Antonio, 1,476,000 5.7 Cedar 256,600 1.2 5.1APPENDIX B 20,900. 20.8 51.8 14,200 35.5 13.5 49.0 30,900 36.6 43.1 28,400. 21.0 41.7 69,100. 25.4 41.2 22,700. 24.8 16.1 40.9 43,500. 31.2 34.6 34,100. 14.0 19.3 33.3 30,500. 30.4 2.5 32.9 25,200. 32.7 27,600. 12.1 31.3 43,200. 30.9 14,500. 45,200. 24.5 4.5 29.0 Freemont, 25,400. 28.9 28,600 7.8 28.5 26,000. 28.1 65,700. Mashalltown, 32,900 22.8 27.0 Cortland, 25,100. 26.2 48,100. 40,000. 17.0 101,600. 22.9 29,800. 34,300 53,900. 17.6 22.1 20,100. 21.9 32,700. 30,900. 10.9 46,600. 8.7 21.2 46,400. 16.8 63,700. 59,100. 9.9 37,300. 17.3 70,900 180,400 16.6 54,900 100,600 109,300. 57,500. Children's 54,400. 302,200. 15.2 102,300 74,900. 3.0 47,100. 62,900. 9.7 78,000. 93,900 339,500. 150,300 4.4 104,400. Fargo. 73,800. Wheeling 141,200. 151,400. 8.5 212,200 9.5 197,000 53,400. 11.9 225,100 52,300 100,500. 6.3 495,100 198,100. 187,800. 7.0. 58,800 95,400. 69,600 Tex... 77,200. 6.3. 138,500. 66,600. 899,800. 0.4 143,400. Tampa, 251,600. 380,600 45,300. 6.8 865,800 212,700. 139,700. 189,100. 372,500. 335,100 558,500 0.7 164,500 Brownsville, 100,500 147,900. 459,300. Detroit, 2,483,900 5.0APPENDIX Contract 12,000 23,900. 23.6 28.700. 36,300. 8.2 19.5 19,100. 58,100. 10.3 21,200. 21,400. 17,600. 9.3 23,200. 10.1 12,200. 26,000 21,900. 11.0 2.6 126,500 16,900. 40,500. 24,100 21,100. 45,400. 34,400. 36,600. 9.1 39,200. 42,800. 48,400. 53,600. 5.9. 49,600. 63,000. 85,500. 0.5 59,700 28,900 87,900. 31,400. 53,000. 65,600. 79,000 80,300. 127,400. Asheville, C.. 80,900. 83,900. 65,000. 2.6. 44,900. 5.4 179,000. 159,200. 254,300. 0.9 86,100 Defendant Comparison counties (Appellant's percentages adjusted stores) County SMA percentage2 percentage1 Name 35.8 Galveston, --------- Philadelphia, Wapello County.-------- 26.5 Fayette 25.3 Miller 23.9 24.9. Marshall -------- 22.6 24.2. Omaha, Tex. 24.0. Carter 20.4 Muskogee 16.5 Ohio 17.5. Wheeling-Steubenville Dak. 17.1. Forks Cerro Gordo 16.0 Ark. 15.2. Rock North Webster Chicago, 2.5. Moline, Island 12.2. Cass 10.6. Muskegon 10.7. Pittsburgh, Ill. 11.0. McLean Kans. Mo. Colo. El Paso Okla. 10.0. CLARK, concurring. alternative declares lie thus deprives intermediate benefit Appeals. Under system entitled appellate review, usually note jurisdiction. carry function Appeals resolving questions, substantial. great expedition, 1/2 presents whether, country.* To me clear. probability' makes types country; likewise deals handle sales; Nation; strategically standpoint towns population; (5) manufacturers; (6) earlier five pattern increase resulting loss (7) after materially shipments 50%; (8) requirements types. emphasized activity integrate handled keeping read avoids charge splintering line. Likewise, points regional staked artificial municipal boundaries. scale conclude, define shoes—those ordinary store—and country. follow, i.e., integrating created 'reasonable manufacture affirm. HARLAN, dissenting concurring part. dismiss lack believing prematurely final. holds appropriate, noting my dissent holding, importance. aspect, concur join go far decide entertain depends 1903. statute, form, (15 29): 'In said (anti-trust) Acts, wherein complainant, Court.' added.) 'sought speedy equity AntiTrust Act.' Cooperative Canneries, 279 553, 558, 423, 425, 838. emerges meager H.R.Rep.No.3020, 57th (1903); Cong.Rec. 1679, 1744, 1747. 'Congress matters precluded Appeals) interlocutory decree.' entirely expedite eliminated time-consuming delays occasioned taking despite doubtless reappear docket unsatisfactory paving dual government anti-trust intricate involved. Whether advisable administration considerations—and questions means free doubt—I construction violence accepted meaning 'final judgment' system. directs 'relinquish assets' enjoins interlocking corporations. specify carried order' grants submit 'oppositions suggestions thereto.' reservation retention ministerially executing Ray Law, 179, 404; French Shoemaker, Wall. 86, 98, 270. remarks 607—608, 884, 1057 concluded form matter 'could consequences,' 179 721, 741, conduct manner ought Hence farfetched assume remedy contested, relating anticipated 366 316, 1243, 318. exacting obligation cast commented last Term. 318, 'particularly judge, satisfy ourselves redress proved.' U.S., 1248; Boxing Club 358 242, 253, 251, know nothing 'this phase case,' Gypsum 340 76, 160, 169, Exactly separation accomplished determined, knowing satisfactory Despite reviews 'merits' 'relief' stages, 'sufficient finality' (ante, 308, S.Ct., 1514) notwithstanding fixed. discrete considerations, serves overcome hitherto law.1 First. suggests proceedings 'sufficiently appeal' permit separately. judicially exception principle never heretofore utilized awarded uncertain. possibility, 1528, Forgay Conrad, How. 201, 404, irreparable harm, denial issue. 1225; How., 204, 404. complaint's prayers diversified resolution branch 'is unaffected happens entangled.' WOW, 1479, 2092; Carondelet Canal Navigation Louisiana, 233 362, 372—373, 627, 629, 1001; compelled await particularized granted suffer irremediable loss; indeed, allowed proceed delay, executed fortuitously 'entangled' complaint. seemingly mandatory tone 'divestiture' remains inoperative Unlike relied up knows exactly surely 'which ends leaves execute judgment.' 233, Covington First Bank, 185 270, 277, 645, 648, 906. Second. finds 'character suit.' Ante, 309, 1515. 'careful, formulation,' ante, 1515, unenforceable. Apart appropriately addressed indeed formulate interrelated conditions, issued Consequently, Courts' reasoning, appearance imaginative likelihood. stating basis,' 'it foreclosed,' hardly deems unsatisfactory. Indeed, side such, independently runs execution damaging, hazards settled? maintained affirmed improbable. 'negotiation formulation' instance. Third. regarding legion echoed answer gone unnoticed: made, case.' 172, 397; Snow 346, 354, 1059, 1063, 207; Cross Burke, 146 82, 87, 22, 23, 896; Louisville Trust Knott, 191 225, 236, 119, 123, 159; 195 252, 68, 70, 182; 223; 379, L. Atlantic 54. past, overlooked came stage justify statute. amendment afforded. 'pragmatic approach' called Civil Procedure, action.' 306, 1513. misconceives presented. turning Procedure balance fit obvious, tribunal instituted doing, limit reviewing judgments.' determinations, rule exception, survive development, pursuant 1925, discretionary certiorari Congress.2 mounting dockets certainly relieving arduous searching voluminous trial judge's supportable. legal novel unsettled especially initial compared variety law. modern doubted truly expedition underlay passage venture reappraisal 'expedition' also, over-all, achieved returned Appeals, leaving deemed deserving review. things stand deal unnecessary expenditure risk made. Further, bid 'policy' arguments Courts crowded authorized hear question. 1292(a)(1), 1292(a)(1) 'where So long, continues commend limitations, judgment,' appeal, juncture, dismissed. MERITS. nonetheless far-reaching, duty affirms am prepared subscribe implied narrow concise terms: Are be, sustainable? words, indefinite manifest proscribe sort? illegal lumped together 'lines failed caused 'substantial.' untenable. dispositive think, 'vertical' reasonably foreseen supported record, suffice condemn 7, 'horizontal' transaction. 1. 'Line Commerce.'—In commerce'—men's Whatever merit narrowly vantage ultimate (whose pocketbook, range), manufacturer. contains tending prove managed shoe, factories reveals grades undue difficulty, shifted producion versa. flexibility manufacture, accurately wearing-apparel components treated analysis, production, seem realistic compartmentalization buying public. able, albeit expense, shift deciding monopolized lessens product. Adelman, Aspects Opinion, Va.L.Rev. 684, 689—691; 495, 510—511, 1107, 1115, 1533; D.C., 576. 592. added) broadly chooses it.3 rests ultimately appraisal considerations. Discovering Act,' 1057, statutory license abdication function. generally. 2. 'Section Country.'—This involves localities suitable geographical appraising whole. (limited merger) contested caveat order, however. decline uniform proves lessened, serious felt certain localities. 3. 'Substantially Lessen Competition.'—The 'tend evidence, probability.' (1950), 4298. numbered 352, figure trial. Nearly located population. 116 year. year pairage. supplied plants, remainder coming 197 sources.4 outside-source records reveal year's diverse manufacturers. Brown) $50,000 (Brown, Georgia Manufacturing Co.) productive purchaser affirmatively shows suppliers, State Pennsylvania, Hampshire, 40% seems doubt. emerge indisputably record: purchasing manufacturer's store. instance, quantity chains.5 adapted style customarily stores.6 8% thereafter. dollars, 1957. accurate reflection proportion retailers retail-sales includes affiliated. larger—though unavailable us.7 controlling were, 'quantitative substantiality,' compare injurious Stations formula applicable. affiliation organization dissenters contractual tie waging suppressing 1063. able captive inevitably diminishes compete. replace displaced choice including patronage unaffiliated, potentially withdraws standpoint, level. behind it, vies patronage. manufacturer-owned outlet, profit margin outlast competitor. prevent offered elsewhere.8 probable, touch 'substantial' Our proposition insubstantial. carefully 'substantiality case' factors. 329, 629. Two strength parties' pre-emption therein.' Ibid. When, retailers' country's chain, latter's displaced, fall wayside, 'remote' 'insubstantial.' respecting towards 'oligopoly' integration. short convincing exists.9 warranted apart findings. Accordingly, bowing affirmance. complaint, 470, 570 'Franchise Program' 190 'Wohl Plan.' Franchise Program agrees Plan similarly concentrate credit merchandising aid. 66, infra. addition, 'The concept defining (is) daily travel communication 50,000 inhabitants outlying (except England) consists counties. England, town county basis.' II Bureau Census, Business: Facts Industry, Production, Kind Footwear: Table Production M31A 06, Defendant's Exhibit MM. 'nonrubber shoes' sandals play excludes canvas-upper, rubber-soled athletic slippers. figures Business. enumeration, included distinguished Retail Trade, Single Units Multiunits, BC58—RS3, described, infra, Bureau's stores.' 1958 Manufacturers, MC 58(2)—31A—6. 1958, 872. extracted submitted interrogatories. GX 48—53. brief, exception. internal operations, classifies 'growing girls" follow treatment Clark Gamble, President Company: 'It feeling, getting field covering, feeling going income neighborhood probably necessity up-grading adding successful doing category. Besides good investment stabilize earnings.' T. 1323. matters, decree. 424, After joint postpone Term granted. 1521. 84, 1291, 1291. 1292, 1292; Fed.Rules Civ.Proc. 54(b), 1651, 1651; Ex parte 226 420, 281; 258, 1035, 1351; Beacon Theatres, Westover, 359 500, 948, 988. Reading 286 (D.C.E.D.Pa.), Decrees Judgments Antitrust Cases (hereinafter 'D. J.') 575, 576—577, part, 253 26, 760; Lead 513, 534—535 (D.C.S.D.N.Y.), D. Judge 2846, 2851, 319, 1634, 2077; Timken Roller Bearing 284, 318 (D.C.N.D.Ohio) (relevant reprinted 602 n. 971, 976, 1199), modified, 1199; Machinery 295, 352 353, 354 (D.C.D.Mass.), 347 521, 699, 910; 799, 809 practice modifications decrees, decrees. Associated Press 22—23, 1416, 1425, 2013; Lorain Journal 342 143, 157, 181, 188, 162. 241 242 (D.C.W.D.N.Y.), 1815, 1245; Paramount Pictures, 53, 72, 1682, 131, 915, 1260, revised accordance mandate, 881, 898—901, 1690, nom. Loew's, 339 974, 1032, 1380, defendants' assets. 1528. outcome eminent domain settlement moot condemnee Grays Harbor Logging Coats-Fordney 243 702. occasionally facets appeals. distinguishable situation bar. dismissals complaints, whereafter remand. Terminal 224 383, 507, 810; 236 194, 408, 535; 760, Continental Insurance 259 156, 871; 1380. followed Swift 276 311, 587; 106, 460, 999; Chrysler 316 556, 1146, 1668; Ford 335 303, 93, Harvester Jersey 248 587, 434; 274 693, 1302. Jerrold Electronics 567, 755, 806, 187 545, 563 567 (D.C.E.D.Pa.). Material italics added amendments; material brackets deleted. (to) (between community), (of commerce).' paragraphs complaints based, 880, 806. cases. 2277, 67th (1921); 7371, 2549, 75th (1937); 10176, 3345, (1938); 1517, 577, 78th (1943); 2357, 4519, 4810, 615, 79th (1945); 4810; 5535, (1946); 515, 3736, 104, 80th (1947); 7024, (1948); 988, 1240, 2006, 56, (1949). (1947), (1949—1950). Notes, Col.L.Rev. 766 (1952); Ill.L.Rev. 444 (1951); Bok, Merging Law Economics, Harv.L.Rev. 226, 233—238 (1960); Handler Robinson, Decade Administration Celler-Kefauver Antimerger 652—674 (1961); Martin, 221—310 (1959). Arrow-Hart Hegeman 532, 1007; Western Meat 272 554, 175, 405. Celanese 541—542; Op.Atty.Gen. 241. F.T.C.Ann.Rep. (1929); Statement Counsel Kelley Subcommittee 2734) 38. held, adoption incorrect. questionable F.T.C., Merger Movement: Summary Representative Kefauver, 515) 4—5; Senator O'Mahoney, 16443; H.R.Rep.No.1191, 4—5. critique understanding 613—615, 887, (dissent), 19, 14255, 14316, 14456—14457 (remarks Senators Chilton, Cummins, Colt, Reed). Senate's Cummins 'or participation kind character. overwhelmingly defeated. 14315, 14473—14476. 9073—9074, 9271, 14226, 14254, 14420, 14465—14466 Representatives Webb Carlin Reed, Poindexter); H.R.Rep.No.627, 63d 17; S.Rep.No.698, 13. 1928, 19; id. 1929, 59; 1930, 50—51; 1935, 16, 48; 1936, 1937, 15; 1938, 29; 1939, 16; 1940, 12—13; 1941, 19—20; 1942, 9; 1943, 1944, 8; 8—9; 1946, 12; 1948, 16. continued unsuccessfully urge provision. 7; 1960, 12. Committee, Recommendations, S.Doc.No.35, 77th 38—40 (1941). Present Trend Corporate Acquisitions, 300—317; passim; 11500—11507; 16433, 16444, 16457; 4293 et seq. summarized situation: 'That movement (during 1940 1947) revealed value disappeared amounts billion percent corporations—a swallowed time.' 11486, 11489, 11494—11495, 11498; CongRec. 16448, 16450, 16452, 16503 consponsors Celler Bryson, Keating Patman Murray Aiken). Aluminum 148 416, 429 (C.A.2d Cir., Learned Hand, J.): 'Throughout (antitrust) statutes constantly perpetuate preserve, sake spite cost, units other.' Virtually member congress spoke legislation salient characteristic. sponsors, testified, complicated. proposes simply plug loophole measure 'Purpose' paragraph: whereunder (sic) law corporation. chiefly prohibit paradoxical over-all law.' 2, 4294. Commission. presenting change, points: decisions whole; incorporation tests, accompanying 'rule reason,' reaching interest; middle ground overly restrictive lenient concerned. Congressman Kefauver proposal incorporated Congress. 117—119, 238—240, 259; 147. mergers—horizontal, conglomerate—was reiterated bill. 11. 21, incipient monopolies restraints 698, 589, 875, measure. ('Acquisitions acquisitions. intervention reduction competition.'); 4—5, Adm.News, 4296 ('The cope monopolistic incipiency attained proceeding.'). 6—7. 515 §§ 1—7, note. 596, vigorous minority needed. Id., 11—18. issuance Committee's subsequent decided 1533, nevertheless, risen 16502 Kefauver); 10—11. Numerous statements Congressmen representatives Commission, President's Advisors suggesting stricter imposed 13, 41, 117; 47, 319. unanimously dissented Rep. 596 serving Committee. 7—8. explicit: revert test. proceeding. (The) additions deletions—some strengthening weakening bill—are conflicting effect. merely objective, namely, framing dropping so-called Act), reaches 4296. mergers, 51; 11488, 11506; 16436; 6—8; S.Hearings 115, 134—135, 198; 16435, 16444; 6; 30, phrase section, community, suggest, filling stations proscribed. 260. 16453. literal prohibition 'section.' 'trade area' deleted redundant, became apply, referred 38—52, 66—84, 101—102, 132, 133, 144, 145; 4, 5—6. senate 299 1055, 1371. 2734 Act: tended monopoly. eliminated; 'decisive'; 'undue' depriving standards, couched language, reflects conscious avoidance exclusively substantiality' 2734. Some applicability ensued, see, 31—32, 169—172; 21; 16443, endorsed impunged supporters. months decided, 'similar voiced locking barn door horses stolen, theft barn. Which say congressionally unaffected. 11494, 11498 Keating, Yates, Patman); 16444 Murray). Subsequent have, expressed intent, relevance data places framework reflecting index power; market—its structure, future—can 555; 576 545 aff'd, Atty. Nat. Study Laws, 126 (1955). debate, 'possible,' 'probable' 'certain' proven Language quoted interpretations 'may' H.R.Hearings 74; 32, 160—168; 16453, 16502. point: ('may be') bill, enacted, be' 1914. conveyed element seeks arrest develop full-fledged violative certainty actuality injury incompatible effort supplement restraints.' 14464 disrupt injure customer, stop handling supplier's lines, jeopardizing goodwill developed, supplier. 613 215, letter Sam Sullivan, retailer, 592 feasibility interchanging equipment footwear. individual tound relevant. Bock, Markets, Analysis Case 25—35 (1960). 592, 595, Spalding 585, 603 Crystal Sugar Cuban-American 524, 527 39, 55, text. 'unnecessary speculate 'back minds' merger,' 8, indicating predicting 196 375, 396, 276, 518; 804 Comment, Mich.L.Rev. 1236, 1239-1240 (1961). 1058, Sinclair 261 463, 450, 746. 4299. 34, U.S.Atty.Gen.Nat.Comm. 143 permanent irreversible Kessler Stern, Competition, Contract, Vertical Integration, Yale L.J. 572 573; 606 Stigler, Preventive Policy, 104 U. Pa.L.Rev. 176, 180 (1955); U.S.Atty.Gen.Nat. 124 668 597, 879, 28, supra Trenton Potteries 273 377, 700; Institute, 297 859; 1260; 1199. 152 387, 398 524 illustrate: eastern half largely West, mid-Western latter company's would, equitable describing competed, Plan' finance inventory 'Brown provided assistance advertising aids, management research, loans, fire insurance centralized rubber credit. services, sold. reserved terminate agreements days' notice. required, invest products, terminate, warrant 'Brown' persons, areas. 313, 1061, 1371; (1955): 'While agencies, nullify is." Judicial Conference Protracted limiting mass possibly confusion error. F.R.D. 64. objects, drafted census information environs—as conform principal Appendix D, alone. shares, low medium ranges, spread dollars. Detailed method converted conversion exceptions, averages ratio men, women children expert age, produced, most, 6% statistics, universe measured) disfavor accounting methods experts derived category consumers Again, recognizing distribution, controlled. Particularly inventory, resold. summary, technical flaws compilation precision accuracy 7: sum pre-existing equal post-merger remain stable future. Nevertheless, graphic base build 595—596, 878, 612 615 603—611 308—311 unilateral growth. Internal jobs output. Conversely, reduce capacity, reasons, disapproval 5. 566 (D.C.E.D.Pa.) 806; rank helpful statistics. rank, useful depicting columns reflect footnote p.347. Source:GX 9, 214, R.60-70, 1223-1227;DX RR, DDDD-1, DDDD-2, 3892-4315, 4939-5299, 5300-5652. H., control, marginally high. 350. Source: 60-70, 1219-1222; DX RR,DDDD-1, Based DXDDDD-1, NNNN, UUUUUU, R.4939-5299, R.5300-5652, 5780-5818, 7155-7313, 241D, R.2014-2365. estimates R.2807-2819, 7155-7313. kinney UUUUU, R.4939-5299,5300-5652,5780-5818, 7155-7313; GX241D, theory, inquire 'A disposes subject, gives contemplated, completeness, giving done superintend, ministerially, Louisa Levi, 140 512, 514. Grant Phoenix Mutual Life 106 429, 414, 237; Taylor Board Education, 288 600. accompanied 1925 retained: 'As known, law, Without entering classes judges, whom circuit judge.' S.Rep.No.362, 68th (1924). generalization obviously erroneous judge. 351 393, 994, 1006, 1264, 'one theorize nonstandardized product.' choose presumably draw turns vel non schedule calendar lists 319 vendors, 122 $1,000 1951 purchased Before Wohl, Wohl's requirements; 33.6% 1953, partial Los Angeles known Wetherby-Kayser. purchase, Wetherby's 50%. shortly effected, abandoned Kinney-brand (80% 'made manufacturers) considerable branded advertised Along indications beginning higher-priced needs minimal investment. gaps assessment be. why conviction evaluation whereby carries bearing (see supra) tends difficult. bare numbers, 1947. incomplete standards. owning 101 20.9% 25.5% 'oligopoly,' apellant's founded merchandise clothing show stood constant 19.5% 1954. proportional 1947 belies becoming 'oligopolistic.' Whereas 25.9% eight 31.4%, 36.2%, 22%, 27%, 32.5%. suggestion reduced harmed silent expansion.

Classification Label: 7