The Antitrust Laws of the United States of America: A Study of Competition Enforced by Law

By A. D. Neale | Go to book overview

CHAPTER VII
THE CLAYTON ACT. I. EXCLUSIVE-DEALING AND TYING CONTRACTS: ACQUISITIONS

I. Origins and aims of the Clayton Act

The previous chapters have dealt almost entirely with the case-law under the Sherman Act, though a few cases under the Federal Trade Commission Act have been mentioned. We turn now to the Clayton Act, which was passed in 1914.

The evidence given in the big cases in the period leading up to this legislation -- particularly the Oil and Tobacco cases -- had shown certain recurrent ways in which the monopoly power of the 'trusts' was built up. They had secretly gained control of ostensibly independent companies by acquiring stock and voting it through holding companies; they had 'tied up' important sources of supply or channels of distribution through various types of exclusive contract; they had brought to heel inconvenient competitors by local price-cutting campaigns, often carried on through 'fighting companies'. The feeling grew that it ought to be possible to prohibit these trust-building or monopolizing devices specifically: the hope was that, given such a prohibition, no new 'trusts' of the Standard Oil type would appear and the Sherman Act would meanwhile secure the break-up of those already in being. The preamble to the original Clayton bill explained that its purpose was:

'to prohibit certain trade practices which ... singly and in themselves are not covered by the [Sherman Act] ... and thus to arrest the creation of trusts, conspiracies and monopolies in their incipiency and before consummation.'1

There were, however, two opposed theories of how this should be done. In the House of Representatives the favoured plan was to specify the devices in question -- acquisition of stock in competing companies,

____________________
1
I have been greatly helped in these pages by Mr Breck P. McAllister's brief but very clear account of the legislative history of the Clayton Act in his paper, 'Where the Effect may be to Substantially Lessen Competition or Tend to Create a Monopoly', Proceedings at the Annual Meeting for 1953 of the Antitrust Law Section of the American Bar Association.

-185-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
The Antitrust Laws of the United States of America: A Study of Competition Enforced by Law
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen
/ 516

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.