686 CORPORATION FINANCE
all looked toward nationalistic supremacy. In the United States, the war
period permitted, and even forced, a degree of intercorporate cooperation
which bore fruit in the tremendous number of mergers and consolidations
in the following decade. Our tariff policy is and always has been distinctly
nationalistic. The Webb-Pomerene Act fosters attempts at monopolistic
control of foreign trade. Stabilization supporters look with longing eyes at
further liberalizing of antitrust laws. Meantime the Second World War
again forced intercorporate cooperation on unprecedented scales.
Eternal Conflict—And so the eternal conflict of law and business
organization continues. The former is continually making adjustments to
indicate sanction or disapproval of the plans of the latter. The latter is
continually finding new ways to circumvent the former. The label of
illegality has never been a preventive of economic success. The law has
at times retarded and caused postponement of economic plans. History is
full of illustrations of conflicts between law and economic principles. Where
the latter are sound, they have usually emerged from the conflict victo-
rious. Some victories over the law have been won, not on merit, but on the
strength of the power of special interests. Such victories are not always
final.
QUESTIONS AND SUGGESTIONS
t Would you buy the products of an industrial combination? Why? Would you
accept employment from it? Why? Would you invest in its securities? Why?
2. In what other ways might you, as a citizen, express your attitude toward industrial
combinations?
3. What is the meaning of illegal? What is law?
1 Who are business law breakers? Why are they so classified?
5. Does a worship of competition eliminate fears of combination? Why?
6. What is common law? Who enacts it? What is statute law? Why is it needed?
7. What is meant by revenge legislation? Why are antitrust laws so classified?
8. Describe the background of the Sherman Act. Account for its legislative history.
9. Summarize the results of the first two decades under the Sherman Act.
10. What characterized the attitude of the Supreme Court in interpreting the
Sherman Act in 1912 and the following years?
11. What is the significance of the Harlan dissent?
12. What were the dissolution experiences under decrees by the Supreme Court?
13. What amendments to the Sherman Act were passed in 1914?
14. What are consent decrees? Why should either the government or business
corporations be interested in them?
15. What were the results of the decision of the court in the trade association cases?
16. How did the attitude of the public toward the enforcement of the Sherman Act
change? Why?
17. In what types of industries have most recent combinations been effected?
18. Does the public favor or oppose integration of industry?
19. What is likely to be the road ahead? How may international complications
influence the answer to this question?