About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline

LOG IN
LOG IN


43 N.D. L. Rev. 17 (1966-1967)
Historical Policy of the United States toward Monopoly

handle is hein.journals/nordak43 and id is 37 raw text is: HISTORICAL POLICY OF THE UNITED STATES TOWARD MONOPLY JOHN E. SCHEFTER* Is REGULATION NECESSARY'> The extent of regulation of industry is basically dependent upon the socio-economic system within which industry operates. Govern- ment regulation is rampant under socialism and absent within a laissez-faire economy It is not within the context of this article to discuss the relative merits of all systems within the spectrum of socio-economic systems. Let it be enough to assert that the degree of regulation and the public policy of a nation toward its industry is dependent upon the nature of the socio-economic system in question. Kent once declared that the preamble of the constitution of the United States enacted Adam Smith's WEALTH OF NATIONS.1 If there ever was a period in which the United States approached a laissez-faire economy, it was during the last half of the eighteenth century to the latter part of the nineteenth century The frontier was the nursery of individualism and democracy, economic, political, and social.2 This period allowed competition to run, unbridled, on the road to ruin. Organizational devices were employed to secure and enhance control of the market. Various types of agreements and understandings that imposed limitations on competition were employed. Threats, cajolery, outright bludgeoning and more subtle methods of whipping competitors into line were employed.3 It was, as Proudhon said in his CONTRADICTIONS E'CONOMIQUES, com- petition that was killing competition.4 The trusts, mergers, pools, and combinations that were formed before the antitrust laws became effective provide an excellent study m the misuse and abuse of competition. *Graduate Research Assistant, Department of Agricultural Economics, North Dakota State University, Fargo, North Dakota. A debt of gratitude is owed to Dr. Nelson of the Agricultural Economics Department for his advice and encouragement while writing this article. 1. Hamilton, Law and Economics, 19 Am. EcoN. REv. 56 (1929). 2. Wright, Topics in Economic History, 16 Am. EcoN. REV. 269 (Supp. 1926). 3. PEGRUM, D.F., THE REGULATION OF INDUSTRY 8 (1949). 4. Liefmann, R., Monopoly or Competition as the Basis of Government Trust Policy, 29 Q. J. ECON. 316 (1915).