INTRODUCTION
15 “the Curse of Bigness”: Other People’s Money and How the Bankers Use It, Louis Brandeis, McClure Publications, 1914.
16 “comprehensive charter of economic liberty”: Northern Pacific Railroad Co. v. United States, 356 U.S. 1 (1958) (Black, J.).
17 “Shall the industrial policy of America”: “Competition,” Louis Brandeis, American Legal News, January 1913 at 5.
17 “bad history, bad policy, and bad law”: “The Political Content of Antitrust,” Robert Pitofsky, University of Pennsylvania Law Review 127 (1979): 1051.
18 “suppress or even destroy”: Board of Trade of City of Chicago v. United States, 246 U.S. 231 (1918) (Brandeis, J.).
21 “a kingly prerogative”: 21 Cong. Rec. 2457 (1889), statement of Sen. John Sherman.
CHAPTER ONE
26 monopoly “drives progress”: “Competition Is for Losers,” Peter Thiel, Wall Street Journal, Sept. 12, 2014.
27 “to clear the world of them”: Social Statics, Herbert Spencer, John Chapman, 1851.
28 “The American Beauty Rose”: The History of the Standard Oil Company, Ida M. Tarbell, McClure, Phillips & Co., 1904.
28 “arrest the wheels of progress”: Trusts, S.C.T. Dodd, 1900.
28 “Growth of a large business”: The Incorporation of America: Culture and Society in the Gilded Age, Alan Trachtenberg, Hill and Wang, 2007.
29 “Nothing less was at stake”: The Age of Reform, Richard Hofstadter, Knopf, 1955.
29 “economic and political power would be decentralized”: “What Happened to the Antitrust Movement?”, Richard Hofstadter, in The Political Economy of the Sherman Act, E. Thomas Sullivan, Oxford University Press, 1991.
30 “equality of condition”: Democracy in America, Volume I, Alexis de Tocqueville, trans. Henry Reeve, Walker, 1847.
CHAPTER TWO
34 “a pure spirit and the highest ideals”: Louis D. Brandeis: A Life, Melvin Urofsky, Schocken Books, 2012.
34 an “idyllic” place: Urofsky.
36 “Lying and sneaking are always bad”: Urofsky.
36 “the evils of excessive bigness”: “The New England Railroad Situation,” Louis D. Brandeis, The Boston Journal, December 13, 1912.
37 “Yellow dogs will bark and snap”: Foreword to “Opening Up New England: The New Haven Railroad’s Own Story,” Charles S. Mellen, The World’s Work: A History of Our Time, vol. 25, Doubleday, Page & Co., 1913.
37 24 deaths and 105 injuries: “Another Wreck on the New Haven: Accidents, Risk Perception, and the Stigmatization of the New York, New Haven & Hartford Railroad, 1911-1914,” Mark Aldrich, Social Science History, Cambridge University Press, vol. 39, no. 4, Winter 2015.
37 “Mr. Morgan holds the gun of monopoly”: The Fall of a Railroad Empire: Brandeis and the New Haven Merger Battle, Henry Lee Staples and Alpheus Thomas Mason, Syracuse University Press, 1947.
37 “the reckless and scandalous expenditure of money”: New York, New Haven & Hartford Railroad Co.: Evidence Taken before the Interstate Commerce Commission, U.S. Congress, Senate, 63rd Cong., 2d sess., 1914, S. Doc. 543.
38 “We are in a position”: Control of Corporations, Persons, and Firms Engaged in Interstate Commerce: Hearings before the Committee on Interstate Commerce, U.S. Congress, Senate, Committee on Interstate Commerce, 62nd Cong., 1911.
39 “the development of the individual”: Business—A Profession, Louis D. Brandeis, Hale, Cushman & Flint, 1933.
39 “the true end of man”: The Sphere and Duties of Government, Wilhelm von Humboldt, transl. Joseph Coulthard, John Chapman, 1854.
39 “compels us to strive”: Business—A Profession, Brandeis.
39 “the ‘right to life’ guaranteed”: “Efficiency and Social Ideals,” Louis D. Brandeis, The Independent, November 30, 1914.
39 “I used to leave him”: In the Opinion of the Court, William Domnarski, University of Illinois Press, 1996.
40 “Men are not free”: Business—A Profession, Brandeis.
41 “far more serious”: Other People’s Money and How the Bankers Use It, Louis D. Brandeis, F.A. Stokes, 1914.
41 “a life so inhuman”: The Words of Justice Brandeis, Louis D. Brandeis, ed. Solomon Goldman, Henry Schuman, 1953.
CHAPTER THREE
45 “tacitly acknowledged that Wall Street”: Theodore Rex, Edmund Morris, Random House, 2001.
46 State of the Union speech: William McKinley, Third Annual Message to Congress (speech, Washington, D.C., December 5, 1899), The American Presidency Project, http://www.presidency.ucsb.edu/ws/print.php?pid=29540.
47 “This is sad, sad, very sad news”: Morgan: American Financier, Jean Strouse, Random House, 1999.
47 “Now look—that damned cowboy”: Theodore Rex, Edmund Morris, Random House, 2001.
47 “The vast individual and corporate fortunes”: Theodore Roosevelt, “National Duties” (speech, Minnesota, September 2, 1901), Almanac of Theodore Roosevelt, http://www.theodoreroosevelt.com/images/research/txtspeeches/678.pdf.
48 “In my judgment”: Theodore Rex, Edmund Morris, Random House, 2001.
49 “When aggregated wealth demands”: “The Progressives, Past and Present,” Theodore Roosevelt, The Outlook, September 3, 1910.
49 “the absolutely vital question”: The Republicans: A History of the Grand Old Party, Lewis L. Gould, Random House, 2003.
49 account of Morgan’s reaction: Morgan: American Financier, Jean Strouse, Random House, 1999.
50 “a man of great wealth who does not”: Theodore Roosevelt, “Speech at Providence, Rhode Island,” (1902), in Addresses and Presidential Messages of Theodore Roosevelt (Knickerbocker Press, 1904).
51 “The President of the United States”: Theodore Rex, Edmund Morris, Random House, 2001.
52 “slavery that would result from aggregations”: Standard Oil Co. v. United States, 221 U.S. 1 (1911) (Harlan, J., concurring in part and dissenting in part).
52 “placed the control of the two roads”: Northern Securities Co. v. United States, 193 U.S. 197 (1904) (Harlan, J.)
53 “it was the ferocious extreme”: Northern Securities Co. v. United States, 193 U.S. 197 (1904) (Holmes, J. dissenting)
53 “it was imperative”: Theodore Roosevelt: An Autobiography, Edmund Morris, Macmillan Company, 1913.
53 “there are great wastes in competition”: Oliver Wendell Holmes Jr. to Frederick Pollock, May 25, 1906, in Holmes-Pollock Letters, ed. Mark D. Howe (Belknap Press, 1961).
54 “power that controls the economy”: United States v. Columbia Steel Co., 334 U.S. 495 (1948) (Douglas, J., dissenting).
54 “threat to other values”: Brown Shoe Co. v. United States, 370 U.S. 294 (1962).
55 “excessive concentration of economic power”: “The Political Content of Antitrust,” Robert Pitofsky, University of Pennsylvania Law Review 127 (1979): 1051.
58 “tend to tilt toward the wishes of corporations”: “Testing Theories of American Politics: Elites, Interest Groups, and Average Citizens,” Martin Gilens and Benjamin I. Page, Perspectives on Politics 12 (2014): 3.
59 “was like a general who”: “John D. Rockefeller, A Character Sketch,” Ida Tarbell, McClure’s Magazine, July 1905.
60 “‘But we don’t want to sell’”: The History of the Standard Oil Company, Ida Tarbell, Macmillan Company, 1904.
61 “there was no more faithful baptist”: The History of the Standard Oil Company, Ida Tarbell, Macmillan Company, 1904.
61 “A man always has two reasons”: The House of Morgan: An American Banking Dynasty and the Rise of Modern Finance, Ron Chernow, Atlantic Monthly Press, 1990.
62 “his party included, characteristically”: The Great Pierpont Morgan: A Biography, Frederick L. Allen, Harper & Row, 1949.
63 “we grudge no man”: Theodore Roosevelt,“New Nationalism” (speech, Osawatomie, Kansas, August 31, 1910), Teaching American History, http://teachingamericanhistory.org/library/document/new-nationalism-speech/.
67 “All who recall the condition”: Standard Oil Co. v. United States, 221 U.S. 1 (1911) (Harlan, J., concurring in part and dissenting in part).
71 “It’s unusual to find”: The Luckiest Guy in the World, T. Boone Pickens, Beard Books, 2000.
71 “Managers have incentives”: “Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers,” Michael Jensen, American Economic Review 76 (May 1986): 323.
75 “to give the National Government”: Theodore Roosevelt, “The Trusts, the People, and the Square Deal,” reprinted in Theodore Roosevelt: An Autobiography, Macmillan Company, 1913.
75 “Monopoly is certain and sure”: “A Study of Competition,” Eugene Debs, Appeal to Reason, May 28, 1910.
CHAPTER FOUR
78 “the problems of distribution of power within society”: “Private Action—The Strongest Pillar of Antitrust,” Lee Loevinger, Antitrust Bulletin, 1958.
78 “antitrust almost as a secular religion”: “Lee Loevinger, 91, Kennedy-Era Antitrust Chief,” John Files, The New York Times, May 8, 2004.
79 “the post-War currents of democracy-enhancing antitrust ideology”: “Antitrust and Democracy: A Case Study from German Facism,” Daniel A. Crane, Law and Economics Working Papers, University of Michigan Law School, April 2018.
79 “a Fuehrer was inevitable”: Business as a System of Power, Robert Brady, Routledge, 2017.
80 I.G. Farben chemical cartel: Hell’s Cartel: IG Farben and the Making of Hitler’s War Machine, Diarmuid Jeffreys, Henry Holt and Company, 2010; see also, “Antitrust and Democracy: A Case Study from German Facism,” Daniel A. Crane, Law and Economics Working Papers, University of Michigan Law School, April 2018.
80 “monopolies soon got control of Germany”: 95 Cong. Rec. 11 (1949).
80 “a colossal empire serving the German state”: Elimination of German Resources for War: Hearings Before a Subcomm. of Military Affairs, 79th Cong. 941 (1945).
81 “what sort of country we want to live in”: 96 Cong. Rec. 16452 (1950).
82 efforts to transplant U.S. antitrust laws to Japan: Competition Law and Policy in Japan and the EU, Etsuko Kameoka, Edward Elgar Publishing, 2014.
83 “not a single American-trained economist of any prominence”: The Antitrust Experiment in America, Donald Dewey, Columbia University Press, 1990.
83 “now runs its quiet course”: The Paranoid Style in American Politics, Richard Hofstadter, Vintage Books, 2008.
84 “a private, competitive enterprise economy”: “The Case Against Big Business,” George J. Stigler, Fortune, May 1, 1952.
84 iconoclastic economist Joseph Schumpeter: Capitalism, Socialism and Democracy, Joseph A. Schumpeter, Routledge, 1976.
84 “did not take seriously the problems”: The Master Switch: The Rise and Fall of Information Empires, Tim Wu, Vintage Books, 2011.
85 “the existing structure is the efficient structure”: In Defense of Industrial Concentration, John S. McGee, Praeger, 1971.
87 “destroyed my dreams of socialism”: “Aaron Director, Economist, Dies at 102,” Douglas Martin, The New York Times, Sept. 16, 2004.
88 “only that value we would today call consumer welfare”: “Legislative Intent and the Policy of the Sherman Act,” Robert H. Bork, Journal of Law and Economics, 1966.
89 “a kingly prerogative”: Trusts, Speech by John Sherman to the U.S. Senate, 1890.
89 “Bork’s analysis of the legislative history was strained”: “Antitrust’s Protected Classes,” Herbert Hovenkamp, Michigan Law Review, 1989.
89 “prefer a system of small producers”: United States v. Aluminum Co. of Am., 148 F.2d 416 (2d Cir. 1945).
90 “a value will be announced as pertinent”: “Legislative Intent and the Policy of the Sherman Act,” Robert H. Bork, Journal of Law and Economics, 1966.
91 “oversimplified economics”: “Antitrust Made (Too) Simple,” Christopher R. Leslie, Antitrust Law Journal, 2014.
CHAPTER FIVE
94 “unless the would-be monopolist”: The Industrial Reorganization Act: Hearings before the Subcommittee on Antitrust and Monopoly, U.S. Congress, Senate, Committee on the Judiciary, 93rd Cong., 2d sess., 1974.
94 “The vicious acts associated”: “Public Utilities and Public Policy,” Theodore N. Vail, The Atlantic Monthly, Volume 111, 1913.
95 “must have absolute control”: In the Matter of Use of the Carterfone Device, 13 F.C.C.2d 420 (1968).
98 “where I think there is a case”: “Joel Klein, Hanging Tough,” David Segal, The Washington Post, March 24, 1998.
98 “in a secret memo”: “The Internet Tidal Wave,” Bill Gates, May 26, 1995.
CHAPTER SIX
103 His citation: “R. Bork”: Reiter v. Sonotone Corp., 442 U.S. 330 (1979) (Burger, C.J.).
104 “sheriff of a frontier town”: The Antitrust Paradox, Robert Bork, Free Press, 1978.
104 “The persistent dominance of an industry”: “Dominant Firms and the Monopoly Problem: Market Failure Considerations,” Oliver E. Williamson, Harvard Law Review 85 (1972): 1512.
105 it was the Harvard school that quietly: Antitrust Law: An Analysis of Antitrust Principles and Their Application, Philip Areeda and Donald Turner, Little, Brown and Company (1978).
105 “grafted economic thinking”: “The Influence of the Areeda-Hovenkamp Treatise in the Lower Courts and What It Means for Institutional Reform in Antitrust,” Rebecca H. Allensworth. Iowa Law Review 100 (2015): 1919.
108 Thomas Krattenmaken and Steven Salop: “Anticompetitive Exclusion: Raising Rivals’ Costs to Achieve Power Over Price,” Thomas G. Krattenmaker and Steven C. Salop, Yale Law Journal 96 (1986): 209.
108 Carl Shapiro: “Navigating the Patent Thicket: Cross Licenses, Patent Pools, and Standard Setting,” Carl Shapiro, Innovation Policy and the Economy 1 (2001): 119.
108 Michael L. Katz and Howard A. Shelanski: “Mergers and Innovation,” Michael L. Katz and Howard A. Shelanski, Antitrust Law Journal 74 (2007): 1.
108 Jon Baker: “Exclusion as a Core Competition Concern,” Jonathan B. Baker, 78 Antitrust Law Journal (2012): 527.
108 Daniel Rubenfeld: See, e.g., “Quantitative Methods in Antitrust,” Daniel L. Rubinfeld, Issues in Competition Law and Policy 1 (2008): 723.
108 “because extreme interpretations”: How Chicago Overshot the Mark: The Effect of Conservative Economic Analysis On U.S. Antitrust Policy, Robert Pitofsky, Oxford University Press, 2008.
109 “The mere possession of monopoly power”: Verizon Communications Inc. v. Law Offices of Curtis V. Trinko, LLP, 540 U.S. 398 (2004) (Scalia, J.).
111 “a farce of such mindboggling proportions”: Building IBM: Shaping an Industry and Its Technology, Emerson W. Pugh, MIT Press, 1995.
114 “trustbusting is the Sherman Act’s most alluring”: “Failed Expectations: The Troubled Past and Uncertain Future of the Sherman Act as a Tool for Deconcentration,” William E. Kovacic, Iowa Law Review 74 (1989): 1105.
114 “the evils of Monopoly are largely independent”: Antitrust Law: An Analysis of Antitrust Principles and Their Application, Philip Areeda and Donald Turner, Little, Brown and Company (1978).
115 A full 75 percent of industries: “Are US Industries Becoming More Concentrated?” Gustavo Grullon et al. (2015), available at http://finance.eller.arizona.edu/sites/finance/files/grullon_11.4.16.pdf.
115 studies by the Council of Economic Advisors: “Benefits of Competition and Indicators of Market Power,” Council of Economic Advisors Issue Brief (2016), available at https://obamawhitehouse.archives.gov/sites/default/files/page/files/20160414_cea_competition_issue_brief.pdf.
115 an independent study by the Economist: “Corporate Concentration,” The Economist, March 24, 2016.
115 The OECD, in its own: “Market Concentration,” OECD Issues paper by the Secretariat (2018), available at https://one.oecd.org/document/DAF/COMP/WD(2018)46/en/pdf.
117 “an antitrust division in the Justice Department”: Barack Obama (speech, Oregon, May 18, 2008), Reuters.
CHAPTER SEVEN
119 “imagine a place where trespassers leave no footprints”: “Electronic Frontier: Coming Into the Country,” John Perry Barlow, Communications of the ACM, January 1991.
122 Instagram “allows people to do what they like to do on Facebook”: “Instagram Was Facebook’s Biggest Threat,”Nicholas Carlson, Business Insider, April 9, 2012.
122 “Buying Instagram conveyed to investors”: “Here’s Proof that Instagram Was One of the Smartest Acquisitions Ever,” Victor Luckerson, TIME, April 19, 2016.
124 “the most popular messaging app”: “A Year Later, $19 Billion for WhatsApp Doesn’t Sound So Crazy,” Josh Constine, TechCrunch, Feb. 19, 2015.
124 “Without this acquisition”: “Facebook’s WhatsApp Acquisition Exposes Grave Risks to the Business Model,” Seeking Alpha, Feb. 20, 2014.
126 “monopoly profits”: “Competition Is for Losers,” Peter Thiel, Wall Street Journal, Sept. 12, 2014.
126 “bringing the world closer together”: “Facebook Careers,” Facebook.
126 “different kind of company”: “Facebook Careers,” various job postings, Facebook.
CONCLUSION
127 “a barrier to what Congress saw was the rising tide of economic concentration”: Brown Shoe Co. v. United States, 370 U.S. 294 (1962).
129 same institutional owners: “Anticompetitive Effects of Common Ownership,” José Azar, Martin C. Schmalz, and Isabel Tecu, Journal of Finance, August 2018.
135 “multiple, incommensurable, and often conflicting values”: “Bork’s ‘Legislative Intent’ and the Courts,” Douglas H. Ginsburg, Antitrust Law Journal, 2014.
137 “the one thing we wish to maintain”: 51 Cong. Rec. 9265 (1914).
137 “prescribed the rule of free competition”: N. Sec. Co. v. United States, 193 U.S. 197 (1904).
137 “the heart of our national economic policy”: Standard Oil Co. v. Fed. Trade Comm’n, 340 U.S. 231 (1951).
137 “the fundamental principle governing commerce”: City of Lafayette, La. v. Louisiana Power & Light Co., 435 U.S. 389 (1978).
137 “genuine adverse effects on competition”: F.T.C. v. Actavis, Inc., 570 U.S. 136 (2013).
138 “as a means of promoting economic efficiency”: Morrison v. Murray Biscuit Co., 797 F.2d 1430 (7th Cir. 1986).
138 “true test of legality”: Bd. of Trade of City of Chicago v. United States, 246 U.S. 231 (1918).