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Ruling that the relevant "line of commerce" was "automobile finishes and fabrics," the court noted that, in 1947, G.M. bought 68% of its car enamels and other finishes from Du Pont, and 38.5% of its fabrics. To show that Du Pont had at least tried to influence G.M.'s buying policies, the court cited letters and memos written by Du Pont officers (none later than 1926). Item: Treasurer Raskob's 1917 report, arguing that purchase of G.M. stock "will undoubtedly secure for us" the entire G.M. market for paints, artificial leather and other Du Pont products. Concluded...

Author: /time Magazine | Title: National Affairs: The Du Pont Case | 6/17/1957 | See Source »

More convincing was Burton's second point of law: the court erred in holding that Section 7 applied "at the time of suit," after Du Pont had held the stock for 30 years, although what the law specifically forbids is "acquisition." In previous cases Section 7 had been applied soon after the acquisition, and many a lawyer agreed with Burton that by applying it 30 years after the fact, the court had opened up a new field of antitrust prosecutions (see BUSINESS). "Over 40 years after the enactment of the Clayton Act," wrote Burton, "it now becomes apparent...

Author: /time Magazine | Title: National Affairs: The Du Pont Case | 6/17/1957 | See Source »

...Under the 1903 Expediting Act, District Court judgments in civil antitrust suits can be appealed only to the Supreme Court, not to a Circuit Court of Appeals. †Clark disqualified himself because he was Attorney General when the Justice Department brought the suit in 1949. Harlan had represented Du Pont as a lawyer. Whittaker had not yet been appointed when the case was argued before the court. *In 1950, after the Government brought suit against Du Pont, Congress amended Section 7 to make it clearly applicable to vertical cases...

Author: /time Magazine | Title: National Affairs: The Du Pont Case | 6/17/1957 | See Source »

...first few hours after the U.S. Supreme Court laid down the antitrust law to Du Pont last week (see NATIONAL AFFAIRS), Wall Street reacted with anticipation. Du Pont stock shot up 6 points to 202½ in the hope of big stock dividends following the court's ruling that Du Pont interests must give up their 23% control (64 million shares) of General Motors stock, worth $2.7 billion. But when Wall Street took a more careful look, Du Pont stock slipped back down. Both Du Pont and G.M. stock fluctuated nervously for the rest of the week, as everyone...

Author: /time Magazine | Title: CORPORATIONS: The $2.7 Billion Question | 6/17/1957 | See Source »

...Rubber Co.; Gulf Oil has a 12% interest in Texas Gulf Sulphur, which supplies Gulf with sulphur; Olin Mathieson Chemical has 25.8% of Marquardt Aircraft and 50% of rocketmaker Reaction Motors, for which it is helping develop rocket fuel. And by successfully going back 30 years to trip Du Pont, trustbusters had won the right to try any company for things it did in long years past...

Author: /time Magazine | Title: CORPORATIONS: The $2.7 Billion Question | 6/17/1957 | See Source »

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