chapter  11
33 Pages

Dissolution, Divorcement, Divestiture: The Pyrrhic Victories of Antitrust

PriortoWorldWarI,nosubstantialprogresswasmadeinbreakingupgreat industrialcombinations.Thetwooutstandingdissolutioncasesduringtheperiod -UnitedStatesv.StandardOilCo.ofNewJerseyandUnitedStatesv.AmericanTobaccoCo.6-failedtoproducemomentousresultsandcanhardlybecited asgoodexamplesofwhatadissolutionpolicycanaccomplish.TheStandard Oildecreehadthefatalflawofleavingeconomiccontroloverthesuccessor companieswiththesameintereststhathadexercisedcontrolovertheparent companypriortodissolution.TheAmericanTobaccodecreewasevenweaker, forhere:

TheCourtadoptedthecelebrated"threeway"principlewherebymonopoly wasconceivedtobeeliminatedandcompetitionrestoredbythesimplemeans ofdividingatrustintothreeroughlyequalparts.Thereasonforselectingthe

OriginallypublishedinIndianaLawJournal,vol.27(Fall1951);reprintedwithpermission.