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In the second of two articles, Professors Aduddell and Cain take the story of the application of antitrust law to the large meatpackers from the 1920 consent decree to Judge Julius Hoffman's 1956 decision not to lift the decree. Despite fundamental changes in the technology and structure of the food distribution industry, and strong indications that the packers' proposed plan to sell at retail was no longer good business, Hoffman refused to remove the obstacle to forward integration. The decision, in the authors' opinion, does not bear scrutiny on economic grounds. The episode supports two important generalizations about antitrust prosecution as a tool for economic planning: that constant change in a dynamic society often renders antitrust decisions meaningless; and that regulation frequently deprives society of rational structural change.
Canadian lines that were spreading out over what would become the Province of Ontario looked forward, in the years before the American Civil War, to becoming important east-west carriers between the rapidly growing American cities of the eastern seaboard and the still-new cities of the American Midwest. Canada's small population and undeveloped industry would force her railroads to rely heavily on traffic going from one American city to another. Lines like the Grand Trunk and the Great Western struggled desperately therefore, to avoid American financial control. With the help of British capital, they succeeded. But America's contribution to Canadian railroading ran much deeper than money. Dominating the skilled engineers and experienced construction contractors who came from south of the border was more difficult for Canadian directors to manage. In the end, however, it was the early failure of top Canadian management to bury their rivalries, ignore their English creditors, emulate Americans like Vanderbilt, Thomson, and Garrett, and consolidate into an integrated line between New England, the Middle Atlantic seaboard, and the Midwest that doomed their railroads to becoming, as one Canadian put it, “side streets to the trade thoroughfare.”