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Antitrust Keyed to Morgan, 7th Ed.
American Column & Lumber Co. v. United States
Citation:
257 U.S. 377 (1921)Facts
The American Hardwood Manufacturers’ Association was formed in December 1918 through the consolidation of two similar associations. The Association established the “Open Competition Plan,” in which 365 of its 400 members participated. These members operated 465 mills and produced approximately one-third of the hardwood lumber in the United States. The Plan required members to submit detailed daily reports on sales, shipments, production, and inventory. Members also submitted monthly price lists and were subject to inspection by the Association. The Association compiled this information and distributed summaries to all members. The Plan also involved monthly meetings, which in practice occurred weekly in different regions, where members discussed market conditions. Before these meetings, members completed questionnaires about their views on future market conditions and production plans. F.R. Gadd, the “Manager of Statistics,” analyzed the data and regularly issued market letters and reports that encouraged members to restrict production and maintain or increase prices. The government alleged this arrangement constituted a combination and conspiracy to restrain interstate commerce in violation of the Sherman Act.
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