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2013 Rutgers Univ. L. Rev. Commentaries 38 (2013)

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RUTGERS LAW REVIEW COMMENTARIES                         JANUARY 28,2013


THE   STREETCAR DILEMMA: PREVENTING INCURABLE HARM
THROUGH TIMELY ENFORCEMENT OF THE ANTITRUST LAWS

                        Brian  N. Biglin*

I. INTRODUCTION
    In the  United  States, free market competition and  consumer
choice  are  uniquely  safeguarded   through  the  antitrust  laws
contained  in the Sherman   and  Clayton Acts. The  antitrust laws
enable prosecutors (at the Department   of Justice and the Federal
Trade  Commission)   and  private citizens to prevent  and  punish
anticompetitive activities. As legal tools, they are only as good as the
prosecutors that wield them.  These  laws are capable  of reversing
anticompetitive conduct, and, in many cases, preventing the negative
effects which  emanate   from  that  conduct.  When   it comes  to
preventing  those  effects, the timing   of legal  action is often
paramount.  There is one cautionary tale that vividly illustrates this
proposition, particularly because it continues to cast a shadow today.
This Commentary   will revisit United States v. National City Lines, in
which the government  successfully prosecuted a notorious conspiracy
among   the  nation's  largest corporations-but   not  before  the
conspiracy had taken its intended toll by destroying dozens of urban
rail systems.
    This  Commentary will start by setting forth the law (the
Sherman   Act) and  policy underlying the antitrust enforcement in
National City. It will then tell the tale of National City, a case which
led to the conviction of nine corporations for violating section 2 of the
Sherman  Act. Finally, it will analyze the outcomes of National City,
assessing to what extent the government's prosecution accomplished
the underlying purposes of the antitrust laws. This section will begin
to illustrate the incurable effects of the National City conspiracy.
Those  effects erode at the ideals promoted by the antitrust laws as


* Associate, Sills Cummis & Gross P.C., Newark, New Jersey and New York, New
York. J.D., Rutgers, The State University of New Jersey, School of Law-Newark,
2011. AB., Economics, University of Michigan, 2008. I thank Andrew Rossner,
Associate Dean of Rutgers School of Law-Newark, for his outstanding course in
Antitrust, and Betsy Grobovsky, Esq., Class of 2011, for the many hours we shared
learning Dean Rossner's materials. Finally, I note that the views and opinions
expressed in this article are mine and do not necessarily reflect those of Sills Cummis
& Gross P.C.


38


RUTGERS LAW REVIEW COMMENTARIES


JANUARY 28, 2013

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