The Corporation and the Twentieth Century

dismantled War Trade Board. On the one hand, as a faithful war planner, Hoyt applauded stan- dardization and reduced variety, including the standardization of consumer goods. This would manifestly increase “efficiency,” since consumer tastes for variety are mere “eccentricities” not worthy of serious consideration. On the other hand, such standardization would lead to massive industrial concentration, against which antitrust policy would have vigorously to defend. Hoyt would go on to become a prominent real-estate economist and, as the chief economist of the Federal Housing Administration, arguably the father of redlining (Rothstein 2017, pp. 93–94).

177. Hawley (1989); Himmelberg (1976). 178. Hawley (1989, p. 1079).

179. Quoted in Barber (1985, p. 11).

180. Carrott (1970); Hawley (1989).

Notes to Chapter 5 593

181. Maple Flooring Manufacturers’ Assn. v. United States, 268 U.S. 563 (1925). The court dis- tinguished this case from the hardwood case in that the data provided were averages rather than specific figures for specific firms, and the data came without exhortations to stabilize output. At about the same time, the Court also overturned the ruling against the cement manufacturers: Cement Manufacturers’ Assn. v. United States, 268 U.S. 588 (1925).

182. United States v. United States Steel Corporation, 251 U.S. 217, 40 Sup. Ct. 293 (1920).

183. Montague (1927, p. 670–71).

184. The FTC challenged these acquisitions, but Bethlehem proceeded anyway, and the

commission suspended the cases in 1927 after its defeat in the Kodak case, though it would not officially drop the cases for twelve more years (Winerman and Kovacic 2010, p. 190). The Kodak decision barred the FTC from instituting divestiture procedures under Section 5 of the Clayton Act (FTC v. Eastman Kodak Co., 274 U.S. 619 [1927]).

185. Warren (2008, pp. 112–15).

186. The Supreme Court would soon make clear that Section 7 did not apply to asset mergers (Martin 1959).

187. The FTC investigation of Alcoa would result in a report but no litigation (Waller 2007, p. 125).

188. Federal Trade Commission v. Gratz, 253 U.S. 421, 427, 40 Sup. Ct. 572, 575 (1920).

189. Davis (1962).

190. Himmelberg (1976, p. 51).

191. Hofstadter (1964, p. 193). Winerman and Kovacic (2011) challenge this characterization

of the FTC, though they do paint a picture of a commission limited by the courts and the low competence of its commissioners.

192. Himmelberg (1976, p. 51).

193. United States v. Trenton Potteries Co., 273 U.S. 392 (1927).

194. McCarty (1930).

195. Himmleberg (1976, p. 63).

196. Boies (1968, pp. 608–13); Hoogenboom and Hoogenboom (1976, pp. 84–118). 197. Hoogenboom and Hoogenboom (1976, p. 99).

198. Miranti (1989).

199. Hoogenboom and Hoogenboom (1976, pp. 106–7).

200. Williamson (1975, p. 14).

201. Cohen (1991, pp. 63–64).

202. Janson and Yoo (2012).

203. Stehman (1925, p. 177).

204. Janson and Yoo (2012, pp. 1012–17).

205. Douglas (1987, p. 281).

206. Douglas (1987, p. 229).

207. Minasian (1969, p. 393).

208. Douglas (1987, pp. 267–74).

209. Mock and Larson (1939, pp. 239–41).

210. Aitken (1985, p. 287).

211. Aitken (1985, pp. 252–54).

212. US House of Representatives (1919, p. 36).

594 Notes to Chapter 5

213. US House of Representatives (1919, p. 207).

214. US House of Representatives (1919, p. 11).

215. Unless otherwise noted, this account of the formation of RCA follows the definitive

treatment by Aitken (1985).

216. An alternator is a generator of alternating current (AC) whereas a dynamo is a generator

of direct current (DC).

217. Case and Case (1982, p. 179).

218. Reich (1977, p. 214).

219. Merges and Nelson (1990, p. 891–93).

220. Maclaurin (1949, p. 97).

221. Reich (1977, p. 214); Sterling and Kittross (1978, p. 46).

222. Aitken (1985, p. 433). Although Hooper wrote the letter, it was signed by his superior,

Captain A. J. Hepburn, the acting chief of the Navy’s Bureau of Engineering. 223. Aitken (1985, pp. 457–81).

224. Maclaurin (1949, p. 107).

225. Aitken (1985, pp. 474).

226. Barnouw (1966b, pp. 28–38); Douglas (1987, pp. 292–314). 227. Rosen (1980, p. 32).

228. Quoted in Lewis (1991, p. 139).

229. Barnouw (1966b, pp. 64–72).

230. Sterling and Kittross (1978, p. 510). 231. Sterling and Kittross (1978, p. 62). 232. Lewis (1991, p. 78).

233. Wenaas (2007).

234. Graham (1986, pp. 38–39).

235. Sterling and Kittross (1978, p. 533).

236. Archer (1939); Reich (1977, pp. 221–30).

237. Aitken (1985, p. 449).

238. Despite its name, the Postal Telegraph System was a private competitor to Western

Electric. The two companies consolidated in 1938.

239. In 1931, the Supreme Court would reverse this and rule the patent invalid (DeForest

Radio Co. v. General Electric Co., 283 U.S. 664 [1931]).

240. Temin and Galambos (1987, p. 13). At the same time, AT&T sold its international opera-

tions to ITT and soon backed out of ventures in movies and TV. The new CEO was the same Walter S. Gifford who, as a young statistician, had worked with Howard Coffin and then on the staff of the War Industries Board during the war.