The Corporation and the Twentieth Century

317. Jackson (2012b) uses the phrase “think-tank archipelago” in the context of Britain under Margaret Thatcher, though he sees it as applying elsewhere as well. Jackson notes that the in- teraction between the liberal intellectuals and their funders was a two-way street: they did not so much take instruction from the business community as help business to better understand liberal ideas and to see those ideas as in their interest.

Phillips-Fein (2009, p. 112); Shlaes (2019, pp. 35–36).

Caldwell (2020); Phillips-Fein (2015).

Slobodian (2018, pp. 73, 77).

Phillips-Fein (2015, p. 288).

Hejeebu and McCloskey (1999, p. 286); Marcuse (1964); Polanyi (1944, p. xiii).

This model of institutional change was advanced most clearly by Ruttan and Hayami

(1984).

324. Peltzman (1989, p. 33).

325. Derthick and Quirk (1985, pp. 66–67); Rothenberg (1994, p. 234).

326. Saunders (2003, pp. 24–31).

327. Salsbury (1982, p. 47).

328. Hiner (2006, pp. 38–39).

329. Saunders (1978, pp. 181–82).

330. Salsbury (1982).

331. The destruction of Penn Station led to the passage of a landmarks-preservation statute

in New York. Thus when the Penn Central was plunging into bankruptcy, it was not allowed to sell the air rights above Grand Central Terminal, which it had hoped to turn into a skyscraper designed by Marcel Breuer. The case went all the way to the Supreme Court. Penn Central Transportation Co. v. New York City, 438 U.S. 104 (1978).

332. Sobel (1984, p. 170).

333. Hiner (2006, p. 40).

334. Saunders (1978).

335. Saunders (1978, pp. 199, 261).

336. Salsbury (1982, p. 140); Saunders (1978, p. 280). 337. Saunders (2003, p. 14).

338. Saunders (2003, pp. 46–50). Railroad cases came under Section 77 of the Bankruptcy Act, which gave the ICC wide discretion in sorting among claimants while keeping the roads running.

Notes to Chapter 9 657

339. Hiner (2006, pp. 57–60); Saunders (1978, p. 293). 340. Saunders (1978, p. 295).

341. Hiner (2006, pp. 51–56).

342. Hiner (2006, pp. 95–111).

343. Saunders (1978, pp. 308–14).

344. Saunders (2003, p. 111).

345. Congressional Record, 94th Congress, 1st Session, v. 122, pt. 2, 2245 (1976).

346. Ralph Blumenthal, “Conrail: Some Success, Measured by the Lack of Failures,” New

York Times, December 26, 1976, p. E3.

347. Hiner (2006, p. 373); Saunders (2003, p. 187).

348. This meant in practice that roughly 60 percent of railroad traffic would move at market

rates. The remaining 40 percent flowed on routes considered subject to “market dominance,” and the complex regulation of those rates would be transferred to a Surface Transportation Board when the ICC was abolished in 1995 (Burton and Hitchcock 2019).

349. Saunders (2003, pp. 189–219).

350. The privatized Conrail was taken over by the CSX Corporation and Norfolk Southern Railway in 1999.

351. Aldrich (2018, p. 6).

352. Winston et al. (1990, p. 11).

353. Saunders (2003, p. 26).

354. Winston et al. (1990, p. 7).

355. Rothenberg (1994, p. 214).

356. Moore (1983, p. 37).

357. Winston et al. (1990, p. 4).

358. Rothenberg (1994, pp. 216–17).

359. US Senate (1980, p. 3).

360. Carole Shifrin, “Carter, Kennedy Send Trucking Bill to Congress,” Washington Post,

June 22, 1979.

361. Rothenberg (1994, pp. 238–39).

362. Moore (1991, p. 52).

363. Moore (1983, p. 37).

364. Rose (1985, 1987).

365. Winston et al. (1990, p. 41).

366. Moore (1991, p. 53).

367. Stone (1991, p. 156).

368. Levinson (2016, p. 206).

369. ICC Docket No. 21723, In the Matter of Container Service, 173 I.C.C. 377, April 14, 1931,

at 384.

370. Saunders (2003, p. 206).

371. Levinson (2016).

372. Pettus et al. (2017, p. 389).

373. Bernhofen, El-Sahli, and Kneller (2016).

374. Borenstein and Rose (2014); Vietor (1994, pp. 23–90). 375. Breyer (1982, p. 433); Vietor (1994, pp. 51–57).

658 Notes to Chapter 9

376. Keeler (1972).

377. Vietor (1994, p. 81).

378. With the coming of the Internet in the twenty-first century, consumers found it increas-

ingly easy to game the yield-management system. The airlines were forced to turn to an older style of price discrimination—charging separate fees for services like meals and checked baggage.

379. Borenstein and Rose (2014, p. 82).

380. Gooslbee and Syverson (2008).

381. According to Airlines for America, the industry trade group. The figure today is

87 percent. See “Air Travelers in America: Annual Survey,” June 23, 2022, https://www.airlines .org/dataset/air-travelers-in-america-annual-survey/.

382. Morrison and Winston (1986, p. 51). 383. Borenstein and Rose (2014, p. 77). 384. Hummels (2007, p.152).

385. Carron (1981).

386. Lovelock (2004). This Frederick W. Smith is no relation to the Frederic Smith who ran the Olds Motor Works early in the century.

387. Saunders (2003, p. 129).

388. In fact, Smith claimed not to remember what grade he got (Dumaine 2002). The point of the paper was less the idea of a hub-and-spoke system than an argument that the high-tech businesses of the future would need an extremely fast and reliable system of parts delivery.

389. Gompers (1995, p. 1465).