Monopoly and Breakup
In December 1947 the US government brought proceedings against USM alleging a breach of the Sherman Anti Trust Act in that the company had been a monopoly since 1912. A “trial of prodigious length” followed but although the verdict went against USM, the corporation wasn’t broken up and the judgement and remedy was confirmed by the Supreme Court in 1954. The government renewed its complaint in 1967 but although the District Court ruled nothing had changed, this time the Supreme Court ordered the company to be broken up. It was required to divest a substantial part of its business and change its leasing strategy over a 10-year period. The sell-off raised $400 million but attempts at diversification failed to generate enough money and in 1976 the company, heavily in debt, was bought by Emhart Corporation, now Emhart Teknologies, an organisation half its size.
Read more about this topic: British United Shoe Machinery
Famous quotes containing the words monopoly and and/or monopoly:
“Unless you become more watchful in your states and check the spirit of monopoly and thirst for exclusive privileges you will in the end find that ... the control over your dearest interests has passed into the hands of these corporations.”
—Andrew Jackson (1767–1845)
“United Fruit... United Thieves Company... it’s a monopoly ... if you won’t take their prices they let your limes rot on the wharf; it’s a monopoly. You boys are working for a bunch of thieves, but I know it ain’t your fault.”
—John Dos Passos (1896–1970)