The Consent Decree in the Meatpacking Industry, 1920–1956

In the second of two articles, Professors Aduddell and Cain take the story of the application of antitrust law to the large meatpackers from the 1920 consent decree to Judge Julius Hoffman's 1956 decision not to lift the decree. Despite fundamental changes in the technology and structure of the food distribution industry, and strong indications that the packers' proposed plan to sell at retail was no longer good business, Hoffman refused to remove the obstacle to forward integration. The decision, in the authors' opinion, does not bear scrutiny on economic grounds. The episode supports two important generalizations about antitrust prosecution as a tool for economic planning: that constant change in a dynamic society often renders antitrust decisions meaningless; and that regulation frequently deprives society of rational structural change.