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UNITED STATES v. HAMMERMILL PAPER CO.

March 16, 1977

United States, Plaintiff
v.
Hammermill Paper Co., Defendant


Weber, C.J.


The opinion of the court was delivered by: WEBER

This is the forest primeval. The murmuring pines and the hemlocks,
 
Bearded with moss, and in garments green, indistinct in the twilight,
 
Stand like Druids of eld, with voices sad and prophetic,
 
Stand like Harpers hoar, with beards that rest on their bosoms.
 
Evangeline, H.W. Longfellow
 
"Well, essentially, Fraser's business is certainly quite a bit different than Hammermill's business. We are kind of a little Weyerhaeuser in that we have a vast number of trees and the trees sit in the forest growing and when they reach maturity they have to be cut, and there is a tremendous impetus to keep cutting the trees and keep running the machines because the trees keep growing and we have a difficult time generally keeping up with the cut. My guess is that Hammermill's tree position is considerably different than ours.
 
Mr. Dolan, Fraser Paper Co. Testimony, Tr. 895.

 Introduction

 This is an action brought by the United States under 15 U.S.C. § 25 which complains that Defendant Hammermill Paper Company (Hammermill) violated Section 7 of the Clayton Act (15 U.S.C. § 18) by its acquisition of the assets of Western Newspaper Union (WNU) and all of the capital stock of Carter Rice Storrs and Bement, Inc. (Carter Rice). The complaint prays for an order of divestiture, an injunction and such further relief as the court may deem appropriate.

 Section 7 of the Clayton Act (15 U.S.C. § 18) provides:

 
No corporation engaged in commerce shall acquire, directly or indirectly, the whole or any part of the stock or other share capital and no corporation subject to the jurisdiction of the Federal Trade Commission shall acquire the whole or any part of the assets of another corporation engaged also in commerce, where in any line of commerce in any section of the country, the effect of such acquisition may be substantially to lessen competition, or tend to create a monopoly.

 Jurisdiction and Venue

 Hammermill is a corporation organized and existing under the laws of Pennsylvania, with its principal office in Erie, Pennsylvania, and transacting business and being found within the Western District of Pennsylvania. At all times pertinent ...


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