E05: Trade Secrets of the Combines Detectives, part 2

06/16/22 • 21 min

In episode 5 of Monopolies Killed My Hometown, I actually get into the article, Trade Secrets of the Combines Detectives by Peter C. Newman from the May 24, 1958 edition of MacLean's Magazine.. Last week, in part 1, I mostly looked at the merger of Rogers Communications and MacLean Hunter. In this episode I share some about Peter C Newman's biography and history, and then I dive into the article.

I recap all the combines and price fixing agreements that the investigators found in the following industries: "oatmeal, fruits and vegetables, coffins, car accessories, matches, wire fencing, galoshes, quilted goods, eyeglasses, tires, flour, gasoline, bread, coal, cigarettes, toilet paper and false teeth."

Note: there are some transcription errors in the article, remember, 'hour' is probably 'flour'.

In the second half of the episode I think through the changes I'd like to see to the Competition Act and how we administer it. On the top of my list, I'd like to see us doing actual market studies and allowing the Commissioner to start investigations without a complaint being filed. On my wildest dreams list, I'd love to see provincial offices of the Competition Bureau be established to investigate smaller mergers and acquisitions that have an outsized impact on smaller regions of the Country. I want to make sure that our regional and local economies are working. We don't buy from the National economy, we buy from regional and local economies that build up to create the National economy.

Links from the episode:

Peter C. Newman interview on The Hour with George Strombolopolous
Brian Mulroney's response to Peter C Newman's "Secret Mulroney Tapes" Book - a joke from the Canadian Press Dinner in 2005
Upper Canada College Alumni
Bronfman Family
The Time Jeff Bezos Went Thermonuclear on Diapers.com
Illusion of Choice Report by American Economic Liberties Project
Report of the Royal Commission on Price Spreads
The State of Competition Policy in Canada: Towards an Agenda for Reform in a Digital Era, by Vass Bednar & Robin Shaban

Note: there are some transcription errors in the article, remember, 'hour' is probably 'flour'.

Links from the episode:

Peter C. Newman interview on The Hour with George Strombolopolous
Brian Mulroney's response to Peter C Newman's "Secret Mulroney Tapes" Book - a joke from the Canadian Press Dinner in 2005
Upper Canada College Alumni
Bronfman Family
The Time Jeff Bezos Went Thermonuclear on Diapers.com
Illusion of Choice Report by American Economic Liberties Project
Report of the Royal Commission on Price Spreads
The State of Competition Policy in Canada: Towards an Agenda for Reform in a Digital Era, by Vass Bednar & Robin Shaban

Previous Episode

E04: Did Competition Policy help kill Maclean's magazine, local news and Canadian culture?

This is part 1 of 2 where I look back at the article "Trade Secrets of the Combines Detectives" by Peter C. Newman in the May 24, 1958 edition of MacLean's magazine. In part 1, I take a detour into the 1994 merger of MacLean Hunter and Rogers Communication. I revisit some of the claims made at the time of the merger, like Rogers needed to grow to protect Canadian Culture from the US, and I point out that some of the "efficiencies" gained were just accounting tricks, not actual improvements.

I also explore how I think this merger could have led the roll-up of local newspapers and radio stations, which ultimately destroyed the way communities are able to talk with and amongst themselves. Listen to hear about me being on the radio leading up to Little League Baseball's 'tag day' fundraiser, learn which prominent Canadian journalist (not a Senator) got their start at CKDH in Amherst, and my surprise when I learn who first bought CKDH from our local owners.

Links from today's show:

Next Episode

E06: What kind of competition do I want? and some updates

Today's episode is slightly different than usual. In today's episode I provide updates on some amendments to the Competition Act introduced in this year's Federal Budget, provide a short update on the Rogers/Shaw merger, and introduce the Canadian Anti-Monopoly Project (CAMP) which I'm a founding member of.

Finally I circle back to an article I wrote about the type of competition our Competition Laws should foster and protect - tl dr; it's not competition like sports where you compete for the sake of competing. It's the competition that makes an ecosystem, like a forest, stronger and keeps the whole forest in balance. A forest that is in balance is healthy, and a forest that is out of balance is unhealthy. We are living in a time that is out of balance, and our communities are weaker because of that.