Category: Law and Economics

During the first decade of the twentieth century Bruce Wyman’s course on the law governing industrial relations and commercial law was one of two courses offered by the Harvard economics department that provided useful business content to undergraduates. The other one was William Morse Cole’s accounting course. Business content no doubt helps to explain the relatively high enrollment numbers in both courses. 

Fun Fact: Harvard President Lowell complained about Wyman’s course in the economics department having too soft a grade distribution (making it a “snap” course). This too could help to explain the relative popularity of Wyman’s course.

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From earlier years

1901-02. Autobiographical note, enrollment, course description, syllabus, exams.

1902-03. Obituary, enrollment, course description, exams.

1903-04. Enrollment and exams.

1904-05. Enrollment, course description, exams.

1905-06. Enrollment, paper assignments, exams.

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Course Enrollment

Economics 21. Asst. Professor Wyman. — Principles of Law governing Industrial Relations and Commercial Law.

Total 152: 6 Graduates, 83 Seniors, 43 Juniors, 14 Sophomores, 6 Others.

Source: Harvard University. Report of the President of Harvard College, 1906-1907, p. 71.

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ECONOMICS 21

Paper No. 1

1. Tell all you know about

(a) Walsh v. Dwight.
(b) Is Ayer v. Rushton rightly decided?

2. (a) X & Co. begin the manufacture of underwear, woven with an open mesh, which they advertise as “Cellular Underclothing.” A few months later Z & Co. begin the manufacture of a similar article which they advertise as “Cellular Underclothing, a better article than that of any other manufacturer.” Can X & Co. sue Z & Co. for anything? Cite any authorities that you think in point. Give your reasons carefully. (b) A & Co., proprietors of a department store, advertise “the B Co. piano, regular price $500, our price $444.” The B Co. are much injured in their business by this; as they only allow their agents 10%, retailers cease handling their piano in the district where A & Co. sell. After A & Co. sell the piano they have had in stock they continue to run the advertisement, although the B Co. of course refuse to sell them any more pianos. Can the B Co. succeed in bringing any suits against A & Co.? Cite any cases you think in point. Give your reasons carefully.

Paper No. 2

1. (a) Tell all you know about Pontefact v. Isenberger. (b) Is Reddaway v. Banham rightly decided?
2. (a) Can a manufacturer of aluminum utensils sue another manufacturer who advertises as aluminum utensils articles not made of that metal? (b) Can a manufacturer who sells lime juice in long tapering bottles prevent another manufacturer from putting his product on the market in a bottle of exactly the same size, shape, and material?

Paper No. 3

1. (a) What is decided in Lewin v. Welsbach Light Co.? (b) Is Dudley v. Briggs rightly decided?
2. (a) X & Co. conduct a commercial credit agency. By mistake of their printers they report in a publication sent only to their subscribers that A & Co. are insolvent. Can A & Co. sue for the damages caused them? (b) X & Co. advertise that according to a series of tests made in their laboratories their fertilizer is shown to be 10% stronger in nitrates than that of A & Co. A & Co. offer to prove by expert testimony that theirs is stronger. What result?

Paper No. 4

1. (a) Give in detail the points made in the opinion of Coleridge, J., in Lumley v. Gye. (b) Is Nichol v. Martyn rightly decided?
2. (a) Are Graham v. St. Charles Street Ry. and Robinson v. Texas Pine Land Association consistent? (b) A superintendent is hired by A for five years, with the right reserved to either party to terminate the employment upon one month’s notice. B, a rival of A in business, goes to the superintendent and by offer of a higher salary induces him to give the notice and then come to him at the end of the month. Can A sue B?

Paper No. 5

1. (a) What is decided in Murray v. Vanderbilt? (b) Is Bishop v. Kitchen rightly decided?
2. (a) Are Diamond Match Co. v. Roeber and Pacific Factor Co. v. Adler consistent? (b) What essential differences are there in the facts between Jelliet v. Broade and Toby v. Major?

Paper No. 6

1. (a) What is decided in Horick & Co. v. Wright? (b) Is Jones v. Fell rightly decided?
2. (a) Are Scottish Society v. Glasgow Association and Plant v. Woods consistent? (b) What is objectionable in Collins v. Locke?

Paper No. 7

1. What are the four things complained of in Mogul S. S. Co. v. McGregor. Do you agree with what the court decides as to each?
2. How did the four judges who considered Glamorgan Coal Co. v. South Wales Miners’ Association decide the issues raised in it? With which ones do you agree?

Paper No. 8

1. (a) What is decided in Temperton v. Russell; (b) and in Hundley v. Louisville & Nashville R. R.
2. (a) How did Green, V. C., distinguish Mogul S. S. Co. v. McGregor from Barr v. Essex Trades Council; (b) What is the course of reasoning in Delz v. Winfree?

Paper No. 9

1. (a) Give in detail the opinion of Lord Lindley in Latham v. Craig; (b) and the dissenting opinion of Justice Holmes in Vegelahu v. Guntner.
2. (a) What things are enjoined in Jersey City Printing Co. v. Cassidy? (b) What were the facts in Reinecke Coal Co. v. Wood?

Paper No. 10

1. (a) What are the characteristics of a corporation, and which are essential? (b) What tests show the distinction between a corporation and its shareholders?
2. (a) What is decided in Gallagher v. Germania Brewing Co.? (b) Is Williamson v. Smoot rightly decided?

Paper No. 11

1. (a) Is Trustees of Schools v. Flint rightly decided? (b) Is Ellis v. Marshall rightly decided?
2. (a) What are all the facts in Broderip v. Salomon that are of any importance? (b) What is the solution of the case by each of the three successive courts which considered it?

Paper No. 12

[missing from folder]

Paper No. 13

1. (a) In Bundy v. Ophir Iron Co. what is decided as to Bundy’s rights and what is left undecided? (b) Give all the facts you remember as to Scovill v. Thayer.
2. (a) Are the doctrines in Currie’s Case (re Gt. Northern Coal Co.) and Hospes v. Northwestern Mfg. Co. alike? (b) Is Coit v. Gold Amalgamating Co. rightly decided?

Paper No. 14

1. (a) What is decided in McNab v. McNab & Harlin Mfg. Co.? (b) What distinctions are taken in McDonald v. Williams?
2. (a) What is the difference in the situation between Monument Bank v. Globe Works and Jemison v. Citizens’ Savings Bank? (b) If the Mt. Washington Road Co. had accepted the omnibuses would they have had to pay Downing & Sons for them anything at all?

Paper No. 15

1. (a) What is decided in Ashton v. Burbank? (b) And in Hartford & New Haven R. R. v. Croswell?
2. (a) A & B, forming a firm engaged in the cotton business, meet a cotton broker, X, who offers them a large lot of cotton at a high price. A agrees that the firm will buy it, B openly protesting; can X hold A & B? (b) Is Dudley v. Kentucky High School rightly decided?

Paper No. B1

1. (a) What is decided in Chicago City Ry. Co. v. Allerton? (b) and in Sweutzel v. Penn. Bank?
2. (a) Directors in a banking corporation supervise the business by examining carefully each month the statements drawn up by the cashier. Later it is discovered that the cashier has for over a period of two years been using the funds of the bank for speculation, covering his embezzlements by fabricated statements. Are the directors liable for these losses? (b) The directors in a copper mining company are proposing to sell the entire output of the mine for the next six months to a copper selling company at 15½ c. per lb. They call a stockholders’ meeting to discuss the sale; three-fourths of the shares are voted against the proposition at that meeting. Nevertheless the directors of the mining company go ahead and sign the contract in the name of the company. Everybody in the selling company knows of the adverse vote by the stockholders. Can the selling company hold the mining company to this contract?

Paper No. B2

1. (a) What are the points decided in Boyd v. American Carbon Co.? (b) And in Emery v. Ohio Candle Co.?
2. (a) Is Bates v. Coronado Beach Co. rightly decided? (b) Suppose a partnership arrangement between a locomotive manufacturer and a cotton mills corporation for five years. If the corporation breaks the contract with partnership funds in its hands, what are the manufacturer’s rights? Suppose instead of a locomotive manufacturer it was another cotton milling corporation, what would be its rights?

Paper No. B3

1. (a) What does Gould v. Head decide? (b) Give all the points made in People v. North River Sugar Co.
2. (a) Is Smith v. San Francisco & N. P. R. R. rightly decided? (b) Would Milbank v. N. Y., L. E., & W. R. R. be decided differently if both corporations concerned had not been in the same business?

Paper No. B4

1. (a) What is decided in St. Louis, etc. R. R. v. Terre Haute, etc. R. R.? (b) Is McCutcheon v. Merz Capsule Co. rightly decided?
2. (a) Should Trenton Potteries Co. v. Olyphant be decided as it is? (b) Is Whitwell v. Continental Tobacco Co. rightly decided?

Paper No. B5

1. To what extent does the corporation law interfere with the consolidation of corporations with intent to gain monopoly. Cite a case upon each form of organization?
2. What seems to you the best solution of the trust problem in each of these forms?

Paper No. B6

1. (a) What does Cincinnati, H. & D. R. R. decide? (b) Do you agree with Fleming v. Montgomery Light Co.?
2. (a) Would the A telephone company be obliged to permit the B telephone company to have its (B’s) subscribers’ local lines connected with its (A’s) long distance lines? (b) Can an electric light company refuse to install current for power for an applicant who lights his house with gas bought from a rival company?

Paper No. B7

1. (a) What is decided in State v. Dalton? (b) Is Jenks v. Coleman rightly decided?
2. (a) Would a law be constitutional which required oleomargarine to be colored pink? (b) Would a law be constitutional which limited the employment of bricklayers and plasterers to eight hours per day?

Paper No. B8

1. (a) What is decided in State v. Campbell? (b) Is State v. Nebraska Telephone Co. rightly decided?
2. (a) Suppose a ticket agent, to whom you pay money for a ticket good to stop over, stamps it in some secret way so that it reads as a limited ticket to the conductor of the second train you take after stopping over, and this conductor puts you off, using necessary force, but causing you injury. For what can you sue the railroad company? (b) Is Forsee v. Alabama Ry. rightly decided?

Paper No. B9

1. (a) Must a telegraph company transmit despatches from race tracks to pool rooms? (b) May a ferry company refuse to transport a forger?
2. (a) Must a railroad company allow a telephone company to install a pay-station in a terminal station? (b) May a theatre refuse to sell a ticket to a man in naval uniform?

Paper No. B10

1. (a) What is decided in Coupland v. Housatonic R. R.? (b) Can Craker v. Chicago & N. W. Ry. and Batton v. S. & N. Ala. R. R. both be right?
2. (a) A traveller comes to an inn and asks for room 15 which is vacant, but the innkeeper assigns him to room 16; later in the day he changes him to room 17. Can the guest complain of his action at either time? (b) A Pullman agent has a telegram reserving a berth on file; he accordingly refuses to sell his last berth to an applicant or to order another car put on. Has the applicant any complaint?

Source: Harvard University Archives. Syllabi, course outlines and reading lists in Economics, 1895-2003. Folder: “Economics 1906-1907”. Note: Harvard College Library stamp Jan 29, 1907 on Papers No. 1-14; Stamp Jul 5, 1907 Papers No. 15, B1-B10. Each of these paper assignments was printed on a separate sheet of paper.

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ECONOMICS 21
Mid-year Examination, 1906-07

First give your answers, then your reasons, supporting your views by authorities, but not writing more than 30 pages.

1. A is a manufacturer of soap, who is dealing with a jobber named B, among others. C, another manufacturer of soap, goes to B and first offers him a rebate of 10% if B will not handle the soap of A any longer, but will deal with C exclusively, and then threatens B that unless he will do this he will not sell him any soap at all. B then accedes with much protestation. A, thus cut off by B, brings suit against C for loss of business, — what decision? Would A have had any complaint if C had not made the threat?
2. The Meadow Dairy, incorporated, is formed by X, Y, and Z, who constitute themselves the board of directors, with X president, and Y general manager. Soon after, Z, being in poor health, goes to Europe. The corporation thus managed by X and Y, begins an advertising campaign in which it claims: ‘that all its milk is produced upon its own farms, and contains 15% of solids, whereas that sold by their largest competitor, the Hill Farm Dairy, is bought from irresponsible farmers, and never contains 10% of solids.’ The truth of the matter is, that it is the Meadow Dairy which has no cows of its own, and resells a poor grade of milk (10%), while the Hill Farm has its own herds and a high grade of milk (15%). A State statute makes it a misdemeanor to sell milk containing less than 12% of solids. The Hill Farm proprietors (it is a partnership, composed of A, B, and C) decide to take action. Before any proceedings are begun, C gives public notice that he wants the whole matter dropped. A and B seek counsel as to the extent to which they can get redress of any sort against any one, civil or criminal?
3. An association of refiners of kerosene oil adopt the following policies. How many of these will give a rival refiner who is injured an action for damages: (a) Refusing to sell any oil to retailers who deal at all with refiners outside the association. (b) Reducing prices 25% in districts where rival refiners are selling. (c) Giving 33 1/3% discount to those retailers who will agree to deal with members of the association exclusively. (d) Fining any member of the association who sells to any retailer who deals with any outside refiner.
4. In a strike at a paper mill, called to get recognition of the Union by getting the non-union men discharged, the union of the employees adopt the following tactics. How many of these will be stopped by an injunction asked for by the employers: (a) Posting two pickets at the mill gates with instructions to them to use no violence. (b) Refusing to patronize dealers who advertise in newspapers which buy their paper from this mill. (c) Posting upon billboards an appeal to workingmen urging “all honest laborers not to employ for employment at the mill while the strike is in progress.” (d) Paying non-union men who have taken employment at this mill $25 each to quit work at the end of the week for which they are employed.
5. An association of dealers in plumbers’ supplies, of which X, Y, and Z are members, has a rule that all plumbers who are in arrears to any member over ninety days shall be reported to the secretary, who shall send copies of the report to all other members L, M, and N, three other members of the association, introduce a motion at the annual meeting of the association that no member shall extend credit to any delinquent plumber so reported, but the motion fails, they alone voting for it. A, a plumber who is in arrears and is so reported, finds himself unable to get goods on credit from L or from X, what redress has he at law?
6. A newspaper publisher employs only union printers, who are hired by the day. He is building a house, on which he employs by the day a non-union carpenter. A retail grocer, with whom the union printers are accustomed to deal, advertises in the newspaper.
   In order to prevent the carpenter from continuing in the employ of the publisher, the union printers tell the grocer that they intend to withdraw their patronage from his store, unless he ceases to patronize a newspaper whose proprietor employs a non-union carpenter. The grocer holds out for awhile, but finally (as the union printers hoped he would) notifies the publisher that he shall cease to advertise in the newspaper, unless the publisher ceases to employ the carpenter. In consequence of this notice, the publisher ceases to employ the carpenter.
   The union printers were not actuated by personal ill will toward the carpenter; but by a wish to strengthen the general cause of labor unionism and to increase the power of labor unions in general.
   Has the carpenter an action against the union printers? Has the grocer?
7. A corporation owns a building worth $40,000. X owns one fourth of the corporate stock. The corporation effects an insurance of $35,000 on the building. X effects an insurance of $10,000 on his interest in the building. The building is totally destroyed by fire.
   In a suit by the corporation on its policy, the insurance company offers to prove an admission made by X that he set the fire negligently, but unintentionally. Is the evidence competent?
   In a suit by X on his policy, the insurance company claims that, as the building belonged to the corporation, X had no insurable interest in it. What decision in X’s suit?
8. All the shares in the X Brewing Co., the capital stock of which is $90,000, are purchased from the corporation by A, B, and C, who convey to it a brewery, which is worth about $30,000, in which they each have a one-third interest; the agreement with the corporation is that the corporation shall take the brewery as full subscription price and issue to A, B, and C $30,000 each in fully paid shares. The next year the corporation issues $40,000 in debentures on all the assets of the corporation to A who loans them that sum. A year after this is done the X corporation fails, owing $100,000 to X for supplies, with nothing but the brewery itself left. How much on a dollar will X get? How will A, B, and C come out?
9. A shareholder in a bank accepts dividends for the year 1904 which are paid out of capital which he would have known if he had attended the annual meeting; in 1905 he accepts dividends, although the bank is then hopelessly insolvent, which he has no reason to suspect. What rights have depositors against him? What rights have other shareholders?
10. A corporation, not authorized to borrow money, or to purchase real estate, borrows $1000 of X giving its note due in 30 days for $1000; expends $500 of the amount in paying a valid corporate debt to B; and expends the balance in purchasing land. X sues the corporation on this note for $1000. Decision is given against him on the ground that the borrowing by the corporation was ultra vires. Are there any remedies open to X?

Source: Harvard University Archives. Harvard University. Mid-year Examinations, 1852-1943. Box 7, Bound Volume: Examination Papers, Mid-Years 1906-07.

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ECONOMICS 21
Year-end Examination, 1906-07

First give your answers clearly; then give your reasons briefly.

1. What is the position of a person who has sold steel rails at
   16 2/3% profit to a railway company if he is (1) a promotor of the corporation, (2) a large stockholder in the corporation,
   (3) the treasurer of the corporation, (4) a director who resigned from office while the sale was being negotiated and was then immediately re-elected?
2. Can an action for damages be brought (1) by a retail tobacco dealer against a tobacco trust which will not sell to him because he handles rival brands; (2) by a newspaper against a press association which makes lower rates to others which deal with it exclusively; (3) by a city which has paid an artificially high price for iron pipe to an iron foundry which is a member of a pool; (4) by one railroad against another which makes lower rates to those persons who will ship by it exclusively?
3. Are there legal objections to the following arrangements?
   (1) a rich man, who is a large stockholder in two competitive railroads, increases his holdings in both to over 50% of the shares in each; (2) three rich men, holding each 20% of the shares in these two roads, agree to vote these shares as a majority of them shall decide; (3) the organization of a corporation to buy the controlling interest in these two roads; (4) an agreement between the two roads to maintain the maximum rates fixed by the law?
4. Can a street railway urge against the constitutionality of legislation reducing fares that the gross receipts so reduced
   (1) will leave no net profit: (2) or will leave nothing for replacements, (3) or nothing for depreciation; or (4) nothing for losses by accidents?
5. Can an innkeeper refuse to admit to his premises (1) a driver of a stage line seeking passengers; (2) a caller for a guest;
   (3) a neighbor with a dog; (4) a prize fighter who has come to train for a month?
6. Can a gas company refuse to supply (1) an applicant who uses electricity; (2) an applicant who owes his last month’s bill;
   (3) a tenant in an apartment house; (4) a householder on a street where there are no gas mains?
7. Is it illegal for a water company to make lower rates
   (1) for factories than for residences; (2) for hospitals than for churches; (3) for customers who use over 100,000 gallons than for less; (4) for customers who pay in advance.

1. Is it illegal for a railroad to charge lower rates per pound
   (1) for trainloads than for carloads; (2) for carloads than for less than carloads; (3) for 100 lb. packages than for less; (4) for barrels than for boxes?
   [Note: Questions IX and VIII were reversed in the original printed copy]

1. (1) Can a railroad work coal mines? (2) Can a gas company make lower rates to those who have gas stoves? (3) Can the proprietor of a grain elevator store his own grain in his own warehouse? (4) Can a railroad refuse to take at the carload rate a lot of goods offered by various shippers who have got together for the purpose?

Source: Harvard University Archives. Harvard University, Examination Papers 1873-1915. Box 8, Bound volume: Examination Papers, 1906-07; Papers Set for Final Examinations in History, Government, Economics,…,Music in Harvard College (June, 1907), pp. 42-43.

Image Source: Harvard Law School ca. 1901 from the Detroit Publishing Company photograph collection (Library of Congress).

Assistant professor in the Harvard Law School, Bruce Wyman (b. 15 June 1875; d. 21 June 1926) provided aspiring future businessmen an overview of commercial and labor law. Students hoping to go on to study law were explicitly not encouraged to take this course. His exam questions rank among the longest I have encountered thus far in my archival fishing expeditions. He apparently expected as much in return (he wrote in his suggestions for the mid-year examination “Thirty-six pages would be a desirable maximum as to length.”)

In the 1905-06 economics course outline folder there is an incomplete collection of the homework paper assignments, 10 of (13?). Perhaps they were due every second week or so over the semester. The format of the questions matches that found in the exams. Everything found for this year was transcribed for this post.

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From earlier years

1901-02. Autobiographical note, enrollment, course description, syllabus, exams.

1902-03. Obituary, enrollment, course description, exams.

1903-04. Enrollment and exams.

1904-05. Enrollment, course description, exams.

__________________________

Course Enrollment
1905-06

Economics 21. Asst. Professor Wyman. — Principles of Law governing Industrial Relations and Commercial Law.

Total 150: 6 Graduates, 68 Seniors, 46 Juniors, 19 Sophomores, 11 Others.

Source: Harvard University. Report of the President of Harvard College, 1904-1905, p. 73.

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ECONOMICS 21
Paper Assignments
[incomplete]

Paper No. 1

1. A is a workman employed in the works of B. B carries an indemnity policy covering accidents written by C. A gets his hand crushed in one of the machines, which is improperly guarded. C attempts to make a settlement with A at $500, which A refuses; thereupon C threatens to get A discharged by B, but A still refuses to compromise. Next, C goes to B and demands that A be discharged. B is at first unwilling, but when C threatens to take advantage of the clause in the policy permitting cancellation of the policy upon five days’ notice, B reluctantly undertakes to discharge A at the end of the week for which he is employed, protesting that A is a good workman and he had intended to give him regular employment. After A is thus discharged he brings suit against C for loss of employment. What decision? Give reasons with care.
2. A is a manufacturer of soap who is dealing with a jobber named B, among others. C, another manufacturer of soap, goes to B and first offers him a rebate of 10% if B will not handle the soap of A any longer, but will deal with C exclusively, and then threatens B that unless he will do this he will not sell him any soap at all. B then accedes with much protestation. A, thus cut off by B, brings suit against C for loss of business. What decision? Give reasons with care.

*  *  *  *  *  *  *  *  *  *  *  *  *  *

Paper No. 2

1. A & Co., proprietors of a department store, advertise “the B Co. piano, regular price $500, our price $444.” A & Co. have one such piano in stock, but if they should have more orders they would try to get more if they could. The B Co. are much injured in their business by this; as they only allow their agents 10%, retailers cease handling their piano in the district where A & Co. sell. After A & Co. sell the piano they have had in stock they continue to run the advertisement, although the B Co. of course refuse to sell them any more pianos. Can the B Co. succeed in bringing any suits against A & Co.? Cite any cases you think in point. Give your reasons carefully.
2. X & Co. begin the manufacture of underwear, woven with an open mesh, which they advertise as “Cellular Underclothing.” A few months later Z & Co. begin the manufacture of a similar article which they advertise as “Cellular Underclothing, a better article than that of any other manufacturer.” Can X & Co. sue Z & Co. for anything? Cite any authorities that you think in point. Give your reasons carefully.

*  *  *  *  *  *  *  *  *  *  *  *  *  *

Paper No. 3

1. (a) Give briefly the facts in Pontefact v. Isenberger. (b) Give shortly the rule of law in Reddaway v. Banham.
2. (a) A manufacturer of tomato catsup puts his product on the market in a bottle with a tapering neck wrapped in a cylindrical cardboard carton covered with manila paper upon which is printed in large black letters “X & Co. — Tomato Catsup,” with a picture of the bottle represented as full of red catsup. Z & Co. who begin the manufacture of tomato catsup some years later put their product upon the market in almost exactly the same way, — the bottle tapering, the carton cylindrical, the wrapper manila paper, the printing black, “Z & Co. — Tomato Catsup,” with a picture of the bottle filled with red catsup. Can X & Co. require Z & Co. to make some changes? Cite cases in point. (b) When the patent ran out on the “Singer Sewing Machine” which had been made by S & Co., J & Co. began the manufacture of a machine exactly similar which they put upon the market marked “Singer Sewing Machine.” Can S & Co. prevent J & Co. from doing this in this way? Cite cases in point.

   *  *  *  *  *  *  *  *  *  *  *  *  *  *

Paper No. 4

1. (a) Give briefly the facts in Dudley v. Briggs. (b) Tell shortly what was decided in Pitt v. Donovan.
2. (a) A & Co., manufacturers of farm implements, circulated the following advertisement in the country newspapers: “We believe that we have the fundamental patents upon harvesters; and, noticing that B & Co. are putting on the market a harvester which seems plainly an infringement of our patents, we hereby give notice that we shall begin legal proceedings against buyers who use this machine, as well as against B & Co.” B & Co. bring a bill for an injunction against A & Co., stating the above facts. What decision? Cite cases in point. (b) X & Co., manufacturers of artificial fertilizer, circulate a statement that their product has 25% more nitrates than that of Z & Co. Z & Co. bring suit, offering to prove that these figures are fabricated by X & Co. What result? Cite cases in point.

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Paper No. 6

1. Is the following a correct statement of the law: “What our law forbids is total suppression of competition, partial restriction of competition is unobjectionable; thus if there are three grocers in a town and one pays each of the others money to quit business the agreements are not valid, but if the first pays the second money to quit business the law does not object, since competition remains between the first and third.” In your answer cite various cases in the prescribed reading for the week in support of your opinion.
2. The following cases deal with the same problem: Jelliet v. Broade, Hayward v. Young, Harvey v. Cooke, and Nordenfelt v. Maxim-Nordenfelt Co. What is the principle of law involved in all of them? In your answer show familiarity with each case, both with the chief facts found and with the rule of law laid down.

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Paper No. 7

1. State the facts in the following cases: (a) Wickens v. Evans, (b) Milwaukee Mason & Builder’s Association v. Niezerowski. Say whether you agree with the decisions in these cases. In your answers support your reasoning with citation of other cases in the prescribed reading.
2. Here are the principal facts about two cases recently decided. (a) In one an agreement was proved between a manufacturer of skirt binding and the proprietor of a woman’s periodical by which the manufacturer agreed to take a page of advertising for a year at $1000, while the proprietor agreed to reject the advertisements of other manufacturers of skirt binding; the court held that the proprietor was liable for breaking this agreement by taking another advertisement of skirt binding. (b) In the second case three manufacturers of shoes agreed together not to send more than five travelling salesmen into any one state; this agreement the court held invalid. Do you think these cases to be rightly decided? In your answers as to each case cite the cases in the prescribed reading that you consider most in point.

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Paper No. 8

1. Compare (a) Scottish Coöperative Society v. Glasgow Flesher’s Association with (b) Plant v. Woods. In your discussion cite other cases by way of illustration.
2. If these two cases should be brought to Court how should they be decided: (a) A combination of oil refiners, A, B, C, D, and E, agree to lower prices 33 1/3% for a year in order to drive X, a dangerous competitor, out of business; their intention is to raise prices after X is disposed of. Can X sue B for the damages caused him by this campaign? (b) Employes of the A railroad refuse to handle freight cars forwarded from the B railroad where a strike is in progress; this policy is adopted because the employes of both railroads are affiliated with the same union, which has voted to instruct the employes of the B Co. to strike and those of the A Co. to support them as they are doing. What remedy has the A Co.? In your answer refer to some cases.

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Paper No. 11

1. (a) State the factors usually enumerated in the definition of a corporation. (b) Say how many of these are essential to the conception of a corporation.
2. (a) A acquires all of the capital stock in the X corporation. He then makes a mortgage of the property of the X corporation to the L bank to secure a loan of $5,000 to him. Later he gives B and C one share each in the corporation, and calls a stockholders’ meeting which votes to mortgage the property of the corporation to the M bank to secure a loan of $5,000 to the corporation; the vote authorizes A to execute the mortgage, which he does. The property proves worth about $8,000 when the X corporation fails. How shall it be divided between the L bank and the M bank, neither of which knew of the other’s mortgage? (b) Ships which have English owners only can be registered as English ships. A certain corporation organized in England is shown to have solely French stockholders; may ships owned by it be admitted to English registry?

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Paper No. 12

1. (a) Give in one sentence the point of law decided in Ellis v. Marshall. (b) Also give in one sentence the point of law decided in Trustees of Free Schools v. Flint.
2. (a) Give the facts in Broderip v. Salomon fully. (b). Give accurately the decision of the Divisional Court upon the case, written by Vaughan-Williams, J., together with his reasons. (c) Give accurately the decision of the Court of Appeal, written by Lindley, L. J., together with his reasons. (d) Give accurately the decision of the House of Lords, written by Lord Halsbury, together with his reasons.

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Paper No. 13

1. (a) What does Coit v. Gold Amalgamating Co. decide about the validity of payment of stock subscriptions with property instead of cash? (b) What does Bundy v. Ophir Iron Co. decide about the effect of mortgages upon corporate property which are executed by all of the shareholders in their own names?
2. (a) A partnership is composed of A, B, and C, but is known as “A & B.” Land is conveyed to “A & B,” paid for with partnership funds; goods are bought by C for the partnership which are delivered to it, but for which he advances the money himself. Later A, B, and C and “A & B” all become bankrupt A, B, and C each own a house and furniture. They individually each owe various people, and the firm owes various people. How shall these estates he wound up? (b) In a certain corporation A, B, and C each own one-third of the shares. It owns a grain elevator; this A wants the corporation to insure, but this B and C refuse to agree shall be done. Then A insures the elevator in his own name, paying the premiums himself. Later it burns; it was worth $21,000; how much will A recover?

Source: Harvard University Archives. Syllabi, course outlines and reading lists in Economics, 1895-2003, Box 1, Folder “Economics, 1905-1906”.

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ECONOMICS 21
Mid-year Examination, 1905-06

Please observe the following suggestions: Divide your time so as to reply to all questions. Make your answers definite; if you to treat the principal questions as units for discussing them, indicate plainly your decision upon each subdivision. Give your reasons for your answers in every case, but state them as briefly as possible, citing cases whenever you remember them. Thirty-six pages would be a desirable maximum as to length.

1. Do the following go beyond fair competition:
   1. X & Co. advertise that “The Natural brand of preserves made by us contains no artificial preservatives, whereas the Perfect brand, manufactured by A & Co., contains (as is shown by the analysis of that eminent chemist, Professor L., which is upon file at our office) 1% of Benzoate Soda.” A & Co. offer to prove that no such analysis was ever made. Can A & Co. sue X & Co.?
   2. Suppose that in that same suit X & Co. offer to prove by three experts that A & Co’s preserves really do contain more than 1% of Benzoate Soda, should the evidence be admitted?
   3. This advertisement was also published by X & Co.: “The L hotel tried the Perfect brand of preserved fruits for one week — then the manager gave orders to the steward never to buy any more, and to stop serving those that they had bought.” The statement was true; but the reason for the change was because the employees of the hotel, who belonged to a union, refused to serve the Perfect brand as A & Co. had locked out the union men employed at their factory. Can A & Co. sue X & Co.?
   4. Another advertisement of X & Co. was: “Think what canned fruits were like before we entered the market — the Perfect (?) brand used to be considered the best! Today everyone realizes the superiority of the processes used in making our Natural brand over all the old fashioned methods used by others.” A & Co. sue X & Co., offering to prove that the reputation of their goods is better than that of X & Co. What result?
2. Are the following unfair competition:
   1. X has worked for 10 years for A, the leading florist of Boston. He starts out in business for himself, three doors below, stating on the sign: “X, late with A,” with a card in the window stating: “Customers of A will receive prompt attention.” Can A get any injunction against X?
   2. A has extensively advertised and sold the L brand whiskey, which is put up in a peculiar, cubical shaped bottle, with a very long neck, and is recognized by the shape of the bottle. X offers for sale a whiskey in exactly the same kind of bottle, but with a different label.
   3. After the Singer patents, under which the Singer Mfg. Co. was manufacturing, had run out, the June Mfg. Co. began the manufacture of a machine according to the Singer designs, which they labelled in large letters; “Singer Machine.” Can the Singer Mfg. Co. get any injunction?
   4. A man named Baker begins the manufacture of chocolate in Massachusetts in 1880, which he calls Baker’s chocolate. A man in California, in 1885, named Baker, begins the manufacture of chocolate which he calls Baker’s chocolate. Both begin selling in Illinois for the first time in 1890. Which can stop the other?
3. In a strike at a paper mill, called to get recognition of the union by getting the non-union men discharged, the union of the employees adopt the following tactics. How many of these will be stopped by an injunction asked for by the employers:
   1. Posting two pickets at the mill gates with instructions to them to use no violence.
   2. Refusing to patronize dealers who advertise in newspapers which buy their paper from this mill.
   3. Posting upon bill boards an appeal to workingmen urging “all honest laborers not to apply for employment at the mill while the strike is in progress.”
   4. Paying non-union men who have taken employment at this mill $25 each to quit work at the end of the week for which they are employed.
4. An association of refiners of kerosene oil adopt the following policies. How many of these will give a rival refiner who is injured an action for damages:
   1. Refusing to sell any oil to retailers who deal at all with refiners outside the association.
   2. Reducing prices 25% in districts where rival refiners are selling.
   3. Giving 33 1/3% discount to those retailers who will agree to deal with members of the association exclusively.
   4. Fining any member of the association who sells to any retailer who deals with any outside refiner.
5. Can A sue X in the following cases, or is the course of dealings described regarded as permissible:
   1. A makes a contract with a retail stove dealer in which it is agreed that all stoves which the retailer shall need during the year shall be bought of X at certain specified prices. X then comes to this retailer and says: “I will cut every price you have from A in that contract 33 1/3% if you will buy of me instead of from A.” The retailer thereupon repudiates his contract with A and enters into one with X.
   2. A manufacturer of saleratus enters into a contract one with jobbers, in he promises those jobbers a special discount who agree not to sell other cheaper grades. A, a manufacturer of a cheaper grade, finds himself almost forced out of the market of a cheaper grade finds himself almost forced out of the market by this.
   3. L, a baker, sells his shop to A, agreeing with him not to engage, within five miles, for five years, in any branch of the provision business, in any capacity. X, a rival baker, takes a lease of the shop next door, and opens branch there, inducing L to act as manager of the shop.
   4. X, a salesman of A, during his last trip, tells customers that he is going to set up for himself after Jan. 1, 1906, and that he will hope to have their patronage then.
6. Are the following agreements enforceable:
   1. An agreement signed by various railroads not to give credit for freight to shippers who owe any of them for freight.
   2. An agreement between shoe manufacturers not to employ more than three drummers in any one state.
   3. An agreement between one automobile manufacturer and a magazine proprietor that $2,500 should be paid for one page of advertising in the April number, and that no other automobile advertisements should be taken for March, April, or May.
   4. An agreement between three manufacturers of iron pipe that each would give to each of the others 5% of all orders received by them.
7. Can A sue the X corporation, which is organized to manufacture shoe machinery, in the following cases:
   1. A has conveyed to the X Co. a tract of land upon which it is building a model town for its employees, but for which it has not paid X.
   2. A has agreed to transfer to the X Co. a majority of the shares in the B Co., a rival shoe machinery company, for which block of shares the A Co. has agreed to pay $125 per share.
   3. Suppose A is a shareholder in the X Co., and a dividend of 20%, payable June 1, was declared May 1 by the directors, but at a later meeting, on May 15, they had reconsidered that vote and voted to pay no dividend at all, although the corporation books showed 50% profit for the last five years.
   4. Suppose that the board of directors of the X Co., who hold a majority of the shares of stock, buy of a syndicate of which they are the members a tract of land for an extension of the factory, the plot costing them $100,000, being sold to the X Co. for $250,000. What can A, a minority stockholder, do?
8. X and Y form a partnership to manufacture cotton cloth. Can A sue X and Y in the following cases:
   1. A comes to X and Y offering them 5,000 bales of cotton at 12 cents per lb. X says to A: “We do not need that cotton,” but Y says to A: “Yes, we do; and we will take all of it from you at that price.” So Y and A enter into a written contract for the cotton, which Y signs in the firm name,” X all the time protesting.
   2. Suppose A had found Y alone at the firm’s office and Y had entered into a similar contract for the 5,000 bales of cotton on behalf of X and Y, which X had protested against when he returned.
   3. Suppose I had, without authority of X, signed a note in the name of the firm to pay his butcher’s bill, and the butcher had discounted the note with A, a banker.
   4. Suppose Y, with consent of X, had signed a contract agreeing to subscribe $1,000 to a cotton manufacturer’s exposition.
9. In the insolvency of the A corporation, the following facts appearing, what will each claimant noted in the statement of facts get out of the winding up, taking every fact stated below into account: The B corporation, having no other assets than a plant worth then about $200,000, but subject to a bonded indebtedness of $100,000 upon its assets, the bonds being held by V, by a unanimous vote sells all its rights in the plant which are subject to the outstanding bond issue to the A Co. for $100,000, payment to the B Co. being made by $50,000 in cash and a $50,000 note of the A Co., which has not yet been paid. One W acquires later all the stock in the B Co. at 75 from the different shareholders who had originally paid 100 for their shares. It further was shown that X, who owned another plant worth about $105,000, sold it to the A Co. for $100,000, getting in return $5,000 cash and $100,000 of the bonds of the A Co., which bonds were part of an issue of $200,000 constituting a first lien upon all the assets of the A Co. of every sort, the other $100,000 of these bonds having been sold by the A Co. to Y at a discount of 15%. It also appeared that the capital stock of the A Co. was $200,000, the shares of which were issued to Z at 50% discount. When, in the insolvency proceedings the two plants are sold, the one bought from the B Co., having much depreciated, sells for $80,000, while the one bought from X, having appreciated, sells for $150,000. In addition to the claims noted above the A Co. is found to owe $50,000 to general creditors.
   Give clearly, in figures, the amount that each claimant will get. It is unnecessary in this question to discuss the rules of law involved; simply relate the processes by which you reach the results, stating the rules.

Source: Harvard University Archives. Harvard University. Mid-year Examinations, 1852-1943. Box 7, Bound Volume: Examination Papers, Mid-Years 1905-06.

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ECONOMICS 21
Year-end Examination, 1905-06

Give your answers plainly and definitely; and state your reasons carefully and briefly.

1. The X Beef Corporation was organized in New Jersey with a capital stock of $200,000,000. With these shares or their proceeds it bought the packing plants at L, M, N, O, and P, getting the sellers to agree not to engage in the beef packing business for twenty years within the United States; A was one of these sellers. The corporation has acquired and is endeavoring to continue a monopoly in restraint of trade. One method used by it in this respect is to refuse to sell its products to dealers who handle the goods of its rivals at the same price as it will sell to those dealers who will agree to deal with it exclusively; B was a dealer who refused to accede to these terms. The corporation sold beef to C on credit and bought cattle from D on credit.
   Can the X corporation sue A or C for breaking their contracts; and can B or C sue the X corporation for damages?
2. In 1894 an individual and a corporation enter into a partnership agreement, stipulated to continue for five years. In 1897 large net profits have been realized and are in the hands of the corporation. It is reasonably certain that further profits will accrue if the partnership is continued to the end of the stipulated term. But the corporation, in 1897, refuses to continue in partnership, or to recognize the individual partner’s right to share in the profits then on hand.
   What, if any, remedies has the individual against the corporation?
3. The X, Y, and Z corporations, engaged in the manufacture of cotton goods and all in a flourishing condition, wished to combine their businesses. The directors and a majority of the stockholders of each corporation voted to transfer all the assets of their respective corporations to the D corporation, recently organized, and to take the stock of the D corporation in payment. A, B, and C, stockholders in these companies, obtained a temporary injunction against such transfer. Thereupon all the stockholders of the X corporation (except A, B, and C) transferred their stock to L, as trustee, with power for five years to vote the stock and to make such transfers as he should think wise for the purpose of qualifying directors. All the stockholders of the Y and Z corporations (except A, B, and C) transferred their stock to M and N respectively on like trusts. L, M, and N entered into an agreement always to elect the same persons directors of all the corporations during the continuance of the voting trusts, and they thereafter voted for certain persons for directors in pursuance of this agreement. A, B, and C voted for different persons for directors, no person being voted for as a director in more than one corporation.
   May the persons so voted for oust the directors voted for by L, M, and N? Should the injunction obtained by A, B, and C be made permanent?
4. A railroad company is constructed through a coal region. At first it receives coal from all shippers into the cars which it leaves upon its own sidings. Later the larger operators at considerable expense construct spurs to their mines and erect conveyors to load the cars; to such operators the railroad makes a reduction in rates over those who load at stations. Later still the railroad gives notice that it will no longer accept coal in bulk from any shipper who does not maintain his own spurs and conveyors.
   Has the small operator who has no such equipment any complaint against the earlier discrimination or against the later refusal to serve?
5. An electric light company in the city of X is constructed by the issue of $1,000,000 of stock issued to a contractor in part payment for the construction of its plant and by the floating of $1,000,000 20 year 5% bonds at 90. The contractor made 10% net on the whole job. At present the company is paying 8% dividends in addition to meeting promptly the interest on its bonds. It makes a practice of charging to operating expenses all repairs and replacements, while outright new construction or extensions it provides for out of a surplus fund collected some years ago. In addition to these charges it sets aside out of current earnings 8 1/3% relying upon an expert’s opinion that practically the whole plant must be renewed in in twelve years, and by vote of its stockholders it pays enough into a sinking fund each year to retire its bond issue at maturity. A to a corporation commission, acting under the authority of enabling legislation, orders the price for electricity reduced to consumers to a figure which the electric company shows by its books will leave them only 2% dividends if their present financial policy is continued.
   Should the courts set aside the orders of the commission on this showing?
6. A railroad company buys coal of various operators along its route which it transports to market and sells there. An independent operator shows that at times of press of business the railroad uses part of its cars in its own coal shipments; to which the railroad company replies that it gives him his proportion of cars. This operator also shows that the railroad will buy coal at $3.00 per ton, transport it to market and sell it at $3.75, while he shipping from the same station has to pay the published rate of $1.25 per ton; to which the railroad company replies by saying that they make themselves a trainload rate of 75 cents per ton which they are willing to give him.
   Must he be content with these answers?
7. A railroad running east from A to C through B advertises a cheap round trip from B to C and return which it states is “only from station B, passengers from stations west of B may not take advantage of this excursion.” X who lives in A buys a ticket to B, intending to do some business with a merchant, Y, in that town. As he is getting off the train at B he is met by the office boy of Y who tells him that Y went to C by an earlier train. X thereupon decides to follow Y to C and get him to return back; he accordingly goes to the ticket office at B and asks for a cheap round trip so that he can go on by the same train which is still waiting in the station. The ticket agent refuses to sell him a ticket. He gets on board the train and offers to pay the conductor regular fare, but the conductor tells him that he cannot ride upon this excursion train without a special ticket, and thereupon ejects him, using necessary force.
   What are X’s rights against the railroad?
8. The rate from A to B on the X railroad, an interstate carrier, was 10 cents per ton; from A to C, 20 miles beyond B, the rate Over the same road was 8 cents per ton. From A to B there were several competing lines of railroad, but they had successfully formed a traffic agreement to keep up rates. From A to C the competing lines were cutting rates, and the 8-cent rate was necessary if the X railroad was to obtain business. At D, a station beyond C, where there was also competition, the X railroad carted goods free for all shippers who would agree to ship all their goods by it.
   Have shippers at B or at D any legal complaint?

Source: Harvard University Archives. Harvard University, Examination Papers 1873-1915. Box 8, Bound volume: Examination Papers, 1906-07; Papers Set for Final Examinations in History, Government, Economics,…,Music in Harvard College (June, 1906), pp. 43-46.

Image Source: Harvard Law School ca. 1901 from the Detroit Publishing Company photograph collection (Library of Congress).

 

The economics department at Harvard at the start of the 20th century offered a course taught by the Law School assistant professor, Bruce Wyman (b. 15 June 1875; d. 21 June 1926), to provide future businessmen an overview of commercial and industrial relations law. Students expecting to go to study law were explicitly not encouraged to take the course.

An earlier post begins with the long personal report Wyman wrote about his life and career for the 25th anniversary of his Harvard Class of 1896. 

Bruce Wyman pops up in an even earlier post. Harvard President Lowell complained to Professor Frank Taussig about Wyman’s course in the economics department having too soft a grade distribution (making it a “snap” course). Also we learn there the somewhat scandalous circumstances that led to Wyman’s forced resignation from his Harvard Law professorship in December 1913.

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Wyman’s exams from earlier years

1903-04
1902-03
1901-02

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Course Enrollment
1904-05

Economics 21. Asst. Professor Wyman. — Principles of Law governing Industrial Relations and Commercial Law.

Total 182: 14 Graduates, 65 Seniors, 76 Juniors, 15 Sophomores, 12 Others.

Source: Harvard University. Report of the President of Harvard College, 1904-1905, p. 75.

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Course Description
1904-05

[Economics] 21. Principles of Law governing Industrial Relations. — Commercial Law. — Competition and Combination. Mon., Wed., and (at the pleasure of the instructor) Fri., at 11. Asst. Professor Wyman.

Course 21 is open to those students who will complete their undergraduate work in 1904-05.

This course considers certain rules of the law modern trade and the governing the course of organization of modern industry. The commercial law is thus taken up at large in its application to the conduct of modern business. The aim of the course is to give to students who mean to enter business life some contact with the law and some understanding of the legal point of view; at the same time the problems brought forward are actual and the rules of law discussed are specific, so that the instruction may prove of service in a business career. The course forms a natural introduction to the study of law, as it involves most of the elementary principles in one way or another. As the course deals with adjudication and legislation on questions of first importance in the economic development of modern times, it may also be of advantage to all those who wish to equip themselves for the intelligent discussion of issues having both legal and economic aspects.

In 1904-05 five principal topics will be discussed: Competition — Combination — Association — Consolidation — Regulation. The conduct of this course will be by the reading and discussion of cases from the law report. The cases selected cover the whole course of the industrial organization, so that both fact and law involved are informing.

Source: Harvard University. Faculty of Arts and Sciences. Division of History and Political Science Comprising the Departments of History and Government and Economics, 1904-05 (May 16, 1904), pp. 48-49.

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ECONOMICS 21
Mid-year Examination, 1904-05

Answer all questions.

In the case of each question give a specific answer about one line in length, then proceed in subsequent paragraphs to discuss the matter involved both upon principle and upon authority.

1. A is the manufacturer of the X infants’ food; B is the manufacturer of the Z infants’ food. B inserts an advertisement in various magazines, which contains the following clause: — “The Z food is twice as nutritious as the X food.” A sues B for the publication of this statement; in this suit he offers to prove by expert testimony that the X food is in fact more nutritious than the Z food. The court is asked by B to dismiss the action of A. What result?
2. A is a workman employed in the works of B. B carries an indemnity policy covering accidents, written by C. A gets his hand crushed in one of the machines, which is improperly guarded. C attempts to make a settlement with A at $500, which A refuses; thereupon C threatens to get A discharged by B, but A still refuses to compromise. Next, C goes to B and demands that A be discharged. B is at first unwilling, but when C threatens to take advantage of the clause in the policy permitting cancellation of the policy upon five days’ notice, B reluctantly undertakes to discharge A at the end of the week for which he is employed, protesting that A is a good workman and he had intended to give him regular employment. After A is thus discharged he brings suit against C for damages for loss of his employment. What result?
3. A is a manufacturer of tomato catsup. He puts his product on the market in a tapering bottle with a screw cap of tin; this bottle he packs in a round pastboard carton covered with manila paper; on the wrapper is a picture of a bottle filled with red catsup, around which in black type are the brand and address. B another manufacturer of tomato catsup puts his product on the market in much the same way — in a tapering bottle with a screw cap of tin, wrapped in a round carton of pastboard with a label showing a bottle of red catsup, but with the name of his brand in plain black letters, as also his own name and address. A seeks an injunction against B. What result?
4. The North American Soap Company is organized under the laws of New Jersey. It buys from A, B, C, D, E, F, and G, who are the principal manufacturers of soap in the United States, all of their soap factories. The North American Company in the case of each purchase from A, B, C, D, E, F, and G takes an agreement from each not to engage in the soap business for ten years in the United States. The scheme of the promoters is to get control of the market by this process. B starts a large soap factory in New York two years later. Can he be stopped by injunction?
5. A is a dealer in coal in San Francisco. An agreement is made between B, C, D, E, F, and G, who are the principal dealers in coal in that city that they will sell for one year at prices to be fixed by the majority. The combination then votes to cut prices 20% for the next 4 months. At the end of 3 months, A’s capital is exhausted by this cut throat competition, and he retires from business a ruined man. A now brings suit against B for his losses. What result?
6. In a certain factory operated by X, A is employed by the week with 300 others, among whom are B, C, D, E, F, and G. B, C and D propose the organization of a trades union which every employee joins, except A who refuses. The trades union, at an early meeting, votes unanimously that theirs must be a union shop. The committee accordingly waits on X and informs him that unless A is discharged a strike will be called at the end of the week. X reluctantly discharges A at the end of the week. A now sues G for damages. What result?
7. The X hotel corporation is duly organized by A, B, and C. It builds a hotel the next year. Three years later A buys from B and C all of their stock. The next week A executes a mortgage upon the hotel property to the Y bank to secure a loan himself of $10,000; this is signed: — “X company, by A.” The week following, A transfers one share to M and another to N. A meeting of the shareholders in the X corporation is then called, A, M, and N attending; at this meeting it is unanimously voted to borrow $10,000 from the Z bank and to execute a mortgage upon the corporate property to secure the loan, which A is authorized to execute in the name of the company. This mortgage upon the hotel property is accordingly executed to the Z bank, being signed: — “X company, by A.” Which of these mortgages, the Y bank or the Z bank, will come out ahead, if the hotel property is only worth $15,000, not enough to pay both?
8. The X corporation is organized with a capitalization of $100,000; its shares are subscribed on the basis of 50% paid down, and all are issued. A year later it issues $50,000 in first mortgage bonds, and the next year $20,000 in second mortgage bonds. In the third year it goes into insolvency owing $60,000 to general creditors for goods. The sale of its properties realizes $50,000. In the final winding up how do the following parties come out: the first bonds? the second bonds? the general creditors? and the stockholders?

Source: Harvard University Archives. Harvard University. Mid-year Examinations, 1852-1943. Box 7, Bound Volume: Examination Papers, Mid-Years 1904-05.

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ECONOMICS 21
Year-end Examination, 1904-05

Answer all questions. Give full reasons. Cite some authorities.

1. Can the following be stopped as unfair competition:—
   (1) One steamship company gives a rebate of 25% to those shippers who agree to give all their business and not to deal with a rival steamship company; (2) A tobacco manufacturer gives jobbers 5% discount extra if they will agree not to handle any goods of rival companies which sell for less than its own brands; (3) A manufacturer of shoe machinery who sells his machines only upon an agreement by the purchaser to buy the staples fed into it of the manufacturer finds that a rival manufacturer is offering staples at 25% off; (4) An oil corporation controlling 80% of its market reduces prices 50% in districts where competitors appear while raising prices 50% in districts where competition has been crushed out; (5) A gas company decides not to deal with any applicant who has had electricity put in by a rival company.
2. Eight corporations, constituting eighty per cent. of the soap manufacturers of the United States form a partnership to handle sale. Each corporation pays in $10,000 as working capital. It is provided that every manufacturer in the partnership shall have the right to run his own works in his own way, producing as much as he pleases, selling at what price he pleases. But it is further provided that every manufacturer shall pay to the treasurer of the partnership 2½ cents per lb. upon all soap made and sold by him. By another clause any member of the association has the right to withdraw at the end of any quarter. At the end of each quarter, it is stipulated, the treasurer shall pay over to each member of the partnership a share of the fund thus accumulated pro rata according to the capacity of his plant. At the end of the first quarter the X corporation, a member, withdraws; it has paid into the partnership $322; the pro rata share due is $5800. The X corporation now asks counsel what its rights are (1) To the $322; (2) To the $5800; (3) As to the $10,000; (4) Suppose the partnership were insolvent, what would be the respective rights of the X corporation and the general creditors of the partnership? (5) If the X corporation is content to remain in the arrangement, can its dissenting majority stockholders who believe the policy unsafe force it to withdraw?
3. A and B are co-partners engaged in cotton spinning. One C comes to A and B, whom he finds together in the office of the firm, and offers them 10,000 bales of cotton at 11c. per lb. This is a very large purchase for this firm to make, and the price is rather high as the price is falling. The proposition appeals to A, who says to B, “shall we take the cotton?” B says, “No.” Then A turns to C, who has heard all, and says “we need that cotton, despite what B says, and we will sign a contract with you;” thereupon, against the continued protests of B, A and C executed a contract for the cotton. A signs it, “A & B by A,” B forbidding him to do so to the last. The partnership later refuses to carry out the contract; C sues B for the damages caused by the breach. (1) What result in case as stated? (2) Suppose the partnership was buying a large amount of cotton in order to corner the market, which fact was unknown to C; (3) Would your answer be different if A and C had contracted for the cotton in B’s absence, A secretly intending to sell the cotton and run away with the proceeds? (4) Suppose while A and C were contracting, but before they had struck the bargain, B died without either knowing it; (5) Suppose the purchase price of the cotton was higher than the market, it being understood that in consideration of this C should cancel a debt of $4000 which A owed him.
4. A buys a mining claim for $8000; he sells it to B and eight others for $12,000, who agree that if they are successful in unloading it upon a corporation which they are planning to form for that purpose he shall have the same share of profits that the rest get. After trying to sell it to various other people for $12,000 and failing to do so (the best offer they can get is $4000) they all form the X corporation with their office boys as stockholders and directors, who vote to buy the mining claim of them for $62,000. The mine when developed by the people who buy into the X company turns out to be worth $500,000 at the least calculation. (1) What are the rights of the X company against A? (2) Suppose it had turned out to be worth only $1000? (3) Suppose the X corporation had already been formed by other parties before this syndicate was made up and that the directors for the time being had foolishly bought the property from the syndicate for $62,000 when most people would say that it was only worth $8000, what could the stockholders of the X company do about it? (4) Suppose B happened to be one of this board of directors, what would be the rights of the stockholders of the X company? (5) Suppose B happened to be a stockholder in this X corporation that bought the mining claim under the circumstances described in (3), could minority stockholders in the X corporation which had voted by a small majority (which included B’s vote) prevent the purchase from being carried through?
5. Three gas companies, — the A Co., the B Co., and the C Co., are engaged in supplying gas in a certain city. The principal stockholders are friendly, and they desire to consolidate. The following schemes are proposed; how many of these may be put through in any way (a) if every stockholder in the A Co., the B Co., and the C Co. is willing? (b) if minority stockholders dissent? (1) The first scheme proposed is to have the shares in the constituent companies conveyed to a board of three trustees who shall issue trust certificates retaining the voting powers; (2) the second scheme proposed is to have the shares sold to a holding corporation organized to buy them, the shareholders in the a holding constituent companies being offered either the market price of the shares in cash or in shares in the holding corporation; (3) the third scheme proposed is for the constituent companies to vote to sell all their property and franchises for cash to a new corporation organized to buy the properties, the cash to be distributed to the stockholders in the old companies pro rata; (4) the fourth scheme proposed is for the shareholders in the constituent companies to agree to elect identical boards of directors in accordance with a vote among themselves; (5) a fifth scheme is for the A Co. and the B Co. to execute leases of all of their properties to the C Co.
6. Are the following laws constitutional or do they deprive of life, liberty, and property without due process of law?: (1) prohibiting any manufacturing corporation from stipulating in any employment contract that one half of the employee’s pay shall be in orders for supplies from the employer’s general store; (2) forbidding the manufacture of clothing in any room in any tenement house; (3) forbidding the running of a department store, which is defined as an establishment where two of the following businesses are carried on: the sale of foods, the sale of dry goods, the sale of furniture, the sale of hardware; (4) prohibiting the sale of oleomargarine colored yellow, and requiring any one who sells it to put a sign out which shall say in letters one foot high “Oleomargarine sold here”; (5) making eight hours the limit of time for which any one may be employed to work in any factory.
7. Are the following refusals to enter into business relations legal? (1) By a telephone company which will install an instrument in the office of only one telegraph company; (2) by a railroad which will only allow one telephone company to establish a pay station in a union station; (3) by an electric company which refuses to furnish electricity for power; (4) by a sleeping car company which after assigning a traveller to “lower 5” reassigns him half an hour later to “upper 8” without making any explanation; (5) by a railroad which refuses to furnish facilities for doing the express business itself upon the ground that it has entered into an exclusive arrangement with one express company.
8. Do the following constitute illegal discriminations in commercial dealings? (1) By a steamship company which gives 20 per cent. rebate to all shippers who ship 1000 tons per year; (2) by a railroad which charges ten cents excess fare to passengers who have no tickets, even if they have found the ticket office closed; (3) by a hotel keeper who refuses to take in late at night a man and his wife who find themselves unable to get into their own house nearby because they have lost their key; (4) by a gas company which refuses (although offered prepayment) to sell gas to a rival company; (5) by a gas company which finds itself unexpectedly unable to supply its customers; (6) by an electric company which makes it a rule to supply the transformer free to such applicants only who have the wiring of their houses done by it.

Source: Harvard University Archives. Harvard University, Examination Papers 1873-1915. Box 7, Bound volume: Examination Papers, 1904-05; Papers Set for Final Examinations in History, Government, Economics,…,Music in Harvard College (June, 1905), pp. 38-42.

Image Source: Lithograph by John Jepson “Harvard scores” published in 1905. From the Library of Congress Prints and Photographs Division Washington, D.C. 20540.

 

To the archive of old economics exams this post adds the mid-year and final exams for the course “Principles of Law governing Industrial Relations” taught at Harvard in 1903-04 by assistant professor Bruce Wyman.

Since most undergraduate economics majors then as now do not pursue further graduate studies in economics, the Harvard economics department offered introductory courses in accounting and business law as a vocational sop in its early 20th century course offerings.

Two earlier sets of exams for this course have been transcribed and posted:  1901-02 (includes his 1921 report to the Class of 1896).; 1902-03 (includes an obituary for Bruce Wyman).

Fun fact: Wyman was alleged to offer “snapper” (i.e., easy) courses for Harvard undergraduates. Included in that post is a New York Times report of a scandal that led to his resignation from the Harvard Law School faculty.

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Course Enrollment

Economics 21. Asst. Professor Wyman. — Principles of Law governing Industrial Relations.

Total 148: 11 Graduates, 89 Seniors, 30 Juniors, 8 Sophomores, 10 Others.

Source: Harvard University. Report of the President of Harvard College, 1903-1904, p. 67.

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ECONOMICS 21
Mid-Year Examination. 1903-04

Answer eight questions. Give reasons with care.

1. The general manager of the New York Magazine resigned his position to set up a rival magazine which he called the Empire Magazine. Before and after his resignation he solicited business for his new magazine from advertisers in the old. When he left he took a copy of the list of subscribers, intending to write them just before their subscriptions expired, urging them not to renew, but to subscribe to his new magazine, as all the good features of the New York would be found in the Empire in improved form. May the owner of the New York have any injunction against the former manager?
2. Taddy & Co., manufacturers, sold large quantities of Myrtle Grove tobacco to Nelten & Co., jobbers, upon certain conditions in the invoices headed “minimum retail prices,” and below “acceptance of the goods will be deemed a contract between the purchaser and Taddy & Co.” Stenous & Co., retailers, bought a large amount of this Myrtle Grove tobacco from Nelten & Co., which they later offered to their customers at less than the minimum retail price. Can Taddy & Co. have an injunction against Stenous & Co.?
3. A travelling agent of the Globe Stove Works goes through the Southwest getting small dealers to sign contracts for stoves. The travelling agent of the World Stove Works crosses his track often. In several instances the agent of the World Company, acting under orders from headquarters, makes a special price to dealers that have bought from the Globe Works, and induces them to cancel their orders for Globe stoves and buy the World stoves. Has the Globe Company any remedy against the World Company?
4. The National Harrow Company sent broadcast the following circular: “We believe that we have the patents, and we have determined henceforth to sue any dealer handling these infringing harrows wherever they are found.” The infringing harrows referred to were those of the Davison Company. During the year following these circulars the business of the Davison Company fell off 50 per cent. In the year after that the Supreme Court decided in one of the suits which the National Company had prosecuted in good faith that their principal patents were invalid. The Davison Company now sue the National Company for damages done their business by the circulars quoted above. What decision?
5. Most of the employees in certain breweries belong to a union, most of the brewers are in an association. By an agreement between the union and the association, any brewer must discharge any employee not belonging to the union, if the employee refuses for one week to join the union after being requested to do so. An engineer is taken on at one of the breweries; he refuses to join the union at request; one week later the secretary of the union gave notice to the brewer to discharge the engineer, which was accordingly done. Has the engineer any suit for damages against the secretary of the union?
6. By a contract between the United States Fuel Company and the Ohio Operators Association, composed of ten concerns engaged in producing coal and coke in a certain district, the company was to handle for a term of years the entire output of the mines of the association intended for the western market. The amount to be furnished by each member of the association was to be fixed by its executive committee; the fuel company was to fix a uniform price from time to time at which it should sell the products turned over. The net profits of the fuel company less its commission were to be turned back to the members of the association pro rata. Is this agreement enforceable?
7. There are two ice manufacturing companies in Tuscalosa, Ala. The second makes a lease of all its plant to the first for ten years for a high rental; then the first leases this same plant to third parties to be used only as a store house; thereupon the first ice company increases its rate 50 per cent. according to the previous understanding with the second company. This situation lasts for a year, when a new third company constructs a new plant with modern machinery and puts its rates at 50 per cent. below the first company. The first company reduces its rates, and thereupon refuses to pay the full rental to the second company according to the terms of the lease. What rights has the second company against the first company?
8. An act of legislature provided: “That all the proprietors of the Charles River Marshes, are hereby constituted a corporation under the name of the Marsh Company, with authority to assess and collect from each member ten per cent. upon the valuation of his land, to be expended in making and maintaining a street across the same.” Nine of the ten proprietors after giving the tenth notice of the proposed meeting, meet, organize the corporation, and vote an assessment upon all the members for the amount specified in the charter. Suit by the company against the tenth man to collect the assessment. What decision?
9. A company was formed by A. Solomon and his two sons, each subscribing one share, the statute for incorporations requiring “three associates each subscribing at least one share.” The capital stock was fixed at $100,300 of which $300 was paid in cash for the three original shares. A. Solomon then conveyed the real estate, machinery, stock in trade and good-will of his shoe business to this corporation for $100,000, which it was all worth at a conservative valuation. He took in payment debenture bonds to the amount of $50,000, a note for $25,000 and paid up shares to the face of $25,000. The remaining 50,000 shares later were sold at 50 each by the company, a discount of 50 per cent. being allowed. A year later a financial crisis comes, and the company is put in a receiver’s hands. He finds besides what has been related that the company has incurred new floating indebtedness to the amount of $25,000, while the property left may be sold for $65,000. How should the receiver wind up this corporation?

Source:  Harvard University Archives. Harvard University, Mid-year examinations 1852-1943. Box 7, Bound volume: Examination Papers, Mid-Years, 1903-04.

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ECONOMICS 21
Year-End Examination. 1903-04

Answer any six questions. Give reasons.

1. A soap company buys the majority of the stock in a competing soap company. At the next meeting of this corporation it elects a board of directors. This new board of directors of the second company vote to enter into a five years’ contract with the first company to sell to it the whole product of the factory at a price which will barely cover the cost of production. Have the minority stockholders in the second company any relief at law?
2. Three competing steel corporations agree to manufacture and sell rails at joint profit, accounting to each for a pro rata share upon each sale, settlements to be made semi-annually. One of these companies manufactures as much as possible, then sells all at the high prices prevailing since the arrangement, and then withdraws from the pool refusing to account to the others. Have the other two any remedy against it?
3. An oil corporation is organized with an authorized capitalization of $500,000,000. It issues all its stocks for a variety of properties (distilleries, pipe lines, etc., etc.) which its directors value at $500,000,000, as these properties before consolidation are earning for their owners $50,000,000 per annum. As a result of this monopolization the new corporation earns $100,000,000 per annum. Is there any relief against this situation at law?
4. A natural gas company is engaged in the supply of gas to a certain city. After about two thirds of the inhabitants have been taken on, it was discovered that by sinking more wells no more gas is gotten. The present supply is no more than enough to keep up a sufficient pressure to give the present takers proper service. In this condition of things a householder who lives upon the pipe lines of the company, in the centre of the city, applies to the company for gas. The company refuses him. Should a mandamus be granted?
5. A telephone company in New York operates as a separate branch of its business a service of messengers on call. A messenger company applies to the telephone company for a telephone. The telephone company refuses upon the ground that the messenger company wish the telephone connection in order that people all over the city may summon messengers from it, which would be competition with the business of the telephone company. What decision?
6. A traveller took a train on a railroad and presented to the conductor an excursion ticket which was in two parts. The conductor accidentally punched the wrong coupon; he then wrote on the back “cancelled by mistake” and signed the statement. The rules of the company also required a conductor under such circumstances to draw a circle about the hole accidentally punched. This circle not having been drawn, the conductor on the return trip refused to accept the punched ticket, and ejected the passenger upon his refusal to pay fare. Has the passenger any cause of action? If so, for what?
7. A State passes a statute forbidding the sale of oleomargarine colored any shade of yellow. Is this constitutional?

Source:  Harvard University Archives. Harvard University, Examination Papers 1873-1915. Box 7, Bound volume: Examination Papers, 1904-05; Papers Set for Final Examinations in History, Government, Economics, … in Harvard College, pp. 40-41.

Image Source: Harvard Law School ca. 1901 from the Detroit Publishing Company photograph collection (Library of Congress).

 

In addition to a course in accounting that was introduced into the undergraduate curriculum at Harvard for students expecting to go on into business, the following course taught by a young Law School lecturer, Bruce Wyman (b. 15 June 1875; d. 21 June 1926) was offered to provide future businessmen an overview of commercial and trade law. In the announcement for the previous academic year students expecting to go to study law had been explicitly not encouraged to take the course.

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Earlier posts concerning
Prof Bruce Wyman

https://www.irwincollier.com/harvard-law-and-economics-syllabus-and-exams-wyman-1901-1902/

https://www.irwincollier.com/harvard-course-with-a-snapper-problem-1910/

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Obituary of Bruce Wyman (1876-1926)

PROF BRUCE WYMAN DIES AT WABAN HOME
Well Known as Authority on Railroad Rates
Taught at Harvard Law and Wrote Many Text Books

NEWTON. June 21—Prof Bruce Wyman, internationally-known authority on public service corporations, railroad rates and restraint of trade, died of heart disease today at his home, 15 Winnetaska road, Waban. He recently had celebrated his 50th birthday anniversary.

Born in Hyde Park, June 15, 1876, the son of Ferdinand A. and Harriet Ann (Bruce) Wyman, he prepared for Harvard at the Chauncy Hall School, Boston, being graduated with the highest possible honors. He was equally distinguished at Harvard, from which he was graduated in 1896. He continued his studies, receiving his master of arts from Harvard the next year and was graduated from the Harvard Law School in 1900.

Prof Wyman made an enviable record during the eight years at Harvard and was once made a member of the faculty of the Law School, making a specialty of public carriers and the laws pertaining to them. He held his position at Harvard until 1914, when he voluntarily resigned following testimony before the Public Service Commission at a railroad hearing that he was retained by the New Haven Railroad.

Wrote Many Books

He did not stop his scholastic work, however, but became a lecturer In the Chicago Law School and Blackstone Institute, and later became affiliated with the Portia Law School of Boston, teaching there for nine years and also serving as its secretary.

His scholarly labors also included the writing of a great mass of papers on his field and he published many books, some of them becoming text books at various schools and universities. Among his books are: “Restraint of Trade,” “Mortgage Securities,” “Administrative Law,” “Railroad Rate Regulation,” “Public Utilities,” “Control of the Market,” “Public Service Corporations.”

Prof Wyman also carried on a considerable practice in Boston and Washington. His office in Boston was at 291 Washington st. From 1900 to 1908, he was engaged in general work, but from then on he entered more and more into a consultive practice. He was retained by the New Haven Railroad for years, having charge of all claims filed before the Interstate Commerce Commission in reference to the road. The New York Central and many other railroads also retained him. He was also counsel for the National Civic Association and an investigator for the Directors of the Port of Boston. As an outstanding authority in his field, Gov Eugene Foss called him into consultation and game him an active part in the framing of the Public Service Commission Act.

Funeral Tomorrow

Prof Wyman was married June 30, 1902, to Ethel Andrews of Cambridge. Before moving to his late home in Waban he lived at 16 Quincy st, Cambridge. He was a member of the Phi Beta Kappa and the Theta Delta Chi Fraternities, was a Republican in politics and an Episcopalian in religion. He was also a member of many social organizations of Boston, Newton, Cambridge, New York and Washington.

He is survived by his wife; a son, Andrews Wyman, who will be graduated from Harvard this week; a daughter, Rosemary Wyman, a student at Wellesley; a sister, Miss Martha A. Wyman of Somerville, and a brother, Walter F. Wyman of Arlington.

Funeral services will be held at the old Wyman home town of Littleton on Wednesday. Services will be conducted at the Littleton Unitarian Church and at Westlawn Cemetery.

Source: The Boston Globe (June 22, 1926), p. 23.

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Course Description
Economics 21
1902-03

21. *The Principles of Law in their Application to Industrial Problems. — Competition and Combination. , Wed., and (at the pleasure of the instructor) Fri. at 11. Mr. Wyman.

This course considers certain rules of the law governing the course of modern trade and the organization of modern industry. The commercial law is thus taken up at large in its application to the conduct of modern business. The aim of the course is to give to students who mean to enter business life some contact with the law and some understanding of the legal point of view. At the same time the problems brought forward are actual and the rules of law discussed are specific, so that the instruction may prove of service in a business career. As the course deals with adjudication and legislation on questions of first importance in the economic development of modern times, it may also be of advantage to those who wish to equip themselves for the intelligent discussion of issues having both legal and economic aspects.

In 1902-03 five principal topics will be discussed: Competition — Combination — Incorporation — Consolidation — State Control. In Competition the first issue is the extent to which competition is allowed: in some cases competition is free, in other cases it is unfree. Competition is legal unless there is franchise. The second issue is the methods by which competition is permitted: in some cases competition is fair, in other cases it is unfair. Fraud, Disparagement, and Coercion are not legal. In Combination in Restraint of Trade, the division is between a suppression of competition and a regulation of competition. For example, the railroad pool is illegal, the factors agreement is legal. Thus it is seen that a combination which involves unreasonable restraint and unfair competition is illegal, while if it involves reasonable restraint and fair competition it is legal. Here are examined the corner and the strike. In the Corporation only the main principles involved are taken up: the organization of the corporation and the administration of the corporation. In the treatment of the Consolidation all the previous discussion is summoned up. The public problems presented by the reorganization of the industrial system, now going on so fast, is one question; what regulation of combination there should be, is the other. The most stress is laid upon the last topic — State Control. The proper regulation of the public callings — the railroads and the like — is discussed at much length; so also is the proper police of the private callings — the factories and the like.

The conduct of this course will be by the reading and discussion of cases from the law reports. The cases selected cover the whole field of the industries and the whole course of the trades, so that both fact and law involved are informing. Course 21 is designed for Seniors and graduate students who intend to enter business. If any others wish to take the course they must obtain written consent of the instructor.

Source: Harvard University. Faculty of Arts and Sciences, Division of History and Political Science  [Comprising the Departments of History and Government and Economics], 1902-03. Published in The University Publications, New Series, no. 55. June 14, 1902.

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Course Enrollment
Economics 21
1902-03

Economics 21. Mr. Wyman. — Principles of Law in their application to Industrial Problems.

Total 58: 4 Gr., 33 Se., 13 Ju., 2 So., 6 Others.

Source: Harvard University. Annual Report of the President of Harvard College, 1902-03, p. 68.

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Course Examinations
Economics 21
1902-03

ECONOMICS 21
Mid-Year Examination
1902-03

Answer eight questions. Give reasons with care.

1. The Bradford Gas Company was chartered to supply gas in Bradford; the Pudsey Gas Company in a similar way was engaged in the supply of gas in Pudsey. It appeared in evidence that the Bradford Company was about to furnish gas to a large mill inside the city limits of Pudsey. May the Pudsey Company have an injunction?
2. The makers of Vance’s Infant Food advertise that “Vance’s Food is far more nutritious and healthful than Mellen’s Food; experience shows that babies grow fatter on Vance’s Food than on any other; the analysis by our expert Dr. Muspratt shows that Vance’s Food has 98 per cent. nutritive elements to 78 per cent. such elements in Mellin’s Food.” The proprietors of Mellen’s Food sue the proprietors of Vance’s Food, and in their statement offer to prove the superiority of Mellen’s Food to Vance’s Food in all respects. How will the case probably be decided?
3. A travelling agent of the Globe Stove Works goes through the Southwest getting small dealers to sign contracts for stoves. The travelling agent of the World Stove Works crosses his track often. In several instances the agent of the World Company, acting under orders from headquarters, makes a special price to dealers that have bought from the Globe Works, and induces them to cancel their orders for Globe stoves and buy the World stoves. Has the Globe Company any remedy against the World Company?
4. A biscuit company begins the sale of a product which they call the “Uneeda biscuit.” Another company later begins the sale of “Iwanta biscuit.” The makers of the “Uneeda biscuit” bring a bill against the makers of “Iwanta biscuit” for an injunction. They next institute a process to get registration of “Uneeda” as their trademark. What is the probable fate of each proceeding? Can they succeed in both?
5. The National Harrow Company send broadcast the following circular: “We believe that we have the patents, and we have determined henceforth to sue any dealer handling these infringing harrows wherever they are found.” The infringing harrows referred to were those of the Davison Company. During the year following these circulars the business of the Davison Company fell off 50 per cent. In the year after that the Supreme Court decided in one of the suits which the National Company had prosecuted in good faith that their principal patents were invalid. The Davison Company now sue the National Company for damages done their business by the circulars quoted above. What decision?
6. There are two ice manufacturing companies in a Southern city. The second makes a lease of all its plant to the first for ten years for a high rental; then the first leases this same plant to third parities to be used only as a storehouse; thereupon the first ice company increases its rate 50 per cent. according to the previous understanding with the second company. This situation lasts for a year, when a new third company constructs a new plant with modern machinery and puts its rates at 50 per cent. below the first company. The first company reduces its rates, and thereupon refuses to pay the full rental to the second company according to the terms of the lease. What rights has the second company against the first company?
7. The Steel Workers Union declares a strike at the steel mills to get an increase of wages. A picket of six men is placed by the Union, two at each end of the block and two at the mill gate, to persuade new workmen that this is a just strike, and that therefore they should not seek employment. Can the employers have an injunction against their employees?
8. A retail lumber association agrees not to buy lumber of any wholesale lumber dealer who sells direct to customers. A certain wholesale dealer begins to sell to customers direct in car load lots only. Thereupon the executive committee of the lumber association sends notices to all members, warning them not to buy any lumber of this wholesale dealer upon penalty of a fine to be paid in accordance with the by-laws. May the wholesale dealer sue the members of the association for damages caused thereby to his business?
9. The makers of the Cow Brand of saleratus make an arrangement with jobbers that if the jobbers will not sell any saleratus below five cents per pound, the makers of the Cow Brand will grant those jobbers a special discount upon settlement of bills. The makers of the Bull Brand, an inferior quality, are thereby damaged, since the jobbers can make no sales of the Bull Brand under those circumstances. May the makers of the Bull Brand sue the makers of the Cow Brand?

Source: Harvard University Archives. Mid-year Examinations 1852-1943. Box 6. Papers (in the bound volume Examination Papers Mid-years 1902-1903).

*  *  *  *  *  *  *  *  *  *  *  *  *  *

ECONOMICS 21
Year-end Examination
1902-03

Answer nine questions.

1. A, B, and C, who comprise all the stockholders in the Central Mfg. Co., execute a deed to X, in their names, describing themselves as sole owners of all the shares in the Central Mfg. Co., which deed purports to convey to X the mill owned by the corporation. The next day A, B, and C hold a corporation meeting, and vote to sell the same mill to Y; the proper officers of the corporation accordingly execute a deed in the name of the corporation to Y. Who gets the mill, X or Y? Both pay full value and neither has notice of the other.
2. A general incorporation act provides that seven persons may, by subscribing their names to a memorandum of association, form a corporation. A and six clerks of A sign the memorandum. The capital stock is fixed at $200,000. At the subscription A agrees to take 994 shares and the others one each. The corporation agrees to take the factory of A at a valuation of $150,000, which is not unreasonable. The corporation, in pursuance of the bargain, issues to A $99,400 in paid up shares and $56,000 in first mortgage bonds. The business of the corporation is begun and one B subscribes to $100,000 of the shares, for which he pays $50,000. Later the business incurs debts to the amount of $90,000, which it cannot meet. Finally it fails, with $50,000 assets left. What shall be done?
3. Bill in equity by a minority stockholder in a cotton manufacturing company, alleging (1) that the majority are about to expend half the capital in purchasing cotton at such a high price that it will be impossible to manufacture it at a profit; (2) that the majority are about to purchase a steamboat to run in opposition to the existing line of freight boats. Will the stockholders get an injunction in either (1) or (2)?
4. A gets a mining corporation formed to buy of him a certain gold mine which he has bought for $10,000, — that is all he believes it to be worth; but he unloads it upon his dummy corporation for $100,000. The stock in this corporation is sold to the public upon a glowing prospectus. Strangely enough, the gold mine upon working proves to be worth $500,000. Has the corporation any right to sue A now?
5. The directors in a bank do no more than examine the quarterly summaries of the general manager and compare them with the report of the chief auditor. It turns out that the manager and the auditor have been in collusion all the time for five years to cover up embezzlements and divide the plunder. When the bank fails in consequence the directors are sued by the depositors. What decision?
6. A partnership pool is formed between four oil corporations that have control of 80% of the product of their district. By the terms of it all expenses and all receipts are to be pooled and the net earnings paid over at the end of every year in proportion to capitalization. At the end of the second year three of the corporations divide up the profits and refuse to give the fourth anything. The fourth brings suit. What will it recover?
7. A securities corporation is formed under the laws of a State which permits a corporation to hold stock in another corporation. This corporation purchases by exchanges of its stock 90% of the stock of the X railroad and 90% of the stock of the Y railroad. The X railroad and the Y railroad lie in distant States, the laws of which forbid consolidation of competing railroads such as the X and Y railroads are throughout. Is this attempted merger legal?
8. A railroad corporation refuses to pay its engineers $3.75, an increase of 10% over previous per diem wages. Accordingly the engineers quit work; but, although they watch the situation closely, they offer no show of force. The railroad posts a notice that no more freight will be received until further notice. Have they a legal right to do this?
9. A gas company publishes a rule that customers who wish gas must deposit $25. However, gas is furnished to a man who lives on X Street for a month on credit. When he moves to Y Street he refuses to pay for gas consumed at X Street, and the company refuses to supply him with gas at Y Street until he does. The man thereupon tenders the company $25 deposit and demands gas in Y Street; he is refused again and now brings suit. What decision?
10. A telephone company also furnishes a messenger service as a separate part of its business. A company which only furnishes messenger service applies for a telephone. The telephone come refuses on the ground that their messenger business will be injured thereby. Is this refusal justifiable?

Source: Harvard University Archives. Examination Papers 1873-1915. Box 6. Papers Set for Final Examinations in History, Government, Economics, History of Religions, Philosophy, Education, Fine Arts, Architecture, Landscape Architecture, Music in Harvard College, June 1903 (in the bound volume Examination Papers 1902-1903).