The Growth of the American Economy: An Introduction to the Economic History of the United States

By Robert G. Albion; Harold F. Williamson | Go to book overview

CHAPTER 30
Industrial Concentration and Government Anti-Trust Policy

The Concentration Movement in American Business

IN THE UNITED STATES after 1870, as in other countries of the Western World, the size of individual industrial firms began to increase rapidly. Many individual companies expanded greatly, and, in addition, groups of firme; combined or merged into single business units with very large investments, capacities, and outputs. This movement progressed so rapidly that within 35 years the control of the typical industrial market was concentrated in the hands of relatively few large firms.1

The movement toward industrial concentration was afoot before 1870 and is continuing today. Between 1879 and 1904, and again in a lesser degree during the 1920's, however, the process of industrial concentration was so rapid that it has often been referred to as a merger movement. This merger movement is a primary aspect of the recent development of the American economy, and accordingly some attention must be devoted to its principal origins, to the details of its development, to its effects on the structure of the modern economy, and to the problems it has raised for public policy toward industry.


The rise of large-scale industrial firms

The development of industrial concentration, or in a narrower sense, the rise of "monopolies" or "trusts," was in no sense an aberration from the orderly development of a free enterprise economy. It was rather one of the several phases of the adaptation of economic life to the primary stimuli of technological innovation that had influenced the in-

____________________
1
The growth in the average size of individual firms from 1849 to 1899 is indicated by the following data from W. L. Thorp The Integration of Industrial Operations ( Census Monograph III, Washington, 1924, pp. 28-30) for factories and band and neighborhood industries:
YearAverage Value
of Product
YearAverage Value
of Product
1849$8,284 1879$21,152
185913,429 188926,371
186913,428 189925,382

These figures, however, understate the progress of concentration because they do not recognize the increasing dispersion among the sizes of firms. By 1904 there were at least 318 large industrial combinations in the United States that had assimilated no less than 5,200 original plants. Many of these controlled more than half the output of their rejective industries. (See John Moody, The Truth About the Trusts, pp. 485-487. New York: Moody Publishing Company, 1904.)

-708-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
The Growth of the American Economy: An Introduction to the Economic History of the United States
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
/ 810

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

    Already a member? Log in now.