The Age of Big Business: A Chronicle of the Captains of Industry — John Shaqi
The Age of Big Business: A Chronicle of the Captains of IndustryHendrick, Burton Jesse
History
The Age of Big Business: A Chronicle of the Captains of Industry
Hendrick, Burton Jesse
Big business -- United States -- History; Industries -- United States -- History
Ingenious as was this legal device, it did not stand the test of the
courts. In 1892 the Ohio Supreme Court declared the Standard Oil Trust
a violation of the law and demanded its dissolution. The persistent
attempts of the Standard to disregard this order increased its
reputation for lawlessness. Finally, in 1899, after Ohio had brought
another action, the trust was dissolved. The Standard interests now
reorganized all their holdings under the name of the Standard Oil
Company of New Jersey. Again, in 1911, the United States Supreme Court
declared this combination a violation of the Sherman Anti-Trust Act,
and ordered its dissolution. By this time the Standard capitalists had
learned the value of public opinion as a corporate asset, and made no
attempt to evade the order of the court. The Standard Oil Company of New
Jersey proceeded to apportion among its stockholders the stock which it
held in thirty-seven other companies--refineries, pipe lines, producing
companies, marketing companies, and the like. Chief Justice White, in
rendering his decision, specifically ordered that, in dissolving their
combination, the Standard should make no agreement, contractual or
implied, which was intended still to retain their properties in one
ownership. As less than a dozen men owned a majority interest in the
Standard Oil Company of New Jersey, these same men naturally continued
to own a majority interest in the subsidiary companies. Though the
immediate effect of this famous decision therefore was not to cause a
separation in fact, this does not signify that, as time goes on, such a
real dissolution will not take place. It is not unlikely that, in a few
years, the transfers of the stock by inheritance or sale will weaken the
consolidated interest to a point where the companies that made up the
Standard Company will be distinct and competitive.
Public-domain text, read in full here on John Shaqi.
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