Business Organization And Combination : An Analysis of the Evolution And Nature of Business Organization in the United States And a Tentative Solution of the Corporation And Trust Problems

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It is the desire for monopoly gain which leads business men to buy up plants and patents only to suppress them; or induces them to pay extravagant prices for mines, railways, and factories ; and everybody knows that the security of monopoly can deaden the desire to adopt the most advanced methods. By overgrown plants are meant those which are so huge and unwieldy as to make them incapable of efficient direc- tion by any effectively concentrated directive agency. A large part of those trusts whi...ch have not rested on monopoly have proved to be overgrown and therefore unable to stand competi- tion with better directed plants. Either by their reorganiza- tion, or by earnings inadequate to keep up the value of their common stock, such corporations as the " Whisky Trust," the " Cordage Trust," the " Malting Trust," the International Pa- per Company, the American Writing Paper Company, the American Hide & Leather Company, the Union Bag Company, the Sole Leather Company, and the American Can Company, have shown that they are not the most economical producers.' 'See Meade, "The Fallacy of Big Business," Annals of Amer.

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