apr 1, 1895 - Beginnings of Corporate Consolidation 1895

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-Supreme Court of the time was very pro-business
-Businesses such as railroad companies followed the path that led to greater economies of scale, which meant larger and larger businesses
-holding company: owned enough stock in various companies to have a controlling interest in the production of raw material, the transportation of it to a factory, the factory itself, and the distribution network to sell the product
-monopoly: complete control of an entire industry
-Two main forms of business consolidation at the end of the 19th century are horizontal and vertical integration
--> Horizontal Integration: created monopolies within a particular industry, example being Standard Oil. Several smaller companies within the same industry combine to form one large company (sometimes legally bought, but mostly destroyed by business tactics). One company dominates one part of production of a product such as the production of raw materials
--> Vertical Integration: One company completes all of the parts of producing a product
-Many problems arose with the consolidation of power: businessmen borrowed huge sums and when their businesses failed, they couldn't pay it back. As a result, there were many bank failures. The lower class suffered the most as jobs and money became scarce. Monopolies created a class of extremely powerful men who didn't agree with the public on some opinions

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