Trust (19th century)
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A trust or business trust was a form of business entity used in the late 19th century with intent to create a monopoly. Some but not all were organized as trusts in the legal sense. They were often created when corporate leaders convinced (or coerced) the shareholders of all the companies in one industry to convey their shares to a board of trustees, in exchange for dividend-paying certificates. The board would then manage all the companies in "trust" for the shareholders (and minimize competition in the process). Eventually the term was used to refer to monopolies in general. In 1898, President William McKinley launched the 'trust-busting' era when he appointed the U.S. Industrial Commission. The report of the Industrial Commission was seized upon by Theodore Roosevelt, who based much of his presidency on "trust-busting".
Prominent trusts included Standard Oil, U.S. Steel and the International Mercantile Marine Company.
See also
- Sherman Anti-Trust Act
- Cartel, a modern implementation
- Antitrust
- William McKinley
- U.S. Industrial Commission
- Commissioner Andrew L. Harris
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