The Trust Problem (Classic Reprint)

Excerpt from The Trust Problem

In these lectures, we shall confine ourselves to the consideration of trusts and pools, without attempting to cover the whole field of monopoly or of contracts in restraint of trade. The term trust will be used to describe the closely-knit combination or consolidation. The most familiar forms are three: first, the combination through the holding of stock by trustees, once so common, but now disused; second, the holding corporation; and, third, the corporate merger, in which a single company acquires direct title to the property of the combining concerns. Most people use the term trust essentially to cover combinations of these three classes, altho sometimes it is applied to any kind of combination or any case of supposed monopoly. Under the trust, the entire business of the combining plants, including productive processes as well as marketing policy, is subject to a single control.

On the other hand, we shall use the term pool to designate any combination of previously competing plants which retain their independence with respect to the processes of production. Strictly speaking, the word pool implies division of output or of profits among the constituent concerns.

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