Socializing Capital: The Rise of the Large Industrial Corporation in America

355 Pages·1997·3.08 MB·English

by  William G. Roy

Socializing Capital
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Socializing Capital
THE RISE OF THE LARGE
INDUSTRIAL CORPORATION
IN AMERICA
WILLIAM G. ROY
P R I N C E T O N U N I V E R S I T Y P R E S S
P R I N C E T O N, N E W J E R S E Y
Copyright1997byPrincetonUniversityPress
PublishedbyPrincetonUniversityPress,41WilliamStreet,Princeton,NewJersey08540
IntheUnitedKingdom:PrincetonUniversityPress,Chichester,WestSussex
AllRightsReserved
LibraryofCongressCataloging-in-PublicationData
Roy,WilliamG.,1946–
Socializingcapital:theriseofthelargeindustrial
corporationinAmerica/WilliamG.Roy
p. cm.
Includesbibliographicalreferences(p.)andindex.
ISBN0-691-04353-1(alk.paper)
1. Bigbusiness—UnitedStates—History.2. Corporations—UnitedStates—
Finance—History.3. Industrialpolicy—UnitedStates—History.
4. Capitalism—UnitedStates—History.5. Socialstructure—UnitedStates—
History.6. Richpeople—UnitedStates—History.7. Power
(Socialsciences—UnitedStates—History.I. Title.
HD2785.R598 1996
338.6′44′0973—dc20 96-8672 CIP
ThisbookhasbeencomposedinSabon
PrincetonUniversityPressbooksareprintedonacid-freepaperandmeettheguidelinesfor
permanenceanddurabilityoftheCommitteeonProductionGuidelinesforBook
LongevityoftheCouncilonLibraryResources
PrintedintheUnitedStatesofAmericabyPrincetonAcademicPress
1 2 3 4 5 6 7 8 9 10
F O R M Y P A R E N T S
JAMES AND NONA ROY
W H O T A U G H T M E T O B E C U R I O U S
A B O U T T H E W O R L D A N D T O C A R E
A B O U T T H E P E O P L E I N I T
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C O N T E N T S
LISTOFFIGURES ix
LISTOFTABLES xi
PREFACE xiii
CHAPTERONE
Introduction 3
CHAPTERTWO
A Quantitative Test of EfficiencyTheory 21
CHAPTERTHREE
The Corporation as Public and Private Enterprise 41
CHAPTERFOUR
Railroads: The Corporation’s Institutional Wellspring 78
CHAPTERFIVE
Auxiliary Institutions: The Stock Market,
Investment Banking, and Brokers 115
CHAPTERSIX
Statutory Corporate Law, 1880–1913 144
CHAPTERSEVEN
Prelude to a Revolution 176
CHAPTEREIGHT
American Industry Incorporates 221
CHAPTERNINE
Conclusion: A Political Sociology of the Large Corporation 259
NOTES 287
REFERENCES 301
INDEX 319
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F I G U R E S
1.1. AggregateValue of Stocks and Bonds of Corporations
Listed on Major Stock Exchanges, 1890–1913 5
4.1. Total Traffic Earnings of U.S. Railroads, 1851–1890 104
6.1. Total Capital (Logged) of Major Corporations in Three
States, 1890–1913 165
6.2. Total Number of Incorporations in Three American States,
1880–1913 171
8.1. Annual Output of Cigarettesand Little Cigars, 1880–1906 225
8.2. Value of Products of Branches of the Tobacco Industry, 1904 226
8.3. American Tobacco Company Advertising Costs and
PercentageChange in NetReceipts, 1894–1910 228
8.4. AggregateCapital of Major Corporations in Four
Industries, 1891–1913 253