Why did industries in the late 1800s set up business organizations such as trust and holding companies?

At the turn of the 19th and 20th centuries, the development of the American economy was based on intensive concentration and centralization of production and capital, monopolization of the economy, and the strengthening of the role of banks and financial capital. In the late 90s of the 19th century, monopolistic associations became the basis of the country's economic life. Monopolies in the USA existed primarily in the form of trusts. Controlling investment in the most important and profitable sectors of the economy, trusts crowded out competitors, conquered and subjugated the domestic market.

The first monopolistic association was the у Rockefeller's Standard Oil (1870), which in 1879 controlled 90% of the country's oil refining industry, and in 1900, 84% of its domestic oil trade and 90% of its exports. In 1901, as a result of the mergers of several large companies, United States Steel - the Steel Trust - was formed, which controlled more than 60% of the country's steel production. In the automotive industry, three companies - Ford, Chrysler, General Motors controlled 80% of the industry. Powerful monopolies operated in the electrical, sugar, tobacco, and other industries.  

Monopolies inflated prices for products, ruining small industrialists, and all this restored the public opinion of the country against them. Under pressure from public opinion in 1890, the Sherman "antitrust" law was passed. After Sherman’s law, a new form of monopoly, holding companies, gained increased distribution.

Holding-type enterprises first appeared in the USA at the end of the 19th century as a kind of financial-type company created to hold controlling stakes in other companies in order to control and manage their activities. The legal basis for the creation of holdings was created in 1889, when in New Jersey, one of the most free states for entrepreneurship, it was allowed to create holding companies.

In the USA, the reason for the emergence of holding companies was the need to circumvent the rules of antitrust law (Sherman Law). Holdings here were created for the sole purpose of obtaining shares in other companies.

Holding companies developed in the late 19th and early 20th centuries, with participants who previously functioned as cartels. Subsequently, in many holdings, there was a centralization of management and the production system. The famous American scientist Chandler notes that those holdings that were not centralized and did not integrate later either disbanded, or they were threatened with bankruptcy.

Explanation:

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explanation:

1. ford: gerald ford´s presidency, from 1974 to 1977, faced high inflation, named it public enemy nº1, and created the win program (whip inflation now).

2. carter: president from 1977 to 1981, carter had controversial poitions over abortion, but yet, he enforce the roe vs wade decision, which had pro-choice content.

3. reagan. for his eloquency and powerful speeches in his mandates, from 1981 to 1989, reagan earned this nickname, “the great communicator” .

4. george h w bush: despite many presidents had important roles in managing and trying to end the cold war, it was in bush sr's mandate that the berlin wall was materially destroyed, and he was visited by gorbachev in the uspresident from 1989 to 1993.

5. clinton: defense of marriage act. clinton signed this controvesial act, which defined marriage and spouses in strict heterosexual perspective, that was later declard unconstitutional by the us supreme court.

6. george w bush: in the begining of his presidency, which lasted until 2009, bush jr faced the greatest terrorist attacks in us and probably the worlds history, in september, 11 of 2001.

7. obama: in attempts to cease a great economical crisis, barack obama signed the controversial recovery act in february 2009, which handled 780-billion dollars.