BIG BUSINESS, a term which first came into use in the United States at the beginning of the 2oth century, to denote the huge aggregations of capital and enterprise which are growing up in many industrial countries. The first impulse to form these large aggregations was due to the great area, abundant raw mate rials and immense markets of the United States, and was in the nature of things probably inevitable. A good example of "big business" is the United States Steel Corporation, which was a fusion, in 1901, of ten extensive plants, many smaller plants and other valuable properties, with a capitalization of $I,37o,000,000 in stocks and bonds. This corporation is one of the very largest industrial organizations and the leading iron and steel producer in the world, with steel ingot production in 1927 of 18,5oo,000 tons, or 5 5 % of the steel production of the United States. An early example of "big business" was the Standard Oil Company, origi nally incorporated at Cleveland, O., in 187o, with a capital of $1, 000,000. By 1879 it produced 95% of the refined oil of the United States. Its extraordinary success, and methods like the receipt of rebates from railroads aroused keen opposition.
In July 1890 the Sherman Anti-Trust law declared illegal all combinations in restraint of trade. In 1892 the U.S. Supreme Court ordered the Standard Oil Company dissolved into its 20 con stituent companies, but the pro rata distribution of stock among subscribers left the combined strength of the companies practi cally intact. The consolidated income account of the Standard Oil Company of New Jersey, one of the constituent companies, re ported gross operating income for 1927 as $1,256,500,000. In Dec. 1902 the International Mercantile Marine consolidated the White Star and four other steamship lines with combined tonnage of over i,000,000 tons, and with bonds and stock valued at $170, 000,000. Decisions of the U.S. Supreme Court and the more liberal provisions of the Clayton Anti-Trust law of October 1914 marked the growing acceptance of the principle of aggregation.
Wide distribution of ownership is a feature of "big business." Thus the American Telephone and Telegraph Company, compar able in size with the United States Steel Corporation, at the be ginning of 1928 had more than 525,00o stockholders, the average holding being 26 shares. The encouragement of employees to pur chase stock is another feature of "big business," as represented by the United States Steel Corporation, the Pennsylvania rail road, the Standard Oil Company and other great corporations. This brings stability through a sense of common interest. Amer ican labour may possibly also be said to have entered "big busi ness," one trade union (the Brotherhood of Locomotive En gineers) at one time owning banks, large office buildings and coal mines.