Harvard. Economics of Corporations. Case assignment and final exam. Ripley, 1903-1904

 

The course “Economics of Corporations” at Harvard taught by William Zebina Ripley would have been better described as “The Economics of Trusts“. The course number “9” was split between the first semester dedicated to the labor market institution of trade unions and the second semester dedicated to corporations and combinations of firms into trusts. What both courses had in common was the theme of market power, important exceptions to the case of perfect competition in factor and product markets.

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Course Enrollment
1903-1904

Economics 9b ²hf. Professor Ripley. — Economics of Corporations.

Total 170: 10 Graduates, 49 Seniors, 74 Juniors, 24 Sophomores, 13 Others.

Source: Harvard University. Report of the President of Harvard College, 1903-1904, p. 66.

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ECONOMICS 9²
1903
[sic, the second semester began in 1904]

ECONOMICS 9²
ASSIGNMENT OF REPORTS

→ Exact references by title, volume, and page must be given in foot-notes for all facts cited. This condition is absolutely imperative. Failure to comply with it will vitiate the entire report.

GROUP A

Students will report upon the organization and present character of one industrial combination in the United States. This will be indicated by a number, placed against each student’s name on the enrolment slip, which number refers to the industrial combination similarly numbered on this sheet. See Directions on last page.

GROUP B

Students will compare the character and extent of industrial control in two different industries in the United States. These are indicated by numbers given below, which are posted against the student’s name on the enrolment slip. The aim should be to point out and explain any discoverable differences in the nature or extent of the industrial monopoly attained in the two industries concerned. Mere description of conditions in either case will not suffice; actual comparison is demanded. The parallel column method is suggested. See Directions on last page.

GROUP C

Students will compare industrial combinations in different countries of Europe with one another, or with corresponding ones in the United States. The assignment of industries will be made by numbers, referring to the list below, these numbers being posted against the student’s name on the enrolment slip. Mere description will not be accepted; the student will be judged by the degree of critical comparison offered. Parallel columns may be used to advantage. See Directions on last page.

→ The letters preceding the assignment number against the student’s name refer to the group in which the report is to be made. Thus, for example: “31 A” on the enrolment slip indicates that the student is to report upon the American Cotton Oil Co.; “2 & 64 B,” that a comparison of the American Bridge Co. and the United States Leather Co. in the United States is expected; while “59 & 138 C” calls for an international comparison of industrial organizations in thread manufacture as described under Group C.

INDUSTRIAL COMBINATIONS IN THE UNITED STATES

A star indicates that data will be found in Industrial Commission Reports, Volume I [Hearings on Trusts and Industrial Combinations] or Volume XIII [Trusts and Industrial Combinations].

1. American Axe and Tool Co., 1889.
2. American Bridge Co., 1900. (See No. 123.)
3. American Iron and Steel Mfg. Co., 1899.
4. American Steel Foundries Co., 1902.
5. *American Radiator Co., 1899.
6. *American Sheet Steel Co., 1900. (See No. 123.)
7. *American Steel and Wire Co. of New Jersey, 1899. (See No. 123.)
8. American Steel Casting Co., 1894.
9. *American Steel Hoop Co., 1899. (See No. 123.)
10. *American Tin Plate Co., 1898. (See No. 123.)
11. *Federal Steel Co., 1898. (See No. 123.)
12. International Steam Pump Co., 1899.
13. *National Shear Co., 1898.
14. *National Steel Co., 1899. (See No. 123.)
15. National Tube Co., 1899. (See No. 123.)
16. *Otis Elevator Co., 1898.
17. Republic Iron and Steel Co., 1899.
18. United Shoe Machinery Co., 1899.
19. United States Cast Iron Pipe and Foundry Co., 1899.
20. American Beet Sugar Co., 1899.
21. *American Chicle Co., 1899.
22. Corn Products Co., 1902.
23. *American Sugar Refining Co., 1891.
24. *Glucose Sugar Refining Co., 1897.
25. *National Biscuit Co., 1898.
26. National Sugar Refining Co., 1900.
27. *Royal Baking Powder Co., 1899.
28. United States Flour Milling Co., 1899.
29. *American Fisheries Co., 1899.
30. American Agricultural Chemical Co., 1899.
31. *American Cotton Oil Co., 1889.
32. American Linseed Co., 1898.
33. *Fisheries Co., The, 1900.
34. *General Chemical Co., 1899.
35. *National Salt Co., 1899.
36. *National Starch Manufacturing Co., 1890.
37. *Standard Oil Co., 1882.
38. Virginia-Carolina Chemical Co., 1895.
39. American Shot and Lead Co., 1890.
40. American Smelting and Refining Co., 1899.
41. American Type Founders Co., 1892.
42. *International Silver Co., 1898.
43. National Lea Co., 1891.
44. American Malting Co., 1897.
45. American Spirits Manufacturing Co., 1895.
46. Kentucky Distilleries and Warehouse Co., 1899.
47. Pittsburg Brewing Co., 1899.
48. St. Louis Brewing Association, 1889.
49. Standard Distilling and Distributing Co., 1898.
50. *American Bicycle Co., 1899.
51. American Car and Foundry Co., 1899.
52. *Pressed Steel Car Co., 1899.
53. Pullman Co., The, 1899.
54. American Snuff Co., 1900.
55. *American Tobacco Co., 1890.
56. *Continental Tobacco Co., 1898.
57. * National Cordage Co., 1887. (See No. 62.)
58. American Felt Co., 1899.
59. *American Thread Co., 1898.
60. American Woolen Co., 1899.
61. New England Cotton Yarn Co., 1899.
62. *Standard Rope and Twine Co., 1895. (See No. 57.)
63. American Hide and Leather Co., 1899.
64. * United States Leather Co., 1893.
65. American Straw Board Co., 1889.
66. American Writing Paper Co., 1899.
67. * International Paper Co., 1898.
68. * National Wall Paper Co., 1892.
69. Union Bag and Paper Co., 1899.
70. United States Envelope Co., 1898.
71. American Clay Manufacturing Co., 1900.
72. American Window Glass Co., 1899.
73. International Pulp Co., 1893.
74. National Fire Proofing Co., 1899.
75. *National Glass Co., 1899.
76. *Pittsburg Plate Glass Co. 1895.
77. United States Glass Co., 1891.
78. American School Furniture Co., 1899.
79. Diamond Match Co., 1889.
80. National Casket Co., 1890.
81. United States Bobbin and Shuttle Co., 1899.
82. American Glue Co., 1894.
83. American Ice Co., 1899.
84. American Shipbuilding Co., 1899.
85. American Soda Fountain Co. 1891.
86. *General Aristo Co. (Photography), 1899.
87. Rubber Goods Manufacturing Co., 1899.
88. United States Rubber Co., 1892.
89. Allis-Chalmers Co., 1901.
90. American Cigar Co., 1901.
91. American Grass Twine Co., 1899.
92. American Light and Traction Co., 1901.
93. American Locomotive Co., 1901.
94. American Machine and Ordnance Co., 1902.
95. American Packing Co., 1902.
96. American Plow Co., 1901.
97. American Sewer Pipe Co., 1900.
98. American Steel Foundries Co., 1902.
99. Associated Merchants Co., 1901.
100. Chicago Pneumatic Tool Co., 1902.
101. Consolidated Railway Lighting and Refrig. Co., 1901.
102. Consolidated Tobacco Co., 1901.
103. Corn Products Co., 1902.
104. Crucible Steel Co. of America, 1900.
105. Eastman Kodak Co., 1901.
106. International Harvester Co., 1902.
107. International Salt Co., 1901.
108. Jones & Laughlin Steel Co., 1902.
109. * National Asphalt Co., 1900.
110. New England Consolidated Ice Co., 1902.
111. New York Dock Co., 1901.
112. Pacific Hardware and Steel Co., 1902.
113. Pennsylvania Steel Co. 1901.
114. Railway Steel Spring Co., 1902.
115. International Mercantile Marine Co., 1902.
116. Northern Securities Co., 1901. (See Library Catalogue.)
117. United Box, Board and Paper Co., 1902.
118. United Copper Co., 1902.
119. United States Cotton Duck Corporation, 1901.
120. United States Realty and Construction Co., 1902
121. United States Reduction and Refining Co., 1901
122. United States Shipbuilding Co., 1902
123. *U.S. Steel Corporation, 1901. (See Wilgus, in Library.)

INDUSTRIAL COMBINATIONS IN EUROPE

[Consult: Industrial Commission, Vol. XVIII [Industrial Combinations in Europe]; U.S. Special Consular Reports, Vol. XXI, Part III; and London Economist on England since 1895.]

124. Canadian Iron Founders’ Association. (See Canadian Commission on Trusts, 1888.)
125. *Bleachers’ Association, England.
126. *Iron Combination, France.
127. *Iron Combination, Germany.
128. *Rhenish-Westphalian Coal Syndicate.
129. *Spirits Combination, Germany.
130. *United Pencil Factories Company, Germany.
131. *Portland Cement Manufacturers’ Association, England.
132. *Bradford Dyers’ Association, England.
133. *Brass Bedstead Association, England.
134. *British Cotton and Wool Dyers’ Association.
135. *British Oil and Cake Mills.
136. *Calico Printers’ Association, England.
137. *Wall Paper Manufacturers’ Association, England.
138. *English Sewing Cotton Co.
139. *Petroleum Combination, Germany.
140. *Petroleum Combination, France.
141. *Sugar Combination, Germany.
142. *Sugar Combination, Austria.

DIRECTIONS

All books here referred to are reserved in Gore Hall.

First. —Secure if possible by correspondence, enclosing ten cents postage, the last or recent annual reports of the company. Unless they are “listed” on the stock exchanges, no reports will be furnished. P.O. addresses for American corporations will be found in the latest Moody’s Manual of Corporation Securities [1903; 1904]; in 12th U. S. Census, 1900, Manufactures, Part I, p. lxxxvi; in the latest Investors’ Supplement, N. Y. Commercial and Financial Chronicle [e.g., Supplement from July 28, 1900]; or in the Manual of Statistics.

Second. —In all cases where possible (starred on list) consult Vols. I, XIII, or XVIII. U.S. Industrial Commission Reports. Read appropriate testimony in full, consulting lists of witnesses, Vol. I, p. 1263, and Vol. XIII, p. 979; and also using the index and digests freely. Always follow up all cross references in foot-notes in the digests. Duplicate sets of these Reports are in Gore and Harvard Halls.

Third. —For companies organized prior to 1900 look through the bibliography and index in Halle or Jenks for references; and also in Griffin’s Library of Congress List [Relating to Trusts].

Fourth. —Work back carefully through the file of the Investors’ Supplement, N. Y. Commercial and Financial Chronicle [e.g., Supplement from July 28, 1900]. These Supplements, prior to 1902, are bound in with the regular issues of the Chronicle, one number in each volume. Since 1901 they are separately bound for each year. The Investors’ Supplement will be recognized by its gray paper cover, and must be carefully distinguished from other supplements of the Chronicle. Market prices of securities are given in a distinct Bank and Quotation Supplement [e.g. for 1903], also bound up with the Chronicle. Having found the company in the Investors’ Supplement, follow up all references to articles in the Commercial and Financial Chronicle as given by volume and page. Also use the general index of the latter, separately, for each year since the company was organized [e.g., Index for Jan-June 1903 and for July-December 1903].

The files of Bradstreet’s should also be used, noting carefully that the index in each volume is in three separate divisions, “Editorials” being the most important. The course of prices is summarized at the end of each year in January Bradstreet’s, and also in Bulletin U.S. Dept. of Labor, No. 29.

Fifth. —The files of trade publications may also be profitably used. Among these are Bulletin of the National Wool Manufacturers’ Association, The Iron Age, Dry Goods Economist, etc.

The course of prices of securities in detail for many companies is given in Industrial Commission Reports, Vol. XIII, p. 918, et seq.

As for the form of the reports all pertinent matter may be introduced, proper references to authorities being given. Particular attention is directed to the extent of control, nature and value of physical plant, mode of selling products and fixing prices, amount and character of capitalization, with the purpose for which it was issued, relative market prices of different securities as well as of dividends paid through a series of years, degree of publicity in reports, etc. Mere history is of minor importance, unless it be used to explain some features of the existing situation.

Source: Harvard University Archives. Syllabi, course outlines and reading lists in economics, 1895-2003. Box 1, Folder: “Economics 1903-04”.

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ECONOMICS 9b
Year-End Examination. 1903-04

Questions should be arranged in regular order as numbered.

1. In what three ways may legislation attempt to minimize the speculative management of corporations?
2. Outline the nature, purpose, and results of the U. S. Steel Bond Conversion operation.
3. What is the attitude of “Trusts” toward labor? What experiments in financial participation have been tried?
4. What was the gist of the testimony of Messrs. Schwab or Gates [according as you read one or the other] before the U.S. Industrial Commission on the subject of “Trusts”?
5. Are the decisions under English common law in harmony or not with the statutory enactments of most of our American states on the subject of monopoly?
6. Outline the nature of the recent changes in Massachusetts Corporation Law, especially with reference to stock watering.
7. What are three main characteristics of the so-called “Smith Combination Movement” in England?
8. What is the main issue involved in recent attempts to amend English Company law? Illustrate fully.
9. What remedy (if any) do you consider most effective for future control of monopoly in the United States? Discuss it with reference to its financial, constitutional, and moral aspects.

Source: Harvard University Archives. Harvard University, Examination Papers 1873-1915. Box 7, Bound volume: Examination Papers, 1904-05; Papers Set for Final Examinations in History, Government, Economics, … in Harvard College, p. 33.

Image Source: Harvard University Archives.  William Zebina Ripley [photographic portrait, ca. 1910], J. E. Purdy & Co., J. E. P. & C. (1910). Colorized by Economics in the Rear-view Mirror.