RISE OF CORPORATION IN US
The Rise of the Modern Corporation in U. ... In order to administer a business that was so large and involved so many aspects, a new form of business organization emerged which continues to this day: the large scale business corporation. In managing the large scale corporation, new theories of administration were needed. ... Technological Revolutions : Railroads Railroads are also very interesting, because as they develop, they also become for us the prototype of the modern corporation. ... And what the railroads do is help to usher in a modern corporation, which limits the liability upon individuals. ... However, in so far as this is a reasonable title, it is less because of technological innovation than of institutional innovation - the rise of the large corporation. ... Perhaps the most striking feature of the large corporation is its great number of shareholders. ... Such concerns gave rise to two major laws aimed at taking apart or preventing monopolies: the Sherman Antitrust Act of 1890 and the Clayton Antitrust Act of 1914. ... Corporation Law In hundreds of cases decided in the latter half of the 19th century, judges declared that the corporate rate of return on investments (i. ... They eliminated jury trials to determine corporation-caused harm and to assess damages. ... " Judges created the "right to contract" doctrine, which stipulates that the government cannot interfere with an individuals "freedom" to negotiate with a corporation for wages and working conditions. Responding to banking, shipping, railroad, manufacturing and agribusiness corporations and their lawyers, judges creatively interpreted the commerce and due process clauses of the US Constitution. ... In this environment, the modern corporation, often employing hundreds or even thousands of workers, assumed increased importance. ... And when a corporation distributes these dividends, the stockholders are taxed on the dividends. ... Usually, only a minority of board members are operating officers of the corporation.