| During the last three decades of the 19 th century,American railway industry made it a great development that basically finished the construction of railway trunk lines with more than 190,000 miles,and more than the total length of the European railways at the same era.However,problems in the development of railway industry have gradually emerged,for example,lands for railway construction are used for other lucrative purposes;railway companies are over-financing,leading to lacking of financial restrict;railway companies compete with each other in price;they use financial fraud to obtain government preferential policy support;and their management structures are flawed;also,corruption is a serious problem.In one word,disorderly competition in the industry has plagued the booming American railroad industry.Faced with the huge profits created by the railway industry and the chaos of the railway industry,various factors contributed to the involvement of the Morgan Foundation in the American railway industry.Firstly,the banker John Pierpont Morgan Sr.Fancy seized a business opportunity that could be obtained by engaging in the railroad industry to obtain a huge profit.He used his huge capital to intervene in the American railway industry during this period.Secondly,the disorderly competition in the American railway industry has affected the development of the states in the western United States,causing social dissatisfaction and solving the disordered development of the railway industry is imminent.Third,the development of the American railway industry requires adequate funding and scientific management to solve the current difficulties.The "Morganization" of the American railway industry objectively promoted the reform of the American railway industry management system in the late 19 th century.Specifically,in the late nineteenth century,the specific content of the “Morganization”of the American railway industry was that under the modern corporate governance structure,and the Morgan Financial Group used its strong economic strength to form a financial monopoly joint organization in the financial sector through the equity trust system.The American railway industry injects huge financial capital,which in turndrives the merger and reorganization of railway companies through the control of financial capital,and eventually monopolizes the railway industry to obtain a new type of management system for investment income.In the late nineteenth century,“Morganization” of the American railway industry curbed chaos in the disorderly competition of the American railway industry,which had an important impact on the development of the American railway industry.The American railway Morganization led to the large-scale use of the equity trust system in the railway industry,which clarified the interest relations among different railway companies and eased the conflict of interests in the railway industry;the“Morganization” of the American railways promoted the modernization of the American railway industry.The orderly operation under the corporate governance structure has also created substantial benefits for the Morgan Foundation and has had a profound impact on the economic development of the United States in the 20 th century.However,the "Morganization" of the American railway industry also caused some problems.In the latter part of the Morganization development of the American railway industry,especially around 1900,75% of the 200,000 miles of railways in the United States were controlled by financial monopoly capital.This level of industrial monopoly has inhibited the development of the American railway industry.At the same time,it has also had a certain impact on the railway-related industries such as the American steel industry and the machinery manufacturing industry.Not only that,a high degree of monopoly in the industry also laid a sway in the American anti-monopoly legislation and anti-monopoly reform of the United States in the 20 th century. |
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