72 WILLIAM FRANKLIN WILLOUGHBY 



purpose of permitting a closer relationship between the busi- 

 ness of the railways bringing freight to the seaboard and its 

 subsequent carriage to foreign parts. Another example in 

 which this purpose of bringing together related interests 

 rather than concentration in a distinct field is peculiarly 

 manifested may be found in the control recently obtained by 

 the Standard Oil company of the American Linseed Oil com- 

 pany. The Standard was already in control, through its 

 directors, of the National Lead company. There were thus 

 brought under the same general management, or at least under 

 sufficient control to insure that they would work in harmony 

 with each other, the concern having the larger proportion 

 of the output of linseed oil in the United States, and the com- 

 pany controlling the greater part of the production of white 

 lead, or the product in which linseed oil finds its chief employ- 

 ment. There are also strong indications that the Union Lead 

 and Oil company and other concerns will also be taken in, 

 and all run in relation to each other. 



Still another example of the bringing together under one 

 management of all the different branches of a trade, which 

 has taken place during the past year, is the merging of the 

 American Tobacco company, which had the largest production 

 of cigarettes in the country, the Continental Tobacco company, 

 the leading manufacturers of chewing and smoking tobacco, 

 the American Snuff company, the most important of the snuff 

 concerns, the American Cigar company, the International 

 Cigar Machine company, and the Havana American company 

 in a single corporation, the Consolidated Tobacco company. 

 The magnitude of this combination may be seen from the fact 

 that the capitalization of the companies taken was over two 

 hundred million dollars. It will scarcely be necessary to 

 multiply examples further. If a careful analysis of all the 

 recent important considerations be made, it will be seen that 

 in almost all cases the essential purpose in view has been the 

 merging of related interests rather than the taking over of 

 distinctly competitive concerns. 



Of integration in the distributive branch of industry, the 

 chief example is, of course, that of the familiar department 

 store. Here, however, the real forces of integration are not 



