Trusts

Trusts, corporate monopolies organized via the device of trust under common law for the purpose of eliminating competition in an area of business and of controlling the market for a product. Specifically, a trust was a particular technique developed especially in the United States in the late 19th century to consolidate firms and acquire control in a variety of industries. The widespread use and abuse of trusts during this period ultimately gave rise to a series of antitrust laws that continue to be in effect.

A trust is a legal arrangement in which the voting stock of different companies is brought together under the direction of a board of trustees, which then issues trust certificates in exchange for all the shares or a controlling number of shares of the individual companies. This arrangement permits the trustees to manage and direct a group of companies in a unified way, in effect, creating a single cartel out of competing firms.