y large aggregations of capital in a corporation having
the advantages of large production.

Sec. 6. #Growth of large industry in the nineteenth century.# The great
recent growth of the monopoly problem is in part to be explained as
the result of the growth of large industry, not as the sole cause,
but as a favoring condition. Before the middle of the last century a
tool-using household industry, on farms and in homes where the greater
part of the things used were produced in the family, was still the
typical organization in the United States.[6] A family produced
somewhat more than it needed of food and cloth and exchanged with its
neighbors; so with shoes, candles, soap, and cured meats. The early
factories growing out of the household industry were small. Since
that time two counter forces have been at work to affect the ratio
of manufacturing establishments to population. The number of small
establishments has been increased by the many industries producing the
things once made on farms, and by increasing demands for comforts and
luxuries. Many establishments producing the staple products that can
be transported have been consolidated or have been enlarged, so
that the unit of production now averages much larger. The number of
cotton-weaving factories was about the same in 1900 as it had been
seventy years earlier, while population has grown six fold. Iron-
and steel-mills were fewer in 1900 than in 1880. In industries having
local markets or local sources of materials, such as grist mills
and saw mills, the change in numbers was less, for many small
establishments were started in outlying districts at the same time
that the mills became larger in the great population centers. But the
average number of employees and the average capital per establishment
increased in every period between census enumerations.

Sec. 7. #Methods of forming combinations.# Combinations of previously
independent enterprises may be more or less complete and are made by
different methods. Four major methods are:

(1) The pool, by which the enterprises continue to be separately
operated, but divide the traffic (or output), or the earnings, or the
territory, in prearranged proportions.

(2) The trust, in a legal sense (as defined above in section 5).

(3) The holding company, a corporation with the sole purpose of
holding the shares of stock, or a controlling number of them, in
various corporations otherwise nominally independent.

(4)