North American stock certificate
Dated 1931
Issued to Lehman Bros.
This is one of the original Dow Jones Industrial Average companies
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The North American Company (historical holding company): A Story of Power and Breakup
The North American Company, active from 1890 to 1946, was a giant in the world of public utilities and transportation. Its story is one of ambition, consolidation, and ultimately, forced dissolution. Here's a closer look:
Origins and Growth (1890-1920s):
- Founded by financier Henry Villard, it acquired struggling railroad and utility companies, building an empire across the US.
- By the 1920s, it controlled numerous electric power, streetcar, and gas companies, serving millions of customers.
- It gained national prominence, even joining the Dow Jones Industrial Average from 1928-1930.
Challenges and Regulation (1930s-1940s):
- The Great Depression strained its finances, and concerns grew about its vast concentration of power.
- The Public Utility Holding Company Act of 1935 aimed to curb such monopolies, forcing the North American Company to restructure.
- Protracted legal battles and negotiations ensued, ultimately leading to its breakup in 1946.
Legacy:
- While the company itself is no more, its influence remains.
- Its former subsidiaries, like Pacific Gas and Electric and Cleveland Electric Illuminating Company, still operate today.
- The North American Company serves as a historical example of the rise and fall of powerful holding companies and the impact of government regulation.