Page 106 - Azerbaijan State University of Economics
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THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.70, # 1, 2013, pp. 97-117
monopoly in industry is expressing the impossibility of formation of monopolies
which is dominating in the most part of any sector.
At the same time free competition system gradually created material
conditions for ignoring itself historically and for transition to another development
stage which is characterized already by the ratio of monopoly and competition.
Competition created conditions for gradually monopolisation in production and
capital sector. In certain level of development this process lead to creation of
monopoly coalitions.
The transformation of big coalitions to dynamics of economic life took off in
the result of horizontal coalitions and strong wave of absorption in the end of XIX
century. That’s why, for example the first such wave took place in USA in 1898-
1903 resulted with high level of monopoly intra-sphere production.
For example, oil production and oil-refining industries were accumulated in
400 company which had no relationship with each other. Oil trusttrusttrust
connected all these companies into one single company which captured 95 % of oil
production in USA in 1903. This trusttrusttrust owned 12000 railway cistern, 60
ocean tanker, 8000 oil tank for transporting the produced oil in 1909. American
trusts controlled 81 % of chemical, 77% of metal, 61% of steel, 60% of
sheet&print, 85 % of lead production and etc. in the beginning of the XX century.
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