Definition

1. Noun:
   • A consortium of independent organizations formed to limit competition: A "corporate trust" is a formal combination of companies that join together to reduce or eliminate competition among themselves, typically by coordinating production, pricing, and market distribution.
   • An entity controlling production and distribution: It refers to a group of businesses that unite to control the supply chain of a product or service, often with the aim of dominating the market.

Usage Examples

• Noun:
  • The oil companies formed a corporate trust to stabilize prices and control output.
  • Antitrust laws were enacted to prevent the formation of powerful corporate trusts that could stifle competition.

Advanced Usage

• Historical Context: In late 19th and early 20th century U.S. history, the term "corporate trust" became synonymous with large, monopolistic business combinations, such as the Standard Oil Trust, leading to the creation of antitrust legislation.
  • The Sherman Antitrust Act was a direct response to the power wielded by corporate trusts.

Variants and Related Words

• Trust (n): In a business context, often used synonymously with "corporate trust" to mean a large combination of firms.
  • The court ordered the dissolution of the trust.
• Antitrust (adj): Relating to legislation or regulation designed to prevent the formation of trusts and promote competition.
  • Antitrust regulations are crucial for a healthy market.

Synonyms

• Cartel: An association of manufacturers or suppliers with the purpose of maintaining prices at a high level and controlling competition.
• Syndicate: A group of individuals or organizations combined to promote a common interest.
• Monopoly: The exclusive possession or control of the supply of or trade in a commodity or service. (Note: A corporate trust often aims to create a monopoly or oligopoly.)

Related Phrases

• To form a trust: The action of creating a corporate trust.
  • The rival companies were accused of conspiring to form a trust.
• To break up a trust: The action of dismantling a corporate trust, typically by legal means.
  • The government sued to break up the telecommunications trust.

Related Idioms

• A trust-busting campaign: A concerted effort, often by a government, to dissolve corporate trusts.
  • The president launched a trust-busting campaign to restore competitive markets.

Noun

1. a consortium of independent organizations formed to limit competition by controlling the production and distribution of a product or service
   • they set up the trust in the hope of gaining a monopoly