Abstracts and Papers

Stephen B. Adams
Making a Virtue of Necessity: Herman Miller's Model for Innovation
   [Paper]

Herman Miller, Inc., has earned a global reputation as a paragon of creativity, which has been an integral factor in the company's position as an industry leader. Based on recent scholarship in regional studies, however, one would never have guessed that a company from Zeeland, Michigan, distant from creative enclaves such as New York and Los Angeles, would make such an impact. How does a company so reliant on creativity in design thrive outside the orbit of the creative class? I will show how the furniture industry predicament and practices and the company's location provided key constraints under which Herman Miller operated. The company's location helped dictate a distinctive business model, with no designers on staff and in which none of the designers doing work for Herman Miller had exclusive agreements. The result was surrender of a substantial portion of the firm's strategic direction to outsiders. I will show how the company's "inconvenient" location became a virtue when the company responded with a model that positioned the firm to initiate and benefit from disruptive innovation rather than be victimized by it.

Franco Amatori and Daniela Felisini
A Special Kind of Management: IRI, 1950-1980

The state-holding IRI was created in 1933 as a way to sever the dangerous ties between banks and large industrial concerns in Italy. De facto, the three major banks at the time had been transformed into holdings for the nation's largest companies. This placed the central bank in a risky position, as it was the bottom line lender and if it unexpectedly stopped funding, it could have suffocated the economy. IRI's main goal was to put an end to the German model of the Universal Bank in Italy and, by doing so, create a system for supplying credit in an economy made up of small and medium-size firms. At the outset, IRI was not designed to be a permanent entity. But the companies controlled by IRI needed to be brought back to a "healthy" status and then privatized once their debts had been repaid. This plan revealed itself impossible to achieve because (1) most of the companies were extremely capital-intensive (making them expensive to sell off at the end of the process), and (2) because of their costly structures, they were also very expensive to manage. IRI found itself responsible for the care of industrial companies at the same time its format was based on a holding (IRI) totally owned by the state, while the companies held by IRI were open to private shareholders and responded to civil law as private concerns. In its early years, the companies making up IRI sought out the best managers available to lead the firms. These men were relatively free of political constraints (though they had to respond to the overall demands of Fascism, the war, and the policy of autarky). They enjoyed even greater freedom in the decade immediately following World War II, when there seemed to be a form of benign neglect by the political powers. But the contradiction remained: a holding owned by the state (and controlled by politicians) with companies that needed to be competitive players in the market. To lead the companies there was a need for a special kind of management: individuals in tune with market signals but also sensitive to extra-business demands that usually called for investments based on political and social reasons rather than sound economic objectives. The three alternative ways of handling this challenge (getting out of the system, being cooperative with the requests of politicians, or trying to reconcile market imperatives with broader extra-company goals) will be examined via the stories of three key managers of IRI in those years (Giuseppe Glisenti, Alberto Capanna, and Pasquale Saraceno).

Federico Barbiellini Amidei, John Cantwell, and Anna Spadavecchia
Innovation and Foreign Technology in Italy, 1861-2011

Since its unification in 1861, Italy has moved from being a fragmented and mainly agricultural country to one of the seven most industrialized economies in the world. Some commentators interpret this as a success story, while others stress that the country never matched the technological capabilities of its competitors. In this paper we examine the different phases of Italian innovation activity, focusing on the importance of foreign technology and its channels of transfer. The paper is based on a novel dataset of domestic and foreign patents granted in Italy, France, Germany, Japan, Spain, Switzerland, the UK, and the United States, from the 1880s to 2010. Differences across channels of technology transfer and historical phases emerge, as well as in connection with the evolution of human capital endowment and domestic innovative capacity. Machinery imports contributed positively to innovation activity and productivity growth; inward FDI contributed positively to productivity growth, but not to indigenous innovation activity; the accumulation of technical human capital fueled both. In the long Italian Golden Age, for the first time the association of foreign technological knowledge with indigenous innovation processes strengthened productivity. In more recent years the dismal productivity growth is associated with under-performance in formalized innovation and reduced imports of disembodied technology.

Francesca Russello Ammon
"A Dirt Moving War": How World War II Advanced the Business of Construction Equipment Manufacturers

World War II has been called "A Dirt Moving War" for the critical role played by militarized construction equipment. As Army Engineers and Naval Seabees deployed bulldozers to clear sites for military construction, they created substantial demand for Caterpillar, International Harvester, and other equipment manufacturers. Although wartime restrictions limited near-term profits, these companies' service soon yielded postwar benefits. By partnering with the state during the war, they advanced product development, grew production capacity, and expanded skilled labor. By promoting their contributions to the bulldozer's battlefield triumphs, they sought to enhance their reputations as well. Finally, the public-private partnerships cemented during war helped shape postwar policies that fueled future domestic demand. In all of these ways, for many construction equipment manufacturers, war was not just an interruption to business as usual. It was also a heightened continuation of everyday life that positioned them well for the return to peacetime operations. Recovering the contributions of the construction equipment industry to the World War II "arsenal of democracy" demonstrates the wartime roots of postwar suburban, highway, and urban renewal development.

Dimitry Anastakis
A Prisoner's Dilemma: Auto Investment Incentives and the Failure to Regulate Them in North America, 1975-1980

The emergence of 1970s auto investment incentives in North America was a consequence of three factors: the fight for investment dollars; competition over the investment of offshore firms; and the industry's continentalization after the 1965 Canada-U.S. auto pact. The latter was galvanized by the successful 1978 Canadian incentive given to Ford Motor for an Ontario plant over Ohio. In an effort to control themselves—officials in Washington and Canada both deplored incentives as a "mug's game"—in 1978 diplomatic efforts were made to end the practice. But these efforts failed. What emerged was a classic prisoner's dilemma: Both sides were unwilling to discontinue incentives, fearful that their opposite could or would not do so. The failure to regulate incentives resulted in three long-term consequences. First, incentives paradoxically weakened the state's ability (on both sides of the border) to regulate MNEs. Second, incentives provide an example of how American capital and American firms were effectively decoupled from U.S. government interests. Finally, the inability of North American states to regulate auto capital flows in the 1970s acted as a precursor to the unregulated globalized capital mobility in the postwar period.

Jennifer Armiger
"What was good enough in the 1960s is not good enough today": Sex, Race, and Business Opposition to Equal Opportunity Policy in 1970s America
   [Paper]

The restructuring of the American political economy in the 1970s, and its impact on business firms, played an important and underexamined role in impoverishing women's claims to the equal opportunity legacy. Focusing on Western Electric, a major American manufacturer and subsidiary supplier to the Bell System, and the sex discrimination litigation brought against the company's Kearny, N.J., plant in 1973, Kyriazi v. Western Electric, this essay examines how slowing productivity, recession, and a decrease in federal contracts attenuated the company's commitment to equal opportunity measures. Jockeying from nonchalance to outright hostility to the sweeping sex discrimination claims in the Kyriazi case, Western Electric executives and managers responded in a manner far removed from the company's leadership on fair employment practices in the 1960s, which had been focused primarily on the plight of unemployed and underemployed black males in declining urban centers. Ultimately, while the lack of interest and gender-blind remaking of equal opportunity policy for women did not become fully fledged until the 1980s, the events at the Western Electric Kearny Works and in the Kyriazi litigation reveal that it had its roots in the economic downturn, and resulting corporate opposition to the liberal state, that first took shape in the 1970s.

Bruce Baker and Barbara Hahn
Regulating the Future: Conflicting Cotton Exchanges and Progressive Legislation

This paper traces the Cotton Futures Act of 1914 back to conflicts between the New York and New Orleans Cotton Exchanges early in the twentieth century. In 1903, a bull pool (organized in New Orleans) cornered the world market in cotton. Its principal actors—William Perry Brown and Franklin Brevard Hayne—knew that many New York cotton brokers represented interests that wanted cotton prices low. The bulls also understood the bears' methods: overestimating crop size and thus depressing both spot and futures prices. Brown and Hayne took advantage of short crop years to squeeze the bears, making millions of dollars in the process. Yet crop prices relied not only on supply and demand; they depended as much on grades and information. Pricing the different grades in different ways in New York and New Orleans led each Cotton Exchange to different market mechanisms. In the end, the 1914 Cotton Futures Act made New York policies illegal and thus validated New Orleans practices. Using actor-network theory from science and technology studies and newspapers, government documents, and Brown's unprocessed manuscripts, we trace the roots of legislation to conflicting business practices that had wildly divergent effects on commodity prices.

Rafael Castro Balaguer and Esther M. Sánchez Sánchez
Foreign Assistance to a "Closed Economy": The Case of French Firms in Spain, c. 1941-1963

Spain emerged from the Civil War with formidable economic problems. They were caused by military destruction and foreign condemnation and especially by the establishment of an autarkic system, in which the victorious Francoist side followed the political and economic path of other European fascist regimes. Despite these legal restrictions, many foreign entrepreneurs and multinationals continued to seek out and exploit both new and old relationships in Spain, usually in association with the state-owned Instituto Nacional de Industria (INI). This foreign support was a major factor in ending Spain's international isolation, increasing confidence in the Spanish economy and removing obstacles for the growth of the 1960s. The purpose of this paper is to analyze the collaboration between French firms and the INI in the early Franco era, identifying the main enterprises, agreements and results. We assert that foreign assistance to Spain was present during the autarky period and highlight the continuity of the collaboration between Spain and France. Therefore, we defend multinationals' flexibility in adapting themselves to a hostile environment, especially across political and economic local networks.

Steven A. Bank, Brian R. Cheffins, and Harwell Wells
Questioning "Law and Finance": U.S. Stock Market Development, 1930-1970

An important tenet of a burgeoning "law and finance" literature is that stock market development is contingent upon corporate law offering ample protection to shareholders. This paper addresses this point, using as its departure point developments occurring in the United States between 1930 and 1970. We show that, contrary to what the law and finance literature would predict, the United States during this period and throughout the twentieth century generally lacked corporate law that provided extensive rights to shareholders. We also point out that while federal securities legislation introduced in the mid-1930s bolstered investor protection, reform did not energize the stock market in the manner implied by law and finance analysis.

Beth Bates
Henry Ford and the Inkster Project: Welfare Capitalism in Depression-Era Detroit

Historically, the Great Depression has been regarded as a time when welfare capitalism was in decline. Yet Henry Ford launched his Inkster Project in 1931 to provide private welfare for black workers and their families during desperate times. He did so at a point when the Ford Motor Company was severely in the red and after having abandoned its Five-Dollar Day, profit-sharing plan during the 1920s for less costly means of controlling its workers. Why did Ford chose the Depression to revive welfare capitalism? The Inkster Project has been treated as an example of Ford's philanthropy at its purest, with the caveat that the project was a valuable insurance policy against incursions by union activists. I argue the Ford's motives were more complicated. Early in 1931, Henry Ford and Frank Murphy, the mayor of Detroit, were engaged in a showdown over the proper approach for providing relief to destitute citizens during hard times. Murphy's reelection campaign in November 1931 was, in part, a referendum on welfare capitalism versus the welfare state. Within days of Mayor Murphy's reelection, Ford showcased his answer to public relief in the form of the private-sector provisions provided by the Inkster Project.

Timothy Bates
Constraints, Opportunities, and the Decision to Pursue Business Ownership: Analysis of Industry Choice among African American Owners of Small Businesses

The choice between wage work and being a small business owner is shaped by constraints and opportunities. In the case of minorities, historical understanding of why the entrepreneurial path is chosen is muddled by disagreement over the relative importance of constraints pushing workers down the entrepreneurial path, versus opportunities pulling entrants into firm ownership. This study examines a natural experiment: in the late 1960s/early 1970s, specific constraints historically limiting entrepreneurial alternatives for minorities changed dramatically. Findings indicate that reduced constraints had little impact upon entry rates, but the types of businesses formed changed substantially. Economists view the decision to enter into business ownership as an exercise in freedom of choice made on the basis of one's preferences. What they often fail to appreciate is that entry decisions are made in specific socio-economic-political contexts and that changes in the prevailing context alter entry decisions. Genuine freedom of choice is achieved by alleviating barriers, thus widening the options available to aspiring entrepreneurs. Faced with fewer constraints, blacks since the 1960s have often chosen to abandon lines of business offering low remuneration, choosing instead to enter into higher yielding fields where firm creation requires investment of capital by owners possessing considerable expertise.

Betsy A. Beasley
A New South and a New City: Race and Rural Modernization in Soul City, North Carolina, 1969-1980

In 1969, Floyd McKissick purchased a former plantation in rural North Carolina with the support of the U.S. Department of Housing and Urban Development. McKissick, a veteran civil rights leader, intended the land to be the location of a new town—dubbed Soul City—that would foster black empowerment and economic development. Joining forces with President Nixon, McKissick vowed to incorporate rural African Americans into American affluence and succeeded in bringing industrial infrastructure to the region. Remarkably, local white elites—historically the greatest opponents of any federal project that they did not directly control—came to support the project. When a coalition led by Jesse Helms attacked the project at the end of the decade, many local white residents mobilized alongside African Americans to defend Soul City. Yet opponents succeeded in ending federal support for the project in 1979. This paper moves beyond dismissals of Soul City as a utopian failure, an example of late 1960s optimism and ill-fated ambition. Instead, I argue that McKissick was able to push both the right and the left to support a state-sponsored economic development project with overt civil rights aims, suggesting that the 1970s held greater political possibilities than we often acknowledge.

Gavin Benke
"I Look Forward to Working With You": Enron's Government Affairs Efforts in the 1990s
   [Paper]

In this essay, I chart the relationship between Enron's Government Affairs Department and the U.S. Department of Energy while Bill Clinton was in office. Though Enron had been used to Republican administrations sympathetic to issues such as domestic natural gas deregulation, the company's Government Affairs Department quickly found common ground with Clinton's team on the policies of globalization and trade liberalization. By looking at materials such as Enron Business and correspondence between Enron executives and the Department of Energy from the 1990s, I argue that Enron attempted to position itself as a part of the "Washington consensus" and as a partner with the state in advancing economic globalization.

Mark Billings and Alan Booth
The "Working-Class Bank" That Never Was: Britain's Post Office in Financial Services, 1945-1975

By the 1960s, in Britain's growing, mildly inflationary economy, with rising living standards and asset prices, affluence was visibly trickling down the social scale. But the majority of wage earners did not hold bank accounts. The large commercial banks, which dominated the country's payments system, were perceived as conservative and unadventurous institutions, the result of constraints on competition imposed by the rules of their "cartel" and government restrictions for monetary policy purposes. Britain's Post Office already had significant involvement in financial services through the long-established and conservatively run Post Office Savings Bank, which held a large share of the nation's savings. In 1968 the Post Office opened the technically advanced National Giro to provide a cashless money transfer system for retail and business customers as an alternative to the commercial banks' traditional check-clearing system. In this paper, we examine the Post Office's apparent failure to exploit the opportunity to create a single "working-class bank" from these two institutions. We conclude that its decision-making was influenced by its (mis-)understanding of the market for basic retail banking services and institutional, technological, and political obstacles.

Fahad Ahmad Bishara
A Malleable Instrument: Reading Writing in the Indian Ocean

When Indian Ocean merchants contracted a debt, they wrote it down on paper. This ostensibly simple practice had broad and complex implications. On its own, it questions the widespread presumption that merchants of that time and region trusted one another on the basis of a shared culture, religion, or locality, and that they were content enough with informal agreements. Indeed, what emerges from the documentary evidence is that Indian Ocean commercial societies were highly documentary in their inclinations. Almost every transaction, from high-profile customs forms to workaday loans, went recorded, leaving historians with a treasure trove of mundane legal documents scattered around the entire region. In my paper, I introduce these deeds to the study of economic life in the Indian Ocean. When seen through the prism of the deed, what emerges is a commercial world structured not by trust, but by debt and obligation. In this world, virtually every economic actor in every port from Bombay to Zanzibar was to some degree enmeshed in crisscrossing webs of debt. Through debt, Indian Ocean economic actors forged long chains of obligation—chains that stretched across deserts, oceans, and jungles, while remaining firmly grounded in law. By focusing my view on and around the commercial deed, I explore the sinews of commercial life in the Indian Ocean, moving along the frontier between a world of obligation on the one hand and a long genealogy of Islamic commercial jurisprudence on the other. In doing so, I engage with ongoing debates surrounding trust and transnational commercial exchange, while suggesting how historians can begin to write a textured legal history of economic life in the Indian Ocean.

Kendra Boyd
"A Group of Newark Women on Welfare Have Found a Novel Way to Cut Food Costs—They've Opened Their Own Grocery Store"

In 1967, black consumers in Newark, New Jersey, were tired of paying high prices for inferior products, having to buy on credit, pay outrageous interest rates, and continue to be stuck in a cycle of debt. The frustrations of female welfare clients resulted in them forming a buying club and operating a cooperative, not-for-profit store. By operating this cooperative store, these women constructed a critique of the state for failing to adequately provide not only for welfare recipients, but also for the black community as a whole. They were also critical of the exploitative business culture that capitalism allowed. These welfare clients were making a statement: that in the age of mass consumption, they had the right to consume in a fair and free market. If the government and enterprises would not facilitate this, they would make it happen themselves. This buying club and cooperative store was one way these women sought to meet the needs of poor blacks in the city, and make a step toward full economic citizenship. The operation of this cooperative store shows how the ideologies of self-help, self-determination, and community development that thrived in the Black Power era were pragmatically applied to the lives of everyday people.

David C. Brock
An Existential Entrepreneur: The U.S. Military and Microcircuitry, 1940 to 1965

From World War II through the High Cold War, the U.S. military responded to existential threats posed by electronics through activist entrepreneurship. Military planners and leadership determined that electronic systems were essential to fighting World War II and to waging the strategic military competitions that defined the High Cold War. Within the logic of electronics technology itself, military thought-leaders identified a number of roadblocks to the development of electronics to meet their needs: assembly of complex circuits, circuit and component robustness and reliability, manufacturing cost, as well as size and weight. In response the U.S. military undertook a continuous program of activist efforts that can best be described as entrepreneurship. It supplied funding for R&D activities at government laboratories and industrial firms, it provided direct funding for the development and deployment of new manufacturing technologies and capabilities in the U.S. electronics industry, and, importantly, it engaged in large-scale market-making for new electronics technologies, acting as a growing, price-insensitive customer for the products for which it funded R&D and manufacturing. This paper presents an overview of U.S. military entrepreneurship in the development of the technology of and industry for transistors, printed circuitry, microcircuits, and the microchip in this period.

Marcelo Bucheli and Stephanie Decker
Economic Nationalism In Latin America and Africa in The Twentieth Century: A Comparison

This paper compares the policies of nationalization of foreign property in Africa and Latin America during the twentieth century. We find the following two differences between the two continents. First, while many expropriations in Latin America aimed to redistribute income among members of the lower and middle classes, those carried out in Africa were done to redistribute the expropriated properties among members of the domestic elite. Second, African countries not only nationalized foreign multinationals, but also "indigenized" properties of foreign merchants to distribute them among domestic ones. Indigenization did not occur in Latin America. We argue that these differences result from the longevity of nation-states and the need new rulers had to legitimize their power in new nations, and a longer tradition of labor unionism in Latin America in contrast to Africa. We reach our conclusions by using the selectorate theory of political survival as our main theoretical approach.

Glenn Bugos
American Airmail as an Analogy for Commercial Space

The National Advisory Committee for Aeronautics (NACA) and government subsidy of airmail fueled the emerging American air industry. The NACA, an interagency research body, actively surveyed the state of the art to define the most common problems afflicting those who built and operated aircraft, then did the research to solve those problems. Airmail service began in 1918 as a government function, operating at a substantial loss, within the U.S. Army Signal Corps and the Post Office. The structure of the industry shifted dramatically when the Kelly Act of 1925 privatized airmail service and the Air Commerce Act of 1926 established a framework for regulating air commerce. This was a time of significant corruption, with the government over-investing $7.5 million per year in air commerce. It was also a time when the NACA introduced the technologies that, by the early 1930s, enabled the "airframe revolution." Government involvement in the early years of airmail is seen by many today as a model for how NASA and the FAA can support an emerging commercial space industry.

Olivier Burtin
The "One-Woman Army": Vivien Kellems, Business and the Tax Resistance Movement

Throughout the twentieth century, few members of the business community have been as consistently and harshly critical of the state as Vivien Kellems (1896-1975). This paper investigates her activity as the chief opponent of the income tax in the mid-1940s-early 1950s United States. An iconic figure among right-wing tax resisters, her example illustrates the ebb and flow of the movement in a period where it remains relatively under-documented by historians. Raised in a religious, middle-class family, she founded her own cable grips company in New York City in 1927 and quickly became rich. As a vocal representative of small businesses and an occasional opponent of larger corporations, she illustrated the diversity of opinions inside this community. Already a staunch Republican but not yet a full-fledged conservative, she had her political opinions and her opposition to taxation distinctly hardened by the frustrating experience of war production. In January 1944, she made herself famous nationwide for the first time by refusing to pay the income tax, a move that provoked widespread outrage. In 1948, she refused to withhold income taxes from her employees' wages, and used the trial that followed to gather political momentum and form a national grassroots movement.

Henderson Carter
The Role of Government in the Development of the Electricity Service in Barbados, 1911-1980
   [Paper]

Barbados has had a public electricity service since 1911, provided first by the Barbados Electric Supply Corporation and then its successor, the Barbados Light & Power Co., Ltd. Such a service, starting in the island's capital city, Bridgetown, and moving into the rural areas, has been central the country's development. In this essay I argue that government played a key role in the development of the service, first as facilitator through legislation in the period up to 1950. Then, with the coming of ministerial government and independence, government, in an effort to push its modernization program, placed pressure on the electricity provider to expand its operations and invested in the company. This expansion paved the way for the provision of a sound electricity infrastructure, which secured the successful diversification of the island's economy and the transformation of the society.

Christy Ford Chapin
Insurance Companies and the Hidden Politics of Health Care, 1945 to 1965

Because I will be discussing much of the material originally intended for this paper in my Krooss Presentation, this presentation will instead focus on current implications of the insurance-company model. I argue that an interplay of public and private power caused the health care system to develop around a specific organizational model—the insurance company model. Understanding this model explains why the U.S. health care system has such high costs and fragmented care. Policymakers structured the recent 2010 Patient Protection and Affordable Care Act around the insurance company model, so I will also offer a few thoughts about how the reforms may unfold.

Shannan Clark
The Freedom of the Press from Labor: The National War Labor Board, the First Amendment, and the Assertion of Managerial Prerogatives in the United States during the 1940s

During the Second World War, the National War Labor Board (NWLB) had a crucial role in minimizing labor-management strife in the United States and maintaining maximum production in the arsenal of democracy. In exchange for unions' "no-strike" pledge and their acceptance of wage controls, the NWLB mandated various policies that abetted the expansion of union membership. One of the most contentious of these pro-labor measures was the insistence of the NWLB on the inclusion of maintenance of membership clauses into labor contracts in industries deemed essential to the war effort, a category that included the publishers of newspapers and news magazines. Some publishers with employees represented by the Newspaper Guild, a CIO-affiliated union of journalists and other white-collar workers, resisted NWLB moves to extend this policy into the print media. Prominent media enterprises such as the New York Times and Time Inc. argued that the NWLB directives violated the First Amendment guarantees of freedom of the press. Appropriating a constitutional right of individual American citizens as a right of corporations, they insinuated that management would lose editorial control over media content if journalists were required to remain members of the Guild in good standing as a condition of continued employment.

Cynthia Connolly
Creating the "Therapeutic Orphan": Pediatric Pharmaceutical Policy in the United States, 1933-1979

In 1972, pediatrician Harry Shirkey's frustration boiled over. The nation's leading advocate for stronger pediatric drug regulation felt stymied in his long-term goal of assuring that drugs used in children were safe and effective. He raised a provocative question: "Was it intended that infants and children be singled out for neglect when two major pieces of twentieth-century drug legislation, one in 1938 and one in 1962, were enacted?" He argued that it was long past the time when it was considered acceptable for children to languish as "therapeutic orphans," denied their "pharmacological rights" through label disclaimers acknowledging the lack of pediatric safety and efficacy data. Whose job was it to fix the problem, he asked, industry, pediatricians, or the Food and Drug Administration (FDA)? This paper, part of a larger study on the history of children and pharmaceuticals in the United States since the 1930s, traces negotiations among the FDA, Congress, industry, health care providers, and parents in the years between 1933 and 1979 as new drugs poured on the market, the regulatory environment shifted dramatically, and the costs of drug development skyrocketed. It draws on numerous primary sources: FDA records, National Archives; United States Pharmacopeia records and archival holdings at the American Institute for the History of Pharmacy, both in Madison, Wisconsin; the Helen Taussig papers at Johns Hopkins; American Academy of Pediatrics' Committee on Drugs records in Elk Grove, Illinois; and oral histories drawn from industry, FDA, and clinicians. Findings are contextualized in the historiography of twentieth-century children's health care. The narrative is also situated in recent scholarship on the history of pharmaceuticals in the United States, little of which has focused on pediatrics.

Tobias Cramer
Patent Law, Research, and Competitiveness: The German Dye Industry during the German Empire, 1871-1914

Recent studies on the rise of Germany's synthetic dye and pharmaceutical industry usually highlight the impact of beneficial institutional conditions. Most important among them are the enactment of patent laws and a higher education system capable of supplying a huge amount of qualified personnel. According to mainstream business history, market leaders (such as Bayer, BASF, and AGFA) managed especially well to integrate these chemists into their industrial research labs to develop innovative products and processes. Once patented, these processes guaranteed lower production costs, better quality, and even new products (for example, synthetic indigo). With a given consumption function, sales should increase. Applying explorative-descriptive statistics on recently discovered sources from various corporate archives and patent statistics, this study challenges that broadly accepted but empirically unproven thesis. This paper will address two questions. First, to what extent did the different patent acts affect the industrial innovativeness, considering that patents are regarded as a difficult but valid measure to determine innovative outputs? Second, did the establishment of centralized research laboratories cause an increase in innovations, and if yes, when?

Mark Crowley
Technological Change and the Future of Post Office Communications, 1939-1945

This paper will investigate how technological developments in the British Post Office during the Second World War were the key to securing military victory. The Post Office was, during wartime, the largest government-owned business and the largest single employer of women. Consequently, the Government saw it as central to the war effort. Despite being originally reluctant to experiment with new technology in wartime, the Government was led by its desire for innovation and change to facilitate military victory to change its attitude, helping the Post Office to become a better prepared and more efficient organization for the post-Second World War period. The paper will highlight the debates surrounding the development and experimentation with new technology, especially concerning the costs and practicalities. Primarily, this paper will explore the debates within the Post Office pertaining to the practicalities of introducing new technology for wartime communications, and will show how the Post Office overcame its reservations about the suitability and practicality of new technology, successfully persuading the Treasury to provide the additional finance.

Cory Davis
Commercial Republicanism: Merchant Thought on the Relationship between Business and Government in the Late Nineteenth-Century United States

In this paper I analyze the outlines of a particular vision of the relationship of business and government developed by the nineteenth-century merchants who created the National Board of Trade (NBOT), the first major national association of organized businessmen in the United States. This vision, what I refer to as commercial republicanism, sought to create a clearly defined responsibility for merchants in guiding the economic policies at all levels of government in pursuit of an idealized unity of interests following the Civil War. In doing so, merchants argued for a contrast between "responsible capital" and the rapaciousness of monopolistic businessmen and offered the NBOT as a representative body well-designed to work responsibly with government in developing commercial legislation that would combat sectional and economic factionalism and lead the country to prosperity.

Alan Derickson
Race and Cancer in the Steel Industry: The Battle over the OSHA Coke Oven Emission Standard, and Its Curious Conclusion

This paper examines public-health measures to control employee exposure to the carcinogenic hazards of making coke, the steelmaking fuel produced by roasting coal, in the United States. It centers on the promulgation of the federal coke oven emission standard in 1976 and the forces that led steelmakers to accept this rule. Making coke was always a nasty affair. Accordingly, management recruited workers with few or no employment alternatives. Initially, fresh immigrants from Eastern and Central Europe tended the ovens. By the 1920s, the workforce was predominantly African American. Unlike other entrants into steel employment, African Americans could not use the internal labor markets of large steel firms to escape to less dangerous and generally more desirable positions. The coke plant remained a job ghetto for decades. Coke oven emissions cause cancer of the lungs and other sites. Awareness of this association spread slowly in the United States and eventually became undeniable for corporate medical directors and others in positions of responsibility. Authoritative epidemiological findings that coke workers in general and black coke workers in particular had extremely high mortality from lung cancer led the Occupational Safety and Health Administration to set a relatively stringent limit on exposure in 1976. My argument is that the steel industry's acceptance of this remedial measure, a breakthrough in protection for workers of color, depended on an unusual combination of external pressures and self-interested incentives. The project draws primarily on the archives of the United Steelworkers (Penn State), including the records of its Health and Safety Department and those of the local union at US Steel's main coke works. I also use the OSHA records (National Archives), the American Iron and Steel Institute records (Hagley), and numerous published primary sources.

Stephanie Deutsch
Julius Rosenwald: Retail Merchant and Wholesale Philanthropist

Julius Rosenwald's name is today no longer widely recognized, but during his lifetime he was revered as the successful president of Sears, Roebuck, one of the country's largest and most successful commercial enterprises, and as a philanthropist of unusual vision and generosity. After a wise investment in a small, unknown mail order company netted him a fortune, Rosenwald gave serious consideration to how best to use that wealth to benefit his community. He began with organizations that assisted his fellow Jews but quickly moved beyond that to a wider sense of community and a commitment to help African Americans. In 1911 Rosenwald met black educator Booker T. Washington and found in him an able and congenial colleague. Together, they created a plan to assist small rural communities in the South in building schoolhouses for the drastically underserved African American children there. The five thousand schools, teachers' homes, libraries, and shop buildings in fifteen states that resulted were financed as well by state public school systems. The conscientious attention to detail and the ability to trust colleagues that had served Rosenwald so well as a business owner combined with his commitment to civic engagement and his sense of identification with a despised minority to make him an unusually successful philanthropist.

Alexander Donges
Economic Rationality and State-Owned Companies in Nazi Germany: The Forma- tion of the Reichswerke "Hermann Göring"

In this paper I analyze the formation of the Reichswerke "Hermann Göring," the most important state holding company in Nazi Germany. The Reichswerke were founded in 1937 as a result of the preceding conflict between private steel producers and the economic authorities. Hermann Göring, Commissioner for the Four-Year Plan, demanded the expansion of domestic iron and steel production. Since this plan was associated with excessive risks, the private companies refused to invest. As a result, Göring ordered the construction of state-controlled iron and steel works. In the literature, the formation of the Reichswerke is often used as an example for economic irrationality in the Third Reich. By comparing the economic interests of private steel producers with the strategic goals of the regime, I show that it was rational. Furthermore, scholars interpret this event as a turning point that indicated the beginning of an increasing suppression of private business in favor of state-controlled companies. I argue in this paper that the formation of the Reichswerke was an exception. In general, the regime cooperated with private business in implementing the economic program. But in this case a cooperative solution had to fail because of widely diverging interests.

Pierre-Yves Donzé and Takafumi Kurosawa
Nestlé Coping with Japanese Nationalism: The Establishment and Maintenance Strategy of a Foreign Multinational Enterprise in Japan, 1913-1945

This presentation focuses on the strategy adopted by Nestlé in Japan between the establishment of a branch at Yokohama in 1913 and the end of World War II. It highlights the difficulties encountered by the firm in its attempts to open up and operate production facilities due to strong opposition from local condensed milk makers, supported by the state. Eventually, in 1934, Nestlé opened a factory by founding an incorporated company, ARKK, all of whose shareholders were Japanese working for Nestlé. This particular organization, with a Japanese company producing condensed milk and a Swiss company selling it, can be explained by the double necessity to hide the foreign ownership of the plant, on the one hand, and to use at the same time the foreign character of the brand ("Nestlé," "Anglo-Swiss," etc.) toward consumers, on the other hand. Although the war drastically curtailed the activities of both Nestlé Japan and ARKK, the organizational facilities set up during the interwar period provided a springboard for Nestlé's postwar success in Japan.

Thomas Dorrance
The National Recovery Act and Local Struggles for the New Deal Economy

This presentation uses the NRA as a case study to explore the relationship between public power and private control in Chicago and Los Angeles during the New Deal. Shifting the focus away from a contest between national and municipal authority, I emphasize competitions at the local level for control over federal programs. The tension animating local politics during the early New Deal was not debates over federal expansion but was instead the struggle among local elites seeking to maintain private practices and hierarchies in each city's political economy—not so much against government interference but against other groups also attempting to use government agencies to gain greater access within privately ordered economic systems. In Chicago, AFL unions and members of the business community enjoyed a cooperative relationship based on an informal system of contracts and agreements. This arrangement allowed an exclusive cohort control over New Deal programs. In Los Angeles, fierce commitment to the open shop coupled with a resurgent labor movement during the decade created a more raucous and open competition for local control of federal programs. As a result, reformers worked to insulate NRA agencies from the city's warring economic factions.

Alan Dye
Creative Destruction and Entrepreneurial Obstruction: Cuban Sugar, 1898-1939

In response to the Great Depression, Cuba adopted a crop restriction policy that protected the sugar industry from experiencing a shakeout of inefficient sugar milling capacity. This paper applies a vintage-capital model of creative destruction to test whether the implementation of crop restriction caused an obstruction of the Schumpeterian liquidation process. The test employs discrete-time survival analysis to examine differences in entry, survival, and exit patterns in the favorable institutional environment of the pre-crop-controls period against the unfavorable institutional environment of the crop-controls period. Entry, exit, and survival patterns and production cost estimates give evidence of a thriving technological upgrading in the former period but apparent cessation of upgrading in the latter, with negative long-run consequences on production costs and Cuba's international competitiveness in the global sugar market.

Alexander Engel
Debating and Regulating Futures Trading in the Fin de Siècle: International Comparisons

Since the 1870s, futures markets at commodity exchanges have been a notable institution all over Europe and North America, and were discussed especially intensely in the 1890s and 1900s. Was this the ultimate form of effective competitive markets, or a device of gambling speculators ruining the economy? While the United States and Germany are often seen as prime examples of pro-market and contra-market capitalism, the arguments, interests, and the majority attitude on both sides of the Atlantic were in fact rather similar. This paper gives an internationally comparative account of the debates and regulatory efforts regarding futures trading, and shows how the views of publicists and lawmakers developed and settled within three to four decades. After an initial focus on corners and gambling laws, the debate shifted toward questions of power and pricing: How did futures trading affect prices? Was the pricing process arbitrary or effective? And to what degree were producers and intermediaries excluded from it? A first wave of U.S. and German legislative efforts in the first early 1890s aimed at the prohibition of futures, but generally and almost everywhere, the focus shifted toward separating detrimental from legitimate futures trading by establishing ever tighter regulation and control over the exchanges.

Kate Epstein
Arms and the State: American Torpedoes, Intellectual Property Rights, and the Origins of the Military-Industrial Complex before World War I

In keeping with President Eisenhower's Farewell Address, historians generally date the emergence of the military-industrial complex (MIC) to the early Cold War or to World War II. I argue in this paper that the essential dynamics of the MIC actually lie decades earlier, in the pre-World War I period, and that it emerged not from a particular war but from industrialization more broadly. As American torpedo development illustrates, at the heart of the MIC's emergence was a new class of naval technology procured in novel ways. Beginning in the 1880s, naval technology began to be so complex and sophisticated that neither the public nor the private sectors could research and develop (R&D) it on their own. Instead, the public sector began to invest in private-sector R&D. This investment raised new and very difficult intellectual property (IP) rights questions: where both sectors collaborated in the process of invention, which owned the resulting IP rights? Governments acted aggressively to assert their IP rights, going so far as to use anti-espionage legislation to stake their claims. This expansion of government power was precisely the sort of political-economic development that Eisenhower believed to characterize the military-industrial complex and the national security state.

Bernardita Escobar Andrae
Women in Business: Chile from the 1870s to the 1900s

In this paper I study the extent of engagement of women in business activities during the last quarter of the nineteenth century. First, I review the literature concerning the relationship between women's participation in economic activity and levels of economic development. Second, I examine the evolution of female involvement in leading business roles through the study of two different and unexplored data sets collected for this purpose: the trademark registry—established in Chile in the 1870s—and the local business local tax system (Matrícula de Patentes) for Santiago, already in place in the 1870s. The paper confronts the evidence as told by censuses of the time and these data sets. As in recent studies for other countries, this paper finds evidence that contradicts an allegedly decreasing female participation in economic activity.

Alexander J. Field
The Interwar Housing Cycle in the Light of 2001-2011: A Comparative Historical Approach

In this paper I examine the interwar housing cycle in comparison to what transpired in the United States between 2001 and 2011. The 1920s experienced a boom in construction and prolonged retardation in building in the 1930s, resulting in a swing in residential construction's share of GDP and its absolute volume that was larger than what has taken place in the 2000s. In contrast, there was relatively little sustained movement in the real price of housing between 1919 and 1941, and the up and down price movements were remarkably modest, certainly in comparison with more recent experience. I document the higher degree of housing leverage in 2001-2011 and a rate of foreclosure post-2006 that is likely higher than during the 1930s. I conclude that balance sheet problems resulting from a prior residential housing boom pose greater obstacles to recovery today than they did in the interwar period.

Mathieu Floquet and Patrice Laroche
The Impossible Transition from "Absolute Monarchy" toward Industrial Democracy in France: The Experience of Workers' Representatives at Schneider, 1899-1936
    [Paper]

Following strikes in the Schneider factories in Le Creusot in 1899, management was forced to satisfy union demands and set up a representative personnel authority, namely, workers' representatives, who would be allowed to resolve conflicts and transmit demands to management. However, the role of the workers' representatives was hijacked by management and rapidly diverted from its objective, leading to the suffocation of unionization at birth. This study seeks to show how the initial establishment of worker participation resulted in weaker unionization overall.

Tony Freyer and Daniel Thomas
Reconsidering the Commerce Power in Trans-Atlantic Context: The Passenger Cases (1849)

The Supreme Court's 5-4 decision in the Passenger Cases (1849) overturned two northern states' taxes on foreign immigrants. Eight opinions disputed whether destitute trans-Atlantic immigrants arriving in U.S. ports possessed a legal status of "persons" like fugitive slaves fleeing the South, free African Americans residing in the U.S.-Canadian borderlands, and black seamen working on ships entering southern ports. Locating the Passenger Cases within converging Irish Famine immigrant and antislavery crises, I argue that the Court's decision enforced divergent state-federal commerce power regulations that socially and constitutionally "embedded" in northern free states the police power status of "persons" possessing conditional civil rights and liberties. During the mid-nineteenth century, Karl Polanyi affirmed, liberals put forth the idea that markets were autonomous, 'disembedded' entities existing separate from government intervention and policies. According to Polanyi, however, legal and constitutional policies and laws "embedded" civil as well as market relations—including particular distributional outcomes—within society and institutions. Thus, Matthew J. Lindsay said, the "federalization of immigration lawmaking between the first federal Passenger Act of 1819 and Congress's assumption of full administrative control over the landing of immigrants in 1891 was deeply embedded in two epochal historical dynamics: slavery and emancipation, and the industrialization of labor." The embedding of socially conflicted commerce-power questions in the Passenger Cases began in a trans-Atlantic context; the conflict became still more entrenched as slavery and foreign immigrant crises converged within Congress, the states, and lawyers' court-room arguments. As a result of the Court's ambiguous position in the Passenger Cases, each subsequent case became a new litmus test. The Court favored southern slave holders in the notorious 1857 Dred Scott decision; in Ableman v. Booth (1859) it overturned the Wisconsin Supreme Court's reliance on state police powers to defy federal enforcement of the 1850 Fugitive Slave Act. The failure of the Court to agree on a reason for its decision in the Passenger Cases cast southern state slavery laws into a growing shadow of conflicted contestation. Eventually, the constitutional cognitive dissonance inaugurated in the Passenger Cases collapsed when it became clear that free and slave theories of governance could not be sustained in one government, and the South seceded.

Katarina Friberg, Rachael Vorburgh-Rugh, John Wilson, and Tony Webster
The Politics of Commercial Dynamics: Co-operative Adaptations to Post War Consumerism in the U.K. and Sweden, 1950-2010

This paper, based on our chapter in the forthcoming collection A Special Kind of Business: The Cooperative Movement 1950-2010...and Beyond, edited by Louis Galambos and Franco Amatori, compares and evaluates the business strategies of the British and Swedish consumers' co-operative movements since 1950. Specifically, it chronicles the experience of two key co-operative organizations—the UK's Co-operative Group (formerly the Co-operative Wholesale Society, CWS) and Sweden's Kooperativa Förbundet (KF)—as they faced the challenges of modernization during an era of growing consumer spending power and increased competition from larger, increasingly multinational investor-led retail corporations. We use a cross-national comparison to challenge the common "narrative of decline" often applied to studies of European co-operatives in this period and to explore the impact of internal and external environments on co-operative business strategies.

Judith J. Friedman
A Public-Private Partnership in Town Promotion: Elyria Ohio, 1900-1910

Businessmen in Elyria, Ohio, transformed its economy within a decade. A county seat with a diverse economy in 1900, Elyria became a small city tied to the regional metals industry and the national telephone industry before 1910. Industrialists and bankers formed a Chamber of Commerce in 1899 and set up a committee to attract new industry and negotiate with companies. Companies typically wanted free land or a site fund, sewer connections, paved roads, and housing nearby for workers. City government made decisions on platting, road paving, and sewer connections. The 1900 Councilmen were primarily local merchants. Thus industrialists had to work with small businessmen to get utilities for new firms, to raise money for site funds, and to get housing built. Through the decade, industrialists became more active in city government, and they brought more merchants into the Chamber as officers, as well as members. Elyria added Elyria Iron and Steel, Columbia Steel Works, Fox Furnace (a Cleveland firm making hot-air furnaces), Dean Electric, Garford Automobiles, American Lace, Perry-Fay Company (machine screws) and Worth Manufacturing (clothing). While the Chamber took credit for this growth, only three of the companies were truly brought in from the outside.

Carola Frydman and Eric Hilt
The Panic of 1907: Trust Companies and the Impact of the Financial Crisis

The outbreak of the Panic of 1907 occurred following a series of scandalous revelations about the investments of some prominent New York financiers, which triggered widespread runs on trust companies throughout New York City. Trust companies were less regulated and held fewer reserves than commercial banks, and were not members of the New York Clearing House Association (NYCHA). Using newly collected data, this paper investigates the economic consequences of the Panic of 1907 and the regulatory response that followed. The runs on the trust companies are shown to be partly the result of depositors' fears that their trust companies were caught up in a scandal, when in fact they were not. The corporate clients of the trust companies that suffered the worst deposit losses, in turn, performed worse during the years of the crisis and its aftermath. In response, the state increased reserve requirements on trust companies, and they were ultimately admitted into the NYCHA in 1911.

Martha N. Gardner
"Needlessly and Massively Exposed": The FDA, Industry, and the 1972 Ban on Hexachlorophene in Consumer Products

In 1972, the FDA banned the use of the synthetic chemical hexachlorophene in consumer products. An effective and nonabrasive germicide, hexachlorophene had become popular in hospitals as a surgical wash and general cleaner in the 1940s and 1950s. Introduced in 1948, Dial soap was the first consumer product to include hexachlorophene as a killer of the bacteria that makes human perspiration stink, making Dial no. 1 within five years. By the early 1970s, it was an ingredient in over 400 personal care products, from toothpastes to deodorants to feminine hygiene sprays. However, by the late 1960s, concern emerged about its potential risks. Neurological damage topped the list, with animal studies showing clear signs of harm. FDA decision-makers commented on the lack of careful safety and efficacy testing before its initial introduction in the late 1940s. In contrast, the original inventor of hexachlorophene protested the idea that the chemical was unsafe, claiming that the twenty years of its widespread use "established" its "safety." The popularity of the chemical, the dispute over its risks, and the decision-making process in this time of emerging awareness and concern over environmental and drug risks, are the subject of this paper.

Shennette Garrett-Scott
"All the Other Devils This Side of Hades": State Regulation of Negro Banks in Jim Crow Mississippi, 1900-1915

As brick and mortar edifices to the initiative, thrift, and ambition of not merely "Negro captains of industry" but of the black community as a whole, early twentieth-century, black-owned banks in Mississippi implicitly declared that blacks could—and would—subvert efforts to fetter civil rights and economic progress, especially in the coveted business circles of banking and finance. By 1915, however, black-owned banks were in the crosshairs of zealous state regulators who wanted to strengthen Mississippi's troubled banking system. This presentation explores how Mississippi's state banking regulations reflected both high-minded Progressive Era ideals and harsh Jim Crow reality before World War I. It will consider areas of cooperation and conflict among Negro and white bankers in the wake of stricter state regulations, and it will describe how black bankers throughout the state mobilized to address the new challenges presented by the state and the political economy of Jim Crow in the New South.

Rosalie Genova
The "Appearance of Corruption" and "Pinstriped Crooks": Narratives of the Enron Scandal in 2002 Regulatory Reforms

Two major pieces of legislation were enacted in 2002 purportedly in response to the Enron collapse: the McCain-Feingold Bipartisan Campaign Reform Act and the Sarbanes-Oxley Act for Corporate Accountability. This was one of many occasions in legislative history when an incident invoked as proof of broader problems—here, in campaign finance and in corporate financial disclosures, respectively—paved the way for pre-existing reform initiatives. In this regard, Enron became less salient as a corporate bankruptcy and more salient as a political scandal. I argue in this paper that certain narratives of Enron's collapse, deliberately crafted toward specific political ends, led to avowals in Congress that McCain-Feingold and Sarbanes-Oxley could prevent a "repeat performance." I also explore the 2002 laws' significance (or lack thereof) for those who felt Enron signified that big business threatened the fair functioning of markets and democratic politics. I conclude by exploring how the 2010 changes to relevant law, in the Dodd-Frank financial reform bill and the Citizens United v. FEC decision, suggest continuities and differences in approaches to regulation between the "Enron era" of accounting scandals and current debates about what caused, and how to recover from, the recent financial crisis.

Judge Glock
The Federal Housing Administration: Did It Really Favor the Suburbs?

There is a near universal consensus among historians of post-World War II America that the Federal Housing Administration (FHA) was central in shaping the modern American landscape. Its putative anti-urban bias is used to explain both the rise of white, middle-class suburbia and the decline of increasingly impoverished and increasingly black central cities. This paper will show that this claim is based on two fundamental misunderstandings. One is the absence of any comparison of FHA mortgages with the rest of the private housing market. When this comparison is performed, the result is almost the polar opposite to that usually posited. The FHA tended to favor multifamily housing relative to single-family, central city developments relative to suburban, and its loans to white and nonwhite households largely mimicked the rest of the market. Second, a singular focus on the FHA's Section 203 guarantee program for single family homes has ignored the myriad other programs at the FHA, from multifamily rental housing to home repair loans, which disproportionally benefited cities and existing neighborhoods and which constituted large portions of all FHA loans. This paper shows that far from creating contemporary suburbia, the FHA struggled vigorously against its rise.

Andrew Godley and David Leslie-Hughes
The Beginning of Pharmaceutical R&D in the USA: The Hidden Technology Transfer from E. Merck to Merck & Co.

This paper challenges the current scholarly consensus about how the U.S. pharmaceutical industry acquired technological competences during the interwar period. First, I compare data on R&D inputs and outputs for the leading U.S. and German firms throughout the 1920s and 1930s, and conclude that German firms retained a strong technological leadership through until the 1940s. Second, I examine the significance of the industry R&D laboratories in the United States by examining the critical case study of Merck. George F. Merck opened the Merck Institute of Therapeutic Research in 1932 in New Jersey with great publicity, highlighting how this would transform the research potential of the U.S. industry. The paper, however, shows that Merck had a very different agenda, wanting to import technology developed by Merck's former parent company, E. Merck of Darmstadt. After World War 1, George W. Merck was allowed to reacquire the U.S. business after it had been sequestrated by the U.S. government. A key condition of this repurchase was, however, that the U.S. Merck had to forego any commercial relationship with the former German parent. Given that E. Merck was the source of all new technological developments, this presented a significant problem for the U.S. company. While U.S. Merck promoted its New Jersey research laboratories, in reality the company's growing technological capabilities arose from a large and systematic transfer of German products and know-how to the U.S. business during the 1930s under the terms of a treaty between the two companies. The paper outlines this transfer of technology and its implications for both the current interpretation of the origins of research capabilities in the U.S. industry and its subsequent post-1940 success.

Leslie Hannah
Whig Fables of Corporatization, 1776-1914

Incorporations by special act and general ones were standardized and cheapened, as state revenues from privileged incorporations—enthusiastically promoted by British monarchs and early U.S. political elites—were constrained. UK politicians moved faster, cheaply conferring privileged corporate status on scalable projects and those requiring eminent domain, extensively tolerating unauthorized companies, and thus facilitating levels of capital accumulation by companies higher than in the United States. Corporatization in the latter overtook leading continental nations in the 1830s, but did not match the UK's corporate capital/GDP ratio until the twentieth century. Parliament routinely required extensive shareholder protections in statutory corporations, most of whose shares were publicly subscribed and traded. Moreover, among the (laxly regulated and after mid-century more numerous) generically registered companies, the larger ones listing on the London Stock Exchange emulated them. This voluntary flight to the top fits libertarian models of rational investor/manager free contracting, but contrasts with the corporate flight to the New Jersey/Delaware bottom, criticized by American jurists. Thus by 1914 the United States had less than 5% of the world's companies quoted on open, transparent stock exchanges but more than half of the world's closed corporations.

Bradley A. Hansen and Mary Eschelbach Hansen
Business and the Evolution of Debt Collection Laws: Garnishment and Wage Assignment in Illinois, 1880-1930

In the 1870s and 1880s legislation and court rulings combined to make the wages of a head of household almost completely exempt from garnishment in Illinois. Yet by the 1930s, Illinois was regarded as one the states where it was easiest for a creditor to claim a large share of a debtor's wages. We argue that the driving force behind the evolution of garnishment and wage assignment in Illinois was the conflict between two groups of business people: large employers and businesses that supplied credit to wage earners. Large employers regarded garnishment and wage assignment as costly nuisances and sought to restrict their use. Businesses that provided credit to wage earners regarded garnishment and wage assignment as important tools and sought to minimize restrictions on their use. Each group pursued change through legislation, through the judiciary, and through private contracting. Because the conflict between large employers and businesses that provided credit was meditated through the political and legal systems, the outcomes were also shaped by the influence of other interest groups and by the ideologies of judges. By the 1930s, this combination of forces left Illinois with a relatively moderate garnishment law but virtually unrestricted use of wage assignment.

Thomas Heinrich
Industrial Mobilization of State-Owned Enterprise: U.S. Navy Yards during the New Deal and World War II

Though state-controlled enterprise is a bit of an anomaly in American economic history, industrial plants owned and operated by the federal government played an especially important role in sectors related to national defense. Key among these was warship construction, where navy yards produced high-performance weapons platforms for the American fleet since its inception. Their significance for the creation and maintenance of American seapower proliferated in World War II, when the U.S. navy became the world's largest employer of industrial labor and built some of the most sophisticated combatants of the American fleet. The navy's reliance on state-controlled enterprise calls into question the validity of conventional interpretations of industrial mobilization that focus on the conversion of civilian industries to military production. The paper argues that the groundwork for navy yard shipbuilding in World War II was laid during the New Deal, when the Roosevelt administration expanded the navy yards in response to the cartelization of naval shipbuilding, creating a major industrial asset for World War II.

Robert Henderson
To Regulate or Not to Regulate: Money Market Mutual Funds and the Soul of the New Deal System of Housing Finance, 1975-1982

In this paper, I argue that the debate over the regulation of money market mutual funds in the mid-1970s to early 1980s revealed competing visions of the future of housing finance. One side sought to preserve the New Deal system of low-cost funds raised for mortgage investment by local depository institutions, while the other envisioned household savings and investment capital freely flowing to the highest returns, without special effort to allocate credit for housing. I further argue that regulators' decision not to limit money market funds when they first considered such regulations in 1976 constrained policymakers' options in responding to the thrift crisis of the early 1980s.

David Higgins and Mads Mordhorst
"Bringing Home the Bacon"? State Promotion of the Branding and Marketing of Danish Bacon in Britain during the Interwar Years

A substantial literature documents the importance of effective branding to business success. However, much of this work focuses on private companies operating in a limited range of industries, or on internal national relationships between manufacturers and politicians. We develop these themes by emphasizing the importance of external relations and external markets. This paper focuses on state promotion of national branding schemes in agriculture during the interwar years. We employ a case study that examines the success of Danish bacon exports to Britain during the interwar years to advance several arguments. First, an asymmetric relationship existed between these countries: as the biggest export market for Danish bacon, Britain was crucial to the fortunes of the Danish industry, but the converse did not hold, because Britain could increase its supplies from Ireland, Canada, Holland, and the United States. Second, although Britain sought to increase its domestic supply of bacon via state promotion of national branding and marketing schemes, these were abject failures. Throughout the interwar period British consumers overwhelmingly preferred Danish to British bacon. How can this continued preference for Danish bacon be explained? We argue that that the Danish industry benefitted from a high degree of state regulation, which guaranteed high minimum levels of quality throughout the supply chain; a high level of co-operation between producers and the state, and, most important, accurate information about British tastes and preferences for bacon. Taken together, these factors gave Danish producers an invaluable and insurmountable lead enshrined in their state-promoted brands. In contrast, we show that British efforts were uncoordinated and de-regulated, with the consequence that British farmers had little, if any, financial incentive to produce "bacon pigs" of the desired quality. Consequently, state efforts to promote national branding and marketing schemes for bacon—and related products—were ineffectual. The paper utilizes a diverse range of official archival data in Britain and Denmark, supplemented by trade journal reports and newspaper commentary. Additionally, we construct a new price series to establish changes in the relative competitiveness of Danish and UK bacon.

Nate Holdren
"A serious handicap upon the defective workman in search of employment": Law, Liability, and Disability in the Early Twentieth-Century United States

In this paper I argue that legal decisions in lawsuits brought by people with disabilities helped create incentives for employers to practice discriminatory hiring against people with disabilities. Workers compensation legislation, responding to an epidemic of workplace accidents, increased employers' liability for employees' workplace injuries. Despite disabled people's widespread workforce participation, these laws presumed able-bodied employees. This gap between law and economic practice made injuries to disabled people legally ambiguous, resulting in numerous lawsuits by disabled workers who suffered further disabling injuries. Many lawsuits dealt in particular with already one-eyed workers who suffered eye injuries. Courts debated whether workers blinded by the loss of one eye should be compensated for lost quantity of body (losing one eye) or lost capacity (losing all sight). Over time courts increasingly held employers liable for total post-injury incapacity. Increased injury liability led many employers to stop hiring disabled workers. Under early twentieth-century U.S. workplace injury law, disabled workers either bore greater individual risks of injury or posed a financial risk for employers, which lowered disabled workers' job prospects.

Daniel S. Holt
The Stock Market and the States: Securities Regulation, 1907-1933

In this paper, I argue that securities regulation at the state level was a key, but overlooked, component in the institutional development of a broad market in corporate securities in the early twentieth century. I examine the operations of state public service commissions in New York and Wisconsin, which were tasked with regulating the capital issues of electric and gas utilities and street railways. I also discuss securities commissions created under state "blue sky" laws, which targeted securities dealers and high-risk, speculative stock promotions in oil, mining, and upstart industrial ventures. In both cases, state regulators were concerned with the issue of watered stock, which they believed masked the value of corporations and encouraged speculation on the part of those least prepared to engage in it. Regulators used their authority to shape the kinds of investments offered to the novice small investor, to suppress speculation, and steer small savers into safe, stable investments. These regulations helped spark, and operated in tension with, financial industry efforts to court small investors and helped contribute to the public legitimacy of the stock market by the 1920s.

Peter James Hudson
Rogue Bankers and Gentlemanly Capitalists: American Foreign Banking, 1890-1913

In this paper I examine the international extension of American banking during the decades before 1913, the year the Federal Reserve Act permitted national banking associations to establish foreign branches. It revisits the histories of and the debates surrounding the formation of two early foreign banking institutions: first, the Pan-American Bank, a never-realized international banking institution that was called for by the delegates of the 1890 Pan-American Financial Conference in Washington, D.C.; second, the International Banking Corporation, chartered in Connecticut in 1902 and its New York affiliate, the American Bank. The paper demonstrates how bankers sought to create a new institutional or organizational form that could operate across the hybrid, plural, and uneven legal environment of international finance. It shows how these institutions found ways around the constraints of both federal and state regulation to establish a foreign presence. And, by unearthing the biographies of the clerks, examiners, and managers sent out into the foreign field, the "rogue bankers" who were the first generation of American international banking personnel, I show how financial intermediation across national borders was facilitated and brokered by a small network "on the ground." The experiences of these rogue bankers and of those early U.S. international financial institutions, I argue, would prove critical to the wave of foreign banking expansion that occurred following 1913.

Jill S. Huerta
Crises in the Making: The Regulation and Deregulation of the U.S. S&L Industry

In analyzing the savings and loan collapse of the 1980s, this paper argues that a tendency to focus on high-profile criminal cases has distracted us from the most important aspects of this story, namely the failure of regulation. The New Deal financial regulatory structure helped savings and loans become the largest writers of home mortgages in the United States by the 1950s. However, by the 1970s, changes in the global economy and corresponding adjustments to U.S. financial markets had made it impossible for savings and loan to succeed under the old framework. The need for regulatory adjustment was dire, but the difficulty in securing compromises from such a large number of interested parties meant this process would be long and flawed. Both the Carter and Reagan administrations saw deregulation as the cure, but it was no panacea. To the contrary, the absence of regulation encouraged risky investments and gambling in addition to fraud. Surprisingly, the savings and loan collapse did not discourage supporters of deregulation. Instead, deregulation picked up momentum and spread until most of the financial regulation put in place by the New Deal had been undone, setting the stage for the financial crisis of 2008.

Vilja Hulden
Sitting on the Lid: The National Association of Manufacturers and the Legislative Branch, 1902-1948

The National Association of Manufactures (NAM) is well known for its pro-free enterprise, anti-statist rhetoric. The noisiness of that rhetoric, however, has in part obscured the fact that the NAM never objected to state power per se; rather, its attitude toward state power depended on who controlled that power and in whose behalf it was exercised. The bulk of the paper focuses on the early years of the twentieth century. It examines the major areas of government policy that the NAM engaged with in this period, and concludes that in the majority of cases the NAM promoted the expansion rather than the limitation of state power. The paper then analyzes the NAM's early twentieth-century critique of state power, and finds that it was almost exclusively directed at legislatures and their vulnerability to democratic demands. The NAM's rhetorical condemnation of government "interference" became broader during the New Deal and postwar years, and began to particularly target the federal government. I suggest in this paper that this rhetorical shift reflected a strategic cultivation of anti-statist sentiment in a period when the Association increasingly doubted its ability to decisively influence the state.

Romain Huret
Low Taxes, High Times? Businessmen, Andrew W. Mellon, and Tax Policy, 1920-1932

From 1920 to 1932, businessmen took an active role in the shaping of federal tax policy. The Mellon Plan of November 1923 was supported by professional organizations (Chamber of Commerce, U.S. Chamber of Commerce, the Association of Credit Men, the Tax League of America, the New York Board of Trade, and the National Association of Retail Grocers) and corporations, which sent thousands of letters and petitions to their congressmen. The petitions were sponsored by Chambers of Commerce and local chapters of service clubs such as the Rotary, Kiwanis, and Lions Clubs. Most were pre-printed and circulated throughout the country, and urged Congressmen "to take a persistent and aggressive stand for lower Federal taxes and to support a tax reduction plan." However, if consensus prevailed in the first years of the 1920s, businessmen were divided along sectorial lines and interests. In Southern and Midwestern states, small businessmen joined tax clubs to advocate for a "full Mellon plan" and the repeal of all war taxes. Some sectors (oil, lumber, paper, chemicals) strongly fueled the movement of tax resistance. However, internationalist corporations were more interested in the scientific and rational association proposed by the Commerce Department in order to increase their competitiveness in foreign markets. Andrew Mellon was caught between two antagonistic interests and sought to build a new fiscal consensus. The Great Depression put an end to such compromise and increased the divide between sectors and companies on the issue of federal taxation.

Jason Jackson
The Political Economy of Foreign Direct Investment: Constructing Economic Interests and Policy Preferences in Post-War India and Brazil

This paper explores the tension between materialist and constructivist theories by contrasting the evolution of FDI policy preferences in India and Brazil. It argues that economic actors' policy preferences cannot be fully explained by rational calculation or structural position; "preference formation" is a contested process of social interaction between firms and the government. The paper examines post-World War II industrial development efforts to show that, despite having similar development goals and facing similar financial and technological challenges in promoting manufacturing industry, and confronting the same global economic environment (especially the aggressive post-war expansion of U.S. multinational firms), these countries adopted different approaches to regulating foreign capital. These differences emerged from variation in beliefs about the role of foreign versus domestic firms in development, where Indian policymakers and industrialists' skepticism toward FDI stands in contrast to the relative openness of their Brazilian counterparts. The implications are reflected in patterns of ownership and control in automobiles and pharmaceuticals, two industries that were heavily promoted as the foundation of post-war industrialization. Indian industry emerged largely controlled by domestic private capital and the state, while in Brazil multinational firms were dominant, a pattern that largely persists to this day. The paper highlights the social and political origins of preferences and the role of business politics in shaping policy and market outcomes.

Ann Johnson
Regulating and Re-regulating the Automobile: The Challenge of Emissions

In 1970 Phil Myers, president of the Society for Automotive Engineers, wrote that individual consumers would not choose to spend more money for cleaner cars, and therefore government regulation had to shape the market for the common good. Myers cast himself as a spokesman for industry, speaking in favor of the 1970 Clean Air Act. For Myers, the new standards of the 1970s would incentivize a new approach to the technology of emissions control. Rather than considering emissions control a problem of capturing harmful exhaust gases, auto manufacturers began to reconsider the nature of the combustion process and whether optimizing combustion might be combined with exhaust gas capture to produce a far cleaner automobile than engineers imagined possible. This was the message of Myers' address in 1970—engineers should oppose any hard standard on emissions because technological innovations would make feasible ever higher standards. Myers was clear about the role of government: to shape, by constraint, consumer choice. Governments had to manage markets to facilitate technological development. Myers saw the automobile as an "emerging technology," whose continued existence (but changing form) depended on technological innovation, government regulation, and consumers.

Chin Jou
When Uncle Sam Partnered with Ronald McDonald: How the Federal Government Helped the Fast Food Industry Expand into America's Inner Cities

This paper considers the role of the federal government in the expansion of the fast food industry into America's inner cities since the 1960s. In the mid-to-late 1960s, race riots took place in many cities, including Los Angeles, Detroit, Washington, D.C., Baltimore, and Newark. During and after the urban unrest, activists called for economic development in African American communities. In response, federal policymakers sought solutions to high unemployment among young African Americans, as well as low minority business ownership. Some of their well-intentioned solutions included supporting fast food franchises in inner cities, particularly if the restaurants could create jobs and more minority business owners. Corporate fast food franchisors had also been looking to expand into inner cities and other untested markets, so they seized this opportunity at government-subsidized expansion. But today, many inner cities are saturated with fast food restaurants—a circumstance that some health advocates and researchers believe contributes to disproportionately high rates of obesity among the low-income minority residents of the these communities.

Miriam Kaminishi
Japanese Imperialism in Manchuria: An Approach to the Role of Japanese Currencies in Soybean Marketing during the 1920s

This essay aims to broaden discussion on the role of Japanese currencies in Manchuria during the 1920s, by describing its function in the process of soybeans marketing. Manchuria adopted a multiple monetary system considered "confusing" and often "chaotic" by foreigners. This monetary system was composed of a variety of currencies, including foreign, national, regional, and local levels, based on gold, silver, and copper, issued by public and private institutions, as well as by individuals. The Japanese currencies were issued by two banks: the Yokohama Specie Bank (YSB), which issued banknotes based on silver, and the Bank of Chosen with banknotes backed by gold. At first, it seems that the currencies of the monetary system of Manchuria were in conflict with the Japanese currencies issued by the YSB and the Bank of Chosen. However, by analyzing primary statistical data on the exchange rate and the issuance of major currencies published by the South Manchuria Railway Company, one can see that Japanese currencies played a major role in negotiating soybeans between Chinese grain dealers and international traders.

Matthias Kipping
Masters of the Universe After All? Consulting Alumni in Business and Politics

This paper represents a first attempt to gauge the importance of the network of former consultants occupying leading positions both in corporations and government/public administration. This is particularly the case of McKinsey alumni, whose influence has been discussed on an irregular basis in the business press, often in conjunction with scandals like Enron, where CEO Jeff Skilling had previously been a director at McKinsey (and is now serving a prison sentence). But this important phenomenon has yet to receive the appropriate attention in the academic literature. If mentioned at all, it is usually in relationship to the way consultants "market" their services—that is, McKinsey alumni are seen as a way build strong relationships with potential clients. There is also an interesting case in which McKinsey hired a high-ranked civil servant as a director in the United Kingdom to gain access to government clients. I start with a brief historical sketch of the development of McKinsey as a management consulting firm and the introduction of its "up-or-out" policy, which is behind the creation of the alumni network. Drawing on publicly available sources, I will then present an overview of the actual extent of this phenomenon, providing some estimates for the overall number of former McKinsey consultants now in business and public roles, and a list of some of those in high-profile positions both in the past and the present, focusing in particular on alumni who have crossed the business-government divide. Next, I will discuss possible interpretations of this phenomenon, drawing on extant frameworks in the relevant literature. These include the possibility that working for a consulting firm is mainly a career accelerator, a kind of MBA squared; the consulting alumni network as a kind of hidden interlocking directorate, spanning countries and sectors as well as the business-government divide and also reaching into academia; or the former consultants as "cosmocrats": a culturally—and ideologically—homogenous transnational elite.

Berti Kolbow
Selling Photography to Hitler: Marketing Strategies of Kodak and Agfa in the Third Reich, 1933-1945

The purpose of this paper is to understand how the business enterprises Agfa and Kodak adapted their marketing strategies to the political environment of the interventionist Nazi state. This was a time when many consumption good companies suffered from the state-driven reallocation of resources favoring the armament industry. However, Agfa, the national champion in photographic supplies, as well as the local subsidiary of the U.S.-based world market leader Kodak, expanded their production well into the war. First, this paper challenges mainstream research by arguing that Hitler's armament drive left room for high-quality, non-essential consumer goods such as photographic cameras and film as they fitted the regime's racial consumption policy, as well as its export-oriented economic policy. This allowed Agfa and Kodak to maintain their longstanding growth strategies by only slightly altering their product, pricing, and promotion concepts. Secondly, challenging the varieties of capitalism paradigm, this comparative study shows that despite coming from a competitive market system, Kodak was flexibly able to secure its room to maneuver in the interventionist framework of the Nazi state—the same way as the traditionally cooperative-minded yet increasingly "Americanized" Agfa.

Mark Kuhlberg
The Invisible Hand: International Paper's Conquest of Ontario, 1920-1930

Historians who have traced relations between "business and the state" in Canada's newsprint industry have drawn practically the same conclusions. The provincial governments that controlled access to the natural resources the pulp and paper makers sought linked arms with them in an effort to build up the strongest possible domestic industry. There are numerous reasons to challenge this interpretive framework, however, and the story of the Ontario government's treatment of the International Paper Company during the 1920s illustrates a few of them. During this period, the Canadian pulp and paper industry was not monolithic, and the various firms competed with each other for fiber and water power resources. In the case of IP in Ontario, the provincial politicians showered the company with largesse, awarding it a remarkably lucrative hydro-electric contract and a veritable treasure trove of pulpwood. This benevolence is noteworthy because Ontario's "domestic" newsprint producers urgently sought the timber that the government repeatedly gave IP. Moreover, IP had long been these producers' greatest competitor and represented the epitome of the "foreign" firm, as it did not—and would never—operate even one ton of newsprint capacity in the province. Recognizing the stealthy manner in which IP operated in Ontario explains why this story has gone unknown for so long.

Chi Man Kwong
Elephants Are Killed for Their Ivory: Shenyang Arsenal and Its Subsidiaries, 1919-1931

The Eastern Three Province Arsenal (Dongsansheng binggongcang), or the Shenyang Arsenal, was one of the largest arsenals in East Asia before the outbreak of the Second World War. With full support of the local authority, which was controlled by the warlord Zhang Zuolin, this state-owned venture emerged from a weapon repair workshop into an industrial complex that could produce more arms than all other arsenals in China combined between 1919 and 1931. Not only providing arms to Zhang Zuolin's Fengtian Army, with its subsidiaries such as the Fengtian Military Food Factory (Fengtian liangmocang) and Fengtian Uniform Factory (Fengtian pifucang), the arsenal helped to create the first modern logistics system of the Chinese army. It also developed its own types of weapon, ending China's complete reliance on imported arms and nurturing a generation of Chinese weapon specialists and military administrators. The development of the arsenal also expanded the state's capacity considerably, as the state was responsible for collecting raw material for the arsenal in Manchuria and from aboard. Although the Shenyang Arsenal had served the Fengtian warlord well, it drained a tremendous amount of resources from Manchuria. Moreover, while it was a means to end China's military dependence on Japan (in terms of arms production), the Arsenal still relied on Japan for raw materials to a large extent. The Arsenal was also seen by the Japanese as a menace, and partly explained the decision of the Kwantung Army to seize the Arsenal. During the Second Sino-Japanese War between 1937 and 1945, the Arsenal became an important asset of the Imperial Japanese Army. More than narrating the history of the Shenyang Arsenal, in this paper I attempt to identify the reasons for the (relative) success of this arsenal and explain its role in the Chinese state in Manchuria. In addition, I evaluate the Arsenal's effectiveness on research and development as well as the quality and quantity of its products.

Pamela Walker Laird
Narratives of Self-Made Men and the State in Antebellum America

In 1832 Henry Clay famously used the phrase "self-made men" in the U.S. Senate while defending the American System and federal support for manufacturing. He praised Kentucky manufacturers as "enterprising and self-made men" who deserved the nation's honors and favors because they had "acquired whatever wealth they possess by patient and diligent labor." In 1817, Congressman and fellow Kentuckian Alney McLean had argued that men "among the lower and middle walks of life ... as to property... who might be styled self-made men" were worthier of election than the "more wealthy" because of their "talents, morality, industry, and integrity." McLean drew upon a centuries-old call to serve and glorify God and community as men's measure, best achieved by building their character and working diligently in their vocations. Whereas McLean lauded "self-made men" for what they could do for the nation, Clay praised such businessmen in order to garner support from the nation. As the young republic debated its course, the meaning of "self-made men" shifted from McLean's sense to Clay's. Recovering the phrase's religious and community-oriented traditions helps to explain how worldly success came to measure men's character and determine their claims on public esteem and state largess.

Erik Lakomaa
Corporatist Advertising in Cold War Sweden: War and Peace Time Cooperation between Swedish Advertising Companies and Psychological Defense Authorities, 1954-1975

During the Cold War, neutral Sweden was one of the most militarized countries in the world, and select companies from most major industries were part of the "total defense" and included in war-time planning. The planning, formalized in the early 1960s, not only included the provisions for the companies in the event of war but also gave them special privileges in peace time. In this paper the relationship between the government agencies responsible for psychological defense and civilian advertising companies is analyzed. It is shown that the relationship at least occasionally gave the participating companies advantages when it came to government contracts, both for the military and for other government agencies. The paper also gives an overview of the history and organization of psychological defense and of the advertising organization within the psychological defense authorities. The paper also describes the services that the advertising companies provided and how the contracts were handed out.

Josh Lauer
Database Panic: The Computerization of Consumer Credit Reporting in the United States

In 1966 a U.S. congressional committee was formed to investigate a proposed federal database that would allow several agencies, including the Internal Revenue Service and the Census Bureau, to share statistical information. The hearings featured grandstanding denunciations of state surveillance and fear-mongering predictions about an Orwellian computer society. The government database was nixed, but the hearings produced a more startling discovery: the American public was already under the surveillance of private-sector databases operated by consumer credit bureaus. In this paper I examine the computerization of American consumer credit bureaus during the mid-1960s and the significant challenges—financial, technical, and logistical—that they faced. While many banks and large retailers were quick to adopt computer systems during the early 1960s, credit bureaus were initially left behind. The impetus to automate, however, emerged in 1965 when one firm, Credit Data Corporation (CDC), opened the first computerized bureau in Los Angeles. CDC's entrance into the field immediately touched off a race to computerize among the nation's leading consumer credit reporting organizations.

Fabio Lavista and Giandomenico Piluso
Getting Unsustainable: Debts, Investments and Losses of Italian State-Owned Enterprises from the Golden Age to Privatizations, 1951-1991

Italian SOEs performed quite well during the golden age, enhancing the growth potential of manufacturing sectors, fostering the increase of firms' size and heightening productivity levels. In the 1950s and 1960s investments were financed largely through long-term debts, while capitalization plunged periodically, following investment cycles in capital-intensive industries. Nevertheless, constant and robust improvements in productivity allowed sustainable high levels of indebtedness. During the 1970s stagflation altered the overall framework profoundly: macroeconomic shocks hit the cost structure of big businesses, improper political pressures forced SOEs to bail out private poorly performing firms and to increase employment levels, as interest rates increased. Stagflation acted as a powerful stimulus to revise monetary policy models, and the central banking paradigm changed dramatically in the second half of the decade, increasing the cost of money: huge debts became a "financial trap" for low-performing firms. Considering the history of Italian SOEs in a large framework, the paper shows that, under specific circumstances, debts could be assumed as a funding channel when self-financing declined. Focusing on the specific institutional arrangements and macroeconomic policies adopted during the 1970s, it also explains how an adjustment process may fail and makes clear why a successful model turned into a failure.

William Lazonick and Yin Li
China's Path to Indigenous Innovation

In 2006 the Chinese government made the promotion of indigenous innovation central to its Medium- and Long-Term Plan for the Development of Science and Technology (2006-2020). This latest stage in China's growth builds on earlier policies that promoted infrastructure investments in China and technology transfer to China from abroad. The dynamism of the Chinese economy can be understood in terms of the combination of these three drivers of economic growth: infrastructure investment, technology transfer, and indigenous innovation. We argue that the foundations for China's growth have been the development and utilization of productive resources by the developmental state and innovative enterprise, working in combination. We outline the theories of the developmental state and innovative enterprise in order to frame the empirical analysis that forms the main body of the paper. We then provide empirical syntheses of research that documents the roles of the state in infrastructure investment and technology transfer, as well as the role of the enterprise in transforming technologies and accessing markets to generate innovation. In particular, we focus on the increasingly important phenomenon of "indigenous innovation" in China, whereby Chinese companies improve upon technology transferred from aboard to become important competitors in Chinese and global product markets.

Andrea Lluch
The Historical Evolution of Trademark Legal Frameworks and Registration in Latin America: The Argentine Experience

While business historians have paid a good deal of attention to the history of brands, less has been written on trademark history and laws. In this paper I intend to study these issues in Latin America, where business-historical interest in branding and trademarks has been negligible at best. To do so, I discuss the evolution of trademark laws and registration frameworks in Argentina until the mid-twentieth century. Argentina boasted one of the highest per-capita registration rates in the Americas, following the United States. In addition, I discuss the relationship between politics and trademark laws and practices, describing the state regulations introduced in the 1920s to mandate the use of a mark of origin (Argentina's Merchandise Identification Act (no. 11,275). The analysis of different regulations also reveals a growing link between economic nationalism and branding, reflecting the role of trademarks in developing economies (characterized by a high level of international marking). Indeed, it may be safe to argue that the period between the 1860s and the 1970s witnessed a transformation in the way in which trademarks were conceived (as property) and used (practices and perceptions). This paper relies on a variety of legal and business records to make up for the fact that there are no prior studies (except from an international trade perspective) and no complete official statistics for the period analyzed

Miguel A. López-Morell and Luciano Segreto
The International Mercury Cartel, 1928-1949

The first aim of this work will be to describe the features of the various stages of development of the international mercury market during the first half of the twentieth century, with emphasis on the characteristics and conditioning factors in each period. Second, we want to analyze the various market agreements that resulted from the worldwide collusive duopoly known as "Mercurio Europeo" based in Lausanne, which came into being in 1928 after a series of agreements between the Spanish and the Italian producers, the effectiveness of the clauses therein, the construction of distribution networks, and the influence that the increase in production had on other mines and on certain technological developments. This research has drawn on unprecedented sources for its preparation, in particular the minutes of Mercurio Europeo deposited in the archives of the Fundación Almadén (Almaden Trust), as well as those of Monte Amiata company Archives (at the Mining Museum in Abbadia S. Salvatore), the IRI Historical Archives in Rome, the Rothschild Archives in London, and the National Archives of the United States (Department of Commerce).

Slawomir Lotysz
Think before You Ban: American Reactions to the Rise of an Independent Antibiotic Industry in Eastern Europe in the Late 1940s

In early 1946 the United Nations Relief and Rehabilitation Administration (UNRRA), established to aid war-worn countries, offered five complete penicillin plants to be built in Belarus, Czechoslovakia, Poland, Ukraine, and Yugoslavia. Thanks to the UNRRA fellowships, local specialists were trained in Canada. Although most of the equipment reached the target countries, they were not able to launch production of antibiotics, because the U.S. government cut the delivery of some of the key devices. The affected countries launched a diplomatic campaign at the World Health Organization (WHO) forum, demanding that the UNRRA relief program should be continued in spite of the embargo. When these efforts failed, Poland with other countries withdrew from the WHO in 1950, protesting against its inability to solve the tangle. In spite of obstacles the East Europeans pursued efforts to put the factories into operation. Each country approached the problem in its own way. Eventually the restrictions had the opposite effect than the one imagined by the Washington "hawks." In spite of the ban, Poland's first penicillin plant was ready in summer 1949, and within a few years it became an important producer of that medicine, competing in the Western markets.

Christina Lubinski and Julia Laura Rischbieter
The Good Gambler: State Regulation and Public Debates on Futures Trading in British India and Germany, 1880-1930

Debates about the legitimacy of futures trading were omnipresent in the highly integrated world economy of the late nineteenth and early twentieth century. In this paper, we compare those debates in Germany and British India, two countries that were extremely diverse in their economic and political context and in the way they regulated futures trading. Germany was the first country worldwide to ban futures trading in selected commodities, while it remained largely unregulated in British India. Despite the formally different outcomes, we show that the respective debates resembled each other in many ways: in both countries futures exchanges were private organizations controlled by a small and in many ways privileged group of traders. In both countries these minorities were based on social ties and de facto controlled access to futures markets. Both groups were also faced with criticism because they were able to realize profits that a majority of people had no access to. Reviewing the debates we show that the main issue was not the legitimacy of futures trading but rather the distribution conflicts among the various interest groups that were engaged in futures trading.

Corinna Ludwig
"It's ugly, but it gets you there": Volkswagen's Advertising Strategy in the United States, 1949-1968

The German automobile manufacturer Volkswagen had multiple reasons for expanding into the United States, ranging from the desire to increase its capacity utilization and foreign currency earnings, to company president Heinrich Nordhoff's interest in the country. Based on research in the VW corporate archive, my paper analyzes VW's advertising strategy for the U.S. market from 1949 to 1968. To survive in the competitive American automobile market, VW had to find its niche and compete against other importers from Europe. Moreover, its small and simple main product, the Beetle, ran counter to the consumer preferences the "Big Three" Detroit automakers encouraged. In 1959, VW hired the American advertising agency Doyle Dane Bernbach to develop national campaigns. The corporate image the agency created for the German company was a crucial factor in VW's breakthrough in the 1960s. In this paper I highlight the importance of advertising as a marketing strategy and illustrate the role of brand images. I will examine how VW utilized the "foreigner factor" and how it dealt with national stereotypes. Finally, I will situate VW's campaigns within the broader history of 1960s automobile advertising in the United States.

Martin Lutz
Siemens and the Soviet State: A Matter of Trust?

"Communism is Soviet power plus electrification of the whole country," as Lenin famously argued in 1920. Ten years later, at the height of the World Economic Crisis, the Soviet Union became one of Siemens's most important customers. Siemens technology and machinery played a vital role in the first Five-Year Plan. What is even more surprising is that this was not a recent development. The company started negotiating with the Bolsheviks as early as February 1918, barely four months after the October Revolution. Two years later, during the Russian Civil War, Siemens signed its first Soviet business deal. This paper addresses two questions. First, why would one of the largest capitalist companies in Europe start business relations with the Soviet state so shortly after the October Revolution? Second, how can one explain the quantitative development of Siemens's Soviet business? I apply actor-centered institutional theory to answer these questions. I argue that the development of Siemens's Soviet business depended on mutual trust; or rather, that the absence of trust required the intervention of the German government to provide incentives for Siemens to do business with the Soviet state.

Chris Madsen
Technology Adoption and Adaptation in Canada's West Coast Shipyards, 1918-1950
    [Paper]

Shipbuilding emerged as a major industry in the province of British Columbia during the first half of the twentieth century. The demands of world wars, foreign and coastal trade markets with accompanying port development, government stimulus of industry and manufacturing, as well as a growing commodity-driven regional economy influenced decisions behind construction of ships. Private companies and government procurement officials measured progress in shipbuilding against developments in other leading maritime countries, most particularly the United Kingdom and the United States. Shipbuilding in British Columbia reflected an amalgam of British craft tradition, North American production practice, and the inclinations of individual owners and their workforces. Accordingly, adoption of new technology in this "modern" industry relied on perceived suitability and acceptance. Key areas included the choice between wood and steel construction, longer term infrastructure investments under the Dry Dock Subsidies Act, persistence of riveting versus welding in hull assembly, locally supplied marine engines and complex machinery, and the finishing applied to new construction and conversions. Canada's mid-size west coast shipyards were always hard-pressed to keep abreast of the latest technology in order to maintain any competitive edge and to offset other limitations besetting shipbuilding generally as a viable heavy industry.

Karen Ward Mahar and Tara Keough
"The Fullback Is a Lady": Sports, Gender, and Post-War Welfare Capitalism

In this paper we argue that, because female athletic success implies masculinity, high-achieving female athletes in corporate sports challenged the status quo by throwing women's abilities and limitations into question. However, using General Electric as an example, we suggest that corporations successfully contained any threat posed by the female athlete through demeaning coverage of women's sports and through the planning of events meant to reinforce gender ideals for women, from rolling pin games to field day beauty contests. We also suggest that the same mechanisms used to contain the threat of female athleticism were part of a larger corporate culture that contained the threat of high-achieving women in the workplace, such as GE's female scientists and engineers.

Hassan Malik
Reassessing "The Loan That Saved Russia": The Hidden Costs of the Imperial Russian Government 5% 1906 Loan

On April 16, 1906, the Russian government signed a contract for a 2.25 billion franc loan that former finance minister and then-prime minister Sergei Witte famously called "the loan that saved Russia." Given that the loan was contracted after Russia's humiliation in the Russo-Japanese War, and after months of unrest during the 1905 Revolution, many historians accept this view in traditional narratives of the Russian Revolution. An examination of correspondence held in London among leading members of the issuing syndicate and with Russian and Western government officials, however, suggests that the 1906 loan had a much more conflicted and complex legacy. Rather than marking an end to the 1905 Revolution, the 1906 loan in many ways exacerbated the problems confronting the tsarist regime by angering and radicalizing domestic opponents of the regime, while also opening new fronts of confrontation between the regime and its opponents internationally. In this sense, the legacy of the 1906 loan stretched far beyond the end of the 1905 Revolution into the events of 1917.

Rebecca Marchiel
"Communities Must Be Vigilant": The Mixed Results of Grassroots Financial Regulation through the Community Reinvestment Act of 1977

With their focus on the urban crisis, historians of the post-1945 United States often portray the political and economic reconfigurations of the metropolis as a linear march toward the conservative suburbs. In doing so, they have missed the successes of a 1970s urban movement that believed cities could be revitalized with help from American banks. National People's Action, a nationwide, multiracial coalition of working-class urbanites, scored legislative victories that increased the flow of mortgage credit to capital-starved neighborhoods in an effort to rebuild cities. Rejecting urban renewal projects designed by far-away bureaucrats, these reinvestment activists won federal regulations that enlisted financial institutions in resident-initiated, small-scale redevelopment—building homes on vacant lots, renovating old buildings, and rehabbing rental housing.

Emily L. Martz
The State's Assumptions about Mutual Funds: A Corrective History, 1929-1932

Historians and members of the public typically assume that officers within the mutual fund industry have prioritized sales since they created their first funds in 1924. The Securities and Exchange Commission's often cited report on the industry's early operations is largely responsible for this categorization; the report described the industry as one that operated according to a culture of sales, one in which sales dominated the principals' activities. In this paper I correct that perception and demonstrate that the founders of the earliest open-end investment companies (as mutual funds were then called) actually failed to market their companies. Indeed, the society within which some officers lived and worked precluded them from actively selling shares of their fund. Many others created their company as a tool to support another business rather than as a profitable venture unto itself, and hence sales occurred as a consequence of other efforts rather than because of organized marketing campaigns. By the time the SEC wrote its report, sales were a major part of many mutual fund operations; however, through the early 1930s, officers did little selling.

Hanaan Marwah
The "Cement Armada" and Other Nigerian Government Attempts to Ease Construction Bottlenecks during the 1970s Oil Boom

In this paper I investigate Nigeria's post-independence economic malaise through the study of one particular Nigerian government policy: the decision to try to increase the supply of construction inputs in the country, and ease a critical bottleneck which was slowing down the investment of its national development programs. This policy involved the public sector directly organizing cement imports and investing in and managing contractors and building material suppliers. The paper describes these attempts and, by presenting a construction supply curve, shows that one aspect of this policy, importing cement, dramatically raised the cost of building for much of the oil boom by causing catastrophic, multi-year port congestion. This had a direct impact on the ability of both the public and private sectors to grow. Existing literature has frequently mentioned the disproportionate role of the state in increasing the demand for construction during the 1970s oil boom, but this is the first in-depth study of the state's attempts to supply the industry. This paper is a historical case study which has significant implications for all underdeveloped countries attempting large-scale investment programs, with and without the help of a resource boom.

W. Patrick McCray and Roger Eardley-Pryor
Take a Little Risk? Historical Analogies and the Regulation of Nanotechnology

Since the mid-1990s, researchers, policy makers, and business leaders have touted nanotechnology as a key emerging technology for the twenty-first century. At the same time, nanotechnology—a slippery term with definitions ranging from an ensemble of existing instrumental techniques to a specific class of new materials to a paradigm-shattering scientific frontier—arrived accompanied by uncertainty and risk. Previous technological controversies over nuclear power, DDT, recombinant DNA, asbestos, and genetically modified organisms provided nanotechnology's proponents and opponents with examples they could mobilize as they worked to shape public perception and policy. This paper explores how and why concerns about nanotechnology's environmental, health and safety (EHS) issues moved so rapidly to the forefront of policy discussions. It also argues that the risk and regulation of previous technologies provided analogies for experts to debate the need to regulate this new emerging technology.

Ajay Mehrotra
Corporate Capitalism and the Changing Constitution: The Legal Foundations of the Modern American Fiscal State

This paper explores how the turn-of-the-century consolidation of corporate capitalism helped build the legal foundations of the modern American fiscal state. In contrast to the standard accounts of the rise of direct and progressive taxation, which focus almost exclusively on political institutions and actors, this paper analyzes how the great merger movement and the rise of Big Business shaped the development of a nascent conceptual revolution in American public finance. It did so in at least two ways. First, tax reformers capitalized on the social anxieties that accompanied the rise of Big Business to help create the constitutional foundations for a graduated income tax as well the first permanent, peacetime income tax laws. Second, and perhaps more important, the advent of managerial corporate capitalism provided the organizational basis, or what public finance scholars refer to as the "tax handles," for the future growth of the income tax regime. In this paper I chronicle how these two factors contributed to building the foundations of the emerging modern American fiscal state.

Tito Menzani
The Italian Cooperative Movement and Its Legal Environment, 1945-2010

In the second half of the twentieth century, Italian legislation dealt specifically with cooperative enterprises. At the political level and in the everyday sense, this was then interpreted as a favor to a movement that had actual links to the world of the parties. In this contribution, instead, we maintain that the legislation wanted to promote a type of entrepreneurship that guaranteed the return of a social nature, and especially that the various regulations had an effective and obvious impact. In particular, the legislation tended to encourage dimensional growth and the capitalization of cooperatives. We explain, therefore, the correlation existing between the various legislative interventions and a series of empirical data that confirm how the cooperative movement was influenced by the changes in the regulations.

Karl-Erik Michelsen
A Technocratic Matrimony: Collaboration between the State and Private and Public Enterprises during the War Reparation Era in Finland, 1945-1952

How do societies change? Historians and sociologists have long tried to understand the phenomenon of social change. Various theoretical models have been introduced to explain how societies move from agrarian into industrial, and recently also into information society. Social change has also been one of the most heated topics of political and ideological discussion. This paper investigates the social change in a small country. The research is a part of larger on-going project that tries to explain how Western industrial societies changed into an information society. This study builds a collaborative model in which the state and private and public companies jointly work together to enhance social change. The study argues that the change can take place in a relatively short period of time and the initiative for the change can come outside of the society. In this case the time period is right after the World War II, when Finland was forced to pay war reparations to the Soviet Union. It is argued that this massive project forced Finland to restructure not only its industry, but also its economy and social order.

Michael Miller
States at War and Global Supply

This is a paper about the two world wars and the role of transport logistics in them. Arguably, both wars were world wars not only because they were fought over the world but because they were fought over access to and control of the world's resources. Without victory in the overseas supply war there was little prospect of victory in the land-based military war. This was a complex war that was often as much about denial of resources to the enemy as about acquisition of resources for oneself. For the purposes of an eighteen-minute presentation, I concentrate here on how Allied forces organized ocean transport for survival and victory. I begin with the challenges and then proceed to the solutions. My argument is that maritime business expertise and experience in running globally coordinated systems, as much as convoys or inter-Allied coordination, sustained Allied supply lines in the two world wars. Finally, toward the end of the paper, I reverse the exchange and ask how war in the twentieth century contributed to the subsequent shape of maritime business.

Matthew David Mitchell
The First Duke of Chandos and the Royal African Company

In 1720 an aristocratic clique led by James Brydges, first Duke of Chandos, bought a controlling stake in the Royal African Company. Convinced that the trans-Atlantic slave trade, at one time the RAC's main line of business, "is not to be carried on with any advantage" after the loss of the company's monopoly over British trade with Africa, Chandos fundamentally shifted the company's strategy, focusing its resources on the search for new African botanical and mineral resources that could be sold in England. Though this approach did not pay dividends, it did provide an example of how corporately organized firms behave when their legal and political environment turns decisively hostile.

Sam Mitrani
Policing Upheaval: How Employer Responses to the Labor Movement Drove the Development of State Power in Chicago
   [Paper]

Like other U.S. cities, Chicago built a powerful police force virtually from scratch in the second half of the nineteenth century. This essay posits that business leaders in Chicago pushed the municipal government to create such a force in reaction to the labor movement, and focuses on the crucial decade of the 1870s. As the city descended into an economic depression after 1873, Chicago seemed more divided along ethnic than class lines. A German-led People's Party ran the municipal government, and the native-born elite scrambled to reassert its power. Businessmen soon created the Citizens' Association to ensure professional control of the police no matter who won elections. When the strike of 1877 reached Chicago, businessmen further united to strengthen the police force, donating enormous sums to put down the strike and buy weapons for the department. They also formed a new, more exclusive organization dedicated to promoting their interests and police power, the Commercial Club of Chicago. This story suggests that business interests, not the threat of crime, drove the development of the police department, and that the police served to reconcile electoral democracy with the extremely unequal and exploitative Gilded Age economy.

Eloise Moss
"Security without disfiguring the furniture": The Chubb Lock and Safe Business and the Aesthetics of the Burglar-Proof Home in Britain, 1860-1939

Late nineteenth- and early twentieth-century Britain was a country beset by twin concerns: the steadily increasing number of burglaries, and the need to evoke status through the appearance and possessions of one's home. As successive governments sponsored police campaigns for homeowners to do more to safeguard their property, the lock and safe industry responded with sophisticated designs for ornamental locks and enamelled safes that sought to fulfill consumers' desire for security within the context of a beautiful home. Examining the product development and advertising of the Chubb Lock and Safe Co., this paper argues that state-enforced representations of crime served as the motor for commercial enterprise and aesthetic appeal alike, uniting safety with ideals of artistic domesticity. As such, the home's interior reflected an interplay between boundaries and furnishings, the latter disguising the former to evoke carefree residential harmony. Scholarship on the history of domestic space has treated decoration and security separately, disregarding their combined effect on the appearance of homes—and ignoring the breadth of commercial imperatives at work in the design of security technologies. Juxtaposing Chubb's products against political discourse on crime and cultural preoccupations with aesthetics, this paper illustrates the intersection of media, state, and market in devising commercially lucrative preventative technologies.

Crystal M. Moten
"A Credit to our City as well as our State": African American Beauticians, the Pressley School of Beauty Culture, and the State of Wisconsin, 1945-1950

Because of its relationship to the state of Wisconsin, the Pressley School of Beauty Culture in Milwaukee was a site of both opportunity and struggle for African American beauticians. Founded in 1945, the Pressley School of Beauty Culture was the only cosmetology training program in the state for African American beauticians. Despite their desire to obtain the skills they needed to practice legally in the state, Pressley students were often prohibited by stringent state statutes and tenuous relationships with state officials from successfully completing the cosmetology course. While historians have explored the relative economic, social, and political autonomy enjoyed by African American beauticians, exploring the work of African American beauticians in Wisconsin illustrates the impact of state policies on their ability to practice legally in that state. Despite these difficulties, African American beauticians in Wisconsin advocated for themselves as well as engaged in civic activism on behalf of working-class African American Milwaukeeans. Using archival sources such as the Wisconsin State Department of Health Cosmetology Division records of the Pressley School of Beauty Culture, I illustrate the ways in which African American beauticians negotiated with the state, stood up for themselves, and determined to be a "credit to [the] city and [the] state."

Aldo Musacchio, Sergio G. Lazzarini, and Claúdia Bruschi
Leviathan as a Manager in Brazil, 1973-1993: Does the Background of Managers of State-Owned Enterprises Matter?

There an evolving debate on the feasibility of state-owned enterprises (SOEs) in emerging markets. What lessons can business history provide to SOEs? Between 1970 and 1992 the federal government of Brazil had over 150 state-owned enterprises in industries that ranged from mining and oil to steel, airplanes, and utilities. Some of these SOEs were more efficient than others (measured in operational profitability, in labor productivity, or in their capacity to generate internal funds to invest, among other factors). A large literature attributed the relative success of this group of Brazilian SOEs to two factors: the autonomy that SOEs enjoyed from the government and the fact that some SOEs had low political intervention and were run by managers with technical backgrounds. In this paper we use a newly collected database of careers of hundreds of managers of SOEs and of financial and productivity data in the largest 100 public companies between 1970 and 1992 to explore how much manager autonomy and background mattered to explain differences in performance in state-owned enterprises beyond simple differences in performance due to industry characteristics.

Laurence B. Mussio
A Clear and Present Danger? The State, Foreign Control, and the Canadian Life Insurance Industry, 1950-1962

This paper examines the relationship between the Canadian Life Insurance Industry and the government of Canada in responding to the threat of a massive American-based takeover of the Canadian life insurance industry in the 1950s. It does so primarily through the experience of the then-largest Canadian life company, Sun Life of Canada. In the context of the growing contintentalization of the post-World War II Canadian economy, joint-stock life companies found themselves particularly vulnerable to the depredations of aggressive groups of investors south of the border. In the United States, a new and more pugnacious attitude on the part of stockholders added to the perilous environment. Stockholders were much more willing to challenge managerial prerogatives over a range of issues, from profit levels to investments, previously under the undisputed control of management. By the 1950s these pressures combined to make Canadian stock life companies increasingly vulnerable to takeover. Companies found themselves with ever-increasing assets balanced on a relatively small shareholder investment. As a general rule Canadian life company shares were closely held by a relatively small number of shareholders. Further, the capitalization itself was divided into comparatively few shares. When U.S. investors turned their attention to the institutional insurance behemoths north of the border, they saw large, profitable companies ripe for takeovers that could be accomplished with relatively modest amounts of money. Throughout the 1950s a determined group of American investors sought to capture managerial control of Sun Life of Canada. They were met with a broad consensus of corporate executives and public policy-makers who held to the view that, like the transportation, communications, and public utilities sectors, banking and insurance were key economic activities best left to Canadians. This threat against Canadian life companies represented perhaps the greatest peril to Canadian control in the financial services sector of the postwar period. The struggle to define both industry interests and the national interest commanded the efforts of both senior management and federal regulation. The result was the mutualization of virtually all the Canadian major life insurance companies. This paper is based on extensive access to an extraordinary range of corporate and public archives in Canada and the United States.

Marina Nicoli
"Movies and trade wars": The Case of the Italian Motion Picture Industry from the 1920s to the 1960s

Under what circumstances do states intervene in regulating creative industries? What are the rationales behind this intervention and how do they affect industry dynamics? In the 1920s, trade in filmed entertainment started to be completely controlled by the United States, and the American movie industry had soon to face daunting barriers in many markets, especially those in Europe. Trade restrictions (by taxes, tariffs, and quotas) in the cultural field were justified by the belief in national cultural sovereignty and the need to counter American imperialism. American cultural products were perceived as a threat to the receiving societies, producing an erosion of their values and cultural identities. On the other hand, U.S. movie companies strenuously defended the free trade regime in an attempt to preserve the integrity of their products. This choice was, indeed, in line with a different economic "mentality," but also reflected an awareness that international protectionism would bring about unbearable costs. Protectionism in the movie industry has taken the form of an unusual variety of instruments of trade (import quotas, taxes, import licenses, tariffs) and cultural policies (subsidies to domestic producers, language requirements, screen quotas, national schools and festivals). The distinction between trade policies and cultural policies is missing in existing works, and this leads to a lack in the understanding of the evolution of motion picture industry. Trade and cultural policies come from different lobbies and institutions. Trade and cultural policies are both state activities that can overlap, but an analytical distinction between them has to be made even though they have a reciprocal influence on each other. These instruments respond to different needs and have a different impact on industry development. Policy makers have worked to promote and regulate the movie industry not only to gain economic goals but also to suit broader national purposes like defending national cultural sovereignty. In this paper I will focus my attention on the Italian movie industry from the end of World War II to the 1960s. The shift toward democracy and the international success met by Italian movies highlights differences in public policy choices within a changed political and cultural environment. A brief description of fascist movie policies will be made for a better understanding. The middle of 1960s was chosen because during this decade a new law was approved for regulating the industry, and the previous legislative structure was modified in order to soften the previous excess of cinema welfare policy. Access to the historical archives of Sezione di Credito Cinematografico (created by fascism in 1935 for movie financing) at the Banca Nazionale del Lavoro helped me to work on fresh sources and to start digging into the topic of protectionism and free trade in the movie industry. The analysis is based on a dataset of the Italian movie industry from 1945 to 1965. Both primary and secondary sources have been used to cross check figures. The archival documents contain the official requests made by a specific Italian movie company to get access to credit loans and funds.

Shigehiro Nishimura
Patenting in the United Kingdom and Japan: Subsystems That Determined MNEs' Patent Policy
    [Paper]

A comparison of GE's patent applications in the United States, the United Kingdom, and Japan shows that, by 1914, GE had applied for many patents in the first two countries, but that its patent applications in Japan were negligible. An essential condition for multinational enterprises to consider when filing a significant number of patent applications is whether they can develop a patent management organization and relevant capabilities in the local market. In the United Kingdom, patent management and controls were conducted by the GE Board, assisted by specific individuals, the patent department, law firms, and patent agents. The organization of patent management and controls by British Thomson-Houston Company, Ltd. (BTH) was done by key talent from GE. Indeed, many local resources existed that could be used for patent management and control; however, without an organization and the technologies that could combine them to serve as a patent management and control system, BTH would not have been able to take advantage of patents. In the case of BTH, the techniques were in part imported from GE at an early stage and then developed. In the case of Japan, GE's subsidiaries did not form a patent department until 1919.

Dael Norwood
"A Great Thoroughfare for All Mankind": Asian Trade and the Antebellum Business Case for Building a Transcontinental Railroad
    [Paper]

Returning from China after the Opium War had forcibly opened new ports to Western traders, and just as hostilities with Mexico were promising to secure the Pacific Coast for the United States, Asa Whitney conceived of a bold plan to exploit these vast new fields for American business—and in the process unite the growing American empire. The former merchant's plan was simple: use federal land granted to him personally to finance a railroad across the North American continent. In one stroke, he promised that the United States would become the "great thoroughfare for all mankind"—and profit from it, too. A widespread consensus on the importance and legitimacy of encouraging American trade with Asia earned Whitney's proposal an enthusiastic hearing in the press and among legislators. By placing Whitney's plan in a longer context of ideas about Asian commerce, I argue that his plan was more than another flight of "manifest destiny"&$150;style nationalist fantasy. Instead, it illustrates just how deeply rooted ideas about the revolutionary potential of Asian trade were in the political culture of the United States. Understanding the context in which Whitney's plan was developed and debated grants us a new perspective on how an attachment to global commerce shaped Americans' public-private collaborations.

Keith Orejel
Factories in the Fallows: Deindustrialization and the Making of Modern Rural Politics, 1945-1965

In the quarter century after World War II, government policies and technological innovations combined to produce major gains in agricultural productivity. As a result, the American farming economy experienced rapid consolidation, with wage laborers and small independent producers being forced out of the agricultural sector in floods. In the state of Iowa, a mass exodus of superfluous farm laborers from rural and small-town communities soon followed, causing rural churches to close, schools to merge, and businesses to fold. In response, rural small-town elites—primarily bankers, real estate developers, insurance agents, and utilities managers—organized industrial development corporations for the purpose of attracting manufacturing firms to replace disappearing agricultural jobs. Rural boosters looked to capitalize on the flight of business corporations away from heavily unionized urban industrial areas. Indeed, many rural Iowans asserted that "deindustrialization" offered a way of stabilizing decaying local economies. As I will argue, the aggressive pursuit of rural industrialization spurred the growth of conservative politics within the American countryside. Working closely with the state's business community and industrial development experts, small-town leaders helped to construct a distinct rural conservative economic ideology that framed pro-business, anti-New Deal policies—such as right-to-work laws, low corporate taxes, and business subsidies—as a necessary evil for attaining much-needed industrial employment.

Susie Pak
The Limits of Government Regulation of Interlocking Directorates: The Social and Economic Ties of J. P. Morgan & Co., 1901-1914

This paper is a study of the U.S. federal government's attempt to regulate finance capitalism before the First World War. By using the bank of J.P. Morgan & Co. as a case study, the paper argues that the government had a very narrow understanding of the relationships that were important to the work of private bankers. Though the Morgans were resistant to government oversight in general, they were less protective of some relationships than others. A significant fact that has been overlooked is that they were willing to sacrifice formal economic ties and commitments, whose loss they privately and publicly acknowledged would not alter the ways they did business. The paper looks at the social and economic ties of the Morgan bank at three key moments in the firm's history and demonstrates that the Morgans' network, widely defined, was not organized as a homogeneous and collusive unit. I argue that the Morgan bank's network was not tied together only by its formal economic ties, such as interlocking directorships, and that the government's attempts to regulate it as primarily an economic network have failed for that reason.

Olga Pantelidou
ERMA: Automating Check Processing, or a New Business Spatial Strategy for Bank of America, 1955-1966

"ERMA" looks at the world's first commercial computer banking system as a spatial technology that brought about catalytic changes for the entire banking industry. Early in the 1960s, in the midst of a population boom in California that caused a shortage of banks and strained their ability to offer timely service, San Francisco-based Bank of America, the only bank to practice state-wide branching, introduced ERMA, Electronic Recording Machine-Accounting. ERMA was a large-scale, fully automated bookkeeping system. It replaced 2,500 Bank of America bookkeepers (mostly women) by processing checks at the whirlwind speed of 550 accounts a minute. Checks today still bear the magnetic ink character recognition (MICR) characters that were developed for this system. ERMA came at a time when the crippling workload necessitated by the bank's massive state-wide network effectively curtailed further branch growth. This technology, clothed in a slick, modern burgundy and coral metallic skin, required a unique spatial format: pairs of them were encased in nondescript ERMA Centers distributed throughout the state. They comprised a network nested between Bank of America's administration and branches. Customer information that was previously 'stored' in a personal relationship with a local banker was now available bank-wide. ERMA concentrated Bank of America's knowledge, providing invaluable data for business-building that would be prohibitively expensive to obtain by other means. It allowed the bank to once again expand service to sprouting California communities and in turn influenced the architecture of the 238 new branches. From its inception in 1902 under the name Bank of Italy, Bank of America had a confrontational relationship with banking law as it sought to overcome limits placed on its operational space; earlier episodes had led to similar spatial innovations to those developed under ERMA. The paper analyzes ERMA, the emerged network typologies, and the new branches as architectural spaces with a particular focus on how these architectures fostered internal cohesion for Bank of America and promoted relationships between the bank and the state's distinct communities. The core of the history is constructed from original archival material drawn directly from the Charles Babbage Institute, University of Minnesota Libraries, as well as other sources.

Evelyne Payen-Variéras
Federal Bonds, Railroad Finance, and the American State of the Civil War Era

This paper looks at how U.S. government subsidies fit into the entrepreneurial strategy of the group of railroad promoters who built the Central Pacific Railroad. The modern debates on the respective functions of the state and the market in the economy did not make much sense to Collis P. Huntington and his associates. They also did not endorse the old tradition of mixed enterprise. They started the construction of the road two years before receiving their first installment of federal bonds. They relied first on personal, short-term loans, and they organized construction on a step-by-step basis, so that earnings on local traffic could be reinvested in construction contracts. Local government bonds supplemented these early resources. This strategy made sense as an effort to convince both congressmen and private financiers that a small group of Gold Rush merchants were bona fide entrepreneurs and not mere dreamers or speculators. Collis P. Huntington and his associates hoped first to gain access to Civil War financiers, and then to make sure that their U.S. Treasury bonds would not compete with the corporate bonds of the Central Pacific Company. Finally, they used their successive installments of federal bonds to gain more leverage in their negotiations with their many creditors both in the East and in California. The federal bonds not only helped them turn a local road into a much larger enterprise. Issues of corporate governance were also at stake. Thanks to federal subsidies, a group of Gold Rush merchants were able to expand their operations while keeping a close-knit partnership in control of their company. With this case study, I mean to suggest that the economic policies of the Civil War era did not merely reflect the exceptional circumstances of the Civil War or the peculiar conditions that obtained in the Far West. These policies were also shaped by an ethos of independent entrepreneurship that embodied a common ground between the political supporters of the Union and their business friends both in the East and in the West. Although independent enterprise was not understood exactly in the same terms in the East and in the West, the economic policies of the early Gilded Age bolstered close-knit partnerships and spurred competition in business and finance.

Chad Pearson
Organized Employers, Strikebreaking, and Individual Rights in Progressive Era Cleveland

Cleveland's organized employers, a multi-industry coalition of forward-thinking men, successfully fought strikes and promoted the supposed soundness of the open-shop, anti-union principle throughout the Progressive Era. In this paper I explore the ways in which the city's employers' associations engaged in workplace struggles, made sense of the seemingly omnipresent labor problem, and related to public sector authorities in a city celebrated for its progressiveness. I note that Cleveland's organized employers seldom viewed labor conflicts as simply narrow workplace clashes. Rather, they saw their open-shop campaigns as part of a glorious history that championed the rights of individuals against what one union-fighter called the "dictation of others." Yet, despite their individualist beliefs, during labor struggles they demanded, and typically secured, help from prominent public sector authorities, including judges, well-known reformers like Mayor Tom L. Johnson, and police forces. As they worked to protect managers and non-unionists during labor conflicts, Cleveland's employers regularly invoked the law, believing that they were entitled to help from municipal authorities. Members of this civic-minded partnership—strikebreaking coordinators, judges, police chiefs, and politicians—believed in protecting the rights of individual workers and thus supported the open-shop principle. Together, they saw their efforts as part of a broad progressive campaign to improve workplace and community relations in Cleveland. By highlighting their efforts on behalf of "free," non-union workers, this paper, in contrast to most scholarship on the open-shop movement—which tends to highlight tensions between anti-union businessmen and urban reformers—underscores the compatibility of Progressive Era reform with the open-shop principle.

Atiba Pertilla
The Interlocking Director Question: Lobbying for Wall Street in the Taft and Wilson Administrations

This paper examines the political activities of New York City's financial institutions during the Taft and Wilson administrations with respect to proposals to curb or eliminate interlocking directorates, a social network of board memberships prevalent among financiers in New York and other major cities that was perceived as a potential threat to industrial and commercial enterprise. During a brief but important period from 1911 to 1914, financial institutions experienced a shift from a tradition of using face-to-face lobbying to accomplish their goals to coping with media relations, interest-group strategies, and the movement of intellectuals into the public square to aid in setting policy. The paper begins with an examination of the private lobbying of the Taft administration in 1911 by National City Bank (the forerunner of Citibank), continues with an examination of J. P. Morgan & Co.'s "propaganda" strategy in the money trust hearings of 1912-1913, and ends with a discussion of Louis Brandeis' role in the passage of the Clayton Act in 1914.

Benjamin L. Peterson
The Making of the Chicagoan Janitorial Class

Beginning in the 1910s, the janitors of Chicago used a combination of organizing and political power to radically improve their place in the city's political economy. Organized by the Building Service Employees International Union (BSEIU), the janitors of Chicago transformed from being what the press called little more than "serfs" to being key players in municipal and national politics However, their ability to control and improve their jobs was controversial. Many complained that unionized janitors had unfairly used their political influence to glorify their humble jobs. To combat this the union deployed a rhetoric of professionalism that, while not entirely successful at quelling criticism, reshaped the self-perceptions of the city's building service workers.

Jason Petrulis
Selling Goodwill Overseas: How America Became a Brand in 1948

In 1950, the director of the U.S. Chamber of Commerce declared that America's trademarks "were the best ambassadors of good will for our way of life." In this paper I examine how the U.S. government actually put this dictum into practice in the early Cold War, creating a corporate-style logo for the Marshall Plan and deploying the Sears, Roebuck catalog as an overseas agent of American capitalism. I suggest that by 1948, American marketers inside and outside government worried that they were losing the "war of ideas" against the Communists, and that their response was to jettison heavy-handed capitalist propaganda in favor of a soft-sell approach in which U.S. products and brands "sold" the American system. That is, instead of selling ideas the same way they sold products, American marketers used products to sell ideas. Moreover, as these marketers learned how to create "America the brand," they also laid important groundwork for a broader shift toward brand-image advertising in the 1950s.

Talia Pfefferman
Nationalism, Entrepreneurship, and Gender in Palestine and Israel, 1930-1950

The paper addresses womens' entrepreneurship within a nation-building process. Focusing on British Mandate Palestine during the first half of the twentieth century as an economic frontier, it claims that the British government's non-interventionist economic policy maintained a market with little economic legislation, whereas the nascent local economy set low financial entry barriers to entrepreneurship. As a result, women wishing to enter into economic entrepreneurship met myriad opportunities. After the founding of the Israeli state in 1948, the interventionist economic policy of the state promoted private entrepreneurship to suit national priorities, which favored large-scale enterprises. In addition, because of gender role stereotypes, women were limited in their ability to raise capital through banks. These barriers resulted in a situation where women entrepreneurs were marginalized into small-scale enterprises located mainly in the service sector. Their share among proprietors dropped from 4% to under 2%. The economic frontier became a borderline. This process demonstrates the dependency between individual actions and state policy as far as womens' economic entrepreneurship is concerned.

Laura D. Phillips
The Fair Trade Experiment in California: Edna Gleason and the Druggists' Campaign, 1929-1933

An unlikely leader in the California fair trade movement, Edna Gleason, known as the "Mother of Fair Trade," exemplified the dual appeal of woman as citizen-consumer and business person as protector of the public interest. A self-taught pharmacist and entrepreneur, Gleason led first local, then regional, and finally national efforts to protect retail proprietors from aggressive price-cutting by chain store competitors. For Gleason and her fellow trade association members, fair trade entailed association management of trade practices, including service guarantees, quality controls, cost accounting methods, and price scheduling between manufacturer and retailer. She spearheaded the California campaign for fair trade legislation that exempted proprietors from antitrust prosecution when contractually seeking these goals. Ultimately, the California fair trade movement exercised a decisive influence on the national political economy. As it succeeded in protecting proprietary capitalists and stabilizing retail prices in the drug industry, similar goals pursued by the National Recovery Administration were axed by the Supreme Court, making room for new legislation to stabilize the economy. While the conventional history of trade association regulation dismisses these efforts as rent-seeking or doomed to collective action failure, this paper recovers a viable alternative vision of American capitalism.

Gautham Rao
The State of the Market: Commerce and the Transformation of Federal Governance in the Early American Republic

This paper uncovers a transformation in the way the federal government collected customs revenue in the early republic. In the Federalist and Jeffersonian era, the U.S. Treasuy, fearful of alienating the nation's source of revenue, urged local customs officials to accommodate the merchant elite. In the Jacksonian era, however, commercial scandals such as financial panics rendered merchant capital an increasingly untrustworthy source of government vitality. The Jacksonians thus centralized control over collection of duties.

Scott Redenius
The Origins of the U.S. Unit Banking System: A New Look at the Restrictions Imposed on Antebellum Branch Banking

Unit banking was the norm in the United States until well into the twentieth century. Even in the antebellum period, before federal restrictions limited branching, there was little interest in branching, at least in the Northeast, and operating branch bank networks posed serious challenges. The antebellum branch banking networks formed in a number of Western and Southern states during the antebellum period appear to be an important exception. This paper examines branch bank charters in order to address the following questions: What did it mean for a bank to have a "branch" under these systems? Why were these banks organized as branch banks? And what role did the state play in determining their structure? The banks in the West and some of the Border States had hybrid structures that combined features of unit and branch banking. One factor in the use of this organizational form appears to have been a desire to expand access to credit facilities.

Mary Tone Rodgers
Did the 1906 Armstrong Regulation Promote Separation of Ownership and Control in American Corporate Governance?

I examine how a state intrusion into the business practices of investment banking underwriting syndicates created conditions that promoted the separation of ownership and control in corporate governance. Insurance companies were expelled from syndicate participation by the New York state legislature in 1906. To fill the void left by the insurers, I test whether J. P. Morgan & Co. responded with a business process innovation that distributed securities directly to widely dispersed retail investors. With a logistic regression model, I find that retail offering circulars emerge as the innovation that improved access for individual investors to direct ownership of stocks and bonds, after controlling for the growth in aggregate national savings and new issue size. But why might investors take advantage of increased access to new security offerings? I suggest the motivation was to improve the efficiency of their portfolio holdings. I find that higher Sharpe ratios for individual portfolios accompany a reallocation of savings from indirect ownership of stocks and bonds through insurance policies to direct ownership of stocks and bonds.

Chantel Rodriguez
Debating the Health Rights of Mexican Citizens Employed by the Pullman Company, 1920s-1930s

A leader in early twentieth-century business, the Pullman Company expanded its sleeping car operations into Mexico in 1920 with the conclusion of the Mexican Revolution. This expansion made Pullman a business that crossed political borders, not only physically, but also in its reliance on foreign workers. Pullman's transnational operations raised several questions including the role jurisdiction played in the filing of compensation claims and the role that Pullman itself would play in affecting the practice of Mexican labor law. These questions resulted in accountability debates over compensation claims and the health rights of Mexican workers. The objective of this paper is to examine these accountability debates, tracing how American business practices gave meaning to health as a crucial component of Mexican citizenship. While historians have highlighted the importance of Pullman's business practices to U.S. labor history, they have yet to examine either the experiences of Mexican nationals employed by the Pullman Company or the effect Pullman's expansion into Mexico had on U.S.-Mexico labor relations, specifically the transnational regulation of health. I argue that Pullman's participation in these debates shaped both the practice of Mexican labor law and the emerging meanings of Mexican citizenship.

Neil Rollings
Networking between Businessmen and Government Officials in Post-War Britain

This paper explores the role played by two previously unstudied forums where leading British business people and top civil servants came together. Both came into existence in the early 1960s and still existed, with hardly any changes in format, over thirty years later. One consisted of an annual weekend conference for about 30 individuals, the other a course for about 20-25 individuals, lasting for two weeks for slightly more junior high fliers. Both business leaders and elite civil servants attached considerable importance to these meetings, and found them valuable as a means of knowledge transfer to improve mutual understanding and as a way of building and sustaining social networks. Since these meetings were kept private and trade unionists were excluded, they offered a means of access to permanent civil servants that was unavailable to labor. Equally, there is circumstantial evidence to suggest that these links might have helped civil servants to get directorships when they retired from the civil service. While all of this points to insider status for top businessmen, we need to be careful not to overplay this. Both at the beginning and at the end of the period, businessmen pointed to the value of these meetings because British society was so compartmentalized.

Gabriel Rosenberg
The Programa Interamericano para La Juventud Rural and the Cultivation of Agribusiness and U.S. Hegemony in Cold War Latin America

This paper examines the Programa Interamericano para la Juventud Rural (PIJR), a rural development agency financed by Nelson Rockefeller's American International Association, the Kellogg Foundation, and the U.S.-based National 4-H Foundation. The PIJR served as an umbrella organization for Latin American 4-H clubs, coordinating clubs in nineteen Latin American countries that enrolled over 250,000 members by 1967. PIJR development technicians promised that 4-H would educate rural Latin American youth about modern farming practices, technologies, and finance without "political overtones." Yet these depoliticized development discourses obscured intensifying relationships between rural youth and the cluster of interests who financed their work: the U.S. state, banks, and agricultural technology firms. The PIJR's strategy of "development from within" imagined rural youth as mediums for radical socioeconomic change and anti-radical politics. This strategy promised to mediate a thorny set of relations: agribusinesses premised on capitalist enterprise and statist technocracy; democracies built on liberal tolerance and violent anti-communism; and an international order structured by the equality of nations and U.S. interventionism. Development technicians argued that the unique "pliability" of rural youth absolved these contradictions, erased cultural difference, and cultivated a Latin American countryside whose educated citizen-farmers labored in alliance with international capital and U.S.-led statist expertise.

Anthony Ross
Forging a "New Era in Home Finance": Pat Brown, California Mortgage Bankers, and the Remaking of the U.S. Housing Market

Histories of the 2008 housing crisis and mortgage securitization often begin on Wall Street in the late 1970s and early 1980s. In fact, the history of mortgage securitization can be traced back to 1966, when a crisis in the California mortgage market threatened the promise of unlimited economic growth in the state, a promise central to the growth liberalism championed by Gov. Pat Brown. In early 1966, on the eve of Gov. Brown's reelection campaign against Ronald Reagan, rising interest rates on Certificates of Deposit (CDs) and financial securities drew capital away from the S&L savings accounts that financed most mortgages in the state. Instead of supporting efforts to further strengthen government interest rate ceilings in order to protect the mortgage market from competition with securities markets, the Brown administration, in conjunction with a group of California mortgage bankers, advanced plans to sell mortgages to institutional investors, particularly pension funds. By pooling mortgages together and selling shares of these pools, the state's mortgage industry could, according to the Brown administration, tap the resources of institutional investors that lacked knowledge of local real estate markets. The administration's effort would help lay the groundwork for "a new era in home finance."

Thomas Scheiding
The Incubation of Patronage in Interwar America

When discussing the research environment in the first half of the twentieth century, a dominant theme is that the wars were transformational events that altered the trajectory of research management and funding. The transformational effect of the wars is undermined, though, when one considers that during the interwar period in the areas of medicine and agriculture the Chemical Foundation encouraged and shaped the research infrastructure. Rather than the wars altering the trajectories of research management and funding in medicine and agriculture, the wars were events that accelerated changes initiated by the Chemical Foundation during the interwar period. What was needed during the interwar period was a quasi-identity research patron with a motivation driven by both a profit motive and the public good. In this paper I investigate the way in which the Chemical Foundation as a quasi-identity patron provided financial and organizational assistance that was designed to incubate and coordinate research patronage in medicine and agriculture. This incubation role is important to highlight because it demonstrates the lasting influence that the Chemical Foundation had on the financing and organizing of research.

Benjamin Schwantes
Strange Bedfellows: Federal Reformers, Organized Labor, Railroad Managers, and Technological Change in Progressive-Era America

In this paper I examine the role that political-economic forces played in prompting managerial and technological change within the railroad industry in the early twentieth century. The Progressive Era witnessed a flurry of federal regulations aimed at making railroad operations safer for the traveling public and railroad employees. In 1906, Congress introduced the Hours of Service Act (HOSA), which capped the number of hours that operational employees could work in a 24-hour period. Railroad officials complained that the bill would undermine the sophisticated telegraphic train dispatching systems implemented by the industry in the late nineteenth century. The passage of the HOSA in 1907 created a difficult situation for railroad managers. Hemmed in by federal regulators and organized labor, officials decided to implement a radical technological innovation that they had resisted for more than three decades, the telephone. The events surrounding the HOSA's passage and implementation highlight the complex relationship between the state and American business during the Progressive Era. The HOSA was supposed to benefit railroad employees, but the outcome of the regulatory battle among the government, organized labor, and railroad management ultimately transformed the rail industry to the detriment of organized labor.

Peter Scott
Patents, Antitrust, and the Evolution of the Early British and American Radio Equipment Industries

The British and American radio manufacturing industries developed on the basis of strong national patent monopolies, held by Marconi and RCA. Revenue maximization constituted a special case of a situation analyzed in the vertical integration literature, where a monopolist supplying an intermediate product faces a potentially competitive market of assemblers that can use it in variable proportions with competitively priced inputs. Marconi avoided substitution by bundling its royalties into a general license. Meanwhile RCA initially chose integration, aiming to market all domestic radios (produced for it by General Electric and Westinghouse). Strong anti-trust pressures soon compelled RCA to license its patents, based on a fixed percentage of wholesale receiver prices. Marconi faced no such pressures and maintained its fixed charge per tube system—progressively raising royalty/total cost ratios and stimulating innovation around the patent by tube manufacturers who developed multi-functional tubes. These were less cost-effective than the simpler, more interchangeable, U.S. tubes, but lowered royalty payments and, thus, assemblers' overall costs. British set design was thus biased toward a high-cost path, preventing the introduction of low-cost 'midget' radios, which formed the basis of the continued prosperity of the U.S. industry following market saturation in the early 1930s.

Mark Seddon
Incorporating the Corporate: Anglo-U.S. Oil Diplomacy during the Second World War

Britain and the United States were allies in the Second World War and collaborated militarily to unprecedented levels. However, the politics of international oil were still able to create conflict between the two governments. Both British and U.S. policy-makers sought the support of private enterprise in order to protect their wartime, and postwar, access to overseas sources of oil. Conflicting oil policies created tension within Anglo-U.S. relations, which was exacerbated as both governments sought to gain the support of privately owned oil companies. An appreciation of the role played by multinational oil companies within Anglo-U.S. relations will go some way to furthering discussion on the mechanics of foreign relations. This paper expands our understanding of the methods used by states to exercise power by analyzing British and U.S. intervention in the international oil industry during the Second World War.

Dana Stefanelli
Federal Capital Building: Construction Financing in Washington City, 1790-1802

In this paper I examine the early U.S. government's role in economic development by studying the founding and construction of Washington, D.C. Building the Potomac seat of government posed significant challenges for federal leaders. America's economic circumstances—diffuse capital, costly labor, and poor transportation—made federal funding critical to the project's success, but political opposition blocked Congressional financial support. In order to circumvent these obstacles, federal officials partnered with state governments, landowners, and merchants to raise private capital via land sales to construct the public buildings. Several wealthy speculators purchased city lots, and local moneymen invested heavily in the city and its real estate market both individually and through the Bank of Columbia, but sales ultimately failed to cover costs. In the wake of this shortfall, the web of obligations and influence created by the financing plan convinced Congress to guarantee Federal City borrowing. By underwriting investment risk to mobilize capital for internal improvement, Congress set a precedent that defined the federal government's role in economic development.

Sara Stevens
Professionalization Meets Public Policy: How the Urban Land Institute Shaped Urban Renewal

Established in 1940 by a group of real estate developers from the National Association of Real Estate Boards, the Urban Land Institute (ULI) was conceived as a non-profit organization offering expert advice to an industry too ad-hoc in its operations. Its founders were mostly builders of suburban single-family residential neighborhoods, and its publications disseminated to a broader public the lessons learned in the suburbs. These suburban patterns, codified as recommendations from the experts of the ULI, later appeared in urban renewal projects from Pittsburgh to San Francisco. Documents from the archives of its parent organization, the National Association of Real Estate Boards, and the individual founders, as well as the group's publications form the basis of this paper. This research is part of a growing body of work on professionalization and on the history of real estate development. Studying the history of a professional organization like the ULI not only illuminate the business of building American cities, but also open an avenue for interacting with larger questions of policy and professionalization.

Espen Storli
When Business Systems Collide: Alcoa and the International Aluminum Cartel in the Interwar Period

The antitrust case against Alcoa is one of the classic lawsuits in American history. Known as the largest proceeding in the history of Anglo-American law, it also supplied a landmark decision that changed the whole focus of the U.S. antitrust laws for decades. One of the key issues in the case was whether or not the company had conspired with the international aluminum cartel to control the U.S. market in the interwar period. Alcoa was exonerated in the courts, but later literature argued that the company probably had indeed systematically and illegally conspired with the cartel. However, just like the prosecutors, this literature is based on hearsay testimony. This paper is based on access to source material created by the European participants in the interwar cartel, and it attempts to get closer to answering the question about the relationship between the American aluminum producer and its European counterparts in the interwar period. In addition, the article makes a first attempt to compare Alcoa's relations with international cartels with the policies that other large U.S. multinationals pursued in relation to foreign competitors in the period. This discussion is inspired by the "varieties of capitalism" literature.

David Suisman
The Great Boomdoggle: Sonic Booms and the Fight against the American SST Program

After the United States government had invested hundreds of millions of dollars to develop a supersonic transport (SST), the program was killed in Congress in 1971. In this paper I analyze the David-versus-Goliath opposition movement which, against all odds, won. The key to this victory, I argue, was aviation's most conspicuous and unwanted side effect: the powerful, frightening shock waves known as sonic booms. Based on archival sources, government reports, and personal interviews with activists, the paper will argue that opposition to the SST evolved through three distinct phases: from the early 1960s until 1966, revolving largely around the work of one man, Bo Lundberg; circa 1966-1970, driven by Harvard physicist William Shurcliff and his Citizens League Against the Boom; and the final public and Congressional showdown, circa 1970-1971, directed by the Coalition Against the SST. The defeat of the SST, I conclude, was a milestone in the history of technology assessment and a landmark triumph in the emergent environmental movement.

Peter Sutton
Mechanizing the Mail: Technological Change and Industrial Relations in the Post-War British Post Office

After the Second World War the British Post Office initiated a long-term project aimed at replacing manual sorting with a mechanized system based on sorting machines and postcodes. This culminated in the "Letter Post Plan," drawn up in 1969, which proposed a radical reshaping of the postal network around a new breed of mechanized sorting offices. The implementation of the plan was severely disrupted following a national postal strike in 1971 and the subsequent withdrawal of union cooperation, and has been strongly criticised as a result. However, new evidence suggests that such criticisms mischaracterize the Post Office's record of managing technological change. In this paper some of the key developments of the British effort to mechanize the mail are summarized, and special emphasis is placed on the political dimensions of research and development and how industrial relations considerations influenced the Post Office's planning process. The paper concludes that the planning was characterized by a corporate approach that led to technically accomplished and politically constructive outcomes, and that the highly publicized disputes over the new technology were due more to external socioeconomic forces than to internal mismanagement.

Ellis W. Tallman
Banking and Financial Crises in United States History: What Guidance Can History Offer Policymakers?

In this paper I assess the validity of comparisons between the recent financial crisis and past crises in the United States. Aspects of two National Banking Era crises (the Panic of 1873 and the Panic of 1907) appear relevant for comparison with the Panic of 2008. In 1873, over-investment in railroad debt and the default of railroad companies on that debt led to the failure of numerous brokerage houses, precursor to the modern investment bank. During the Panic of 1907, panic-related deposit withdrawals centered on the less regulated trust companies, which had only indirect access to the existing lender of last resort, similar to investment banks in 2008. I argue that references to the banking crises of the Great Depression are less relevant comparisons to the recent crisis. The previous banking crises in U.S. history reflected widespread depositor withdrawals, whereas the recent panic arose from counterparty solvency fears and extensive counterparty exposures among large complex financial intermediaries. In historical incidents, monitoring counterparty exposures was standard banking practice and the exposures were smaller. From this perspective, the lessons from the past appear less directly relevant for the current crisis.

Philip Thai
Law, State-Building, and the War on Smuggling in Coastal China, 1927-1937

This paper examines the relationship between state-building and the policing of trade in China during the Nanjing Decade (1927-1937) through the Nationalists' war on smuggling. Recovery of tariff autonomy and the introduction of protective duties during the 1930s provided the Nationalists critical financial resources to construct a modern state. It also, however, created a veritable smuggling epidemic that threatened both government revenue and public order. To combat smuggling, the Nationalists responded with an aggressive expansion of its administrative, technical, and legal infrastructure without precedence in Chinese history. Using legal cases and codes, customs archives, and popular press reports, I examine one important dimension of this war on smuggling: the legal context that defined the crime of "smuggling" and governed the treatment of merchants and other individuals. I show how the fight against smuggling was intimately tied to the Nationalists' project of state-building through the extension of central-level authority and assertion of sovereignty—despite the uneven progress, intense resistance, and unintended consequences it produced. Finally, I consider how smuggling could be viewed as another form of entrepreneurship with its own logic, organization, and calculus of profit.

Ross Thomson
The Government and Innovation in the United States: Insights from Major Innovators
    [Paper]

The role of the U.S. government in forming innovative capabilities, at least prior to World War II, is often understated. Building on recent insights into the government's role in interchangeable parts, biological, and mineral innovation, this essay maintains that from 1820 through 1929, federal, state, and local governments developed means to acquire and spread technological knowledge that shaped technologies across wide ranges of the economy. I study biographies of 1,123 major innovators; by selecting not only inventors but also engineers and agriculturalists, I am able to identify a wider range of innovations. Governments proved significant through two mechanisms. A quarter of the innovators learned in government-funded colleges, and over half learned from government employment and contracting in ways that shaped their innovations. Both forms of learning increased over time. Government learning was more prevalent among biological, construction, transportation, and mining technologies than among mechanical technologies. Types of innovation with the greatest government impact had low patenting rates but high publication rates. The publications and employment of innovators, in turn, strengthened government-funded colleges and agencies.

Steven Tolliday
Crumbling Dream: Japan's Nuclear Quest, 1954-2011
   [Paper]

On the eve of the earthquake and tsunami of March 11, 2011, Japan was producing nearly 30 percent of its electricity from fifty-four nuclear reactors and planning to double this share by building a further fourteen new reactors in the next twenty years. One year later, not a single Japanese reactor was still in commercial operation, and at least twelve of them will never reopen. The nuclear dream had crumbled. This article considers why the Japanese nuclear power industry was so cherished and so vulnerable. Why did Japan place its bets so heavily on a nuclear future and then not watch over them better than it did? This is a massive topic, but the article begins to sketch out some key factors, considering in turn the role of business-government relations; corporate structures and governance; and the problems of Japanese energy security in a changing international political and economic order.

Heidi J.S. Tworek
Tuning in to the State: The Supply of Economic News in Weimar Germany

This paper investigates how the German government used newly emergent wireless technology to tie traditionally anti-democratic big business to the new democratic Weimar state. In 1920, the German Foreign Office founded a news agency to supply stock exchange news through wireless to the biggest German companies. Called Eildienst, the company followed a business model of pricing others out of the market through use of expensive wireless equipment. The German government hoped that Eildienst would tie businesses to the state by reviving the German export economy and stabilizing inflation. The service spread swiftly outside Germany, and by the mid-1920s it constituted the major supplier of economic news to Austria, Eastern Europe, and the Baltic states. While historians have often thought that new technology makes news more accessible, Eildienst shows how the Weimar government used wireless to create an exclusive core of big business support and to attempt to promote German trade in Central and Eastern Europe. In sum, this paper demonstrates how wireless news formed a vital element of the political economy of the Weimar state, allowing it to disseminate different types of news to different target audiences and to influence business knowledge in a manner hitherto unexplored.

Osamu Uda
IBM Japan as the Double-Faced Agent

How a subsidiary in a particular country develops basically depends on the charter-agreement between its parent company and its subsidiary and the capability of its subsidiary. However, we can also see the reality of interplay between these two factors and other exogenous factors—for example, regulatory procedures and business practices in particular countries. The interplay creates the new contexts surrounding subsidiaries dynamically. At times, it might bring about deregulation. In this paper, mainly dealing with the development project of the "Tokyo Olympic System" by IBM Japan, we explore how the project led to deregulation of data communications in Japan, as well as the accumulation of technology in IBM. IBM headquarters went ahead with the project for letting people know the application of data communications to their society. IBM Japan faced legal problems under telecommunications regulations, which prohibited the connection of its own computers with public communications lines. However, IBM Japan got concessions that allowed connecting its computer with public lines temporarily from the Japanese government in the name of the international event. As a result, Japanese companies recognized data communications as useful in their businesses and began to lobby for deregulation of data communications. Therefore, the public communications act was revised at 1971, enhancing telecommunications deregulation in Japan.

Sean H. Vanatta
"Should I Stay or Should I Go?" Federalism and Banking Mobility in America's Age of Finance

In March 1980, Citibank announced that it would relocate its credit card operation from New York to the more favorable regulatory environment of Sioux Falls, South Dakota, eventually sparking a wave of bank relocations that effectively nullified state usury regulation across the country. South Dakota benefited from the influx of a new industry, but the process of transforming South Dakota into the frontier of modern banking was a difficult and contested one, and continued to be so over the next several decades. Relying on records from the Sioux Falls Chamber of Commerce, the South Dakota Bankers Association, and the South Dakota State Archives, this paper will explore the efforts of South Dakota's bankers and politicians to reap the benefits of the expanding financial services sector while using formal and informal regulatory channels to preserve their local spheres of economic and political authority. Yet the political structures that allowed Citi and other banks to move easily to South Dakota also enabled them to move from there, and by placing the story within the broader context of federalism, the paper will show that the threat of the industry's further relocation ultimately helped invert the power structures South Dakotans hoped to preserve.

Michael Wagner
Managing to Compete: The Hudson's Bay, Levant, and Russia Companies, 1714- 1763
   [Paper]

The experience of the Hudson's Bay, Levant, and Russia companies during the period 1714-1763 has been overlooked but can provide valuable insight into the challenges faced by British merchants, as well as into the relationship between business and the British state. The French were formidable competitors, and British manufactured goods did not offer the companies a competitive advantage. However, the companies were able to call on support from a range of sources, which crucially included the government, and they skillfully used the parliamentary process to counter a popular prejudice against companies.

Ellen Wald
A Cooperative Venture: Aramco and the U.S. Government in the Desert Frontier, 1950-1955

During World War II sufficient supplies of, and reliable access to, foreign sources of oil became a strategic necessity for the United States. By the war's end the government feared domestic oil production would soon be inadequate to meet the nation's new military and economic demands. American petroleum companies operating overseas provided the means to make up this shortfall. This paper examines State Department collaboration with the Arabian American Oil Company (Aramco) to secure the U.S. uninterrupted access to oil in the early 1950s. I argue that the two sides developed a relationship of "mutual insurance" in which, rather than exploiting each other, the government and the oil company acted as an insurer of the other's risk. This connection developed based not on exploitation, quid pro quo, or campaign contributions but instead grew organically based on aims shared by both the State Department pursuing American security interests and the oil company seeking profit. The paper examines three instances of conflict between Saudi Arabia and Aramco in which the State Department became involved to demonstrate the relationship's evolution and practice: contract renegotiations between Aramco and the Saudis, a clash over corporate restructuring, and negotiations between Aramco and the Saudis over oil prices.

Luman Wang
The Contingent Business Relationship That Soured: Shanxi Piaohao and the Qing Dynasty, 1850s-1911

Shanxi piaohao (remittance firms) originated from a hinterland province, yet conducted enormous interregional remittance transactions for big merchants and the central and provincial governments of the Qing dynasty in both coastal and hinterland regions, from the 1820s to the 1910s. My study of piaohao contributes a distinct case study to the interaction between the central state and Chinese merchants in late imperial China. The piaohaos' unique interaction with the Qing dynasty—serving without being regulated—was possible only when the empire required less financial sovereignty. After the Qing transformed into a modern nation-state at the turn of the twentieth century, however, piaohao could no longer maintain their semi-public, semi-private financial status while still serving the state without being supervised. Historians have either focused on the self-interested and volatile policies of the Qing dynasty toward merchants, and hence the danger of over-dependence on the government, such as the grain merchants in the eighteenth century, and the Tianjin salt merchants during the eighteenth to the early twentieth century; or on the self-made merchants who could achieve production and technological breakthroughs without getting involved with the government, such as the salt producers from Sichuan province in the late nineteenth century. In contrast, Shanxi piaohao distinguished from all of the aforementioned cases by standing midway between overreliance on and independence from the Qing. Different from the Tianjin salt merchants who could not gain profits without the government, piaohao accumulated the initial financial capital and established interregional financial networks through overland trading activities. Furthermore, they not only turned down the financial offers of the state, but also rejected the state's financial regulation at the turn of the twentieth century. Nevertheless, unlike the salt producers in Sichuan described by Madeleine Zelin, piaohao would not have risen to national prominence if they had not provided remittance services for the Qing government.

Heike Wieters
Of Heart-Felt Charity and Billion-Dollar Enterprise: Charitable Non-Profit Enterprises and the State: The Case of CARE, Inc.

With this case study, deeper insights into reasons and driving forces for the extraordinary growth of private agencies into important players in international humanitarian relief are sought. While of course taking into account broad trends in international history as well as cooperation and competition with other organizations—both private and governmental—the paper also concentrates on the mindsets of private experts as well as the inner organizational imperatives and certain path dependencies leading to accelerated organizational growth and thus to an increasingly strong stand in the international sector of overseas relief. The paper will scrutinize three entangled aspects—entrepreneurial ambition aimed at expanding the enterprise, the installation of strategic partnerships, and a strong focus on competition and innovation—that fostered the development and growth of the New York-based nonprofit agency CARE, Inc., into one of the most significant international humanitarian NGOs in the world. It looks at NGO growth from a perspective that adopts the assumption that "nonprofits are really not that different from all other organizations"—meaning that the structure and impact of these players can be analyzed using tools from general organizational theory and business history.

David F. Winkler
The Construction of USS Atlanta and the Navy Seizure of Federal Shipbuilding

In this paper I look at the construction of the light cruiser USS Atlanta (CL 51) at the U.S. Steel-owned Federal Shipbuilding and Dry Docking Company at Kearny, New Jersey, during a period of management-labor strife that led to the Navy's seizing and operating the shipyard. Following her commissioning at the Brooklyn Navy Yard in late December 1941, this warship would join the Pacific Fleet in time for the Battle of Midway. U.S. Steel vigorously opposed the unionization of its workers, but conditions at Kearny enabled the Industrial Union of Marine and Shipbuilding Workers of America (IUMSWA) to gain the support of a bullied and disgruntled workforce. By February 1937, the union organization effort successfully elected IUMSWA representatives to fill company "union" positions. The new officers dissolved the company "union" and recognized IUMSWA Local 16 as the organization representing workers at Federal Shipbuilding. Thus began a period of strained relations between labor and Federal Shipbuilding president Lynn H. Korndoff; during this timeframe, in April 1939, Federal Shipbuilding was awarded the contract to build Atlanta and her sister ship Juneau. With war breaking out in Europe in September 1939, Local 16 pledged to refrain from strikes for two years, but pursued its demand to establish the yard as a closed shop. The union had an ally in the government's Defense Mediation Board, which recommended the implementation of a modified union shop. With this backing, in the summer of 1941, with Atlanta being readied for launch, workers marched out on strike. Eventually, the Federal Government reacted by seizing the yard. Rear Admiral Harold G. Bowen replaced Korndoff and implemented "Navy management." With the Navy in charge, the union ended their picket lines and went back to work alongside Navy sailors who were arriving at Federal Shipbuilding as part of the pre-commissioning crew. Bowen sidestepped the issue of implementing a closed shop. While the Defense Mediation Board investigated Bowen for not enforcing its ruling, Bowen explained he would not do so unless directed by the president or Navy secretary. Instead, Bowen moved to dramatically improve safety conditions, and spent dawn to dusk walking around the yard, earning the respect and trust of the workers. Following the Japanese attack on Pearl Harbor, with the union committed to increase production to support the war effort, Rear Adm. Bowen saw the opportunity to transfer the shipyard back to the private sector. On January 5, 1942, President Roosevelt signed an order to relinquish control of Federal Shipbuilding.

Peter Wissoker
"Our success depends upon your able performance": Connecticut General Life Insurance Co., James Rouse, and the Character of the Institutions That Financed Metropolitan Growth, 1945-1970

Financial institutions have long played a key role in providing the capital that fuels the development of metropolitan areas. Yet we know little about the financing process or how decision-making works within institutions that provide capital. Drawing primarily on thirty-five years of periodic correspondence between the Connecticut General Life Insurance Company and companies operated by early mall pioneer James W. Rouse, this paper aims to draw out the nuances of the lender-lendee relationship, an understanding of which is fundamental to beginning to see how particular sources of financing shape the resultant built environment. The relationship between these firms began in the 1940s when Moss-Rouse Company, a relatively new mortgage broker, served as the Baltimore agent for Connecticut General. In the 1950s, the Hartford-based life insurer funded Rouse's first malls, and in the 1960s Connecticut General loaned Rouse half the money he needed to build a model city at Columbia, Md.; they also worked together to promote Rouse's views on what makes cities and suburbs work. For more than thirty-five years, the two firms traded insights into real estate markets and expertise in loan evaluation, all the while debating the terms and conditions that shaped the financial arrangements that bound them together.

Adam Wolkoff
Every Man His Own Avenger: Distress, Debt, and Landlord-Tenant Law in the Nineteenth Century

Landlord-tenant law was integral to credit relations in the nineteenth- and early twentieth-century United States. Through the common law or statutory "distress" remedy, landlords could seize personal property located on their tenants' premises without a court order to satisfy a rent default. By understanding how distress operated, historians can gain new insight into urban and rural development, the growth of credit markets and bankruptcy rules. Indeed, the role of the crop lien in the postbellum South is well known, but few historians link its development to the struggle for priority among landlords, tenants, and third parties in Northern residential and commercial leases. In these battles, opponents of distress cried foul, claiming that the remedy allowed "a landlord to be his own avenger." Using legal treatises, case law, and newspapers, I find this characterization to be an exaggeration in the North, but representative of everyday practice on Jim Crow-era farms and plantations.

Robert E. Wright
Early U.S. Business Corporations as Republics

Early U.S. business corporations were numerous. Over 22,000 were chartered by special acts of incorporation between 1790 and 1860 and some thousands more formed in the last few decades of the antebellum period under general incorporation laws. Total authorized capitalization was on the order of $4.5 billion. Ultimately, about 131,000 entrepreneurs chose the corporate over other business forms, and at least several hundred thousand investors purchased corporate equities and bonds instead of other assets. They did so, I argue in my forthcoming book, Corporation Nation: Rise and Demise of the American Economic Juggernaut, because early U.S. corporations were, for the most part, well-governed republics, not "democracies" as some scholars have suggested. Republics contain numerous checks against rent-seeking and self-dealing, not just voting rights. This brief roundtable paper describes some of those early checks and their eventual abandonment.

Julia Yongue
The Establishment of Sanofi Pasteur Japon: Overcoming Japanese Entry Barriers in a New Era of Globalization for the Vaccine Industry

This paper will examine the impact of regulatory policy on the growth, innovative capabilities, and globalization strategies of the vaccine industry over two phases: the late 1960s to the early 1980s and the mid-1980s to the present. The mid-1980s marked a watershed for the vaccine industry. With the exodus of half the vaccine producers in the United States during the first phase, public health policy-makers began to consider measures to ensure vaccine supply while also making vaccine development and production more attractive to corporate investment. Conversely, the withdrawal of American manufacturers provided an opportunity to the French vaccine industry to expand globally and develop new products. The purpose of this paper will be to provide an overview of the major trends in vaccine production, while focusing specifically on the French industry's expansion into a new market, Japan, where policy also had a marked impact on domestic production. Non-tariff barriers in the form of higher quality standards caused delays in the launch of one of the French industry's most novel products, the ACTHib vaccine. Despite these obstacles, the French did succeed, and since then, the Japanese government's stance toward the vaccine industry and vaccination has evolved considerably. The implications of the launch of ACTHib in Japan are important to governments, because this case illustrates the significance of policy choices on the competitiveness of industries as well as on their capacity to innovate.

Naci Yorulmaz
War Business and the State: German Arms Companies and Germany's "Foreign Economic Policy" toward the Ottoman Empire, 1880-1914

The arms trade had a decisive impact in stimulating and strengthening the German political, economic, and military-based expansionist foreign policy toward the Ottoman Empire in the late nineteenth century. The interrelationships among political, financial, and military players would be simultaneously realized during the finalization of an armaments contract. In the hands of Germany, as the exporting country, arms sales proved to be a "multi-purpose tool" to be used in both domestic socio-economic policy and foreign economic policy. Therefore, from the outset, the German state apparatus openly and strongly supported the German armament firms' marketing and sales operations in the Ottoman military market. German Chancellor Otto von Bismarck, who did not initially support the German interests in Ottoman railroad construction, did, however, give full patronage to the arms makers' efforts in the Ottoman market. Kaiser Wilhelm II, who was the Krupp family's personal friend, strongly believed the arms trade was an inseparable part of the bilateral relations between the Ottoman Empire and Germany. The multidimensional impact of obtaining a foreign military contract was well known and well understood by the German state apparatus. Based on this awareness, the German state did not hesitate to support publicly both the domestic and international operations of the armament firms. Over the course of time it had been noticed by the German policy makers that Germany's aggressive expansionist strategy could utilize the German arms makers' successful international business as an influential tool to penetrate the foreign state's decision-makers' circle and also by extension to gain a controlling position within foreign military markets. In the paper, which is based on multinational archival research, I argue that arms export was regarded by the German state as one of the key steps to achieve successful penetration of the countries where the state had political, economic, and strategic interests. As a consequence of that approach, the paper indicates the collaboration that existed between the German arms companies and the German state.