James J. Hill and the First Energy Revolution: A Study in Entrepreneurship, 1865–1878

Abstract

Led by James J. Hill, a group of businessmen expanded the use of coal as a fuel in the Northwest by monopolizing the market, apportioning the business among a limited number of people, maintaining prices, profit margins, and profit flow, thereby establishing a reputation of dependability for the fuel and a source of risk capital for further investment in the industry. This, Professor Martin argues, was a clear case of “constructive monopoly.”