ABSTRACT
In this chapter, the authors introduces of heavily interlocked directors as finance capitalists into the evolution of corporate control requires that some consideration be given to their influence on the development of large companies. They argue that this influence essentially involved establishing a series of formal relationships with other large companies to create a basis for harmony and commonality. The authors examine the transfer of control of large companies from finance capitalists to managers. Owners control corporations in a policy sense when they invoke their legal rights and select directors who choose managers to operate the company consistent with the owners' desires. Instead, control of their various companies passed, mostly by default, to subordinates who had been retained to manage particular companies. While financial control disintegrated into managerial control at the level of the individual firm, the intercorporate network established by the finance capitalists persisted.
