45-397: The Computing-Tabulating-Recording Company ( CTR ) was a holding company of manufacturers of record-keeping and measuring systems; it was subsequently known as IBM . In 1911, the financier and noted trust organizer Charles R. Flint , called the "Father of Trusts", amalgamated (via stock acquisition) four companies: Bundy Manufacturing Company , International Time Recording Company,
90-446: A leading financier, for assistance in finding a similar job. Despite his apparently perilous situation, he was still very clear about the type of job he wanted. He had already turned down several offers. He wanted control of the business to earn a share of the profits. Flint offered him CTR. Flint was, as described earlier, a great promoter of trusts and was presumably less worried about Watson's impending jail sentence. The other members of
135-578: A magazine, Time , for employees and customers; in 1935 IBM renamed the magazine Think . Herman Hollerith initially did business under his own name, as The Hollerith Electric Tabulating System , specializing in punched card data processing equipment . In 1896 he incorporated as the Tabulating Machine Company and in 1905 reincorporated as The Tabulating Machine Company . Hollerith's series of patents on tabulating machine technology, first applied for in 1884, drew on his work at
180-495: A name for a 1917 Canadian subsidiary, then as a line in advertisements. For example, McClure's magazine, vol. 53, May 1921, ran a full-page ad with the following tag at the bottom: Patterson died in 1922, and Fairchild died on December 31, 1924. On February 5, 1924, Watson applied to list International Business Machines (IBM) on the New York Stock Exchange, and the name C-T-R disappeared. Watson began to mold
225-482: A new company and keeps majority shares with itself, and invites other companies to buy minority shares, it is called a parent company. A parent company could simply be a company that wholly owns another company, which is then known as a " wholly owned subsidiary ". 1900 US Census The 1900 United States census , conducted by the Census Office on June 1, 1900, determined the resident population of
270-527: A parent company material influence if they are the largest individual shareholder or if they are placed in control of the running of the operation by non-operational shareholders.) In the United Kingdom, the term holding company is defined by the Companies Act 2006 at section 1159. It defines a holding company as a company that holds a majority of the voting rights in another company, or
315-402: A peak of $ 16 million in 1920. The price of this, however, was a precarious cash position. In 1921, sales fell to $ 10.6 million, and Watson faced a cash-flow crisis. Once again, Guaranty Trust was to fund and rescue CTR. Watson cut costs, including reducing research and development and laying off employees. He never again allowed his cash position to fall so low. He subsequently maintained
360-531: A policy of low dividends, high revenues, and careful cost controls. He adopted very conservative accounting principles. Hollerith, beginning with the 1890 census, had rented his machines so that his company could provide the maintenance necessary to ensure reliable operation. Watson recognized other benefits including the idea that renting equipment was inherently more stable since the income continued when equipment orders would otherwise have dried up. Less obviously, it forced sales personnel, aware that they might lose
405-501: A population growth of over three million. Oversight of the statistics was by Frederick Howard Wines and Walter F. Willcox . The 1900 census collected the following information: Full documentation for the 1900 census, including census forms and enumerator instructions, is available from the Integrated Public Use Microdata Series . The original census enumeration sheets were microfilmed by
450-414: A widespread National Cash Register scheme to run used cash register retailers out of business (see NCR Corporation § Expansion ). Watson's extortionate writings were used as evidence against him. That lesson taught Watson to keep very little in writing after that. In 1914, having been fired from NCR Corporation and with a prison sentence threatening his future, Thomas J. Watson approached Flint,
495-499: Is a company whose primary business is holding a controlling interest in the securities of other companies. A holding company usually does not produce goods or services itself. Its purpose is to own stock of other companies to form a corporate group . In some jurisdictions around the world, holding companies are called parent companies , which, besides holding stock in other companies, can conduct trade and other business activities themselves. Holding companies reduce risk for
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#1732779758249540-643: Is a member of another company and has the right to appoint or remove a majority of its board of directors, or is a member of another company and controls alone, pursuant to an agreement with other members, a majority of the voting rights in that company. After the financial crisis of 2007–2008 , many U.S. investment banks converted to holding companies. According to the Federal Financial Institutions Examination Council 's website, JPMorgan Chase , Bank of America , Citigroup , Wells Fargo , and Goldman Sachs were
585-478: Is defined by Part 1, Section 5, Subsection 1 of the Companies Act, which states: 5.—(1) For the purposes of this Act, a corporation shall, subject to subsection (3), be deemed to be a subsidiary of another corporation, if — In the United Kingdom, is generally held that an organisation holding a 'controlling stake' in a company (a holding of over 51% of the stock) is in effect the de facto parent company of
630-558: The 1900 US Census . After winning the government contract and completing the project, Hollerith faced the challenge of sustaining the company in non-Census years. He returned to targeting private businesses in the United States and abroad, attempting to identify industry applications for his semiautomatic punching, tabulating, and sorting machines. Flint bought the business for $ 2.3 million (of which Hollerith got $ 1.2 million) in 1911. The Computing Scale Company of America
675-658: The Bundy Manufacturing Company , and began mass-producing time clocks. In 1900, Bundy Manufacturing sold its time recording business to a new company, the International Time Recording Company. Bundy Manufacturing went on to produce adding machines. In 1906 Harlow Bundy moved his business into a new three-story brick building in Endicott, New York. In 1894, J. L. Willard and F. A. Frick of Rochester, New York , formed
720-518: The U.S. Census Bureau from 1879 to 1882. Hollerith initially tried to reduce the time and complexity needed to tabulate the 1890 Census. His development of punched cards in 1886 set the industry standard for the next 80 years of tabulating and computing data input. In 1896 the Tabulating Machine Company leased some machines to a railway company but quickly focused on the challenges of the largest statistical endeavor of its day –
765-475: The United States to be 76,212,168, an increase of 21.01% from the 62,979,766 persons enumerated during the 1890 census . It was the last census to be conducted before the founding of the permanent United States Census Bureau. The census saw the nation's largest city, New York City , more than double in size due to the consolidation with Brooklyn , becoming in the process the first U.S. city to record
810-481: The broadcast licenses to reflect this, resulting in stations that are (for example) still licensed to Jacor and Citicasters , effectively making them such as subsidiary companies of their owner iHeartMedia . This is sometimes done on a per- market basis. For example, in Atlanta both WNNX and later WWWQ are licensed to "WNNX LiCo, Inc." (LiCo meaning "license company"), both owned by Susquehanna Radio (which
855-442: The shareholders , and can permit the ownership and control of a number of different companies. The New York Times uses the term parent holding company . Holding companies can be subsidiaries in a tiered structure . Holding companies are also created to hold assets such as intellectual property or trade secrets , that are protected from the operating company. That creates a smaller risk when it comes to litigation . In
900-546: The CTR board were less optimistic, asking who was to run the company while he was in prison. As a result, they only gave him the title of general manager. After Watson had been at CTR for 11 months, the Appeals Court ordered a retrial. Although he refused to sign a Consent Decree, a new trial never took place, and the board of CTR duly promoted him to the position of president. Among the many things Watson brought to CTR from NCR
945-577: The Census Bureau in the 1940s, after which the original sheets were destroyed. The microfilmed census is available in rolls from the National Archives and Records Administration . Several organizations also host images of the microfilmed census online, and digital indices. Microdata from the 1900 census are freely available through IPUMS . Aggregate data for small areas, together with electronic boundary files, can be downloaded from
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#1732779758249990-558: The Computing Scale Company to produce commercial scales. Flint amalgamated the four companies into the new CTR holding company. CTR had a bonded indebtedness of $ 6.5 million, three times its current assets, of which the Guaranty Trust Company had loaned $ 4 million. Flint assigned it a value of $ 17.5 million, while its tangible assets only added up to $ 1 million. Flint stated that
1035-563: The Tabulating Machine Company, and the Computing Scale Company of America; creating a fifth company – the Computing-Tabulating-Recording Company. CTR was initially located in Endicott, New York . The amalgamated companies had 1,300 employees and manufactured a wide range of products, including employee time-keeping systems , weighing scales , automatic meat slicers , and punched card equipment . CTR
1080-446: The United States, 80% of stock, in voting and value, must be owned before tax consolidation benefits such as tax-free dividends can be claimed. That is, if Company A owns 80% or more of the stock of Company B, Company A will not pay taxes on dividends paid by Company B to its stockholders, as the payment of dividends from B to A is essentially transferring cash within a single enterprise. Any other shareholders of Company B will pay
1125-599: The Willard & Frick Manufacturing Company as the first time card recorder company in the world. In 1900 George W. Fairchild , an investor and director of the Bundy Manufacturing Company, led the formation in Jersey City, New Jersey, of the International Time Recording Company (ITR) which consolidated the time recording business of Bundy with the Willard & Frick Manufacturing Co. In 1901,
1170-445: The company in his image and took it to new levels of success for the next quarter of a century until he was 75. He celebrated his new status with the first Quarter Century Club. Even though CTR had only been going for 13 years, he based qualifications on the subsidiary companies. The holding company itself disappeared in 1933 after most of the subsidiaries had been merged into one company, IBM. Holding company A holding company
1215-643: The company was re-incorporated in Binghamton, New York. The same year, it acquired the Chicago Time-Register Co., the first autograph time recorder company in the world and a manufacturer of key, card, and autograph employee time recorders. In 1906, ITR relocated to Endicott, New York , where it built a larger factory next to the new building of the Bundy Manufacturing Company. Before the CTR amalgamation, Harlow Bundy would be named ITR's treasurer and general manager. Dr. Alexander Dey invented
1260-431: The firm, having overriding material influence over the held company's operations, even if no formal full takeover has been enacted. Once a full takeover or purchase is enacted, the held company is seen to have ceased to operate as an independent entity but to have become a tending subsidiary of the purchasing company, which, in turn, becomes the parent company of the subsidiary. (A holding below 50% could be sufficient to give
1305-458: The first body) is a subsidiary of another body corporate if, and only if: Toronto-based lawyer Michael Finley has stated, "The emerging trend that has seen international plaintiffs permitted to proceed with claims against Canadian parent companies for the allegedly wrongful activity of their foreign subsidiaries means that the corporate veil is no longer a silver bullet to the heart of a plaintiff's case." The parent subsidiary company relationship
1350-645: The first dial recorder in 1888, and in 1907 ITR acquired the Del Ray Register Company. In 1908, ITR acquired the Syracuse Time Recorder Company, a manufacturer of dial recorders. ITR's 1935 catalog lists various clocks, from industrial timeclocks , recording clocks, and program clocks to ornamental store-front clocks. It also lists the Series 970 Intercommunicating Telephone System . Since 1907 or earlier ITR had published
1395-576: The first president left after just one month, however, Fairchild took over and ran CTR until 1912, when Frank N. Kandolf, formerly CEO of the International Time Recording subsidiary, took over. Flint was a member of the board of CTR (and later IBM) until his retirement in 1930. Herman Hollerith served as a consulting engineer until he retired in 1921. Thomas J. Watson Sr. , along with 29 other NCR officials, had been convicted in 1913 of various antitrust violations for their roles in
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1440-605: The five largest bank holding companies in the finance sector, as of December 2013 , based on total assets. The Public Utility Holding Company Act of 1935 caused many energy companies to divest their subsidiary businesses. Between 1938 and 1958 the number of holding companies declined from 216 to 18. An energy law passed in 2005 removed the 1935 requirements, and has led to mergers and holding company formation among power marketing and power brokering companies. In US broadcasting , many major media conglomerates have purchased smaller broadcasters outright, but have not changed
1485-455: The following requirements are met: A parent company is a company that owns enough voting power in another firm (or subsidiary ) to control management and operations by influencing or electing its board of directors . The definition of a parent company differs from jurisdiction to jurisdiction, with the definition normally being defined by way of laws dealing with companies in that jurisdiction. When an existing company establishes
1530-401: The four companies. CTR and the four amalgamated companies had 1,300 employees, with offices and plants in Endicott and Binghamton, New York; Dayton, Ohio; Detroit, Michigan; Washington, D.C.; and Toronto, Ontario. CTR was located in Endicott. The chairman was George Winthrop Fairchild , who, having been a member of Congress since 1906, was not expected to take an active part in management. When
1575-495: The importance of sound R&D, appointing James W. Bryce in 1922 to manage this (moving him from its Time Recording Division, which he had joined in 1915). However, Watson continued to be personally involved in R&;D, not least through his insistence on rigorous standards. "Watson had never liked the clumsy hyphenated title of the CTR" and chose to replace it with the more expansive title International Business Machines , first as
1620-448: The meantime, he took personal charge of 400 demoralized and poorly-supervised salesmen. His stated objective was to produce a sales force in the NCR mold and advanced machines that would be superior to any of the competitors' machines. He presented his 'competitive proposition' in several small meetings to the sales force. Despite the aggressive-sounding title, right from these beginnings, there
1665-483: The next three-quarters of a century were also evident. The company motto was to be 'We sell and deliver service'; CTR was to be in the business of genuinely assisting its customers. Watson strongly believed that both sides came out ahead when a sale was made. CTR was a company with three separate elements: In the 1920s, while still under Fairchild's domination, Watson focused on achieving significant growth. Revenue grew from $ 4.2 million in 1914, when he took over, to
1710-420: The rental, to maintain regular contact with customers, thus ensuring – even as early as the 1930s – that customer relationships were well-managed. This approach became central to IBM's activities. After that, Watson deliberately lagged in introducing new products, though not on research. Even after competitors launched new products, he waited until the market was ripe for large-scale development. Watson recognized
1755-499: The usual taxes on dividends, as they are legitimate and ordinary dividends to these shareholders. Sometimes, a company intended to be a pure holding company identifies itself as such by adding "Holding" or "Holdings" to its name. The parent company–subsidiary company relationship is defined by Part 1.2, Division 6, Section 46 of the Corporations Act 2001 (Cth) , which states: A body corporate (in this section called
1800-588: The various manufacturers produced similar but not identical products and that the ..."allied consolidation", instead of being dependent for earnings upon a single industry, would own three separate and distinct lines of business so that in normal times the interest and sinking funds on its bonds could be earned by any one of these independent lines, while in abnormal times the consolidation would have three chances instead of one to meet its obligations and pay dividends. CTR's 1911 stock prospectus reported net earnings, from May 1, 1910, to April 30, 1911, of $ 950,000 for
1845-439: Was a holding company, organized in 1901 and amalgamating as subsidiary companies The Computing Scale Company, Dayton, Ohio; The Moneyweight Scale Company, Chicago, Illinois; The W.F. Simpson Company of Detroit, Michigan; and The Stimpson Computing Scale Company of Elkhart, Indiana. In 1891, Edward Canby and Orange O. Ozias, two businessmen from Dayton, Ohio, purchased the patents for the newly invented computing scale and incorporated
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1890-504: Was as much emphasis on the ethics and philosophies of the business as there was on sales techniques. In particular, he stressed sincerity, integrity, and loyalty, saying that they should do nothing that could be construed as 'unfair competition' and should conduct themselves in an 'honest, fair and square way' – something which would be radical even today. Musical events, even IBM songs, were introduced to improve and maintain employee morale. The other philosophies that motivated CTR and IBM for
1935-474: Was later sold to Cumulus Media ). In determining caps to prevent excessive concentration of media ownership , all of these are attributed to the parent company, as are leased stations , as a matter of broadcast regulation . In the United States, a personal holding company is defined in section 542 of the Internal Revenue Code . A corporation is a personal holding company if both of
1980-556: Was renamed the International Business Machines Corporation (IBM) in 1924. The individual companies continued to operate using their established names until the businesses were integrated in 1933, and the holding company was eliminated. The first time clock was invented on November 20, 1888, by Willard Bundy, a jeweler in Auburn, New York . A year later, his brother, Harlow Bundy, organized
2025-447: Was the motto Think . Surprisingly, given his record at NCR and his later colossal influence on IBM, Watson initially maintained a very low profile (almost tantamount to seeking obscurity) for the next decade until 1924, when the chairman George W. Fairchild died, and he finally took over sole control. For the whole of the previous decade, in some ways uncharacteristically, he consistently deferred to Flint, Fairchild, and Hollerith. In
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