Definition of Morganization:
The restructuring of an industry or business sector, especially one that is unstable, by buying up competing companies and combining their resources in a single corporation.
Morganization is the name given to monopolization techniques used by J.P. Morgan in the 19th century. Morgan used his reputation to lure European financiers into America by taking over an industry and stabilizing it through monopoly. Morgan would then turn the industry into a single, stable, profitable entity that was much more palatable to European bankers.
Nickname for reorganization in a monopolistic fashion derived from the great financier John Piermont (JP) Morgan, who was able to convince European backers to invest in industries in the U.S. which he was able to acquire and make them into monopolies. He helped monopolize the railroad, steel, electric and banking industries. See monopoly.
Morgan "morganized" the railroad industry first, taking over small underfinanced companies. He then took over the steel, electricity and banking industries the same way. The solid, steady growth that resulted was successful in transforming the U.S. from a debtor nation to one that was able to lend money to others.
Meaning of Morganization & Morganization Definition