Daily Management Review

Twelve pioneers of Dow Jones Industrial


Dow Jones Industrial Average rose 155.80 points, or 0.8%, and stood at 20,068.51 at the close of trading. This became possible largely thanks to Boeing Co. and Caterpillar Inc., which demonstrated the positive trend.

When the Dow Jones Industrial Average was created in 1896, it consisted of 12 industrial stocks, but the picture has significantly changed since then. The mark of 19 thousand points has been crossed only two months ago, and the index added almost 1700 points since Donald Trump’s victory on November 8, 2016.

Throughout its history, the index has undergone many changes and now includes only one of the 12 original members. Here are the 12 companies of which the index consisted originally.

American Cotton Oil Company

The company was formed as a trust after several factories in Texas and Arkansas combined to regulate grain prices. It turned into a corporation in 1889, after the trust collapsed as a result of a trial. Later on, the corporation has developed and evolved into a company that afterwards became part of Unilever.

The company left the Dow in 1901.

American Sugar Company

The company was the largest in America in the field of sugar refining in the early XX century. It was founded in 1891 with initial capital of $ 50 million, and in a few years was acquired by American Sugar Refining Inc.

The company left the Dow in 1930.

American Tobacco Company

American Tobacco Company acquired more than 200 competitors and started to dominate the market. The company was founded in 1890. Later, the Supreme Court decided to split the company within a judicial antitrust lawsuit. The corporation was divided into a number of smaller companies and was renamed Fortune Brands. 

The company left the Dow in 1985

Chicago Gas Company

Founded in 1887, the company bought some gas and heating companies in Chicago, its capital amounted to $ 25 million. 10 years later, it became a subsidiary of Integrys Energy Group.

The company left the Dow in 1915 after merging with Peoples Gas.

General Electric

Formed as a bulk electricity provider in 1892 as a result of a merger, it then developed and turned into an international giant with multiple branches responsible for energy, oil and gas, aviation and transport. In April 2015, the company started selling most of its assets in order to create a less massive business unit. It came out of the index, but afterwards re-entered it. Now, it is the only company from the original 12 members, which is still here.

Distilling & Cattle Feeding Company

The company produced beverages, including alcohol. Later it was renamed American Spirits Manufacturing and then grew into Millennium Chemicals, the world's second largest manufacturer of titanium dioxide, which is used in a wide range of products, including sunscreens and paint.

The company left the Dow in 1899.

Laclede Gas Company

The company provided gas lighting in homes and on the streets. Now, it is one of the largest natural gas suppliers in the state of Missouri. 

The company left the Dow in 1899.

National Lead Company

The company was founded in Philadelphia in 1772, and created a famous paint brand Dutch Boy Paint in the early 1900s. Nowadays it is called NL Industries, and is engaged in smelting of lead in Houston, Texas. 

The company left the Dow in 1916

North American Company

The holding was owned by several companies in the field of public transport, housing services and utilities. The Securities and Stock Market Commission divided the organization in 1946, after the US Congress passed a law on public service companies in 1935.

The company left the Dow in 1930

Tennessee Coal, Iron and Railroad Company

Founded in 1852 in Tennessee, the company was known for its activities in steel, coal and iron ore industries. In 1907, it teamed up with US Steel, which was its main competitor. US Steel now still keeps its last plant in Alabama. 

The company left the Dow in 1907

US Leather Company

The company specialized in production of leather, and has become one of the largest companies in the United States in the early 1900s. The organization was liquidated in 1952, left the Dow in 1928.

United States Rubber Company

The company manufactured tires, including Tiger Paw. It was acquired by French tire manufacturer Michelin in 1990, but before it changed its name to Uniroyal and merged with another company.
The company left the Dow in 1928.

source: wsj.com