Ward Dobeck
Dr. Salmanson
AP United States History
May 29, 2023
The Time America Went Bananas for Bananas The United Fruit Company was formed by merging many different companies in 1899. The main company involved was the Boston Fruit Company, which was a fruit trade business that operated out of Boston, Massachusetts. The Boston Fruit Company was founded by Minor C. Keith, Andrew Preston, and Lorenzo D. Baker, who were all entrepreneurs from Boston. Keith controlled many major Central American railway networks and plantations. Preston and Baker owned fleets of steamships and already controlled major parts of the fruit trade. This company, from its formation to its dominance, was heavily backed by the United States. It established strong footholds
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Although only cultivating 139,000 acres of land by 1930, the company strategically purchased millions of acres of unused land. Their large amounts of unused land fulfilled many purposes for the expansion and power of the company. The unused land allowed the company to easily relocate to fertile areas after the nutrients have been exhausted at a previous location. It also facilitated growth as the company was able to grow its labor force and plant more and more bananas. Lastly, it restricted competition as it bought out all of the fertile land in the area and didn’t allow any other fruit company to gain a significant amount of land. In Costa Rica, the United Fruit Company owned over 800,000 acres of land. This territorial dominance allowed the company to control almost all of the region's exports, imports, transportation, industry, and infrastructure in Eastern Costa Rica. This territorial control allowed the United Fruit Company to shape the economic landscape to its advantage. The company was able to completely control banana production and exporting, allowing them to sell tons of bananas while keeping production and transportation costs low. They were able to completely control the supply chain and severely amplify their profitability. This massive territorial foothold also allowed the company to freely exploit the …show more content…
The United Fruit Company quickly became Costa Rica’s largest employer and largest producer of bananas, forcing the government to make agreements that heavily favor the company. The United Fruit Company quickly became so essential to Costa Rica that the country was forced into dependence on the company for its economy. If the country tried to suppress the company’s wishes, the company could threaten to withdraw and leave the country in shambles. The United Fruit Company took advantage of this and demanded corrupt laws and regulations that allowed the company to build its monopoly and generate massive profits. The United Fruit Company bribed Central American governments to gain more and more territory and profits. They also intimidated the governments through crucial geographic land ownership and widespread control over the country. As the United Fruit Company’s wealth continued to grow exponentially, they were able to pay off countries to be able to run their operations as efficiently and effectively as possible. They were able to lower their taxes and avoid being taken down for monopolistic or exploitative behavior. This allowed the company to profit and spread very rapidly throughout Central America. The company also held crucial waterways and territories that they used to their advantage. They were able to completely control all things that went