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“I am but one of many victims of Rockefeller’s colossal combination . . . and my...
Oct 11, 2023
“I am but one of many victims of Rockefeller’s colossal combination . . . and my story is not essentially different from the rest. . . . I established what was known as the Ohio Oil Works. . . . I found to my surprise at first, though I afterward understood it perfectly, that the Standard Oil Company was offering the same quality of oil at much lower prices than I could do—from one to three cents a gallon less than I could possibly sell it for.
“I sought for the reason and found that the railroads were in league with the Standard Oil concern at every point, giving it discriminating rates and privileges of all kinds as against myself and all outside competitors.”
—George Rice, “How I Was Ruined by Rockefeller,”New York World , October 16, 1898
10.
Rockefeller's business model as described by George Rice would best be considered an example of (A) global distribution.
(B) horizontal integration.
(C) regional planning.
(D) vertical consolidation.
11.
Attempts to rein in the power of corporations, such as the Standard Oil Company, in the 1890s and 1900s
(A)were frequently approved by Congress but were stymied by presidential vetoes.
(B)were largely successful, as a coalition of reformers, political leaders, and labor leaders collaborated on realigning the American economy.
(C)were discussed by radical groups but were rejected by the vast majority of Americans as Communistic and “anti-American.”
(D)were often hindered by Supreme Court decisions that upheld the rights of business to operate without excessive government regulation.
12.
Defenders of corporate actions, such as the ones described in the passage above, would find support in (A)Herbert Spencer and the ideas of social Darwinism.
(B)Henry George’s proposal for a “single tax” on land. (C) the Omaha Platform of the Populist Party.
(D) Upton Sinclair’s novel, The Jungle .
10.
B
Key Concept
KC-6.1.III: The development of new industrial economies in the late 19th century led to complex business organizations.
Explanation
Rockefeller's business model, as described by George Rice, is an example of horizontal integration. This is a business strategy where a company acquires, merges with or creates alliances with other companies in the same industry and at the same point of production. In this case, Rockefeller's Standard Oil Company was able to offer lower prices by controlling all aspects of production and distribution, effectively eliminating competition.
11.
D
Key Concept
KC-6.2.II: In the late 19th and early 20th centuries, court decisions and legislation on the state and federal levels affected the extent and power of corporations.
Explanation
Attempts to rein in the power of corporations like the Standard Oil Company were often hindered by Supreme Court decisions that upheld the rights of businesses to operate without excessive government regulation. This reflects the laissez-faire economic policies of the time, which favored minimal government intervention in the economy.
12.
A
Key Concept
KC-6.3.I: In the late 19th century, social Darwinism was used to justify the growing gap between the rich and the poor.
Explanation
Defenders of corporate actions like those described in the passage would find support in Herbert Spencer and the ideas of social Darwinism. Social Darwinism applied the concept of "survival of the fittest" to human society, arguing that competition and natural selection justified economic inequality and the actions of powerful corporations.
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