USA HISTORY

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WESTWARD EXPANSION INDUSTRIALIZATION URBANIZATION 1870 1900

ROBBER BARONS

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
George Rice, “How I Was Ruined by Rockefeller, “ New York World, October 16, 1898. “I am but one of many victims of Rockefeller’s colossal combination, “ said Mr. [George] Rice, “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.” What advantage did Standard Oil have over their competitors?
A
Control of the Railroads
B
Control over the Interstate Highways
C
Control of the steel making market
D
Control of numerous cargo ships
Explanation: 

Detailed explanation-1: -Standard Oil gained a monopoly in the oil industry by buying rival refineries and developing companies for distributing and marketing its products around the globe. In 1882, these various companies were combined into the Standard Oil Trust, which would control some 90 percent of the nation’s refineries and pipelines.

Detailed explanation-2: -In 1911 the U.S. Supreme Court ruled that Standard Oil Trust be dissolved under the Sherman Antitrust Act and split into 34 companies.

Detailed explanation-3: -The employees within his company were often referred to as the “Standard Oil family, ” and everyone worked together to achieve the company’s goals. Rockefeller routinely praised his employees, and it was not uncommon for him to join them in their work and urge them on.

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