Robber Barons

 “The American Beauty Rose can be produced in the splendor and fragrance which bring cheer to its beholder only by sacrificing the early buds which grow up around it. This is not an evil tendency in business. It is merely the working-out of a law of nature and a law of God. “  –John Rockefeller

Which of the following conclusions could be drawn about John Rockefeller based on the quote above?

• He supported the theory of Social Darwinism.
• He was a strong supporter of government regulation in business.
• He was a proponent of trust-busting and opposed any one company having too much control over an industry.
• He welcomed competitors because he knew competition was beneficial to consumers.

Based on your knowledge of the Second Industrial Revolution in the United States, what statement is this cartoon making? 

• The owner of Standard Oil has too much power and influence over the federal government.
• The federal government is ruining the oil industry by placing too many restrictions and regulations on business owners.
• The oil industry is thriving due to a healthy working relationship with the federal government.
• Emissions from oil refineries are polluting the air and harming the environment.

What is the main idea of this cartoon?

• The Standard Oil Company was a harmful monopoly.
• The best way to support the Standard Oil Company was to form proprietorships.
• Foreign competition with the Standard Oil Company was hurting American companies.
• Government regulations were strangling the Standard Oil Company.

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?

• Control of the Railroads
• Control over the Interstate Highways
• Control of the steel making market
• Control of numerous cargo ships

The excerpt below is derived from the article "Wealth" by Andrew Carnegie. Use the excerpt to answer the following questions. 

...This, then, is held to be the duty of the man of Wealth: First, to set an example of modest, unostentatious living, shunning display or extravagance; to provide moderately for the legitimate wants of those dependent upon him; and after doing so to consider all surplus revenues which come to him simply as trust funds, which he is called upon to administer, and strictly bound as a matter of duty to administer in the manner which, in his judgment, is best calculated to produce the most beneficial results for the community....
 —North American Review, June 1889
How did Andrew Carnegie carry out the ideas expressed in this excerpt?

• by funding numerous libraries and educational institutions
• by serving many years in the federal government
• by investing his fortune in several new industries
• by promoting programs to benefit the wealthy

Which of the following was used as “scientific evidence” by wealthy American industrialists to prove they deserved the wealth they had accumulated? 

• The Great Man Theory   
• The “Gospel of Wealth”
• Social Darwinism
• Adam Smith’s Invisible Hand Theory 

This business magnate and philanthropist was born in Scotland but made his millions in the steel industry in America.

• Jay Gould
• John D. Rockefeller
• J.P. Morgan
• Andrew Carnegie

How did monopolies and trusts enable businessmen like Carnegie and Rockefeller to become among the richest and most powerful men in the world?

• They restricted immigration, thereby limiting the number of industrialists who could compete with them.
•  They eliminated competition and allowed certain businessmen to control entire industries.
• They loaned large amounts of money to businessmen, thereby enabling them to invest in new industries.
•  They paid large amounts of interest to finance capitalists in exchange for business loans.             

This political cartoon is a criticism of which practice in the 19th century?

• vertical integration
• monopolization
• industrialism 
• laissez-faire capitalism 

John D. Rockefeller gained control of the oil industry by

•  using horizontal and vertical integration to make up a trust containing Standard Oil
•  buying large sections of the transcontinental railroad
• going into partnership with Andrew Carnegie
• charging higher prices than his competitors