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 monopolies in the United States during the Gilded Age, 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 "Gospel of 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

According to the "Gospel of Wealth" supported by Andrew Carnegie

• the accumulation of wealth is beneficial to society and the government should take no action to hinder this accumulation.
• the wealth and resources in a society should be equitably distributed among the members of that society.
• a graduated income tax is needed to reduce the gap between the richest and poorest members of society.
• the government should play a major role in controlling the American economy.

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

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

What was one reason John D. Rockefeller, Andrew Carnegie, and J. Pierpont Morgan were sometimes called robber barons?

• They made unnecessarily risky investments.
• They stole money from the federal government.
• They robbed from the rich to give to the poor.
• They used ruthless business tactics against their competitors.

Based on the cartoon, what conclusion can be reached about the United States in the early 1880s?

• Most American manufacturing was controlled by business monopolies.
• Some American critics felt workers were being oppressed by business monopolies. 
• Government leaders were finally taking steps to curb the power of business monopolies. 
• Business monopolies overcharged their customers but were essential to American economic growth. 

What does the octopus represent?

• Standard Oil Company
• Carnegie Steel
• Florida East Railroad Company
• JP Morgan and Chase