Question

Difficulty: MediumProgressive Era Reforms and Influences

Source: Ida M. Tarbell, *The History of the Standard Oil Company*, 1904

"But the Standard Oil Company did not stop with securing rebates. It demanded and received drawbacks on the oil shipped by its competitors. For every barrel of independent oil carried by the railroad, the railroad paid a portion of the freight charge directly to the Standard Oil trust. This secret alliance between the transportation lines and the combination of capital successfully choked off competition. To the average citizen, this appeared not as the legitimate reward of business efficiency, but as a subversion of democratic principles through corporate privilege."

The corporate practices described in the excerpt most directly prompted which of the following responses during the Progressive Era?

  1. A
    The government takeover and public ownership of the nation's railway networks.
  2. B
    A constitutional amendment outlawing federal intervention in private contracts.
  3. Increased federal regulation of business monopolies and unfair trade practices.Answer
  4. D
    The establishment of emergency federal job-creation and relief programs.

Answer

Increased federal regulation of business monopolies and unfair trade practices.
The correct answer is correct because muckraking journalism, such as Ida Tarbell's exposé of the Standard Oil Company, played a central role in exposing trust abuses, which mobilized public opinion and led to the passage of stronger federal antitrust laws and regulatory reforms in the early twentieth century.

Step-by-Step Solution

1
Analyze the stimulus context and perspective.
The excerpt is from Ida Tarbell's muckraking work exposing Standard Oil's anti-competitive practices, specifically the use of railroad drawbacks to crush competition.
This establishes that the core issue is corporate monopoly power and the subversion of free-market principles.
2
Evaluate the goals of the Progressive Era reformers.
Progressives sought to use the power of the federal government to regulate big business, curb monopolistic abuses, and restore competition.
This connects the problem (monopolistic corporate privilege) to the era's primary policy solution (federal regulation).
3
Select the option that reflects Progressive regulatory reforms.
Increased federal regulation of business monopolies aligns with Progressive legislative achievements like the Clayton Antitrust Act and the creation of the Federal Trade Commission.
This matches the historical development that resulted directly from the public outcry generated by muckrakers.

Key Concept

Progressive Era corporate regulation and anti-trust legislation
Estimated Time:1m 15s
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