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Difficulty: EasyProgressive Era Reforms and Influences

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

"Standard Oil has systematically played with loaded dice, and it is doubtful if there has been a time since 1872 when it has run a race with a competitor on equal terms. It has obtained rebates on its own shipments, and drawbacks on the shipments of its competitors. It has systematically raided the markets of competitors, underselling them until they were forced to sell out or go bankrupt."

Which of the following Progressive Era federal policies was most directly intended to address the corporate practices described in the excerpt?

  1. A
    The adoption of a strict laissez-faire policy by the federal government to encourage industrial growth
  2. B
    The formation of the Populist Party to advocate for the free coinage of silver to aid farmers
  3. The strengthening of federal antitrust regulation through the Clayton Antitrust ActAnswer
  4. D
    The creation of the Social Security System to provide direct relief to elderly citizens

Answer

The strengthening of federal antitrust regulation through the Clayton Antitrust Act
The excerpt from Ida Tarbell describes the predatory practices of the Standard Oil Company, such as obtaining rebates and drawbacks to eliminate competition. During the Progressive Era, the federal government moved to regulate corporate power and ensure fair competition, most notably through the Clayton Antitrust Act of 1914. This legislation outlawed specific monopolistic practices, such as price discrimination and tying contracts, which directly targeted the behaviors highlighted by Tarbell.

Step-by-Step Solution

1
Analyze the stimulus to identify the corporate abuses described.
The author describes Standard Oil securing rebates, drawbacks, and underselling competitors to force them out of business.
To determine what economic problems the Progressives were trying to solve.
2
Connect the identified abuses to the correct Progressive Era legislative remedy.
The federal government sought to regulate trust and monopoly power, specifically passing the Clayton Antitrust Act to ban unfair methods of competition like rebates and predatory pricing.
To match the historical problem with the correct federal policy response.

Key Concept

Progressive Era federal regulation of corporate monopolies and trusts.
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Topics

Progressive Era Reforms and Influences

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