Examkin

Question

Difficulty: MediumRise of Industrial Capitalism and Business Consolidation

Source: Senate Select Committee on Interstate Commerce (the Cullom Committee), report to Congress, 1886:

'The system of private ownership of railroads in the United States has succeeded in building up a transport network unequaled in the world. Yet, this has been accomplished at the expense of granting to these corporations unprecedented public aid in the form of land grants, tax exemptions, and direct credit. In return, the public has too often received unjust discrimination in rates and a complete disregard for the public interest, proving that the theory of unregulated competition has failed to protect the citizen.'

Based on the excerpt, which of the following Gilded Age developments best illustrates the 'public aid' provided to corporations?

  1. A
    The strict adherence to laissez-faire principles that prevented any government intervention in the economy
  2. B
    The implementation of antitrust regulations under urban Progressive leadership to restore market competition
  3. The distribution of federal land grants and subsidized loans to transcontinental railroad companiesAnswer
  4. D
    The creation of communal reservation programs designed to protect Native American tribal land rights

Answer

The distribution of federal land grants and subsidized loans to transcontinental railroad companies
The correct answer is correct because the federal government directly subsidized transcontinental railroad construction through land grants and credit, illustrating the 'public aid' highlighted in the excerpt.

Step-by-Step Solution

1
Analyze the source excerpt to identify what the author means by 'public aid' provided to corporations during the Gilded Age.
The excerpt notes that private railroads received 'unprecedented public aid' in the form of land grants, tax exemptions, and credit.
Understanding the specific type of government support described is necessary to match it with historical evidence.
2
Evaluate the historical developments of the Gilded Age to find a direct example of federal assistance to corporations matching these categories.
The Pacific Railway Acts of 1862 and 1864 granted millions of acres of public land and government bonds to railroad companies.
This aligns directly with the 'land grants' and 'direct credit' mentioned in the source.

Key Concept

Government subsidies and corporate consolidation during the Gilded Age
Rate this question

Topics

Rise of Industrial Capitalism and Business Consolidation

More questions from this topic