The Gentlewoman and the Robber Baron

The Gentlewoman and the Robber Baron

1.      What were the two most popular magazines in America in 1902?

McClure’s and Munsey’s

2.      Who was Mark Twain? How did he become involved in Ida Tarbell’s investigation of Standard Oil?

An American author of some famous novels and he was asked to investigate what McClure was planning to publish.

3.      Why did Ida Tarbell pray not to get married?

Because she wanted to be free and was with the ideas that men were cruel and they mistreated women during relationships.

4.      Who were the suffragettes? How did they influence Ida?

Suffragettes were participants of the revolution fighting for the right of vote to women. They influenced Ida with ideas of freedom and about the male cruelty to women.

5.      What was the most important thing in John Rockefeller’s life?

His commercial career.

6.      What is a rebate?

A partial refund following a purchase.

7.      How did the railways give preferential treatment to Standard Oil?

It was more valuable and easier to produce in that time.

8.      What is the difference between crude oil and refined oil?

Crude oil is natural petroleum, in the other hand refined oil went through a process of molecule separation, making this type of oil more valuable and efficient.

9.      Did Standard Oil practice horizontal integration, vertical integration, or both?

Both, because they controlled 90% of the entire oil industry, transporting and marketing, that’s why they could charge it in any price they wanted.

10.  Ida Tarbell summarized Rockefeller’s goal: Controlling all refineries, I shall be the only shipper of oil. Being the only shipper, I can obtain special rates of transportation which will drive out and keep out competitors; controlling all refineries, I shall be the only buyer, and can regulate the price of crude [oil] as I can the price of refined. If Rockefeller controlled the entire market for oil, what would he have?

A monopoly.

11.  What did Ida Tarbell have to say about “The Legitimate Greatness of Standard Oil”? That the leader’s business has become succeed and the company was in a perfect status. Although it was an amazing organization, she feared the start of an unstoppable monopoly.

12.  What percentage of the nation’s oil business did Rockefeller control by 1879?

90%

13.  What are muckrakers?

They are journalists that exposed the corruption of politicians and the abuses to the society.

14.  What law did the U.S. Government use to sue Standard Oil?

Antitrust suits             

15.  What did the U.S. Supreme Court eventually decide in that lawsuit?

Various fines. The company was temporary banned. Finally, they were prohibited to trade for unfair prices.

16.  What did Rockefeller’s son John Rockefeller, Jr., do with his money?

He gave it away

17.  What happened when John Rockefeller, Jr., and Ida Tarbell met at a conference?

Rockefeller acted natural, and after that he went to a formal dinner with Ida.

Economics Definitions 

Laissez-faire capitalism: Economic system in which people want the government not to interfere in their negotiations and company managing.

Free market: Business governed by the laws of supply and demand, without government interference. 

Law of supply and demand: It states that if the more supplies there are and the less demand for them is, the price will be lower. 

Law of self-interest: States that people who help the interests of other people will finish beneficiating themselves.

Law of competition: It maintains the marketing in order by regulating the competitive actions between companies.

The invisible hand: Natural force that guides each free market group or company to the most beneficial actions.

Contract: Agreement between 2 or more persons or organizations 

Free trade: Interchange of goods

Balance of trade: The difference between investment and the earnings

Zero-sum game: A company gains the same what another company losses

Protectionism: To not allow any interaction of other countries in the commerce

Embargo: A prohibition against the commerce of certain products to a particular country for economic or political reasons.

Quota: The limit of price of imported supplies

Tariff: Taxes on certain goods

Comparative advantage: Low the prices of goods, gain demand and beat the competition

Trading partner: Company that agrees to interchange supplies or information with another  one

Niche product: Special product, which is only sold in a certain market

Specialization: When a company focuses in a certain commerce area 

Life expectancy: The expectation of how many years people will live in a region

Birth rate: Difference between how many people born and die in a day

Replacement rate: The percentage of working income that an individual needs to maintain the same standard of living in retirement

Carrying capacity: Maximum fitting load

Utilitarianism: An ethical philosophy in which the happiness of the greatest number of people in the society is considered the greatest good.