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Chapter 17 Quiz Answers

Chapter 17 Quiz Answers - Chapter 17 Quiz Answers Railroads...

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Chapter 17 Quiz Answers Railroads created a national market, which in turn allowed businesses to expand  from local interests to a nationwide scale. Also, the need for better rails to carry  freight helped speed the transition from iron to steel. Gould made money by purchasing enough stock in vulnerable, failing railroad  companies to take control of them, and then threatening to undercut his  competitors, forcing them to buy him out at a high profit. Not only did he not  provide much in the way of freight or passenger service, the railroads he bought  often went bankrupt. Congress gave away vast amounts of public land to railroad companies to promote  building. Companies got both rights-of-way and liberal sections of land on  alternating sides of the track to do with as they liked. Over the years, the federal  government granted 180 million acres of land to railroad builders. Rockefeller used the trust, a form of horizontal integration, to give his monopoly a  more secure legal standing. Under this system, several trustees would hold stock  in refineries for Standard Oil's stockholders. The union was thus one of  stockholders, not corporations, and could act together without technically  violating the monopoly laws. By the late nineteenth century, banks and financiers became major business  investors. They reshaped business as well, consolidating several major industries  to increase efficiency and minimize competition. Morgan issued new stock to keep old investors happy and guarantee profits, while  acquiring large blocks of stock himself. This created overcapitalization, which  harmed railroads by saddling them with enormous debts. In addition, because the  directors Morgan appointed were bankers rather than railroad men, their  accounting viewpoint discouraged technological innovation. Sumner was a professor of political economy at Yale University. Like other strict  social Darwinists, Sumner insisted that the government should not meddle in the  economy in any way whatsoever. This meant that the government should refuse to  help the poor but also that it should not protect the rich by means of things like  protective tariffs. This angered wealthy Yale alumni and other businessmen, who  benefited from such practices.  The Fourteenth Amendment was intended to protect freed slaves by declaring that  states could not "deprive any person of life, liberty, or property, without due  process of law." By defining corporations as persons, the court struck down  regulatory laws and income taxes and defined labor unions as conspiracies.
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  • Spring '08
  • Smith
  • Civil service, Interstate Commerce Commission, social Darwinists, President Hayes, liberal reform Republicans, strict social Darwinists

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