Section B: American option The Gilded Age and Progressive Era, 1870s to 1920 Read the sources and then answer both parts of the question. Source A [Figure X.X] (A cartoon entitled ‘The Monster Monopoly', published in 1884.) Source B The effects of competition in regulating oil prices were unsatisfactory. Competition might prevent average prices from going too high or low, but it did not prevent wide fluctuations which caused great damage to the economy as a whole. A man will not invest unless he can get a satisfactory return and wide fluctuations prevented investment. The efforts of groups such as Standard Oil to prevent cutthroat competition were justified to an extent. They gave stability, prevented great price fluctuations and the waste of capital. Standard Oil wisely keeps its prices low to discourage harmful competition from undercutting them. Oil prices have actually fallen simply because there is no competition in the oil industry. This fall will benefit all. From an article entitled 'Trusts' in the 'Commercial and Financial Chronicle', published in Chicago, 28 July 1888. Source C While possibly justified in wishing to eliminate wasteful middlemen, the methods Rockefeller used to dispose of competitors were ruthless. Initially he was prepared to negotiate openly and buy out his rivals, but when his offers were declined, he resorted to other methods. The prices he actually paid were usually between a third and a half of their real value. He argued that he did not fear competition. However, when competition was met he would simply cut off all supplies to rival oil dealers. Their freight rates would triple as Rockefeller controlled the railroads. If they used other methods of transport, these shipments were 'lost'. Grocery stores were told 'If you do not buy our oil, we will open a grocery store next to you and sell goods at below cost and put you out of business.' When this happened, the new stores' prices were higher than the closed neighbours. The marketing methods of Standard Oil are efficient. Waste is eliminated. Immense savings are brought to the refining monopoly and prices are stabilised and supply guaranteed. However, one man is now in a position to control both the price and supply of a vital commodity, and this should not be tolerated in a modern economy. From a book by a journalist critic of Standard Oil, 1894. Source D Standard Oil is successful because of its policy of making the volume of its business large through the quality and cheapness of its products. It uses the most efficient method of manufacture. It invests in new methods for cheapening transport and delivery of oil. It has sought new markets and spent vast sums holding its market against foreign competitors. It cares for its workers when sick and pensions them when old. It has never had any important strikes. It has brought immense benefit to the American economy. This so-called 'Octopus' has always paid what it owed. It has never begged for any support or used stock-selling schemes. It has been said that the company has crushed out its competitors, but we have always had hundreds of competitors. We have always negotiated fairly and openly with possible competitors and paid a fair price for their businesses. There may have been occasions when young employees were over-enthusiastic in pursuing sales, but this was against company policy. From John D Rockefeller's ‘Random Reminiscences', published in 1909.

Mark scheme

Marking points from the official mark scheme (Feb/Mar 2023). The mark or mark type is shown in brackets.

1. [15] Source C suggests that Standard Oil has control of the railroads, in Source D it says they have invested in methods for cheapening transport which also implies control.
2. [15] Source C says he was prepared to buy out his rivals, as does Source D.
3. [15] Source C maintains his methods were ruthless (cutting of supplies, losing shipments, threatening grocery stores etc) while Source D argues that Standard Oil did not 'crush' its rivals and used fair business practices.
4. [15] Source D maintains that a fair price was paid to buy out rivals, while Source C maintains that he paid between a third and a half of the real value.
5. [15] In Source C it says that Standard Oil was initially open to negotiations but then used shadier methods, whereas in Source D Rockefeller says he was always open to fair negotiation.
6. [15] Source C was written by a critic of Rockefeller (there were many of them) so there is bound to be bias there. However, there is also some balanced, and accurate, comment there as well about the elimination of waste and having a very efficient organisation. Contextual knowledge suggests that most of what the writer says is very accurate as the methods that Rockefeller and his company used were widely known and emulated and often challenged in the courts. Source D is written by Rockefeller himself, and he was well used to defending himself, his business methods, and his company. There is a degree of balance there, but the focus is on the 'plus' points and his capacity for self-delusion is strong. There is plain dishonesty there about the prices he paid out to terrorised rivals, but also a degree of acceptance that his methods may have been the result of ‘over-enthusiastic' employees.
7. [15] Accept any other valid responses.
8. [25] Source B: This argues that there were real benefits from this type of company as it prevented wide fluctuations in price which impacted on investment. Such organisations brought stability to the economy and avoided wasted capital. They also enabled a fall in the price of oil.
9. [25] Source C: This does point out that there were benefits in the form of the company's marketing methods and it also led to the elimination of waste. Prices were stabilised and the supply of oil guaranteed.
10. [25] Source D: This source stresses the efficiency the company brought to the industry. There is also the mention of developing new markets and holding the market against foreign competitors. The whole source is largely a list of the praiseworthy things Rockefeller's company has done.
11. [25] Source A: The source is clearly an attack on Standard Oil and its methods. It shows the many 'Octopus' tentacles spreading out and strangling so many aspects of the United States. The shipping industry, Congress, savings banks, the railroads and the smaller oil companies are amongst its 'victims'.
12. [25] Source C: The source is highly critical. It stresses his ruthless methods of dealing with competitors and the way in which the company created a monopoly. It emphasises the risks of one man being able to control both the supply and the price of a vital commodity in a modern economy
13. [25] Source A: Clearly has little time for the company, and the purpose is to attack and criticise it. It tries to get over visually the nature and extent of the Company's influence and the harm that it does. This could be cross-referenced with Source C which mentions how the company used its control over railroads to deal with rivals.
14. [25] Source B: Is much less condemnatory of the company and its methods but approaches the issue from a strictly 'commercial' point of view and might be less inclined to criticise it.
15. [25] Source C: Was written by a critic of the Company but does show a degree of balance throughout. It does start by suggesting that while the aim of reducing waste was a good idea, the methods used to attain this objective were wrong. Unlike Source A, there is balance here, but also detail that can be backed up by contextual knowledge.
16. [25] Source D: Obviously Rockefeller is going to defend his Company and its methods and place an emphasis on the 'good' that it has done. He does at least show that he is aware of some of the many criticisms made about his company and its methods with his final comment about his salesmen.
17. [25] Accept any other valid responses.