Question
What was the purpose of differential shipping rates, and how did Midwest farmers respond to them? To give larger businesses discounted rates while charging higher rates to local farmers, who responded angrily and labeled the railroad owners "robber barons." To discourage the use of railroads for transporting market goods, and small-scale farmers responded by boycotting rail transportation. To equalize transportation costs for all businesses, and small-scale farmers responded by increasing their production. To lower costs for all farmers, who responded with gratitude and support for the railroad owners.
Solution
4.2
(241 Votes)
Kent
Master ยท Tutor for 5 years
Answer
The correct answer is the first option: **To give larger businesses discounted rates while charging higher rates to local farmers, who responded angrily and labeled the railroad owners "robber barons."**Here's why:* **Differential shipping rates:** Railroads often charged smaller shippers, like individual farmers, higher rates per mile than they charged larger businesses that shipped goods in bulk. This practice was called price discrimination. Large companies could negotiate rebates and drawbacks, further lowering their costs.* **Farmer Response:** Farmers, particularly in the Midwest, were heavily reliant on railroads to get their crops to market. These discriminatory pricing practices significantly cut into their profits. Their anger and frustration led them to organize politically, forming groups like the Grange and the Farmers' Alliance. These groups advocated for government regulation of railroads and coined the term "robber barons" to describe the railroad owners who they felt were exploiting them.