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How did US Steel avoid the anti-cartel lawsuits that plagued Rockefeller?

a) US Steel cooperated with the government and willingly broke up its conglomerate structure.
b) US Steel diversified its business to avoid being classified as a monopoly.
c) US Steel successfully lobbied the government to change anti-trust laws.
d) US Steel maintained close ties with political leaders to avoid legal challenges.

User HUSTEN
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Final answer:

US Steel avoided anti-cartel lawsuits through vertical integration, purchasing and controlling every part of the steel production process, rather than the trust model used by Rockefeller. They set lower prices due to efficiencies and avoided direct conflict with the Sherman Anti-Trust Act.

Step-by-step explanation:

The question pertains to how US Steel managed to avoid anti-cartel lawsuits that affected other large businesses like Rockefeller's Standard Oil. Unlike Rockefeller, who faced substantial legal issues due to his monopolistic practices, US Steel avoided these challenges through different strategies. US Steel's approach was to integrate vertically, purchasing and controlling all aspects of the steel production process. This strategy was different from Rockefeller’s method of controlling businesses through trust.

While Rockefeller's Standard Oil created a trust to hold stocks of various companies to dodge direct ownership laws, US Steel, under the leadership of Andrew Carnegie, foresaw the importance of owning resources, transportation, and production processes outright.

It meant they could set lower prices than competitors and dominate the market without running afoul of the Sherman Anti-Trust Act as overtly as the Standard Oil Trust had. Carnegie's strategy was vertical integration of the industry; by maintaining control over each step from raw material to finished product, US Steel ensured efficiency and profitability.

It's also pertinent to acknowledge that, during this period, some businesses began to seek a rapport with the government, understanding its potential to promote stability and buffer relations between labor and management. The relationship between politics and business played a role in how corporations, including US Steel, managed to navigate the era of anti-monopoly legislation.

User J Burnett
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