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this is precisely why the disinterested that a measure shall be submitted to the friends of free institutions are demanding people, and make known their demand the introduction of the initiative and refer- in the prescribed manner within sixty or endum. They would preserve demo- ninety days of the passage of the bill, it cratic government, they would secure the must be submitted to the electorate at the ends of popular rule in an orderly, peace- ballot, when the people have a right to able and enlightened manner. The in- pass on the measure, and if their servants itiative and referendum have been in have yielded to the corrupt lobby, the operation in Switzerland for the greater corrupt boss or to the privileged interests part of the past fifty years, and have that purchase legislation through camproved immensely successful, placing paign funds, they have the opportunity that nation in the very van of the repub- of defeating the measure and thus merely lics of the world. Switzerland is known protecting themselves. Does that sugto all men as a government preëminent gest anarchy or the coming of a mob into for its orderly, progressive and enlight- the legislative halls to over-awe popular ened rule.

servants ? I think Senator Lodge is the “The shallow alarmist cry raised by first man of any reputation who has had the Senator made me indignant, as it was the hardihood to intimate that Directan insult to the intelligence of every per- Legislation fosters or could foster either son present. By the initiative the people anarchy or mob-rule.” compel legislators to act upon measures “No," replied the poet,

as a matter that they desire to have acted upon. The of fact the initiative, referendum and right legislators have thus every opportunity of recall all discourage mob-rule. They to oppose the proposed measure with all are also safeguards against the ever-growthe arguments that they can bring to bearing anarchy of selfish wealth. They are against it. If they defeat it the measure the safety-valves essential to the life of will then go before the people with the the people. As long as the people feel stamp of disapproval of the legislative that the public servant is betraying the body. Here again it will be thoroughly plain rights of all men, giving to the Few discussed through the press and on the the things that belong to All, public dishustings before the people are called upon content grows, the pot of popular indigto vote Yes or No on its adoption. Does nation boils, and there is ever-growing this extension of an educational campaign danger of popular explosions. The true and general deliberation, not only in the statesman knows that when the pot begins legislature but on the part of the press to boil it is time to lift the lid. Directand the people, smack of inconsiderate Legislation would be a lifting of the lid. action, mob rule or anarchy? Is is not It would quiet the rising tide of disconalmost inconceivable how any man prom- tent; it would render impossible the beinently before the people would place trayal of the people by corrupt partyhimself in so ridiculous and unenviable a machines. Who does not remember the light as to attempt to excite the fears of betrayal of the people in Philadelphia, in the ignorant by summoning the bogy of Cincinnati, in San Francisco ? mob-rule in connection with the initiative "Another thing should be noticed. and referendum ? For the referendum Who are fighting or opposing Directis also an equally rational and obviously Legislation ? All the associated villainies needed democratic safeguard to protect of the nation, for the good reason that the nation against the corrupt usurpa- these measures would prove effective extions of legislators acting for privileged tinguishers for these villainies. interests against the public good. Here, "No, it is the continued disregard of if a certain per cent. of the voters demand the wishes and interests of the people that is stirring the electors so profoundly, and its central hold. It is in a cabal of traitors it is the feeling of helplessness that makes composed of corrupt bosses, commercial them heart-sick-the feeling of helpless- pirates and 'kept' editors. Here is the ness in the toils of the party-boss and the real menace to the life of the republic.” controlled machine. It is easy to see

B. O. FLOWER. where the more dangerous anarchy has Boston, Mass.




The Pageant of the Throne-PowersThe voting and managing syndicate, with Smelter-Trust-A General Glance strings in their hands, like a mechanical at the Trusts.

toy, enabling them to control each comHE SMELTER-TRUST now ap

pany in the interest of all the conspiring THI proaches in the procession of the of those early oil and sugar operations

companies. The magnitude and novelty throne-powers. But before we strictly confine our attention to this trust, a few attracted such general public attention confine our attention to this trust, a few that everything since of the same or a general observations may be helpful. In the popular understanding, any big " trust," even though there was no sem

similar order has been usually called a corporation or combination is a “trust. This understanding, too, is far enough blance of a fiduciary relation or any actual right to indicate corporations” as the trusteeship. great division of the law along with “mo

Counting only the large industrial, nopolies” where we are to look for the franchise and transportation trusts, there

are 440 of them, with a floating capital of legal treatment of “trusts.” It is somewhat anomalous, however, that one of $20,379,162,511. The greater industhe oldest and largest divisions of the law

trial trusts are only eight in number and are carries the significant title of “trusts,”

as follows: The Copper-Trust, the Smeltimplying a fiduciary or confidential re

er-Trust, the Sugar-Trust, the Tobaccolation with respect to property, and yet Trust

, the Oil-Trust and the Steel-Trust

. I

Trust, the Shipping-Trust, the Beefour modern commercial “trust” implies no such relation, and is legally classified

These eight trusts have merged and

consolidated more not as a “trust” at all, but as a corpora- companies and plants; and all of them,

than 1,500 distinct tion or a monopoly.

This curious misnomer arose through except the Sugar-Trust and the Beefthe fact that the early form of the “trust,"

Trust, were created and turned loose

upon as exemplified by the Standard Oil and the country by the State of New Jersey. the Sugar-Trust, was, in fact as well as in

The par value of their stocks and bonds law, a literal “trust” where a fiduciary omitting the Beef-Trust) is $2,662,752,relation was actually established by the 100, and the Steel-Trust alone has more stockholders depositing the stock of the than half of these fabulous figures with its confederating corporations in the hands + Moody's The Truth About the Trusts, p. 11.

The total wealth in the United States, according to of certain trustees, who then became a

the census of 1900, is $94,300,000,000. * The first of this series of articles appeared in the

| Id., p. 485, etc. Mr. Moody makes the number seven and omits the Beef-Trust.

July, 1905, number of THE ARENA.


capital of $1,370,000,000. The market- morality is frequently the same which value of the stocks and bonds of the seven tempts the public servant to his downtrusts, not counting the Beef-Trust, is fall.”* $2,278,460,000.

But from the mouths of the trust-pro

moters themselves, and from one who has MORALS OF THE TRUST.

attained such eminence that he is enIf there is a necessary relation between titled to speak for his craft, we have the large corporate combinations, or the men

most convincing evidence of their moral who compose them, and a code of morals, delinquency and perversion. When askcertainly the code is not very high. In ed by the Industrial Commission whether our chapter on “The View-Point,”

he thought it was a “fair, ethical position indicated that the accepted code of morals to make the consumer pay dividends on was made by the economic needs of the $25,000,000 of over-capitalization, H. O. ruling-class. The history of the evolu- Havemeyer, head of the Sugar-Trust, tion of every dominant trust gives ample testified, under oath, as follows: evidence that this view is well sustained

“I do not care two cents for your by the facts. A great many people con

ethics. I do not know enough of them fuse magnitude of money with exalted

to apply them.” character and honor. This is generally a mistake. There is no more specific Such an answer from a child, showing solvent of character and honor than mag- so clearly a moral lesion, would lead our nitude of money. Those who would psychologists to classify it as a deplorable deceive us into making a safe asylum in case of

case of “arrested development” and to our midst for the ingratiating trust, would recommend it to competent hands for fain have us think that we can rely upon immediate treatment. Yet, through the the high character and morality of the power of money and monopoly, Mr. class of men interested in promoting the Havemeyer has so dazed and duped our trust. But why should we rely upon social psychologists that they are content them when we recall our glimpse of “high to diagnose his case as that of a great finance” as exemplified by the dominant “captain of industry.” This “captain” trusts and corporations in Colorado, and is in Colorado now (October, 1905) tryin the nation by such petrified consciences ing to excite the people to increase his as those exhibited by the Alexanders, profits by an organized effort to prevent Hydes, Depews, McCalls, McCurdys, Congress from putting the sugar from the Drydens, Rockefellers, et als ? Thus re- Philippines upon the free-list. He and minded, we are more inclined to look his disciples, including Mr. Morey, the beneath the surface, and to appreciate same gentleman who, as we have seen, the eloquent words of Governor Thomas figured with the Smelter-Trust in coercin speaking of the promoters of the Trusts: ing a settlement of the rate-fixing tele

phone suit, are deftly instructing us now, “The voice that intones the litany is while saying nothing about their own the same that commands a rise in the profits, how to save our sugar-beet interprice of grain when hunger is abroad. ests by pulling the right string on the The

pen that signs the check for the erec- Filipinos. Of course, we have forcibly tion of a church or a library is the same made these unhappy people our wards, that approves the vouchers of the lobby- and all principles of justice and equity ist. The hand that gives freely to the require us, as their guardians, to act in cause of temperance in New York is the their interest and not in our own. Yet same hand that regulates the output of the Kentucky distilleries. The influence February 21, 1899 (Sen. Jout., p. 520.


* Message on “Trusts" to Colorado Legislature, that deplores the decadence of public | Report Indus. Com., Vol. I.,

p. 118.

this “captain,” who does not give “two ground “short-cuts” by which they go cents for our ethics," is now in Colorado, "to the root of things in acquiring and backed by his unethical millions, seeking dominating the sources of supply and the for help to pull the string that will strangle raw material, in controlling shipping the Filipinos and push up the profits of rights of way, in securing exclusive benethe Sugar-Trust.

fits, rebates on large shipments, beneficial Smooth are the lieutenants he has al- legislation, etc.

These so-called ready enlisted, and it may not be long short-cuts' in business methods are made before we shall have another proof that in many ways, and it may be that men are economics make our morals; and sugar- sometimes obliged to break through the beet raisers may come to see that it is all lines of abstract justice to achieve their right to promote their industry by in- ends."* That is precisely the point I am ducing a great national guardian to betray making, and it is frankly confessed by its trust to its helpless wards. But there such an adroit expounder of the trust as are counter-economics now at work, and Mr. Moody. just at present they are a powerful in- These imposing trust-promoters are fluence against the cunning designs of continually “breaking through the lines the Sugar-Trust.

of abstract justice," as exemplified in this Colorado-made sugar is sold cheaper series of papers by the Franchise-Trust, outside the state than at the plant where Coal-Trust, Smelter-Trust and the Railit is made. Beet-sugar made at Love- roads, and as exemplified in the nation land is sold in Denver at the New York by the Beef-Trust, Insurance-Trust, all price plus the freight between New York other trusts, and also by the Railroads. and Denver. If you backed your wagon They care nothing for social justice, and into the Loveland factory for a load of spurn it like a cast-off garment. When sugar the price you would pay would be they do so, Mr. Moody assures us “that the New York price plus the freight to society is apt to endorse their methods Denver, and plus the freight from Denver on the general theory that the end justifies to Loveland. This fact has already ar- the means.”+ rested general attention and the people, If this is so, then the trust-magnate has if not aroused, still are suspicious and already reached a stage of irresponsible afraid of this trust. They see the hand- depravity.

depravity. He is a free-lance in morals, writing on the wall and know it will only duly licensed to use either stiletto or club, be a short time before the Sugar-Trust as he may determine; the one or the other will become one of the throne-powers of will secure his end. In my opinion, howthe state, and like the Franchise, Smelter ever, society is not “apt to endorse their and Coal-Trusts will be a constant menace methods.” One who says otherwise forto social order and justice. We have gets or ignores as an essential part of thus digressed a moment on the sugar- society the Socialists, Single-Taxers, Labeet industry to illustrate the inevitable bor-Unionists, Roosevelt Republicans and social tendencies of an enormous trust Bryan Democrats. Society is in open controlled by a “captain ” who does not revolt against the methods of the trust, "give two cents for our ethics and does but reserves its final rebuke until it may not know enough of them to apply them.” learn how it may be best administered.

This total absence of moral uplift in Even outside of the forces that make for trust-promoters is not at all peculiar to reform, this revolt is also strikingly apparMr. Havemeyer. It is so obviously in ent. I quote from an address on “Monkeeping with the end to be achieved by eyphobia" by ex-Assistant Attorney-Genevery trust, that even this early in their eral James M. Beck, before the recent career they have come to have a code of

* Moody's The Truth About the Trusts, p. 17. morals of their own. They have under- † Moody's The Truth About the Trusts, p. 17.

New York State Bankers' Association: we are speaking has been accumulated “The signs of the times indicate a grow- threatens utterly to destroy it. One who

at the expense of this equality, and now ing feeling of social discontent which finds

can bring hundreds of millions to an units chief expression in indiscriminate abuse dertaking, and, by a little combination, of wealth. This agitation is not confined to the ignorant, the envious or the malic- billions, has a power which, in comparison

can carry the capital invested into the ious. The recent commencement season

with that of men of ordinary means, gives unmistakably indicated that the educated him complete control of large undertakmen are disinterestedly considering the phenomena of business in their moral to securing these forms of enterprise, it phenomena of business in their moral ings. Not only does this mastery extend aspects. Their deliverances teem with carries with it the ability of making them, woeful jeremiads at the evil of the times under almost any circumstances, profitand the decay of morals. Primarily, at able. No competition and no fear of least among the conscientious critics of

competition accompany the development the times, the present discontent is due of business of this order, and unless the to a profound dissatisfaction with the code conception itself was a piece of folly the of commercial morals. Abuses of trusts

profits of a monopoly accrue to it at every have run riot."'*

stage. Whether it is steel producWords like these sounded in the ears tion or the stock market that is under of bankers, and many others of similar consideration, the multimillionaire creates import that space forbids us to quote, are

the conditions under which he operates. cogent proof that society is not endorsing Equality of opportunity in business rethe “short-cut” methods of trusts; at lations has suffered a sudden overthrow least, not those methods that "break which the future will easily complete. through abstract justice."

The strongest antagonism to social decay A most effective statement of the popu- should be found in Christian faith, but lar revolt against trust-methods and irre- faith slowly bends to the conditions which sponsible wealth comes from the still virile surround it. Thus economics make repen of the venerable John Bascom. Heligion. The Greek church brings to is now of Williams College, but when the Russia no liberty. Our own religion writer knew him and sat entranced by his goes but a little way in carrying sympaearnestness and erudition, he was then thetic aid to the working-class, or in the president of the University of Wis- arousing a sense of the service due from consin.

those who lead business. It has been no A recent issue of The Independent con- strange spectacle with us to find one tains an epoch-making discourse by Dr. ordering his economic activity in a method Bascom,t from which we quote the fol- utterly subversive of the kingdom of lowing:

heaven, and yet cherishing some detached “The multimillionaire cannot be a notion of finding his way into that kingmember a free state on equal terms dom. He has provided himself with a with his fellow-citizens. . . . The most night-key, so that, an opportune moment obvious and immediately serviceable of arising, he may leave his business comequalities which go with free institutions panions in the street, and drop into this is equality in economic opportunities. quiet home of the faithful. ... The ReNo other quality concerns so many ac- publican party is fast becoming the bondtions, or actions on which so large a share man of plutocracy. Its motto is to “stand of welfare depends. The wealth of which pat,” careless of discussion or vindica

tion. It has so long prospered by con* Associated Press dispatches of Bankers’ Convention, at Frontenac, N. Y., July 13, 1905.

cession that inquiry and resistance are † New York, March 30, 1905.

foreign to its spirit. The temper of Pres

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