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ident Roosevelt, alien to this altitude, one of the most important economic inmay make slight fissures and chip off terests of the state. All our agricultural thin flakes. The Democratic party has and commercial prosperity was originally broken midway, one extremity pluto-founded on the mines. They gave us a cratic, the other democratic. There is home market for the output of shop, as yet much hammering here and there, factory and farm, and they gave us a and searching the face of the rock, but product, too, that was sold or sought in the moment a workable seam shall ap- every market on the globe. It is not pear many wedges are ready to be driven strange, then, that the legislation of the home. This is made obvious by the un- state should single out gold and silverrest of workmen, by scattered revolt in mining for special favor. But it has now many states, as in Wisconsin; by the carried such favor to the extreme and number, radical character and large vote there is serious and just complaint from of secondary parties at the last presiden- other large interests prejudicially affected. tial election. Our forecast is that one Upon this phase of the subject the voice of those sudden changes, which are sure of history has an expressive warning, and to arise in times of wide pressure, will it tells us that no industry of any kind can combine these forces of resistance, and be made the special “ pet” or concern of with them sweep the field for another deal government without manifesting, if its in human rights.”

development is successful, at least three

distinct stages: first, suppliance; second, As gloomy as the social outlook some

prosperous dependence, and third, arrotimes is, personally I am ever hopeful of gant' dictation. This is certainly true the outcome and never lose faith in the of all the industries fed by a protective ultimate triumph of social justice. In tariff, and it is equally true where the the end the people are bound to prevail

. legislative food is served in the form of An absolute democracy is ultimately in- local tax favors or subsidies. evitable. I do not despair of curbing,

In Colorado metal-mining is still a or at last of even destroying, the power special pet,--a young giant fed and reared of the trusts. Their unbridled license

on special privilege. Under article 10, secis but for a day. Their power is in the tion 3, "mines and mining-claims bearspecial privileges and monopoly they en- ing gold, silver and other precious metals joy. This power has all the hateful ele- (except the net proceeds and surface imments of oppressive taxation when, through provements thereof)” were exempt from watered stocks and bonds and secret re- taxation for the period of ten years after bates and governmental favors-legisla- the adoption of the state constitution. tive and judicial—they can lay tribute This time-limit expired in 1886, and in upon the community far in excess of their the following year an act was passed by service, and take money from the many to which a mine or mining-claim was valued make profits for the few. This is another for revenue purposes at a sum not exform, and but lightly veiled, of the “farm- ceeding one-fifth of the gross proceeds ing out of the revenues” and of letting a in dollars and cents derived therefrom favored few enjoy the exclusive taxing in the preceding fiscal year, and if such functions of the government. A power proceeds were $1,000 or less they were so many-sided and so dangerous should not taxed.* be studied and understood, and the Smel- This act remained in force until 1901ter-Trust will now afford us an excellent 02. At this time a legislative attempt opportunity for a study so important. was made to take away the special privi

lege enjoyed by metal mines and to re

quire them to pay taxes on the same basis We are now to deal with the oldest and *2 Mills Ann. Stat., Sec. 3,224.


and under the same laws as the iron, coal, palatable. Under the operation of the quarry and agricultural and other indus- foregoing special privileges secured by tries were required to pay. The mine- legislative enactment, by the methods owners and operators, with the help of mentioned above, the metal-mining inthe Smelter-Trust, organized a powerful dustry was, until 1902, only taxed on onelobby and appeared at both the regular fifth of its output and four-fifths were session of 1901 and the special session of free; and since 1902 it has been taxed 1902, and by the vast influence they were on but one-fourth of its output and threeable to wield and by threats to close down fourths have likewise escaped scot-free. all the mines of the state, they held in check Meantime the heavy burden of taxation the legislative hand and continued to en- has been borne by the small mine-owners joy their special privilege. By the new and the other great and growing indusact passed in 1902 and which is still in tries of the state. force, mines were divided into two classes: Thus, through legislative favors, we those whose gross production exceeded see the evolution of classes among the $5,000 were called producing mines, and mine-owners of the state; and the next all others non-producing mines. The step to be seen in a moment is the natural latter, which generally belong to the mul- alliance between the large mine-owners titude of common people, were to be and the Smelting-Trust. And here we "assessed and taxed like other property.”* pause an instant to reflect. But the producing mines owned by millionaires and the great mining corpora

A RETROSPECT. tions interested in increasing dividends What a vast change has been wrought and profits even though thereby provok- in the mining industry of the West, since ing industrial war, these producing mines, George Jackson, on the 7th day of Janumost able to take care of themselves and ary, 1859, trying to thaw out the gravel least needing legislative subsidy, were by his big fire on Chicago creek, discovsuccessful in still holding on to the special ered, near the present thriving city of privilege denied at last to the small mine- Idaho Springs, that celebrated “nugget owners but still preserved almost intact of coarse gold.” to themselves. It was enacted that "for In the summer following came the big the purpose of assessment for taxation rush to “Pike's Peak,” with its romances (the assessor shall) value such producing and disappointments; but thirty years mine at a sum equal to one-fourth of the later this towering peak gave up its secret, ... gross proceeds for (the) preceding and the world then beheld Cripple Creek year for any such mine”; provided, that and Victor nestled in its western folds. where the net proceeds for any such pre- Until the spring of 1899 there was not a ceding year exceeds one-fourth of the trust smelter in the state, and there were gross proceeds, then any such producing competitive ore-buyers in every prospermine shall be valued at the amount of such ous camp, and a large number in Denver, net proceeds.† Under this act, if the gross Pueblo and Leadville. A mere prosproceeds of a mine were four million dollars pector then with but a single ton of ore and the net proceeds one million and one could sell it, and generally with a chance dollars, the one million and one alone to take his choice of bids. Every large would be taxed, and three millions would mining-center had one or more smelters or be free. But the above proviso is of reduction works, and such plants, too, small practical value in raising revenue; were numerous in the smaller towns of still it served a good turn in sufficiently the state. Improved methods and comsugar-coating the measure to make it petition were continually bringing down men something like a fair proportion of not we can well believe this will eventually the general prosperity. There then was be a Beef-Trust act. a choice of mills and prices, and the men But to return. The American Smelthad a choice as to employers and wages. ing and Refining Company, as the SmelThat happy day is now no more; the ter-Trust is legally called, was born at its competitive ore-buyers have disappeared New Jersey home April 4, 1899, and in from the state; the mine-owners are now less than a month it swooped down upon at the mercy of the trust and the miner is the mine-owners and miners of Colorado at the mercy of both.

the cost of treatment and mine-owners *3 Mills Ann. Stat., 2d ed., Sec. 3, 890. + 3 Mills Ann. Stat., 2d ed., Sec. 3, 885.

and miners then shared with the mill

and the West and entered upon its dual

career of professing itself as a benefactor THE COMING OF THE SMELTER-TRUST.

of the people, and at the same time demNew Jersey foisted the Smelting-Trust onstrating itself as a virulent destroyer. upon us, and has foisted upon the entire The year of its birth is quite significant, country a greater progeny of predatory because that year, 1899, and the precedcorporations than any other state in the ing year, 1898, constitute the most wonunion. A natural parent is expected and derful birth-period of trusts in all the required to nurture, rear and discipline commercial annals of the world. The his offspring, but this unnatural parent New York Investor says* that in those has sent its corporate children adrift as two years there were 562 trusts brought soon as they were born; and wholly be- into being with the fabulous total capital reft of parental instruction and restraint, of over $8,000,000,000. Even then there they have gone as tramps through the were three and one-half million people country, and they have commercially and compelled to look to trusts for employindustrially looted, pillaged and oppressed ment, and it is not improbable that the wherever they have gone.

number now impressed into service for Just before the Smelter-Trust was born, the trusts is at least one-third of the grand instead of the seven wise men from the total of thirty million people engaged in East, coming to worship it, we had on the productive labor in the United States. contrary the usual commercial prevarica- When the American Smelting and Retion, and men of prominence and sup- fining Company was first organized in posed probity joined in denials of knowl- 1899, it started with eighteen plants, edge of the coming event; and they did sevent of which were in Colorado, and not even apologize or blush when the its authorized capital stock was $65,000,event soon happened with their own 000, of which $54,800,000 was issued names signed to the midwife's contract, one-half preferred and one-half common. executed months before. This is in good The preferred stock of $27,400,000 carform with the prevalent morals of cor- ried 7 per cent. dividends. The operaporations and trusts. We recently saw tions of the company are now carried on some of our best men in Denver deny in the following states: California, Colothat Armour and others of the Beef-Trust rado, Illinois, Missouri, Montana, Newere negotiating with them for the pur- braska, Nevada, Pennsylvania, Tenneschase of our local packing-plants. Soon see, Texas and Utah; also in old Mexico the purchase was confirmed, however, and South America. It is closely allied and we have now a new trust upon our with the interests which control the Amerihands and its coming has an ugly portent for our stockmen, if its first act be, as

* Issue of December 30, 1899.

+ The Colorado plants were as follows: Grant proclaimed, the acquisition of a million

and Globe at Denver, San Juan at Durango, Puebacres of Union Pacific Railroad lands in lo Smelting and Refining Company at Pueblo, and Wyoming on which to raise its own range- Chicago and Aurora at Leadville.

the Bi-Metallic, Consolidated Kansas City, and the cattle for market. Whether first act or | Report Indus. Com., Vol. XIII., p. 94.


and you

Linseed Company (Linseed-Oil consolidating companies to take as much Trust), the National Lead Company as they liked of the preferred stock at (Lead-Trust), and the United Lead Com- par, and to have a bonus of 70 per cent. pany. It controls the American Smelters in common stock with each subscription. Steamship Company, operating steamers He then tells us that “in getting together to carry mine and mill-products between an organization of that kind you find a New York and Mexico.*

lot of people that claim to have been a The man who organized the Smelter- very great benefit to the organization; Trust vouched for the effectiveness of his who swarm around the great combination work in the following words:

like flies around a sugar-barrel; and then

it becomes necessary to make things com“My impression is that, leaving out fortable for everybody and to settle up the Mexican interest of the Guggenheims with them; and you settle up with one and counting their two smelters on this

man for so much


settle side of the line, it (the percentage of busi- with another for so much stock, and you ness controlled by the company) would

get along with them the best you can.”'$ amount to about 85 per cent. of the entire

Then the “round-up” comes, not the smelting business of the country.”

“round-up," however, familiar to our This promoter further testified:

stockmen in the mountains, but still a

round-up” that answers the same pur“Q. “Does this constitute a monopoly pose and enables each participant to of the business in the United States now, cut out" the particular brand or propor nearly so ?'

erty he claims as his own. At this trust "A. With the Guggenheims it would. round-up” there congregated the offiWell, there may be small concerns that cers of the various vendor companies, we do not know about doing a small busi- with all their important airs and with ness for a few local men here and there, their still more important deeds of conbut the large commercial smelting busi- veyance and with checks and securities ness would be all included.'”

ready to carry out their respective conwhich he refers relates to gold, silver and this “round-up,” too, as important as the He then explains that the smelting to spiring agreements with the American

Smelting and Refining Company. At lead-ores and that copper and zinc are

many corporation officers, were also the by-products. In the account given by Mr. Chapman the high-priests at this interesting func

many corporation attorneys. They were of the organization of this trust, we see

tion, and save for the fact that they each the options gathered up from all the confederating companies and taken to Chap- the birth of a great commercial trust,

had the duty of a wet-nurse to perform at man's bank at No. 80 Broadway, New their

legal service was ordinary and unYork. terms and prices and their general ad- eventful, yet they all went away with selfjustment.

satisfied opinions and with well-filled The incorporation of the American Smelting and Refining Com- pocket-books, and like the fabled Min

erva, the infant of their mighty brains, pany is then rehearsed with its capital, etc., and the privilege extended to the full-grown, sprang into instant being.

pany; (2) Continental Tobacco Company; (3) * Moody's The Truth About the Trusts, p. 45, etc. Pittsburgh Coal Company: (4) American Malting + E. R. Chapman, Report Indus. Com., Vol. XIII., Company: (5) Pittsburgh Brewing Company; (6)

Cleveland & Sandusky Brewing Company; (7) EmIId., p.

pire Steel & Iron Company; (8) American SmeltReport Indus. Com., Vol. XIII., p. 96. Mr. ing & Refining Company. He further says he is a Chapman assures us of his familiarity with the or- director of the Tennessee Iron & Railroad Comganization of trusts by saying he financed the fol- pany and of the Tennessee Coal Creek Mining & lowing industrials: (1) Brooklyn Union Gas Com- Manufacturing Company. Id., p. 93.

p. 97.


FISHING FOR THE GUGGENHEIMS. pull and a pull all together they at last

landed their catch, and to their utter disWith the Smelter-Trust thus born into may and amazement they found they had an environment robbing it of heart and caught in the laughing streams of Colosoul, and rich only in the tawdry embel- rado, not the expected frisky trout of the lishments of millionaire bluster and pluck- mountains, but seven great whales, and ings, and bereft of the benefit of the tute- still another—the parent-whale of all. lage and discipline of a gradual growing Thus it was that Meyer Guggenheim from youth to manhood, this wanton and his seven sons were fished out of offspring of frenzied “commercialism”

commercialism” Colorado waters and landed as whales fell at once into the hands of the “cap- in the absolute control of the great Amertains of industry.” Knowing a good ican Smelter-Trust. The capital stock thing and having 85 per cent. of it, the was increased from sixty-five million to longing of these “captains” for the other one hundred million dollars—the thirty15 per cent. was not to be abated. They five millions of increase having been put angled for the Guggenheims with their on the hook as bait; and in the board of smelters in Mexico and elsewhere, and directors of the trust we now see the House especially for their “ Philadelphia” smel- of Guggenheim royally sitting as the imter at Pueblo. But Simon, with his six perial Mikado. brothers and old Meyer, the father of Here are the names to remember when them all, were no ordinary fish to be we hail, as now we must, the reigning caught by the first hook that came in dynasty of the world's great mining and sight. Moreover, they were petted and smelting industry: Meyer Guggenheim, feasted by all the press and people of the father, recently deceased; (1) Daniel state, who like the savage with his totem, Guggenheim, president and chairman of ignorantly supposed they might thus the executive committee; (2) Simon Gugdrive away the devil-like fisherman from genheim; (3) Isaac Guggenheim; (4) his successful invasion of their waters. Solomon Guggenheim; (5) Murry GugBut despite the people and their hysterics, genheim; (6) Benjamin Guggenheim; the fisherman still fished, and although (7) William Guggenheim. the people did not know, still he knew And thus it came to pass that the Amerthere was always a nibble at his hook. ican Smelting and Refining Company At last he changed the bait, and with the succeeded in its fishing, and secured its angler's best art the hook was again 100 per cent. of the business in the United whipped into the ripples and there soon States of smelting ores of lead, silver and was heavy pulling on the line. The line gold, and thereby acquired and still exhad to be reinforced; the whole board ercises an absolute monopoly.* of directors had to help, and they also

(To be continued.) called to their assistance the Chancery

J. WARNER MILLS. Court of New Jersey, and with a steady Denver, Colo.

* This is not entirely accurate as the Report of the the Trust and the capital was increased fifty million Industrial Commission informs us (Vol. XIX., p. dollars for the purpose. The Guggenheims, thus 229) that the Guggenheim absorption resulted in have a clear corporate control of the Trust, -eightyconsolidating practically all the silver-lead smelting five out of one-hundred and fifty millions of capital. interests in the United States, except the Balbach The Federal Mining Company operating in the Smelting and Refining Co., Newark, N. J.; the Cour d'Alenes of Idaho and producing 21 per cent. Selby Smelting and Lead Co., San Francisco, Cal.; of all the lead in the country is reported in the Puget Sound Reduction Co., Everett, Wash.; and hands of the Trust. Simon Guggenheim is presia plant at Tacoma, Wash. Our space will not dent of the Western Mining Co., owning and operatpermit us to enter into a consideration of the sub- ing important mines, and the Trust has large stock sidiary companies connected with the Smelter Trust holdings in the American Smelters Securities Co., further than already mentioned above. The valu- with its $77,000,000 of capital. The recent purable mines and plants of the Guggenheim Explora- chase by the Trust of more than 640 cres of coption Company have heretofore been absorbed by per mines in Bingham cañon, Utah, has brought

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