ident Roosevelt, alien to this altitude, may make slight fissures and chip off thin flakes. The Democratic party has broken midway, one extremity plutocratic, the other democratic. There is as yet much hammering here and there, and searching the face of the rock, but the moment a workable seam shall appear many wedges are ready to be driven home. This is made obvious by the unrest of workmen, by scattered revolt in many states, as in Wisconsin; by the number, radical character and large vote of secondary parties at the last presidential election. Our forecast is that one of those sudden changes, which are sure to arise in times of wide pressure, will combine these forces of resistance, and with them sweep the field for another deal in human rights."

As gloomy as the social outlook sometimes is, personally I am ever hopeful of the outcome and never lose faith in the ultimate triumph of social justice. In the end the people are bound to prevail. An absolute democracy is ultimately inevitable. I do not despair of curbing, or at last of even destroying, the power

of the trusts. Their unbridled license is but for a day. Their power is in the special privileges and monopoly they enjoy. This power has all the hateful elements of oppressive taxation when, through watered stocks and bonds and secret rebates and governmental favors-legislative and judicial-they can lay tribute upon the community far in excess of their service, and take money from the many to make profits for the few. This is another form, and but lightly veiled, of the "farming out of the revenues" and of letting a favored few enjoy the exclusive taxing functions of the government. A power so many-sided and so dangerous should be studied and understood, and the Smelter-Trust will now afford us an excellent opportunity for a study so important.

THE SMELTER-TRUST.

We are now to deal with the oldest and

one of the most important economic interests of the state. All our agricultural and commercial prosperity was originally founded on the mines. They gave us a home market for the output of shop, factory and farm, and they gave us a product, too, that was sold or sought in every market on the globe. It is not strange, then, that the legislation of the state should single out gold and silvermining for special favor. But it has now carried such favor to the extreme and there is serious and just complaint from other large interests prejudicially affected. Upon this phase of the subject the voice of history has an expressive warning, and it tells us that no industry of any kind can be made the special "pet" or concern of government without manifesting, if its development is successful, at least three distinct stages: first, suppliance; second, prosperous dependence, and third, arrogant dictation. This is certainly true of all the industries fed by a protective tariff, and it is equally true where the legislative food is served in the form of local tax favors or subsidies.

In Colorado metal-mining is still a special pet, a young giant fed and reared on special privilege. Under article 10, section 3, "mines and mining-claims bearing gold, silver and other precious metals (except the net proceeds and surface improvements thereof)" were exempt from taxation for the period of ten years after the adoption of the state constitution. This time-limit expired in 1886, and in the following year an act was passed by which a mine or mining-claim was valued for revenue purposes at a sum not exceeding one-fifth of the gross proceeds in dollars and cents derived therefrom in the preceding fiscal year, and if such proceeds were $1,000 or less they were not taxed.*

This act remained in force until 190102. At this time a legislative attempt was made to take away the special privilege enjoyed by metal mines and to require them to pay taxes on the same basis *2 Mills Ann. Stat., Sec. 3,224.

and under the same laws as the iron, coal, quarry and agricultural and other industries were required to pay. The mineowners and operators, with the help of the Smelter-Trust, organized a powerful lobby and appeared at both the regular session of 1901 and the special session of 1902, and by the vast influence they were able to wield and by threats to close down all the mines of the state, they held in check the legislative hand and continued to enjoy their special privilege. By the new act passed in 1902 and which is still in force, mines were divided into two classes: those whose gross production exceeded $5,000 were called producing mines, and all others non-producing mines. The latter, which generally belong to the multitude of common people, were to be "assessed and taxed like other property."* But the producing mines owned by millionaires and the great mining corporations interested in increasing dividends and profits even though thereby provoking industrial war, these producing mines, most able to take care of themselves and least needing legislative subsidy, were successful in still holding on to the special privilege denied at last to the small mineowners but still preserved almost intact to themselves. It was enacted that “for the purpose of assessment for taxation (the assessor shall) value such producing mine at a sum equal to one-fourth of the gross proceeds for (the) preceding year for any such mine"; provided, that where the net proceeds for any such preceding year exceeds one-fourth of the gross proceeds, then any such producing mine shall be valued at the amount of such net proceeds. Under this act, if the gross proceeds of a mine were four million dollars and the net proceeds one million and one dollars, the one million and one alone would be taxed, and three millions would be free. But the above proviso is of small practical value in raising revenue; still it served a good turn in sufficiently sugar-coating the measure to make it

*3 Mills Ann. Stat., 2d ed., Sec. 3, 890. +3 Mills Ann. Stat., 2d ed., Sec. 3, 885.

palatable. Under the operation of the foregoing special privileges secured by legislative enactment, by the methods mentioned above, the metal-mining industry was, until 1902, only taxed on onefifth of its output and four-fifths were free; and since 1902 it has been taxed on but one-fourth of its output and threefourths have likewise escaped scot-free. Meantime the heavy burden of taxation has been borne by the small mine-owners and the other great and growing industries of the state.

Thus, through legislative favors, we see the evolution of classes among the mine-owners of the state; and the next step to be seen in a moment is the natural alliance between the large mine-owners and the Smelting-Trust. And here we pause an instant to reflect.

A RETROSPECT.

What a vast change has been wrought in the mining industry of the West, since George Jackson, on the 7th day of January, 1859, trying to thaw out the gravel by his big fire on Chicago creek, discovered, near the present thriving city of Idaho Springs, that celebrated "nugget of coarse gold."

In the summer following came the big rush to "Pike's Peak," with its romances and disappointments; but thirty years later this towering peak gave up its secret, and the world then beheld Cripple Creek and Victor nestled in its western folds. Until the spring of 1899 there was not a trust smelter in the state, and there were competitive ore-buyers in every prosperous camp, and a large number in Denver, Pueblo and Leadville. A mere prospector then with but a single ton of ore could sell it, and generally with a chance to take his choice of bids. Every large mining-center had one or more smelters or reduction works, and such plants, too, were numerous in the smaller towns of the state. Improved methods and competition were continually bringing down the cost of treatment and mine-owners and miners then shared with the mil'

men something like a fair proportion of the general prosperity. There then was a choice of mills and prices, and the men had a choice as to employers and wages. That happy day is now no more; the competitive ore-buyers have disappeared from the state; the mine-owners are now at the mercy of the trust and the miner is at the mercy of both.

THE COMING OF THE SMELTER-TRUST.

New Jersey foisted the Smelting-Trust upon us, and has foisted upon the entire country a greater progeny of predatory corporations than any other state in the union. A natural parent is expected and required to nurture, rear and discipline his offspring, but this unnatural parent has sent its corporate children adrift as soon as they were born; and wholly bereft of parental instruction and restraint, they have gone as tramps through the country, and they have commercially and industrially looted, pillaged and oppressed wherever they have gone.

Just before the Smelter-Trust was born, instead of the seven wise men from the East, coming to worship it, we had on the contrary the usual commercial prevarication, and men of prominence and supposed probity joined in denials of knowledge of the coming event; and they did not even apologize or blush when the event soon happened with their own names signed to the midwife's contract, executed months before. This is in good form with the prevalent morals of corporations and trusts. We recently saw some of our best men in Denver deny that Armour and others of the Beef-Trust were negotiating with them for the purchase of our local packing-plants. Soon the purchase was confirmed, however, and we have now a new trust upon our hands and its coming has an ugly portent for our stockmen, if its first act be, as proclaimed, the acquisition of a million acres of Union Pacific Railroad lands in Wyoming on which to raise its own range

cattle for market. Whether first act or

not we can well believe this will eventually be a Beef-Trust act.

But to return. The American Smelting and Refining Company, as the Smelter-Trust is legally called, was born at its New Jersey home April 4, 1899, and in less than a month it swooped down upon the mine-owners and miners of Colorado and the West and entered upon its dual career of professing itself as a benefactor of the people, and at the same time demonstrating itself as a virulent destroyer. The year of its birth is quite significant, because that year, 1899, and the preceding year, 1898, constitute the most wonderful birth-period of trusts in all the commercial annals of the world. The New York Investor says* that in those two years there were 562 trusts brought into being with the fabulous total capital of over $8,000,000,000. Even then there were three and one-half million people compelled to look to trusts for employment, and it is not improbable that the number now impressed into service for the trusts is at least one-third of the grand total of thirty million people engaged in productive labor in the United States.

When the American Smelting and Refining Company was first organized in 1899, it started with eighteen plants, seven† of which were in Colorado, and its authorized capital stock was $65,000,000, of which $54,800,000 was issued one-half preferred and one-half common. The preferred stock of $27,400,000 carried 7 per cent. dividends.‡ The operations of the company are now carried on in the following states: California, Colorado, Illinois, Missouri, Montana, Nebraska, Nevada, Pennsylvania, Tennessee, Texas and Utah; also in old Mexico and South America. It is closely allied with the interests which control the Ameri

*Issue of December 30, 1899.

†The Colorado plants were as follows: Grant and Globe at Denver, San Juan at Durango, Pueblo Smelting and Refining Company at Pueblo, and Chicago and Aurora at Leadville. the Bi-Metallic, Consolidated Kansas City, and the

Report Indus. Com., Vol. XIII., p. 94.

FISHING FOR THE GUGGENHEIMS.

With the Smelter-Trust thus born into an environment robbing it of heart and soul, and rich only in the tawdry embellishments of millionaire bluster and pluckings, and bereft of the benefit of the tutelage and discipline of a gradual growing from youth to manhood, this wanton offspring of frenzied "commercialism" 'commercialism" fell at once into the hands of the "captains of industry." Knowing a good thing and having 85 per cent. of it, the longing of these "captains" for the other 15 per cent. was not to be abated. They angled for the Guggenheims with their smelters in Mexico and elsewhere, and especially for their "Philadelphia" smelter at Pueblo. But Simon, with his six brothers and old Meyer, the father of them all, were no ordinary fish to be caught by the first hook that came in sight. Moreover, they were petted and feasted by all the press and people of the state, who like the savage with his totem, ignorantly supposed they might thus drive away the devil-like fisherman from his successful invasion of their waters. But despite the people and their hysterics, the fisherman still fished, and although the people did not know, still he knew there was always a nibble at his hook. At last he changed the bait, and with the angler's best art the hook was again whipped into the ripples and there soon was heavy pulling on the line. The line had to be reinforced; the whole board of directors had to help, and they also called to their assistance the Chancery Court of New Jersey, and with a steady

*This is not entirely accurate as the Report of the Industrial Commission informs us (Vol. XIX., p. 229) that the Guggenheim absorption resulted in consolidating practically all the silver-lead smelting interests in the United States, except the Balbach Smelting and Refining Co., Newark, N. J.; the Selby Smelting and Lead Co., San Francisco, Cal.; Puget Sound Reduction Co., Everett, Wash.; and a plant at Tacoma, Wash. Our space will not permit us to enter into a consideration of the subsidiary companies connected with the Smelter Trust further than already mentioned above. The valuable mines and plants of the Guggenheim Exploration Company have heretofore been absorbed by

pull and a pull all together they at last landed their catch, and to their utter dismay and amazement they found they had caught in the laughing streams of Colorado, not the expected frisky trout of the mountains, but seven great whales, and still another—the parent-whale of all.

Thus it was that Meyer Guggenheim and his seven sons were fished out of Colorado waters and landed as whales in the absolute control of the great American Smelter-Trust. The capital stock was increased from sixty-five million to one hundred million dollars-the thirtyfive millions of increase having been put on the hook as bait; and in the board of directors of the trust we now see the House of Guggenheim royally sitting as the imperial Mikado.

Here are the names to remember when we hail, as now we must, the reigning dynasty of the world's great mining and smelting industry: Meyer Guggenheim, father, recently deceased; (1) Daniel Guggenheim, president and chairman of the executive committee; (2) Simon Guggenheim; (3) Isaac Guggenheim; (4) Solomon Guggenheim; (5) Murry Guggenheim; (6) Benjamin Guggenheim; (7) William Guggenheim.

And thus it came to pass that the American Smelting and Refining Company succeeded in its fishing, and secured its 100 per cent. of the business in the United States of smelting ores of lead, silver and gold, and thereby acquired and still exercises an absolute monopoly.*

the Trust and the capital was increased fifty million dollars for the purpose. The Guggenheims thus have a clear corporate control of the Trust,-eightyfive out of one-hundred and fifty millions of capital. The Federal Mining Company operating in the Cœur d'Alenes of Idaho and producing 21 per cent. of all the lead in the country is reported in the hands of the Trust. Simon Guggenheim is president of the Western Mining Co., owning and operating important mines, and the Trust has large stock holdings in the American Smelters Securities Co., with its $77,000,000 of capital. The recent purchase by the Trust of more than 640 acres of copper mines in Bingham cañon, Utah, has brought