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Was it a belated expression of sympa- interest or local prejudice, one might put thy with the Boers, who had yielded up the query: In what manner does admistheir property and their lives in defence sion to statehood with its right of suffrage of liberty?

and self-government “deprive you of Was it to applaud the Campbell-Ban- your liberty,” even though it be in connerman ministry for prohibiting the fur- junction with another territory? ther importation of slaves—Chinese cool- Is human liberty a question of numbers ? ies-into South Africa ?

Is self-government a matter of area ? Was it even an appeal for them to take Do the people of Nevada enjoy selfmeasures to prevent their being still fur- government because there are but fifty ther despoiled by the trusts and other thousand of them, while those of Rhode privileged interests ?

Island cannot possess it because they Oh, no! Nothing so foolish; nothing number half a million ? Or, is it that the so idealistic as that was the cause of the inhabitants of Rhode Island have self“riotous enthusiasm.”

government because that state has but The occasion was a meeting to protest 1,200 square miles, but the people of against “joint-statehood,” i. e., against Texas can never possess it owing to that the admission of New Mexico and Arizona state being two hundred times as big ? as one state. This being what one of the If not, then why all this perfervid oraspeakers described as “an infamous plan tory? Why does Mayor Rose of Milto deprive Arizonans of their liberty.” waukee declare that "the spirit of indi

“Scratch a Russian,” it is said, “and vidual liberty is smothered ” ? you will find a Tartar.'

The same dispatch which brings us the With more unerring accuracy, it might account of this meeting reveals (uninbe said, “Scratch a blatant patriot and tentionally, I assume) the motives which you will find an exploiter.” Forever and animate those who are preaching sedition, aye, this has been the record of history threatening armed resistance by the peoand it finds its exemplification in current ple of Arizona, as it states that “Mayor affairs as in those of the past. To listen Rose has extensive mining interests near to these vociferous patriots one would Tucson.” imagine that the greatest and most funda- While this suggests it does not throw mental principles of human liberty and the fullest light upon the underlying cause human rights were involved in the ques- for the action of such men as Rose. It is, tion of joint or single statehood for Ari- however, revealed in a Washington diszona and New Mexico.

patch of the same date, wherein we are What is this “infamous plan to deprive informed that “Speaker Cannon has a. Arizonans of their liberty”? It is the trump card,” this being “nothing less plan of the Republican majority of the than a warning to the railroad and mining 59th, as it was of the same men in the interests in Arizona to haul off their lobprevious Congress, to make two states of bies here (Washington) or take the conthe four territories; Oklahoma and In- sequences. This dispatch goes on to dian Territory to form one, New Mexico say: "The consequences of failure to abide and Arizona the other. The population by this warning might be serious,” as of the two former approximating a million, “the railroad and principal mining comwhile the two latter have about half as panies of Arizona are paying taxes on an many.

antiquated assessment which has not been “The use of the bayonet,” we are told, altered for sixteen years.” It goes on to “was urged by the leaders ” of the meet- say: “It was made long before the railing, and that “open rebellion will be en- roads had attained anything like their countered if consolidation is effected."

present value, and when the mines, which To whoever was not blinded by self- are now paying their owners thousands of dollars a day were mere pocket-holes.” roads by one or two hundred per cent.,

What the Speaker has in mind accord- and those of the rich mine-owners five ing to this dispatch, is for Congress to hundred to one thousand per cent. legislate directly for the Territory to com- But to return to blood-and-thunder pel a correction of these antiquated assess- Rose. This man is mayor of one of the ments, so as to place the railroads and the most corrupt cities in the Union. It is a mines on the assessment-rolls at some- city where the public-service corporations thing like their real value. This, how- hold complete sway. A city where these ever, it appears “would be more objec- exploiters of the people have a free hand. tionable to their owners than joint-state- A city where, so far as the equal right to hood."

the use of its streets is concerned, human This, then, is the Ethiopian in the wood- rights and human liberty are nullified pile!

daily. Not only does Rose do nothing to Mr. Mayor Rose and his confrères are conserve these rights, not only does he not not worried that the “spirit of individual protect its citizens in their equal natural liberty is being smothered”; what they right of use, but he has himself been the fear is that the people of New Mexico, instrumentality through whom they have whom they dub “greasers,” will insist been robbed of their streets and turned that these enormously valuable mines, over to be exploited by J. P. Morgan and out of which such gigantic fortunes as his associates. that of Senator Clark's are being obtained, Instead of inflaming the passions of shall bear at least a part of the cost of misguided Arizonans, who do not undergovernment, instead of, as now, practi- stand that Rose and all his ilk are using cally escaping taxation altogether.

them to pull their chestnuts out of the fire It is not patriotism but pelf which ani- (chestnuts in the form of special privileges mates these gentlemen. It is not human and exemption from taxation) let the liberty but human greed they are con- Mayor of Milwaukee return home and tending for.

do his duty. Let him but use all the Let us hope that the Speaker will get great power of the executive of that city more light upon the subject. It will be to compel compliance with the law by an excellent thing for the country if, not those who are monopolizing its streets, in a spirit of revenge against multi-mil- make them pay taxes on the same basis lionaire mine and railroad magnates (al- of value as other citizens have to pay, let though they deserve no sympathy) but him but enforce every ordinance these with a desire to see that justice is done to notorious violators of law are constantly all the people of Arizona, if he will exert nullifying, and he will be rendering proper the tremendous influence of the Speaker- service to the people of Milwaukee, and ship to secure legislation that will compel there will be no need to declare that if the the railroad and mine-owners to pay their public-service corporations do not obey share of taxation, listing their property the law the streets of his city should “run at its full value. This would probably with the blood of martyrs as have the relieve the other people of Arizona of gutters of Warsaw!” fully fifty per cent. of the taxes they now

ROBERT BAKER. pay, while increasing those of the rail

Brooklyn, N. Y.

II. DOMINANT TRUSTS AND CORPORATIONS—(Continued.)

By Hon. J. WARNER MILLS.

MA

The Pageant of the Throne-PowersThe “The evils of competition having been Smelter-Trust-A General Glance at borne for years by the various smelting The Trusts-(Continued).

interests of the country had convinced the

proprietors of those interests that some PURSUIT OF MONOPOLY.

combination should be effected with a ANY good people are deluded into

view to reducing expenses and eliminating believing that the purpose of the such competition. These interests had trust is to promote the public weal by but no satisfactory arrangement had ever

been in frequent consultation (conspiring) bringing down the price of its service or its product for the benefit of its patrons

been made for any combined operation

that eliminated the competition comor consumers. Nothing is further from the truth. As an incident to the destruct- plained of. Finally it was universally

conceded that the only course open was a ive methods employed to exterminate a rival, the price may fall for certain periods consolidation of the various interests.”+ or places. But it is only an incident. If, in the above quotation, “labor inThe purpose of the trust is always to terests” be substituted for "smelting in"water-up”-also to lessen the cost by terests” and “laborers” for the words cheaper methods, yet withal to maintain “proprietors of those interests,” and the the price and generally to advance it by word "labor" be inserted before the last controlling the disposition of the product. word, we would then have an exact stateWhen trust-prices are discussed, it is ment of the trust dilemma, expressing misleading to take the price for a short as well the dilemma of labor. period or at a particular place. The bus- When labor, however, tries to extricate iness of the trust is everywhere, and the itself from such a dilemma to cut out actual price it charges will show itself competition and to effect a monopoly, chiefly only in long periods and in numer- we will see in the following chapters some ous places. To keep up the price, while of the obstacles and penalties that conlessening the cost, insures large and steady front it. profits; and profits as we know are the Ex-Governor James B. Grant, on the chief end of capital.

board of control of the Smelter-Trust, The more perfect the monopoly the and who profited by the sale to it of two surer is competition cut out, and prices large smelters, one in Denver and one at then with a lessening cost are at the easy Omaha, testified before the Congressional dictation of the trust, and profits are Industrial Commission as follows: I steady and unfailing. The problem then simply becomes one of markets.

“Q. 'The main objects sought by these That the principal aim of the Smelter- combinations, according to your method Trust was to destroy competition and to of reasoning, is the limiting of competicreate a monopoly is specifically avowed tion?' by its promoters and managers. Mr.

“A. ‘Yes, that is what I should say; Chapman testified before the Congress- limiting competition and cheapening cerional Industrial Commission as follows: tain methods of handling the business, * The first of this series of articles appeared in the

+Report Industrial Com., Vol. 13, p. 93. July, 1905, number of THE ARENA.

Report Industrial Com., Vol. 12, p. 195.

and more certain control of the disposi- man conducting examination), that the tion of the product.'”

corporation gets privileges that the in

dividual does not.'” He further testified:*

"The causes inducing combination in Here is a plain and frank avowal of an all cases, in my opinion, are to avoid ex- economic dilemma that is common to both cessive and ruinous competition and to capital and labor. Both are floundering enable the capitalist to get a reasonable in the mire of unnatural competition. interest on his investment by enlarging Capital, through the combination of the the capitalization (watering the stock]. trust and the "water" and the monopoly I would say that when any man is engag- it affords, has found a way out, but like ing to spend a large part of his life in Napoleon on his march from Moscow, building up an industrial enterprise the it is “devil take the hindmost” and it first thing to be considered is to get an offers no hand to its boasted “handmaid," income from it, and the one cause, in my but leaves labor to still grope

and flounder opinion, above all others that threatens deeper in the mire than before. This is that income, is competition.”

the unsympathetic selfishness of the trust, Quoting again from Governor Grant's the only captain of industry” that does

and it is plain that Mr. Havemeyer is not testimony:t

not “give two cents for our ethics." “Q. 'It seems to me that it is plain,

OVERREACHING LABOR. according to your argument, that you regulate the law of supply and demand, With an effective monopoly once on when you control the supply and get a foot, the trust that enjoys it secures theregreater price than would otherwise be the by an autocratic power to swing as it will

its cudgel of coercion over the head of “A. “Well I believe it is perfectly de- labor. Read the sworn confession of fensible, this power to regulate the supply Governor Grant upon this subject :I and demand.' “Q. ‘And the employé is pursuing the

“Q. 'In the papers it is stated that by same course as that of the employer, that

reason of the shutting down of the Duis, he is forming a trust or combination rango Smelter-which was in the trustof his own?'

750 men were thrown out of employment, “A. 'I look

that is, the men at the smelter and miners. upon

as the same thing.'

it “Q. ‘And his reasons are the same as

[This reference is to a strike that is men

tioned hereafter.] Is it your opinion that yours?'

if the individual smelter had not gone in “A. “Precisely.' "Q. To increase his earnings ?'

the trust, it would have shut down at that

time?' “A. ‘Yes, and to keep out competition.' “Q. To increase his earnings and to

“A. 'I do n't know. You cannot tell.

As a consolidation we felt stronger than keep out competition ?' “A. “That is about it. Not necessarily

we did as individuals. The smelter corto increase his earnings, but to maintain poration or company is not dangerous, and to keep up the price.'

but it has to be guarded in its actions. “Q. “There is no difference between Not having generally a great amount of the individual and the corporation, each money we had to be very careful, but the

combination, having plenty of money in is struggling for benefit ?'

' “A. "Well, there is the proposition its treasury, is more powerful." presented by Mr. Ratchford [committee

“Q. ‘Would it not be the natural tend

ency, having the power to do so, to shut *Id., p. 197. tid., pp. 199, 201.

Report Industrial Com., Vol. 12, p. 202.

case ?'

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