YALE UNIVERSITY LIBRARY THE HARRY WEINBERGER MEMORIAL COLLECTION Gift of HAROLD M. WAYNE TRIUMPHANT PLUTOCRACY TLe Story of American Pul)lic Lits from 1870 to 1920 By R. F. PETTIGREW Formerly United States Senator {rem South Dakota TRIUMPHANT PLUTOCRACY Xhe Story of American Putlic Life from 1870 to 1920 By R. F. PETTIGREW Formerly United States Senator from South Dakota Printed by THE ACADEMY PRESS 112 Fourth Avenue. New York City Copyright 1921 by R. F. Pettigrew. All rights, including the right of translation into foreign languages, reserved. Published January 1, 1922. TABLE OF CONTENTS. 1. INTRODUCTION. American Public Life . . . .' 5 2. THE ECONOMIC POWER AT HOME. I. Land Grabbing 11 II. Land for the People 23 III. Banks and Bankers 30 IV. Money 38 V. The Tariff 57 VI. The Trusts 70 VIL The Railroads 78 VIII. Labor 101 IX. Plutocracy 118 3. THE MACHINERY OF GOVERNMENT. X. Who Made the Constitution? 132 XI. Lawyers 141 XIL Politics 150 XIII. The United States Supreme Court 164 XIV. Senates and Senators 198 XV. Ten Presidents 217 XVL Political Parties 250 XVII. Chauncey M. Depew 261 XVIIL Bryanism 272 XIX. Cannonism ^ 280 XX. Business and Politics 286 XXI. A Lost Election 294 4. IMPERIALISM. XXII. Hawaii — A Revolution to Order 310 XXIII. Anti-Imperialism 323 XXIV. Criminal Aggression 329 XXV. Imperialism at Work 338 XXVI. Benevolent Assimilation 348 XXVII. The U. S. and the Course of Empire 363 5. THE WORLD WAR. XXVIII. The Profiteers 373 xxix. The Russian Revolution 388 XXX. The League to Perpetuate War 393 XXXI. The 1920 Election 400 6. OUR CIVILIZATION. XXXII. Capitalism 407 XXXIII. The Triumph of Christian Civilization 413 XXXIV. Looking Ahead 422 FOREWORD American Public Life The American people should know the truth about American public life. They have been lied to so much and hoodwinked so often that it would seem only fair for them to have at least one straight-from-the- shoulder statement concerning this government "of the people, by the people and for the people," about whose inner workings the people know almost nothing. The common people of the United States, like the same class of people in every other country, mean well, but they are ill-informed. Floundering about in their ignorance, they are tricked and robbed by those who have the inside information and who therefore know how to take advantage of every turn in the wheel of fortune. The people voted for Roosevelt be cause he talked of "trust-busting" at the same time that he was sanctioning the purchase of the Tennes,see Coal and Iron Company by the Steel Trust. They sup ported Wilson "because he kept us out of war" at the same time that Wilson was making preparations to enter the war. The rulers can negotiate "secret treaties" at home and abroad. The people, knowing nothing of either the theory or the practice of secret diplomacy, commit all sorts of follies for which they themselves must later foot the bill. At the present moment the American people are being taught "Americanism" — taught by the same gentry who are making away with billions of dollars, sometimes "legally" and sometimes without any sanc tion in the law. The most prominent among the leaders of the Amer icanization campaign were the most prominent among the war profiteers. They are the owners of resources and industries — the owners of America. It is from them that the preparedness agitation came in 1915 and 1916, and it is from them that the new preparedness agitation is coming now. Here is a newspaper story in the New York Herald (November 7, 1920) which illustrates the point. The story, evidently inspired by the War Department, is devoted to a description of certain big guns and cer tain new forms of tanks that the government is at the present time busy manufacturing. The country was caught napping once, says the writer, but the War Department is going to be sure that the same thing does not happen again. Therefore, it is build ing up its machinery now, while the country is still at peace. In this work the War Department is as sisted "by some of the leading industrial spirits of the country, who are keeping up the same enthusiastic devotion to the service of their country they displayed in the war. A little army of dollar-a-year men, headed by Benedict Crowell, former Assistant Secretary of War, has mobilized itself under the name of Army, Ordnance Association and is giving its valuable time to the country without costing the government a single cent." Who are the members of this "little army" of pa triots? The Herald gives the answer in full. Besides Mr. Crowell, there are, in the Army Ordnance Asso ciation, William Wheeler Coleman, president of the Bucyrus Company of Milwaukee, Wis.; Charles Eliot Warren, past president of the American Bankers' As sociation ; Ralph Crews, of the law firm of Sherman & Sterling, New York City; Guy Eastman Tripp, chair man of the board of directors of the Westinghouse Company; Samuel McRoberts, of the National City Bank of New York; Waldo Calvin Bryant, president of the Bryant Electric Company; Frank Augustus Scott, former chairman of the War Industries Board; Robert P. Lament, president of the American Steel Foundries of Chicago, and C. L. Harrison, of the First National Bank of Cincinnati. What do these patriotic business men hope to gain by their devotion to the preparedness program of the War Department? The answer appears later in the same articles: "It is this desire to keep abreast of the world's performances in ordnance that has prompted the War Department to ask for an increased appropriation next year. The department's appropria tion last year was $377,246,944. The estimates for this year call for an appropriation of approximately $814,000,000." The difference, or $435,000,000, repre sents the value of contracts that will go to the business interests of the United States. Again, bankers, lawyers, manufacturers and busi ness men are going to save the country — not by keep ing us out of war, but by getting ready for the next war. It is these men who dominate the life and thought as well as the industries of these United States, and it is just such men that have been in control of the United States ever since I entered the Senate thirty years ago. It is fifty years since I began to take an interest in public affairs. During those years I have been par ticipating, more or less actively, in public life — first as a government surveyor, then as a member of the Legislature of Dakota; as a member of the House of Representatives and, finally, as a member of the United States Senate. Since 1880 I have known the important men in both the Republican and Democratic parties ; 1 have known the members of the diplomatic corps; I have known personally the last ten presidents of the United States, and I have known personally the lead ing business men who backed the political parties and who made and unmade the presidents. For half a century I have known public men and have been on the inside of business and politics. Through all of that time I have lived and worked with the rulers of America. When I entered the arena of public affairs in 1870, the United States, with a population of thirty-eight millions, was just recovering from the effects of the Civil War. The economic life of the old slave-holding South lay in ruins. Even in the North, the Panic of 1873 swept over the business world, taking its toll in commercial failures and unemployment and an increase in the number of tenant farmers. The policy of send ing carpet-bagging rascals into the embittered South hindered reconciliation, and sectional differences pre vented any effective co-operation between the two por tions of the country. The result was a heavy loss in productive power and in political position. Through this period, the United States was an inconsequential factor in international affairs. The transformation from that day to this is com plete. With three times the population ; with section alism practically eliminated; with the South recovered economically and the economic power of the North vastly increased ; with more wealth than any other five nations of the world combined; with the credit of the world in her hands; with large undeveloi)ed, or only slightly developed resources ; with a unified population and a new idea of world importance, the United States stands as probably the richest and most influential among the great nations. I witnessed the momentous changes and participated in them. While they were occurring I saw something else that filled me with dread. I saw the government of the United States enter into a struggle with the trusts, the railroads and the banks, and I watched while the business forces won the contest. I saw the forms of republican government decay through disuse, and I saw them betrayed by the very men who were sworn to preserve and uphold them. I saw the empire of business, with its innumeriable ramifications, grow up around and above the structure of government. I watched the power over public affairs shift from the weakened structure of republican political machinery to the vigorous new business empire. Strong men who saw what was occurring no longer went into politics. Instead, they entered the field of industry, and with them the seat of the government of the United States was shifted from Washington to Wall Street. With this shift, there disappeared from active public life those principles of republican government that I had learned to believe were the means of safeguarding liberty. After the authority over public affairs had been transferred to the men of business, I saw the machinery of business pass from the hands of indi viduals into the hands of corporations — artificial per sons — created in the imagination of lawyers, and given efficacy by the sanction of the courts and of the law. When I turned to the reading of American history, I discovered that these things had been going on from the beginnings of our government, that they had grown up with it, and were an essential part of its structure. From surprise and disgust I turned to anal ysis and reason and, for the past twenty years, I have been watching the public life of the United States with an understanding mind. For a long time I have known what was going on in the United States. Today I think that I know why it is going on. When I look back over the half century that has passed since I first entered public life, I can hardly realize that the America, which I knew and believed in as a young man in the twenties, could have changed so completely in so short a time. Even when I know the reason for the change, it is hard to accept it as a reality. Many of the public men who have lived and worked in the United States during the past century have writ ten their impressions of public affairs. Benton, Blaine, Grant and Sherman discussed the public life of the middle of the last century. Since then, there have been many autobiographies and memoirs. I have read these books carefully, and it seems to me that not one of the writers is at the same time a student and a realist. First of all, they have written about politics, with very little or no attention to the economic forces that wei-e shaping politics. In the second place, too many of them have written the agreeable things and left the disagreeable ones unsaid. In the third place, they have written what they believed should have happened rather than what actually did happen. Fourth, and by far the most important, each of these men has written as a member of a ruling class, pleased with himself, and satisfied that rule by his class was the best thing for the community. The pictures that these men give are like the decisions of our courts — built of prece dents rather than of realities. It is my ambition to tell my fellow-countrymen what has happened during the half century that I have known public life. I know what went on, because I saw it. I want others to have the same knowledge. During my public career I have received very definite -impressions, and I am anxious to pass those impres sions on to others. I want to do this because I believe that my country is in danger; I believe that the liber ties of the American people arp already well-nigh de stroyed; I believe that we are^ moving forward to a crisis of immense significance to the future of the American people, and the ideas and ideals for which the United States has stood before the world. We are far along on the road to empire, and we are traveling faster towards that goal than any nation in history ever traveled. It is with that purpose and in that spirit that I have written this book, and it is in that spirit that I ask them to consider and ponder what I have said there. 10 1. L.\ND Grabbing My first struggle with the business interests, after I entered the Senate in 1889, came over the question of land-grabbing. At that time the Federal Government still owned millions of acres of valuable timber, mineral and agricultural land that might easily have been util ized for public advantage instead of for private gain. The attorneys and other representatives that the vested interests maintained in Washington were busy grabbing this land. I set myself to save it for the people. I was thoroughly familiar with the public Land Laws of the United States as I had been a practicing lawyer before the Land Department, a surveyor on the public domain, and beside that I had planted a timber claim with white ash trees which stand today. I, therefore, sought appointment upon the Senate Committee on Public Lands, of which Preston B. Plumb, of Kansas, was Chairman. In that position I had an excellent op portunity to see land grabbing from the inside. The House passed a bill to i-epeal the timber culture law "and for other purposes" in February, 1890. When the bill reached the Senate it was referred to the Com mittee on Public Lands, and Chairman Plumb appointed Senator Walthall of Mississippi and me as a sub-com mittee to consider the bill. I gave the matter very careful attention and, after some weeks of study and work, I reported the bill to the Senate in such a form that it involved a complete revision of the Federal land laws. The bill, containing nineteen sections, finally passed the Senate on the 16th of September, 1890. Immediately, upon its passage, a conference was re quested and Senators Plumb, Walthall and Pettigrew were appointed as Conference Committee on the part of the Senate. In the House the bill was referred to the Committee on Public Lands, which reported it back, early in the next session of Congress, agreeing to the Conference asked for by the Senate and appoint- 11 ing three conferees, Payson of Illinois, Holman of Indi ana and Pickler of South Dakota. Plumb did not act with the Conference Committee. Walthall of Missis sippi and myself took full charge of the work and, after many conferences, we finally agreed upon and did report to each house a bill just as the Senate had passed it, with five additional sections, making twenty- four in all. The 24th section was as follows ; "SEC. 24, p. 1103, 51st CONGRESS, MARCH 3, 1891. "That the President of the United States may from time to time set apart and reserve, in any State or Territory having public land bearing forests in any part of the public lands wholly or in part covered with timber or undergrowth, whether of commercial value or not as public reservations and the President shall by public proclamation declare the establishment of such reservations and the limits thereof." I give this section in full, first, because it resulted in departure in public policy that was highly advanta geous to the people of the United States, and second, because it led to one of the most bitterly fought par liamentary struggles in which I have ever participated. Section 24 was placed in the bill at my suggestion to take the place of the timber culture law, which never had produced any timber. I had offered this section in the Senate Committee on Public Lands, but the West ern Senators were opposed to "locking up" the country in forest reservations. In conference, while I had some difficulty, I secured an agreement which included this section in the bill. Nothing was done under Section 24 until after Cleve land commenced his second term and then he, as Presi dent, appointed a commission of eastern people to go out into the Western country — Dakota, Wyoming, Colorado — and establish the forest reservations. These men rode about the country in a Pullman car, and pre scribed the boundaries of forest reservations without any discriminating judgment. For example, they established the reservation of Black Hills in South Da kota, and embraced within its boundaries the city of 12 Deadwood, and the towns of Leed, Custer and Hill City, which contained thousands of people who were mining, home-building and getting the timber necessary for these activities from the surrounding forests. Once these reservations were established it became impos sible to cut any timber upon them; consequently the people who had made their homes in the reserved area were practically compelled to move. Since no law had been passed for the administration of these newly created reserves, the country was com pletely locked up. No new people could go in and settle, and those already there found themselves re stricted on every hand. The result was a general dis satisfaction with the whole policy of forest reserva tions. I realized that, unless some change was made, the whole policy would be discredited, and therefore I se cured legislation suspending reservations already lo cated until proper legislation could be secured for their administration. Finally, at my request, Walcott, who was then at the head of the Geological Survey, prepared an amend ment to the Sundry Civil Appropriation Bill, which I offered in the Senate, providing for the administration of these forests. After this law for administration was enacted, the Secretary of the.Interior informed me that he would make the boundaries of the Black Hills Forest Reservation whatever I might recommend. I went out to the Black Hills, held meetings of the people, and ex plained to them the purpose of the Forest Reservation. In every instance they passed resolutions in favor of being embraced with the Forest Reservation as admin istered under the new laws. By this direct appeal to the people most intimately concerned I was able to en large the reservation by over 200,000 acres. When I retumed to Washington, the Secretary of the Interior asked me to suggest such rules and regulations as would best enable his Department to administer the forest reservations laws. In accordance with this re- 13 ¦quest I wrote out the rules and regulations which were afterwards adopted by him. I remember in one of the regulations that I provided for sowing the Black Hills spruce seed upon the snow in all the open parks and denuded places, so that when the snow melted these seeds would sink down into the moist ground and immediately sprout and grow; and, today, there are many thousands more acres of forest in the Black Hills reservations than there were when the law was enacted. Thus far matters had gone very nicely. I had had a hard fight to get the policy of forest reservation adopted and the reservations themselves established. Now came the real fight — to hold them for the people. In the amendment which was added to the Sundry Civil Appropriation Bill I inserted a provision that per mitted any settler, who was embraced within a Foresi Reservation, to exchange his land, acre by acre, for other government land, outside of the reservation. Such a provision enabled settlers who had taken land before the establishment of reservations to take up a new quarter section in case they did not care to live under the reservation regulations. The Conference Committee of the two houses that considered the Sundry Civil Bill changed the wording of this section in such a way that the land grant rail roads, which had received in all nearly two hundred million acres of land, could exchange their land, if em braced within a forest reservation, for the very best land the Government had remaining on the public do main outside of the reservation. Allison of Iowa was Chairman on the part of the Senate and Joe Cannon of Illinois, Chairman on the part of the House. The Con ference report came to the Senate the day before the end of the session. Therefore it was not printed, but was rushed through after having been read hurriedly by the clerk. I listened to the reading, but I did not no- tice this change of wording in my amendment, and so this monstrous proposition became a law. 14 Of course, the conferees knew what they were doing when they slipped through this provision. Under it, the Interior Department ruled that the land grant rail roads could exchange their odd sections, embraced within a forest reservation, for the best remaining acres of the public domain. The right to make this exchange was worth at least fifty millions of dollars to the land grant railroads. I did not discover this change, made by the Confer ence Committee, until I leamed that the Department of the Interior was permitting the railroads to make these exchanges. As soon as I discovered this, I looked up the law and found what an enormous fraud had been practiced through the cunning of Senator Allison of Iowa, Chairman of the Committee on Appropriations, and Joe Cannon, Representative from Illinois, a banker and lawyer, and Chairman of the Committee on Appro priations in the House. Nearly ten years had dragged along, from the time I began the fight in favor of forest reservations, until this fraud was perpetuated on the American people by these two representatives of busi ness. In order to meet the situation I presented an amend ment to the Sundry Civil Bill on May 31, 1900 (56th Congress, 1st Session, pages 6289 to 6298 of the Con gressional Record) , which reads as follows : "And said superintendents, assistant inspectors, super visors and rangers shall, under the direction of the Secretary of the Interior, examine all lands within the boundaries of any forest reservatron that belong to any land-grant railroad company, and have not heretofore been sold in good faith for a valuable consideration, and report to the Secretary the character and value of said land, and pending such examina tion and report none of said lands shall be exchanged for other lands outside of said reservation." It may be well to state at this point that the Central and Union Pacific Railroad had received grants by an Act of Congress, 20 miles wide, from the Missouri River on the west boundary of the State of Iowa, straight across the continent to the Pacific Ocean, IS through the length of the States of Nebraska, Wyo ming, Utah, Nevada, and California. The road has the odd sections on a strip 10 miles wide on each side of the tracks. The Northern Pacific Road received a grant of land 40 miles in width from some point in the State of Minnesota, clear through to the Pacific Ocean. This grant extended through the States of Minnesota, North Dakota, Montana, Idaho and Washington, and the area granted included the odd sections throughout this entire region. These grants embraced the good and the bad land alike. Of necessity they included large areas on the tops of the Rocky Mountains and the Cas cade Range and a great deal of desert land. Whether by design or not, when the forest reservations were created, they embraced, indiscriminately, forested and non-forested districts. By some chance they also em braced large areas of desert land. These deserts were probably embraced intentionally so that the railroads could exchange their odd sections of worthless desert land for lands of great value outside the reservation. After I had presented the amendment just referred to, I made a statement of these facts, after which the following significant debate took place. I quote it in order to show where certain Senators lined up when it came to an issue between private interest and the pub lic v/elfare. (Cong. Record, May 31, 1900, 1st ses,sion, 56th Congress, p. 6288.) Mr. PETTIGREW: "Mr. President, the amendment I propose is a provision for the protection and admin istration of forest reservation. Three years ago in an appropriation bill we provided for the protection and administration of these reservations, and provided that any actual and bona-fide settler who had taken a claim within a forest reservation afterwards created could exchange his land if he desired to do so, for a like area of the public domain. It was the intention of the law to allow a settler whose land was embraced in any for est reservation to exchange his land, if he desired to do so, for lands outside of the reservations, acre for acre. 16 "But certain words were inserted under which the Department has decided that a land-grant railroad can exchange the worthless lands — lands from which the timber has all been cut, tops of mountains, the inacces sible and snow-capped peaks of the Rockies and Sierra Nevadas — for the best land the Government has, acre for acre. So they have swapped lands on the Cascade Range, which are covered forever with ice and snow, not worth a tenth of a cent an acre, for lands worth from six to ten dollars in the valleys of Washington and Oregon and Idaho and Montana, thus depriving the settlers of a chance to secure these lands, besides en larging the grants of the railroads to that extent. "Now, my amendment simply provides that these lands shall be inspected and examined by the officers who have charge of the reservations, and they shall re port to the Secretary the character of the lands that belong to these companies, so that in the future we can make a proper adjustment — not an adjustment by which they shall receive a thousand times more than which they surrender — and that while the appraise ment is going on no more exchanges shall be made. That is all that the amendment aims to accomplish, and it is one in the interest of the public beyond all questions, suspending the operation of a law which Congress would never have passed if it had been dis cussed." Mr. ALLISON : "I wish to say that this amendment, as it appears to me, is general legislation. Certainly on the statement made by the Senator from South Da kota, it changes the existing law. I hope he will not press it on this bill, because if he does we shall be obliged to make the point of order that it is proposed general legislation." Mr. PETTIGREW: "I wish to say that I do not be lieve it is subject to the point of order, because it pre scribes the duties of these officers who are provided for and the method of the expenditure of the appropri ation now in the bill. Therefore, I do not believe it is 17 subject to the point of order. It seems to me if it is possible to insert the amendment we ought to do it and protect the Government and the people of this country against the execution of a law which we never would have passed if we had known what it contained." Mr. PETTIGREW : "I should like to ask the chairman of the Committee on Appropriations if the Secretary of the Interior did not think the law should be entirely re pealed?" Mr. ALLISON: "The Secretary did." Mr. PETTIGREW: "Did he not think there were great frauds being practiced under it?" Mr. ALLISON: "I have no doubt that is all true, but that is a subject we cannot deal with now." (The amendment is read again.) Mr. PENROSE: "I make the point of order that this is general legislation and contrary to the rule." THE PRESIDENT (protempore) : "The Chair has overruled that point of order. It has already been made. The question is on agreeing to the amendment." "The amendment was agreed to." Allison of Iowa, Tom Carter of Montana, Chandler of New Hampshire, Platt of Connecticut, Aldrich of Rhode Island, Penrose of Pennsylvania, Walcott of Colorado, Hawley of Connecticut, all joined in the fight against me to see that the land-grant railroads were given this vast graft at the expense of the people of the United States and against the public welfare. This is but a typical case. The lawyers in the Senate always lined up against the people of the United States and in favor of the railroads and the other predatory interests who are the real government of the United States. This Senate debate is significant because it shows that ras cality, graft, and public plunder are not political ques tions, especially in so far as the Senate of the United States is concerned. Observe that Allison of Iowa, who had inserted the amendment making possible the exchange of these rail road lands, was among the first to attack my amend- 18 ment and to insist that it should not go into the bill. Observe further that Tom Carter, Chairman of the Re publican National Committee, took the same side. It was he who figured in the scandalous affair during Harriman's second campaign for election, at which time he collected from Cramp, the shipbuilder, $400,- 000 and told Cramp where the money was to be ex pended. When Tom Carter died he left a large fortune. This same debate was participated in by Bill Chandler of New Hampshire, Stewart of Nevada and finally by Penrose of Pennsylvnia, who arose and for the sec ond time raised the point of order against my amend ment. Penrose is still in public life and he is still a faithful servant and representative of the great preda tory interests. He has never been a representative of the people of Pennyslvania or of the United States. Despite all of this opposition my amendment was adopted without a roll-call. The reason is plain. Neither these men nor their backers desired to have the amend ment become a law, but the scandal connected with the exchange of the railroad lands had gained such publicity, and the amendment was so clearly in the public interest that they did not dare to kill it openly. Besides, this was an amendment to the Sundry Civil Bill and could be changed in conference, and the con ference report forced through the Senate on the last day of the session. Allison of Iowa was called "Pussy foot Allison" by his fellow Senators because of his cun ning, his unscrupulous rascality, and his suavity, and he could be relied upon to throw out of the bill as re ported from the conference committee anything that threatened property interests. So the bill passed the Senate and went to conference. Allison was chairman of the conference on the part of the Senate and Joe Cannon on the part of the House. The conference struck out my amendment, adopted by the Senate, and inserted in its place the following: "That il\ selections of Land made in lieu of a tract cov ered by «n unperfected bona-fide claim or by a patent in- 19 eluded within a public forest reseri'ation as provided in the Act of June 4, 1897, shall be confined to vacant surveyed non-mineral public lands which are subject to Homestead entry not exceeding in area the tract covered by such claim or patent." . The conference simply struck out the Senate amend ment and inserted the original clause that they had placed in the Sundry Civil Bill of 1897 and under which the fraudulent exchange had taken place. The change would have permitted the railroads to continue the ex change of their worthless lands for the best of the government land and thus to plunder the public domain. The Conference report came up in the Senate on the day before adjournment. I was watching to see what had been done with my amendment, for I knew Allison and Cannon were but paid attorneys of the railroads. When the amendment was read (56th Congress, 1st Session, Congressional Rec, p. 6690) : Mr. PETTIGREW: "I should like to understand the paragraph in relation to non-mineral lands. As I un derstand it, as read from the Secretary's desk, it per mits a continued exchange by the land-grant railroad companies of the worthless lands in the forest reserva tions for the best land the Government has. Is that correct ?" Mr. ALLISON: "I do not so understand it. The amendment provides for the exchange of surveyed lands only, and not of unsurveyed lands." Mr. PETTIGREW: "But it allows the exchange?" Mr. ALLISON : 'It allows the exchange of surveyed lands." Mr. PETTIGREW: "Mr. President, this conference report provides that lands where a railroad company has cut off all the timber or the land on the snow capped peaks of the mountains, if they are within a forest reservation, can be exchanged for the best lands the Government owns, acre for acre, for timber lands. Hundreds of thousands of acres have already been ex changed, and yet, although the Senate placed upon this 20 bill an amendment which would stop that practice, the conference committee brings in a report to continue it." I wish to call particular attention to the statements made by Allison and Wolcott, that only surveyed land could be exchanged. This statement is specifically con tradicted by the wording of their own amendment. The falsity of the statement was well known to them, yet they made it for the purpose of deceiving the Senate. A number of the faithful friends of the plutocrats distinguished themselves signally in this debate. Among them were Senators Wolcott of Colorado and Hawley of Connecticut. Senator Wolcott, who came into the Senate without a dollar, retired from that body with a large fortune. He was always eager to get into the Record as having produced laughter on the part of the Senators. He considered his effort in the interest of the robbery of the public domain particularly worthy of credit. Old Hawley of Connecticut was always a champion of the interests. As long as I know him he was men tally incapacitated from comprehending anything ex cept the interests of the big business groups with which he always acted. He had an intellect like the soil of Connecticut, so poor by nature that it could not be exhausted by cultivation. The amendment, as modified by the Committee on Conference was finally agreed to, because if we did not agree to the Senate Civil Sundry Bill with this amend ment in it, an extra session would have been necessary. Thus the fraud was perpetuated, and the continued grabbing of public lands made possible. The frauds thus deliberately ratified by Congress after all the facts were known caused me to wonder what forces were in control of the Govemment, and convinced me that the lawyers who composed two- thirds of both Houses of Congress were but the paid attorneys of the exploiters of the American people, and that both political parties were but the tools in the 21 hands of big business that were used to plunder the American people. The frauds begun under Cleveland, a Democratic President, were enlarged and completed under McKinley, a Republican President. Millions of acres of forest reservation were established in Mon tana, all within the grant of the Northern Pacific Rail road, where there was no timber or forests, only a little scrub pine that never was and never will be of any value for lumber or any kind of forest products, and that was done so that the Northern Pacific Railroad could exchange its odd sections of worthless desert for scrip, acre for acre, and this scrip sells for from $8 to $10 per acre, and can be located on any land the Government owns anywhere within our broad domain, and the desert for which this scrip was exchanged was not and is not worth ten cents per acre. This, is the story of one small event in the great drama of American public life that had been unfolding all around me. I have told it in detail because it shows, as well as anything that I ever learned, the fate that lay in wait for any measure aimed to promote the pub lic welfare. When I began this fight for the enactment of forest legislation, I believed that we were enjoying a system of popular government in the United States. By the time the fight was ended, I understood that the country was being run by plunderers in the interest of capital. 22 II. The L,.\nd for the People Powerful interests were out to plunder the public domain. I had felt their grip. They were shrewdly advised. I had faced their spokesman in the Senate and the House. They were sinister. Many a man, under my eyes, had tried to thwart them, and not one such had remained an enemy of the vested interests and at the same time continued in public life. Never theless, I went straight ahead, trying to save the land for the people. I knew how enormously rich was the public domain; I had an idea of its possibilities. I wanted to have it used in the future, not for the enrich ment of the few, but for the well being of the many. In order to protect the public in their sovereign rights over the remainder of the public domain, I worked out what I believed was a feasible plan for keeping the public domain in the hands of the public. After I had secured the forest legislation and the pas sage of the law administering forests, I introduced the following bill in the Senate on March 22, 1898 (55th Congress, 2nd Session) : A BILL To preserve the public lands for the people. Be it enacted by the Senate and House of Repre sentatives of the United States of America, in Congress assembled. That the public lands of the United States, except reser vations, be and they are hereby donated to the States and Territories in which they may be located on the sole con dition that all such public lands shall be held in perpetual ownership by such States and Territories to be used by the people residing therein free of rent under such regula tions as may be prescribed by the legislatures of such States and Territories each for itself. This bill had three purposes : 1. To make use and not ownership the criterion in the distribution of nature's gifts to individual citizens. 2. To keep the title to the public domain, including agricultural land, mineral land, timber land, water- 23 power, and all other natural gifts, perpetually in the whole people, and thus to prevent any greater quanti ties from getting into the grip of the few. 3. To localize control over the administration of the lands, so as to bring the problem closer to the people. Could this first step be taken, I believed that we should be in a position to go forward with a general program for the conservation of all resources. The bill was referred to the Committee on Public Lands, of which I was a member, and to the members of that committee, individually and collectively, and on the floor of the Senate, I presented my arguments. In support of my proposition that the public domain should be leased but never sold, I stated that the pub lic domain in my own state amounted to 20,000,000 acres of grazing land. Then I showed that if these lands were conveyed to the State of South Dakota, with the privilege of leasing, they could be leased to cattlemen for ten cents an acre, which would produce a revenue of $2,000,000 a year. Then I showed that this money derived from farm leases could be used to build great reservoirs on the heads of all streams and store the flood-water, and thus irrigate and make productive large areas of this semi-arid land. In my own state, the opportunities for irrigation by means of artesian wells were unusual. I pointed out to the Senate that almost anywhere in the middle half of the state the artesian basin could be tapped at depths varying from 300 to 2,000 feet, each well releasing a flow almost marvelous in quantity. Many of these wells exhibit a pressure strong enough to drive heavy machinery, and from most of them water could be elevated 30 or 40 feet into reservoirs by the force of the head behind the artesian supply. Nature had thus made provision for irrigation on an extended scale in South Dakota, and all that was needed was the money with which to provide for the distribution of the water. I called the attention of the Senate to the fact that Dakota land was only one part of the public domain, 24 and that the Dakota problem was only one aspect of the whole problem of conservation. I showed them that the United States had 500,000,000 acres of arid and semi-arid land, large areas of which could be irri gated to advantage, either through stream conserva tion or through the sinking of artesian wells. Furthermore, I showed that the Government, through its control of the lakes and streams of the country, had an opportunity to adopt constructive re lief measures designed to meet the recurring floods and droughts in the lower reaches of the rivers. Many of the streams are navigable. Successful navigation depends on the maintenance of a steady flow of water. Many were used for the generation of power. Again, there is a need to conserve the spring surplus to cover the needs of the late summer. Each spring this water, so sorely needed later, is allowed to run off from the land, not only wasting the supply but, through floods, overflowing the banks and destroying temporarily or permanently large areas of fertile and cultivated land. For the purpose of preventing this destruction, par ticularly along the Mississippi, Congress had for many years appropriated money for the construction of dykes and levees, under the theory that such work was for the benefit of commerce. Here was a twofold prob lem: Millions of acres of arid land, on the one hand, required only water to make them produce splendid crops. On the other hand, the interests of commerce, of power development and of the dwellers along some of the larger rivers, demanded an intelligent regulation of stream flow. It was estimated at that time by the Government authorities that 72,000,000 acres of land could be thus reclaimed and made to produce crops sufficient to sup port 15,000,000 people. The benefit that commerce, industry and agriculture would derive from such a plan would be incalculable. Therefore, I moved an appro priation of from one to two hundred million dollars to begin the building of such reservoirs as were most ur- 25 gently needed and the establishment of irrigation proj ects in the districts that would yield the most imme diate results. I further showed that if the storm water was all stored in these reservoirs, it would reduce the floods on the great rivers — the Missouri and the Mississippi — and obviate the necessity of building embankments to reclaim the lands heretofore flooded by these great rivers. Thus, the leasing of the land held the title for all the people, while it made the land available for such as were able to utilize it. For my part, I stated that I would prefer to have Congress turn over its arid and semi-arid land, lying within its boundaries, to the State of South Dakota, because I believed the problem would be practically and honestly worked out to the great advantage of the people of that state. The same thing I insisted was true of Idaho, of Montana, of Wyoming, of Colorado, of Nevada, of Utah, New Mexico, Arizona, Western Kansas, Westem Nebraska and North Dakota. I in sisted that the nation could not afford longer to neglect this great opportunity for material advancement, which I considered of fully as much importance, if not of more importance, to the future greatness and pros perity of this country than the clearing out of harbors along the small streams of the coast, or even the devel opment of the great harbors themselves. The arguments fell on deaf ears. These questions arose during the days following the Spanish War and- preceding the conquest of the Philippines. We had started upon a career of conquest rather than one of internal improvement. The Administration, backed by many of the people, believed that it was of great benefit to this country that we should annex 10,000,000 people in the Philippines. Instead of spending hun dreds of millions in conquering the Philippines, it would have been far better economy and better busi ness judgment to spend it in reclaiming the arid lands of the west. 26 At the time that I presented these arguments to the Senate, I considered them weighty. I consider them weighty today. I believe that they represented the only statesmanlike approach to the problem of resource conservation and that they suggested a line of action that might have been followed to the advantage of the people of the United States. Yet I was unable to per suade the committee to report the bill back to the Sen ate in any form. There was no question of choosing between two poli cies. The committee had no policy on this subject. On the 'subject of the public domain they had only one conclusion — ^that the only way to make a state or terri tory prosperous was to get the title of the public domain out of the Government and into the hands of some private interest, by selling it, or giving it away, or doing anything to get rid of it. There was not a single member of the committee on public lands that was in favor of the sovereign owner ship of the natural resources. They wanted to deed not only the land, but the minerals underneath the land, and also to convey the water power so that these utilities, of no value except that which the community gave them, could be used to enrich individuals and ex ploit the whole population. Everyone was opposed to public utilities being used for any other purposes than that of enriching individuals, and corporations were being rapidly formed for the purpose of more thor oughly performing this work of exploitation. Two-thirds of both houses were lawyers, and they believed that the rights of property, no matter how acquired, were the only sacred thing in connection with humanity, and the only legitimate subjects for the consideration of a well-ordered legislative chamber in an intelligently directed state. The same point of view has prevailed ever since, and therefore no policy of re claiming and utilizing the public domain for the benefit of the people of the United States has ever been adopted. Instead, the 65th Congress, at its second 27 session, passed the infamous Shield's Water Power Bill. The natural resources of the United States, a hun dred years ago, were the richest possessed by any mod ern nation. Like the air and the sunlight, they existed in almost limitless abundance. But the "land-hog," in his multitude of corporate forms, came upon the scene and today the timber (except 170,000,000 of acres em braced within the forest reservations), coal, copper, iron and oil that once belonged to the American people are in the hands of a few very rich men who, with their agents and attorneys and hangers-on, administer tliese free natural gifts for their own profit. At the present moment, the one great resource remaining in the hands of the whole people — the "white coal" of our streams and rivers — is being gobbled up by the public utility corporations, which plan to charge four prices for a commodity that should go to the people at its cost of production. I made my fight in the land because it was so basic and so important from the point of view of economic strategy; because it was so rich; because, by holding and using it for their common advantage, the Ameri can people might have remained free; because this same land, in the hands of a small and unscrupulous ruling caste, will not only enable the members of that caste to live parasitically upon the labor of the remain der of the community, but will give them the right to decide who among the citizens of the United States shall be able to earn a living and who shall be con demned to slow starvation. I lost my fight on the land because every branch of the government machinery was manned by the agents and attorneys of the interests which were busy grab bing the public domain ; because, through their control. of the press, they kept the public in ignorance of the things that were really transpiring, and because the people, lulled by soft words such as "liberty" and "con stitutional rights," were busily pursuing their daily 28 occupations, secure in the belief that the Government would protect them. So I lost the fight because those who wanted the land were keen and powerful, though few in number; while the many, from whom the few stole it, were basking in the belief that they were citi zens of a "free country." 29 III. Banks and Bankers My life in the West taught me the power of the land- grabbers. My experience in the East gave me an in-, sight into the power of the banker. The land-grabber cgrnered land. The banker corners money and credit. Both are able through their monopolies to plunder the producers of the product of their toil. We learned, through our experiences with the East ern bankers, that the institution which can issue money and extend credit holds the key to the whole business world. The banks, under the present laws, can do both, and this fact makes them the dictators of business life. Perhaps a little story, "The Evolution of a Banker," will help to show what the banker does to his fellow- men. In 1868 placer gold was discovered high up on the sides of Mount Shasta, in Northern California. The report of this discovery was quickly known in other placer mining camps farther south, and a great stam pede occurred. Five or six hundred miners, at one time, went to Shasta, staked out their claims, and com menced mining. Of course there was every variety of the genus homo, from the saloon-keepers, gamblers and highway men to miners, speculators and prospectors — a motley crowd. Among the others there was Robert Waite, an educated fellow — a sort of graduate — who could talk on every subject from the Bible to Hoyle. Then there was -Silver Jack who, when he was not mining, was shooting up the mining camps or robbing stage-coaches. When they arrived at Shasta, all of the members of the crowd, with one exception, staked out claims and went to work. The diggings were good. The returns were high. In the camp lived the usual hangers-on, and among them there was one man who among all of his fellows had staked out no claim. Everybody else worked at something. He never worked. The others were equal and democratic. He held himself aloof. He was 30 better dressed than the others ; he was never about in the daytime, but in the early evening he might be seen loitering about the gambling houses. He neither swore nor drank; he talked but little, and he was known by everybody. As the weeks went by he opened a little office and began to lend money to miners who had a good claim and who were dissipating their earnings, at four per cent a month. Time passed, and he opened a bank. Because of his personal habits and rather agreeable appearance, the miners deposited their savings with him. He paid the depositors ten per cent a year, and loaned the money to other miners, who were willing to give their claims as security, for four per cent a month. Under these conditions the bank flourished and the banker made money. But one day he sold the bank and moved to San Fran cisco, and there opened a bank on a large scale, and became known as one of the great financiers of the Pacific Coast. A few years afterward, when he had become famous, he removed to New York and entered the circle of the great financiers of the world, and became widely known as a manipulator of moneys and credits. At a banquet which he gave to celebrate the thirtieth year of his entry into the banking business, he grew enthused with wine, and in his speech gave a sketch of his life and told how he was the first banker in Shasta in '68. Thereupon the miners at Shasta — those of the oldtimers who still remained — held a meeting to dis cuss the question. And they said : "Why this man is not the man who started the first bank in Shasta ; or, if he is, then his name was so-and- so, and we remember him well." And they thereupon appointed a committee of three to make an investigation and ascertain how the great banker got his start, and the committee reported that he had gone with the stampede to Shasta, had taken no claim and done no work whatever; but that he slept 31 days and crawled around at night and stole from each of the miners so little of the day's production that he did not miss it. The committee therefore resolved that he had changed his name but had not changed the methods of doing business which he inaugurated at Shasta in the early days. He was still stealing so little from each of his fellow men tbat they did not miss it, and had thus accumulated an enormous fortune and become one of the greatest financiers of the world. The committee further concluded that no person or corporation should be permitted to do a banking busi ness under any circumstances ; that the medium of ex change was the life-blood of business and the most important of all public utilities and that, therefore, it should be controlled by the government alone; that every post-office should be a savings bank, and that the government should establish commercial banks every where and loan money to the people at just what it cost to do the business above what was paid the depos itors who placed their surplus in the Postal Savings Banks, so that if the Postal Banks paid three per cent to depositors, the Government commercial banks would loan this money to the people of the locality where it was deposited for not to exceed three and a half per cent. And thus this great engine of exploitation, now operated to plunder the producers of wealth in the United States, would be turned into a great public benefaction and compel the bankers — parasites on society — to join the ranks of the producing classes. The banking business is a parasite business; the banker is a member of a parasite class; yet so com pletely does he dominate the present order of society that, instead of Tseing punished by society and com peUed to take a position and earn his living like the masses of the people, through the pursuit of some use ful occupation, the banker is generously rewarded; laws are passed in his favor and he is encouraged and assisted in his efforts to pluck his fellow men. For years, under our National Bank Act, the banker 32 could subscribe for Government bonds, deposit them in the Treasury, and have the Treasury issue to him the full face value of the bonds in currency. Thus he retained the bonds and at the same time was able to secure an equal amount of money which he could use for his private profit in the banking business. The issue of money was thus made a functioH of private banking institutions. They could not only lend money ; they could actually create it. During my visit to Japan, I received some interesting sidelights on our banking business as the Japs saw it. Before going to Japan I talked with the Japanese Minister in Washington, and secured from him all of the books published in English giving the history and the economic development of Japan. I also secured two large volumes on the Japanese banking system written by Soyeda, a Jap educated in England, who was then the Treasurer of Japan. When I arrived Soyeda met me; and he not only entertained me very gra ciously, but talked with me on many occasions. I had noticed in reading his book on Japanese bank ing that Japan had at first adopted the American Na tional Banking system, but had abandoned it after four years of trial. I asked Soyeda why this was. He explained that four years had convinced them that the system was entirely unworkable because under it the bankers could cause an expansion of the currency whenever it was profitable for the bankers to expand, and a contraction of the currency whenever it was profitable for them to contract. The resulting panics benefited the creditor class and ruined the pro ducing class: that in fact our banking system worked in Japan just as it worked here — expanding the cur rency to gratify the greed of the bankers when expan sion was to their profit, and contracting it in the inter est of the bankers whenever it was to their advantage to contract the volume of money. Japan has concluded that all money should be isisued by the Government and its volume regulated by index 33 numbers so as to maintain a steady range of prices; that is, when the volume of money was unduly ex panded, it would cause a rise in all prices and lead to the expansion of business and a new credit ; that when ever the money was unduly contracted in volume, it would lead to a decline of all prices, cause panics, and allow the cfeditors to take possession of the property of the producers. And so the Japanese established a central bank and branches, and the nation issued its own currency. In other words, the Japs discovered a great economic law, well known to some people of the United States, but the officials of Japan had the honesty and character to act upon this law instead of following our example of leaving the issue of money and the control of its vol ume in the hands of a few manipulators to be used as an engine for exploiting the producing population. This Japanese situation was interesting to me. I had left the Republican party in 1896 on this very issue. The Japs with their keen sense of values and their willingness to experiment learned in four years what the American people had not learned in forty — that the banking power in private hands makes the bankers the autocrats of the business world. This lesson came to me with double force. When I returned to America I found Congress debating the ex tension of National Bank charters. Aldrich of course was for the extended charters. In the Senate (March 2, 1901), two days before my term as Senator expired, he said: "The present charters of the National Banks expire from time to time, commencing July 14, 1920. The law is that new plates shall be issued to all banks in ex tending their charters. The preparation of these plates will take nearly a year, and it is desirable that this bill should be passed at this session. There can be no objection to it. It is simply a matter of form, as cer tainly the time of the charters will be extended in the next Congress." 34 Mr. PETTIGREW: "Mr. President, I do not believe that the charters ever ought to have been issued, and I am certainly opposed to their being renewed. I be lieve the system is a pernicious one and has a tendency to breed panics, to expand the currency when it ought to be contracted, and to contract it when it ought to be expanded. Japan adopted this system, and after thor ough investigation repealed the law, and for this very reason. "Under this system, which is a branch of our finan cial system, the banks can produce a panic whenever they please, and wreck the property of this country or any other country where the system exists. The sub ject ought to be studied and thoroughly investigated. These charters never should be renewed, and a remedy should be offered by which we could have an elastic currency rather than one which produces too much when there is already too much and too little when there is already too little, and puts the control of the volume of the money of the country in the hands of a combination of national bankers. I therefore object to the bill." The bill therefore went over to the next session. Then, after my term of service in the Senate expired, the bill was passed. The experiences of the American banking system during the great war confirmed my view in every par ticular. The Federal Reserve Act, passed in 1913, had made possible the centralization of banking power. The war did the work. As Roger Babson recently stated the matter : "In 1914 we had 30,000 banks, functioning in a great degree in independence of one another. Then came the Federal Reserve Act, and gave us the machinery for consolidation, and the emergency of five-years' war fur nished the hammer-blows to weld the structure into one." Mr. Alexander is right about the strength of the American banking system. Under the Federal Reserve 35 Act the vast power of the thirty thousand American banks is concentrated in the hands of a little club with headquarters in Wall Street. This club holds in its hands the power to make or to destroy any business man in the United States ; the power to make or wreck financial institutions and inaugurate panics ; the power to issue credit, even money. The bankers at the center of the financial web are endowed with the power of government. The right, to issue money is, as I have said, funda mental. This right is exercised by the New York Bankers' Club, thinly disguised as the Federal Reserve Board. On November 3, 1920, the amount of Federal Reserve notes outstanding was $3,588,713,000. What was the basis of this huge issue of paper money? Commercial paper! The member banks were permitted to lend money (or credit) to their patrons ; to take commercial paper in exchange for their loans ; to deposit this paper under the authority of the Board, and to issue currency against it. This currency was again loaned out, the paper redeposited, etc., so that the Federal Reserve Bank of New York was able to earn, by this pyramid ing of credits, over 200 per cent in the frugal year of 1920, in a market where the rate of interest never ran over 8 per cent on standard securities. Through their authority over money and credit, the bankers thus became the arbiters of the busines,s des tiny of the United States. No one elected them. No one can recall them. There is no way in which they can be made the object of public approval or disap proval. They are as far above public responsibility as was William Hohenzollern in Germany before 1914. Self-elected dictators of American life, they make and unmake ; they wreck and rule. They are the heart of business America — the center of the exploiting system that sits astride the necks of the people. The United States emerged from the Great War with the best credit of any of the larger nations. Its wealth 36 was the greatest; its income the largest, and its bank assets and resources exceeded those of any other coun try ; but this very economic position, centered as it is in the hands of bankers, will be used by them to exploit the peoples of Latin America and Asia as they have during recent years exploited the people of the United States. Exploitation is the profession of the banker, and those in charge of the American banking institu tions have the greatest exploiting opportunity that has ever come to the bankers in any of the modern nations. 37 IV. Money My experiences with the world of affairs have con vinced me that the power in our public life was exer cised through the bankers. My study of banking showed me that the grip which the bankers were able to maintain on the economic system depended largely upon their ability to control money. There were two ways in which they exercised this control. One was by determining who should issue money. The other was by specifying its character. The bankers of the United States have been in a position to decide both of these questions in their own interest. The Constitution of the United States says that the Congress shall have power to coin money, to regulate the value thereof and of foreign coins, and to fix the standard of weight and measures. The Constitution does not empower Congress to delegate the right to issue money to any person or combination of persons. Yet the Congress has always delegated the right to issue money to the banks. The power thus conferred by Congress upon the banks to issue money has been used by the bankers to exploit and plunder the people of the United States. While I was a member of the House of Representa tives (1880) I had become acquainted with Peter Cooper of New York. The renewal of the National Bank charters was under discussion in the House at the time and of course the whole question of currency and of our economic system was covered in the debate. One day Peter Cooper of New York placed upon our desks a pamphlet dealing with the money question. I read this pamphlet with great interest, because Peter Cooper was called a "greenbacker" and was supposed to be in favor of what they called "fiat" money. Again and again throughout the debate his name had been men tioned and he had been abused by the speakers. The foundation theory of Peter Cooper's pamphlet was that the law of supply and demand applied to money just as it applies to other commodities, so that 38 an abundance of money would be registered in the rise in the price of all those things whose value is measured in terms of money. In other words, that the law of supply and demand (the theory that quantity affects price) applies to money as well as to corn, oats, and potatoes..^ Therefore, the proof of a too great abun dance of money lay in the universal rise of prices ; and, conversely, the proof of money scarcity was the univer sal decline in prices. Following this theory, it became evident that while the price of any one commodity would rise or fall, according to the variations in the supply of and the demand for that commodity, a gen eral rise or fall of all prices indicated that money was too abundant or too scarce. Peter Cooper held that money was redeemed whenever it was exchanged by the possessor for the things which he desired more than he desired the money, and that there should be no other form of redemption. In other words, money should be issued by the government and its volume so regulated as to maintain a steady range of prices. I was so interested in this pamphlet that I went to New York, made the personal acquaintance of Peter Cooper, and talked with him many times and quite fully upon social and economic questions. These talks, and the ideas which I had secured from my reading, convinced me that so long as the banks controlled the issue of money, they would be able to determine the economic life of the United States. Shortly after my entrance into the Senate, the whole question was dramatized in the struggle over the free coinage of silver The big business interests had become convinced that if the United States was to take her position as one of the great exploiting nations of the world she must follow the example of England — the world's premier empire — and establish a gold basis for the cur rency. It was in opposition to this policy of imperial ism that we advocated the free and unlimited coinage of silver. 39 We were demanding that, in this respect, the United States should take a position worthy of her great tra ditions and refuse to strike hands with the intema tional plunderers who were busy with their work of economic aggression in all parts of the world Those of us, who were opposing British or any other brand of imperialism, were, with equal insistence, demanding that the United States adopt a money system calcu lated to protect the borrower as against the lender, and so designed as to take out of the hands of private indi viduals the huge power that m.oney-lending conferred. Many of the leaders of American public life were urging that the United States must wait for England to move, but the absurdity of such a proposition was apparent on its face. Indeed, her leading statesmen declared that fact in so many words. Thus Gladstone is credited with the following statement in a speech to the House of Commons. (London Times, March 1, 1893) : "I suppose there is not a year which passes over our heads which does not largely add to the mass of British investments abroad. I am almost afraid to estimate the total amount of property which the United King dom holds beyond the limits of the United Kingdom, but of this I am well convinced, that it is not to be counted by tens or hundreds of millions. One thousand millions ($5,000,000,000) probably would be an ex tremely low and inadequate estimate. Two thousand millions ($10,000,000) or fifteen hundred millions than that, is very likely to be nearer the mark. ('Hear! Hear!') I think under these circumstances it is rather a serious matter to ask this country to consider whether we are going to perform this supreme act of self-sacrifice. I have a profound admiration of cosmo politan principles. I can go a great length, in modera tion (laughter) , in recommending their recognition and establishment, but if there are these two thousand millions ($10,000,000,000) or fifteen hundred millions ($7,500,000,000 of money which we have got abroad, it 40 is a very serious matter as between this country and other countries. "We have nothing to pay them ; we are not debtors at all ; we should get no comfort, no consolation, out of the substitution of an inferior material, of a cheaper money, which we could obtain for less and part with for more. We should get no consolation, but the con solation throughout the world would be great. (Loud laughter.) This splendid spirit of philanthropy, which we cannot too highly praise — because I have no doubt all this is foreseen — would result in our making a pres ent of fifty or a hundred millions ($500,000,000) to the world. It would be thankfully accepted, but I think the gratitude for your benevolence would be mixed with very grave misgivings as to your wisdom. I have shown why we should pause and consider for ourselves once, twice, and thrice before departing from the solid ground on which you have, within the last half century, erected a commercial fabric unknown in the whole his tory of the world — before departing from the solid ground you should well consult and well consider and take no step except such as you can well justify to your own understanding, to your fellow countryman, and to those who come after us." (Cheers.) • How could England be expected to abandon an eco nomic system that was yielding hundreds of millions in yearly profits to her bankers and investors ? Again and again this issue has been raised at inter national conferences. The first conference was held in 1867 at the invita tion of France, and met at Paris on June 17, 1867. Eighteen of the principal European countries and the United States participated They voted unanimously against the single silver standard, and every nation participating in that conference voted in favor of the single gold standard but the Netherlands, and they also voted to establish the 25-franc gold pieces as an international coin. The next conference met, at the invitation of the 41 United States, at Paris, August 16, 1878. Twelve coun tries were represented. Germany refused to send dele gates. It was proposed by the United States, first, that . it is not to be desired that silver shall be excluded from free coinage in Europe and the United States ; second, that the use of both gold and silver as unlimited legal tender may be safely adopted by equalizing them at a ratio fixed by international agreement. Then the convention resolved — what? Simply this, and nothing more : That the difference of opinion that had appeared excluded the adoption of a common ratio between the two metals, and then adjourned. The next, or third, conference was called by France and the United States, and wa.? held in 1881, nineteen countries being represented. The delegates from Swe den said that they had better reaffirm the declaraticHj of 1878, and the conference reaffirmed that declaration and adjourned never to meet again. The declaration of 1878 was that the differences of opinion which had appeared excluded the adoption of a common ratio be tween the two metals. The next conference was held at Brussels in 1892. At that conference the United States proposed, not the free and unlimited coinage of silver at any ratio, but simply this: The United States had at first sent an. invitation to Great Britain, asking that government to join us in a convention to adopt both metals at a ratio to be agreed upon. Great Britain refused to ac cept the invitation to the conference to discuss the question of agreeing upon a ratio for the coinage of the two metals, but, when we changed the invitation so as to provide for simply meeting and discussing the ques tion of the enlarged use of silver. Great Britain joined in the conference, and this was the program of the United States in the conference of 1892: That in the opinion of this conference it is desirable that some measure should be found for increasing the use of silver in the currency system of the nations. 42 That was all. No greater or broader resolution would be accepted by Great Britain. Neither would she join us in a conference to discuss the question of the ratio. But what more? Mr. Wilson, a delegate from Great Britain, immediately said : "Her Majesty's Government did not find it possible to accept an invitation conveyed in terms_ which might give rise to a misunder standing by implying that the Government had some doubt as to the maintenance of the monetary system which had been in force in Great Britain since 1816." Speaking of Sir Charles Freemantle and himself, he said: "Our faith is that of the school of mono metallism pure and simple. We do not admit that any other than the simple gold standard would be applicable to our country." EJarly in the session the leading delegate from Ger many declared : "Germany, being satisfied with its mone tary system, has no intention of modifying its basis. ... In view of the satisfactory monetary situation of the Empire, the Imperial Govern ment has prescribed the most strict reserve for its delegates, who, in consequence, cannot take part either in the discussion or in the vote upon the resolution presented by the delegates of the United States." Germany, in that conference, then refused to dis cuss or vote one way or another "tipon a proposition simply for the enlarged use of silver. Austria-Hungary, although^ represented in the con ference, instructed their delegate to take no part in the conference, in its discussion or votes. The delegate from the Netherlands declared: 43 "That Holland would not enter into a bi metallic union without the full and complete participation of England, is a part of the formal instructions furnished us by our gov ernment." France made the same declaration practically; in fact, absolutely the same declaration, that she would not participate in any agreement unless England joined. The convention adjourned to meet again at some fu ture time, to be called again, some time within the then coming year, but it never reassembled. Afterwards, the Congress of the United States passed a bill provid ing for nine delegates to a monetary conference when ever we could find anybody who would confer with us ; and we were unable to find anyone who would join in a conference and who would talk with us about this question, and the law lapsed by limitation of time. The United States had become a capitalist nation — producing surplus wealth; exporting it in the form of goods and investment funds, living on the interest that these investments produced, and thus saddling upon the backs of the undeveloped countries of the world the burden of taking care of those nations which were rich enough to bind the poorer peoples to them by the lend ing of money. The gold standard was a part of the harness that the eastern bankers had used to drive the western farmers. The fight was lost by the free silverites. The gold standard won the day and with that victory went the triumph of protection, the establishment of a trust- controlled government, the degradation of labor, and the assurance of plutocracy's power. The Government of the United States has allowed interested parties — creditors and bankers — to manipu late its credit and volume of money in such a way as to produce panics and, by this means, to plunder those who toil. 'These panics have come at stated intervals. 44 M. Juglar (a French authority) has fully analyzed the three phases of American business life into prosperity, panic and liquidation, which three constitute them selves into a 'business cycle" which ordinarily occupies about ten years. These ten years may be apportioned roughly as follows: Prosperity, five to seven years; panics, a few months to a few years ; liquidation, three or four years. Here is a list, with dates, of all the panics in the United States during the last century, with the corre sponding dates for France and England : France England United States 1804 1803 1810 1810 1813-14 1815 1814 1818 1818 1818 1825 1825 1826 1830 1830 1829-31 1837-39 1836-39 817-39 1847 1847 1848 1857 1857 1857 1864 1864-66 1864 .... 1873 1873 1882 1882 1884 1889-90 1890-91 1890-91 1894 1894 1893-94 1897 1897 1897 1903 1903 1903 1907 1907 1907 1913 1913 1913 What evidence could be more conclusive of the utter failure of a system of economic life than these succes sive breakdowns in the machinery of production and exchange ? Yet here is the record upon which the pres ent economic system must stand condemned in the eyes of every thinking human being — the record of disaster following disaster, with neither the inclination nor the ability, on the part of the masters of business life, to 45 put a stop to these successive stoppages of economic activity. The figures just cited show that, during the past century, panics have occurred in England and France at the same time that they occurred in the United States. These three countries are linked together by the "gold standard," and their govemments are capital istic govemments — administered by the banks and creditor classes for the benefit, not of the people, but for the benefit of the rich. Furthermore, all three countries have the same, or about the same, distribu tion of wealth. In each of these countries the workers are robbed of what they produce by the same process. The creditor classes, through their privileges, are able to manipulate the money and credit through panics, so as to produce, first, a rise in prices — by expansion of money and credit, then a withdrawal of both, followed by a sudden drop in prices, and then liquidation. Or, in other words, a gathering in of all property produced by toil. With the liquidation, the cycle is completed and there follows a new cycle of ten years more, of pros perity, panic and liquidation. I have had an excellent opportunity to observe the effect of these successive economic disasters upon the producing class. I went to the Territory of Dakota in 1869 and located at Sioux Falls, near the northwest corner of the State of Iowa. At that time, all of the land in Dakota was owned by the Government and was subject to entry under the Homestead and Pre-emption laws, and could only be secured by actual settlers. The result of the panic of 1873 caused very many of these homesteaders to commute their homesteads, because the price of farm products had declined below the cost of production. As a result, the movement for farm ten ancy was begun. The United States publishes no fig ures on farm tenure previous to 1880, but by that year the percentage of tenant farmers in the rich Middle West was for Illinois, 23.7 per cent; Michigan, 31.4 per 46 cent ; Iowa, 23.8 per cent ; Missouri, 27.3 per cent ; Ne braska, 18 per cent, and Kansas, 16.3 per cent. The next great disaster to the producing classes cul minated in the manufactured panic of 1893. Grover Cleveland had been elected President of the United States upon the tariff issue in 1892, and when he took office in 1893 he called a meeting of Congress for the purpose of repealing the purchasing clauses of the Sherman law of 1890, which provided that the Treas urer of the United States should purchase and coin not less than two million dollars' worth of silver and not more than four and a half million dollars' worth during each month, thus adding to the volume of circulating medium. The cutting-off of four and a half millions of silver by the repeal of the Sherman law purchasing clauses, with its consequent decline in the volume of money, proved disastrous. The prices of all farm prod ucts fell sharply, causing the ruin of the agricultural classes and a prolonged panic nearly as disastrous as that of 1873. The members of the House of Representatives, who believed in bimetallism, called a meeting a day or two before Congress was to assemble, and 201 members of the House declared that they were in favor of both gold and silver as money, because there was not gold enough in the world to furnish a circulating medium. Two weeks afterwards, when the vote was taken in the House of Representatives on the bill to completely de mocratize silver by repealing the purchasing clause of the Sherman Act, one hundred of these members had been bought over, through patronage and money and party pressure, to the interests of the bankers, and thus the bill was passed. The panic of 1893, resulting from this act, which involved a contraction of the volume of money and a reduction in prices, again drove large numbers of people from the land and reduced agricultural produc tion below a remunerative point. As a result of this panic and the panic of 1873, the lands in Dakota, which 47 had all been owned by the cultivators, passed into the hands of the mortgage companies, the banks, the cred itors, so that in the county where I reside — Minnehaha County, South Dakota— 52 per cent of the farms now are cultivated by tenants. Within my memory, every acre of land in that county belonged to the Govem ment. Both in the panic of 1873 and in that of 1893 the results were the same. The owners and monopo lists of money used their monopoly power to squeeze the small producer and to enrich themselves. The panic of 1893 was followed by the discovery in South Africa of the richest gold deposit in the world and within the next few years these mines produced vast sums of gold to be used as money, and caused a rise in the price of everything that is the product of human toil. These were the two outstanding economic disasters that occurred during my connection with public affairs. Both arose from similar causes and both produced like results — the concentration of wealth in the hands of the few ; the bankruptcy of the small business man and of the farmer; unemployment, distress and lowered wages for the worker ; crime, suicide and murder. The great deposits of gold which had been poured into the currency of the world by the discoveries in California in the early fifties endangered the mortgage- holding classes of all the capitalist nations. Chevalier, one of the most prominent financiers of Europe, published a book in which he contended that gold must be demonetized; that the continuous use of gold as money would work universal repudiation; that it was dishonest and wicked to pay debts in gold under such a flood as was coming from Califomia and Austra lia. His voice was potent. Germany and Holland — creditor nations — closed their mints to gold and adopted the silver standard. Maclaren of England, representing the bondholders of the British Empire, made the same argument in the early fifties against the use of gold, which has since been used by gold 48 standard contractionists for more than sixty years against the use of silver. In his argument in favor of the bondholders, Chevalier said: "Our neighbors on the Continent received the announcement of these remarkable discov eries in a different spirit. From the first they have considered them of the greatest impor tance and have expressed great solicitude for the maintenance of the standard value." Immediately that the fact of a great increase in the production of gold was established, the Government of Holland — "a nation justly renowned," says M. Cheva lier, "for its foresight and probity," discarded gold from its currency. "They may," says the same author, "have been rather hasty in passing this law, but in a matter of this nature it is better to be in advance of events than to let them pass us." France appointed a monetary commission which con sidered the question of demonetizing gold for several years and, finally, reported that it was necessary to demonetize one or the other of the precious metals — that the supply was violating contracts by depreciating money with which debts were paid. Up to this time the creditor clas.ses in England, France and the United States had accepted bimetallism. The rush of Califor nia gold endangered their monopoly. The discovery of the Comstock lode threatened to deluge the world with silver, and Mr. Lindeman, Director of the United States Mint, reported in London that there were fifteen hun dred millions of silver in sight in one mine on the Comstock. When gold became very abundant in the middle of the century, the creditor classes wanted to demonetize that metal in order to make money scarce. Then came the flood of silver, and they feared that more than gold. John Sherman undertook the duty of carrying into effect in the United States the demonetizing of silver. John J. Knox, Comptroller of the Currency, a crafty, 49 scheming, money-making individual, got up a codifica tion of the mint laws. John Sherman introduced the bill, and continually talked about the silver dollar, the inscriptions on it, etc. But when the bill became a law it was found that there was no provision for a silver dollar in the bill, the trade dollar containing 120 grains taking the place of the silver dollar, and thus silver was demonetized, and it was made easy for th'e creditor classes of the world to comer gold and thus to control money. How conscientiously this control over money has been exercised is indicated by the actions and utter ances of the bankers themselves. The American Colonies had been in the habit, for a number of years before the Revolution, of issuing what were then known as Colonial Treasury notes ; the notes were made receivable by the several provinces for taxes. These Colonial notes being adopted by all the Colonies led to an unexpected degree of prosperity, so great that when Franklin was brought before the Par liament of Great Britain and questioned as to the cause of the wonderful prosperity growing up in the Colonies, he plainly stated that the cause was the convenience they found in exchanging their various forms of labor one with another by the paper money, which had been adopted: that this paper money was not only used in the payment of taxes, but in addition it had been de clared legal tender. After Franklin explained this to the British Government as the real cause of pros perity, they immediately passed laws forbidding the payment of taxes in that money. In 1862, the creditors of the United States, the Bank of England, sent the following circular to every bank in New York and New England : "Slavery is likely to be abolished by the war power, and chattel slavery destroyed. This, I and my European friends are in favor of, for slavery is but the owning of labor and carries 50 with it the care for the laborer, while the European plan, led on by England, is for capi tal to control labor by controlling the wages. THIS CAN BE DONE BY CONTROLLING THE MONEY. The great debt that capital ists will see to it is made out of the war must be used as a means to control the volume of money. To accomplish this, the bonds must be used as a banking basis. We are now waiting for the Secretary of the Treasury to make the recommendation to Congress. It will not do to allow the greenback, as it is called, to circulate as money any length of time, as we cannot control that." In 1872, the ring of bankers in New York sent the following circular to every bank in the United States : "Dear Sir: It is advisable to do all in your power to sustain such prominent daily and weekly newspapers, especially the agricultural and religious press, as will oppose the issuing of greenback paper money, and that you also withhold patronage or favors from all appli cants who are not willing to oppose the Gov ernment issue of money. Let the Government issue the coin and the banks issue the paper money of the country, for then we can better protect each other. To repeal the law creat ing National Bank notes, or to restore to circu lation the Government issue of money, will be to provide the people with money, and will therefore seriously affect your individual profit as bankers and lenders. See your Con gressman at once, and engage him to support our interests that we may control legislation." The panic of 1893 was a bankers' panic and in their interest and the ring of gambling bankers in New York sent out the following circular to every bank in the United States: 51 "Dear Sir: The interests of national bank ers require immediately financial legislation by Congress. Silver, silver certificates and "ri-easury notes must be retired and National Bank notes upon a gold basis made the only money. This will require the authorization of from $500,000,000 to $1,000,000,000 of new bonds as a basis of circulation. You will at once retire one-third of your circulation and call in one-half of your loans. Be careful to make a money stringency felt among your patrons, especially among influential busi ness men. Advocate an extra session of Congress for the repeal of the purchasing clause of the Sherman law, and act with the other banks of your city in securing a large petition to Congress for its unconditional re peal, per accompanying form. Use personal ' influence with Congressmen and particularly let your wishes be known to your Senators. The future life of National Banks as fixed and safe investments depends upon immediate ac tion, as there is an increasing sentiment in favor of Government legal tender notes and silver coinage." Mr. Alexander is right about the strength of the American banking system. Under the Federal Reserve Act the vast power of the thirty thousand American banks is concentrated in the hands of a little club with headquarters in Wall Street. This club holds in its hands the power to make or to destroy any business man in the United States ; the power to make or wreck financial institutions and inaugurate panics ; the power to issue credit, and even money. The bankers at the center of the financial web are endowed with the power of government. The right to issue money is, as I have said, funda mental. This right is exercised by the New York 52 Bankers' Club, thinly disguised as the Federal Reserve Board. On November 3, 1920, the amount of Federal Reserve notes outstanding was $3,568,713,000. What was the basis of this huge issue of paper money? Commercial paper! The member banks were permitted to lend money (or credit) to their patrons ; to take commercial paper in exchange for their loans ; to deposit this paper under the authority of the Board and to issue currency against it. This currency was again loaned out, the paper re- deposited, etc., so that the Federal Reserve Bank of New York was able to earn, by this pyramiding of credits, over 200 per cent in the frugal year of 1920, in a market where the rate of interest never ran over 8 per cent on standard securities. Through their authority over money and credit, the bankers thus became the arbiters of the business des tiny of the United States. No one elected them. No one can recall them. There is no way in which they can be made the object of public approval or disap proval. They are as far above public responsibility as was William Hohenzollern in Germany before 1914. Self-elected dictators of American life, they make and unmake; they wreck and rule. They are the heart of business America; the center of the exploiting system that sits astride the necks of the people. The United States emerged from the Great War with the best credit of any of the larger nations. Its wealth was the greatest; its income the largest, and its bank assets and resources exceeded those of any other coun try ; but this very economic position, centered as it is in the hands of bankers, will be used by them to exploit the peoples of Latin America and Asia as they have, during recent years, exploited the people of the United States. Exploitation is the profession of the banker, and those in charge of the American banking institu tions have the greatest exploiting opportunity that has ever come to the bankers in any of the modern nations. The banks are again issuing circulars and in April 53 or May, 1920, the order went out from New York, from this club which is our government, to all the Reserve Banks throughout the United States, to call their loans and to refuse credit on all the products of human toil not controlled by the combinations. The result has been, of course, the reduction in the price of everything that is produced in the way of food and raw material, and to a very low point, causing the ultimate ruin of all those who cultivate the soil. And it was not because there was not plenty of money, for there is more money several times over in circulation in the United States than ever before in our history. We have secured most of the gold of Europe, and I know of my own knowledge positively that these bankers are financing the bank rupt nations of Europe. For instance, they loaned France a hundred millions a few months ago, and within the last six months they have loaned Norway twenty millions. And so another panic is in progress. The banking system of this country is so organized and constituted as to take from the producer the result of his effort; purposely so organized; organized with the intention of controlling the volume of money ; con tracting and expanding credit so as to produce a panic, or apparent prosperity, as suits the purpose of its or ganizers and managers. This system of banking was the invention of Lord Overstone, with the assistance of the acute minds of the Rothschild bankers of Europe, and was so con structed as to enhance the importance of capital and overshadow the importance of toil. The system is one based upon a small volume of legal tender money, and the limit of this volume they would make as small as possible, in order that they may control it absolutely. Expansion by the issue of credit, not legal tender ; con traction by the withdrawal of credit. Expansion that they may sell the property of the producers, which they have taken in with the last contraction, and then contract again in order to wreck the enterprising and once more reap the harvest of their efforts. This is the 54 banking system of Great Britain, and the banking sys tem of every gold standard country in the world today. It is the banking system of the United States. This is the system the Republican party is pledged to strengthen and perpetuate. There is no hope of relief for the people of this agricultural country in any pos sible thing the Republican party can or will do. In 1873, fearing that the volume of metallic money would become too large, these manipulators of panics, these gatherers of the products of other people's toil, set about to secure the demonetization of silver and make all their contracts payable in gold. The result has been, as the thinking ones of every nation agree, that in every gold standard country on the globe, agricul tural prices have fallen steadily until we have reached a point where the cost of production is denied the pro ducer. The present Federal Reserve law adopted by the United States is but a culmination of all the infa mous banking systems ever invented by any age or people, and it has already produced the practical en slavement of the people of the United States. Banking and the issue of money and credit are the duties of the sovereign and should be performed by the Government for service and not for profit, and for the equal good of the whole population. Section 8, Para graph 5 of the Constitution of the United States says : "Congress shall have power to coin money, regulate the value thereof and of foreign coins. Congress is not by the Constitution au thorized to delegate the power to any person or corporation." The functions of money are created by law and are legal tender, a measure of value and, as a result, a me dium of exchange, and the value of the unit of money depends upon the law of supply and demand, and the volume of money should be regulated so as to maintain a steady range of prices, and this can be done by the use of index number. No substance should be used as 55 money that has any value besides its money value. And, above all, no metal should be used that has a commodity value, as the volume of money is liable to be affected by hoarding and by being shipped away to other countries, and by being consumed in the arts. In fact, money should never be international. It is the most important tool that a nation can possess for the transaction of its business, and it is more idiotic to ship it out of the country to pay balances than it would be for a farmer to ship his implements, plows and reaper away and sell them for seed ; or a manufacturer to strip his factory of its machines and sell them for raw material. 56 V. The Tariff Next, perhaps, to the money system, the tariff is the handiest weapon that the American business interests have at their disposal. I believe in a tariff, provided it is accompanied by a free and untrammeled competitive system of production. The purpose of such a tariff would be to give temporary assistance to such indus tries as are necessary to the sound economic life of a country. Once the competitive system is destroyed, however, the tariff falls to the ground, becomes merely an instrument in the hands of the Govemment for the plundering of the people through the agency of their monopolistic combinations. Under such circumstances a tariff cannot be justified unless a man is in favor of stealing. The tariff bills that I saw enacted, two by Republican Congresses and one by a Democratic Congress, aimed to distribute favors and special privileges to those indus tries that were strong enough to demand them and to enforce their demands. The Wilson Bill, pas,sed by a Democratic Congress, provided almost as much protec tion as the McKinley and Dingley bills, passed by the Republicans. The commodities on the free list were changed, but the principle of protection was accepted by both great parties. Both were serving business and business demanded protection. It was to meet this situation that I urged (May 29, 1894) a tariff commission with power to examine the books of every protected industry in order to ascertain the cost of producing these goods in the United States ; to compare this cost with the cost of producing them abroad, and thus to determine a fair rate of protection for the home industries. I urged at that time that the tariff commission be established as a permanent bureau in order to make protection a science. The business interests, who were clamoring for protection, did not wish it to be a science. On the contrary, they lopked upon it B.S a sinecure. 57 I had a further reason for believing in a protective tariff as a means of preventing nations which produced similar lines of goods from trading with one another. Commerce is a tax on industry. The act of produc ing wealth has already been finished when commerce begins. A nation should therefore trade only with na tions so situated as to soil and climate that their prod ucts are different, and are naturally necessary to comfort and happiness. The United States should, therefore, trade chiefly, not with Europe, but with the countries of the tropics, and our industries should be so adjusted that our surplus would pay for those things which we cannot produce ; and this would be our condi tion today if we produced everything to which our soil and climate are adapted. We should insist that the man who produces the things we can produce shall live here, if he wants us to buy them ; shall help support our Government ; shall be a taxpayer and a defender of our institutions; we should have the art and the artisan as well as the article, and thus be able to reproduce it. In this way, by varied industry alone, can we bring out all that is in our people, every trait of character, every variety of talent,' and can produce an unmatched race of men and an unparalleled civilization. The United States is endowed by nature with the greatest natural resources of any equal area of the earth's surface. We have the most intelligent, free, vigorous and active people. Our wealth and prosperity depend upon the amount we draw from nature's inex haustible storehouse and that, in turn, depends upon the industry, frugality and sobriety of the living gen eration. Little is left over from one age to another; the nearer we can bring consumer and producer together, the smaller the friction and the less the wear and tear and the expense of energy in making the exchange, and the greater the amount of production. It makes no difference what price we pay each other for our prod- 58 ucts; if our laws are just there will be an equal and fair distribution of wealth, and, as a result, universal happiness. The theory of free trade is beautiful, and if all the people on earth had an equal chance, were all equally intelligent, moral and industrious, and lived to gether under the same just laws, free trade rrtight be universally enacted with profit to all. But these conditions do not exist. Therefore, if we enact free trade our great natural resources and our accumulated wealth would be dissipated throughout the earth, resulting in a slight rise in the scale of living and civilization of all mankind and a great fall in the scale of living and civilization of our own people. An old illustration is apt. If you connect two ponds of water, one large and at a low level, the other small and at a high level, they will both reach the same level — the large one rising a little and the small one falling very much. So it would be with us were we to adopt free trade ; for from it results the corollary that our people must do whatever they can do and grow whatever they can produce in competition with all the rest of the world. What can we. economically produce in competition with the starving millions of Asia or the paupers of Europe? England is trying the experiment; with what result? Great aggregations of wealth; numerous mil lionaires living in incredible extravagance ; but a million of her people on an average are paupers always — twenty-eight out of each one thousand of her popula tion. One person out of every twelve needs relief to keep from starvation ; one-half of the people of England who reach the age of sixty are or have been paupers. Is this a pleasant picture — an example fit to follow? India, with the oldest civilization on the globe, has reached a little worse state than England. India suffers from a widespread famine every four or five years; eighty out of every one hundred of her people never have enough to eat ; sixteen out of every one hundred have barely enough to eat; four out of 59 every one hundred live in idleness and luxury, and these are the castes which separate the people so that there is no chance to rise and no future but death. Free trade is not a panacea, and not even a probable remedy ; and while a tariff will enrich us as a nation it will not cause a just distribution of wealth among our own people unless we have just laws which confer equal opportunities. Pursuant to this theory, I presented in the Senate on June 4, 1897, during the famous debate on the Ding ley Tariff, an argument in favor of a duty on nickel (Volume 30, page 1500) to illustrate the point I was making. "The great issues that are before the people of the United States today reach further than a controversy over the amount of tariff on any item in the pending bill. They are the great questions which determine whether we will march on in the course of freedom and liberty and maintain our republic, or whether we will become a plutocracy — ^not a plutocracy of natural per sons, but a plutocracy of artificial persons ; wJiether we will continue to be what in fact we are today — a gov ernment of the corporations, for the corporations and by the corporations, or whether we will go back to what we were in the past — a government of, for, and by the people. "The provision of the Senate Committee in regard to nickel is equivalent to no duty at all. The Senate Committee has provided as to nickel a duty of six cents per pound, and then has inserted in brackets "except nickel matte." Of course, under that provision, all of the nickel would come in, for nickel matte is simply the nickel extracted from the ore, with such other metals as accompany it in the ore. Then they can be sepa rated in this country. It would all come in free, nickel matte being free. There it is absolute free trade. That provision is a good deal like a good many other pro visions in the bill — obscure ; not intended to deceive, but having that effect. We can produce all the nickel used 60 in this country, and yet what is the history of this in dustry? There are nickel mines in Missouri, Pennsyl vania, Arkansas, Washington, North Carolina, Colo rado, New Mexico, California, Oregon, Nevada and South Dakota." Mr. QUAY: "The mines in Pennsylvania have been abandoned." Mr. PETTIGREW: "The Senator from Pennsylva nia says that the mines in Pennsylvania have been abandoned. So they have been in every one of the states I have named. Pennsylvania is no exception. So would the Pennsylvania mills be abandoned if you had free trade. Open your doors to the low-paid labor of Asia, compensated in silver, and your mills will be abandoned ; the doors will be closed. There is no ques tion about it. "Let us see what is the history of nickel. We pro duced in the United States in 1885, 275,000 pounds of nickel; in 1886, 214,000 pounds; in 1887, 205,000 pounds; in 1889, 252,000 pounds; in 1890, 223,000 pounds; in 1891, 118,000 pounds; in 1892, 92,000 pounds ; in 1893, 49,000 pounds ; in 1894, 9,000 pounds. I have not the figures for 1896, but I understand the production went on declining, one mine after another closing throughout the country. "When they are all closed, you will pay twice what you now have to pay for nickel. What is the occasion of the decline in the industry ? A deposit of nickel was discovered in Canada which is so rich in nickel and copper that the copper pays the cost of production. Therefore, the nickel costs nothing. They can put the price at any figure they choose. The moment they have destroyed the industry in this country you will pay two prices for your nickel again, and no one will dare to open the mines of the United States in view of this known competition, because they know the moment they open the mines and invest their money in the in dustry the Canadians can come in and put down the 61 price so as to wreck their enterprise and make them lose their capital. "What we want, then, is a duty upon nickel suffi ciently large so that it can be produced in this country constantly and so that we shall not be in the hands of a foreign producer, and so that with our high-priced labor we can continue the production. It will not shut out the Canadian nickel, because it can come to this market anyway, no matter what the duty is. Their nickel costs nothing. We have mines in Oregon, for instance, the ore from which has taken the premium, but it is not accompanied with copper in sufficient quantity so that the copper will pay for mining both. Yet men are ready today to go ahead, but not under the provisions of this bill, and put up works costing $150,000 to mine nickel in Oregon and Washington, provided a sufficient duty is placed upon the article so that they can mine it and be safe from absolute ruin by Canadian competition. I hold that there is justice in their claim. "We can mine nickel profitably in Dakota, but we cannot do it — we cannot get capital to do it — if we know that at our door is a deposit which can put the price where it will absolutely destroy all profit and not even permit us to make enough to pay the cost of pro duction. I hold it is good policy to place a duty upon nickel sufficient so that we can keep our mines open. Then we will always keep the price at a reasonable figure. Then, if the duty is enough so that it will assure the working of the American mines, we will not be at the mercy of the foreigners to double the price when our mines are closed. I hold that it is good, patri otic policy again to open the mines which produced al most enough nickel to supply our wants in the past, and do it by a duty of fifteen cents a pound upon nickel. and not admit nickel matte free." My argument carried no weight. The tariff was not based on any theory, nor did it appeal to science. Instead, it was an agglomeration of concessions to spe- 62 cial interests. When this became clear to me, I adopted another method of approach to the problem. These were the years when the feeling against "trusts" was running high. I, therefore, decided to relate the two problems by introducing an amendment to the tariff bill (55th Cong., 1st Session, p. 1893), providing that trust-controlled products should be admitted free of duty. In the end, the amendment was rejected, but it occa sioned a lively debate, of which I reproduce a part: Mr. PETTIGREW: "Up to the last national conven tion the amendment which I have offered was in strict accord with the platform, the principles, and the poli cies of the Republican party. But the last convention of the Republican party at St. Louis left that plank out of their platform. Previous to that time the Re publican party had declared for bi-metallism. Bi-metal- lism is dangerous to trusts, because trusts do not thrive on rising prices, but flourish when prices decline. There fore, if the trusts were to be left out, and bi-metallism left out, everything would be in absolute harmony. The platform accorded apparently with the policies of the convention. If this was accidental, if this provi sion was left out of the platform by an oversight, if it was not left out because the trusts had gained pos session of the convention, and did not desire to abuse each other, then, of course, that will be illustrated by the vote today. "In the platform of 1888 the Republican party de clared : "We declare our opposition to all combina tions of capital, organized in trusts or other wise, to control arbitrarily the condition of trade among our citizens ; and we recommend to Congress and the State legislatures, in their respective jurisdictions, such legislation as will prevent the execution of all schemes to oppress the people by undue charges on their 63 supplies, or by unjust rates for the trans portation of their products to market. We ap prove the legislation by Congress to prevent alike burdens and unfair discriminations be tween the states. "And that is good Republican doctrine. It was at that time, at the next convention, in 1892, the Repub lican party declared: "We reaffirm our opposition, declared in the Republican platform of 1888, to all combina tions of capital organized in trusts or other wise to control arbitrarily the condition of trade among our citizens. We heartily en dorse the action already taken upon this sub ject and ask for such further legislation as may be required- to remedy any defects in existing laws and to render their enforcement more complete and effective. "Today we have a chance to carry out the plank in that platform and enact those necessary laws, to enact one of those protective provisions to carry out this plat form by declaring that every article controlled by a trust or by a combination to limit production or in crease the price shall be subject to the competition of the world, unless the trust will dissolve. The punish ment is, therefore, automatic. The trust can decide whether it will go out of existence or contest the rich American market with the manufacturers of other countries. "It is absolutely and strictly in accordance with the fundamental principles of protection as laid down by the Republican party since it came into existence, for the Republican doctrine was that by protection we re duce the price of the article to the consumer; that by protection we build up competition at home ; that com petition lowers the price and does justice to the con sumer. But, Mr. President, when you allow the exis- 64 tence of a trust to control that price and then fix a tariff by which they can raise the price to the limit of the tariff, you have overturned every principle of protection. You cannot justify this bill without the amendment. . . ." Mr. ALLISON: "I asked the Senator from South Dakota, when he introduced the amendment, to allow it to be passed over, in order that it might come in at its proper place and be more maturely considered. I am strengthened in this view by the criticisms that have already been made upon the amendment. It deals with a very important subject, and deals with it in a waj' that may be effective; or, instead of working jus tice, it may work injustice. It goes upon the assump tion that the way to cure this evil is by punishing the people who are engaged in trusts by placing all the articles manufactured in the country of a like character upon the free list. It assumes also that the tariff it self is the author of the trust. "I remember very well, as a good many Senators on this floor remember, that we had a long debate on the question of dealing with trusts and the remedies some six or seven years ago. The venerable Senator from Ohio, now Secretary of State, introduced a bill upon that subject. It was referred, I think, to the Commit tee on Agriculture at first, and reported from that com mittee. That may not have been the committee. My recollection is not very distinct upon that subject. It was reported back and debated here for a week or two. Then it was referred to the Judiciary Committee and was considered for some weeks by that committee, and then reported back here and debated, and finally passed. "I submit to the Senate that a matter which may do injustice, which may be an ineffectual remedy, which may only do partially what is sought to be done, should have more mature consideration than can be given to it in debate here from day to day upon the subject. So I appeal again to the Senator from. South Dakota to allow the amendment to be passed over for the time being 65 until we have finished these schedules, and then rein troduce it when Senators on both sides of the chamber shall have an opportunity- to present modifications or amendments to it. If the Senator will do that I think it will facilitate our work on the tariff bill." Mr. PETTIGREW: "I wish to make my reply at some length. Mr. President, I will say in answer to the question of the Senator from Iowa that I have no pride with regard to the form of this amendment. All I desire is to accomplish the purpose which is clearly indicated by the amendment. Neither have I any pride in its being my amendment. • Let us discuss and point out what defects, if any, there are in the amendment. I think the subject is of sufficient importance for the Senate to consider it until we perfect the amendment. Where it is attacked in good faith, I believe the Senator attacking it should offer an amendment to the amend ment which will cure the defect. Of course, I under stand that when a Senator wishes to find an excuse for going against the amendment he can find it, and he can find it in technical quibbles. Capable and able lawyers can readily raise plenty of those. . . . We have asserted in all our arguments to the American people that the tariff produces competition, and competition reduces prices. On every stump we have told the people how an imported article. Fuller's Earth, for instance, was worth from nineteen to thirty-two dollars a ton, but we discovered it in this country and began its produc tion under a very small duty, when the price fell to twelve dollars a ton in a year and a half. It was the same with nails. It seems to me that if we wish to perpetuate the principles of protection and defend this bill, we must carry out that policy which we have so often advocated and give to the American consumer a competitive market. That is all I desire. Cannot we perfect an amendment, then, that will accomplish that object? "But, Mr President, I have my doubts about some Senators wanting to do this. I think it has been devel- 66 oped in this debate, and in the votes that have been taken, that some Senators do not want to do this. They do not want to give to the people of this country a com petitive market. . . . "Mr. President, in regard to this amendment, I have this to say : I am perfectly willing it shall go over until tomorrow, so that we may discuss and perfect it. The American people are against the trust. They are not willing tc allow any Senator in this body to vote against this amendment simply because its phraseology does not suit him. Neither are Senators going to crawl out by a quibble that amendment will not accomplish the object it has in view. It is the duty of any Senator who objects to the amendment to perfect my amend ment, and I shall be glad to accept such an amend ment." Later in the same debate Senator Platt of Connecti cut had a discussion over the duty on Fuller's Earth. During the discussion. Senator Platt accused me of not being a protectionist "except in spots." To this charge I replied (Cong. Record, 55th Cong., 1st Sess., p. 2041, June 26, 1897) : "Further, Mr. President, I do not know that I care to disclaim or admit the charge as to whether I am a pro tectionist or not. I believe that the nation should do its own work. I believe that a varied industry is neces sary to the development of the best traits of character and the highest civilization among any people. I be lieve that it is the nation's duty to encourage that varied industry which will enable every talent among its people to be developed to its fullest extent. / "Because I refused to vote for 185 per cent duty on woolen goods, the Senator from Connecticut stands up here to say that I am a protectionist only in spots. Be cause I refused to vote for 700 per cent duty on the lower grades of silk, used by the poor people of this country, the Senator from Connecticut says I am a protectionist only in spots. "Well, if to be a protectionist all over a man must 67 vote for 700 per cent duty on the cheaper articles and for 10 per cent on the higher-priced articles that are used by the rich, I am only a protectionist in spots. If to be a protectionist I must vote for an extra duty on sugar purely and absolutely in the interest of the most corrupt and demoralizing trust ever organized in this country, at the behest and dictation of a political caucus, then I am a protectionist only in spots. If I must vote for every trust, if I must vote for every com bination, vote special privileges to the few, high rates of duty, differential duty, in order that they may be encouraged in their raids upon the people of this coun try, then, Mr. President, I am not a protectionist all over. "Is the Republican party a protection party? Why, Mr. President, the issue of protection has departed from our politics. When New England made her trade with the cotton Democrats of the South for the purpose of putting a duty on cotton, thinking to break up the Solid South, she abandoned the only principle, the only issue, that gave the party character, and it has left you nothing with which to fight the next campaign. All the Republican party stands for today, inasmuch as protection is no longer an issue and the South is broken up, is as the champion of the trusts and the gold stand ard, as the special representative of the clas.ses against the masses." Thus I had tried three lines of attack. First, I had tried to have a tariff commission to determine tariff schedules on a scientific basis. Second, I had tried to show to what extent particular schedules were work ing hardship. Third, I had attempted to rationalize the tariff by denying protection to trusts. I failed along all three lines, and I failed because the tariff was not a scientific means of regulating industry, in the interest of public welfare, but a cleverly disguised method used by certain industrial freebooters to in crease their profits. During the twelve years that I was a member of the 68 Senate of the .United States no effort was ever made to pass a tariff" bill in the interests of the people of the United States ; they were entirely left out of consider ation. Two-thirds of the Senate were always lawyers and they were simply interested in passing a tariff bill that would enrich their clients and at the same time humbug the American people into the belief that it was being done in their interest. Allison of Iowa was from an agricultural state, and you would have supposed that he would have looked after the interests of the people of Iowa ; but he never did. He was in the Senate as the representative of the transportation, the financial and industrial combina tions. Platt of Connecticut, another lawyer, was in the same category. The committees were all packed in the interests of business, and a majority of each committee that had charge of the tariff or any other branch of legislation were men (attorneys, as a rule) who were there to look after the exploiters of the people of the United States. I also state without hesitation or quali fication that no trust legislation was ever considered by any committee in the Senate except with a view to allowing the trusts to prosper and flourish and, at the same time, so word the law as to humbug and deceive the American people. That the leaders were in the employ of the great industrial combinations and that they exercised considerable cunning in their practices to bring about this result. The tariff and the trusts always received the fostering care of the lawyers of the Senate and House and were never framed or in tended to be framed to protect the interests of the people of the United States. 69 VI. The Trusts I was in the Senate when the Sherman Anti-Tmst Law was passed in 1890. I was there representing a state that was rabidly opposed to trusts in theory and trusts in practice. For twelve years I worked and voted to drive the trusts out of American politics, and yet, as if in ironical comment on the futility of my efforts, the Steel Trust — greatest of them all — was organized dur ing my last year in the Senate (1901). The people of South Dakota lived on the land and still believed in the necessity for competition. They had grown up under the conviction that our civilization is founded upon the theory of evolution, upon the doc trine of the survival of the fittest, upon the law of competition. The result of this theory in the past was feudalism, or the supremacy of brute strength and physical courage, and its resulting paternalism. But feudalism, by the operation of the law of competition and evolution, destroyed itself by the subjugation of the weaker by the stronger and the creation of mon archical forms of government in its place. My history had taught me these facts. Coming from a state that was still under "the control of farm ers, small shop-keepers and professional men, I believed that this theory of competitive life held out the sound est answer to the many public questions then confront ing the country. Despite all my efforts, I witnessed the abandonment of the old theory and the adoption of a new practice — the practice of trust organization. Competition, under this theory, ceased to be the life of trade, and became an irksome form of activity that should be dispensed with at the earliest convenient moment. We, the American people, have abandoned the doc trine we often repeated and so much believed, that competition is the life of trade, and have adopted the doctrine that competition destroys trade. The practice of this new economic theory calls for the organization 70 of trusts and combinations to restrict production, to maintain and increase prices, until practically all of the important articles manufactured in the country are produced by combinations and trusts. Thus the funda mental principle of the early American civilization is overturned, and those who do not combine — the farmer, the individual proprietor, the professional man and the toilers on the land — are at the mercy of those who do combine. The rapid growth of trusts in the United States began with demonetization of silver, and the formation of trusts was the means adopted by some of the most far-seeing and shrewdest men, having control and di rection of capital invested in manufacturing and trans portation, to avert losses to themselves by reason of falling prices, which lead to overproduction and under consumption. They realized that the first effect of a decline in prices is to stimulate production, because the producers hope to make up the difference in price by larger sales at less expense. They also foresaw what the average producer fails to see, that when the decline of prices is general the purchasing power is less in the whole community, and therefore an increased produc tion can find no market at any price, so that there ex ists at the same time an overproduction of things which are most needed and an underconsumption of these very things, because of the inability to purchasS them. The organizers of the trusts did not go into the causes of falling prices. In most cases they knew noth ing about the natural effects of throwing the entire burden upon one metal constituting the basis of the money of the world, which had formerly rested upon both gold and silver. So they made the common error of mistaking effect for cause, and attributed the decline in prices to overproduction. Therefore they combined and formed trusts to restrict production and keep up prices. The effect of the successful operations of trusts is to compel higher prices to be paid for the finished 71 product, or for transportation, while they do not check the decline in the value of raw material nor in the rates of wages, nor do their managers wish to do so. I do not desire to be understood as charging that the trusts are able to withstand the general fall of prices. The ability of the consumer to pay fixes the limit be yond which prices cannot be forced, and that is the only limit upon the powers of a trust to regulate prices when the combination of domestic producers is so per fect as to defy competition at home and the tariff duty upon the imported article excludes the competition in our markets of foreign producers. Many people, during the nineties, insisted that there were no trusts. Today there are persons who believe that the trusts have been "busted" by our bluff and scholarly chief executives. The trusts were growing into positions of power in the late nineties; they re ceived an immense impetus through the economic and political events surrounding the Spanish-American War, The first fifteen years of the new century has witnessed a rounding out of the trusts and an expan sion into wider fields of activity. My particular attention was attracted to the Sugar Trust because I had come into such intimate contact with its workings in connection with my fight over the annexation of Hawaii, Prior to August, 1887, there was life and free com petition in all branches of the sugar trade. The pro ducers of raw sugars all over the world sought in the ports of the United States a market in which numerous strong buyers were always ready to take their offer ings at a price varying with the supply and demand. There was the same healthy competition among the sugar refiners as among the producers and importers of raw sugar. This was manifested by constant efforts to improve the product and to lessei ti.e cost of refining by the introduction of better processes. The distribution of the raw and refined sugar to the consumer through the usual trade channels from the 72 importers and the refiner by way of the jobber, the wholesale grocer, and the retail grocer to the family was also untrammeled. Each bought where he could' purchase to the best advantage and sold upon terms agreed upon between him and the buyer, and not dic tated by any third party. But in 1887 the enormous profits amassed by the Standard Oil Trust suggested to a few of the leading refiners the possibility of controlling the sugar trade in the same way. It was then claimed for the first time that the individual refineries through competition were unable to make sufficient money to continue in business. This seems a little strange in view of the fact that most of the refiners who had the misfortune to die or had retired from business before that time are known to have left or still possess large fortunes. Those mil- Ions, however, no doubt seemed insignificant in com parison to the potentialities of wealth offered by the adoption of trust methods. So the sugar trust was formed in the fall of 1887 by a combination between twenty-one corporations, some of which were formed out of existing unincorporated firms for the express purpose of entering the trust, which was called the Sugar Refineries Company, One of the first acts of the new trust was to close up the North River Sugar Refinery, This led to an action by the attorney-general of New York in behalf of the people for the forfeiture of the charter of the company, at the end of which the Court of Appeals declared the trust illegal, and the charter of the North River Com pany was forfeited. The trust was thereby compelled to abandon its organization and reorganize under the laws of New Jersey as the American Sugar Refining Company, a single corporation, in which were combined all the parties to the original trust. While my amendment to the tariff act, providing that trust-made products should be admitted free of duty, was under consideration in the Senate, Senator 73 Sewell of New Jersey entered the debate with a re markable question. Said he (55th Cong,, 1st Session, p, 1740) : Mr, SEWELL: "How does the Senator know that there is a sugar trust? The American Sugar Refining Company is a corporation of my state, with a very large capital and doing a large business. It is not in a trust with anybody, as I understand it. They surren dered everything of that kind three or four years ago," Mr, PETTIGREW : "Mr, President, that is a strange question and a remarkable proposition. The American Sugar Refining Company was formerly a combination of twenty-one refineries. They closed the North River Refinery, The courts of New York declared that com bination to be a trust. Then these same people formed a corporation under the laws of New Jersey, "I notice that almost every rotten corporation in this country is organized under the laws of New Jersey, I do not knew whether the laws need fixing or not; but something is the matter. At any rate, all such corpo rations go there whenever they want to get up a combi nation to get away with somebody and to be sure that they will not be troubled. They formed a combination there of all these refineries, and then they proceeded to close refineries, raised the price to the limit of the tariff, and took from the people of this country untold millions. Under this amendment any combination or corporation for this purpose, to control production and increase the price, is a trust, and therefore the Ameri can Sugar Refining Company is a trust, and the courts can so decide, "What is more, Mr, President, the president of the American Sugar Refining Company testified that they controlled the price of sugar — I read his testimony yesterday — that they fixed the price for their custom ers, and that they fixed it for everybody else, I also showed yesterday that the American Sugar Refining Company controlled every refinery in this country but four, and then I showed by the testimony of a St. Louis 74 grocer that they controlled those four ; for when this St, Louis grocer refused to sign a contract by which he was to bind himself to buy no other than sugar made by the trust at a price fixed by them — when he refused to sign that contract to take their refined sugar on commission — they refused to sell any sugar at all; and when he applied to the four independent refineries, he could not buy a pound of sugar from them. So that, after all, the combination embraces not only all the refineries in the trust, but all the others." After we passed the McKinley law, which was par ticularly favorable to the trust, Mr. Havemeyer was called before the Senatorial investigating committee, and he gave this testimony : Mr. HAVEMEYER: "We undertake to control the price of refined sugar in the United States. That must be distinctly understood." Senator ALLEN : "And the price of refined sugar in the United States is higher to the American people in consequence of the existence of the American Sugar Refining Company than it would be if the different companies in your organization were distinct and inde pendent companies ?" Mr. HAVEMEYER : "For a short time it is. Senator ALLEN: "And what difference does it make for the consumers in this country in a year in your judgment?" Mr. HAVEMEYER: "It has been in three years past three-eighths of a cent more on every pound they ate, as against doing business at a loss." In other words, the fact that they were in a trust and that they controlled the price, according to his own statement, added three-eighths of a cent to every pound of sugar consumed in this country. Senator ALLEN: "And that would be about how much in round numbers ?" Mr, HAVEMEYER : "It is a large sum in the aggre gate," Senator ALLEN: "How many millions?" 75 Mr, HAVEMEYER: "I should say it was close to $25,000,000 in three years." How did I know there is a tru«t in sugar? It has been told to everybody, until there is not a boy six years old who can read and write who does not know there is a sugar trust. Senator ALLEN : "And you intend to keep your hold upon the American people as long as you can?" Mr. HAVEMEYER: "As long as the McKinley bill is there we will exact that profit." "We will exact that profit. Is there competition? Is there any show for competition? They say they fix the price and that they are going to continue to do it so long as you keep the duty on; and yet the Senator wants to know how I know there is a sugar trust. It would be astonishing if I did not know it," That discussion took place at a time (1897) when it was still possible to feign surprise at the mention of "trusts" in the United States. After 1901, when the Steel Trust was organized, the matter was decided for good. After that everybody recognized the fact that there were trusts; that these trusts were managed by corporations; that the object of their management and manipulation was to increase the profits and the power in the hands of the business interests. During the twelve years that I was a member of the United States Senate Congress did nothing effective for the control of the trusts. The Anti-Trust Act was passed in 1890, but no effective means were ever pro vided for its enforcement. The act of 1890 was pas,sed by outraged farmers as a protest against the exploita tion under which they were suffering. By the time I introduced my amendment to the Tariff Act in 1897, it was taken for granted that combinations of capital should exist, and that these combinations should get what they could, A careful review of all legislation from the passage of the Sherman Anti-Trust Law in 1890 to the present time convinces me that it was the consistent policy of 76 Congress to protect rather than to destroy the trusts and to build up and foster the tru.sts and thus create these great combinations to exploit the American people. Before I left the Senate they were talking about them as "benevolent institutions" and today they regard them as one of the bulwarks of our civilization. Whatever possibilities there may have been in the act of 1890 disappeared with the "rule of reason" intro duced by the Supreme Court, Not "restraint of trade" but "unreasonable restraint of trade" was the meaning of those who framed this law. Finally, in 1920, came the decision in favor of the continuance of the Steel Trust on the ground that public policy demanded it. I know of no better comment on the situation than the interview given out by Judge Gary after the Court's decision was announced: "The decision as made will immeasurably add to the general feeling of confidence in the value of property and in the opportunities of business enterprise." (Bos ton "Globe," March 2, 1920.) Judge Gary summarizes the entire policy of the Fed eral Government with regard to combinations and trusts. They were organized to protect property, and Congress has done everything in its power, during the last thirty years, to make trust organizers feel secure and happy. 77 VII. Railroads Predatory power in the United States centers in three institutions — the bank, the trust and the rail road. In previous chapters I have described my rela tions with the money power and with the masters of organized industry. During my two terms in the Sen ate I had many a struggle with the representatives and bankers and trust magnates, I also had numerous encounters with the spokesman of the railroads, which were, perhaps, the most powerful and aggressive of the vested interests during the last two decades of the nineteenth century. Before I went to the United States Senate in 1889, I had built and operated a railroad from Sioux Falls to Yankton, S, D, I also began to organize and build the Midland Pacific Railroad, from Sioux Falls, S, D,, to Puget Sound, For several years I had engineers on the road locating the line through to Seattle, crossing the Rocky Mountains near the mouth of Yellowstone Lake, Consequently I was thoroughly familiar with the costs of railroad building and operation. When I entered the Senate I was of the opinion that the highways of the United States should be owned and operated by the Government, for the benefit of the people of the United States — operated for service and not for profit. At the beginning of my term I knew very little of the general operation of the railroads by the great combinations which then controlled them, but a short time in the Senate clinched this conviction by showing me that the railroads were robbing the Government as well as the people of the United States, For instance, I found that J, L, Bell, who was Second Assistant Postmaster-General, had been a railroad em ployee at a salary several times as great as that which he received as Second Assistant Postmaster-General, and that he had resigned his position with the rail roads to become Assistant Postmaster-General, and in that capacity to direct the railroad mail service. Thus 78 the railroads had taken charge ot the Post Office De partment just as they have taken charge of the courts and the Interstate Co^in^erce Commission — by the simple expedient of putting their man in control. This railroad man commissioned in the public service to look after railroad interests invariably proceeded to ex ploit the public in the interests of the special interests for which he was working. Nowhere did I see this principle more amply illus trated than in the case of railway mail pay. For carry ing the mail, during the time I served in the Senate of the United States, the railroads received ten times as much per pound as the express companies paid for carrying express matter on the same train, and gener ally in the same car. In addition, when the railway mail-cars were established, the companies rented to the Government for $6,000 per year cars that cost less than $3,000, so that the annual rental was double the value of the car. To complete the work, the railroads and their attorneys in both houses of Congress franked great quantities of Government publications and shipped them through the mails, back and forth, all over the United States, during the thirty days of each year when the mail was being weighed for the purpose of determining the amount of compensation that the railroads were to receive. From an investigation of the matter in the early years of my service I know that this practice was continued during the twelve years that I was a member of the Senate, and that millions of pounds of Government documents were shipped back and forth every year under a frank of some member of Congress or member of the Senate, during the thirty days the mail was being weighed to determine the com pensation of the railroads, and that J, Laurie Bell, Sec ond Assistant Postmaster-General and his successors, employee of the railroads rather than of the Govern ment, superintended the job. This abuse was so open and so flagrant that I offered an amendment to the Post Office Appropriation Bill, 79 reducing the compensation for carrying the mails twenty per cent, and an investigation verified the facts that I have stated ; yet the committee would not report in favor of reducing the pay of the railroads one cent. Two-thirds of the Senate and House were lawyers- very many of them in the direct pay of the railroads on a salary, or a fee, and nothing whatever could be accdm- plished. When the Senate investigated this question and brought the employees of the Second Assistant Post master-General before the Committee, they deceived the Committee in the interest of the railroads whom they were serving. I quote some of the evidence from the Congressional Record: Mr. PETTIGREW : "I will read first from the report of the Postmaster-General under the head of 'Weighing the Mails,' from the report of 1896 : " 'The Department takes every precaution at its command to insure honest weighing of the railroad mails. But this has not prevented one or two attempts on the part of the rail road officials to pad the mails during the weighing season,' What are the facts ? The Seaboard Air Line procured 1!6 tons of public documents franked by some member of the House of Representatives or of the Senate, They can secure them without the connivance at all of the persons who frank them. They ship them back and forth to their station agents. They ship this franked matter during the weighing season to a station, and have their agents take out the packages from the bags, redirect them, and mail them again. So they kept these 16 tons of frankable matter going for thirty days. The Department determined to have a reweigh- ing. They had a reweighing for thirty days more, and then the railroad company secured an extra edition of a newspaper that weighed 5 tons; they shipped that back and forth along the line, and distributed it over 80 the line during the thirty days, and when the Post master-General complained, they asked him what he was going to do about it. And Mr, McBee, the man ager of the road, asked the Postmaster-General why the Seaboard Air Line had been singled out as a sub ject for criticism for stuffing the mails during the re- weighing period, when it was well known that all rail roads practiced the same fraud upon the Government, So it is the general practice. There is no doubt about it. Everybody knows it. We do not need to investi gate the matter much to learn that fact, . , ," There is a great profit in carrying the mail which pays 2 cents postage, and so the railroads have organ ized on their own hook a postal system which defrauds the Government out of hundreds of thousands, and I believe millions, of dollars a year because that branch of the service, the carrying of letters, is profitable. The railroads did not stop with the exploitation of the Government — they were criminal in their treat ment of the public. The railroads gave very low rates to their favorites, and very high rates to the rest of the people. They determined which men should pros per and do business and which men should be made bankrupt by their discriminations. They also deter mined, through their rates, which town should grow and which should languish, A prosperous town could be destroyed and its industries closed by giving to its rival town a railroad rate of one-half or less, and this ^vas done constantly. The Interstate Commerce Com mission was created for the purpose of correcting this and similar abuses. Eleven years after the law was passed creating the Commission, I find this statement in the annual report (1898) : "We are satisfied from investigations con ducted during the past year and referred to in another portion of this report, asf-well as from information which his perfectly convinc ing to a moral intent, , , , that a large part 81 of the business at the present time is trans acted upon illegal rates. Indeed, so general has this rule become that in certain quarters the exaction of the published rate is the excep tion. From this, two things naturally and fre quently result: First, gross discriminations between individuals and gross preference be tween localities; and these discriminations and preferences are almost always in favor of the strong, and against the weak. There is probably no one thing today which does so much to force out the small operator, and to build up those trusts and monopolies against which law and public alike beat in vain, as dis crimination in freight rates. Second, the busi ness of railroad transportation is carried on to a very large extent in conceded violations of law. Men who in every other respect are reputable citizens are guilty of acts which, if the statute law of the land were enforced, would subject them to fine or imprisonment," Further on, the report of the Interstate Commerce Commission says: "Discriminations are always in fa vor of the strong and against the weak. This condi tion the law seems powerless to control," Thus the railroads were above the law. The United States judges, generally selected from the ranks of the corpo ration and railroad attorneys, go upon the bench to construe the law, which they do in the interest of their former employers, A prominent oil refiner of Pennsylvania, writing un der date of October 4, 1899, after setting forth his com plaint against the railway discrimination in favor of the Standard Oil Company, gives his experience as follows : "I manufacture 35,000 barrels of oil per month. Seventy per cent of that is marketed in Europe where the railroads are controlled by the governments. We have no difficulty in 82 competing with the Standard Oil Company in those countries, because our tonnage is car ried as cheap by the Government as that of the Standard Oil Company, although the Standard Oil Company ships one thousand times more to the interior of the several coun tries than I do. The reason that I am obliged to send 70 per cent of my oil across the Atlantic Ocean to be marketed is because I cannot transport it over the railroads of the United States at the same rates as the Standard Oil Company," How much influence the railroads exerted in build ing up the trusts may be readily inferred from the following instance: The Tin Plate Trust was endeavoring to make terms with an independent producer; he replied that he felt no desire to change his methods; his com pany was making money, doing well in fact, and were quite satisfied with their plant and its owner ship. The promoter of the trust advised the presi dent of the company that it would be better to sell out ; but finding his offers of no avail to secure the property he proceeded to threats, "You are enjoy ing certain concessions in your freight rates," he said, "All your profits would cease if these freight rates were withdrawn ; if you will not sell to us, we will see what we can do," In a few days the manager of the railway wrote the independent mill owner that the rates conceded the company would have to be withdrawn, because," etc. The mill-owner called a meeting of the stockholders and bondholders, ex plained the situation, and in two weeks the mill was turned over to the trust. So much for the attitude of the railroads toward the Government and towards the people of the United States, Now, a word as to another phase of their activity — the financing, 83 The railroads of the United States when they were constructed were bonded for more than they actu ally cost, and then those who were manipulating them issued common and preferred stock for con siderable more than the amount of the bonds. Thus both bonds and stocks are simply gambling chips which can be used to swindle the American public. Railroad securities should be the most stable of all securities because the railroads are the highways of the nation, and their service is absolutely essen tial and reasonably uniform. Yet for many years these railroad securities have been the football of gamblers. While I was in the Senate the price of the leading railroad stocks fluctuated from 30 to 300 per cent in a single year, and the price of the bonds from 5 to 100 per cent. At the same time, the bulk of the stocks paid no dividends, and large numbers of the bonds paid no interest. To show how largely fic titious these stocks and bonds were considered, I take the following table from the report of the Interstate Commerce Commission: Per Funded debt Per cent cent of (exclusive of of total equipment trust total Per cent paid Stocks stock obligations) funded Nothing paid . . $3,570,155,239 66.26 $ 852,402,622 15.82 From 1 to 2. . 142,496,300 2.65 176,996,988 3.28 From 2 to 3. . 118,096,361 2.19 162,789,940 3.02 Frora 3 to 4.. 96,348,397 1.79 673,945,852 12.51 Frora 4 to 5. . 385,381,689 7.15 1,766,290,104 32.77 From 5 to 6. . 409,778,699 7.60 928,046,512 17.22 Frora 6 to 7.. 198,603,262 3.69 562,732,833 10.44 From 7 to 8. . 244,736,724 4.54 229,716,648 4.26 Frora 8 to 9. . 127,852,050 2.37 27,762,600 51. Frora 9 to 10. . 6,698,055 .13 5,014,300 .09 10 and above. . 88,121,545 1.63 4,236,300 .08 Total . $5,388,268,321 100. $5,389,934,599 100. We see from this statement that three and one-half billion of the five and a half billion of railway stock paid no dividends, while nearly a billion of the bonds 84 received no interest, and six hundred millions more of stock and bonds paid only a return between 1 and 3 per cent. These facts are only noted in order that the notion of the total value of railways may not be erroneously inferred from a merely nominal capi talization. The situation is well summed up in the case of the Union & Central Pacific Railroads which were con ceived in the womb of the Republican Party; were born into the world as the full-fledged children of corruption and iniquity, and which never for one day drew an honest breath, Ames and his associates (who were, like Ames, the, most prominent bankers and business men of their day) organized the Credit Mobilier, came to Washington, and acted as mid- wives for the Congress of the United States while it gave birth to these twins, Ames and his associates distributed the stock of the Credit Mobilier among the Senators and members of the House of Representatives, every Republican member with a particle of influence receiving a share, while almost all of the prominent Democratic leaders were taken care of in the same manner. Thereupon laws were passed by which the Govern ment of the United States gave these two roads a land grant of half of all the land ten miles wide on each side of the track from Omaha to San Francisco, and in addition furnished a sum of money more than sufficient to build and equip the roads. In exchange for this grant of money, the Government received a second mortgage. The roads never paid any in terest to the Government, and in 1896 when the sec ond mortgage fell due the managers of the roads selected a reorganizing committee of professional ex ploiters to devise ways and means to swindle the Government out of its money, — principal and inter est. This reorganization committee consisted of Marvin Hughitt, President of the Chicago and North 85 Western Railroad, Chauncey Depew, President ofthe New York Central, and Louis Fitzgerald, T. J. Cool- idge and Oliver Ames, who represented the Goulds of New York and the Ames crowd of Boston, I met this proposal of the reorganization commit tee by introducing a resolution directing the Secre tary of the Treasury to proceed at once to foreclose the mortgage held by the Government on the Union Pacific and the Kansas Pacific companies; to pay off the prior liens and the floating indebtedness; to as sume control of all the property of the two roads, including the Federal land grants ; to take possession of the roads, and to pax the necessary costs by the sale of three per cent bonds. I will let the Congressional Record tell the rest of this story : Mr, PETTIGREW: "Mr, President, I wish to cafl the especial attention of the Committee on Pacific Railroads to this resolution, for I think it outlines a method by which to solve this much-discussed ques tion in a businesslike manner, and in the only way it can be solved with credit to the Government, We have only the interests of the whole people to con sider. There are no equities in this case in favor of the present stockholders of these roads, and I will show that the reorganization committee of the stock holders of the roads are entitled to no consideration whatever, as they represent the heartless and un scrupulous scamps that have been robbing the Govern ment and the public for a generation, casting re proach upon our Government and our people that must make every honest citizen blush with shame, "The stockholders and owners of the first mort gage bonds on the Union and Kansas Pacific Rail roads have appointed a committee to reorganize the road and to settle with the Government for its second mortgage upon the property. This reorganization committee proposes to issue one hundred million of 86 fifty-year 4 per cent bonds on about 1,900 miles of road — that is, the road from Omaha to Ogden, which is the main line of the Union Pacific, and about 400 miles of road from Kansas City west, which is the Kansas Pacific Railroad, , . , "This 1,900 miles of railroad can be reproduced for $23,600 per mile, and yet the Government of the United States is asked to go into partnership with a party of dishonest men, and bond and stock the road for $123,600 per mile, and the public whom this road serves is to be called upon to pay interest on this vast sum, . , , "But they go further than this, and tell us how they will distribute this vast amount of stocks and bonds. They propose that the Government shall take $34,000,000 of the bonds, which is just equal to the principal of the Government's claim against the roads, and shall take $20,000,000 of the pre ferred stock in full payment for all the defaulting in terest ; that the first-mortgage bonds, which amount to $34,000,000, shall be taken up and a like number of these new bonds issued in their place; and for every $1,000 of bonds issued to the present holders of the first-mortgage bonds of these roads, $500 of preferred stock shall be issued as a bonus, the re mainder of the stock and the remainder of the bonds to be the property undoubtedly of the conspirators in this stupendous transaction, "Let us see who are the men who compose this re organization committee of the Union and the Kansas Pacific railroads. This reorganization committee is composed of five members, Louis Fitzgerald, T, J. Coolidge and Oliver Ames being three out of the five members of the reorganization committee (who rep resent the old management of the road, the Goulds of New York and the Ameses of Boston), the other two being Marvin Hughitt and Chauncey Depew. While every one of the receivers who are now man- 87 aging and operating the road is in the interest of this gang of highwaymen who have plundered the public with this instrumentality in the past, three of the re ceivers, namely S, H, H, Clark, who was formerly manager and for years president of the road, has been and is the representative of the Gould interest; Mr, Mink, of Boston, was comptroller of the com pany and has been for years its vice-president, and is also an executor of the will of the late Fred L. Ames, and is of course the direct and immediate rep resentative of the Boston crowd of highwaymen who, through the use of this highway — the Union and the Kansas Pacific Railroads — have robbed the pubhc and the Government for the past thirty years. The third receiver, who has always acted with this in terest, is E, Ellery Anderson, who has also been for several years a Government director, and was placed there for the purpose of protecting the Government's interests, but has never undertaken to protect the Government's interests, and has always acted in the interest of the old and dishonest management. The other two receivers of the road, Coudert and Doane, seem to have a leaning in the same direction, for they have been Government directors, and have never remonstrated against the frauds which have disgraced the management of these roads, and of which they must have had knowledge, "If this reorganization plan is carried through with the assistance of the Government the road will have to earn 4 per cent of $100,000,000 of bonds and 5 per cent at least on $75,000,000 of preferred stock, and the people along the line of the road will be charged a rate sufficient to accomplish this result, even if no dividend whatever is paid upon the $60,- 000,000 of conimon stock. This interest , charged, then, will amount to $7,750,000 a year, which would be an unjustifiable burden upon the people who are served by the road. The only reasonable and proper 88 thing for the Government of the United States to do is to take possession of the road, issue its own bonds bearing 3 per cent interest as provided by the reso lution which I have offered, pay the first-mortgage bonds of $34,000,000, refund to the Government of the United States the $53,000,000 now due to the Government from these companies, take up and pay the floating debt of these roads of $12,000,000, and thus get possession of the bonds and stocks which are held as collateral security for this floating debt, and thus acquire title to $98,.000,000 par value of the branch lines' bonds and stock, the market value of which is at least $42,000,000 at the present time, thus taking possession of all the branch lines of these roads, amounting to 4,000 miles of track, and oper ate the whole as one great system, "In this way the Government would realize every dollar these roads owe it. The interest charged would be only 3 per cent on $100,000,000 of bonds, or $3,000,000 per annum, instead of $7,750,000 un der the plan proposed by the reorganization com mittee. The rates for carrying, freight and pas sengers would therefore be much less. There would be no incentive for discrimination in favor of persons or places ; every man and every town would have an equal opportunity, and the scandal of our Govern ment connected with the Union Pacific management would disappear from the pages of our history," I have devoted more space to the Union & Central Pacific than I would were it not for the fact that their history, management and method are a true picture of the railroad situation in the United States, Before I leave the subject I should like to quote an interesting passage from the autobiography of Charles Francis Adams, who was made President of the Union Pacific Railroad in 1884, Mr, Adams, in referring to the dealings between the Union Pacific and the Government with regard to the second mort- gage which the Government held on the road, on page 192 writes: "I was sent over to Washington to avert the threatened action of the Government, and then and there I had my first experience in the most hopeless and repulsive work in which I ever was engaged- transacting business with the United States Govern ment and trying to accomplish something through Congressional action. My initial episode was with a prominent member of the United States Senate- This senator is still (1912) alive though long retired. He has a great reputation for ability and a certain reputation, somewhat fly-blown it is true, for rugged honesty. I can only say that I found him an ill- mannered bully and by all odds the most covertly and dangerously corrupt man I ever had opportunity and occasion carefully to observe in public life. His grudge against the Union Pacific was that it had not retained him. While he took excellent care of those competing concerns which had been wiser in this respect, he never lost an opportunity of posing as the fearless antagonist of corporations when the Union Pacific came to the front. For that man, on good and sufficient grounds, I entertained a deep dislike. He was distinctly dishonest — a senatorial bribe taker," Early in my term of service in the Senate, the rail roads began to combine and to pool the freight and to agree upon rates. The combination of the rail roads was in violation of the Anti-Trust Law, but the law had been framed to make it as easy as possible for the corporations to evade its provisions, and the railroads cared nothing about the Anti-Trust Law because their lawyers were in the executive offices and on the bench. When the Joint Traffic Asso ciation was organized in violation of the Sherman Anti-Trust Law, and suit was brought by the Gov ernment to dissolve it on that account, it was found 90 that the Association was a combination of thirty-two of the leading roads in the United States to pool the business, agree upon the division of traffic, and have uniform rates, so far as the public was concerned; that Hobart, Vice-President ofthe United States, was one of the arbitrators and drew a salary as such arbitrator for this Joint Traffic Association, and when the suit was brought before the United States Court in New York, Judge Lacombe announced from the bench that he was disqualified from sitting on the case because he owned the stocks and bonds cf the defendant railroads, and he said: "I am of the opin ion that there is no judge in this Circuit but that is suffering a like disqualification," In 1874, the Senate of the United States, in response to a general demand, appointed a Special Committee on Transporattion, composed of W^illiam Windom, of Min nesota, John Sherman, of Ohio, Roscoe Conkling, of New York, H. G. Davis, of West Virginia, T. M. Nor wood of Georgia, J. W. Johnson, of Virginia, John H. Mitchell, of Oregon, and S, B, Canover, of Florida, The committee occupied the entire summer of 1874 in making an exhaustive examination of the subject, and in their report we find the following : "In the matter of taxation, there are today four men representing the four great trunk lines between Chicago and New York, who possess, and who not unfrequently exercise, powers which the Congress of the United States would not dare to exert. They may at any time, and for any reason satisfactory to themselves, by a single stroke of the pen, re duce the value of property in this country by hundreds of millions of dollars. An additional charge of five cents per bushel on the trans portation of cereals would have been equiva lent to a tax of forty-five millions of dollars. No congress would dare to exercise so vast a 91 power upon a necessity of the most imperative nature, and yet these gentlemen exercise it whenever it suits their supreme will and plea sure, without explanation or apology. With the rapid and inevitable progress of combina tion and consolidation, these colossal organi zations are daily becoming stronger and more imperious. The day is not distant, if it has not already arrived, when it will be the duty of the statesman to inquire whether there is less danger in leaving the property and in dustrial interests of the people thus wholly at the mercy of a few men who recognize no responsibility and no principle of action but personal aggrandizement," All of these facts convinced me that the only pos sible remedy was the Government ownership of the railroads, I therefore prepared and introduced a bill for this purpose (Senate Bill No, 1770) on the 18th day of December, 1899. This bill provided that the railroads should be operated under the Post Office Department, and operated for service and not for profit, and that the owners should receive United States bonds for the actual value of the prop erty. At that time the roads would have cost the Gov ernment between four and five billions, although they were capitalized at from eight to nine billions, in cluding the stocks and the bonds, I also included in this bill a provision that all rates should be abso lutely uniform, alike for everybody in proportion to the service rendered ; that passenger fares should not exceed one cent per mile, and I showed conclusively that passengers should be carried in this country at a profit at one cent per mile, provided no passes were granted, I knew the extent of the pass abuse. I knew that every politician and every lawyer of any prominence, and every judge, and every con gressman, and everybody else that had any pull, rode 92 upon a pass, and that the public was charged two prices for riding, in order to pay the railroads for carrying free those people who could best afford to pay their fare, I also provided for a Commission of Transportation in this law, under the Post Office Department, to operate the roads and to remove the control, as far as possible, from political influence. The bill also pro vided that the express business should be done by the Government, and I showed that the express business could be done at a cost to the public of less than one-half the price charged by the express companies if done by the Government through the Postoffice on Government railroads. When I introduced the bill and had it printed, some of my friends came to me and said: "Well, what will your friend James J, Hill think of your introducing a bill for the government ownership of the railroads ? " I said : "James J, Hill is a big man ; he is one, out of the whole railroad system, that is not a stock gambler, and I sent him the first copy of the bill that was printed," Some months after ward, when I met Mr, Hill, the first thing he said was: "I received your Railroad Bill, and you are entirely right about it. If the railroads are going to combine — and" said he, "they are going to combine — the only way the public can be protected from robbery is to have the Govemment own the rail roads." Needless to say, my bill received scant considera tion and little support from the champions of priv ilege who dominated the House and Senate, nor need I add that its introduction marked me as a man who should be eliminated from public life at the earliest possible moment, I am now of the opinion that the Govemment of the United States should take the railroads and cancel all the outstanding stocks and bonds without making any payment to the holders 93 of the same. There are no innocent owners. The railroads are the highways of the nation and have been built and paid for more than once by the Ameri can people, but are now in the hands of a gang of gambling scoundrels who are using these highways to enrich themselves and their favorites and to rob and exploit the whole population. To take the roads without paying anything to these thieves is not con fiscation or robbery, but simply returning the stolen property to its rightful owners. The Interstate Commerce Commission has just is sued a report showing that, out of 627,930 stock holders in the various railroads of the United States, the majority of stock is owned by only 8,031 persons or 1,3 per cent of all the stockholders. The Commission, through its Bureau of Statistics, has discovered that of a total of 97,475,776 shares of all the railroads, 50,873,322 shares are held by the small minority, an average of 6,130 shares each. The balance of 46,602,454 shares is owned by 649,- 629 stockholders, an average of 75 shares each. The 8,031 stockholders who own the majority stock in clude holding companies of railroads, as well as other corporations. It also includes the stock held by voting trustees and estates. The Interstate Com merce Commission's Report distributes these hold ings as follows : Shares Held by other railway companies 24,638,407 By other corporations or partnerships, , 11,565,838 By voting trustees 5,307,043 By estates 1,333,961 By individuals (males) 6,945,205 By individuals (females) 1,082,868 The report shows that of 100,000 stockholders in the Pennsylvania Railroad, the largest twenty own 8,9 per cent of the total stock outstanding; that of the 27,000 stockholders in the New York Central, 94 25.1 per cent is held by the largest twenty stock holders. The largest twenty shareholders in the Illinois Central own 41,6 per cent; in the Southern Pacific 23 per cent; in the Southern Railway, 37.7 per cent; in the Chicago & Northwestern, 20,9 per cent; in the Great Northern 18,5 per cent; in the Northern Pacific, 19,8 per cent; in the Chicago, Mil waukee & St, Paul, 18.5 per cent; in the Lehigh Valley, 18.1 per cent; in the Baltimore & Ohio, 17.4 per cent; in the New York, New Haven & Hartford, 15.3 per cent; in the Erie, 19,7 per cent; in the Atchison, Topeka & Santa Fe, 14,3 per cent. One hundred per cent of the stock of the Penn sylvania Company, which owns all the Pennsylvania Lines west of Pittsburgh and Erie, is owned by 17 shareholders, including the Pennsylvania Railroad Company, which is the holding concern. The en tire stock of the Philadelphia & Reading, one of the principal coal roads, is owned by thirteen stock holders, including the Reading Company; and 99,5 per cent of the stock of the C, B, & Q, is owned by the twenty largest shareholders out of a total of 326 shareholders. The largest blocks of stock of the Erie; Phila delphia & Reading; Wabash; Southern; Chicago, Milwaukee & St, Paul; Great Northern; Northern Pacific ; Chicago, Rock Island & Pacific and Union Pacific are held by corporations or partnerships other than railways. Of the Wabash stock, 46,000 shares are held in Amsterdam, Holland, and 36,000 shares by fourteen New York and one Boston concern. Of the Chicago, Milwaukee & St, Paul, 216,000 shares are held by eleven New York concerns; the bulk of the stock of the Virginia Railway is held by the Tidewater Company; the stock of the Bessemer & Lake Erie is owned by the United States Steel Corporation. Virtually all the corporations that are among the 95 largest shareholders of tlie various railroads do busi ness with these railroads and obtain special advan tages. The earlier reports of the Interstate Commerce Commission show that the largest industrial monop olies of the country were favored by the railroads to the extent of hundreds of millions of dollars in rebates, drawbacks and differentials; and that the railroads were managed largely in the interest of these monopolies as against the interest of rival con cerns and the public generally. This is particularly true with reference to Standard Oil, as disclosed by reports of the Interstate Commerce Commission and by the testimony of witnesses before Congressional Investigation Committees. The par value of railroad stocks is generally $100 a share, which means that the 97,475,776 shares of the railroads are estimated to be worth $9,747,- 577,600, The total value of the bonds issued by the various railroads up to December 31, 1916, is esti mated at' $11,202,607,096, It is obvious from this record that the control and ownership of the stocks of the railroads of the United States is concentrated in the hands of those who enjoy excessive private fortunes and there is no doubt that a similar or more acute state of concen tration exists in all other monopolistic corporations. It is quite evident, from the facts above adduced, that the Morgan and Rockefeller groups own the controlling interest in the railroads of the United States, The common people who own stocks and bonds in the roads are so few in number that they have neither voice nor power in the management, THE "WIDOW AND ORPHAN" CRY IS AN OLD "WOLF" CRY OF THE BANKERS AND SPECU LATORS WHO HAVE STOLEN THEIR CONTROL OF THE TRANSPORTATION SYSTEMS OF THE COUNTRY, IF THERE ARE ANY CONSIDER- 96 ABLE NUMBER OF WORTHY WIDOWS OR OR PHANS OR "COMMON PEOPLE" HOLDING STOCKS IT WERE BETTER TO PENSION THESE PEOPLE FOR LIFE AND PROCEED TO TAKE OVER THE RAILROADS, After many years of investigation devoted to this subject, I am convinced that the highways of the nation should be taken over by the Government and operated for the good of the people. The Government of the United States took over and operated the roads for a little over two years during the war, at the request of the railroads, under terms and conditions that were absolutely infamous, by which the government was plundered out of billions of dollars. But before the roads were turned over to the Govern ment to operate, these scamps (who ought to occupy cells in our penitentiaries), and I mean by that the bankers of New York, the Federal Reserve Board, the managers and owners of the railroads, and the great industrial trust combinations, organized companies to take over the shops of all of the great railroads con trolled by them. These companies were incorporated under the infamous laws of New York and New Jersey and all of the shops of the great railroads were con veyed to those companies, not only the repair shops, but the great factories where they manufacture equip ment for the railroads of every kind and sort, so that after the Government began the operation of the roads they had to hire all of their repairs, and buy all of their equipment of these great combinations, and they paid from four to ten times as much as the service and material was worth that they bought of these inside corporations controlled by the biggest stockholders of the railroads. They also organized terminal companies wherever the terminals were of great value, in all the g:reat cities of the U^nited States, and separated the terminals from the railroads, and then they charged as rent for the 97 use of the terminals, a rental in many instances, as high as one hundred per cent per year on actual cost of the terminal. For these terminals were conveyed to these companies for the purpose of swindling the Gov ernment during its operation and to make it appear that the operation by the Government of the roads did not pay, and owing to the enormous prices which these men compelled the Government to pay, not only for terminals and switching facilities, but for repairs and new equipment, accounts for the failure of the roads to be properly bperated by the Government, But the roads were not really operated by the Government at all. Ostensibly they were. That was the talk, but the fact is that the management remained in the hands of the old crowd. I know very intimately the president of one of the great railroads. He was president during the entire time that the Government pretended to operate the roads, and he is still president of the road at a salary of fifty thousand dollars a year. The president of that road is the operating man, and he continued to operate the road just the same as he always had, while the Government had control, and he assured me that that was the case with practically all of the roads. They were simply using the camouflage of government own ership and operation to plunder the Government and the public generally, and he said to me, "We have no interest in making government control popular." But while it was an infamous transaction to turn the roads over to the Government, the crowning infamy was the Cummings bill, by which the railroads were taken back from the Government, to whom they had never been conveyed, and the Government guaranteed dividends on their stock and interest on their bonds, THE REMEDY IS FOR THE GOVERNMENT OF THE UNITED STATES TO TAKE OVER ALL THE RAILROADS WITHOUT PAYING ONE CENT FOR THEIR STOCKS OR BONDS. The railroads have 98 been paid for by the American people over and over again, and they are the property of the American people. They are the highways of the nation. They are in the hands of a small number of gambling bank ers who use the stock and bonds as chips in the gam bling game to swindle the public. There are no in nocent purchasers of their stocks, and if any of the stocks are owned by widows or orphans, they are widows and orphans of a gambler, and if they are impoverished by the cancellation of these stocks and bonds and the taking over the railroads by the people of the United States, and are unable to work, I am perfectly willing that an asylum should be built to take care of them as long as they live. The owners of the railroads are entitled to no con sideration whatever from the American people. They have forfeited all right to any consideration whatever. It is now nearly twenty-five years since I introduced a bill in the Senate of the United States to take over and operate the railroad companies for service, and not for profit ; operate them by the Postoffice Department. I showed in an argument in the Senate that the rail roads could reduce their freight rates one-half and still be operated at a profit, if all favors granted to big trusts and combinations were eliminated and the serv ice granted to all the people on equal terms. I showed that the practice was for the big stockholders to be come interested in some manufacturing enterprise and then cut rates to less than half what they gave to the public, to the favored enterprises. I showed that these people who could afford to pay their fare rode on a pass, and that the common people paid three to four cents a mile, and I provided in this bill that passenger fares should hereafter, under government ownership, be one cent per mile for everybody, and no passes granted to anyone. I showed that express could be carried on government owned railroads for one-third what the public was now paying for this service. I 99 then proposed to buy the roads and pay for them by using Government bonds, a sum equal to their actual physical value. But since then the conduct of the rail road managers has been such that there is no justifica tion whatever in buying the roads. They should be taken over as the highways of the United States and operated for the general welfare and their stocks and bonds cancelled and destroyed. This is not confisca tion or robbery, it is restoring stolen property to its rightful owners and it would be well to put the thieves in jail so that they cannot steal something else. 100 VIII. Labor I have tried in the preceding chapters to describe some of the more important economic changes that have occurred in the United States during the past fifty years. All of them relate to business, to the rich, the powerful. The control of the banks; the right to issue money; the tariff-privileges enjoyed by the favored few ; the organization of the trusts, and the manipulation of the railroads — these were the outstanding features of a system that gave prop erty-holders first choice in all of the important eco nomic relations of life. A visitor to the United States, during these years, would have supposed that the workers did not count for much, one way or the other, but that the very heart and soul of existence consisted in putting more money into the hands of the rich. Indeed, this was the atti tude taken by a majority of my colleagues in both houses of Congress, The whole trend of legislation was toward the grant ing of privilege. The lawyers, who composed both houses of Congress, were representatives of the busi ness interests. They never asked the question : "What does the public welfare demand?" Instead, their one thought was: "What do my clients want?" Therefore, their actions were always directed toward the protec tion of property and never toward the protection of the workers. Perhaps I can best illustrate this point by reference to an experience which I had with a bill requiring the railroads to report accidents. During the whole twelve years of my service in the Senate, only one bill, even remotely in the interests of labor, became a law. All of the others, and there were hundreds of them, were either reported from the com mittees adversely, or not reported at all. If reported and passed through the house where they originated, they were always killed in the other body. If a bill 101 originated in the Senate and passed the Senate, the committee in the House would never report it. If a bill passed the House and came to the Senate, the Senate committee would not report it ; or, if the coramittee did make a report, it was done in such a manner that the bill was sure to receive no serious consideration. Al though the American Federation of Labor always had its lobbyists at work, and there were other labor organ izations that had their representatives urging the pas sage of legislation, the clever manipulation of bills by bodies of both houses offered a guarantee that nothing definite or effective would ever be accomplished. Finally, during the last year of my service in the Senate, a bill passed the House requiring railroads to file with the Interstate Commerce Commission monthly reports of accidents — their causes and the names of the persons injured. The bill was referred to the Com mittee on Interstate Commerce. Late in the session, the representative of the rail road men, who had been working for a year to have this bill passed, came to me and said he could not get the Senate Committee to report the bill. He asked me to take charge of it and see if I could not secure its passage. This was some time in January, 1901, and my term as a Senator expired on the 4th of March. I asked him to describe in detail the steps that he had taken to secure its passage. He gave me the in formation, and concluded with the observation that, in his judgment, the Senate did not intend to pass the bill, I gathered that he came to me as a sort of forlorn last hope, I finally told him that I would take charge of the bill, provided it was understood that I had full charge, and I promised him that I would make it exceedingly inter esting for the Interstate Commerce Committee if it did not allow the bill to pass, I told him, furthermore, that it would be a hot fight in which some bitter enemies would be made for all who supported the bill, I further told him that my method would discourage him, but 102 that, in my judgment, it was the only method that had even a remote chance of .success. If I would have his full support under these circumstances, and without any interference, I was willing to take the bill. To this proposition he heartily agreed. I then went before the Committee on Interstate Com merce at its next session and gave vigorous reasons why the bill should be reported.* The railroad attor neys on the committee — Wolcott of Colorado and others — protested that the reports of the railroads would be examined by shyster lawyers and used to begin suits for damage. I said : "That is not the reason * The bill was worded as follows : "An Act requiring com mon carriers engaged in interstate commerce to make full re port of all accidents to the Interstate Commerce Commission. "BE IT ENACTED BY THE SENATE AND HOUSE OF REPRESENTATIVES OP THE UNITED STATES OF AM ERICA IN CONGRESS ASSEMBLED: "It shall be the duty of the general manager, superintendent or other proper officer of common carrier engaged in interstate commerce by railroad to make to the Interstate Commerce Com mission, at its office in Washington, District of Columbia, a monthly report, under oath, of all collisions of trains or where any train or part of a train accidentally leaves the track, and of accidents which may occur to its passengers or employes while in the service of such common carrier and actually on duty, which report shall state the nature and causes thereof, and the circumstances connected therewith. "Sec. 2. That any common carrier failing to make such report within thirty days after the end of any month shall be deemed guilty of a misdemeanor and, upon conviction thereof by a court of competent jurisdiction, shall be punished by a fine of not more than one hundred dollars for each and every offense and for every day during which it shall fail to make such report after the time herein specified for making the same. "Sec. 3. That neither said report nor any part thereof shall be admitted as evidence or used for any purpose against such railroad so making such report in any suit or action for dam ages growing out of any matter mentioned in said report. "Sec. 4. That the Interstate Commerce Commission is au thorized to prescribe for such common carriers a method and form for making the reports in the foreging section provided. "Aproved March 3, 1901." 103 why you oppose this bill. Your clients have ordered you to kill this bill because they, the railroads, are not obeying the law as to safety appliances. It costs money to stop killing, so they refuse to obey the law while they continue to kill. You know as well as I do that more people, both employees and passengers, are killed on American railroads than by all the other rail roads in the world. An amendment to the bill will prevent the report being used against the roads in damage suits." The next day the Committee reported the bill with four or five amendments, any one of which would have made the law, if passed, practically inoper ative. I called up the bill for passage, and showed to the Senate the meaning of the amendments offered,. Mth the result that I had the first amendment rejected by the Senate after a long discussion and bitter strug gle on the floor. Thereupon the chairman of the Com mittee arose in his seat and moved that the bill be re committed to the Committee, which is a motion that is always agreed to and, therefore, the bill was recom mitted to what the railroad lawyers .supposed would be its graveyard. At the next meeting the Committee on Interstate Commerce did not act upon the bill nor report it back to the Senate. I, therefore, introduced a resolution in the Senate to discharge the Committee from further consideration of the bill and place it immediately upon the calendar. This led to a filibuster debate which was intended to wear out the session. Whereupon the chairman of the Committee arose in his seat and said that if I would withdraw my motion he would call a meeting the next day and would report the bill. So the bill was reported from the Committee the next day with amendments which wholly destroyed its original purpose. I moved the immediate consideration of the bin and I stated in the Senate that I had been a mem ber of that body for twelve years and that during that time no labor bill had passed both Houses and become a law; that this sort of a record could not be justified 104 or defended by the Congress of the United States, espe cially should Congress defeat the present measure. I also stated that the railroads wanted to defeat this bill because, while the Congress of the United States had enacted laws compelling the railroads to use certain safety appliances upon their trains, appliances which cost money — the railroads were not using these appli ances, with the result that many accidents occurred which could be traced directly to the absence of these appliances. The bill was particularly obnoxious be cause its passage would make a public record of these facts. I succeeded, therefore, in defeating all of the amendments but the one which provided that the re ports should not be used in court. Thereupon the chairman of the Committee moved to recommit the bill to the Committee. The next day I offered a resolution to discharge the Committee from further consideration of the measure and place it upon the calendar. The chairman oif the Committee immediately arose in the Senate and said he would call an extra session for the next morning and would report the bill if I would withdraw my motion, which, of course, I did. The next day the bill was re ported with the same amendment with regard to not using the reports against the railroads and with an other amendment destroying the real intent of the bill. I defeated the pernicious amendment in the Senate and the railroad attorneys allowed the bill to pass with the amendment prohibiting the use of the reports against the railroads in any lawsuit. The session was nearing a close and the opponents of the bill thought they could prevent it from going through the House of Representatives without amend ments. The Speaker of the House was Henderson of Iowa, a one-legged soldier, veteran of the Civil War, an honest man — a rare quality in a Speaker of the House — whose sympathy was with the men who toil. The moment the bill passed the Senate, I went over to the House, for I had advised with Henderson several times 105 about the matter, and told hira that I had got the rail road bill through with an amendment which would not affect the working of the law, but that if the amended bill was sent to the House Committee, there would be delay and the session would be over before action could be taken. I therefore asked Henderson to have the House concur in the amendment as soon as it came over, and have the bill immediately enrolled and re turned to the Senate. Henderson asked me who had charge of the bill on the floor of the House. I told him the name of the member and when that member arose and stated to the House that the Senate had passed House Bill 10,302,, with an amendment, the Speaker immediately said: "The motion is upon agreeing to the, amendment of the Senate to House Bill 10,302. All those in favor say 'Aye,' and all those opposed say 'No.' The ayes have it." A day passed, and I heard nothing from the bill. I then went to the Clerk of the House, and he told me that he had had the bill enrolled and had sent it over to the Senate. I, therefore, retumed to the Senate, and, after waiting a day and finding that the bill did not come, I stated in the Senate that the bill had been lost. (Congressional Record, Vol. 344, p, 3533, 56th Con gress, 2d session, March 2, 1901.) Mr. PETTIGREW: "I am informed that the Senate amendments were accepted by the House, and that the bill was enrolled and placed in the hands of the messen ger to bring to the Senate, and on the way, or some where, it has been lost. In other words, there seems to be an effort to steal the bill." Mr. LODGE : "In connection .with what the Senator frora North Dakota is saying, I desire to say that I have been engaged in trying to find that bill. My at tention was called to the fact that it was lost. It was announced to the Senate that the House had concurred in the amendraents of the Senate." 106 Mr. PETTIGREW: "The bill was enrolled." Mr. LODGE: "The bill was enrolled in the House, is was signed by the Speaker, according to the records of the House, Mr, Browning, and that is the last of it. Mr. Browning says he delivered it here. There is no record of it here at all. It cannot be found, I have been personally to the roora of the Coraraittee on En rolled Bills and looked over the bunch of bills that was sent, and the bill is not there, I do not know what can be done, but the bill has disappeared between the two houses," Mr, SPOONER: "Can it not be re-enroUed?" Mr, LODGE : "The Speaker, I am told, on one occa sion, when a bill had disappeared in that way, declined to sign the bill again. It has disappeared between the two houses." Mr. SPOONER: "It cannot be, if a bill has been lost before it has been signed by the officer of the other house and that, that Congress is powerless about it. Both houses have passed it," Mr, LODGE : "Certainly they have," Mr, SPOONER: "I do not see any reason why it cannot be re-enrolled," Mr, PETTIGREW: "If the bill is lost, it is lost on purpose. There is no question about that. That might do for some half-civilized comraunity, but for the Sen ate of the United States it is a pretty tough propo sition," After sorae discussion, the Senate passed a resolution which requested the House to have the bill re-enrolled, signed by the Speaker and sent over to the Senate. There was nothing further for the Senate to do, so I resolved to take the raatter into ray own hands. I went over to the House of Representatives, taking with me Louis Kimball, a Civil War veteran, who had been ap pointed, at my suggestion, raessenger to one of the Senate Coraraittees, On the way over to the House I told Kiraball what had happened, and then explained my plan to him, I proposed to go to the Clerk of the 107 House and ask him which of his assistants had en rolled the railroad bill. When he told me, I was to attract the attention of this assistant while Kimball went through his desk. The plan worked like a charm, McConnell was Clerk of the House — a Republican frora Pennsylvania, who could be relied upon by the agents of big business to render faithful service, I knew him well. When I reached his desk I asked which of the clerks had en rolled the railroad bill. He indicated the raan, and started toward hira. "No," I interposed, "call hira over here," I stood stock still till the clerk carae. While I engaged hira in conversation about the bill, Kiraball went through his desk and, in the back end oif the top drawer of the desk, he found the bill, enrolled and ready to be transmitted to the Senate, "McConnell," said I to the Chief Clerk, "you know what this means. If that bill is not over in the Senate by the time I arrive there, I will ask for the floor and recite to the Senate the circumstances under which we discovered that bill," Needless to say, the bill was in the Senate chamber before I got back. It was signed at once and sent to the President, who signed it on March 3, 1901, the day before my terra as United States Senator expired. On the day previous, Senator Lodge made the follow ing explanation (March 2, 1901, p, 3537) : "Mr, President, I desire to say a word in regard to the lost bill with respect to which we passed a resolu tion not long ago, I am informed while the debate was in progress on the North Carolina Claim Bill that the bill had been found in a desk in the enrolling room of the House of Representatives, It seems to have slipped into the drawer of the desk, I wish to say this in jus tice to the clerks and officers of the Senate, It never came here," That is the story of the one labor measure that, to ray knowledge, passed both houses of Congress and 108 became a law during the twelve years that I was in the Senate, Every means, fair and foul, was em ployed to kill it, and it was rather by good luck than anything else that we found the bill and got it through in the closing hours of the Session, During the last year I was in the Senate, that is, from 1899 to March 4, 1901, the Congress of the United States enacted laws upon every conceivable subject, which fill a volume of more than 2,000 pages and these laws were enacted by the attorneys of the property interests of this country who had complete control of both houses, and most of these laws were privileges to the owners of stolen property to exploit the people of the United States, So much for the standing of labor before Congress — it had no standing at all. And why? Partly be cause of the lack of organization; partly because of the ignorance and weakness of the leaders ; partly because labor can hope to gain little or nothing at the hands of a Congress composed of corporation law yers and other representatives of the business inter ests. Perhaps a word with regard to my relations with the American Federation of Labor will help to raake ray raeaning clear, I became acquainted with Samuel Gorapers, Presi dent of the Araerican Federation of Labor, raany years ago. At that time, I supposed that he repre sented the labor unions of the United States in the interests of the toiling raasses, and that that interest extended to the public in general. But I very soon found that Samuel Gorapers and the American Fed eration of Labor were a combination something in the nature of a trust, organized, even before the great industrial corabinations were formed, for the purpose of exploiting everybody except the merabers of their own combination. I found that Gorapers was standing in with the eraployers of labor and under- 109 taking to get all he could for his crowd, without re ference to the general welfare. On August 8, 1911, Mr. Alraont, one of the organ izers of the American Federation of Labor, came to me at SioUx Falls, S. D., and said that he had re ceived a letter from Sarauel Gorapers, or frora the office of the Araerican Federation of Labor, request ing Alraont to secure a letter frora rae giving my opinion regarding the trade union movement. I thereupon wrote Gompers tbe following letter: "Sioux Falls, August 8, 1911. "Samuel Gorapers, "President Araerican Federation of Labor. "Dear Sir: "F. C. Alraont, one of your organizers, has asked rae to write you and give an opinion with regard to the 'Trade Union Movement. "The Trade Union should be universal and include every man who toils, not only in the factory, but on the farra. The strike and boy cott are but crude and savage and warlike remedies, and I am sure labor will never re ceive what it earns until the land and imple raents of production are co-operatively or pub licly owned: "Capital cannot exist without labor and is entirely dependent upon labor, while labor is independent of capital, can and does exist without it. Yet under the present system of production capital exploits labor, and takes more than two-thirds of the earnings of labor, and, until the systera is changed, labor will struggle in vain to secure what it produces. Yours truly, "R. F. PETTIGREW." During the fall of 1911, I visited Washington and called upon Gompers. He brought up the subject of 110 my letter, said that he had received and read it and that it was an irapertinence to write him such a letter. He began, in a rather excited way, to announce that it was socialism and then to attack the socialists and the socialist doctrine. That interested rae very rauch, so I stayed and talked with hira for a long tirae and got a very fair insight into his theory of the labor raoveraent. Later, I continued the investigation and had at least one raeeting with four or five of the principal union officers at the headquarters of the Araerican Federa tion of Labor at Washington. After I had thoroughly examined the American Fed eration of Labor and its processes and purposes, and had ascertained beyond question the relation Mr. Gom pers held with the capitalistic and exploiting classes, on December 8, 1916, I wrote the following letter to Gompers : "Decem.ber 8, 1916. "Hon Samuel Gompers, "President American Federation of Labor, "Washington, D. C. "Dear Sir: "The position of the American Federation of Labor as represented by you is that of standing in with the corporations who employ labor to secure a part of what labor is entitled to and make the corporations divide with or ganized labor what they take from the public, "You seem to be ignorant of the purpose and objects of the Civic Federation and are getting acquainted with Professor Comraons, The only way to make a federation of labor effective is to combine all those who are pro ducers of wealth in a political organization and take charge of the government and then administer the government in the interest of the rights of man. It is now administered in the interests of the rights of property and ad- 111 ministered by the raen who did not produce any of the property, but who have stolen it frora those who did produce it, "I am enclosing you copy of ray article on the distribution of wealth in the United States, also copy of ray letter to you of August 8, 1911. "I very rauch hope that Congress will pass the Compulsory Arbitration laws, if that is necessary to open your eyes and the eyes of the American Federation of Labor as to what is going on, Comraons is right — ^the Supreme Court will hold that it is constitutional, "They sent Dred Scott back to slavery and if they will now hold that organized labor can be forced to work, whether they want to or not, and thus send it back to slavery, you will wake up and take possession of the Govern ment and Congress and also of the courts, "Right after the Dred Scott decision, Lin coln made a speech at Cincinnati, using the following language with reference to the Su prerae Court: " 'The people of these United States are the rightful raasters of both Congress and the courts, not to overthrow the Constitution, but to overthrow the men who pervert the Consti tution,' "I have wondered if organized labor would still refuse to affiliate with the other laborers — would finally abandon their position as the aristocracy of labor — that of looking with con tempt upon their fellow-workers, I wondered if the time will come when you get sufficiently jolted so that you will organize a labor party coraposed of farmers and other producers of wealth and take charge of the Government of the United States and administer it in the in- 112 terests of humanity instead of continuing to administer it in the interest of property — stolen property — with organized labor con stantly trying to compromise, "Your position and the position of organ ized labor has been a matter of great aston ishment to rae for years and I very much hope that they will pass the compulsory arbitration law, for the extrerae measure is necessary to jolt organized labor off frora the pedestal upon which it has been roosting on to the ground araong its fellow-raen, "Yours very truly, "R, F, PETTIGREW," Gompers had always insisted that labor should not go into politics, but that they should select from the two old parties the good men and vote for them with out reference as to whether they are Deraocrats or Republicans, knowing full well that that policy would only result in perpetuating the systera oif universal ex ploitation, of which he was one of the representatives. The people who produce the wealth and do the work in the United States are at least two-thirds of the pop ulation, A little over 2,000,000 of the American people own all of the wealth that the workers have produced, having taken it from the producers through special privileges, secured by every conceivable species of chi canery, bribery and corruption. Whenever the masters meet an opponent who exposes their methods and prac tices, and protests against the present economic sys tem, they first undertake to buy hira by agreeing to divide with hira the favors which they receive. Failing in that, they undertake to destroy hira. No raan can succeed for any length of time politically under our system if he exposes the methods of the corporations who own all of the great natural resources and artifi cial facilities of the United States, 113 Soon after the Araerican Federation of Labor was organized and Mr, Gorapers becarae its chief, the inter ests took hira into "camp," as they express it, and for mulated for him the arguraents and prograra by which he was to handle the American Federation of Labor, so that it would be an adjunct of the present economic system. Of course strikes were permitted where the men represented by Gompers insisted upon having more pay than some of the employers were willing to give. Strikes like those of the steel workers in 1919- 1920 might come and go. It was all one to the big fel lows. But whenever the strike becarae so widespread as to seem dangerous, or when the demands of the men were so reasonable that they made a wide public ap peal, the smallest possible concessions were made, gen erally through the leaders of the strikers to the men. Before making concessions, however, the great com binations would undertake to bribe the leaders; would hire private detectives and use force, if necessary, to beat the strikers into submission. In order to justify the use of force in the eyes of the public, they would send their secret agents among the strikers, advocat ing some act of violence which they represented as dangerous to the welfare of the workers. They would talk violently and excite the men and advise bomb- throwing and even murder. Sometimes they even per petrated such outrages. Generally the assaults were against property, and of course iraraediately the army or the police, or both, were called in to restore law and order. From a close observation of the operations of the Araerican Federation of Labor, as conducted by Mr. Gompers, I am satisfied that he was a party to the methods eraployed for breaking great strikes, and that the strikes advised by him were manipulated very much more in the interests of the capitalists than in the interests of labor. And that is why I wrote in a second letter to Mr. Gompers : 114 "The only way to make a Federation of Labor effective is to combine all those who are producers of wealth in a political organization and take charge of the Government, and then administer the Government in the interests of the rights of property and administered by the men who did not produce any of the prop erty, but who have stolen it from those who did produce it." Labor has no standing in Congress. Its acknowl edged leaders — in conjunction with the raasters of in dustry and finance — tie labor hand and foot. The American Federation of Labor has been in existence forty years (since 1881). During the period of its power the position of the American worker has be come, on the whole, less, rather than raore, advanta geous. The big rewards, the great winnings have gone to the owners, while the workers have received only the crumbs. Labor produces the world's wealth. The vast major ity of the American people work for their living. Civil ization is built upon labor, and labor is civilization. Yet the public life of the United States is so organized that the workers receive scant consideration, while every at tention is paid to the owners of tbe property. All our legislation has been aimed to increase the power and promote the interests of those who have, as against those who produce. The great question then that is presented to the laboring people of the United States is: Shall the rights of man be superior to the rights of property? Inasmuch as all property is created by labor, if the rights of raan are safeguarded by legislation, no laws will be required to protect the rights of property in the hands of the raen who produce it, but under our pres ent system the laborer who produces the wealth has none of it. He is exploited out of it by the landlord, by 115 the corporation which employs him, by the corpora tions which furnish him public utilities, by the insur ance companies and trust corapanies which charge three times what it is worth to do the business, and by the general system of corabinations of the parasites and idlers of society, who get away frora the producers of wealth what their labor has created. If forty laboring raen were shipwrecked upon a dis tant island in the ocean, which was practically never frequented by ships of coraraerce, and there were about one thousand acres of fertile land upon the island and only one spring of pure wate];i and one of their num ber should rush at once to the spring and the thousand acres of land and claim it as his property because he saw it first and insist that all the others should pay him a portion of their products before they would be permitted to raise food upon the land or to drink water from the spring, the other thirty-nine people would be justified in taking it away from him, and proceeding to exercise their natural rights, giving, of course, the greedy usurper the same right which they all possessed — that of going to work and earning, with the rest of them, his own living. Of course, the exploiters of labor are always talking about the dignity of labor and extolling the laborers, and the Labor Day orators — raen who have never done a day's work in their life or produced a dollar's worth of wealth of the country — will speak of the laborers in the highest terms. Why then should not the producers of wealth organ ize and take possession of the Government and run it in the interests of the workers rather than to have it run in the interest of the idle few, as at present ? It seems to me that it is about time we abandoned the barbarous doctrine of "the devil take the hind most," and that, instead of universal selfishness and competition, we could found a civilization based upon the rights of man in the interest of the general welfare 116 for all the people. Such a step would raise the mental, physical, and moral standard of the population, and would be the beginning of a new stage of civilization. This work raust be done by the laboring classes. It will never be done by the beneficiaries of a special privilege economic system now existing in the United States, 117 IX, Plutocracy Bit by bit the evidence accumulated under my eyes until it constituted a mountain of irrefutable proof — the public domain seized and exploited by the inter ests and for their private profit; the concentration of power in the hands of the bankers ; their manipulation of money for their own benefit; the tariff, used as a favor granted by Congress for the few to plunder the raany; the wanton and reckless creation of trusts and aggregations of capital ; the vast strength of the rail roads and other public utility monopolies ; the ferocious indifference of these interests to the public welfare and tb the well being of the masses of the people — as I sur veyed this evidence I could form only one possible con clusion — that the power over American public life, whether economic, social or political, rested in the hands of the rich. It is said that in the past, in the days of the Roman Empire, when a wealthy Roman wished to build a villa he purchased the right to tax and govern a conquered province in Asia, and returned to Rorae to enjoy his fortune. But when an Araerican raillionaire wishes to build a villa, or buy a title in Europe, he purchases a tariff privilege from the Congress of the United States, or corrupts a legislature or a city council and secures a franchise, and proceeds to rob his neighbors, I am of the opinion that the Roraan way was the best Plutocracy is a word that raeans rule by and for the rich. The United States is a country run by and for the rich. Therefore, it is a plutocracy. The rich few own the United States, The rich few who own it direct its public policy. For years these facts have been apparent to the discerning. Today even the short-sighted may see them quite plainly. Real the following letter which Lincoln wrote to WiUiam P, Elkin on November 21, 1864: 118 "I see in the near future a crisis approach ing that unnerves me and causes rae to tremble for the safety of my country. As a result of war, corporations have been en throned, and an era of corruption in high places will follow, and the money power of the country will endeavor to prolong its reign by working upon the prejudices of the people untu all the wealth is aggregated in a few hands and the republic is destroyed, I feel, at this moment, raore anxiety for the safety of ray country than ever before, even in the midst of war, God grant that my suspicions raay prove groundless," It has been well said by the famous English writer and philanthropist, Mr, Stead, that the modern busi ness world has adopted a new Golden Rule as follows: "Dollars and diraes, dollars and dimes ; To be without money is the worst of crimes. To keep all you get, and get all you can. Is the first and the last and the whole duty of man," That this Golden Rule has been adopted by the so- called business men of the United States is evidenced by what has been accoraplished in the distribution of the wealth produced by the great toiling raasses of this country. Recently it was announced that John D, Rockefeller had finally succeeded in accumulating one billion dol lars, thus raaking him the richest man that ever lived. The American people know how he succeeded in accu mulating this vast sum. He produced none of it — he secured all of it by exploiting the American people who had produced it. The most thrifty of the American people do well if they succeed in saving $300 a year above all their ex penses, and they raust he busy every day in the year in order to do that. To accumulate one billion dollars at the rate of $300 a year — a dollar a day for three hun- 119 dred working days — a man would have to live and labor 3,383,333 years. He would have to be older than Methu selah — he would have to start when the world was hot no matter where he ended up. But if he was cunning, unscrupulous and religious and followed Rockefeller's raethod of robbing his fel low-men, he could get the billion-dollar prize in fifty years. One billion dollars is equivalent to the earnings of one hundred thousand men for twenty years, provided they earned $500 apiece each year, and during all that tirae leaving nothing out for sickness, death or acci dent. The fact that Rockefeller could appropriate the earnings of his fellow-men and the fact that he did do it is what has caused the social and economic protest against the existing system and the cry for justice. This great and powerful force — the accumulated wealth of the United States — has taken over all the functions of Government, Congress, the issue of money, and banking and the array and navy in order to have a band of raercenaries to do their bidding and protect their stolen property, Iraraediately after the announceraent that Rockefel ler was worth a billion dollars. Armour & Swift an nounced a dividend upon their capital stock of thirty- three and one-third per cent and each of these concerns increased- their capital stock from twenty millions to one hundred millions. It is safe to say that neither of these concerns had any capital stock for which they had paid a dollar. Their capital stock represented what they had stolen from the people of this country. Their working capital is represented by bonds. The eighty millions of stock which they have since added is also nothing but water and is issued so as to make the annual dividends appear smaller. The exploited people will object less to paying six or seven per cent on a hundred millions than to paying thirty-three and one-third per cent on twenty millions. It looks better in print, 120 How do Armour and Swift make their money ? They are the great packers. They are in collusion. They fix the prices they pay the farmer for his hogs and cattle, and they fix the prices they will charge the consumer for their product. They are simply robbing the pro ducer and the consumer, and their robbery is repre sented in their great wealth, which they did not pro duce but which they took from the people under the guise of law. When the bill to take the census of 1890 was pending before Congress I secured an araendment requiring the enumerators to ascertain the distribution of wealth through an inquiry into farms, horaes and raortgages. Using the figures thus secured by the enumerators of the census of 1890, on June 10, 1898, I delivered a speech in the Senate of the United States on the sub ject of the distribution of wealth in the United States and, from the census of 1890, I showed that 52 per cent of the people of the United States owned $95,00 worth of property per capita, or $95.00 each of second hand clothing and second-hand furniture, and that four thousand farailies owned twelve billions of the wealth, and that 6,640,000 families, or 52 per cent of the popu lation, owned three billions of the wealth, or just five per cent of the total. The facts, as ascertained by the census-takers in 1890, appear, summarized, in the following table: Distribution of Wealth by Census 1890 Class Families Millionaires 4,000 Rich 1,139,000 Total Rich 1,143,000 Middle 4,953,000 Poor 6,604,000 Per Average Aggregate Per Cent Wealth Wealth Cent .03 $3,000,000 $12,000,000,000 20 8.97 27,000 30,600,000,000 61 9.00 37,358 42,600,000,000 71 39.00 2,907 14,400,000,000 24 52.00 454 3,000,000,000 5 Grand Total.... 12,700,000 100.00 $ 4,725 $60,000,000,000 100 121 Diagrams Showing, by Percentages, the Population and Wealth Distribution in the United States, According to the Census of 1890 POPULATION Millionaires.. .03 Rich 8.97 Total 9% Middle 39% Poor 52% Total 100% Millionaires.. 20% Rich 51% Total 71% Middle 24% Poor Total 100% It will be seen frora these tables, which are compiled from the census report of 1890, that 52 per cent of the people, or two per cent more than half of them, owned but five per cent of the accumulated wealth of the United States. The report of the Industrial Commis sion which thoroughly investigated the distribution of wealth in the United States discloses the fact that, after twenty-six years, covering half of the period in which Rockefeller and Armour and Swift and the other exploiters of the people have accumulated their vast fortunes, the nuraber of people who participated in the five per cent of the wealth of the United States has in creased from 52 per cent of our total population to 65 per cent. I have prepared a diagram illustrating the conclu sions reached by the experts of the Industrial Commis- 122 sion, which pictures the stupendous inequalities that have arisen in the United States during the past twenty-six years : Distribution of Wealth, Report of Industrial Commission, 1915 Per Average Aggregate Per Class Number Cent Wealth Wealth Cent Rich 2,000,000 2% $42,000 $ 84,000,000,000 60% Middle 33,000,000 33% 1,480 49;000,000,000 35% Poor 65,000,000 65% 107 7,000,000,000 5% Grand Total .. 100,000,000 100% $1,400 $140,000,000,000 100% Total Popu lation of Total Wealth Rich 2% or 2,000,000... 100,000,000 $140,000,000,000 Middle 33% or 33,000,000 Poor 65% or 65,000,000 Rich 60% or $84,000,000,OOC Middle 35% or . $49,000,000,000 oor — 5% or $7,000,000,000 5% I wish a careful exaraination of these tables. You will see that sixty-five per cent of the people own five per cent of the wealth and that two per cent of the pop ulation — the little black line at the top of the diagrara — own sixty per cent of the wealth. They did not produce the wealth. It was all produced by the sixty-five per cent of the population who have nothing. They were able to do it because they owned the Governraent 123 and the courts and enacted the laws which raade it pos sible. They have done it through manipulation, com bination and exploitation. They have done it through corporations. They have done it because they own the railroads and the banks and all the public utilities, and used them all — all of these great iraportant public ser vice institutions in order to gather the products of everybody's toil into their own hands. In other words, they have stolen what others have produced. These were the figures for 1916. Since that time there have come the war and the panic, with their huge crop of millionaires and their further concentration of wealth and of economic power. But, you may ask, why is it necessary to turn to the figures of the Industrial Comraission? Why not use the census figures ? The answer is very simple. Since the publication of the 1890 figures, the plutocrats have decided that the facts regarding wealth distribution shall not be permitted to get into the hands of the American people. When I entered the Senate I believed that the ques tion of the distribution of wealth was one of the most important ones before the American people and one that was receiving no attention whatever. While I was in the House I had made the personal acquaintance of Senator Jones of Arkansas, who was on the Committee on Indian Affairs in the Senate, and Senator Berry of Arkansas, who was on the Coramittee on Public Lands in the Senate. So that, before the Senate convened in Deceraber, 1889 — when I took my seat in the Senate, I had talked with these two Senators about securing legislation to ascertain the distribution of wealth in the United States. They had entered heartily into the plan and we prepared a bill for that purpose,* which was * The bill was worded as follows : "That a census of the population, wealth and in dustry of the United States shall be taken as of the date of June 1, 1890. Statutes of the U. S., p. 761. March 1, 1899." 124 introduced by Senator Berry as an amendraent to the Census Bill of 1890. The bill attracted little attention and was passed practically without opposition, but I had great difficulty in getting the persons in charge of tak ing the census to go thoroughly into the question. Finally, under the head of "Farras, Homes and Mort gages," an investigation was made by Holmes and a report was issued, I think, about 1898. This report showed a reraarkable econoraic condition in this coun try and disclosed the fact that 52 per cent of our popu lation had five per cent of the wealth they had pro duced, and that nine per cent of our population had a majority of all the property in this country. I made a speech in the Senate upon this subject, going quite fully into the question, and in that speech I predicted that the nuraber of people who had nothing would steadily increase under our system, and that the nura ber of people who owned a raajority of the wealth would steadily decrease. I considered the question so iraportant that I secured a place on the Senate Census Committee to prepare the bill for taking the census of 1900. In the comraittee I urged an amendraent to the bill for taking the census which should go fully into the question of the distri bution of wealth in this country, but the coraraittee re fused to adopt ray araendment or to take any notice of the question whatever. Incidentally, the committee was composed of lawyers and a lawyer is trained to believe that it is the right of property in the hands of men who did not produce the property that is sacred, and not the rights of man. Or that society has any obligation whatever to those who toil. We borrowed this from England and it is thoroughly inculcated into our whole system of educational and econoraic life that there is nc question but that the lawyers honestly be lieve it to be true. After the Census Bill was re ported to the Senate I offered ray amendraent under these circumstances : 125 (Congressional Record, 56th Congress, 1st Session, Jan. 11, 1900, vol, 331, p. 779,) Mr. PETTIGREW : "I offer an araendment, which I send to the desk," THE PRESIDENT PRO TEMPORE : "The amend raent of the Senator from South Dakota will be stated," THE SECRETARY: "It is proposed to add, as section 3, the following: "Sec, 3, That the Director of the Census is hereby required to collect statistics re lating to the indebtedness of individuals and corporations, public or private ; also in relation to the distribution of wealth among the people of the United States ; also statis tics as to the displacement of labor by ma chinery, and the increase of the power of production by machinery in proportion to the number of laborers employed during the last thirty years. And for this purpose the Director of the Census may employ spe cial agents, and such special agents shall receive such compensation as other special agents," Mr, PETTIGREW: "Mr, President, this amend ment is intended to secure statistics with regard to the distribution of wealth. It does not require the enumerators to gather the statistics on this subject, and therefore will not delay the purpose of the law which we have passed. "We make the Census Bureau, as I understand, a perpetual bureau of statistics and inforraation, and *to fail to gather the information referred to in my amendment, it seems to me, would be a very serious raistake. The question as to what becoraes of what the toilers of the land produce, whether it goes to thera or is taken frora thera by special privileges, and 126 accumulated in the hands of a very few people is a very important one and reaches ultiraately the ques tion of the preservation of free institutions. "The other subject in my amendraent is with re gard to the displacement of labor by machinery and the increased power of production thereby. I de sire this inforraation for the reason that I believe man's power to produce, as the result of the adop tion of machinery, has increased many times more than the increase of his wages, which should have occurred as a result of his increased powers of pro duction ; in other words, that th6 increased power of production is the result of machinery and has inured to the advantage of capital many tiraes raore than to the advantage of labor; that this has caused in a large degree the unequal distribution of wealth in this country; that the increased power of production, as the result of raachinery, should go to the toiler in a much larger degree than to the capital employed ; that the power to produce by raachinery is a benefit to mankind if the increased power to produce goes to the toiler, because his power to consume is also in creased, and thus the consuraption and enjoyraent of a greater raeasure of the luxuries and coraforts of life must go to those who produce the wealth of the land. "I therefore believe these two questions are ex ceedingly iraportant; and I"have asked that this in formation be collected by special agents rather than by the enumerators, so that it will not delay a single day or a single hour the securing of that information which seems to be the prime object of the bill. "I hope the additional section I have offered will be adopted without objection," (Jan, 11, 1900.) Mr. TILLMAN : "I will say for the information of the Senator frora Georgia that if it is not taken with the first census it cannot be taken at all, without an intolerable additional expense. It is for the Senate 127 to determine whether it will enlarge the scope of the census. If we break down the barrier erected by the Census Comrai1i:e ments. They raised a regiment of so-called cow boys in the eastern states and went to Florida, Frora Florida they erabarked for Cuba, leaving their horses behind. They landed east of Santiago and started through the jungle for San Juan Hill, General Wood being colonel of the regiment and Mr, Roosevelt acting as lieutenant colonel. About ten miles from. San Juan Hill, they were ambushed by the Spaniards and some of the Rough 239 Riders were wounded in what was called the El Caney fight. They would have been cut to pieces, but General , in comraand of sorae regi ments of Negro troops, rushed in these colored regu lars and rescued Wood and his doughty lieutenant- colonel from the hands of the Spaniards, The Rough Riders — all on foot, for they had left their horses back in Florida — then proceeded to a field near the foot of Kettle Hill, which blanketed San Juan Hill, and remained there until General and his colored troops took San Juan Hill frora the Spaniards, After San Juan Hill had been captured. Col, Wood and Lieutenant Colonel Roosevelt charged up Kettle Hill, where there was nothing but an old kettle which had been used for evaporating sugar cane juice. There were no fortifications or trenches or block houses, or Spaniards, dead or alive, on Kettle Hill, Yet Roosevelt, in his book "History of the Spanish War," says that he charged up San Juan Hill and found the trenches full of dead Spaniards with little holes in their foreheads, and that two Spaniards juraped up and ran away, and that he raissed one of them but killed the other with a shot in the back from his revolver, I refer to the records of the War Department, which show that Roosevelt had nothing to do with the taking of San Juan Hill. I refer also to a pam phlet by Colonel Bacon, of Brooklyn, in which he says that he secured aflSdavits of one hundred sol diers and officers who were in the campaign to take Santiago, and that all of thera testified that Roose velt was not in the battle of San Juan Hill, or, in fact, in any other battle except the arabush at El Caney, Afterwards, when Roosevelt becarae President of the United States, he posed on horseback at Fort Meyer, and had his picture painted by a faraous Ger raan artist, charging up Saij Juan Hill, 240 After the Spanish War was over, Mr, Roosevelt located in the city of Washington, and, having in herited a fortune, the tax assessor of New York placed hira on the tax list for a large sura as resident of New York State, Mr, Roosevelt thereupon swore off his taxes, swearing that he was not a resident of the State of New York, but of the city of Wash ington, and, not being a citizen of New York, was not liable to taxes under the la"ws of that state. Shortly after taking this oath. Boss Platt called upon Mr, Roosevelt and proposed that he should be a candidate for Governor of New York, Roosevelt proraptly replied that he could not run for Governor as he was not a citizen of New York, and related the incident of his swearing off his taxes, Platt there upon remarked : "Is the hero of San Juan Hill going to show the white feather?" Mr, Roosevelt answered, in his dramatic and elo quent way, that he was no coward, and would be a candidate. After election, when he came to take the oath of office as Governor of New York, he had to swear that he was a citizen of the State of New York, But sufficient time had not elapsed for him to acquire citizenship since he had sworn that he was not a citizen of the state. The difficulty was overcome by Elihu Root's stateraent that doraicile in Washington for the purpose of escaping taxes in the State of New York was not a sufficient loss of citizenship to dis qualify Roosevelt for governor. Root was afterwards rauch parapered and petted by Roosevelt when he becarae President of the United States, Having by accident become President, Roosevelt served out McKinley's terra and was' then norainated and elected. At the end of four years raore, having naraed Taft as his successor, Roosevelt concluded to emulate the exploits of the Roraans and add Afri canus to his narae, Scipio had conquered provinces 241 in Africa and led their kings and princes and poten tates in triuraph, Roosevelt's triuraph was graced with elephants' feet and leopards' tails, and, on his way back to his own country to enjoy his triuraph, he stopped in Paris long enough to address the great literary and scientific society founded by Voltaire, whose president was Pasteur, the discoverer of raany scientific raarvels. And to this body of students of science and biology and literature 'Teddy delivered his oration of thirty minutes in length, advising thera to raise babies! And this was not the end of his achieveraents. He exarained the raap of South America and found a strip of country marked upon all the geographies as unknown or unexplored — a little west of and south of the mouth of the Madeira River, He went in by way of Paraguay, and striking this unknown region at its southern extreraity passed down through the tropical jungle of this country to the raouth, and announced to the world that he had discovered a new river of great iraportance — a new and unknown river, thus adding to his exploits as a conqueror in Africa the proud narae of discoverer. But, after he had announced to the world his great discovery, it was found that at the raouth of this river there was a sraall Spanish town which had existed for two centuries and that for over a hundred and fifty years the river had been navigated to the first falls by the Spanish gatherers of rubber. Roosevelt was a draraatic artist first and a presi dent afterwards. All of his actions were strongly colored by his love for effect. He posed. That was his life. Of his. succesor, Taft, nothing need be added to the characterization — "an araiable raan weighing 250 pounds," Woodrow Wilson was not a Deraocrat after 1896, In that year he left the party for the same reason that I joined it. He came back and voted for Parker 242 in 1904, and for the same reason that led rae not to vote for Parker, Wilson did not support Bryan in 1908. At no time was he an advocate of the prin ciples of progressive democracy, I first met Woodrow Wilson the year before he was nominated. It was in August, 1911, that I re ceived a letter frora him saying that he would like to see me. He was residing at the Governor's sumraer horae on the Atlantic coast of New Jersey, about eighty railes from New York, A friend of mine — I think it was ex-Senator Towne, had been down to see him and had told Wilson that I was in New York, Wilson thereupon wrote me that he was very anxious to raeet rae, and that, if I could not corae down to his horae, he would corae to New York, So I went down to see him. I went early and remained all day, and we talked on very raany subjects. He told me that he was an active candidate for the Democratic noraination for President of the United States and, thereupon, I be gan discussing public questions with hira, for I was prejudiced against him because of his attitude in the Bryan campaigns. Late in the afternoon of my visit, Wilson asked me if I would support him for the Democratic nomina tion and take charge of his campaign in the West. I said that I did not know; that I had corae down there prejudiced against him; but that he had said things during the day that interested rae very rauch, and that if he would send me all of his recent speeches and every one of his veto messages, so I could study his attitude of mind upon public questions, in about a month I could tell him whether I could support him or not. In our conversation I had discovered that Wilson knew nothing about the practical working of the Gov ernment. He had boasted that he was educated and trained as a lawyer and had practiced in his native 243 state, Alabama, and this did not leave a good impres sion upon ray mind, because, any man well learned in the law has corae honestly to believe that the rights of property and not human rights are sacred and is, there fore, unfitted to serve the interests of the people. But Wilson had declared for the public ownership of public resources — that is, iron and oil, and had suggested the single tax as a method of taking the raw material frora the trusts and corabinations, such ias the iron, oil, etc, I left the Governor's house after dinner, and as I reached the door Turaulty — he was then the Governor's secretary — was at the door with an autoraobile and said that the Govemor wished hira to talk with rae and that, if I would permit him, he would take me back to New York, I therefore got into the autoraobile, and he took rae back to Newark, We discussed the sarae questions I discussed with the Govemor, and he said that the Governor wanted ray support, and wished rae to take charge of his campaign in the West, About the time the thirty days had expired, I re ceived a letter from Turaulty saying that the Governor was anxious to know what ray decision was, and I promptly replied that I had read all of the Governor's recent speeches and his veto messages, and raost of his works, and after carefully considering the same I was of the opinion that he was the worst Tory in the United States and that he used camouflage to conceal his set tled opinion, and that I would not support hira for the office of President even if no one else was a candidate. I had raany reasons for taking this stand. For ex ample, in a speech which was carefully prepared and delivered before the Society of Virginians in New York City in 1904, he had made the following statement : "The real opportunity of the South is of another sort. It had now a unique opportunity to perforra a ¦great national service. As the only reraaining part of the Deraocratic party that can coraraand a raajority of its votes in its constituency, let the South deraand a 244 rehabilitation of the Deraocratic party on the only lines that restore it to dignity and power, "Since 1896 the Deraocratic party had perraitted its narae to be used by raen who ought never to have been adraitted to its councils — raen who held principles and professed purposes which it had always hitherto repu diated, "There is no longer any Deraocratic party either in the South or in any northern state which the discred ited radicals can use. The great body of one-tirae Dem ocrats that musters strong enough to win elections had revolted and will act with no organization that harbors the radicals — as the radicals did not in fact act with the organization they themselves had discredited in the recent campaign when the whole country felt that the Democratic party was still without definite char acter and makeup, "The country, as it moves forward in its material progress, needs and will tolerate no party of discontent or radical experiment, but it does need a party of con servative reforra, acting in the spirit of the law and ancient institutions," I wish to call especial attention to the fact that Wil son wished to throw the Populists and Silver Republi cans and radicals out of the party; and to this para graph : "The country, as it raoves forward to its progress, needs and will tolerate no party of discontent or radical experiraent, but it does need a party of conservative reforra, acting in the spirit of the law and ancient insti tutions." This is Woodrow Wilson's whole political creed. His position with regard to labor is well expressed in his baccalaureate address of June 13, 1909 : "You know what the usual standard of the employe is in our day. It is to give as little as he raay for his wages. In some trades and handicrafts no one is suf fered to do more than the least skilful of his fellows can do within the hours allotted to a day's labor. It is so 245 unprofitable that in sorae trades it will presently not be worth while to atterapt at all. He had better stop alto gether than operate at an invariable loss. The labor of Araerica is rapidly becoraing unprofitable under its present regulation by those who have deterrained to reduce it to a rainiraura. Our econoraic supremacy may be lost because the country grows raore and more full of unprofitable servants," And he was reported in the New York "World" as , saying : "We speak too exclusively of the capitalist class. There is another as forraidable an eneray to equality and freedora of opportunity as it is, and that is the class forraed by the labor organization and leaders of the country, the class representing only a sraall rainor ity of the laboring raen of the country, quite as raonop- olistic in spirit as the capitalist, and quite as apt to corrupt and ruin our industries by their raonopoly," One of the veto messages which he sent me revealed the true Wilson point of view. He wrote a long raes sage in vetoing the bill to elirainate grade crossings on the railroads of New Jersey, The bill by the New Jer sey legislature had provided that every railroad in the state should eliminate one grade crossing for each thirty railes of track each year until they were all elirainated, Wilson vetoed this bill on the ground that it would be a hardship for the railroads to coraply with the provisions. In the state of New Jersey at that time the railroads ran through the raain streets of the prin cipal towns — right on the surface — and large nurabers of people were killed and injured at grade crossings. The bill was a raild and "evolutionary" method of elim inating the crossings — it permitted the killings to con tinue for many years before the last grade of crossing was eliminated. Even that mild provision proved to be too strong for Wilson who, true to his lawyer training, and his attitude of raind where the question of prop erty rights was involved, vetoed the bill because it in volved a hardship on the shareholders. 246 These and raany other facts which I had discovered in ray study of his writings and his speeches led rae to write, early in the carapaign of 1912 : "If Mr, Wilson becoraes President he will oppose any legislation that interferes with big property or in any way curtails its profits. He has behind him an ances try of slave-holders and he has no syrapathy with labor. He thinks the Chinese are rauch better than the European immigrants that corae crowding in frora Europe. "He is bitterly and sneeringly opposed to every man who toils and to every progressive principle; he knows little or nothing about the purposes of socialism, does not comprehend the great revolution going on in the rainds of men which must shake to the very foundation our social and econoraic structure. His effort will be to check, to tum aside and to neutralize this raoveraent, and he will do it all in the interests of the capitalistic classes, "He will undertake sorae reforms. He will rail about the bosses; he will talk about purity, but he is abso lutely owned by the great moneyed interests of the country who paid the expenses of his campaign for the nomination and will now furnish the funds for the elec tion. No progressive Democrat should vote for him under any circumstances," Wilson was nominated by the usual influences that control a Deraocratic convention. He had alraost a solid South at his back. The South is behind the world in ordinary civilization, in social and economic thought. This mass of ignorance and barbarism joined with the corrupt exploiting bosses of the North and brought about Woodrow Wilson's nomination. Murphy, the ex ploiter of vice in New York ; Sullivan, the exploiter of the people of Chicago, through the gas franchise; Ryan, the exploiter of the street railway franchise of New York, and Taggart, who for years ran a gambling house at French Lick, Indiana, and Bryan, of Ne- 247 braska, were all actively at work to bring about Wood- row Wilson's nomination, Wilson, as President, more than fulfilled the promise of Wilson as Governor, His first public surrender to the interests came in the passage of the Federal Re serve Act, His real abdication accompanied his decla ration of war with Germany, On the 26th of February, 1917, President Wilson, in an address to Congress, said : "I ara not now proposing or conteraplating war, or any steps that may lead to it," The President raade this declaration eleven days after the Advisory Council of Big Business, appointed by him, had in its secret sessions, as now disclosed by an examination of the records of the meetings, dis cussed the exclusion of labor frora railitary service, and discussed the draft law raonths before it had been intiraated to Congress or the country that we were to raise an army by draft to fight a foreign war, William J, Graham, of the Select Comraittee of the House of Representatives at Washington on Expendi tures in the War Department, examined the rainutes of the raeetings of the Council of Defense, He raade copious extracts from these rainutes. Based upon that investigation. Chairman Graham reported to the full committee as follows : "An exaraination of these rainutes discloses the fact that a coraraission of seven raen chosen by the Presi dent seems to have devised the entire system of pur chasing war supplies, planned a press censorship, de signed a system of food control, and selected Herbert Hoover as its director, determined on a daylight saving scherae and, in a word, designed practically every war raeasure which C6ngress subsequently enacted — and did all this, behind closed doors, weeks and even raonths before the Congress of the United States de clared war against Gerraany," For raonths before the United States declared war, Wilson was planning war with a secret coramittee of 248 New York representatives of Big Business that he, Wilson, had appointed for that purpose, W, P, G, Harding, president of the Federal Reserve Board, gives the reason why the United States went to war in a stateraent published on March 22, 1917: "As banker and creditor, the United States would have a place at the peace conference table, and be in a rauch better position to resist any proposed repudiation of debts, for it raight as well be reraerabered that we will be forced to take up the cudgels for any of our citizens owning bonds that raight be repudiated," Harding, as a representative of the New York bank ers, knew what the secret coraraittee was doing with the President at its head. He could, with perfect con fidence say, weeks before the United States went into the war, "It raight as well be remembered that we will be forced to take up the cudgels for any of our citizens owning bonds that might be repudiated," Wilson went to Paris as the representative of the New York banks. That he was their representative and consulted with thera all through the conference is proven by the fact that Thoraas W. Laraont( of J. P. Morgan & Co.) was chief financial adviser in Paris, and that the New York banks had a copy of the treaty weeks before the United States Senate received its copy. It is not an inspiring record — this story of ten presi dents — all of them actively or passively serving the interests that have been plundering the American peo ple. Very few Americans now living have known ten presidents. Very few have had ray opportunity for observation, - If they had, I think they would be com pelled to agree with me that the control of the Araeri can plutocracy is exercised as directly and as effectively over and through the Presidents of the United States as over any other department of American Govern ment, 249 XVI. Political Parties In these descriptions of the relation between busi ness and Govemment in the United States, I have not tried to draw any sharp distinctions between the Re publican and the Deraocratic parties,^ Indeed, such an effort would be quite futile, since no real distinction between thera exists. Historically, the two parties rep resent varying points of view as to the best method of robbing the workers. The Deraocrats favored slavery as a method. The Republicans preferred the wage sys tera. But those differences were ironed out during the Civil War, During raore than half a century both par ties have accepted the systera of wage labor as the raost practical and reraunerative system of exploita tion. Today Republicans and Deraocrats are alike the spokesraen of big business. This assertion I can raake without the slightest fear of contradiction, as I have known the leaders of both parties for fifty years and have worked in the inner circles of both party ma chines. I was elected to the United States Senate as a Repub lican when the state of South Dakota was adraitted to the Union. I was re-elected in 1894, also as a Repub lican. I listened to the debates in 1890 on the Anti- Trust Law which was presented by Senator Sherman, of Ohio. The trusts were at that time beginning to show great strength and both parties had declared against them in their platforms. The Sherman law was a Re publican measure, but I observed to my great surprise that the leaders of the Republican party were very careful not to include anything in the bill that would interfere with big business. Indeed, the anti-trust legislation was so fraraed as to encourage rather than discourage corabinations in restraint of trade ; I also observed that those araendraents which were offered to the Sherraan Anti-Trust Law in order to make it effective by preventing combinations in restraint of trade, were proraptly defeated by a solid Republican 250 vote. This opened ray eyes, and I began to wonder if I was really a Republican. Out on the prairies of Da kota there was a strong protest against the exploita tion of the people by eastern bankers and railroad oper ators, and I had never for one raoraent supposed that the Republican party which always clairaed to be the opponent of slavery and the charapion of freedora was presenting a united front to any raeasures looking to a dirainution of this exploitation. In 1896 I was elected as a delegate to the Republican National Convention which assembled at St. Louis for the purpose of adopting a platform and of nominating a presidential candidate. After the St. Louis platforra had been adopted, twenty-two of the delegates, I among the number, left the convention and the Republican party. Our reasons for leaving were, first, that the party, in its platform, declared for a very high pro tective tariff and made no pronouncement against trusts and corabinations in restraint of trade, but left out the plank on that subject which it had included in every National convention for at least eight years pre viously. The tariff wall for which the platform pro vided was so high as to make the trusts absolutely se cure against foreign competition, which was the only competition they had to fear. The convention also declared for the gold standard and at every opportu nity announced that it was in favor of the great indus trial corabinations, whose attorneys not only dominated the convention, but made up two-thirds of both Houses of Congress. In other words, the grand old party that had come into existence as a protest against human slavery had, after forty years, decided to abandon its great record as the champion of black slaves and be come the charapion of the trusts and industrial and transportation combinations which were enslaving men. Seeing this change as clearly as I did, there was only one course for me to pursue — I left the party. Still I was a Republican at heart. I never voted but for one Democrat. 251 After the St. Louis Convention I attended the Demo cratic Convention at Chicago, and was on the platform when Bryan made the great speech which resulted in his nomination. He was endorsed by the so-called Sil ver Republican Convention, which was coraposed of those who bolted the St. Louis Convention of the Re publican party and their adherents. In the carapaign of 1896 I supported Bryan and raade a great raany speeches advocating his election. Partly as a result of ray activity he carried the State of South Dakota.' He was beaten throughout the nation by the industrial combinations which had backed the noraination of McKinley and had adopted the St. Louis platform. These interests put up raany millions to purchase and corrupt the voters of the country and to defeat Bryan, so that they could go along with their work of concen trating in the hands of a few the result of the toil of the American people. Again in 1900 I supported Bryan, who was mnning on a platform which declared against trusts and com binations in restraint of trade, against the acquisition of colonies to be exploited in the interests of trade; against an enorraous array and navy — in fact, which declared against everything that; the Republican party in the carapaign of 1900 stood for. After the campaign of 1896 a debate took place in the Senate with regard to free horaes on the public domain. In this debate I was contending that the Re publican party boasted during the campaign of 1896 that it was the author of the Homestead Law ; and that in the convention at St. Louis the party had declared in favor of the Homestead Law, As an advocate of the restoration of the Homestead Law, I told the Republi cans that they had put the free homestead plank in their platforra at St, Louis and now they were refusing to live up to it. By quoting the plank in the Republican platforra and comparing it with the bill that the Repub licans were trying to enact, I showed conclusively that they had abandoned it. During this debate, the whole 252 question of party relations and affiliations carae to the surface, and above all, the spokesraen of business, who were leading the fight against the bill in the Senate, said plainly and eraphatically that they were not there to do the will of the people or to represent thera, but that they were rather serving their real raasters who paid the party bills. I quote the Congressional Record : Mr. PETTIGREW: "That is the measure which the St. Louis Convention specifically and in terms endorsed and said they were in favor of. The Senator frora Con necticut (Mr. Platt) says to rae they did not do any such thing. Let us see whether or not they did. This bill was reported to the Senate on the 16th of May, 1896, and on the 18th of June, 1896, the St. Louis plat form was adopted. Now, let us see what the platforra says: " 'We bejieve in an iraraediate return to the free horaestead policy of the Republican party and urge the passage by Congress of a satis factory free-horaestead raeasure, such as has already passed the House and is now pending in the Senate,' " Mr, PLATT, of Coiinecticut : "Did they endorse the bill which passed the House?" Mr, PETTIGREW: "'And is now pending in the Senate,' What bill was pending in the Senate? The bill reported by the Coraraittee on Indian Affairs, the bill I have read here in terms and words," Mr, PLATT: "What did they endorse? Did they endorse the bill which passed the House or the bill that was pending in the Senate ?" Mr, PETTIGREW: "Both; the bill 'such as has al ready passed the House and is now pending in the Sen ate,' " Mr, PLATT: "Does the Senator think they knew what was pending in the Senate ?" Mr, PETTIGREW : "I think they did," 253 Mr, PLATT: "Or that this bill was any different frora the bill pending in the Senate?" Mr, PETTIGREW: "They knew all about it. There is no question about it. Here is the difference between the two bills. The House bill provided for free horae- steaders in Oklahoma, every bit of which had been bought frora Indians, and the Senate bill provided that the sarae provisions should extend to the other states of the West, Now, the Republicans went into the cara paign in South Dakota and on every sturap they told these people that they should have free horaes if the Republican party won and that they could not get them if they did not, and you pointed to the record ol the Republican party as being the party in favor of free homesteads, and you showed thera that the Democratic party had voted against it 'way back in 1860. You gained thousands of votes by that pretense and by that plank in your platform, and now you go back on it. "It is not the only plank you have gone back on. You have gone back on your whole record as a party. You have left the side of the people of this country. ^ You have abandoned the principles that made your party great and respectable and have become the charapions of everything that is corrupt and bad in American politics, "What is more, we passed this bill as a separate raeasure at the last session of Congress and it went to the House of Representatives exactly in words and terms as in this bill, being the sarae raeasure. Has the House done a thing with it ? It is referred to the Calen dar — the graveyard of the House, They will not even araend it and pass the provision in regard to Oklahoma ; and one of the prorainent merabers of the House stood up the other day and stated that it was raade for the purpose of getting votes. One of the raost prorainent raembers of the House said that the plank was put in the platforra, but the election was over, I wish I had his speech here, I should like to put it in the RECORD along with my statement in regard to it, 254 Mr. GALLINGER : "If ray friend, the Senator from South Dakota, will perrait rae, we ought to be sorae what exact in these historical raatters. Do I under stand that that plank was in the platforra of the Re publican party in 1896 ?" Mr. PETTIGREW: "YES." Mr, GALLINGER : "And the carapaign was waged in South Dakota in behalf of that plank by the Republican party?" Mr, PETTIGREW: "YES," Mr, GALLINGER: "And the Senator who is speak ing fought the Republican party in that carapaign." Mr, PETTIGREW: "I did," Mr, GALLINGER: "The Republican party had not gone back on that plank at that tirae. How does it happen that the Senator was with the opposition in that carapaign?" Mr, PETTIGREW: "Oh, Mr, President, that is a long story, but I am willing to answer it, I left the Repub lican party at the St, Louis Convention, and I am proud of it. There has never been a day from that time to this that I have not been glad of it, I stated in that campaign that if McKinley was elected I never could retum to the party, because the forces which would control his administration would make it irapossible, but there was a chance to retum to the party if he was defeated. Repeatedly on the sturap I raade that state raent, I left the St, Louis Convention, first because it declared for the gold standard, which will ruin every producer in this country and every other country that adopts and adheres to it, I left the Republican party because the trusts had captured your party and had coraplete control of your convention, and you left out the plank against trusts, which you had heretofore adopted, because the trusts, owning you and your party and in possession of your convention, did not want to abuse each other. Reason enough, reason suf ficient to justify my course before the people I repre- 255 sent, and enough, in ray opinion, to consign the repub lican party to eternal oblivion, "What has been your course since? It is known throughout this country that vast suras of raoney are collected and that you are in alliance with the ac curaulated and concentrated wealth of this country, and that you rely ujjon thera not only to carry your carapaigns and furnish raoney to corrupt the elec tions, but to elect your senators ; and after you have done it, after you have elected by corrupt means a man to this body, the great convention of the state where it occurs passes resolutions congratulating themselves upon the infamy and declaring that they are glad of it." Mr, GALLINGER : "Will the Senator permit me again? He seems to be soraewhat specific now, and he says that a raan has been corruptly elected to this body and that the party has not only not con-~ demned it, but applauded, I wish to ask the Senator if there is any proof that any man occupying a seat on this floor as a republican was corruptly elected?" Mr, PETTIGREW: "Oh, yes; and the proof is with the committee on elections. The proof is be fore the people of the United States, and they all know it, and it is conclusive and the Senator referred to is Mark Hanna, of Ohio," Mr, GALLINGER: "That raight be said of an accusation against soraebody whose case was before a grand jury and where the grand jury had not re ported, I do not understand that the comraittee on elections has made a report to this body giving it as their deliberate conviction, after proper inquiry and investigation, that any accusation against a republi can occupying a seat here has been proved ; and until that is done I think the Senator ought to be a little raore careful about his statements on that point, with all due deference to his rights as a Senator," Mr, PETTIGREW : "I am willing that the state- 256 ment I have made shall go to the country. The proof was sufficient to satisfy the Senate of Ohio, and they sent the case here weeks ago. An innocent man would demand that our comraittee act before we adjourn. Why does the case sleep in the Senate Committee?" That was my stateraent to the Senate twenty-flve years ago, and during those years, every contact that I have had with the Republican party organization has strengthened ray conviction that I understated the case at that tirae. It did not need the revelations ofthe 1920 carapaign to convince the Araerican peo ple of these facts. Those revelations siraply era phasized knowledge that was already coraraon. But do not let it be supposed for an instant that the Democratic party has been less eager to play handy-man to big business. It has been the oppor tunity and not the will that was lacking. And even at that, it is a raatter of coraraon knowledge that the Wilson Carapaign railllons in 1912 and again in 1916 were greater than the funds at the disposal of the Republicans, and the bulk of thera did not corae from either workingmen or farraers. On the contrary, the Deraocrats, like the republicans got their funds frora the only source that yields them in large amounts — the exploiters of the Araerican people, Bryan was the last of the Democratic leaders to make a stand against the vested interests and while his intentions were of the best, his knowledge of economics was woefully limited. Furthermore, he was far frora being the master of Democratic party policy. The Democratic Convention at Denver (1908), nominated Bryan for the third tirae. I was a dele gate frora South Dakota to that convention and was chairman of the sub-coraraittee on the tariff and chairraan of the Full Coraraittee on Insular Affairs. In connection with this second coraraittee, I brought 257 in a plan declaring in favor of the independence of the people of the Philippines and against the policy of acquiring colonies peopled by another race for the purposes of commercial exploitation. I brought into the full coraraittee, coraposed of over fifty raem bers, a tariff plank which resulted in a very active debate. The wheel horses of deraocracy were all for a high protective tariff and I had introduced a plank which was not sufficiently protective to satisfy their purposes. That debate satisfied me that the difference between the two old political parties was not one of principle. As a result of it, I saw quite clearly that they both were owned by the exploiting interests and that the contest between the two was over which one should hold the offices, dispense the patronage, and collect untold millions for campaign purposes. From that time until now the two have been as like as two peas in a pod. There has never been more than a difference in the wording of their respective platforms, and since 1918, as if to prove that they were one and the same, they have fused in those district (notably in Wisconsin and in New York) where the Socialist candidates would have been elected in a three cornered fight. Before the Denver Convention, I was invited by Mr, Bryan to his horae near Lincoln, Nebraska, where I spent a week with hira. He expected to be nom inated, and we put in our tirae going over a platform for the Denver Convention and discussing and plan ning the carapaign, I had great adrairation for Bryan because of his sterling qualities as a man, and because of his ability to state what he had to say in a forceful and eloquent manner, and because I be lieved that he had the moral courage to stand by his principles. The week that I spent with him gave me an op portunity to know the man intiraately, I had access to his library and conversed with hira every day. 258 We walked and drove together and in the course of our conversation we covered raany topics. I found that he was fairly well versed in the law ; that he had studied Blackstone and Kent and the English prece dents, but that he was utterly ignorant of alraost everything else except the bible and the evils of in temperance; that his library contained almost no books whatever of value to a raan fitting hiraself to be President of the United States, or even meraber of a state legislature. I also found that, while his per sonality was charming, whatever ability nature may have endowed hira with had been badly dwarfed and crippled by a narrow education, and that he was not big enough to overcorae his training by con tinuing his investigations of raen and affairs after he entered public life. Bryan asked rae to retum by way of Lincoln after the Denver Convention and go into greater detail with regard to the carapaign. He knew that I was well acquainted with Roger Sullivan, of Chicago, who had become the- democratic boss of Illinois and who was reputed to be very rich. He was also aware of the fact that Sullivan for some years had been a resident of South Dakota when a very young man and that I had had his brother, who was a re publican, made surveyor-general of the State of South Dakota, He knew, furthermore, that I was well acquainted with Murphy, of New ifork, the boss of Tamraany Hall, as well as with Arthur Brisbane, the editor of the Hearst newspapers, Bryan wished rae to see Sullivan, Murphy and Brisbane and author ized me to say to Sullivan and Murphy that he de sired their support in the campaign and that they should receive due and proper consideration if he were elected President of the United States; that they would be consulted about affairs in their re spective localities and that their political iraportance would be recognized, I had no trouble with Sulli- 259 van and Murphy and easily secured their pledges to stand by the ticket, I then talked with Arthur Bris bane, hoping to receive the support of the Hearst newspapers of which he was the editor, Brisbane, in my opinion, has more general knowl edge of the past and present and of books than any other man in America, and he seeras to have the raa terial ready for use, I have always had a high re gard for his ability and experience. When I ap proached hira and urged his support of Bryan, he turned to rae and said, "Bryan doesn't know enough to be President ; he is a provincial fellow, prejudiced by his training. He has none of the knowledge that a raan raust possess in order to be fit for the position of President of the United States," I then asked Brisbane how rauch money he had raade the preceding year through his writings. He replied that it was about $70,000, Then I said, "That is nothing, Bryan made $100,000 from the sale of his books and through his lectures, and yet you say Bryan doesn't know enough to be President," I could raake no impression upon Brisbane, how ever, for he still adhered to his position that Bryan was impossible. So far as I know, he is still of that opinion. There are other incidents — raany of thera — ^that have transpired during the past few years, that I could cite if more proof were necessary to establish my point. But it seeras to me that on this score, I have said enough. The able men as a rule, do not go into politics. They stay in business, and with the wealth that they derive through their special privileges and raonopolies they support one or both of the old parties — turning their contributions into the channel that will yield the largest net returns. 260 XVII, Chauncey M. Depew The Union and Central Pacific Railroads, from Oraaha to San Francisco, had been constructed by a company organized by Ames, of Boston, and his as sociates. They had succeeded in getting Congress to give a land grant consisting of the odd numbered sections of land — for a strip ten miles wide on each side of the main track from Oraaha to San Francisco. Besides that the Government had appropriated money enough to more than build and equip the en tire road. In return for this raoney the Governraent was given a second raortgage on the property. The road never paid any interest to the Govern raent, but allowed it to accuraulate. They estab lished freight rates that were confiscatory, as far as the public was concerned. For exaraple, on goods shipped frora Omaha to Nevada they charged the rate from Oraaha to San Francisco and then added the local rate back, frora San Francisco to the point in Nevada. The same was true in Utah, except that in Utah the Mormon Church furnished one of the directors of the road and received favorable rates, so that their entire influence was with the railroad and its systera of exploitation. In 1896, the Govemraent's second raortgage was about to mature, and the people controlling the Cen tral and Union Paciflc railroads put them in the hands of a receiver and then appointed a re-organi zation comraittee. In the meantirae a through line had been created by a combination between the Union and Central Pacific from San Francisco to Omaha, the Northwestern Railroad from Omaha to Chicago, and the New York Central Railroad from Chicago to New York. The reorganization com mittee was appointed for the purpose of swindling the Government out of its entire claira by foreclosing the first mortgage and by separating the Union Paci fic frora all its branch lines. This reorganization 261 coraraittee included Marvin Hughitt, the President of the Northwestern Railroad and Chauncey Depew, President of the New York Central Railroad. It was, I think, in connection with ray efforts to head off this robbery that Chaurtcey Depew's narae first appears in the Congressional Record. So coraplete was ray exposure of the rascality that the proraoters were unable to carry through their scherae. My stand naturally aroused the hostility of the New York Central and the Northwestern Rail road interests. Nor were these ray only offenses against the sacred railroad privileges, I have already related the es sential facts concerning ray fight on the railway raail pay, during which I showed that the Govemment paid the railroads for carrying the mail ten times as rauch per pound as the express corapanies paid the railroads for carrying express on the sarae train, in the sarae car, under alraost exactly identical condi tions, and that the New York Central Railroad in particular received from the Government, for carry ing the raail between New York and Buffalo, a sum sufficient to pay the interest at six per cent upon the total cost of building and equiping a double-tracked railroad frora New York to Buffalo. Finally I raoved to reduce the railroad raail pay by 20 per cent, and introduced a bill providing for governraent owner ship of the railroads and the fixing of passenger rates at one cent a raile, which I proved would be possible if all passes and other forms of free transportation were elirainated. It was to guard against such dangerous tendencies that the New York Central Railroad sent Chauncey M, Depew to the Senate in 1898, Depew was not sent to represent the State of New York, or the people of the United States, but to protect and foster the interests of the railroads in general and of the New York Central in particular, 262 Depew had been in the Senate a little less than sixty days when he found occasion to attack rae, I reproduce his entire speech of February 7th, 1900: Mr, DEPEW : "Mr, President, on the 31st of Jan uary, the Senator frora South Dakota (Mr, Petti grew) , in the course of his speech on the Philippine question, raade the following reraarks in reference to the president of the Philippine Coraraission, Presi dent Schurraan, of Cornell University, He said : " 'Mr, Schurraan, in his Chicago inter view (and this is the only authority I will read which is not vouched for by official documents) August 20th, 1899, said: " ' "General Aguinaldo is believed on the island to be honest, and I think that he is acting honestly in money matters, but whe ther from moral or political reasons I would not say," (Oriental American, Page 99.) " 'The fact of the matter is that he tried to bribe the insurgents, as near as we can ascertain, and failed ; they would not take gold for peace.' "The speech of the Senator from South Dakota was brought to the attention of the president of Cor nell, and I have from hira the following letter, which I will read, I do it for the purpose of having the Record corrected by his stateraent: " 'Cornell University, Office of the President, Ithaca, N. Y,, February 3, 1910, " 'Dear Senator Depew : I see, from page 1362 of the Congressional Record, that Sen ator Pettigrew, speaking of rayself, says : " ' "The fact of the raatter is that he tried to bribe the insurgents, as near as we can ascertain, and failed; but they would not take gold for peace," 263 " 'Had this preposterous statement been raade anywhere else I should not have paid any attention to it ; but as it has been raade in the Senate of the United States, I desire to say to you that it is absolutely without foundation, " 'Very truly yours, " 'J. G. SCHURMAN. " 'Hon, Chauncey M. Depew, United States Senate, Washington, D, C "Now, Mr, President, at the tirae this speech was being raade. President Schurraan was in this city upon business connected with his report and the report of his coramission on the Philippine matter. He was at that very hour in conference with the President at the White House, and therefore com petent to be suraraoned, "It seeras to rae that the alleged facts which have been brought forward by ray friend, the Senator from South Dakota, in order to substantiate his conten tion that the President of the United States is a tyrant and that Aguinaldo is a patriot fail in the iraportant consideration that his alleged facts never turn out to be true, "He has suraraoned the two witnesses who were raore corapetent than any others to testify on the question of the original understanding had with Aguinaldo and of the position of the Philippine peo ple, one Adrairal Dewey and the other President Schurraan, the president of the Philippine Commis sion. "Any evidence, any statement, in regard to this matter made by Adrairal Dewey would be received at once by the people of the United States without further question and the same can be said of any 264 statement made by the president of Cornell Univer sity, "But instead of presenting his evidence by calling the witnesses themselves, he calls others for the pur pose of proving what they have said, "With Adrairal Dewey here in the city, his house well known, hiraself the most accessible of men, he reads, as proving what Adrairal Dewey has said and what his position is, an alleged proclamation of Aguinaldo, translated by an unknown translator and published without any certificate of its authenticity in a New England newspaper; and instead of ascer taining, when President Schurraan is in the city, what his views really are and what he really did say and what he really did do, he reads a report of an anonyraous and unknown reporter in a Chicago news paper, Adrairal Dewey at once branded the state ment affecting hira as absolutely and unqualifiedly false, and now President Schurraan repudiates the testiraony attributed to hira, "I subrait, Mr, President, that having, amid the raass of newspaper reports, of anonyraous reraarks, of testiraony of no consideration and no value, sub poenaed the tAVO greatest and raost prorainent wit nesses in the country, he has done it in a way which discredits all the alleged facts which are presented on his side or the contention which Senator Petti grew and his friends endeavor to raake in behalf of Aguinaldo and in discredit of the President and of the Philippine policy of the adrainistration, "These facts, or alleged facts, cited by the Sen ator frora South Dakota, are like the array of Aguin aldo, Whenever the United States troops appear, there is no array of Aguinaldo. And whenever the truth is let in, as Admiral Dewey and President Schurraan let it in, these alleged facts vanish in thin air. The basis of their whole contention has no bet ter foundation than the seat of the Aguinaldo gov- 265 ernment, which, as far as I can ascertain, is nowhere except in the hat of Aguinaldo," To this I replied at once and showed by the Record that Mr, Schurraan, president of Cornell University, who was the head of the comraission that went to the Philippines, sent by the Government to try and pacify the islands, had offered Aguinaldo a Government posi tion with a salary of $5,000 per year if he would cease hostilities, I showed also that the commission had offered to pay a large bounty to any of the Filipinos who would come in and surrender their guns, Fur therraore, I showed that Aguinaldo had never talked anything else but absolute independence and that he had talked with Dewey tirae and again on the point. Finally I charged the following facts as proved by the official records in regard to our conduct of affairs in the Philippine Islands : I charged the suppression of information, the censor ship of the press and tampering with the raails; I charged that the press was censored, not because there was fear that the eneray would secure important information, but to keep the facts from the American people, and I proved it ; I charged that the President began the war on the Filipinos, and I pi'oved it by Otis' report ; I charged that Aguinaldo, after hostilities had been inaugurated, asked for a truce, with the purpose of endeavoring to settle differences without further blood shed, and that the administration answered: "War, having coramenced, must gq on to the grim end ;" I charged that Otis changed the President's procla raation to the Filipinos with the purpose of deceiving those people and concealing our real intention of re raaining in the islands; I charged that the Filipinos were our allies ; that we armed them, fought with thera, recognized their flag and surrendered Spanish prisoners to them; that de spite these facts Dewey finally captured Aguinaldo's ships of war in September or October, 1898; that Otis, 266 on September 8, 1898, threatened to attack the Fili pinos, and that we finally did begin the fighting ; I charged that we raade a covenant with the Sultan of Sulu, by which the President agreed to sustain slav ery and polygamy and pay the Sultan over $700 a month for running Old Glory up over his slave mart every raorning and taking it down every night ; Finally, I pointed out that we could not have a repub lic and an erapire under the sarae flag — that one or the other must go down; that the attempt to govern any people without their consent was a violation of our theory of Governraent and of the Declaration of Inde pendence; that all govemraents derived their just powers frora the consent of the governed; that satis fying greed of erapire by conquest had caused the downfall of every republic and every empire in the past. To all of this the junior Senator frora New York an nounced, with his incomparable after-dinner, spirited and effervescent logic, that these allegations were all answered and disposed of, because Dewey said that Aguinaldo's statement in relation to hira was a tissue of falsehoods and Schurraan declared that he did not offer Aguinaldo gold for peace. That was our first contest. After that, frora tirae to tirae, as long as 1 reraained in the Senate, Depew went out of his way to attack rae. He took the death of Mark Hanna (1904) as a favorable occasion. In the course of a funeral oration, delivered over the reraains of Hanna, who had been the factotura of the Repub lican party and the principal partner of Aldrich as the representative of the corrupt financial interests in the Senate, Depew made the following stateraent: "Quite as suddenly as he grew to be su prerae in political raanageraent Senator Hanna becarae an orator. He had been accustoraed in the boards of directors of raany corpora tions, where the conferences were more in the 267 nature of consultations than arguraents, to influence his associates by the lucidity with which frora a full raind he could explain situ ations and suggest policies or reraedies. He did not dare, however, except on rare occa sions, to trust himself upon his feet. We, his associates, can never forget the day when a mighty passion loosed his tongue and intro duced into the debate of this body an original and powerful speaker. It was June, 1900. The presidential carapaign for the second noraination and canvass of President McKin ley was about to open. Senator Pettigrew, an active and persistent laborer in the ranks of the opposition, was seeking raaterial in every direction which would benefit his side. Without notice he suddenly assailed Senator Hanna in his tenderest point. He attacked his honesty, truthfulness and general char acter. He accused hira of bribery, perjury, and false dealing, Hanna's reply was not a speech but an explosion. It was a gigantic effort, in his almost uncontrollable rage, to keep expression within the liraits of senatorial propriety. He shouted in passionate protest : " 'Mr, President, the gentleraan will find that he is mistaken in the people of the United States when he atterapts, through raud-sling- ing and accusations, to influence their deci sion when they are called upon at the polls next November to decide upon the principles that are at issue and not the raen. When it comes to personality, I will stand up against him and corapare my character to his. I will let hira tell what he knows; then I will tell what I know about hira,' "The new-born orator carried his threat into execution by a draraatic and picturesque speaking tour through South Dakota, in 268 which, without mentioning Mr, Pettigrew or referring to hira in any way, he took away his constituents by convincing them that the doc trines of their Senator were inimical to their interests and prosperity. The titanic power the Dakota Senator had evoked was his polit ical ruin," I have given my version of this story in sorae detail in another chapter (Chapter 21, "A Lost Election") ; I need raerely say at this point that Mark Hanna's "Ex plosion" was produced by my calling the attention of the Senate to a report subraitted by the Ohio legisla ture to the Senate Coraraittee on Elections in which careful and detailed data was produced showing that Mark Hanna had been directly iraplicated in buying his way into the United States Senate, I read frora the majority report of the Coraraittee of the Ohio State Senate, which showed that Mark Hanna purchased the vote of a meraber of the Ohio legislature for the sura of $20,000 ; $10,000 to be paid down and $10,000 after he had voted. The testiraony disclosed that Mark Hanna had personal knowledge of this pur chase and was a party to it and sent the raoney frora Colurabus, where the legislature was in session, to Cincinnati to be paid to the purchased raeraber of the Ohio legislature. The testiraony also showed that Mark Hanna was negotiating for the purchase of two or three other raerabers of the legislature and through this sys tera of pribery and corruption he succeeded in getting his seat in the Senate of the United States, I then read the rainority report of the Coraraittee on Elections in the Senate which went into the sub ject fully and disclosed the facts. The Republican members of the Committee on Elections in the Sen ate — and they were in the majority — siraply alluded to the testiraony laid before thera by the Ohio State Senate and refused to investigate, and gave as a reason that the Ohio State Senate had not sent a raan 269 down there to prosecute the case. In other words, Mark Hanna was such a factotura in the Republican party in all its councils that it did not disturb the Republicans at all, as so raany of them were used to using raoney to secure their election. Besides, Mark Hanna at that tirae was Chairraan of the Re publican National Coramittee, Depew says: "Mark Hanna's reply was not a speech, but an explosion. It was a gigantic effort, in his almost uncontrollable rage, to keep expression within the liraits of Senatorial propriety. He shouted in passionate pro test: " 'Mr. President, the gentleraan will find that he is mistaken in the people of the United States when he atterapts, through mud-slinging and accusations, to influence their decision when they are called upon at the polls next November to decide upon the principles that are at issue and not the men. When it coraes to personality, I will stand up against hira and corapare ray character to his, I will let him tell what he knows; then I will tell what I know about him,' " And this is Chauncey Depew's idea of oratory. In other words, the Bowery response, "You're another!" Hanna admitted that he was all that I said he was, but that he could show I was a little worse, which convinced me that Chauncey Depew was a phrase-maker of but little intellect, to balance considerable avoirdupois. For Depew's part in this whole transaction his narae ought to go down in history and he should put a halo on his own statue which he has already erected and presented to his native town in New York. I should suppose it would be appropriate to have a 270 dove corae down frora Heaven and perch upon his shoulder and say: "I am from the boodle crowd in New York who run the Government of the United States, and this is ray beloved son in whom I ara well pleased," 271 XVIII, Bryanism It is not easy to characterize a complex political situ ation in a brief and comprehensive manner. If such a thing can be done at all, I believe that it can be done most successfully through the personality of two men who typify the two extremes of American political life. One of these raen that I shall select for the purpose is Williara Jennings Bryan, The other is Joe Cannon of Illinois, The first is a Deraocrat — the second a Repub lican, I have known both of these men for raany years. Neither is a statesraan in any sense of the word. Both are lawyers and suffer from the disqualifications that go with the study and practice of the law, Bryan has integrity, of a sort; Cannon has a keen mind. Both understand the political game, and both play it ac cording to their lights. Bryan plays prohibition poli tics; Cannon plays plutocratic politics. Neither has any real grasp of the meaning of the phrase 'the pub lic welfare." In the previous chapter, I have referred to the sup port which I gave Mr. Bryan in his fight against the eastern bankers and trust raagnates. The fight ended in failure because Mr, Bryan was very weak while the trusts were very strong. Since that fight, Bryan has showed hiraself for what he is — an American politician, vacillating, uncertain, overlooking the fundamental things, ignorant of the forces that are shaping Ameri can public life, incapable of thinking in terms of reality, but making phrases as a substitute for thought, Mr, Bryan is weak, not corrupt. That is why I wish to describe sorae of his public activities during the past few years. He is a type of the "good raan" that so often fools the Araerican people. By way of illustra tion, let me refer to two incidents which show Mr, Bryan's attitude toward public questions and his method of judging matters of personal conduct. When the Spanish Treaty was pending in the Senate 272 of the United States and we believed that we had it defeated beyond a question, Bryan carae to Washington from his horae in Nebraska and urged a ratification of the treaty. He saw several Senators, before he came to me, and urged them to vote for ratification, Bryan knew the grounds upon which I was opposing the rati fication of the treaty and yet he had the temerity to corae and ask rae to vote for ratification of the treaty. He argued that the treaty would entirely end our troubles with Spain and that, once it was ratified, the nation would have an opportunity to perform a great moral duty — the granting of freedora, under a wise and generous protectorate, to the people of the Philippines, His chief arguraent was that should the Republicans not give the people of the Philippines their indepen dence, but, instead, should undertake to conquer the islands and annex thera to the United States, such a course would and ought to drive the Republican party frora power. The Filipinos had been our allies in the war with Spain, and he held that our repudiation of an alliance by such an act of bad faith as that ira- plied in the conquest of the islands would wreck any administration that attempted it, Bryan thus raade the ratification of the Spanish Treaty an act of political expediency, and did not seera to realize that every person who voted to ratify the treaty at the sarae tirae endorsed the doctrine of pur chasing a country and its people without their consent — the very doctrine on which he proposed to pillory the Republican adrainistration before the country. Neither did he understand that a Senator holding ray views and voting for ratification would be guilty of the most out rageous raoral turpitude and depravity, I called Mr, Bryan's attention to the fact that, if we voted for the treaty, it would be fair for the adrainis tration to assurae that the Senate sympathized with the spirit of the document which, as I pointed out, be sides violating every principle of free government, con travened the Constitution which I had swom to sup- 273 port, I told him, that I would sooner cut off my right arm than cast my vote for the treaty, I was so incensed by his effort to induce rae, on the score of expediency, to change front on a matter of principle and stultify myself, that I finally told him eraphatically that he had no business in Washington on such an errand ; that his stand reflected on his character and reputation as a raan, and indicated a lack of knowledge of huraan af fairs which raust make his friends feel that he was not a suitable person to be President of the United States, Despite the vigor of my statement, I doubt if Bryan understood what I was driving at. He was seeking political capital and he was willing to take it where he found it, without paying too much attention to nice questions of principle. The treaty was ratified by one more vote than was necessary, I do not believe Mr, Bryan's visit changed the result, although several Deraocrats, who made speeches against it, voted for the treaty. The only effect of his visit was to give an excuse for Deraocrats, for a cash consideration, to sell out to Aldrich and vote for the treaty, Andrew Carnegie, in his autobiography, on page 364, refers to this subject as follows : "Mr, Bryan had it in his power at one tirae to defeat in the Senate this feature of the Treaty of Peace with Spain, I went to Wash ington to try to effect this, and reraained there until the vote was taken, I was told that when Mr. Bryan was in Washington he had advised his friends that it would be good party policy to allow the treaty to pass. This would dis credit the Republican party before the people; that 'paying twenty railllons for a revolution' would defeat any party. There were seven staunch Bryan men anxious to vote against Philippines annexation, "Mr, Bryan had called to see raen in New 274 York upon the subject, because ray opposition to the purchase had been so pronounced, and I now wired hira at Omaha, explaining the sit uation and begging him to write me that his friends could use their own judgraent. His reply was what I have stated — better have the Republicans pass it and let it then go before the people, I thought it unworthy of hira to subordinate such an issue, fraught with de plorable consequences, to mere party politics. It required the casting vote of the Speaker to carry the measure. One word frora Mr, Bryan would have saved the country from the disaster, I could not be cordial to him for years afterwards. He had seeraed to rae a raan who was \villing to sacrifice his country and his personal convictions for party advan tage," This is a significant verification of ray conclusions, but it is rather arausing to read Carnegie's comments on the perfidy of Bryan, The facts in his own case do not permit hira a great deal of latitude in criticizing others, Carnegie was a very active opponent of the treaty and of the doctrine of iraperialisra. He was a member of the conference which met at the Plaza Hotel (New York) on the 6th of January, 1900, and he took a prorainent part in its discussions (see Chapter XXIII), The conference was called by the New Eng land Anti-Iraperialist League, to organize an Anti-Ira- perialist political party for the purpose of corapelling the old parties to agree to the independence of the Philippines, and for the purpose of opposing the acqui sition of tropical countries. The conference was called ostensibly to discuss the annexation of the Philippines and the Spanish West Indies and Hawaii, Its real purpose was to meet the broader question as to whether we should start on the course of empire. In a vigorous speech Mr, Carnegie 275 urged upon the conference the necessity of a new polit ical party for the purpose of opposing the imperial policy of both the old parties, and said that he would give as rauch raoney, dollar for dollar, as all the rest of us could raise toward proraoting the carapaign. As a pledge of good faith, he subscribed twenty-five thou sand dollars on the spot. Afterward, he withdrew com pletely from the moveraent because the organizers of the steel trust served notice on hira that he must choose between a corafortable berth with them and an Anti- Imperialist party, which threatened the whole success of the steel trust moveraent; and the organizers of the steel trust told Carnegie that, unless McKinley was elected, they would not attempt to form the trust, as they needed a McKinley tariff in order to justify its great overcapitalization. It was a "Case of imperialism and a tariff or no trust and Carnegie lined up with the imperialists. Despite Mr, Carnegie's coraraents, he and Bryan raeasure up very much alike, Bryan was willing to sell his convictions for a supposed iwlitical advantage; Carnegie sold his for gold, Bryan's act was one of intellectual stupidity, Carnegie's act was prompted by what big business calls enlightened self-interest, Bryan has the point of view of an ordinary American business raan. His ruling passion is "safety first" — not the financial safety of a raanufacturer, but the political safety of a visionless raanipulation of party raachinery, "This trait appeared very clearly in his activities during the Baltiraore Convention of 1912, where Woodrow Wilson was norainated for President of the United States, with Charap Clark, Speaker of the House, as his chief opponent. The custora in Dem ocratic conventions had always been to disregard the two-thirds rule and give a candidate the noraination when he had secured a raajority and held it for several ballots. At Baltiraore, after Clark had for several ballots re ceived the votes of a majority of the delei:ates, Bryan, 276 who had been instructed at the primaries to vote for Clark and use all honorable means to secure his nomi nation, arose in the convention and said that he would abandon him and violate the instructions of the Demo crats of Nebraska as long as the Deraocratic delegates in the convention frora the state of New York continued to vote for Clark. This occurred after the delegations from New York, Virginia and Illinois had voted in the convention with Bryan to seat the Wilson delegates and oust the Clark delegates from South D.akota, al though Clark had carried South Dakota in tho priraa- ries by twenty-five hundred raajority. Bryan could vote with Roger Sullivan of Chicago, and Ryan of Virginia, and the Taramany Democrats of New York, to throw Clark delegates out of the conven tion and seat Wilson delegates, but his pure scul would not perrait hira to vote for Clark while New York dele gates were voting for hira. This whole performance branded Bryan as not only a hypocrite, but also as a raan lacking in character and in intellect Iraraediately upon Bryan making the announceraent, I gave out the following interview which was published in all the leading newspapers of the United States : "Mr, Bryan's stateraent that he will support no can didate for President who has the support of New York is the rankest hypocrisy. It is the excuse of the dema gogue who believes that such a statement will be popu lar among the western voters, and has been seized upon by Mr, Bryan as an excuse for doing what he has intended to do ever since he was elected as a delegate to this convention by the Deraocrats of Nebraska, "He was not only instructed by the Deraocrats of Nebraska to vote for Mr, Clark, but instructed by the State Convention to use all honorable raeans to secure his nomination. After that, he stumped Ohio, Mary land and Florida in Wilson's interest. While clairaing that he maintained strict neutrality between Clark and Wilson, during the last week in May, Wilson's man agers sent a letter to every Democratic voter in South 277 Dakota saying that Mr, Bryan had endorsed Wilson and raade speeches in Ohio and Maryland in support of him, "This letter was circulated with Mr, Bryan's knowl edge and consent, Mr, Bryan was thoroughly familiar with the campaign made in South Dakota. He was familiar with the priraary law of that state and knows that there were two Clark tickets in the field and that one of these was put up by Wilson's managers to divide the Clark vote, hoping to give Wilson a plurality. "He knows that this bogus ticket was not supported by the raen who put it into the field, and he is fully aware that Clark carried the state, by over twenty-five hundred majority over Wilson, Yet he voted to seat the Wilson delegates in this convention, joining with the ninety votes from New York and the fifty-eight from Illinois and the Virginia delegation, of which Mr, Ryan is a member, to oust the Clark delegates from South Dakota, Yet Mr, Bryan would now have us believe that no honest Democrat can co-operate with New York, Illinois and Virginia in this convention." The publication of this interview regarding Bryan's hypocrisy and the other facts connected with the Bal timore Convention ended his political career, and yet he still hopes that he will be norainated four years frora now, for he honestly believes that he was pre destined frora his birth to be President of the United States, This is the Williara Jennings Bryan, who "led" the Democratic party until he was succeeded by Woodrow Wilson — the Bryan of political expediency and polit ical chicanery. He has traveled around the world, yet he knows little of international affairs. He has been frora one end of the United States to another, yet he is ignorant of Araerica, Furtherraore, this is Bryanisra — a fluent tongue, a resonant voice, the plausible stateraent of half truths, an appeal to the passions and prejudices of the rao ment, a mediocre mind, and a verbal fealty to "right," 278 "justice," "liberty" and "brotherhood," An ignorant elactorate has always followed after such superficial qualities, Bryan has never told any of the real truths of mod ern life, because he does not know them. He has never made a fight on an issue of principle because he has no abiding principle. He listens. He watches his au dience. He gauges its intelligence and then he makes his point, Mr, Bryan is reputed to be one of the best speakers in the United States, His reputation in this regard has been won not by what he says but by the way in which' he says it. Nothing in his public career, with the possible exception of his resignation as Secre tary of State, has been based on a hard-fought or hard- won principle. Rather he has yielded to the necessity of the raoraent, trusting that in the end all would be well, but without foreseeing the end or understanding its iraport, Bryanisra carries with it no taint of corruption — no suggestion of wilful wrongdoing. It is the politics of an ignorant, unimaginable and of a rather vain mind that is quick in trifles and impotent before major issues, Reforra politics in the United States has never existed on any other basis, and therefore reforra politics has always proved an easy mark for the machinations of big business. 279 XIX. Cannonism So much for the weak Mr, Bryan, Now for the cor rupt Joe Cannon, Bryan never knowingly served the vested interests. He fought thera to the extent of his ability and interspersed his political battles by giving lectures on "Prohibition" and "Imraortality," Joe Can non, on the other hand, was one of the raost faithful servants that the vested interests of the United States ever had in either house of Congress, He is a type of those all-too-nuraerous public raen who are the political body-servants of big business. Joe Cannon is still in Congress. For over forty years he has been a raeraber of the House of Representa tives, and, as chairraan of the Comraittee on Appro priations and, as Speaker, has had raore to do with shaping legislation than any other man in the House, In fact, he was one of the leaders of the band of plun derers that, in both Houses of Congress, for two gen erations dorainated the public affairs and made the Governraent of the United States one of the most cor rupt in the world. Under the guidance of this clique of men all legis lation was directed to the granting of special privileges to corporations, giving thera power to tax and exploit the people of the United States, The tariff becarae the chief vehicle for the robbery of the public and its beneficiaries were the chief contributors to the great carapaign funds collected by the Republican party to deraoralize the voters of the nation. Under the regime of Cannonism concessions and privileges of every sort, not only for the public service and industrial corpora tions, but for the financial institutions of the country, received the chief attention of Congress, and these privileges were so profitable that the halls of the House and Senate swarmed with innumerable lobbyists whose vocation it was to appeal to the ordinary merabers of both branches with whatever arguraent was necessary, 280 being assured in advance of the ardent and powerful support of Joe Cannon and the other leaders. The granting of these concessions and privileges, by which the few planned to plunder the raany, is the essence of Cannonisra, Elected to office of trust by the franchise of their fellow-citizens. Cannon and his like utilize their position to serve, not the people who elected them, but the great interests which provide the campaign funds and other forms of corapensation. Thus a new profession arose — the profession of pub lic lackeying to the plutocracy. To enter this profes sion it was necessary, first, to buy or fool the people, and, second, to convince the leaders of the plutocracy of your sincere intention to serve their interests. Thus was perfidy coupled with venality by these "public ser vants" who had taken an oath to support the Constitu tion and then busied theraselves in robbing the people. Most of the leaders araong the political spoilsraen were content with a reasonably extravagant living, but Cannon in the House and Aldrich in the Senate were not thus easily satisfied. The powerful positions which they held enabled thera to become enormously rich. These raen becarae rich because, through their posi tions of public trust, they were able to betray the Gov ernment and the people into the hands of the exploit ers. Let rae cite a few illustrations of the way in which this was done. During the nineties there was much talk about the "land frauds," These frauds were the product of legis lation especially secured by Cannon and some of his aids in order that the railroads raight secure valuable forest and raineral lands in the West and Northwest without paying anything for thera beyond the cost of securing the legislation, I was the author of the law for the regulation and control of the forest reservations of the United States. (See Chapter IL) It was adopted by the Senate and, as adopted, contained a clause which perraitted any horaesteader, whose horaestead was era- braced within a forest reservation, to release his horae- 281 stead to the Government and be accredited with the time he had lived upon it, and allowed to take land from the Government in some other locality, Mr, Cannon was chairraan of the Coramittee on Appropriations of the House, and chairman of the Conference Coraraittee, and he inserted the words, "or any other clairaant," so that, if the lands of a land grant railroad were em braced within a forest reservation, the railroad com pany could exchange thera for any other lands the Government raight possess, I did not observe this interlineation in the conference report, which was read rapidly and approved without first being printed. Afterward I found that the Northern Pacific Railroad was receiving scrip for the sections of land of its grant which were on the top of Mount Tacoraa in Washing ton, Lands that were absolutely worthless were ex changed in this way for lands of the greatest value, I stated these facts in the Senate and suggested an appraisal of those lands that were erabraced in the forest reservations on top of snow-capped raountains, and proposed that the exchange be raade according to value. If they exchanged a section on top of one of these mountains that wasn't worth over a cent an acre for land worth ten or twenty dollars per acre, they should not get acre for acre, but exact value after appraisal; and I also moved that all operations under the law be suspended pending an investigation by the Interior De partment, The Senate passed my araendraents, but with a full knowledge of all the facts, showing just what frauds had been practiced and how they were practiced; the House refused to agree to the Senate amendraents, and, as is custoraary, the bill was thrown into conference. Cannon was chairraan of the Corarait tee on Conference, and chairraan of the Coraraittee on Appropriations in the House, and he insisted upon standing by the railroads and continuing the frauds, and so refused to agree to the Senate araendraent, but inserted a provision that thereafter railroads could only exchange for surveyed lands. However, as the law 282 provided that, when three settlers in a township peti tioned for the survey of the township the Governraent was bound to raake the survey if the settlers deposited money enough to pay for the work, these railroad thieves would send three raen into a township, would have them file three homestead entries, and then raake affidavit that they were residing there and wanted the township surveyed ; would deposit the raoney necessary — four or five hundred dollars to get the survey made — and then the railroads would locate their scrip upon these lands all over the township, and when this was done the three men would move on and locate in an other township, and so continue the fraud. Cannon and his henchmen in the House and Senate raade the frauds possible, and thus enabled the rail roads to secure raany railllons of dollars worth of the best land in the West for a sraall fraction of their true value. Thus the tiraber and raineral wealth of the public doraain was turned over to the great corpora tions whose handyraen were maintained in Congress for just such purposes, Cannonism is the profession of selling the country to the rich so that they raay be enabled to grow still richer by the exploitation of the poor. Another instance of Cannonism is found in the armor-plate scandals. For several years the Senate of the United States liraited the price to be paid for arraor-plate. The arraor- plate raanufacturers were in a trust. Everybody ad mitted that. There were only two plants in the United States that could manufacture arraor-plate. One was the Carnegie Steel Corapany; the other the Bethlehera Steel Corapany, The Carnegie Steel Works and Beth lehera Steel Works were in a corabination, and each always bid for just half of what the Governraent wanted, and always bid the sarae price. The Senate passed a bill liraiting the price of arraor- plate to $300 per ton, and under that provision no armor-plate was purchased because the companies re- 283 fused to sell at that price. Two years afterwards the Senate passed an araendraent to the Navy Appropria tion Bill liraiting the price of arraor-plate to $425 per ton. The Carnegie and Bethlehera corapanies were asking the United States Governraent $550 per ton, and were selling the sarae plate to the Russian Governraent for $240 per ton. The Senate araendraent therefore provided that if the Secretary could not buy armor- plate for $425 per ton, the Governraent should irarae diately comraence to construct an arraor-plate plant and raake its own armor-plate, Joe Cannon was chair man of the Comraittee on Conference in the House, and he absolutely refused to submit to the Senate araend raent, but insisted that the arraor-plate raakers should have their price, although they were in a trust and in collusion. These facts were well known to hira and to every raeraber of both Houses, - I could go into the details of the Congressional Rec ord with regard to the duty on white pine: The Senate reduced the duty frora $2, the price fixed by the House, to $1 per thousand. Cannon refused to agree to the Senate araendraent, but insisted upon $2, which was finally allowed. Under it, the luraber dealers of the whole country forraed a corabination and plundered the consuraers, according to their own stateraent, of thirty-five railllons per year. These facts were known to Cannon and to both Houses when this duty was put on white pine. It was well known that the duty would not fumish any rev enue to the Governraent or any protection to the build ing up of an infant industry, but it siraply put $2 a thousand into the pockets of the owners of the white pine tiraber. The stateraent of Mr, Winchester and other luraberraen that if they could get $2 on luraber it would be worth thirty-five raillion dollars each year was read in the Senate, And yet Mr, Cannon stood pat on the tariff. When the tariff was revised, it was revised in the interest of the plutocracy and not in the interest of the 284 people of the United States, Cannon's work in Con gress was done in the interest of the scheraing jobbery that has cursed and controlled the Republican party for the last thirty years. I have used Cannon's narae, not because I wish to discredit hira as an individual, but because his story is so typical of the record of the raany who are today holding offices of trust under the Governraent, and faithfully serving the Araerican plutocracy. 285 XX. Business and Politics At a number of points in this discussion I have sug gested that business men used politicians for the ad vanceraent of their interests, and the politicians served the business interests first and the public afterw^ard. My experience showed this to be true in a general way, but there were tiraes when the corabination of busi ness and politics rose to the surface of public events and becarae a gross and scandalous plundering of the public treasury in the interest of sorae specially favored business group. One such instance, involving the sale of Governraent bonds to a New York syndicate, is espe cially deserving of notice, Grover Cleveland, a New York state lawyer, was closely associated with the big business interests be fore he became President of the United States. During his second term as President, the gold reserve in the public treasury fell to a very low point. To meet this emergency, the President, through Carlisle, his Secre tary of the Treasury, issued bonds which were to be exchanged for gold and thus keep up the Federal gold reserve. The Wilson Tariff Bill was passed on August 14, 1894, for the purpose of saving the situation, but the rais chief had been done. On Noveraber 14, 1894, the Sec retary of the Treasury issued a call for $50,000,000 five per cent, ten-year bonds under the Resuraption Act The bonds sold in January, 1894, had been absorbed at horae. The Stewart syndicate, which handled these bonds, had been treated fairly by the Governraent, and there was a disposition on the part of these bankers freely to subscribe for the new issue, Mr, Stewart and Mr, J, P, Morgan visited Washing ton in the interest of the syndicate, and it is repre sented, and generally believed, that Mr, Stewart, at least, had a distinct understanding with the President and with Mr, Carlisle that nothing would be done by the adrainistration in any way whatever to interfere 286 with the marketing of the bonds. These bankers, therefore, went back to New York and forwarded a bid for the whole araount of the bonds at $117, The total offers for these $50,000,000 of bonds araounted to $58,500,000, The award was raade to the Stewart syndicate on the understanding that the gold to be paid for the bonds would not be taken frora the treasury. Payment for the bonds was made promptly, $20,000,000 having been turned into the Sub-Treasury by the end of Noveraber, The syndicate iraraediately arranged to sell the bonds they had bought, and offered a lot of $5,000,000 at 119, It is believed that this amount was sold at the price named, but, before they had an opportunity to dispose of any additional bonds, the President's raessage and the report of the Secretary of the Treasury recom mending changes in the currency law effectually stopped the marketing of Government bonds. This act, which was very apparently one of bad faith on the part of the administration, resulted in the disso lution of the syndicate and a great depression in the prices of bonds. When it came to subsequent bond issues, the administration turned over the bonds to certain financial groups in New York at a price far below their true value and thus enabled the new syndi cate to make millions of dollars without taking any risk, investing any capital or iraporting any gold. Senator Peffer, of Kansas, introduced a resolution to investigate the Cleveland bond sales. No sooner had this resolution appeared than David Bennett Hill, of New York, began a fight to prevent its passage. In the course of this struggle he attacked everyone that advo cated it, and defended the bond sales with great vigor, I would not raention Senator Hill in this connection were it not for the fact that his brief career is such a typical illustration of the relation between business and politics. Hill (a Deraocrat) carae to the Senate with the repu tation of being a lawyer of decided ability, and a polit- 287 ical raanipulator of sorae cunning and skill, having served as Governor of the state of New York,* He reraained in the Senate only one terra, for, at the end of his six years, Tora Platt — Bass Platt, as he was called — took Hill's place, Araong the private jobs which Hill undertook to put through was an araendraent to the Indian Appropria tion Bill, which practically confiscated the reservation of the Seneca Indians, He raade the effort to rob the Indians of their horaes under the guise of an old agree raent of sofne sort with the Ogden Land Corapany, by offering an araendraent to tlie Indian bill, in which it was provided that $300,000 should be paid to the Ogden Land Corapany out of the sale of the land of the reser vation. He was exceedingly persistent, and offered this araendraent on the floor of the Senate. The araend raent was clearly subject to a point of order and, after a considerable discussion, I stated in the Senate that there was present a lobby of adventurers who were interested in this claira, and that the only result would be that they would divide this raoney araong thera ; and I finally told Hill that, unless he accepted my araend raent which specifically provided that the lands of the Indians of New York should not be sold or any part of * Some idea of Hill's position in New York State politics may be gained from the following article appearing in a Demo cratic paper (The Times), February 23rd, 1896: "Senator Hill is a Democratic statesman of high degree, as statesmen go in that party. His term as senator will close next March and, during his nearly six years in the Senate, he has been responsible for but one bill, and that has not yet become a law, although it has passed the Senate and had been favorably reported from the House Committee on Interstate and Foreign Commerce. And what think you is this great and momentous piece of legislation that is to be the only reminder to posterity — that is, if it becomes a law — that David B. Hill served six years in the Senate? It authorizes the Secretary of the Treas ury to detail a revenue cutter to control excursion and other boats which attend yacht races. Now, doesn't that prove the statesmanship of Hill?" 288 thera, or any of their property whatever appropriated for the purpose of paying this claira, I would insist upon a point of order and let it go to the House of Repre sentatives for their consideration. He accepted the araendraent and it was adopted in conference. After wards, the Indians in council passed a resolution thank ing rae for preventing Hill frora plundering thera frora their property.f After a careful study of the facts and an investiga tion of the circurastances surrounding the Cleveland bond sales, I raade a series of charges against the ad ministration. (May 5, 1896, Cong. Record.) I charged that the President, through the Treasury officials, sold sixty-two millions of bonds at private sale for $10434 to his former clients, and that on the day of such sale the market price of these bonds, as quoted in the New York papers, was $117. t The following is a copy of the Resolution of the New York Indians: "At a council of the Seneca Nat' on of New York Indians, assembled at the Council Home at Cold Springs, on the Alle gheny Reservation, on the twelfth day of April, in the year one thousand eight hundred and ninety-five, the following resolu tion was adopted: "RESOLVED: That we sincerely tender our thanks to the Honorable Richard F. Pettigrew, of Sioux Falls, South Dakota, United States Senator, for his valuable services ren dered to our delegates while on their visit to the United States Congress at Washington, D. C, and for the deep interest he has taken in the welfare of his red brethren in opposing the passage of the amendment to the Indian Appropriation Bill relative to the claims of the so-called Ogden Land Company to the lands of the Senecas on the Cataraugus Reservations. "A true copy. "William C. Hoag, President, Seneca Nations of Indians. "Alfred L. Jimson, Clerk, Seneca Nation of Ind'ans. "Great Seal of the Seneca Nation of New York, 1876." 289 I charged that the purchaser and others associated with thera, the plutocrats and autocrats of New York, sold these bonds to the public in a short tirae at a profit of $8,418,000, I charged that the syndicate was to pay in gold for these bonds sixty-two raillion dollars, and that one-half of the gold was to be iraported and that part of the con tract requiring the gold to be iraported was not carried out and that less than fifteen railllons of gold was im ported, I charged that a secret agreeraent was made with the syndicate by which they were released from im porting the gold and allowed to sell exchange against the gold received for the bonds in England to the great profit and advantage of the syndicate, I charged that negotiations were completed to sell this sarae syndicate one hundred railllons of bonds at $104% and it would have been carried out but for the protests of the public, I charged that after the public and the Senate had protested against the sale of any raore bonds at private sale, the adrainistration delayed action until the syndi cate of bankers could get together and corner the gold so that the public could not bid, and then the President offered the bonds at a pretended public sale, and that the bonds were sold at about $111, raostly to the syndi cate, while, if there had been an honest effort before the gold had been cornered they would have brought $117 at least, I charged that about five railllons of the bonds were not taken by the bidders and the Secretary of the Treasury cpuld have sold these bonds for $117, but that he gave thera to Morgan & Corapany for $110,68, caus ing a loss to the Treasury of several hundred thousand dollars, I had suramarized the raatter, as I understood it, in the following words (April 29, 1896, Cong, Record, p, 5004) : "Mr. President, the plain stateraent of the facts con- 290 nected with the several bond issues by the present ad rainistration constitutes an arraignraent which no elo quence could raake stronger. First, there was the attack upon the credit of the United States by the inspired object lesson frora the banks of New York; then the extra session of the Fifty-third Congress; then the passage of the Wilson tariff for a deficit; the further depreciation of the national credit by the dera- onstration that the revenues were not equal to the necessary expenditures of the Governraent; then the endless chain — the first bond issue of $50,000,000 of five per cent ten-year bonds at a fixed price of $117,077 ; the depreciation of the raarket value of these bonds by the recoraraendation to Congress that a bill be passed discontinuing the use of thera as a basis of bank-note circulation ; then the secret contract with the Belmont- Morgan syndicate for the sale of $62,000,000 of thirty- year four per cent bonds at $104%, which bonds were quoted last December at 121 ; finally the attempt to give to the Morgan syndicate the last loan of $100,000,000 at the sarae figure, and the actual award to thera at their bid of $110,6877 of about $5,000,000 upon which default was raade in payraent, for which other parties offered 116, and which were quoted in open raarket at a higher price, "Upon this record, Mr, President, the adrainistration and the Deraocratic party must go before the people next November, and the verdict of the people will be even more emphatic in condemnation than it was in 1894 and in 1895," Nor was I alone in raaking a fight to have the facts regarding this infaraous transaction brought to light, A number of western senators, backed by Populist con stituencies, were as eager as I was to have the facts placed before the country. And in their case, as well as in raine, it was David Bennett Hill that "talked back," In the debate over the Seneca Indian Reservation I had characterized the claira which Hill was supporting as robbery. This had very rauch offended Mr. Hill, 291 who waited about three raonths and, in the raeantirae, having sent to Dakota for inforraation, he secured sorae Sioux Falls newspapers containing editorials by J, Tom linson, Jr,, attacking me personally and politically in the raost outrageous manner. In the course of a speech on the Cleveland bond sales Hill read these editorials into the record. After reading several of the editorials himself, he asked the clerk to do the reading. As the clerk read. Hill stopped hira frequently with such ex claraations as "What's that? Read that over," By this trick he had each abusive stateraent read twice. Throughout the episode he behaved like an endraan in a rainstrel show, I had said in my speech in regard to the bond sales that the President and the Secretary of the Treasury were evidently enriching their favorites, for the pur chasers of these bonds 'were all prorainent New York people, and they cornered all the gold there was in the country, and were giving for the bonds from ten to fif teen per cent less on the dollar than they would sell for in the open market, and J charged that they had thus made about eighteen millions of dollars, and that it looked like a very disreputable and dishonest job. And so, when Hill had finished his attack upon me by read ing these editorials, I siraply arose and said that I had charged the adrainistration and the financiers of New York with acting in collusion to plunder the people of the United States in connection with this bond transac tion, and that Mr. Hill seeraed to think that the com plete answer to charges was to read scurrilous political editorials with regard to rayself. I said if he was sat isfied with the answer I was entirely satisfied, and that Hill had honored rae by this attack in the only way he could honor anybody — he had convinced the Senate and the country that we had nothing in coraraon. Senator Peffer's resolution to appoint a special com mittee to investigate the bond sale was finally araended to request the Committee on Finance of the Senate to make the investigation through a sub-committee of 292 four senators, that is, Harris of Tennessee, Walthall of Mississippi, Vest of Missouri and Platt of Connecticut, all lawyers, three of thera Deraocrats and in syrapathy with the adrainistration. This coraraittee raade sorae investigation, but never made a report to the Senate. Who were the chief actors in this scandalous bond transaction ? First, the President of the United States, Grover Cleveland, a Buffalo lawyer; second, John Car lisle, a lawyer frora Kentucky, who had been a great advocate of bi-metallisra and who sold his convictions in order tp get Cleveland to appoint hira Secretary of the Treasury ; David Bennett Hill, a lawyer frora New York, who was the charapion on the floor of the Senate ; John Sherraan, a Republican and a lawyer frora Ohio. During the twelve years that I was in the Senate, two- thirds of both Houses of Congress were lawyers and the Presidents were all lawyers — Harrison, Cleveland and McKinley. The consequence was that all legisla tion was fraraed in the interests of the exploiters of the people of the United States, whether it dealt with bond sales, arraor-plate, railway raail pay, land grants of the public doraain, ship bounties — ^the rights and in terests of the people of the United States were never considered. In fact, we have becorae a governraent ad ministered by lawyers who were acting as the attorneys and representatives of the great exploiting corabina tions of banks, railroads and industries. I have gone into the question of these bond sales because they illustrate one of the raethods by which the people of the United States are exploited in the inter ests of the capitalists. Several raillionaires were made as the result of the transaction and the American people footed the bill. It was a comparatively sraall deal — probably thirty millions were made out of it — but it illustrates very well the operations of the system, and the way the machinery of govemment is manipulated to accumulate the wealth of the country in the hands of the few. 293 XXI. A Lost Election Before leaving the subject of American political life and its control by big business, I want to refer to one more incident — the election that cost rae my place in the United States Senate. Mark Hanna managed the campaign of 1900 and after McKinley took office Hanna managed the Presi dent even more successfully than he had managed the campaign. Through ten strenuous years I had fought Hanna and all that he stood for. I had opposed him on the gold standard issue; I had led the opposition to the schemes of the imperialists for annexing Hawaii ; I had opposed the acquisition of the Philippines and the other Spanish colonies. I had opposed the trusts, the extor tion of the railroads, the armor plate thieves, and had tried to save the public domain for the people. Consequently, when it came to the election of 1900, Mark Hanna spared no pains to insure my elimination frora public life. The incident which inspired Hanna with a particu larly strong desire to have rae out of the way arose out of a charge concerning a carapaign contribution to the Republican party. In 1895 I went to Europe and stayed several raonths. I returned on the Araerican Line stearaship "St Louis" in corapany with Crarap, the shipbuilder and owner of the line of ships. During the voyage I becarae well acquainted with Mr. Cramp and we talked a great deal together. One day he told me that he had paid $400,000 to Tom Carter, chairman of the Republican National Commit tee, to re-elect Harrison in 1892. He said that he was assured by Carter that his $400,000 would certainly elect Harrison. Carter told him where he was going to spend the raoney, and that he "could get it back out of building ships for the Government after Harrison was elected." "Harrison was defeated," said Cramp, "and I lost ray raoney. I have since looked the matter 294 up and have found that Mr. Carter did not spend the raoney where he said he would spend it, and I feel that I ara a victim of misrepresentation." Mr. Cramp wanted to know of me how he could re cover the $400,000, and I told him I knew of no way except to make terras with the next adrainistration and increase his contribution. In December, when the Senate had convened, I went one day over to Tora Carter's seat and told hira what Cramp had said to me. Carter srailed and replied, "Well, we did hit the old raan pretty hard." Sorae tirae afterward, in a discussion with regard to the building of an arraor-plate factory, I told on the floor of the Senate what Crarap had said to rae about the $400,000. Carter, ex-chairraan of the Republican National Coraraittee, and Mark Hanna, then chairraan of the comraittee, were both in their seats, but neither of them raade any reply or took any notice of ray state ment. Some time afterwards Senator Bacon, of (^eorgia, interrupted a speech by Senator Hanna to say : Mr, BACON: "In this connection I want to call the attention of the Senate to the most reraarkable thing I ever heard and the raost remarkable thing I ever saw in the Senate, I fancy that the country has never been the witness to what we saw and heard in this chamber a few days ago. "A senator in his place in this charaber stated as a fact that the manufacturer of ships, a prominent and the most prorainent firm engaged in the raanufacture of warships for the Government, had stated that in 1892 he was approached by the officers of the Republi can party and induced to give $400,000 to the campaign fund of that party upon the assurance that the money would be returned to him or raade good to hira in the contracts which he should have in the building of war ships. "Now, Mr. President, the reraarkable thing that I want to call the attention of the Senate to is this: I heard that stateraent, I did not doubt that it would 295 then and there be proraptly challenged. I did not be lieve that such a stateraent could be raade in the Sen ate of the United States in the presence of the leaders of the Republican party and no one deny it or call it in question, "Now, that was not made in a thin Senate; it was made in a full Senate, It was made when the chair raan of the National Committee of the Republican party in the campaign of 1892 was in his seat and heard it, as well as the chairman of the Republican National Committee at the time, Mr, Hannah, and yet no one either challenged it or denied it, "Mr, President, in the absence of such a challenge and such a denial, the country must believe it is true," And Mr, Hanna made the following reply : Mr. HANNA: "Mr President THE PRESIDING OFFICER: "Does the Senator from Georgia yield to the Senator frora Ohio?" Mr. BACON : "I do, with pleasure." Mr, HANNA: "The Senator alludes to the fact that the chairraan of the Republican Committee was in his seat and did not deny the statement raade." Mr. BACON: "If I ara incorrect in that, I certainly raade it in good faith. I think I saw the Senator pi:es- ent," Mr, HANNA: "If I undertook to reply to all such stateraents made upon this floor, I would occupy more time than the Senator frora Georgia does in the Senate, I considered it unworthy of notice and declined to dig nify it by a reply," It raay well be noticed that Mr, Hanna did not under take to deny ray stateraent and for this reason : Irarae diately after I had raade the statement in the Senate several of the prominent Republican merabers of the Senate and a nuraber of newspaper raen went to see Crarap, and Crarap told thera that what I had said was true; that he did tell me that he made a contribution of over four hundred thousand dollars to Harrison's campaign ; that he raade it upon the raisrepresentations 296 of Tora Carter ; that he consulted with rae as to how to get the raoney back; that he had not told it to rae in confidence, but for the purpose of securing ray assis tance in getting the money returned to him. One of the newspaper men reported what Crarap said. Of course, Crarap's statement to these Senators and news paper raen left the Republicans where it was irapossible for thera to raeet ray charge except by ignoring it. After Hanna had said that if he answered such statements he would take raore of the Senate's tirae than was occupied by the Senator frora Georgia, and that the source frora which the report came was un worthy of notice, I rose and said that perhaps I had something that would be of interest to the great raan frora Ohio and that did corae frora a source worthy of his notice, I thereupon stated to the Senate that I had in ray hand a petition from the Ohio State Senate, signed by four out of the five merabers of the Corarait tee on Elections of the Ohio State Senate, asking the United States Senate to investigate the election of Mr, Hanna to that body, I said that this petition charged that Mr, Hanna, to secure his election to the United States Senate, had purchased the votes of two raembers of the Ohio Legislature from the city of Cincinnati; that the purchasing was done by Hanna agents under Hanna's direction ; that the sum of ten thousand dollars had been paid to one of the legislators ; and I said that this petition had been referred to the Comraittee on Elections to the United States Senate, After I called the attention of the Senate and the country to this venal and corrupt practice on the part of Mr, Hanna in pur chasing his seat on the Senate, the majority of the Senate Coraraittee on Elections raade a report and stated that, as no official person carae from the Ohio legislature to present and to prosecute the case against Mr. Hanna before the Committee on Elections, they had concluded not to look into the matter. But the minority of the Comraittee on Privileges and Elections in the Senate raade the following report : 297 "We cannot concur in the report of the majority of the Comraittee on Privileges and Elections in the mat ter of the report of the comraittee appointed by the Senate of the State of Ohio to investigate the charges of bribery in the election of the Hon, M. A. Hanna to the Senate of the United States. "The charge is that early in January, 1898, an at terapt was made by H, H, Boyce and others to bribe John C, Otis, a member of the House of Representa tives of the General Asserably of the State of Ohio to vote for Marcus A, Hanna for the Senate of the United States," Araong other things, the majority of the committee had reported: "Moreover, it seeras clear to this coramittee that it would not be justified in recommending any action to be taken by the Senate without further testimony to be taken by the comraittee. The question whether addi tional evidence should be taken has been the only diffi cult question which the coraraittee has considered. It is clear that Mr, Otis never had any intention of yield ing to bribery. He encouraged Mr, Boyce by the advice of others only in order to entrap him. Then he care fully withdrew and substituted his attorney, Mr. Carap bell, to continue the negotiations. Mr. Carapbell labored to induce Mr. Boyce to offer raoney and, finally, as he says, obtained $1,750 frora hira as part payraent on $3,500 to be paid for Mr, Otis' vote for Mr, Hanna, leaving $6,500 to be paid if Mr, Hanna was elected. At this point, public exposure, through Mr, Otis, Mr, Carap bell and their associates, took place, Mr. Boyce disap peared, and the incident was closed, "That Mr, Boyce, operating in Cincinnati, where Mr, Otis lives, has relations with Mr, Hanna's representa tives at Colurabus, the state capital, the State Coramit tee undertook to prove by the evidence of various de tectives, professional and amateur, who listened at tel ephone wires and shadowed Mr, Boyce, Mr, Hollenbeck and others. The effbrt of the coramittee was carefully 298 and skilfully raade. It was not wholly devoid of re sults; it raises pregnant suspicions that Mr. Hanna's representatives at Colurabus knew what Mr, Boyce was doing. But this whole line of inquiry would require verification by testiraony to be taken by the Corarait tee on Privileges and Elections before that coraraittee would be willing to found conclusions thereon," The quotation is frora the report of the raajority of the coraraittee. Now we will see what the minority further say: "The attempt on the part of Boyce to buy Otis' vote for Mr, Hanna is clearly proven by Campbell who, from his testiraony, seems to have been a lawyer of large practice. One thousand seven hundred and fifty dol lars was paid in cash by Boyce to Carapbell as attorney for Otis, Boyce agreed to pay $1,750 raore when Otis reached Columbus, and a balance of $6,500 if Mr, Hanna was elected, . . . "We think that the evidence to which we have al ready referred, standing as it does uncontradicted and unexplained, shows that certain of Mr. Hanna's man agers at Colurabus not only knew the purposes which Boyce had in view in Cincinnati, but also that they aided, abetted, and advised hira in carrying out these purposes, and that this state of affairs existed while Mr. Hanna was present at his headquarters. . . . "First, That many of the witnesses, whose testimony apparently would have thrown rauch light upon the subject under inquiry, denied the jurisdiction of the the coramittee and refused to testify under the advice of counsel, who stated that they represented the inter ests of Majors Rathbone and Dick and Senator Hanna ; and, "Second, That Mr. Hanna and his representatives had subpoenas, "The report of the majority says they 'do not doubt that if facts appeared from the report of the commit tee of the State Senate requiring the United States Senate, out of a proper regard for its own reputation, 299 to take further testiraony concerning Mr. Hanna's elec tion, it would be the duty of the Senate to proceed without waiting for further prosecution of the case coming from residents of the state of Ohio.' "We think such facts do appear from the report of the comraittee of the State Senate, and that this body should direct further inquiry and investigation to be raade," The minority who signed this report was coraposed of Senators Tubley, Pettus and Caffery, After reading this and much more of the sarae kind of evidence to the Senate, I said: "Mr, President, these things are known to the Amer ican people. It will not do for the Senator from Ohio to stand up here and say that charges of this sort — if he answered all that were raade he could not do rauch else — are unworthy of consideration or notice, Frora the Senate of his own state corae these charges; from a rainority of the coraraittee of this body come these charges, and yet the Senator frora Ohio says they are unworthy of his notice — that they are little things," This report of the Senate Coraraittee is rather a re raarkable docuraent; all who signed the majority re port were Republicans and Mark Hanna was chairman of the Republican National Comraittee, and the general factotura of the whole Republican party. He repre sented the interests of great business and was a busi ness raan. He had collected vast suras of money to corrupt the voters of this country and elect McKinley in 1896, So accustomed had the Republicans of the Senate becorae to the use of money that it did not dis turb thera at all that Mr, Hanna had purchased his seat in that body. The facts which I presented did not cause even a ripple of interest, and the Senators did not seem to care if the public knew all about it. During the quar ter-century that has elapsed since this episode the purchase of seats in the Senate has becorae so coramon that it attracts no public attention. Why should it when even the presidency of the United States is put 300 up at auction in the Republican National Convention and knocked down to the highest bidder ? Mr, Hanna was furious at what I had said about hira and he deterrained that he would have revenge! My terra in the Senate would expire in 1901, and Mark Hanna raade up his mind to prevent my re-election, I was not running as a stalwart Republican in the election of 1900, for I had walked out of the St, Louis Republican Convention in 1896, I was running as a Bryanite on the Bryan Free Silver Republican ticket in South Dakota, Mr, Hanna raised a vast sum of raoney to corrupt the voters of South' Dakota, and put in charge of the work Henry Payne, of Milwaukee, one of the well-known hangers-on of every Republican cam paign, Payne came out to South Dakota with $30,000 and in conjunction with the Republican organization of the state and the help of A, B, Kittridge, a Sioux Falls lawyer, afterwards a Republican United States Senator, they polled the state of South Dakota on the probability bf ray election. This task was not a great one. The total population of the state at that tirae was only 401,570, with a total vote in 1900 of 96,124, Payne sent out 200 tearas and visited every farraer and voter in the state. When they had finish ed the canvass they found that I had the state by several thousand raajority. This greatly alarraed Mr, Hanna and the Repub lican carapaign raanagers, for they considered it of great political iraportance to get rid of rae. Senator Allison, of Iowa, carae to Dakota to see how the carapaign was going on. He raade no speeches, but simply looked over the possibilities of eliminating me frora public life. He was being en tertained in my home town, when C, C, Bailey, a prominent attorney, asked him about me, Allison replied that I had the greatest power for making trouble of any raan he ever knew, and that the in- 301 terests of the party and the people of this country would be best served by getting rae out of the Senate, Senator Nelson of Minnesota also came to South Dakota and canvassed the State and in his speeches said Mr, Pettigrew should be defeated because he had opposed the great business interests that controlled the Government and the Republican party and there fore, if South Dakota wanted to get anything out of the Government, they should elect a man that would train with the gang, Theodore Roosevelt also joined in the contest against rae as the candidate of the Republicans for vice president on the ticket with McKinley, and sent the following telegrara to Senator Platt in October, 1900: "Good Lord, I hope we can beat Pettigrew for the Senate, That particular swine seeras to me, on the whole, the most obnoxious of the entire drove," Why was Roosevelt opposed to ray election? Be cause he was the candidate of the predatory interests that own the Governraent of the. United States. Charles Edward Russell answered ray question. Asserting that many public men of value to the country have been cried down by the clamor of sub sidized newspapers, Mr, Russell says further: "I have seen this happen a thousand times. Every observer, particularly if he has been a newspaper man, raust be farailiar with it. Years ago there was a raan in the United States Senate that certain news papers did not like, because he had attacked the inter ests that owned these newspapers. The newspapers covered that raan with ridicule by misrepresenting everything he did or said. They convinced a large part of the country that he was a wild, erratic, absurd, visionary; when, as a matter of fact, he had one of the coolest, clearest and steadiest minds I have ever known in a long acquaintance with public men and affairs. Yet the news colurans drove him out of public life, to the great interest of the public interests. I 302 have no objection to raentioning his narae. It was R, F, Pettigrew, "He was ahead of the tiraes, for his vision was clearer than raost men now occupying positions of public trust, and he realized then that the interests were weaving the web of autocratic control about the several departments of the Governraent, "Possessing the courage of his convictions, he stood almost alone as a target for the shafts of raendacious newspapers, many of them instigated by the sullen command of great wealth. They were merciless and the people believed them rather than the man who had interceded in their behalf." After Henry Payne's canvassers had reported the result of their poll of the people of the state of Dakota, Hanna went out araong the railroad in terests, the trust interests and the financial interests of this country, and raised a special fund of $500,000 to be expended in the purchase of Dakota votes. I did not believe that it could be done because I had great confidence in the farmers of Dakota and I had underestimated the resources of the business inter ests, overestimated the possibilities of ordinary human nature. Hanna himself carae to South Da kota and stumped the state with Senator Fry, of Maine, The railroads furnished a special train. The State Committee had been lavish with its publi city and great crowds met the Hanna special at every station. At Midson, where there is a normal school, Hanna began his speech by taking off his hat and saying, "You see, I have no horns," The next day I addressed the same crowd — largely composed of farraers — and said, "Of course Mark Hanna has no horns, I dehorned hira in the Senate," And then I told the story of how he had bought his 3eat in that body. A day or two after ray speech at Madison, Hanna carae to Sioux Falls and addressed 303 a large outdoor meeting and someone in the crowd yelled to Hanna to take off his hat and show the crowd where Pettigrew dehorned hira, I was very badly beaten in the election. After it was over I made an investigation to determine how the work had been done. The Republicans had visited every banker in every country town in the State; had deposited a sum of raoney with him, and had given him rainute instructions as to the part that he was to play in the carapaign. The local representatives of the Republican party would then take a list of the farmers, and watch for each man. When he came into town they would take him over the bank and the banker would hand him ten dollars in cash, "That is yours," the representative of the Republican party would state, "and if Pettigrew loses this town ship (or county) in the election there is ten dollars more for you at the bank that you can get by coming in and asking for it after election." In sorae cases, in several cases of which I know per sonally, the sura was twenty dollars before election and twenty dollars after election. Hanna boasted, after the election, that ray narae was never mentioned in any of his campaign speeches by either himself or Senator Fry. But his statement is false in this respect, for a Roberts County paper pub lished the following just after Mark Hanna's visit: "Mark Hanna at Sisseton Indian Agency, South Da kota, in an address to Two Stars, chief of the Sissetons, chaperoned by Mr, Sapackraan, chairman of the Rob erts County Republican Coramittee: " 'I understand that half of you Indians are going to vote for Bryan and Pettigrew. I understand that your annuities from the Government, due in about six weeks, are $22 per capita. That is enough for Indians who vote against the Great Father: If all the Sisseton In dians will vote the Republican ticket, I will have the Government increase their annuities $75 per head. 304 This will give to the Sisseton Indians $75 apiece instead of $22 apiece. Do you turable ?' "They tumbled and God did not forbid that citizen Mark Hanna should atterapt to divert the will of the sovereign people or taraper with the sanctity of their ballots." I have since talked with many of these Indians who heard Mark Hanna's statement to thera, and who cor roborate this story frora the local newspaper. They also told rae that Mark Hanna never raade any effort to secure for them seventy-five dollars per capita which he had promised thera if they would vote against me. I also learned that, during the campaign, the Repub lican Committee of South Dakota had trunkfuls of blank passes from every railroad in the country. Upon these passes they could send a man and his faraily to any point in the United States or the adjacent countries and return, free of cost and at the expense of the rail road. I know of several prorainent Deraocrats who raade long excursions after the "election, one of thera taking his faraily to the Hawaiian Islands, Mark Hanna had secured these passes by appealing to the railroads when they made their effort to swindle the Govemment out of the money which had been ad vanced to build the roads. He had also cited my bills for the Governraent ownership of all the roads in the United States, as well as ray exposures of the swindles in connection with the Railway Mail Pay, Consequently the railroads not only fumished transportation, but a considerable araount of the money used against me, James J. Hill, president of the Great Northern Road, told me afterwards that Mark Hanna had assessed hira fifty thousand dollars, and he told Hanna that he not only would not give a single dollar towards trying to defeat rae in South Dakota, but he would not give the Republican National Comraittee any raoney whatever if they were going to undertake the purchase of the voters of South Dakota. After the election, I was in the Auditoriura Hotel, 305 in Chicago, getting lunch one day, when a young man came in and asked, 'Is this ex-Senator Pettigrew?' "Yes," I said, "it is." "Well," said the young raan, "I want to tell you of an incident that raight be of interest to you, I was Mark Hanna's private secretary in 1900, and on elec tion day Hanna left Chicago and went back to Cleveland to vote, leaving rae in charge of the Republican head quarters. About ten o'clock election night, Hanna called me up over the phone and wanted to know about the election, I told him that McKinley was undoubtedly elected, and Hanna replied, 'Oh, I know that ; but how about Pettigrew?' I thereupon replied, 'Pettigrew is undoubtedly beaten,' and Hanna said, 'If you are sUre of that I can go horae and go to bed and to sleep, I wanted to accoraplish two things in this election — ^to elect McKinley and to beat Pettigrew, and I did not know which I wanted the worst,' " I think that was the raost striking corapliment that was ever paid to ray Vork in the Senate, I had kept up ray attacks upon the plutocracy until their spokes- raan was as anxious to defeat rae as he was to elect a president. I sent thousands of copies of the following letter to the voters of South Dakota in my carapaign for re-election to the United States Senate in 1900 : "Sioux Falls, S. D,, July 24, 1900. "Dear Sir: "I enclose herewith a copy of the platforra adopted at Kansas City, It is a new Declaration of Indepen dence, It is the platforra upon which I am running for re-election to the United States Senate. I have been twice elected to the Senate from South Dakota, receiving the united support of the Republicans of the state, and in both instances also of very many of the Democrats and Populists. "I ara now a candidate for re-election upon the plat forra which I enclose, because I think it embraces the best settlement of the great principles involved in the 306 coming political contest that I have seen. I am not therefore a candidate for re-election as a Republican, for the reason that I believe this contest is not one be tween political parties, but is a contest between those who wish to preserve Republican institutions in this country and prevent the Republic from becoming an aristocracy. It is a battle between the Man and the Dollar; between concentrated wealth in the hands of a few people and the great mass of the people who have produced the wealth, but who are unable, owing to a pernicious systera of transportation and corabination of capital, to enjoy that which they produce. "The Republican party has been captured by the evil eleraents, by the great transportation companies, the great money trusts, and the great corabinations of capi tal which have gained control of our manufacturing industries. It is therefore for the interest of the Re publican party to perpetuate that legislation which has produced the condition in regard to the distribution of wealth in this country, against which I protest, "I have not changed my views upon these great issues since I ceased to act with the Republican party polit ically. My votes in the Senate on all these questions have been the sarae during the past four years as they were during the previous seven years. If I had changed ray position on these questions ray enemies would have ample proof of the fact in the Record of the Senate; but the votes which I have recorded show that ray position has not been changed, but the position of the Republican party has changed corapletely — so rauch so that, when I offered an araendraent to the last Repub lican Tariff Bill, refusing protection to articles con trolled by the trusts unless they dissolved the trusts, and allowed free corapetitlon within our own country, every Republican Senator voted against it and defeated the raeasure. "When the War Revenue Bill, to pay the expenses of carrying on the war with Spain, was under considera tion, I offered an amendraent to tax the products of the 307 trusts as a means of raising revenue, or corapelling the dissolution of the trusts, and every Republican Senator voted against ray araendment. "We offered an araendment to levy a tax upon in comes to support our armies in the contest with Spain, and all the Republican raembers of the Senate voted against it, and the bill was so fraraed as to lay the entire burden of taxation upon the individual-— upon consumption — so that the poor man would pay just as much as the man of enorraous wealth. "Against this unequal and unfair distribution of the burdens of taxation I protested, on the ground that it tended to the unequal distribution of wealth; and that where the wealth of a country was once gathered into the hands of a few raen the raanhood of the raasses was destroyed and the institutions of our country endan gered. But the Republican party, controlled by evil influences and headed by Mark Hanna, persisted in their policy, which has made it impossible for rae to act with thera politically, "I left the Republican party in 1896 for the reason that I felt that the party had left the side of the people in its abandonraent of biraetallisra; but, above all, be cause of the fact that it omitted from its platforra at St, Louis all allusion whatever to the trusts. Since that tirae, its course has been raore and raore in the direction of plutocracy, raore and more in the direction of the govemment of the few to the disregard of the many, and their interests ; and it has culminated in an effort to conquer people living in the tropics, and to annex to this country territory that will never be or ganized into states, and in the establishment of a colo nial policy in violation of the Constitution of the United States and of the Declaration of Independence, and of every theory of Government we have advocated as a people. ' "I believe that colonial possessions mean' a standing army of great proportions, and a vast horde of office holders serving a long distance frora home, governing 308 an unwilling people, which must result in constant con flict, and end in the curtailraent of the right to vote araong our own people, and a suppression of all protest by the arraed forces asserabled and equipped in the flrst instance for the purpose of conquering these distant possessions. "Under these circumstances, no raatter what raay be the consequences to rae personally, I feel it ray duty to do everything in ray power to overthrow at the polls the dorainion and control of the Republican party, and thus restore this country in letter and in spirit back to the principles and doctrines of its founders, so that it raay continue to be an example to all people who believe in the doctrine of self-governraent, and that governraentg derive their just powers frora the consent of the governed. "I thus write you this long letter, hoping to make ray own position clear, and stiraulate you to greater activity and effort in the coraing carapaign. I should like very rauch to hear frora you on this subject, "Yours truly, "R, F, PETTIGREW," 309 XXII. Hawaii — ^A Revolution to Order During the years of ray acquaintance with Araer ican public life, I have seen the center of power raove from Washington to Wall Street. When I flrst entered the Senate they talked of the "invisible erapire of busi ness." During the nineties that empire ceased to be invisible — it came out in the open, and through its rep resentatives and attorneys on the floor of the Senate and the House it fought its battles for privilege and plunder — fought thera and won them. The plutocracy established its right to plunder the people of the United States. Through the banks, the railroads and the trusts, it robbed them openly and sham-elessly, and those few of us who fought on the side of the people and against these masters of privi lege, were driven out of public life for our pains. Laws airaed to proraote the general welfare were not so much as considered in Washington. The work of Congress was, first and last, to protect and safeguard the inter ests of big business. I saw this thing and faced it. I fought it in the Senate during twelve years with all the strength and ability at ray coraraand, and when those twelve years of struggle were ended, the business power was im- raeasurably stronger than it was when they began. The real strength of big business carae over the issue of iraperialisra. The right to plunder at home had been pretty firraly established by the tirae the Sherraan Law was passed in 1890. The right to plunder abroad had never corae up for serious consideration. Frora 1870 to 1890 the business interests of the United States were busy building railroads, opening raines and establishing factories. Even as late as the nineties there were only a few of the business groups that were looking outside the country for a chance to exploit and rob. Araong these few were the sugar raen. The United States has never provided its own sugar supply. The sugar business is a profitable one, how- 310 ever, and the American business raen raade up their minds that if profits were to be made in sugar they might as well have them. The fight turned on Hawaii, The Hawaiian Islands have a climate well adapted to sugar-growing and the soil, a deep volcanic ash over lying boulders, is the best sugar-cane soil in the world. In Hawaii they raise eight tons of sugar to the acre, Hawaii was owned by foreign capitalists among whom the Americans were the largest single holders, I had an investigation made when I was in Hawaii of the books of the interior department, for their law required that every sugar corporation should file a re port giving the naraes of the stockholders. All of the corporations did not coraply with the law, but several did coraply. I had their reports studied and frora thera it appeared that the holdings in sugar corporations, ar ranged by nationality, were: Araerican, $3,225,750; British, $1,642,350; Hawaiian, $792,000; Gerraan, $458,700; and Portuguese, $1,200, raaking a total of $6,120,000. In short, more than half of the sugar plantation values were American owned. The estimates of taxable property in the Islands showed that the Hawaiians, who numbered together 39,504 individuals, owned taxable property to the araount of $8,101,701, while the Araericans, British and Gerraans, 6,768 in number, owned taxable property to the araount of $26,701,908, The "foreigners," while nurabering only one-seventh of the taxpayers, owned more than three-quarters of the taxable wealth in the Islands, Foreign econoraic interests on the Islands were para mount, and it was these interests that fostered the Revolution of 1893. I need not go into this raatter in detail, as I have elaborated on it elsewhere (The Course of Erapire, Chapter V) . Let it suffice to say that the United States Minister, resident at Honolulu, entered into a conspiracy with a few business raen and their representatives for the purpose of overthrowing the 311 native government, and deposing the reigning queen. As a part of this conspiracy, the United States Minister used American marines to protect the conspirators while they organized a governraent, which was irarae diately recognized by the United States Minister. A treaty, based on this disgraceful incident, was sent to the Senate of the United States for ratification on the recoraraendation of President Harrison, and was re ported favorably by the Coramittee on Foreign Rela tions, The report of the Comraittee on Foreign Relations did not tell the facts regarding the overthrowing of the Hawaiian Governraent; neither did the raessage to the President transraitting the treaty give the essential facts, and it was with great difficulty that the facts were obtained. But the infaray of the whole transac tion was finally disclosed and, after a great raany raonths of controversy, the treaty failed to coraraand the two-thirds vote necessary for its ratification. I was the leader of the fight in the Senate against the treaty and its ratification. The question excited wide spread attention. Most of the great newspapers were outspokenly in favor of ratifying the annexation treaty. They filled their colurans with false headlines on the subject, and even resorted to the practice of raaking up press dispatches purported to come from the Islands, Despite all their efforts, however, the treaty could not pass. There is no longer any dispute over the raaterial facts of the Hawaiian Revolution, What were the essential facts behind the revolution that led the United States to raake its first annexation of non-continental territory. There is no longer any serious dispute concerning thera, George W, Merrill, who was our Minister to Hawaii, wrote Mr, Secretary Blaine, Septeraber 7, 1889, as follows : "It is also noticeable that araong the American resi dents here tnere are several who, from personal 312 motives, contemplate with satisfaction periodical dis quietude in this kingdora, hoping that frequent revo lutionary epochs will force the United States Govern ment to make this group a part of its territory and to absorb into its body politic this heterogeneous popula- lation of 80,000, consisting of Chinese, Japanese, Portu guese, native Hawaiians, half-castes, and only about 5,000 of those who raay be properly denorainated the white race. "In order to keep affairs in as much turmoil as possible, baseless ruraors are constantly put in circu lation, raany of which find publication in other coun tries." This was from our minister who was superseded shortly afterward by Mr. Stevens. Mr, Stevens was appointed rainister in October, 1889, Harrison had been elected President, One of the issues of the cam paign was free sugar. The McKinley Act becarae a law August 27, 1890. On August 20, 1891, Mr. Stevens wrote to Mr. Blaine as follows: "The probabilities strongly favor the presumption that a United States warship will not be pressingly necessary in the two or three iraraediate raonths. But as early as the first of December, without fail, the month preceding the election, and for sorae tirae there after, there should be a United States vessel here to render things secure. . . . There are increasing indi cations that the annexation sentiraent is growing araong the business men. The present political situa tion is feverish, and I see no prospect of its being per manently otherwise until these islands become a part of the American Union or a possession of Great Brit ain." Here, then, is our rainister, accredited to a friendly governraent, conteraplating the destruction of that governraent and the annexation of its territory. Fur ther on, in his next dispatch, he asked the State De partraent to keep secret his stateraent in regard to the overthrow of that governraent; and he says in the 313 dispatch that it would be uncorafortable for him if the facts were known in Hawaii. On November 20, 1892, Stevens again writes : "I think it understating the truth to express the opinion that the loss to the owners of the sugar planta tions and mills, etc, and the consequent depreciation of other property by the passage of the McKinley Bill, has not been less than $12,000,000, a large portion of this loss falling on Araericans residing here and in Cali fomia, "Unless sorae positive raeasures of relief be granted, the depreciation of sugar property will go on. . . . "One of two courses seeras to rae absolutely neces sary to be followed, either bold and vigorous raeasures for annexation, or a "customs' union," and ocean cable frora the Californian coast to Honolulu, Pearl Harbor perpetually ceded to the United States, with an implied, but not necessarily stipulated, American protectorate over the islands. I believe the forraer to be the better, that which will prove much the more advantageous to the islands, and the cheapest and least embarrassing in the end for the United States." Here, in 1892, two raonths before the final revolution, our rainister outlines the reason for it and advises an nexation as a reraedy for the situation. This state raent of Minister Stevens is supplied by ample evidence published in the official investigation which President Cleveland caused to be raade of the whole situation. The Araerican Minister had been converted ijito an advocate of the overthrow of the friendly governraent to which he was sent ; and what was done by these con spirators, few in nuraber, having vast wealth — ^fortunes raade absolutely out of the people of the United States in the profit upon sugar? "The Araerican Minister having been secured, the next step was to find an excuse for overthrowing the existing governraent. On the 14th of January, 1893, being Saturday, the Queen took steps to promulgate a new constitution. Pe titions had been received by her signed by two-thirds of 314 all of the voters of the island, protesting against the Constitution of 1887 and asking that a new one be pro- raulgated. The Constitution of 1887 deprived a large per cent of her people of the right to vote for raerabers of the Senate or any voice in the government. The Constitution left the control of the country in the hands of the foreign business raen and the people re sented it. Immediately on the proposition being made to adopt a new Constitution, nine business raen had a raeeting in Sraith's office, Sraith was a lawyer in Honolulu, Later, he becarae an attorney-general of the so-called republic. There they began to plan and plot for the overthrow of the Queen, But, finding that there was opposition to her raoveraent, the Queen abandoned the idea of issuing a new Constitution and, on Monday, January 16, 1893, she issued a statement to that effect. On Saturday, the 14th, a committee of safety cora posed of thirteen raembers had been organized at W, V, Sraith's office. At this raeeting the feeling was ex pressed that this was a good time to get rid of the old regime and provide for annexation to the United States, There was no fear of disorder, no thought that life and property were in danger, Mr, Smith stated that the coraraittee at his office debated whether they would ask the United States to establish a protectorate. They concluded that as the Queen had an armed force it was best to appoint a com mittee to see the United States Minister, and ascertain what he would do. After the meeting, Smith went to see the American Minister and arranged with him as to what should be done if Sraith and his conspirators were arrested. He secured the required assurances and the call for troops was issued. These conspirators then held a public raeeting and Thurston raade sorae lurid reraarks — ^talked about freedom, etc., and about liberty and tyrannical gov ernment—and after his fiery speech they passed the 315 taraest sort of resolutions erabodying their protest against the new Constitution, but said not a word about overthrowing the govemment or establishing a new government. At every step in the proceeding great care was taken to consult the American Minister and to know just what he should do in case the conspirators were ar rested. There was a great sense of fear and appre hension of danger on the part of these thirteen men only. All honest citizens felt safe and secure in life and property. Troops were landed frora the United States gunboat in the harbor, and distributed, not for the purpose of protecting Araericans or Araerican property, but to guard the government building and show the Queen that they were assisting the revolutionists. This was Monday evening. On Tuesday raorning the Coraraittee of Thirteen raet again and signed the proclaraation de claring the establishraent of a new governraent, and about two o'clock started, in two parties on different streets, to go to the governraent buildings, now guarded by United States troops, to read the proclaraation, ac cording to a previously arranged plan with our rain ister. Without a single arraed man they proceeded to the governraent building and, in front of it, within seventy- five yards of the 150 raarines landed frora the United States vessel, they proceeded to read the proclamation declaring that they were the governraent. They, how ever, took the precaution to go in two parties, one party going up one street and the other party another street, so as not to attract attention. They took the precau tion to send one of their nuraber up to see if there were any arraed raen likely to interfere. The proclamation having been read at the govern raent building, guarded by United States troops, the United States Minister proceeded at once to recognize the new governraent. They had not an armed man — they had proceeded to the governraent building where 316 there were clerks and officers of the Hawaiian Govern ment, with not even a policeraan present. They stood up in front of that building within seventy-five yards of the Gatling guns of the marines from an Araerican battleship, and read a paper declaring that they were the governraent. Three-quarters of a raile away the Queen had five hundred raen under arras and,, without waiting, the moraent they read the proclaraation our minister recognized these thirteen raen as the govern ment of Hawaii — without any armed forces whatever, knowing that he had violated international law and violated the precedents followed by all civilized nations, and he undertook to falsify the facts. He claimed that he recognized the governraent after the Queen had surrendered — after the old governraent had given up — after she had abdicated and said that she would subrait her case to Washington, An investi gation of the facts proved that this stateraent is false. After the recognition of this so-called governraent, before the surrender of the Queen or the arraed forces which she had, a delegation was sent to her and she surrendered to the arraed forces of the United States, saying : "I yield to the superior force of the United States of Araerica, whose minister plenipotentiary. His Excel lency John L, Stevens, has caused the United States troops to be landed at Honolulu and declared that he would support the said provisional governraent," To avoid collision and bloodshed, she subraitted the question to the Govemment at Washington, surrender ing to the armed forces of the United States ; surren dering after Stevens had recognized the so-called govemment; surrendering because she was told that the Governraent of the United States, whose people she had always been taught to reverence and respect, would do justice and restore her to the throne, and they cited a precedent in Hawaiian history as a justification for this claira: "On the 10th of February, 1843, the British frigate 317 Carrysfort, coraraanded by Lord George Paulet, ar rived at Honolulu and showed displeasure by withhold ing the usual salutes, "He proceeded at once to take the King prisoner and raake such deraands upon him that he surrendered his crown on condition that the question would be sub mitted to the British Governraent," This History of the Hawaiian People says: "Under the circumstances the King resolved to bear it no longer, 'I will not die piecemeal,' said he; 'they may cut off my head at once. Let thera take what they please; I will give no more,' "Dr, Judd (he was an American) advised hira to forestall the intended seizure of the islands by a tempo rary cession to Lord Paulet, pending an appeal to the British Government, The event proved the wisdom of this advice, "On the next day the subject was discussed by the King and his council, and preliminaries were arranged with Lord Paulet for the cession. On the raorning of the 25th the King and premier signed a provisional cession of the islands to Lord George Paulet, 'subject to the decision of the British Government after the receipt of full inforraation frora both parties,' "At 3 o'clock p, ra,, February 25th, the King, stand ing on the raraparts of the fort, read a brief and elo quent address to his people," Then they subraitted the question to Great Britain, and the English Governraent proraptly restored the King to his throne, refusing to accept an usurpation of that sort. So, in this case, the Queen, having in mind this historic incident, said: "I, Liliuokalani, by the grace of God and under the Constitution of the Hawaiian Kingdom, Queen, do here by solemnly protest against any and all acts done against rayself and constitutional Governraent of the Hawaiian Kingdora by certain persons claiming to have established a provisional govemment of and for this kingdom, 318 "That I yield to the superior force of the United States of Araerica, whose rainister plenipotentiary. His Excellency John L, Stevens, has caused United States troops to be landed at Honolulu and declared that he would support the said provisional governraent, "Now, to avoid collision of arraed forces and perhaps the loss of life, I do, under this protest, and irapelled by said force, yield ray authority until such tirae as the Governraent of the United States shall, upon the facts being presented to it, undo the actions of its representa tives and reinstate me in the authority which I claim as the constitutional sovereign of the Hawaiian Islands," When Kameharaeha, in 1843, surrendered and ceded the islands to the British adrairal, because he could not resist the force of an arraed ship of war, the English (Government promptly repudiated the act and restored him to the throne; and when Queen Liliuokalani, de prived of her authority by the armed forces of the United States, proposed to submit the question to this Governraent, she had good reason to suppose that the great republic would preserve its honor and dignity araong the nations of the world and restore her to the throne. Yet, in the face of these facts, the treaty raade with this revolutionary governraent of business men was passed by the Congress of the United States ahd this country took title to Hawaii against the will of the majority of the people in that country. On January 31st, thirteen days after the revolution. President Dole wrote Mr, Stevens that his government could not raaintain itself, and asked for the protection of the United States troops, Stevens coraplied, and our flag was put up, over the public buildings, and re mained up until April 1, 1893, when Mr. Blount ordered it taken down. If there was a governraent that had been able to create and establish itself and to raain tain itself with an arraed force, why was it that thir teen days afterwards they begged of Mr. Stevens, adraitting their irapotency to maintain their govem ment, to again land the troops of the United States 319 and put the United States flag upon the buildings? This was done on the 31st of January, and the flag reraained there sixty days. The flag went up in dis honor. When it was raised under such circurastances it was a disgrace to the Republic. During the sixty days while our flag reraained upon this building, the provisional governraent brought in foreign raercenaries frora San Francisco, collected an arraed force, gathered up every gun upon the islands, passed the strictest penal laws against the iraportation of guns, and made it a criminal and penal offense to have a gun. The so-called republic was surrounded by arraed men. Back and forth in front of the public offices marched raen with Winchester rifles. The new governraent proceeded rapidly to enact laws. It consisted, not of a legislative body, but of nineteen men, self-constituted, supported by our armed forces. They provided that no one should be eligible to be a senator, a representative or a juror until he should have subscribed to the following oath or affirraation : "I do soleranly swear (or affirm), in the presence of Almighty God, that I will support the constitution, laws and governraent of the Republic of Hawaii; and will not, either directly or indirectly, encourage or as sist in the restoration or establishraent of a monarchial forra of governraent in the Hawaiian Islands." On the 31st an act concerning seditious offenses was published. This law made it an offense to speak, write or print anything which raight bring hatred or con terapt against the government. On the same day was published a law prohibiting the iraportation of firearms and aramunition without first obtaining the perraission of the govemraent. On the same day an act relating to contempts became law : "Any person who shall publish any false report of the proceedings of said council, or insulting coraraent upon the sarae," etc, was liable to iraprisonraent for thirty days. What did this revolutionary governraent do? It set up a republic ! For nearly a year after the governraent 320 was created they had no constitution. But after a year the ninet^n concluded to organize the Republic of Ha waii. Such a republic was never known to history before. An election was called for a constitutional con vention. The call provided that the people who would take an oath to support their governraent raight elect eighteen delegates to the constitutional convention. The revolutionists, nineteen of them, constituted theraselves members of the convention without any election, mak ing the election of delegates absolutely a farce. What kind of a constitution did they adopt? Their constitu tion provided for ah oligarchy. It provided that the governraent should consist of Mr, Dole as president- he was naraed in the constitution — who was to hold office until the year 1900, a senate of fifteen raerabers and a house of representatives of fifteen raerabers, and the senate and house sitting together were to elect Mr. Dole's successor president after the year 1900, but no successor was to be elected unless he received a raa jority of the senate; and, if no successor was elected. Dole continued to hold the office. Under this constitution no person could vote for a senator unless he was worth $3,000 in personal prop erty or $1,500 in real estate, according to the last as- sessraent for taxation, or unless he had an incorae of $600 a year These provisions shut out everybody in the Hawaiian Islands from the right of suffrage except the sugar planters and their fellow business and professional men. Such a qualification would have disfranchised ninety per cent of the voters of the United States, The constitution created a council of state, five of whom were to be selected by the president, five by the senate and five by the house of representatives; and this very constitution provided that a raajority of the council could do business. Then it provided that they could raake laws and appropriations when the legisla ture was not in session, and that their laws and their 321 acts and their appropriations should hold good until the last day of the session of the legislature. They put into the constitution a provision for a union, coraraercial or political, with the United States, Did that come frora the people ? They had no voice in it. The constitution was not endorsed by the people or submitted to the people. After this self-constituted convention had adopted its constitution, it declared the document the constitution of the Republic of Hawaii, and never subraitted it to a vote at all. And yet it was from this gang of sugar-raising conspirators that we took the islands. The annexation of Hawaii was the first big victory won by the business interests in their carapaign to plunder outsi(ie of the United States, It was the prece dent that they needed — the precedent that raade easy the annexation of Porto Rico, the Platt Araendraent to the Cuban Treaty, the conquest of the Philippines and the other imperialistic infaraies that have sullied the good narae of the United States during the past twenty years. When I entered this fight against the annexation of Hawaii, I had a vague irapression of the power that could be exerted by big business. The fight lasted five years, and when it was ended, T lad a clear, full kiiowledge of the n:ethods and the strength of the American plutocracy, I entered the fight, knowing that it would be a hard one, I left it, wondering that we had been able to hold -off the interests for as raany as five years. 322 XXIII. -Vnti-Imperi.vlism The Senate debates over the annexation of Hawaii had roused raillions of Americans to the iraperial raen ace that was threatening the life of the Republic. Between 1893, when the revolution pccurred in Hawaii, and 1898, when the annexation of the islands was fin ally approved under the stress of the war frenzy that possessed the country, I carried on alraost a continual fight against the policy of those who were advocating annexation. The friends of the treaty were not able, during those five years, to secure anything like the necessary two-thirds of the Senate, and the fight against annexation might have been won but for the Spanish-American War with its tidal wave of patri otic frenzy. It was on July 7, 1898, after the war had been in progress for more than two months, and after the public attention had been turned frora the probleras of iraperialism to the celebration of victory, that Hawaii was annexed, and even then the imperialists still lacked their two-thirds of the Senators, so that it was neces sary to provide for annexation by a joint resolution which required only a majority of both Houses of Con gress, With the end of the war there was a swing back toward sanity and a vigorous protest rose frora all parts oi. the country. Millions of the plain people were eager to stera the tide of iraperialisra that was running so strongly in favor of the big business interests and their policies. As one raeans of checking iraperialism an Anti- Iraperialist League was forraed about 1899. The league had a large popular raerabership — about half a raillion, I believe — held raass meetings and conferences in all parts of the country — adopted a platforra that de nounced the iraperialisra of the McKinley adrainistra tion, and pledged itself to enter politics and fight the 323 issue through to a finish in every voting precinct in the United States. Pursuant to this prograra, a conference was called at the Plaza Hotel in New York, for the 6th of Janu ary, 1900. The national elections were due in Novem ber of the same year ; it seemed certain that McKinley would seek a second presidential terra on his record as an advocate of annexation and conquest; there was, therefore, an excellent chance to make a clear issue and to organize a large enough sentiment within the ranks of both old parties to administer a severe rebuke to the business interests that were behind the Re publican party and its imperial policies. The meeting of January 6th turned out to be an eventful one. Andrew Carnegie was present, as well as Carl Schurz, ex-Senator Henderson, Brisbane Wal ker, Gamaliel Bradford, Edward Burrett Smith, Prof. Franklin H. Giddings, and about ten others. All were were prominent raen, and all were radically opposed to any moveraent that looked towards the holding of colonies against the will of the inhabitants and in vio lation of the principles enunciated in the Constitution and the Declaration of Independence. I was the only Senator or raeraber of the House present at this meet ing. We had our meals brought to us, and talked all day. Finally we decided that we would organize •&. third political party. It was agreed by Carnegie and Schurz and Hender son and by Prof. Giddings that the two old political parties — Democratic and Republican — were just alike; that as parties they were simply the servants of the great combinations and corporations who were the real rulers of the country; that it was foolish to depend upon either of thera to oppose a policy which was being pushed by their financial backers and, therefore, it was decided to start a third party and to organize it in every county in the United .States, 324 Mr, Carnegie, in a vigorous speech, urged the neces sity of a new political party for the purpose of oppos ing the imperial policy of both of the old parties, and said that he would give as much money, dollar for dol lar, as all the rest of us could raise toward proraoting the carapaign. As a pledge of good faith, he subscribed twenty-five thousand dollars on the spot. The others present subscribed a like araount, elected Edward Burrett Sraith, of Chicago, chairman of the political organization which they were forming, and authorized hira, in consultation with the corarait tee which had been appointed, to take charge of the carapaign, to secure an organization in every county in the United States, and to have national coraraittee- men from every state, Carnegie paid in $15,000 of the $25,000 he had sub scribed. The others paid in the whole of their sub scription ($25,000) and active work was begun within a month. Shortly after the New York meeting Car negie came to my house in Washington, talked about the whole matter with me, and expressed great earnest ness and anxiety about the success of the raoveraent, I had every reason to believe that Carnegie raeant to stand by the raoveraent, and I felt convinced that his financial position and influence would enable us to raise a sufficient araount of raoney to carry on an effective campaign against McKinley and his imperialist backers. I had known Andrew Carnegie very well for many years, I first became intimately acquainted with him during the contest in the Senate over the annexation of the Hawaiian Islands, I led the opposition to the annexation of those islands chiefly because the annex ation would mean that we were starting upon a colonial system, acquiring a territory inhabited by a people not suited to our form of governraent, and that such a move would be the first step in the course of erapire, Carnegie was of the same view, and, during the con- 325 test, often came to my house in Washington and dis cussed the question with me. At the sarae tirae, I was investigating the question of the distribution of wealth in the United States, and I discussed the raatter with him and, finally, made a speech in the Senate on that question, Carnegie agreed with me that the concentration of wealth in a few hands and the move for imperialism were both serious menaces to the American people and their liberties, Carnegie was not then so enormously rich as he after wards becarae, Carnegie was a rich raan even in 1900, but he had liberal views, I had known him for years, and had known during all of that time that he was vigorously opposed to imperialisra. His support of the anti-irape- rialist raoveraent, therefore, seeraed to represent a very substantial part of the foundation upon which the raoveraent was built. The story of our plans was soon noised abroad, and it becarae known that an effort was being made to organize a third political party with the backing of Andrew Carnegie, About the middle of February I received a letter from Mr, Smith urging me to come to New York, I went at once, and was told by Mr, Sraith that Carnegie had refused to pay in any raore raoney after his first fifteen thousand dollars, and that he had refused to have anything to do with the raem bers of the coraraittee, although they had raade re peated efforts to see hira and to get into coraraunica tion with him. In view of my acquaintance with Carnegie, Mr, Sraith thought that I was the best per son to see hira and ascertain why he had abandoned the project about which he had been so enthusiastic only a raonth before, I called upon Mr, Carnegie, but he refused to see me, I then went down to Wall Street to see some friends and acquaintances who were interested in the business side of national affairs, and to inquire why 326 Carnegie had abandoned his effort to organize a third party, and had gone back on the whole anti-iraperialist position of which he was an acknowledged advocate, I was not long in discovering the real difficulty. The steel trust had been talked about and planned by the great capitalistic combinations of this country, and Carnegie was one of the parties to the negotiations. The matter had gone so far that the following proposi tions were agreed upon: First, they were to organize a corporation with one billion dollars of stock, none of which was to be paid for; second, they were to issue four hundred million dollars of bonds to pay for the properties and furnish working capital. Carnegie was to receive one hundred and sixty millions of this four hundred millions of bonds and, in addition, a like araount of the stock, and he was, of course, very an.xious to consuraraate this deal which was of enor raous financial advantage to hira. No sooner was it noised abroad that Carnegie was actively engaged in organizing a third political party, which would oppose McKinley and his iraperialist pol icy, than he was waited on by a committee, with the ultimatum that they would go no further with the organization of the steel trust unless he abandoned his third party activities and stopped his contributions towards the raoveraent. The raerabers of the corarait tee told hira that it was absolutely necessary that they should have a protective tariff in order to justify the organization of the steel trust ; that in order to have a tariff satisfactory to thera, McKinley raust be elected ; that the organization of a third party would jeopardize his election, and, consequently, the tariff, and as they were going to capitalize the tariff by the issue of stock for which they paid nothing, they would have nothing further to do with the steel trust if Carnegie insisted upon pursuing the political course he had outlined. The issue was a very clear one — political principles on one side and iraraense financial profits on the other. 327 After weighing the raatter, Carnegie abandoned the whole third party raoveraent and went in for the elec tion of McKinley. Subsequently, the steel trust organization was com pleted and Carnegie received his quota of the bonds and stock of the combination. He then retired from active business and began to build raonuraents to him self all over the world. The anti-imperialist moveraent, which had depended so largely upon Carnegie's support, worked on fdr a tirae, hampered by a shortage of funds and a lack of effective interest in influential quarters. Its _ efforts were virtually nullified by Carnegie's withdrawal and the lukewarra support frora other sources. The Repub licans won the election. The steel trust secured the tariff it needed. The combination was perfected. The imperial policy of the preceding four years was con firraed by the election, and the hopes of those who had worked so loyally against the change of national policy were destroyed. Undoubtedly we raade a raistake to pin so much faith on the actions of one man — particularly in view of his business connections. On the other hand, his friend ship, his deterraination and his apparent sincerity gave us every reason to believe that he could be relied upon to see the raoveraent through. We had raade the issue — in Congress and out. We had set the Declaration of Independence against the conquest of the Philippines and the Constitution against the Hawaiian "Treaty, We had placed the rights of raan against the interests of the plutocarcy. We had done everything that huraan ingenuity and energy and foresight could do to raake our fight effec tive, and we had lost out. McKinley, the steel trust, big business and iraperialism had won. 328 XXIV. Criminal .\ggression in the Philippines The annexation of Hawaii and the Spanish Treaty, which provided for the acquisition by the United States of Porto Rico, Guam and the Philippines, started this country definitely on the course of erapire. Frora that point — ^the years 1898 and 1899 — we were coraraitted to an imperial policy. "Iraperial policy" is a phrase with a pleasant sound and a disraal echo — dismal for the rights of man and woraen. The raoraent we adopted an imperial policy we coraraitted ourselves to certain lines of national conduct that are as far frora the principles of the Declaration of Independence as the east is frora the west. In our new possessions it was necessary: First, to beat into subraission any of the native pop ulation which displays a spirit of independence ; Second, to extend the imperial boundaries in order to have more opportunity for exploitation; Third, to establish measures that will insure the ef fective exploitation of the native population. Our first imperial duty — that of beating the native population into submission — was presented only in the Philippines. The Cubans were norainally self-govern ing; the inhabitants of Porto Rico had welcoraed the Araericans as saviors. The Filipinos had followed the sarae course at first, but, when they found that they were not to be free, they turned about and fought as stubbornly for their inde pendence of Araerican rule as they had fought during the preceding century for their independence of Span ish rule. It was the strength of the American army, not the justice of the Araerican cause, that reduced the Filipinos to subraission. Perhaps nowhere in Araerican history is there a rec ord so black as that which describes our dealings with the Filipinos. Before the seizure of the islands by Adrairal Dewey, McKinley had taken a high raoral stand on the subject of forcible annexation. In his 329 message to Congress (April 11, 1898) he had said: "I .speak not of forcible annexation, for that cannot be thought of. That, by our code of morals, would be crirainal aggression." So it would, but we practiced it toward the Ulipinos with the sarae zest that the Brit ish have displayed in India or the Japanese in Korea. When we decided to attack Spain, when Dewey was ordered to sail from Hongkong and to destroy the Spanish fleet, a rebellion was going on in the Philip pine Islands. • The inhabitants of those islands were trying to throw off the Spanish yoke. Knowing that at Singapore there was a raan, the raost capable araong the Filipinos, who had led a forraer revolt, our officers in the East induced this raan to go back to Manila and organize the insurgent forces. Aguinaldo arrived on the 17th day of May, 1898. He iraraediately organized the insurgent forces. He purchased arras in Hong kong. Admiral Dewey furnished him with arras taken from the Spanish forces, and he attacked the Spanish garrisons all over the province of Cavite and secured arms from his prisoners. He pursued this course dur ing the summer of 1898, until he had captured the entire island of Luzon except two Spanish garrisons — very small ones — and before winter he captured those. Dewey, in his report, says his progress was wonderful. He took 9,000 prisoners. After having captured the entire island, he set up a governraent, which was a peaceful governraent, a governraent suitable to those people, a governraent which protected life and property throughout the entire area of that country. He also captured the Southern Islands, the Island of Panay, of Cebu, and Negros, and organized govemraents there. He asserabled an array of 30,000 raen and surrounded Manila. His array was intrenched. He invested the city on the land side while our navy blockaded the port on the ocean side. We acted in absolute concert with each other, consulted together, and, when Manila was flnally taken, our troops landed, asking the insurgents 330 to give up about a quarter of a mile of their trenches. They marched out and allowed our troops to occupy a portion of their works. They believed that they were to act in concert with us in the attack upon Manila. When the attack was ordered their troops marched into the city along with ours. They took the principal suburb of Manila, We took and occupied the walled city. When they came to the walled city, which con tained less than one-fifth oi the population of the city of Manila, they found our bayonets turned against them. They were told that they could not enter. They had lost thousands of lives in their contest with Spain ; they were in possession of that entire country, and yet, although in the assault upon the city they had lost more men than we did, they were denied admittance to the city, and they yielded and occupied the suburbs for sorae tirae. Finally, we requested that they retire frora the sub urbs and they retired, Aguinaldo asked that he raight be perraitted to retire slowly, as it was difficult to govern his people and convince thera that it was right that they should surrender possession of territory which they had conquered and for which many of their comrades had laid down their lives. He also asked that, in case we made a treaty with Spain, the territory which he had conquered should be restored to hira ; and this we refused. So we did -not conquer the islands frora Spain, for Spain had been conquered and driven out by the governraent of Aguinaldo. We had siraply helped to take the city of Manila. Therefore, we took no title by conquest from Spain, for, at the time of making the treaty with Spain, we had not conquered any territory frora her. We did not acquire title by purchase, because title by purchase required delivery of possession and, as Spain was not in possession, she could not and did not deliver the islands to us. By what right are we there ? By no right in raorals of law ; by no right that can be defended before God or raan. We are there as conquer- 331 ors; we are there as arraed banditti that would enter your preraises in daytirae, and we have no more right to be there than the bandit has to enter and despoil your horae. If our title is by conquest, then it is as yet incom plete. If our title is by conquest, we did not acquire it frora Spain, and it is nearly two years since the war with Spain has ceased, and yet the conquest is in prog ress. In October Aguinaldo was again asked to give up raore territory. He was again asked to retire his troops beyond not only the city of Manila, but the adjoining towns. Then he called the attention of General Otis to the fact that the towns which Otis desired hira to surrender were not a part of Manila — you will find it on pages 20 and 21 of General Otis' report. General Otis said, "You are right; the territory which I now demand I cannot find as erabraced in the city of Manila or its suburbs, but," he said, "that makes no difference; I insist on the possession of the territory anyway," So our lines were pushed out constantly, creating irrita tion and bad feeling. Finally Dewey seized the ships of the Filipinos in the harbor. Was not that an act of war? Why talk longer about who comraenced the war in the Phihp- pines, when in October we seized the vessels of our allies — and they were vessels of war — disraissed the raen who raanned them, took down the Filipino flag, and reraoved it frora the sea? On the 24th of Noveraber, Otis again wrote to Agui naldo, saying that he raust retire beyond the village of Santa Mesa, and that if he did not he would attack him. On the 21st of Deceraber the President sent a proclaraation to be published in the Philippines, telling the inhabitants that the United States has assuraed sovereignty over the islands — a proclamation which was a clear declaration of war — a declaration that we would extend our railitary control, then existing in 332 the city of Manila, throughout the entire area of the group. This proclamation was published in the Philippines on the 4th of January, 1899, We seized their ships in October; we drove them beyond the territorial liraits of the city of Manila — the only country we had occu pied or had any right to occupy under the protocol with Spain; we, on the 4th day of February, attacked their forces and fired the first and second shots, and killed three of their people. After that, on the 5th day of February, the day after hostilities were inaugurated, Aguinaldo asked to have hostilities cease, and said that he had no notion of raaking an attack on our people and had not done so. The reply was that fighting hav ing once coraraenced, it should go on to the grira end. Under these circumstances, we are precluded from taking any other position than that we betrayed and attacked an ally; that we conquered and reduced to subjection an unwilling people; that because we are mighty and because our array is strong enough to de stroy the independence of an ally, we have deliberately taken possession of territory that was desired by our big business raen for their enrichraent. By our "code of raorals" our very presence in the Philippines, after the natives had established their own governraent, was an offense. By the sarae code, our greatest crirae in the Philippines was the denial by the Washington administration, backed by the army and navy, of the right of self-governraent. The Filipinos not only desired self-governraent, but they actually established it before the Araerican army began the conquest of the islands. One of Lincoln's most faraous reraarks is as follows : "Those who deny freedora to others deserve it not for theraselves ; and under the rule of a just God cannot long retain it," I believe that is true, I believe the reflex action upon our own people of the conquest of other peoples and their government, against their will, has undermined 333 the free institutions of this country, and has already resulted in the destruction of the republic. President McKinley urged the conquest of the Philip pines because he said they were not fit for self-govern raent, I believe that there are no people fit for any other forra of governraent, Govemraents are insti tuted, not bestowed, and therefore derive their just powers from the consent of the governed. Any nation of people is capable of maintaining as good a governraent as they are entitled to have. When people can raaintain a better governraent they will evolve it. It is irapossible to give them a better governraent than they can maintain for themselves, A forra of govemraent will be as good as the average of the individuals coraposing the coraraunity are willing to have. The American In dians maintained a government and, for thera, a better one than we have been able to bestow upon them, Tho Esquimeaux in the arctic region maintain a gov ernment of their own suited to their condition and their circurastances, and it is a better governraent than any body else can give thera. Would their condition be im proved by sending thera foreign governors and a for eign council to enact laws and direct their course and method in life afid to guide thera in their civic and civil affairs? So it is with every other people the world around. There is nothing in the history of the colonies of the so-called Christian nations of the world to en courage the idea that we can give to this people a better governraent than they can maintain by them selves. The old doctrine of the divine right of kings, of the hereditary right to rule, is a doctrine that we Araeri cans disputed and controverted when we established our governraent, and when we announced the doctrine of the Declaration of Independence, So proud have we been of that discovery that each year we have cele brated the birth into the world of a new theory, a new doctrine with regard to govemraents ; and four hundred 334 constitutions have been fraraed after ours. So power ful has been our exaraple throughout the world that nation after nation, struggling to be free, has adopted our forra of governraent. No nation, no people, in all tirae and in all history ever impressed such a powerful influence upon the huraan race as this republic, and for this reason alone. Erapires have been established; since history began a trail of blood has been drawn across the world, and a vast aggregation of people has been brought under the rule of an emperor or monarch, but no people in the history of the world has ever produced such a powerful effect for good upon the huraan race as this great re public, and siraply because of the doctrine laid down by our forefathers in the Declaration of Independence. Is it an old doctrine that all govemraents derive their just powers frora the consent of the governed? Sorae have said that it was a nursey rhyrae sung around the cradle of the republic. The doctrine is new. It was announced little raore than a century ago, a day in the birth and life of nations, and yet this great republic deliberately abandoned it for the old doctrine and the old theory and the old idea of selfishness, Lincoln, in his speech at Springfield on June 26, 1857, thus defined his notions of the Declaration of Inde pendence : "In those days our Declaration of Independence was held sacred by all and thought to include all ; but now, to aid in raaking the bondage of the negro universal and eternal, it is assailed and sneered at, and construed, and hawked at, and torn, till, if its fraraers could rise from their graves, they could not at all recognize it. All the powers of earth seem rapidly corabining against hira, raararaon is after hira, abition follows, philoso phy follows, and the theology ig fast joining the cry, , , , "I think the authors of that notable instruraent in tended to include all raen; they did not raean to say all were equal in color, size, intellect, raoral develop- 335 ment or social capacity. They defined with tolerable distinctness in what respects they did consider all raen created equal — equal with "certain inalienable rights, among which are life, liberty and the pursuit of happi ness," This they said, and this they meant. They did not mean to assert the obvious untruth that all were actually then enjoying that equality, not yet that they were about to confer it immediately upon them. In fact, they had no power to confer such a boon. They raeant siraply to declare the right, so that the enforce raent of it might follow as fast as circumstances should permit, , "They meant to set up a standard maxim for free society, which should be farailiar to all, and revered by all, constantly looked to, constantly labored for, and, even though never perfectly attained, constantly ap- proxiraated, and thereby constantly spreading and deepening its influence and augraenting the happiness and value of life to all people of all colors everywhere. The assertion that "all raen are created equal" was of no practical use in effecting our separation from Great Britain, and it was placed in the Declaration not for that, but for future use. Its authors raeant it to be as, thank God, it now is proving itself, a sturabling block to all those who, in after tiraes, raight seek to tum a free people back into the hateful paths of despotisra. They knew the proneness of prosperity to breed tyrants, and they raeant that when such should reappear in this fair land and coraraence their vocation they should flnd left for thera at least one hard nut to crack," It seems to rae that Lincoln, with his prophetic vision, must have foreseen this day when prosperity, breeding tyrants, should undertake to declare that the Declaration of Independence no longer applies to any body but the people whora we decide are capable of self-governraent. The holding of tropical countries, the conquest of unwilling people, their retention in subjugation by a standing army, means of necessity not a republic where 336 all the people raust be consulted, but a despotism where the will of one raan can raarch arraies, declare war and act with great rapidity, A republic is naturally slow in action, because the people raust be considered and raust be consulted. We took on raany of the serablances of raonarchy and of iraperialisra during the McKinley adrainistration — concealment of facts frora the people, denial of news and inforraation, no knowledge of what is going on, no announceraent of policy and purpose; and the excuse for it all was that if we should allow the people to know the facts there was danger of creating disapproval of the course of our raonarch, and if the eneray should secure these facts it would be of sorae assistance to thera. This is necessary in a monarchy. Press censor ship too is a necessary adjunct of iraperialisra — one of the things our forefathers would not have tolerated for a day. And yet our people are becoraing so nurab that they ai'e willing to accept it, and even criticize raen who protest. We' annexed the Philippines forcibly. That, accor ding to the principles laid down in the Declaration of Independence, is crirainal aggression. We departed frora the foundation principles of this country ; violated its raost sacred obligations to the world, and pursued the sarae brutal, unjustified policy that Great Britain has pursued wherever her conquering arraies have mowed down naked savages with raachine guns. 337 XXV Imperialis.m at Work The story of our criminal aggression in the Philip pines makes bad reading for the liberty-loving Araeri can, but it is not the only shameful page in American iraperial history — far from it. The United States has been following the course of empire for many a year. Since the days when the white raan first came into con tact with the American Indians, the English-speaking people of North America, after the example of their cousins across the water, have been robbing weaker nations of their property and calling it civilization. Our first aggressive war after the Revolution, which made us a nation, was the war in 1846 with Mexico. We invaded Mexico without any provocation and stole from Mexico half her territory and annexed it to the United States. General Grant, in his Meraoirs, writes: "The occupation and annexation of Texas were, from the inception of the raoveraent to its final culraihation, to acquire territory out of which slave states raight be forraed for the Araerican slave-holders. Even if the annexation of Texas could be justified, the raanner in which the subsequent war was forced upon Mexico could not." (Vol. 1, p. 33.) At another point Grant holds that "the war was one of conquest in the interest of an institution." (Vol. 1, p. 115.) Again he states : "It was an instance of a re public following the bad example of European monar chies in not considering justice in their desire to ac quire additional territory." (Vol. 1, p. 32.) These are the sentiraents of a raan who was an officer in the Araerican array that conquered Mexico and who later distinguished hiraself in the Civil War, Abraham Lincoln, in the House of Representatives, voted against and denounced the war with Mexico as a great wrong, (See his speech in the House of Repre sentatives, January 12, 1848,) Later in the same year, in a letter to J, M, Peck, Washington, May 21, 1848 338 (Coraplete Works, N, Y, Century Corapany, 1894, Vol, 1, pp, 120-122), he writes: "It is a fact that the United States array, in raarch ing to the Rio Grande, raarched into a peaceful Mexican settleraent, and frightened the inhabitants away frora their horaes and their growing crops. It is a fact that Fort Brown, opposite Mataraoras, was built by that array within a Mexican cotton field, , , , It is a fact that when the Mexicans captured Captain Thornton and his coraraand they captured them within another Mexican cotton field," We went into Mexico because we had taken a fancy to some of Mexico's territory. After a war that lasted two years we helped ourselves to nearly nine hundred thousand square miles of land. That was the first great military triuraph of the American imperialists. Our next performance was the annexation of the Hawaiian Islands, and this was closely followed by the conquest of the Philippines, This robbery did not inure to the benefit of the laboring people of the United States, but exclusively to the advantage of the exploit ing speculators and plunderers. The Mexican War occurred raore than seventy years ago. Between that tirae and the Spanish War exactly fifty years elapsed without a single act of aggression or a single war of conquest waged by the United States, Those were the years during which the slave oligarchy of the South was replaced by the power of an exploiting plutocracy of the North — the years that saw the rise to power of a new ruling class in the United States. The new rulers were busy with their internal affairs at first. By the tirae of the Spanish-Araerican War, however, they had found their stride and they have been length ening it ever since. We had scarcely reduced the Philippines to subjec tion when the Roosevelt adrainistration becarae in volved in the taking of Panama, one of the most infa mous episodes that ever disgraced Araerican history. The Republic of Colombia is situated on the north 339 coast of South Araerica and erabraced the whole of the Isthraus of Panaraa. It has a governraent raodeled after that of the United States, and is coraposed of several independent states having governors and legis lative bodies of their own. The Isthraus of Panama was the State of Panaraa, one of the states composing this Republic of Colombia. In 1903, while Roosevelt was President, he negotiated with the French company that held the franchise for the purchase of the then uncompleted canal across the Isthraus and approached the Republic of Colorabia with an offer of ten million dollars if they would cede to the United States a strip ten miles wide across the Isthraus. The cession was to grant sovereign rights and thus give the United States exclusive control over the Canal. At the sarae tirae this cession would cut the State of Pan araa in two. Colorabia was afraid to deal with us for fear that we, having obtained a foothold at Panaraa, raight take the whole country. She therefore declined to sell the Canal Zone, Roosevelt thereupon sent out navy and our raarines to Colon, which is the port on the Gulf side of the Isthraus of Panaraa, and secretly notified the govern raent of the State of Panaraa that, if they would set up a republic and revolt against the Republic of Colorabia, he would give thera the ten millions of dollars for the canal strip, and would also see that Colorabia did not send any troops to suppress their rebellion. The Gov ernor of Panama agreed to this arrangement, and, at the proper tirae, started a rebellion to set up an inde pendent governraent. The Republic of Colorabia sent sufficient troops to overthrow and suppress the rebellion, but Roosevelt had instructed the officers in control of the Araerican marines not to allow Colombia to land any troops in Panaraa or to interfere with what went on there. Pur suant to their instructions, our officers refused to allow the Colorabian troops to proceed to the scene of rebel- 340 lion, but, instead, turned thera back and corapelled them to return to Colombia. On Noveraber 2, 1903, the Department of State at Washington telegraphed the naval authorities at the Isthmus as follows: " (a) Keep the transit free and uninterrupted. Should there be a threat of interruption by armed force, oc cupy the railroad line; prevent the landing of any arraed force having hostile intentions, whether the governraent or insurgent, at Colon, Portobelo, or any other point. Prevent landing if in your judgraent it raight precipitate a conflict, "(b) In case of doubt regarding the intentions of any armed force, occupy Ancon Hill and fortify it with artillery," About 3 :40 P, M, on Noveraber 3, 1903, Loorais, Act ing Secretary of State, sent the following telegram to the person in charge of the United States consulate at Panaraa : "We are informed that there has been an uprising on the Isthraus; keep this departraent inforraed of everything without delay," The Consul of the United States answered on the sarae day: "The uprising has not occurred yet ; it is announced that it will take place this evening. The situation is critical,"* Later on the same day (November 3) at about nine o'clock, Loorais sent the following telegrara to the United States consulate at Panaraa: "Troops which landed frora Cartagena raust not continue to Panaraa," At 10:30 the sarae day, another telegrara was sent to the sarae official : "If the cablegram to the Nashville (one of the war vessels then at Panama) has not been delivered, inform her captain iraraediately that he must prevent the governraent troops frora continuing on to * This correspondence will be found in House Document 8, 58th Congress, 1st Session, which contains the official correspon dence connected with the Panama Revolutiej^f 1903. 341 Panama or from assuming an attitude which raight re sult in bloodshed," On the sarae day, Noveraber 3, the following tele grara was sent to the Secretary of the Navy by the coraraander of one of the war vessels stationed at Colon : "I acknowledge receipt of your telegram of Novem ber 2 (above referred to). Before receiving it, there were landed here this raorning by the Colorabian gov ernraent about four hundred from Cartagena, There is no revolution on the Isthmus, nor any disturbance. It is possible that the movement to proclaim indepen dence raay take place in Panaraa this evening," At about 10 o'clock P, M, of the same day, the De partraent of State at Washington received frora the Vice-Consul of the United States in Panaraa the fol lowing telegram : "The revolt took place this evening at six; there has been no bloodshed. The government will be organized this evening and will be composed of three consuls and a cabinet. It is believed that a sirai lar raoveraent will take place in Colon," Qn the same day General Tovar arrived at Colon with a battalion of sharpshooters frora the Colorabian army, a force more than adequate to handle the uprising on the Isthmus, On the following day, Noveraber 4, Hubbard, cora raander of one of our war vessels at Colon, sent the Secretary of the Navy the following dispatch: "Gov ernraent troops (Colorabian) now at Colon. I have prohibited the raoveraent of troops in either direction. There has been no interruption of transit yet, I shall raake every effort to preserve peace and order," On Noveraber 6, the Secretary of State at Washing ton, telegraphed to the Vice-Consul in Panaraa in the following terras : "The people of Panaraa by an appar ently unaniraous raoveraent have severed their political bonds with the Republic of Colorabia and have assumed their independence. As soon as you are convinced that a de facto goverjjflient, republican in form and without 342 substantial opposition on the part of its own people, has been established on the Isthmus of Panama, you will enter into relations with it as the responsible gov ernment of the territory," Here, then, was a rebellion by one state against a sister republic — a rebellion which we helped to organ ize, a rebellion which was assisted by our troops and navy, which were sent in advance to help make the re bellion a success. Is there any more glaring chapter of infamous conduct in the treatment of one nation by another than this proceeding on the part of the United States? I know of nothing that parallels it in its infaray except the annexation of Texas, the acquisi tion of Hawaii and of the Philippines. Let rae cite one raore illustration of the iraperialistic methods employed by the United States in its recent dealings with Latin-America. Central America is a country about four times as large as the state of Ohio, and has a population of a little over flve million people. The country is divided into five republics — Guateraala, Honduras, Salvador, Nicaragua and Costa Rica. Dur ing Taft's adrainistration the United States intervened during a difficulty between sorae of the Central Ameri can states, in which Nicaragua was involved. The United States thereupon said: "Let us have a confer ence," and the result was that all of the states of Cen tral Araerica except Nicaragua sent delegates to Costa Rica to attend the conference, the object of which was to raake perpetual peace in Central Araerica. The president of Nicaragua refused to send a dele gate because the conference had been called by the United States, and he would not recognize the right of the United States to interfere in Central Araerican af fairs. Thereupon the United States sent down troops and drove hira out of office and put a puppet in his place. Afterwards a meeting was held in Washington of the Central Araerican states, and Nicaragua partici pated. At that raeeting a League of Nations was forraed of 343 the Central Araerican republics, and it was agreed to arbitrate all their differences and thus to end war for ever. There was to be an international court to decide the international problems of Central America, Car negie hailed the proposition with delight, and furnished one hundred thousand dollars to build a raarble peace building in Costa Rica, Meanwhile, the puppet we had set up in the place of the duly elected president of Nicaragua began looting the treasury of Nicaragua, and was finally forced to borrow money. The United States Governraent there upon notified their puppet that the New York bankers would let hira have all the raoney he wanted. In 1912 the people of Nicaragua revolted against the govemment set up by us, and in order to support our man in authority we landed raarines in the capital of Nicaragua, and we have kept thera there, and our creatures have been ruling there ever since, Nicaragua contracted further debts, until at last they could not raeet their interest payraents. In 1916 Nicaragua was very hard up, and we said to her: "Your case is practically hopeless. You cannot pay interest on your debt. The United States raay (Sorae time want to build a canal up the San Juan River and through Lake Nicaragua to the Pacific Ocean, Give us the San Juan River and the lake, with the privilege of building the canal when we get ready to do it, and give us that splendid bay of Fonesca, and a little island for a naval base, and we will loan you the raoney to pay your interest and put things on a new basis," The result was that Nicaragua, having a president of our choice, raaintained by our blue jackets, said: "Very good. We will give you the right of way and we will sell you the island, and will take the funds to pay the interest on the money we owe you," Costa Rica claimed a partial right in the San Juan River, which is the boundary between the two nations. We were therefore proposing to purchase frora Nica ragua a part of the territory belonging to Costa Rica. 344 There was a long debate over the subject, and it was finally appealed to the United States during the adrain istration of Grover Cleveland. Cleveland was the judge and gave a clear-cut decision that was just and equit able and satisfactory to all parties. Another nation now carae into the case — San Sal vador, The Gulf of Fonesca abuts Nicaragua and it abuts San Salvador, An island in that bay coraraands the shores of San Salvador, and San Salvodar said : "We object to giving away any naval base in Fonesca Bay, even to the United States, because it threatens our coast," So the case carae before the court at Costa Rica — before the League of Nations — and was thor oughly considered and a decision rendered, which was against Nicaragua and the United States and in favor of San Salvador and Costa Rica, Yet, Nicaragua, backed by the United States, refused to recognize the decision of the court. The League of Nations, forraed to secure perpetual peace, vanished into thin air. In 1917 the president of Costa Rica was overthrown, and another president took his place. The matter was referred to President Wilson, and he refused to recog nize the rebellion which had occurred over the question of an election during which it appears that Tiraco, the new president, represented the raajority of the people. At any rate, the raatter was purely a local one. But Wilson said, "I will not recognize hira." Thereupon, the Costa Rica Congress raet and recognized the adrainis tration ot the new president; but Wilson still refused, although the new president had been recognized by every Latin-American country except Panama, Nica ragua and Cuba — all three dorainated by the President of the United States. Recently we have purchased the Danish West Indies, which lie on the ocean side of the Caribbean Sea, with out asking the consent of the people living there.- We have taken over Santo Doraingo ; we collect the custoras of the country; the finest building in the republic is our custoras house, built with Dorainican raoney by 345 Americans and officered by Araericans. Haiti, the other half of the island, without any declaration of war by the United States Congress, was seized by President Wilson and is now being administered in every detail by the tlnited States. The excuse given for this action by the Wilson administration was that the Republic of Haiti owed money to the National City Bank of New York. On their account the United States invaded the island, placed it under martial law, suppressed the newspapers, dispersed the legislative asserably, domi nated the elections and murdered several thousands of the people.* The Declaration of Independence holds that "All raen are created equal ; that they are endowed by their Cre ator with certain inalienable rights ; that among them are life, liberty and the pursuit of happiness. That to secure these rights, governments are instituted araong raen, deriving their just powers from the consent of the governed," I should like to call Jefferson as a witness and have him tell us what he thinks of these disgusting perversions of American foreign policy. Again and again the United States has fastened its eyes on a desirable piece of territory and then sent its armies to fulfill its territorial ambitions. Again and again the Araerican flag has floated over battleflelds where the victors were invaders frora the United States, while the raen, fighting desperately in defense of their horaes, their children and their liberties, were the inhabitants of sraall, weak, defenseless countries that could not stand before the organized raight at the disposal of the great northern erapire. The essence of imperialisra is the extension, by armed force, of the rule of one people over another — as we extend our rule over the southwest; over the Philip pines ; over Haiti and over Nicaragua, Such armed con- * General Barnett placed the number killed by the American forces at 3,250. 346 quest is recorded among the acts of imperialists in every age. During the past two generations our Araer ican iraperialists have greatly extended the list. One annexation leads to another annexation. One act of aggression is followed by a second. The prin ciple of expansion established by Jefferson, and which he considered to be "beyond the Constitution," is ac- clairaed by Roosevelt with enthusiasra. Meanwhile, Roosevelt, who boasted of the taking of Panama from Colombia, scores "the feeble diplomacy of Jefferson's administration" (Winning of the West, Vol. VI, p. 261) and refers to Jefferson and Madison as "peaceful raen, quite unfitted to grapple with an eneray who expressed himself through deeds rather than words," and as "two timid, well-meaning statesmen." (Ibid. p. 271.) In 1803 the Constitution was still virile and respected. Even a President of the United States hesitated to transgress it. Exactly a century later a President could act as Roosevelt acted in Panama ; could consider hiraself an exeraplary Araerican, and could taunt those who had tried to observe the Constitution during an earlier generation with being "peaceful," "tiraid," and "well-meaning." Between Jefferson's hesitancy over the purchase of Louisiana in 1803 (a contiguous territory) and Roose velt's eager seizure of Panama in 1903, there stretched a century that witnessed a slow, but steady shifting frora the principles of Jefferson and the Declaration of Independence to the principles of Caesar, Napoleon, McKinley, Roosevelt, Wilson, the Platt Araendment and the Peace Treaty of Versailles, Since the annexation of Hawaii in 1898 the United States has been speeding away from her old policies; abandoning her old positions and devoting herself to a venture in iraperialisra that drags her down to the level of the British Erapire, the Japanese Erapire, the Roraan Erapire, the great erapire of Alexander, or of any other conquering people, past or present. 347 XXVI. Benevoi^nt Assimilation During the five eventful years that intervened be tween the Hawaiian Revolution and the passage of the treaty of annexation, I did all that a raan could do to prevent the American people frora taking this fatal step. As a reward for ray efforts I was denounced, vilified and conderaned. The lawyers in the Senate, representing the business interests that were seeking the ratification of the treaty, put everything possible in the way of ray work. Still I succeeded in blocking the ratification of the treaty for five years. Then came the break with Spain. When the Spanish War fever swept the country I knew that the fight on the Ha waiian Treaty was lost. Since that day in July, 1898, when the Hawaiian Treaty was ratified, for twenty-two years I have watched the progress of the United States along the path of erapire. Through these years, like wise, I have done what I could to bring the real facts of the situation to the attention of the American peo ple. It may be too late to save thera from the fate that hangs over them, but at least I want thera to know where they are going, and why. I want the Araerican people to know what to say when they are told that United States business raen and United States soldiers are in the Philippines, Porto Rico, Santo Domingo and Panama to bless the inhabit ants of these countries. I want them to know that it is an oft-repeated story— the plea of "helping the back ward nations." The cry that we have entered upon our imperial course in order to benefit the native populations in the lands that we have conquered or annexed is an old one. Dickens personified it splendidly in his character, the Reverend Mr. Chadband, Dickens' description of the encounter between the reverend gentleman and a street waif is as follows : "Stretching forth his flabby paw, Mr, Chadband lays the sarae on Jo's arra and considers where to station 348 hira. Jo, very doubtful of his reverend friend's inten tions and not at all clear but that soraething practical and painful is going to be done to hira, mutters, 'You let rae alone. I never said nothing to you. You let rae alone.' " 'No. my young friend,' says Chadband, smoothly, 'I will not let you alone. And why? Because I am a harvest laborer, because I ara a toiler and a moiler, because you are delivered over unto rae and are become as a precious instrument in my hands. My friends, may 1 so eraploy this instruraent as to use it to your advantage, 4o your profit, to your gain, to your wel fare, to your enrichraent. My young friend, sit upon this stool.' "Jo, apparently possessed by an impression that the reverend gentleman wants to cut his hair, shields his head with both arms." How well Dickens knew huraan nature ! How char acteristically he describes the crafty gentry who use fair words to cover up foul deeds. Had he lived today and watched the practice of Araerican iraperialisra, he would have been satisfied to let Mr. Chadband give way before his betters. I have before rae McKinley's proclaraation to the Fihpinos, and I have placed it side by side with a proc laraation of the King of Assyria, written eighteen hun dred years before Christ. A raan would think that McKinley had plagiarized the idea frora Asshurbanipal. Ragozin, in his History of Assyria, gives a literal translation of a proclaraation issued by Asshurbanipal to the people of Elara. The Elaraites had gone to war. Rather, their country had been invaded by Asshurbani- pal's forces, which had overrun the land, cut down the trees, filled up the wells and killed the inhabitants. Asshurbanipal captured the capital city of the Elara ites, killed their king, took 208,000 of their people into captivity as slaves, drove off raost of the cattle belong ing to those that were left, and then sent thera this affectionate greeting : 349 "The will of the king to the raen of the coast, the sea, the sons of ray servants. "My peace to your hearts ; raay you be well. "I am watching over you, and frora the sin of your king. Nabubelzikri, I separated you. Now I send you my servant Belibni to be my deputy over you ; I have joined with you, keeping your good and your benefit in my sight." McKinley writes to the Filipinos: "Finally, it should be the earnest and paramount aim of the administration to win the confidence,j"espect and affection of the inhabitants of the Philippines by insur ing to thera in every possible way the full measure of individual rights and liberties which is the heritage of a free people, and by proving to them that the raission of the United States is one of benevolent assirailation, which will substitute the mild sway of justice and right for arbitrary rule. In the fulfillment of this high mis sion, while upholding the temporary administration of affairs for the greatest good of the governed, there will be sedulously maintained the strong arra of authority to repress disturbance and to overcorae all obstacles to the bestowal of good and stable governraent upon the people of the Philippine Islands." This reads very rauch like King George III of Great Britain, who said, with reference to the rebellious American colonists: "I am desirous of restoring to thera the blessings of law and liberty equally enjoyed by every British sub ject, which they have fatally and desperately ex changed for the calaraities of war and the arbitrary tyranny of their chiefs." Every conqueror, every tyrant, every oppressor, utters just such pious phrases to justify his course of action. The English-speaking people are particularly adept at this form of hypocrisy. Each act of aggres sion, each new expedition of conquest is prefaced by a pronouncement containing a moral justification and an 350 assurance to the victims of the imperial aggression that all is being done for their benefit. What are we about in the United States? Why this rush to control the Philippines, Haiti, Costa Rica? The answer can be given in one word — exploitation ! It is the search for markets; the search for trade; the search for foreign investment opportunities that is leading us to the South and to the East. The plutoc racy is after more profits — that is the cause behind American imperialism. The imperialists' aim is to assimilate, not the people of these possessions, but their lands and their wealth. If the people will work, the Araerican plutocrats will exploit their labor as well as the resources of their respective countries. If the people refuse to work, they will be brushed aside, and men and women who will be raore amenable to discipline will be iraported frora sorae other country to take their places. Who was responsible for the Hawaiian revolution and for the subsequent annexation to the United States? The Araerican and other capitalists who had gained posses sion of the best land on the islands. What interests led the State Department to interfere in Haiti and in Nicaragua? The sarae business forces. Imperialisra is iraperialism the world over. Occasionally it is suffi ciently enlighted to have some regard for the welfare of the exploited populations. At other tiraes it is as blind and ignorant and ferocious as the policy of the British iraperialists in China. I spent a portion of the year 1898 in China and Japan, traveling extensively over both empires. At first hand, and frora the best authority, I learned the policy that the British Governraent had pursued with regard to the traffic in opium, and I submit it as an excellent example of the way in which the empire builders act where they have an opportunity to make profits out of the wretchedness and suffering of a weaker people. In Pekin, I had several conferences with Li Hung 351 Chang, who was then an old raan, having been the vir tual ruler of China for very many years under the Empress Dowager. In one of the conferences I asked Li Hung Chang why he did not starap out opinra sraok- ing in China. He replied that he could not because the English Government refused to allow the Chinese to interfere with the trade. He then told me that in some of the provinces of China (for China is divided into a number of States) the Governors were raising poppies and making opium, in order to beat the English out of the trade in China. He said that he had tried to secure an agreeraent with the English under which he was to stop the raising of poppies in China provided the English would stop importing opium. This he had been unable to do, as the trade in opium was an Eng lish raonopoly conducted by the Govemraent itself. According to his stateraent, the English had set apart a raillion acres of the best land in India for the purpose of raising poppies, and had corapelled the people of India to raise the poppies and sell the product exclusively to the English Governraent. The English had built a factory to raanufacture the opiura, and every package that left the factory was decorated with the coat of arras of Queen Victoria. Opiura was little used in China until the English introduced it early in the nineteenth century. The Eraperor had protested against the opiura trade, but the English Governraent insisted upon its right tb sell opiura to the Chinese. Finally, the Emperor of China sent his raen aboard sorae English ships that were lying, loaded with opium, in the harbor of Canton and threw the poison into the sea. Seventy years earlier the Araerican colonists had set the precedent for this Canton opiura party by going aboard the British ships in Boston Harbor and throw ing the tea overboard. Today the anniversary of the "Boston Tea Party" is one of the fete days of the people of New England. The British liked the exploit as little as the other, however, and they began a war with China (1840). This war, sometiraes called the First Opium 352 War, went against China, and she was corapelled to cede Hongkong to the British, to open four other ports to British trade, and to pay an inderanity of P, 525,000 pounds sterling into the British Treasury. The raatter carae in for a good deal of comment in Parliament, but eventually it was dropped.* In 1857 a new controversy arose, and the Emperor again undertook to exclude English opium, giving as the reason that it was de stroying his people; that the drug was a deadly drug and was causing great injury, and he enacted laws making it a criminal offense for the people of China to sraoke opium, or for anyone to iraport the drug. In connection with this carapaign he confiscated the opiura that the English had already iraported and iraprisoned the people who handled it. England thereupon declared another war upon China which was called the Second Opiura War (1858-1862). Again China was defeated. Canton was borabarded; Pekin, was threatened ; and, after a disastrous struggle, the Cftinese made a treaty under which several new ports were opened to British trade ; a British Ambas sador was received at Pekin, and China paid an indem nity of 4,000,000 pounds sterling to the British. After each war, the British were able to bring opiura into a few raore Chinese ports. Li Hung Chang spoke with great bitterness of this conduct on the part of a so-called Christian nation, and went quite largely into the question of the injurious use of opiura. He also presented rae with a copy of the treaty raade between China and Japan after the China- Japanese War, which had occurred only a few years before 1 visited Pekin, This treaty was written in Enghsh and Chinese, and the book handed me con- * "Ashley even brought forward a resolution for the suppres sion of the opium trade, but withdrew it after a debate turning on the inability of the Indian Government to part with a revenue of 1,000,000 pounds sterling or more." — The History of England. Sydney Law and L. C. Sanders. Longmans. 1913, Vol. 12, p. 41. 353 tained Li Hung Chang's picture and autograph, and the entire record of the conversations held at Shimonoseki between the ruler of China and Count Ito^ the repre sentative of Japan. The terms of the treaty compelled China to cede to J^pan the Island of Formosa, which had an area of 13,000 square miles, and was inhabited by four million Chinaraen. In the conversation which preceded this treaty. Count Ito asked Li Hung Chang why he did not starap out the opiura traffic in China, as he had prom ised to do at Tientsin ten years before, Li Hung Chang answered that he could not do it because the EngUsh Governraent would not allow it, "Furtherraore," said he to Count Ito, "if you take the island of Forraosa and stop opiura smoking, it will result in a war with Eng land," To this Ito replied: "That may be true, but we will stamp out opium smoking even if it does result in war," When I heard that story, told impressively by a meraber of the race that had suffered such wrong at the hands of British iraperialisra, I could not help corapar- ing it in my mind with the participation of America in the slave trade, and wondering what new infaraies the iraperialist policy in which we were then, and still are engaged, would lead us to in the course of the present century. The British had nothing against the Chinese, They sold them opium because there was money in it. If there had been no profits in the trade there would have been no opiura war. Our imperial ventures, like those of the British, are financial. We are in the imperialist business because it pays the plutocrats to be there. I never realized this so completely as in the winter of 1900, when a delegation from Porto Rico visited the city of Washington for the purpose of having the products of Porto Rico admitted free of duty to the United States. The delegation carae before the Corarait tee on Insular Affairs, of which I was then chairman, and asked for a hearing. I therefore called the mem- 354 bers of the committee together so that they raight hear the Porto Rican delegation present its case. There were fi\e members in the delegation — two Englishraen, two Spaniards and a Frenchraan. I had one of the Englishraen take the stand first and asked hira what it was he desired the Congress of the United States to do. He answered that the delegation desired to have the products of Porto Rico — sugar, tobacco and tropical fruits — adraitted to the United States free of duty. I then asked hira. "Are you a citizen of the United States?" "No," was his reply. "I ara a citizen of England, but a resident of the United States." "Are you going to become a citizen of the United States?" I asked. He replied that he was not. I then asked what interest he had in Porto Rico. He answered that he owned 200,000 acres of land. "You are working your land at the present time?" I asked. "Xot to any great extent," he replied. He then ex plained that the land could raise great crops of sugar that raight very nearly supply the United States if the industry were encouraged by having the sugar adrait ted free of duty. In an.swer to a question about the people that were occupjing his lands in Porto Rico, the Englishman explained that they were "natives." "Are they your tenants?" I said to him. "Do they rent the land from you?" "Yes," he answered. "They live in single-room houses as a rule, elevated from the ground on posts, one post at each corner. As a rule the houses are from six to eight feet from the ground." He then told us how the natives built a floor on top of these posts and then made a palm-leaf hut in which they resided. For support they planted yams and dry-land bananas and raised chickens and pigs. They paid their rent for the 355 use of the land by a certain number of days' work on the Englishman's plantation. To my question as to the character of the people, he replied that they were "good people." When I asked him whether they could read or write, he said they could not, since there were no provisions on the island for their education. I then put the other Englishman on the stand. He told the same story. After that I questioned the two Spaniards and the Frenchraan. They all owned several hundred thousand acres of land, which were being used more or less in the way already described. All spoke of the native inhabitants as "good people," as mostly white people, and as entirely illiterate, I asked if there were any of the natives who owned their own land. All agreed that there were very few such. After I had taken their testiraony in full, and had showed up the enorraities of the econoraic systera then existing in Porto Rico, I told thera that the hearing was closed; that as long as I remained chairman of the Comraittee on Insular Affairs they would get no legis lation enacted adraitting their product free of duty; that if I could have ray way about it I would cancel their title to every acre of the lands of Porto Rico and raake the title out to the people of the United States, That I would then give an inalienable title to every person in Porto Rico for all the land that he could actually use, and levy taxes upon thera for the com pulsory education of their children, " What!" they exclaimed, "Take our property with out paying us for it?" "It is not your property," I answered, "The land of Porto Rico belongs to the people who inhabit it and who work it, I would not pay you a dollar for your pretended title or allow you to remain there for one day to exploit the inhabitants of that island or to hold a single acre of that land in excess of the araount actu ally occupied and cultivated by you in person," 356 Of course, when my terra of office expired in 1901 these foreign highwaymen, waiting to prey upon the people of Porto Rico, returned to Washington and secured the legislation they desired. They also secured control of the Government of Porto Rico, and raade arrangements for a large arraed police force to pre serve law and order. They also appealed to Congress to put a duty on Cuban sugar in order to prevent it frora corapeting with Porto Rican sugar. They then returned to the islands and began their work of "eco noraic developraent," About the first thing they did was to cancel the leases of the inhabitants who occupied the land. Then they corapelled thera to work for wages, raising sugar and tobacco, and they refused thera the use of any land to raise yams, bananas, pigs and chickens, and they fixed the wages at 50 cents a day in silver. Little provision was made for the education of the people, and the wages were so low that, with their large farailies, the laborers; found it irapossible to buy adequate food and clothing. Consequently, their children grew up with out clothes — ran naked in the fields and even in the towns — and were put to work as soon as they grew old enough to be of use. Shortly after this beautiful plan of "econoraic devel opraent" was put in effect, the owners of Porto Rico began to boast of the great things they had done for the people. They told how they had furnished eraploy raent ; had put up the mills and factories and brought in the machinery to raake the sugar out of the raw cane, and to raanufacture the tobacco, so that Porto Rico exported $150,000,000 worth of the product per annura to the United States, With it all, the raiserable peons of Porto Rico went naked and starving in one of the richest spots of the whole world. After the first few crops had been harvested, the laborers of Porto Rico went on strike, leaving the cane to sour in the field. Thereupon these foreign pirates, the English, the Spanish, the French and the Araerican 357 planters, called in the police force and the armed raen of the United States and shot up the strikers and arrested thera and put them back to work in the fields — those they had not wounded or murdered. Thus, econoraic developraent pursued its iraperial course in Porto Rico, where conditions are as bad today as they were when we took possession of the island twenty-two years ago, and always will reraain as bad until the systera of exploitation at horae and abroad is aban doned and labor is given its just reward. Lest anyone should think that I am exaggerating, I should like to call attention to a report recently pub lished by the United States Department of Labor, giv ing a full description of the working and living con ditions in Porto Rico, (Labor Conditions in Porto Rico, by Joseph Marcus, Washington, 1919,) The spe cial investigator who wrote the report for the Labor Department, as a result of a careful study of condi tions, states that : The Araerican flag has been flying over the island of Porto Rico for twenty years, yet the percentage of illit eracy is still abnormally high. During the years 1917 and 1918 "only 142,846 children out of a total of 427,- 666 of school age actually enrolled in the public schools," "The difficulty," says Mr, Marcus, "lies in the bad economic condition" in which the worker finds himself, "Porto Rico is an island of wealthy land pro prietors and of" landless workers. There is a law in Porto Rico prohibiting any single individual from own ing more than 500 acres of land. * * * With the Araerican occupation the price of cane land rose very high — frora thirty to three hundred dollars per acre — and this induced raany a sraall holder to sell his land and join the ranks of the laborers." Under the circum stances, the law liraiting land holdings was not en forced, and at the present time "of the best land of Porto Rico, 537,193 acres are owned and 229,203 acres are leased by 477 individuals, partnerships, or corpora tions frora the United States, Spain, France and other 358 countries." The total wealth of the island is in the hands of fifteen per cent, of the population. Fourteen per cent of the wealth is in the hands of native Porto Ricans. Sixty-seven per cent is owned by Americans. Four-fifths of the people of Porto Rico live in the rural districts. They build their httle shacks on land that does not belong to thera; they work when work is to be had on the nearest plantation; the men dress in a pair of trousers, a shirt and a straw hat. "Throughout the island thousands of children of the ages from one to seven years go naked, in the towns as well as in the rural districts." When the laborer is at work he and his family share the following diet: Breakfast — Black coffee, without milk, and quite often without sugar. Lunch — Rice and beans, or rice and codfish, or codfi.sh and plantins. Supper — The sarae as lunch. This diet holds good while the laborer has steady work, but, during a large part of the year — five or six raonths — there is no work. "How he pulls through the slow season is a raystery to many who are interested in the welfare of the laborer." The Porto Rican laborer is a sick raan. "Hookworm disease, anemia, etc., are very widespread." The low energy value of the diet, together with the prevalence of sickness, has so undermined the endur ance of the Porto Rican laborer that a number of ex- periraents in scientific diet, carried on by the eraployers theraselves, resulted in increasing the working capacity of the raen frora 50 to 100 per cent. Mr, Marcus finds that, with an increase in wages which would enable the laborer to purchase sorae ra.eat and dairy products, the charge of laziness and inefficiency, which is frequently lodged against the workers, might well be withdrawn. The investigation upon which Mr, Marcus bases his report was made during the year 1919, At that tirae machinists in the sugar mills received about one dollar 359 per day. Laborers in the busy season were paid ninety cents per day; in the slow season seventy cents. The working day is from ten to twelve hours. On the to bacco plantations men's wages during the busy season are from sixty to eighty cents a day and, during the dull season, from forty to sixty cents a day, Woraen receive frora thirty-five to forty-five cents a day in the busy season and frora twenty-five to thirty-five a day in the dull season. On the coffee plantations wages are lower. Men receive frora fifty to sixty cents per day in the busy season and frora thirty-five to forty-five cents per day in the dull season, Mr, Marcus reports that the needle industry is raak ing considerable headway in Porto Rico, Men's and children's suits are raanufactured by woraen operators who earn frora three dollars and fifty cents to five dol lars per week, Erabroidery raanufacturing, lace-raak- ing and drawing work pay frora one dollar and twenty- five cents to four dollars per week. The work is done exclusively by woraen. Detailed descriptions are given of living and working conditions in these and other industries. Enough has been said here to indicate very clearly that the Araeri can people, having assuraed the responsibility for di recting the lives of 1,118,012 Porto Ricans, are far behind the standard of "health and decency" which civilization prescribes as the rainiraura below which human beings cannot be expected to live and to work. Here are two examples of the work of modern era pires. Great Britain fought two wars in order to force the drug habit on China, The United States took Porto Rico away frora its "Spanish oppressors" and then tumed the island over to absentee landlords, whose sole interest in the island was to raake out of it all the raoney they could. This is imperialisra at its worst — hard, grasping, western iraperialisra. With it I should like to contrast an instance of iraperialisra araong the "heathen" of the Orient, Japan took the Island of Forraosa frora China about 360 1897, Formosa is a very fertile island lying off the coast of China in the Pacific Ocean, Its population is almost exclusively Chinese, and it has been a part of the Chinese Erapire for over four thousand years. The inhabitants nearly all sraoked opiura which had been forced upon thera by England as a result of the two "Opiura wars," When Japan corapelled China to relin quish her right to the Island of Forraosa (she had al ready occupied the island during the war) she sent eight hundred surveyors to the island and surveyed all of the land in Forraosa, When the survey was'cora- pleted she raade raaps showing who occupied each tract and describing the title by which it was held. The Japanese found that the land in Forraosa was owned in great tracts by Chinese raandarins, raost of whora lived over in the cities on the main coast of China, many of them in Araboy, The holdings of these absentee landlords were frora 200,000 to 500,000 acres. On the island itself practically all of the 4,000,000 in habitants were landless and were paying rent to own ers who lived abroad. No provision whatever was raade for the education of the Forinosan children, Japan at the sarae tirae registered every opiura sraoker in Forraosa and ascertained the araount of opiura he sraoked each day. She also destroyed every poppy field in Forraosa and built an opiura factory and purchased the raw opiura frora the Indian (English) Governraent to supply the registered opiura sraokers each day with the araount they sraoked. She then passed a statute raaking the raising of poppies a crirae and making it a criminal offense for any person except a registered opiura sraoker to have any opiura in his possession. Consequently, when all the registered opiura smokers died off, opium smoking was wiped out all over the island. Having surveyed the land and ascertained just who owned it, Japan passed a law taking the title of the Island of Formosa frora the landlords and conveying it to the Erapire of Japan, As corapensation to the land- 361 lords, Japan issued 4,000,000 yen of Formosan trust bonds and divided these bonds arbitrarily among those who had owned the island. Then she gave to each farmer who tilled the soil in Forraosa the land he occu pied and used, as well as the iraproveraents which he already owned, and accompanied this gift with a pro vision that the farraer might dispose of his improve ments to any other person who actually used and occu pied the same, or that his iraproveraents raight descend to hjs children. In the case of the land, however, he was denied the right to alienate any portion of it. The Japanese also established schools all over Forraosa for the corapulsory education of the people, I cite these facts because they present a picture of imperialisra at its best — as it was practiced by Japan — in contrast with imperialism, at its worst, as it is prac ticed by Great Britain and the United States, At bot tom, however, imperialism is iraperialisra and is the same in principle, wherever it is found. After all, why talk nonsense? Why lie to others? Why seek to deceive ourselves ? An iraperial policy has as its object the enrichment of the iraperial class. The plain raan — the farmer, the miner, the factory worker — is not the gainer through imperialism. Rather the monopolist, the land owner, the raanufacturer, the trader, the banker — who have stolen what there is to steal at home, devote their energies to the pursuit of empire because the pursuit of erapire gives thera an opportunity to exploit and rob abroad. We annexed Hawaii, not to help the Hawaiians, but because it was a good business proposition for the sugar interests. We took the Philippine Islands be cause the far-seeing araong the plutocrats believed that there was a future econoraic advantage in the East. For the sarae reason we are in Haiti, Costa Rica and Panaraa. Each step along the iraperial path is taken for the econoraic advantage of the business raen of the United States and at the expense of the liberty and the lives of the natives over whom we secure dominion, 362 XXVII, The U. S. and the Course of Empire The United States has entered upon the course of erapire. There is no limit to imperial policy ; if we can justify the taking of the Philippines and governing thera against their will — if we can justify conquering countries where our Constitution cannot go — our arraies will soon be raarching across Mexico, down the Isthmus to South America, leaving death and desola tion in their track, rearing upon the ruins of those free govemraents a tyrannical, despotic power. Let a free people once set out on an iraperial course and the institutions that are dear to every lover of liberty disappear like April snow, Iraperial power cannot possibly be raaintained with out an iraraense navy and a standing array. Do not the very existence of such an array and such a navy constitute a denial of all that the old Araerica stood for? Armies and navies are fighting raachines. If they ara to be successfully operated there raust be one raan to whora is given suprerae control. If there is to be an empire, there raust be a dictator, so that he can move with rapidity ; so that decisions can be raade in a day and armies raarched and ships raoved where danger is seen. Is despotisra what the people of Araerica desire? If so, they will have it — indeed, they now have it under the iraperial realities that are cloaked under the guise of republican naraes and republican traditions. Is it freedora that the Araerican people seek? Then they must abandon the course of erapire. It is irapossible for a republican forra of governraent to function as an erapire. Republican institutions in variably are corrupted when iraperialisra is established. Creasy, in his Fifteen Decisive Battles of the World, puts the matter tersely in these words : "There has never been a republic yet in history that acquired dominion over another nation that did not rule it selfishly and oppressively. There is no single excep- 363 tion to this rule, either in ancient or modem times, Carthage, Rome, Venice, Genoa, Florence, Pisa, Holland and Republican France, all tyrannized over every prov ince and subject-state where they gained authority," Imperialisra is tyranny and in the process of destroy ing liberty abroad you crush it effectively at horae. Senator Hoar saw the peril. When the question of iraperialisra was up for discussion in the Senate he said (January 9, 1899) : "We have now to raeet a greater danger than we have encountered since the Pilgriras landed at Plyraouth — the danger that we are to be transf orraed frora a repub lic, founded on the Declaration of Independence, guided by the counsels of Washington, into a vulgar, coraraon- place erapire, founded upon physical force," Read history ! The record is unraistakable, Araong the plutocracies and the raonarchies of the past, whenever property and power have been gathered into the hands of the few and discontent has appeared araong the raasses, it has been the policy to acquire foreign possessions, to enlarge the array and the navy, so as to keep discontent occupied and thus distract its attention, A foreign war has cut raany a doraestic tangle. The recent record of the United States in its acquisition of foreign territory, coraing as it does with an increase of the army and the navy, tells the sinister story of the decision which the ruling classes of Am erica have made to pursue an imperial policy. The growth of the army and navy of the United States during the past twenty years has been phenom enal. When I entered the Senate, the authorized strength of the array was 28,417 men and the annual army appropriation was $44,582,838, Today the au thorized strength of the array is 175,000 and the appro priation requested by the War Departraent is $935,- 000,000. The navy, which received an appropriation of $22,006,206 in 1890, is asking this year for $695,- 000,000. A generation has seen the army and navy of the United States increased from def ensive organiza- 364 tions to the powerful, iraperial fighting raachines — the dogs of war, larger, stronger and better fed than those belonging to any other nation in the world. Rorae was organized as a republic. For the first six hundred years of her history she had the best govern raent then existing on the globe. To be a Roraan citi zen was a greater honor than to be a king in another country. Rorae consolidated her power until she ruled all Italy. Then she began to spread out along the northern coast of the Mediterranean to reach into Assia Minor and Africa. But, when the policy of acquiring and ruling peoples who could have no part in her republican form of government began, Rorae ceased to exist as a Repub lic and becarae an Erapire. From that point the his torian dates the ruin of her government, and the raisery of her population. When Rorae had acquired Egypt and Asia Minor with their populations of low con,sum- ing power and great tenacity of life, the Roraan citizen found that he could not corapete against thera in the growing of crops or in other industrial enterprises. The Roraan of those days was like the Anglo-Saxon of today — a man of great vitality, requiring excellent nurture, the best food and plenty of it. When he came into competition with the Asiatic races, people of low vitality and with a great tenacity of life — huraan raa chines who could subsist upon the least food and per forra the most work — the Roraan farmer was destroyed, the foundation of power was shattered and the Roraan Erapire passed away. When the Roraan Republic was established raost of its people were farraers. Their farms did not average more than twelve acres in area, indicating a dense rural population. No foreign foe could raarch through that stockade of individual farm owners to the walls of Rome. They were successful farraers and prosper ous, and they made mighty soldiers. Cincinnatus left the plow to lead his victorious legions. This was the .situation during the early days of the Roraan state, 365 During the first century of the Christian era centrali zation of wealth power revolutionized this siraple life of the sraall farm. The lands were absorbed by the wealthy; the raines of silver and gold in Spain and Greece had been worked out; the old republic disap peared and in its place was erected the structure of an empire. James Bryce says of this period of Roraan history: "The ostentation of huraility which the subtle policy of Augustus had conceived, and the jealous hypocrisy of Tiberius raaintained, was gradually dropped by their successors until despotisra becarae at last recog nized in principle as the governraent of the Roraan Era pire. With an aristocracy decayed, a populace de graded, an array no longer recruited frora Italy, the serablance of liberty that yet survived raight be swept away with impunity. Republican forms had never been known in the provinces at all and the aspect which the imperial adrainistration had originally assuraed there soon reacted on its position in the capital. . . , This increased concentration of power was raainly re quired by the necessities of frontier defense, for within there was raore decay than disaffection," Great Britain rules over the mightiest of raodern erapires, but the British people have not been enriched by her conquests. Study the facts with regard to her laboring population. Compare the English factory worker of today with the English yeoraan of four or five hundred years ago — corapare thera in health, in vigor, in quickness of eye and hand, in love of life — in anything you will, and the result will be to the dis advantage of the present-day Britisher, Where are the people of Europe best off at the present tirae ? Is it in Great Britain — raistress of the sea and ruler of territory scattered over six continents? Not at all! It is in little Switzerland, Holland, Nor way, Where is there the best distribution of wealth, the best opportunity for the individual raan? Where is there the least poverty, raisery and distress? It is 366 in Switzerland and Norway, It is not in England, Her conquests have bestowed no blessings upon her people, "Two-thirds of thera own nothing, while about a quarter of a million own all the property of the British Islands, What blessings has England conferred upon her col onies that would justify the adoption of her policy by the United States? Her course in Ireland has been one of the blackest pages in the history of the world — a record of starvation and plunder. If England will govern Ireland as she has done, what right has she to claim that she can govern any country? What is there in England's exaraple that can justify us in undertaking the same work ? England began with Ireland. She followed with In dia. How has that country fared? In India, the Eng lish have made practically no converts to Christianity. Neither have the natives learned the English language. A great army, paid for by the native governments theraselves, has been raaintained to hold the Indian peoples in subjection and to prevent thera from secur ing modern arras and raodern irapleraents of destruc tion. Indian raw raaterials cannot be raanufactured at horae because of the taxes iraposed by the British authorities. Instead, they are shipped, in English ships, to Great Britain ; raanufactured and underrated by British raanufacturers and raerchants, and then transported back to India and sold to the Indian people. As trader, manufacturer, merchant, insurance agent and banker. Great Britain has profited, and India has paid. What blessing has England conferred upon India? No blessings! On the contrary, she has taken away the food supply of the native population and left mil lions to die of starvation. At the tirae of annexing the Philippines President McKinley said that moral reasons compelled us to stay in the Philippines, and that we, under God's direction, owed a duty to mankind, and more of similar cant. 367 Here is what John Morley, the English statesraan and writer and biographer of Gladstone says with regard to England's policy in this sarae connection: "First, you push on into territories where you have no business to be and where you proraised not to go; secondly, ^our intrusion provokes resentment and, in these wild countries, resentment means resistance; thirdly, you instantly cry out that the people are rebel lious and that their act is rebellion (this in spite of your own assurance that you have no intention of setting up a perraanent sovereignty over them) ; fourthly, you send a force to stamp out the rebellion; and, fifthly, having spread bloodshed, confusion and anarchy, you declare, with eyes uplifted to the heavens, that moral reasons force you to stay, for if you were to leave, this territory would be left in a condition which no civilized power could contemplate with equan imity or composure. These are the five stages in the Forward Rake's progress," There is not a word in that passage that does not accord with the excuses given by those Araerican im perialists who are in favor of conquering and ruling unwilling peoples. Does the United States wish to follow the British exaraple ? Frora it no money will come into the Treas ury for he benefit of the people of the United States. The laborers of this land, from whom we raise our taxes in the same way that England raises hers-^by a per capita levy on consumption — are invited to contri bute this taxation to support an array of occupation and subsidize ships to carry the trade, in order that the people in the outlying territory may be exploited by the trusts of the United States. There is another reason behind the imperialist pro gram that is being followed by the United States. It is well when people become restless and dissatisfied with the conditions which exist ; when the workers of a land learn to believe that they are not receiving their just share of the products of their toil, to give them 368 amusement — to distract their attention by distant problems — to supply them with bread and circuses, as in Rome, or to do as England has done — begin the kill ing of men in some far-off land and then appeal to the patriotisra of the folks at hom'e. By such raeans are the minds of the people diverted from the pressing economic and social problems, the right solution of which is essential to the happiness of the toilers of the nation. There is no justification in history for the imperial course upon which we have entered. Rather, every page in history is a warning to us — ^that we desist be fore it is too late. And why should we not desist? What reason can be given for our imperial policy save the desire of the ruling class to plunder and invest? The area of this country is great enough, if we would raaintain free institutions under a republican forra of governraent, for in a republic, founded upon the principles of equality and universal suffrage, it is es sential that the individual voter shall have a knowl edge of, and be farailiar with, the raethods of govern raent ; and if the country is so great and the probleras of government are so complicated that it is impossible for the individual voter to acquire this familiar knowl edge, how is it possible for him to vote intelligently? How is it possible for him to know that by his vote he is maintaining free institutions? In the past, repub hcs have been of quite liraited area — a single city per haps — with a coraparatively small population. The founders of this government, recognizing the difficulty of raaintaining as a unit a republic of extensive pro portions, inaugurated the Federal system, a union of sovereign states, hoping thereby to extend self-govern ment over vast areas and to maintain at the same tirae the purity of republican principles by raaking each sovereign state a free republic. For the purpose of unifying a vast area within the bounds of a republic it was enacted that the central gov ernment, the Governraent of the United States, should 369 be a governraent of liraited powers, a government pos sessing only such powers as were conferred upon it by the Constitution, All other sovereign rights — all other powers coraraon to a sovereign — were retained by the States theraselves, or by the people theraselves as in habitants of the States, If we follow our present policy of acquiring tropical countries, where republics cannot live, and where free, self-governing people have never lived since the world had a history, we overturn the theory upon which this governraent was established. The whole theory of our government precludes cen tralization of power; the whole theory of our govern raent sustains the idea that the United States as a gov ernment shall only do those things which cannot be done with equal effectiveness by the states or by the individual citizens. But our Federal system has not accomplished the purpose for which it was created; it has not fulfilled the expectation of its authors. Before we acquire more territory; before we start on a policy of imperialisra and of conquest, it is our duty to inquire whether our area and population are not already too great. Centralization went on rapidly after the War of the Rebellion. It was hastened by the Spanish War. It received an immense impetus during the World War. As a result, our people are looking to the Government of the United States as the source of all power and the channel through which all relief must come. The American people have ceased to rely onthe states. They are forgetting how to rely upon themselves. This concentration of power in the hands of the Federal Government has been followed by encroach ments by the Federal courts upon the sovereignty of the states and upon the legislative and executive branches of the governraent itself, until a point has been reached in our public life where the courts are alraost suprerae. Within the past fifty years the wealth of the United 370 states, which was once fairly distributed, has been ac cumulated in the hands of a few, so that five per cent of the people own three-quarters of the nation's wealth, while two-thirds of the citizens — the workers — are practically without property. Recent events point un mistakably to the fact that the few raen who own nearly all the wealth have gained control of the raachinery of public life. They have usurped the functions of gov ernraent and established a plutocracy. Those who favor an iraperial policy for the United States, who favor a departure from those custoras and practices that have created the proudest pages in our history, say it is manifest destiny, "Throughout all recorded time manifest destiny has been the murderer of raen. Manifest destiny has caused the strong to rob the weak and has reduced the weak to slavery. Manifest destiny built the feudal castle and supplied the feudal lord with his serfs. Manifest destiny corapelled re publics to go forth and conquer weaker races and to subject the conquered people to slavery ; to irapose tax ation against their will, and to inflict upon thera forms of governraent which they considered odious. Mani fest destiny is the cry of the strong in justification of their plunder of the weak. This cry sent forth the nations of Europe to divide araong them the weaker nations of Africa and Asia. If we pursue the course to which "manifest des tiny" is alluring us; if we annex weaker nations to which we cannot apply our systera of government; if we acquire territory in the Tropics where men can not live who are capable of self-governraent, then re publican forms cannot exist in those distant posses sions. The vigorous blood, the best blood, the young men of our land, will be drawn away to mix with dis tant races and to hold them in subjection. Gradually the reflex of the conquest and of this tyrannical gov emment will work its effect upon our own people, and free institutions will disappear frora this land, as well 371 as frora the land we conquer and undertake to hold in subjection. Whenever England concludes to go upon an expedi tion and plunder some of the weaker nations of the world, she makes her first appeal to patriotisra. Then, step by step, she goes on until she has committed the wrong, has transgressed the rights of the natives ; has aroused their resistance, and then she declares that the flag has been fired on, and that no Englishman must question the right or wrong of what is being done until the enemy is defeated and the country annexed. Contemplate the course of every republic in the past; watch its surrender to the lust of power and the greed for wealth ; then turn to our own shores, examine our present conduct and see our flag go down in misery and in sharae. The glory of this republic has been that we have offered an asylura to the oppressed and a hope to mankind which has been followed wherever freedora has flowered throughout the world. Shall we stain that record? Shall we abandon history? Shall we become one of the robber nations of the world? The United States is on the wrong course — ^the course that leads to national disgrace and flnally to national destruction. The wealth lords who desire imperialism are not the American people. The jingoes and ex- 4)loiters who are out for conquest and for annexation are not the Araerican people. They are merely the rep resentatives of a ruling class that would use the Ameri can people to fill their own money bags. We have a task— clear and well defined. Our duty is to educate and elevate the population we already have, and thus perpetuate our institutions. In the past every republic has sown the seeds of its final destruction by gratifying the desire for conquest and for glory. Let us profit by their example and pursue a course that will make the masses happy and pros perous rather than dazzle and allay the mutterings of misery and discontent by the raarch of armies and the glory of conquest, 372 XXVIII. The Profiteers The test of a man or of a social systera is the way he acts in a crisis. The great war was the crisis that tested Araerican capitalisra and that showed it up for what it was — a brutal game of profit-making at the expense of the people who work and pay. When the war broke out in Europe, I knew that the American business men would take advantage of the eraergency in which Europe found herself to charge the highest possible price for the worst possible prod uct and when, three years later, the United States de cided to enter the war I was equally convinced that the Araerican business raen would rob their own coun try of every farthing on which they could lay their hands. Not for a raoraent was I deceived by the glib talk of "patriotisra" that sounded frora every Chamber of Coraraerce and every business office and banking in stitution. I had dealt with the arraor-plate contracts in the United States Senate twenty years before ; I had invetigated the sickening details of the beef contracts raade by the packers with the governraent during the Spanish war. Besides these details and beyond thera, I knew the whole business systera for what it was — a de vice for enabling the strong to rob the weak; for per raitting the capitalist to coin every private or public need into profits. A reference to the situation which was unearthed in the Senate away back in 1897 will give the justification of the conclusions I have reached with regard to the capitalist system, as such. In the closing days of the 54th Congress a question arose regarding the cost of arraor-plate. After an ex haustive discussion, in which great quantities of evi dence were subraitted, the question was put to a vote of the Senate in this forra : — Shall the Senate vote for armor-plate at $300 or $400 per ton? Only twelve Senators favored the $400 lirait. They were Aldrich, 373 Allison, Brice, Cullora, Gibson, Gorman, Hale, Haw ley, McMillan, Murphy, Squire and Wetraore, There were 36 votes cast on the other side, of which raine was one. The evidence seeraed perfectly clear. We had sum raoned experts and ascertained that the cost of labor and raaterials entering into a ton of arraor-plate was about $160, This figure included a charge for "keep ing plant ready for use," a charge for "shop expenses," a charge for "office expenses and contingencies," and a charge for "adrainistration, superintendence and en gineering, beside the charges for "materials in ingots," "raaterials consuraed in raanufacture" and for "labor," Ten per cent was allowed for re-pipings and 10 per cent for rejected plates, making a total of about $200 per ton. The company clairaed a return on the "invest- raent," but it was proved that profit on the first arraor- plate contract secured by these corapanies had been equal to the entire cost of the plant. An allowance of 5 to 10 per cent was raade, however, for repairs and raaintenance, and the total cost of a ton of arraor- plate was brought up to $225. At that figure, the profit to the corapanies on the 8,000 tons of arraor would be about $600,000 on a $300 figure. Under the circurastandes the Senate voted 36 to 12 for the $300 figure. After Congress had adjourned the Secretary of the Navy endeavored to get bids at $300, None was forth- coraing. Instead, representatives of the corapanies waited on hira and advised hira that they could not make the plate for less than $425 — a figure which al lowed for a profit of about $1,600,000 on the contract. An amendraent was therefore raade to the deficiency appropriation bill (July 13, 1897, p, 2,553) allowing for araor-plate at that price, "Last winter we appropriated raoney for the purpose of buying armor-plate and liraited the price to $300 a ton. The evidence taken before the Coraraittee on Naval Affairs showed conclusively that the plate could 374 be made for $250 a ton. The two arraor-plate factories, being in collusion and having been in collusion as to every bid they have had heretofore, as was shown by the evidence before the Coraraittee On Naval Affairs, refused to raake the plate for $300, but insisted that they should have $425, "Instead of bringing in a proposition to build a factory and make the plate ourselves and thus protect the interests of the government, the Comraittee on Appropriations propose to accede to the deraands of these raen, who are in a trust to plunder the Treasury, and they bring in an araendment to pay them $425, thus cowardly surrendering to this adraitted corabina tion. It seeras to rae too disgraceful to be tolerated," (It was shown that the two plants could be dupli cated at one or one and a half raillions each.) These facts and raany others that had corae to ray attention during the years of my public life led me to look behind the patriotic professions of the business leaders — their talk about Belgiura and the Lusitania, and "Huraanity" and "Deraocracy" — to see what were the real reasons that were leading the United States into the war. I did not have to look far before discov ering the answer. Araerican banks, like the Morgans, and Araerican manufacturers, like the Bethlehem Steel Corapany, had granted large extensions of credit to the Alhes and, if the Allies lost, they were bankrupt. Fur therraore, they saw an unequaled opportunity to strengthen their hold in the United States and to run a pipeline into the public treasury. The entrance of the United States into the war would validate their European speculations at the sarae tirae that it gave thera tens of billions in Araerican war contracts. By the time these facts were clear in my raind, the United States had entered the war, I opposed the step with all of the energy that I had, and, after it was taken, I said very frankly what I thought about it in the following newspaper interview that appeared in the Sioux Falls "Argus Leader" of October 6, 1917: 375 "There is no excuse for this war," "We should back right out of it," "We never should have gone into a war to help the Schwabs make $40,000,000 per year," "This man McAdoo sard here that we are in the war frora principle to protect our right to trade on the open sea. Not an Araerican was killed except on araraunition boats, and they had no right to be there," "Syrapathy is being extended to Belgiura, She deserves none. For fifty years Belgiura robbed the Congo, This raade Belgium wealthy, but three-fourths of her people did not share in this wealth. If she is now indem nified it will go to the raen who robbed the negroes of the Congo," "One hundred years ago we fought out the alien and sedition law. The party back of it failed at the next election. The sarae struggle is on again," "People desire to know if they are living in the United States or in Russia," . Since the day that I had refused to take sides with Mr, Wilson in his 1912 carapaign he had disliked me. This stateraent gave hira his chance and within ten days of the date on which it appeared I was indicted by the Federal Grand Jury at Sioux Falls, S. D, The indictment is a curious document. One day, with the many others that were issued during the same period, it will be historic: "The District Court of the United States of Araerica for the Southern Division of the District of South Da kota in the Eighth Judicial Circuit, "At a stated terra of the District Court of the United States of Araerica for the Southern Division of the District of South Dakota begun and held at the City of Sioux Falls, within and for the district and circuit aforesaid, on the third Tuesday of October, in the year 376 of our Lord one thousand nine hundred and seventeen : "The Grand jurors of the United States of Araerica, good and lawful raen, suraraoned frora the body of the district aforesaid, then and there being duly erapaneled, sworn and charged by the court aforesaid, to diligently inquire and true presentment raake for said district of South Dakota, in the narae and by the authority of the United States of Araerica, upon their oaths, do pre sent: "That Richard Franklin Pettigrew, late of Minne haha County, State of South Dakota, in said district heretofore, to wit: on or about the sixth day of Octo ber, in the year of our Lord one thousand nine hundred and seventeen, at and in the County of Minnehaha, State of South Dakota, and in the division and district aforesaid, and within the exclusive jurisdiction of this court, and while and when the United States was at war with the Iraperial Gerraan Governraent, pursuant to a joint resolution of the Congress of the United States, approved by the President of the United States on April 6, A, D, 1917, did then and there knowingly, feloniously and wilfully raake, say and utter certain false statements, with intent to promote the success of the enemy of the United States, that is to say, the Ira perial Gerraan Governraent, to-wit: that he, the said Pettigrew, did then and there wilfully and feloniously publicly state and say to one P, F, Leavins, and to other persons to the Grand Jurors unknown, and did then and there direct and cause to be published, printed and circulated through and by means of the 'Daily Argus Leader,' a daily newspaper, pubhshed in the City of Sioux Falls, State of South Dakota, in words and sub stance, as follows, that is to say: " 'There is no excuse for thfs war,' " 'We should back right out of it,' " 'We never should have gone into a war to help the Schwabs make $40,000,000 per year,' " 'This man McAdoo said here that we are 377 in the war from principle to protect our right to trade on the open sea. Not an American was killed except on araraunition boats, and they had no right to be there,' " Syrapathy is being extended to Belgiura. She deserves none. Fifty years ago Belgiura robbed the Congo, This raade Belgiura wealthy, but three-fourths of her people did not share in this wealth. If she is now indem nified it will go to the men who robbed the negroes of the Congo,' " 'One hundred years ago we fought out the alien and sedition law. The party back of it failed at the next election. The sarae struggle is on again,' " 'People desire to know if they are living in the United States or in Russia,' against the peace and dignity of the United States of Araerica and contrary to the forra, force and effect of the statute of the United States in such case raade and provided, "Count Two, "And the Grand Jurors aforesaid, upon their oaths aforesaid, do further present and say : "That Richard Franklin Pettigrew, late of Minne haha County, State of South Dakota, in the said dis trict heretofore, to-wit: On the sixth day of October, in the year of our Lord one thousand nine hundred and seventeen, with force and arras, at and in the County of Minnehaha, State of South Dakota, and in the divi sion and district aforesaid, and within the exclusive jurisdiction of this court, and while and when the United States was at war with the Imperial German Government, pursuant to a joint resolution of the Con gress of the United States, approved by the President of the United States on April 6, A, D, 1917, did then and there, knowingly, feloniously and wilfully obstruct 378 the recruiting and enlistraent service of the United States, to the injury of the United States, in that he, the said Richard Franklin Pettigrew, did then and there feloniously publicly state, say and utter to one P, F, Leavins, and to other persons to the Grand Jurors un known, and did then and there direct and cause to be published, printed and circulated through and by raeans of the 'Daily Argus Leader,' a daily newspaper, pub hshed and circulated in the City of Sioux Falls, State of South Dakota, in words and substance, as follows, that is to say : " 'There is no excuse for this war,' " 'We should back right out of it,' " 'We never should have gone into a war to help the Schwabs raake $40,000,000 per year.' " 'This raan McAdoo said here that we are in the war frora principle to protect our right to trade on the open sea. Not an Araerican was killed except on araraunition boats, and they had no right to be there.' " 'Syrapathy is being extended to Belgium. She deserves none. Fifty years ago Belgium robbed the Congo, This raade Belgium wealthy, but three-fourths of her people did not share in this wealth. If she is now indem nified it will go to the raen who robbed the negroes of the Congo,' " 'One hundred years ago we fought out the alien and sedition law. The party back of it failed at the next election; the sarae struggle is on again,' "Teople desire to know if they are living in the United States or in Russia,' " against the peace and dignity of the United States of Araerica, and contrary to the forra, force and effect of the statute of the United States in such case raade and provided, 379 "Count Three, "And the Grand Jurors aforesaid, upon their oaths aforesaid, do further present and say: "That Richard Franklin Pettigrew, late of Minne haha County, State of South Dakota, in said district heretofore, to-wit : on the sixth day of October, in the year of our Lord one thousand nine hundred and seven teen, at and in the County of Minnehaha, State of South Dakota, and in the division and district aforesaid, and within the exclusive jurisdiction of this court, and while and when the United States was at war with the Iraperial Gerraan Government, pursuant to a joint resolution of the Congress of the United States, ap proved by the President of the United States on April 6, A, D, 1917, did then and there feloniously and wil fully cause and atterapt to cause disloyalty, insubordi nation, mutiny and refusal of duty in the railitary forces of the United States, to the injury of the United States, in that he, the said Richard Franklin Pettigrew, did then and there feloniously publicly state, say and utter to one P, F, Leavins, and to other persons to the Grand Jurors unknown, and did then and there direct and cause to be published, printed and circulated through and by raeans of the 'Daily Argus Leader,' a daily newspaper, published and circulated in the City of Sioux Falls, State of South Dakota, in words and substance, as follows, that is to say : " 'There is no excuse for this war,' " 'We should back right out of it,' " 'We never should have gone into a war to help the Schwabs make $40,000,000 per year,' " 'This man McAdoo said here that we are in the war from principle, to protect our right to trade on the open sea. Not an Araerican was killed except on ammunition boats, and they had no right to be there,' " 'Sympathy is being extended to Belgium, She deserves none. Fifty years ago Belgiura 380 robbed the Congo. This raade Belgiura wealthy, but three-fourths of her people did not share in this wealth. If she is now in demnified it will go to the men who robbed the negroes of the Congo.' '¦ 'One hundred years ago we fought out the alien and sedition law. The party back of it failed at the next election. The sarae struggle is on again.' " 'People desire to know if they are living in the United States or in Russia.' against the peace and dignity of the United States of Araerica, and contrary to the form, force and effect of the statute of the United States in such case raade and provided. "R. P. STEWART, United States Attorney in and for the State and District of South Dakota, "JAMES ELLIOTT, Judge, "Naraes of witnesses sworn and exarained before the Grand Jurors: P, F, Leavins," Was I indicted because I had told a lie or because I had told the truth? Was I right in ray charges or was I wrong? Was it a war for deraocracy or was it a profiteers' war? I did not have to wait long for the answer to these questions. In fact, the answer carae with a rapidity and with a corapleteness that was overwhelraing. First, there was the stateraent frora the Chairman of the Federal Reserve (Bank) Board, Mr, Harding; then came the revelations with regard to Hog Island and to the airplane contracts ; later Mr, Wilson, in his St, Louis speech, blurted out the frank adraission — "Of course this was a coraraercial war," and finally there appeared the figures showing the profits raade by the leading industries during the war years. For exaraple, there was Bethlehera Steel, Schwab's 381 own plant. The profits of this corapany for 1911, 1912 and 1913 averaged $3,075,108 per year. In 1915, the profits had juraped to $17,762,813; in 1916 to $43,- 593,968. For 1918, the corporation made a profit of $57,188,769. Iraproveraents and extensions of the plant ate up $24,329,245, while depreciation took $31,- 510,366. See ray indictment. Schwab exceeded forty raillion a year. Again, there was du Pont Powder which reports its war profits in the following words, which are taken frora its financial report for 1918. "The stock of the E. I. du Pont de Nemours Powder Company, the pre decessor of the E. I, du Pont de Nemours Company, sold during the early raonths of the war at $125 per share. The share of debenture stock and two shares of common stock of E. I. du Pont de Nemours Com pany, which were exchanged for the former security, are worth in today's market (Dec. 31, 1918) $593, or an increase in value of 374 per cent. In the meantime (1915-18) the total dividends on the comraon stock of the E. I. du Pont de Neraours Powder Corapany and on the exchanged securities of E. I. du Pont de Ne raours Corapany have amounted to 458 per cent on the par value of the original stock. It is difficult to im agine a more satisfactory financial result." It is difficult. But it is very easy to picture the misery and suffering of war and the great price in ex cessive taxation that the purchasers of the du Pont product have saddled on the working people in their respective countries. Then there were the producers of copper. The Ana conda Copper Mining Corapany paid $65,275,000 in cash dividends during the years 1915 to 1918, It also paid off a funded debt of $15,000,000 in the same period, and invested, besides, $54,466,703 in better- raents. After this outlay, it had, on January 1, 1919, a net quick surplus of $39,926,000 as compared with $4,688,204 in 1914, The twenty-nine leading copper producing companies paid $540,846,855 in cash divi- 382 dends during 191", 1916, 1917 and 1918; expended $354,704,290 in betterments and improvements during 1915, 1916 and 1917, and in 1918 their surplus was $330,798,593 as compared with a surplus of $96,711,392 on the same day of 1914, The United States Steel Corporation, with a capital stock of about $750,000,000, made a profit, in 1916 and 1917, of $888,931,511, These are figures published by the company itself. When the steel Trust was formed this capital stock represented little besides water, but during two war years the corporation made over 100 per cent on it. These are individual cases. In Senate Document 259, 65th Congress, Second Session, are published the figures showing the profits raade by American business raen during the year 1917, This docuraent contains 388 pages, and in it are listed, by nuraber, the araount and per cent of profits raade in 1917 by American busi ness men. The results are almost unbelievable. Among the industries engaged in manufacturing and selling the principal necessaries of life there is not a single trade in which at least one concern did not make 100. per cent or more on the capital stock. The profits for 122 meat-packing concerns are re ported as follows: 31 concerns raade profits for the year of less than 25 per cent ; 45 raade profits of frora 25 per cent to 50 per cent; 46 made profits of over 50 per cent; and 22 of over 100 per cent. In this indus try, half of the concerns made a profit of more than 50 per cent and a sixth of over 100 per cent. These sound like large returns, but they are out distanced by the figure for the 340 bituminous coal pro ducers in the Appalachian field. Among these con cerns there were only 23 that reported profits of less than 25 per cent; 68 reported profits of 25 but less than 50 per cent; 79 reported profits of from 50 to 100 per cent; 135 reported profits of 100 to 500 per cent ; 21 reported profits of from r 00 to 1000 per cent, and 14 reported profits of over 1000 per cent. Half of £83 the concerns in this industry showed profits of raore than 100 per cent, and one in each ten reported profits of more than 500 per cent. The whole report is filled with just such figures. Profits of under 25 per cent are unusual. Profits of 50 per cent; 100 per cent, and 500 per cent in a single year are quite coraraon. How moderate I had been ! I had talked about our entrance into the war enabling Schwab and his asso ciates to make forty millions a year. What they had actually done was to make billions, I had only half stated the case for the profiteers. True to the prin ciples of their ferocious systera, they had taken advan tage of a national eraergency to becorae fabulously rich. In July, 1920, I wrote the Pittsburgh Dispatch the following letter which they published at once, "Sioux Falls, S, Dak,, July 24, 1920, "The Pittsburgh Dispatch, Pittsburgh, Pa, "You asked me to answer this question: 'Was the object of the war gained?' "I suppose ray answer must be confined to the United States' participation in that con test. So far as the United States is con cerned, the very object and only object for which we entered the war has been fully gained. We went into the war because the great financial and industrial interests cen tered in New York, who are the real govern ment of the United States, conceived it to be for their gain or profit to put the United States into the European conflict. They had sold billions of dollars' worth of material to England, Russia, France and Italy, at enor mous prices, reaping a marvelous profit. But as the war progressed and the demands on the part of those nations for credit increased, the 384 financiers and controllers of American indus try who were furnishing war material, be came alarmed, and feared they would not be able to collect their clairas against these European nations who were approaching bankruptcy, and they therefore deterrained to put the United States into that controversy, and have the United States loan raoney to the European nations, to pay off the obligations which they held against thera, "They, therefore, started an agitation in the United States to work up the people of this country in favor of going into the war. They bought up, or already owned, all the great daily newspapers. They ordered and paid for preparedness parades in every town of consequence in the United States, They lied to and deceived the American people with exaggerated stories of the Germ,an atrocities, until they created a war frenzy in this country, "They had been at work on the President for months. They had a coramittee, a secret coraraittee, paid by thera, planning every phase of the war before we went into it, "E. P. C. Harding, of the Federal Reserve, President of the Bank Board of the United States, on March 22, 1917, published the fol lowing stateraent: " 'As banker and creditor, the United States would have a place at the peace conference table, and be in a much better position to re sist any proposed repudiation of debts, FOR IT MIGHT AS WELL BE REMEMBERED THAT WE WILL BE FORCED TO TAKE UP THE CUDGELS FOR ANY OF OUR CITIZENS OWNING BONDS THAT MIGHT BE REPUDIATED.' " "The above was issued before we entered 385 the war, and immediately on our entering the war, these corporations rushed through a loan to the European countries, not one dollar of which ever went to Europe except in the forra of war material, "As a result of the war the United States is a debtor and these corporations and their rep resentatives, are creditors of the United States instead of the European nations. Their profits run into the tens of billions. The very object for which we went to war has, there fore, been fully gained. "Conclusive proof in the fact we have 16,- 500 more raillionaires than we had before we went into the war, — R, F, Pettigrew," This letter states the whole issue. The country was in peril. Men were dying. The energies of the nation were being directed to the win ning of a victory. The ignorant, unthinking millions were being mobilized to raake the world safe for de raocracy, and the profiteers were piling up their wealth. There was no raisunderstanding about this raatter. It was not an accident. The profiteers did not and could not stop profiteer ing because the systera to which they belong is a profit eering system. The profiteer is a product of a System of society that provides the largest rewards for the man who is raost successful in robbing his fellows of the results of their labor. There was profiteering before the war — on a small scale. But during the war — in a critical period — the system was tested and it proved to be what many of us had thought it — a legal ized system of robbery ; a method of enabling the rich to live off the toil of the poor, and to fatten out of their privations. The World War showed capitalism at its best anc' at its worst. In every one of the great capitalist countries engaged in the war, the sarae kind of profit- 386 eering went on. The American profiteers made more than their European competitors because there was raore to raake. Everywhere they got what they could. Capitalism produced the war, Capitalisra profited by the war. The utter incompetence; the crass bru tality of the system caused it to break in Russia, in Germany and Austria, Today it is in full swing, stronger than ever in England, France and the United States, Will the people who do the work and pro duce the wealth ever realize that capital is stolen labor and its only function is to steal more labor? 387 XXIX. The Russian Revolution The war was an affirmation of capitalisra. The Russian Revolution was the answer of the workers. The war wrecked most of the capitalist nations of Europe — wrecked them financially and economically — and those that survived the period of hostilities were caught in the raaelstrora of high prices that followed the signing of the Armistice. During raore than four years the producers of Europe turned frora making useful things and devoted themselves to making the means of destruction. The result was fatal. Europ ean capitally had written its own death sentence. The old system broke down first in Russia, The revolution began there, and no sooner did it show itself than the other capitalist nations — the forraer Allies of Russia, — turned against her and fought her with arraies, with a blockade, and with every other device that railitary and diploraatic experts could devise. The deraands of the Russian people were very siraple. They asked for work, bread and peace — three thing.' that the capitalist systera in Russia was unable tc provide. Hence the Revolution. There have been scores of revolutions during the past two centuries, and after each one of thera that proved successful, the people have written a Constitution mod eled on the Constitution of the United States — a con stitution that permitted the econoraic raasters to carry on their work of exploitation with irapunity. The Rus sians abandoned this precedent. Instead of writing a political constitution, they did a very new and a very wonderful thing — they wrote an economic constitution, based on the proposition that the exploitation of one man by another raust cease. The Bill of Rights was added to the Constitution of the United States as an afterthought. It is not in the body of the Constitution at all, but takes the form of "amendraents," The Russian Constitution begins with a Bill of Rights, 388 The rights enuraerated in our Constitution are civil rights, free speech, free press, religious freedom, rights of accused persons, rights in the case of civil trials. The right to be admitted to bail, etc. The Russian Bill of Rights begins with a statement of economic prin ciples, Chaper 1 of the Bill of Rights declares the existence of a Soviet Republic in Russia, Chapter 2 begins with these words, — "Bearing in mind, as its fundamental problera, the abolition of exploitation of raen by raen, the entire abolition of the division of the people in classes, the suppression of exploiters; the establishment of a Socialist society, and the victory of Socialism in all lands, the Third AU-Russian Con gress of Soviets of Workers', Soldiers' and Peasants' Deputies further resolves: "a, for the purpose of realizing the socialization of land, all private property in land is abolished, and the entire land is declared to be national property and is to be apportioned among husbandmen without any com pensation to the former owners, in the raeasures of each one's ability to till it, "b. all forests, treasures of the earth, and waters of general public utility, all irapleraents, whether aniraate or inanimate, model farms and agricultural enterprises, are declared to be national property. "c. as a first step towards the complete transfer of ownership to the Soviet Republic of all factories, raills, raines, railways, and other raeans of production and transportation, the Soviet law for the control by work men and the establishment of the Suprerae Soviet of National Economy is hereby confirmed, so as to assure the power of the workers over the exploiters. "d. .with reference to intemational banking and fi nance, the third Congress of Soviets is discussing the Soviet decree regardin.g the annulraent of loans raade by the Governraent of the Czar, by landowners and the bourgeoisie, and it trusts that the Soviet Governraent will firmly follow this course until the final victory of 389 the international workers' revolt against the oppres sion of capital, "e, the transfer of all banks into the ownership of the Workers' and Peasants' Government, as one of the conditions of the hberation of the toiling raasses from the yoke of capital, is confirmed, , "£ universal obligation to work is introduced for the purpose of eliminating the parasitic strata of society and organizing the economic life of the country," All wealth and all the comforts of civilization are the products of labor applied to the earth, Man is a land animal and his right to the soil is inherent and funda raental. The chance to reach the land and the right to reach it are as great as the right to use the air and the water of the earth. The Soviet Constitution allows every person over eighteen years of age to vote if they are eng'aged in sorae useful eraployraent. Thus disfranchising the lawyers and the preachers. A lawyer spends the first half of his life over the past and the last half trying to apply the past to the present and lets the future go to hell. A preacher spends the first half of his life over the past and the last half over the future and lets the pres ent go to hell. I ara sure neither are engaged in a useful occupation. Then follows a provision regarding the right to bear arras. After it there coraes the forceful and splendid declaration against capitalist imperialisra and in favor of a self-governing and self -deterraining world. Sec tions 4 and 5 of Chapter 3 provide: "Expressing its absolute resolve to liberate mankind from the grip of capital and ira perialism, which flooded the earth with blood in this present most crirainal of all wars, the third Congress of Soviets fully agrees with the Soviet Governraent in its policy of break ing secret treaties, of organizing on a wide 390 scale the fraternization of the workers and peasants of the belligerent armies, and of making all efforts to conclude a general demo cratic peace without annexations or indem nities, upon the basis of the free deterraina tion of the peoples. "It is also to this end that the third Con gress of Soviets insists upon putting an end to the barbarous policy of the bourgeois civ ilization which enables the exploiters of a few cho.sen nations to enslave hundreds of raillions of the toiling population of Asia, of the col onies, and of small countries generally." Following this protest there is a section (8) setting forth the attitude of the Soviet Governraent toward those portions of the forraer Russian Erapire which were not yet incorporated into the Soviet Republic : "In its effort to create a league — free and voluntary, and for that reason all the raore coraplete and secure — of the working classes of all the peoples of Russia, the third Con gress of Soviets raerely establishes the funda raental principles of the federation of Russian Soviet Republics, leaving to the workers and peasants of every people to decide the follow ing question at their plenary sessions of their Soviets: tvhether or not they desire to par ticipate, and on what basis, in the federal gov ernment and other federal Soviet institu tions." Conservative thinkers and publicists deride these provisions on the ground that the Soviet Governraent has not yet been able to put thera fully into practice. They jest. Have we been able to enforce the Prohibi tion Araendment?, to enfranchise the Negroes in ac cordance with the provisions of amendment 14?, to guarantee the right of free speech in accordance with 391 amendraent 1 ?, or to protect Araerican citizens against unreasonable search and seizure in accordance with araendment 4? To ask these questions, is to answer them. A Bill of Rights presents the aspirations and the political ideals of a people — nothing more. The ideals of our forefathers were of a political nature, as is clearly indicated in the Bill of Rights which they drew up. In the same way, the ideals of the Russian work ers are of an economic nature, as is clearly indicated by the Bill of Rights which they have drawn up. The tiraes have changed since the Constitutional Convention raet in 1787. Then raen were striving for political freedom. Now they are seeking economic eraancipation. It is all part of the same struggle — ^for liberty, but the new times have called forth new ideals. The Russian Bill of Rights is a new step and a long stop in the direction of freedom. There were nearly 170 raillions of people in Russia when the war began in 1914. After three years of bloody struggle they deraanded work, bread and peace, and they proceeded to get these things in the only way that the workers will ever get thera frora the raasters — by taking them. The beneficiaries of privilege will not yield unless they are compelled to by force of cir cumstances that are too strong for thera to control. The embodiraent of that force is the organized will of the people who do the worlds' work. The Russian Revolution is the greatest event of our tiraes. It raarks the beginning of the epoch when the working people will assurae the task of directing and controlling industry. It blazes a path into this un known country, where the workers of the world are destined to take frora their exploiters the right to con trol and direct the econoraic affairs of the coraraunity. 392 xxx. The Leai.ue to Perpetuate War The war has just begun. I said that when the Arm istice terms were published and when I read the Treaty and the League Covenant I felt raore than ever con vinced of the justice of my conclusion. The Treaty of Versailles is raerely an arraistice — a suspension of hos tihties, while the combatants get their wind. There is a war in every chapter of the Treaty and in every section of the League Covenant ; war all over the world ; war without end so long as the conditions endure which produce these documents. The League of Nations is a League to perpetuate war. I do not charge that its sponsors intended this, though I have sufficient respect for the intellectual ability of men like Balfour and Lloyd George, Makino and Orlando to believe that they knew quite well what they were about. But whether by intention or accident, the "Big Five" presented the world with two documents, the atterapted enforceraent of which is destined to bathe the earth in blood and wipe out what remains of "western civilization." The advocates of the League of Nations claim for it that it will end war, "If we do not adopt it," says Mr, Wilson, "we will break the heart of the world," If we do adopt it, we shall help to bleed the western world white in the series of frightful international struggles that will follow upon any attempt to enforce the Treaty and the League Covenant as they are written. Let rae state, briefly, ray reasons for believing that the League of Nations is a War League rather than a Peace League, 1, The League of Nations is not a league of all na tions. On the contrary, three kinds of nations are deliberately excluded frora it, — ^the Socialist nations like Russia ; the eneray nations, like Germany ; and the "undeveloped nations," Hke Mexico, The "Big Five" who wrote the Armistice Terras, the Peace Treaty and the League Covenant were Great Britain, France, Italy, Japan and the United States, These are the five great 393 capitalist empires of the world. They are also the five leaders among the allied nations. The League is therefore a Holy Alliance of capitalist erapires against socialist states ; a League of the Allies against the Cen tral Powers ; a League of the five great exploiting na tions of the world against those whom they propose to rob. This situation creates a series of alignments any one of which may lead to an outbreak at alraost any raoraent. 2, On the one hand, there is the alignraent against Russia, Ever since the Revolution of 1917, the Allies have done everything in their power to destroy the government of Russia, They have sent their arraies against her at Vladivostock and at Archangel; they have attacked her with their fleets on the Black Sea and in the Bgjtic; they have financed and equipped those like Yudenich, Kolchak, Denikine and Wrangle who were in rebellion against the established govern ment of Russia ; they have financed and equipped the Ukranians, the Finns and the Poles, on condition that they should make war on Russia; they have estab lished a "sanitary cordon" of border states in an effort to cut Russia off from the rest of Europe; they have maintained a blockade which has resulted in the death, by starvation and by disease, of Russian men, women and children. During three long years, the Allies have carried on these activities without succeeding in forc ing a declaration of war frora Russia, The Russian people are very patient. They had need of patience under the Czars, but there is a limit to everything. There are a hundred and fifty raillion of Russians, These people feel bitter against the cap italist govemraents that have attacked and blockaded thera. They have an array — the largest now in Europe, if report speaks true. Some day that array will come into action against the arraies of the Allies — corae with the fervor and ardor of revolution, and when it comes, Europe will witness another terrible massacre and another fearful destruction of wealth, 394 3, Then, there are the eneray countries — defeated in the great war, stripped of their navies and of their raerchant ships ; of their colonies ; of their investraents in foreign countries; of their coal and iron; disraera- bered, saddled with heavy indemnities in addition to their onerous taxes. These enemy countries are suf fering under the smart of a terrible military defeat. But more than that, after revolting and driving out their despotic rulers they have been subjected to an economic punishment more frightful than any that has ever been administered in raodern tiraes. The gov erning classes feel this ; the people feel it, and they are all ready, at the first opportunity, to rush to arras in vindication of their international position and of their national rights, which they believe were grossly vio lated by the Treaty of Versailles, No opportunity was lost; no effort was spared to hurailiate the defeated and to visit upon them a drastic econoraic punishraent. The vanquished and hurailiated are preparing to corae back, and the Allied Nations know it, 4, There are the exploited countries; the "unde veloped" portions of the earth; the promising invest ment field; the good markets — Mexico, India, Korea, Egypt, Persia, China and the others, Africa has been under the heel of Western business men for genera tions. The same thing is true of India and other por tions of Western and Southern Asia, These peoples, numbering hundreds of millions, have been kept in ig norance and held in bondage, while the British, Ger man, French, Belgian and other traders and investors made free with their property and their lives. In the Belgian Congo, the black men were treated with in describable cruelty; the people of India, after a cen tury and a half of British rule, are alraost wholly illiterate, while their industries have been deliberately curtailed in order that the Indian market raight be open for British manufacturers. Mexico has been vic timized again and again by the United States. Hayti, Santo Doraingo and Nicaragua have felt the weight 395 of America's iraperial fist. Under the Treaty, with its "Mandates" and its guarantees of territorial integrity, these peoples, coraprising the bulk of the world's popu lations, are to be continued in "tutelage" while^^Uied Capitalists plunder and allied govemraents tax and kill. The Baku Conference of the Eastern People (Sep teraber, 1920) is the beginning of an organized protest that challenges the right of the west to continue its exploitation of the East, India is aflarae with revolt, and the sraaller eastern countries are awaiting the sig nal to begin a holy war, a religious crusade, against the doraination of Western Civilization, Whether the pro posed expulsion of the Sultan frora- Europe will start the conflagration, or whether some other spark will set it off reraains to be seen. But the spirit of liberation is abroad in the earth, and any group of nations that seeks, with or without a covenant, to continue a system of virtual slavery, is heading for bitter and terrible conflicts, 5, Finally, there is an itera of iraraense signiflcance. The "Big Five" are five capitalist empires, each one of which is struggling for markets and for investraent op portunities. Britain and Germany fought the recent war because Germany challenged Britain's economic supreraacy. Today each of the Big Five is busy with just such an econoraic battle as that which preceded the war of 1914. British and Araerican oil interests are in open conflict; Japan is seeking to exclude western bankers frora the Chinese flfeld; France and Italy are bitter rivals for the control of the Mediterranean; Britain and France are contending for the resources of Central Europe and of the near East. Besides that, it raust not be forgotten that naval and railitary ap propriations are larger araong the Big Five than they were before the world war. Any one of these issues raay lead to war — ^between the Allies and Russia ; between the Allies and the Cen tral Powers; between the Allies and the victiras of their exploitation ; between the Allies themselves. One 396 or more of them is sure to result in war within a decade, if the Treaty and the League Covenant are enforced. The League of Nations is a League of War ; its present form,.its very existence spells war, I have another reason for insisting that the League will make for war rather than for peace — a reason growing out of the League's own record. During its brief existence, the League has witnessed raore than a score of wars in Europe, Africa, and in Asia, These wars have been participated in by Great Britain, France, Italy and Japan — the leading exponents of the League, France has sent raen and raoney to back Po land and to uphold General Wrangle's insurrection against the Russian Government, while her armies are busy conquering and subjugating Syria, Great Bri tain is flghting in Ireland and in Mesopotaraia, Spain, France and Italy all are fighting in North Africa, and Thrace is being ravaged by contending armies. Since the League carae into being, Europe has blazed with war. The League is not a war preventer, but a war raaker. So rauch for the character and history of the League, Now as to its purposes. These are three in number: 1, To crush out Socialism, 2, To safeguard the British Empire, 3, To unite the exploiters against the exploited. The relation of the League and of its principal raem bers toward Soviet Russia is a sufficient guarantee of the first point. The position of the British Empire, corabined with the working of Article X of the League Covenant establishes the second, British statesraen insisted that they desired nothing as a result of the war. As things turned out, however, they received over two raillion square railes, including iraportant possessions in East Africa, Mesopotaraia, the lands bordering the Red Sea and the Persian Gulf, Persia, Thibet, and the Gerraan possessions in the South Pacific. This gives the British Erapire control over soraething like a third of the earth, including a 397 continuous stretch of territory frora the Cape of Good Hope to Cairo and from Cairo to Bengal, These things are guaranteed under the Treaty, and Articlce X of the Covenant provides that : "The merabers of the League undertake to respect and preserve against external aggression, the territorial integrity and existing politi cal independence of all raerabers of the League," This clause comraits all raerabers of the League to back the British Empire in its efforts to hold hundreds of rail lions of human beings in subjection. The original Holy Alliance organized in 1815 be tween Austria, Russia, Prussia and France, carried a mutual guarantee to protect frora intemal disturbances like the French Revolution, the members of the Alh ance, This new Alliance guarantees its merabers against the possible loss of their colonies and posses sions by any forra of external oppression. They bind each other to help hold what they have stolen in this and previous wars. According to the original plan, the United States was to furnish the men and the raoney necessary to carry this Covenant into effect. The League is intended to organize and unite the exploiter nations. Under Covenant provisions, the ex ploited nations have no rights that the exploiters are bound to respect, Japanese troops will reraain in Korea; British rule stays in India and Araerican Ma rines hold their ground in Hayti, The robbers will unite and plunder their victims in severalty. Thus, the I^eague is intended, not to secure freedom and self-determination, but to perpetuate autocracy and the rule of force of which the leading merabers of the league are the chief exponents. The Treaty and the League Covenant intensify every cause that led up to the world war. International Capitalisra, with its econoraic rivalries and coraraercial struggles is perpetuated and consecrated; the exploi tation of the weak by the rich and the strong is pro vided for ; out of such a situation there can come noth ing less than revolution and a struggle for indepen- 398 dence on the one hand and the bitterest conflicts be tween the members of the League on the other. The League will perpetuate, will corapel war. It raakes peace unthinkable ; irapossible. It conderans the world to generations of blood-letting and destruction. The League is a logical product of the forces that raade the last war and will prove an instruraent of immense value in bringing about the next one. 399 XXXI. The 1920 Election The World War gave the business interests the op portunity for which they had been waiting. At the same tirae that they made raillions they were able to corae out in the open as the controlling force in Araeri can public life. Their answer to the Russian Revolu tion revealed their international stand. The events surrounding the election of 1920 showed how far they were ready to go in dorainating the lives of the Araeri can people, I spent the winter of 1919-1920 in Washington and New York, where I paid close attention to the business situation, I was particularly interested in the question as to whether a panic was going to be ordered by the New York bankers. The raasters of business life discussed the high cost of living, in other words, the cost of food and raw raa terial, and how to reduce prices. They knew that the inflation of the currency was what had increased the price of all articles not controlled by the trusts, and they discussed the question of contracting the volurae of raoney, for we have in circulation in the United States today nearly fifty-nine dollars per capita as against seventeen dollars in 1880, But the issue of raoney under the present systera is very profitable to the bank ers. They had ra.ade raore than a billion out of the issue of raoney since the United States went into the war, and had inflated the currency, since the present bank act went into effect, by several billions of dollars. The bankers disliked to contract the currency because the issue of raoney is so profitable, and they finally hit upon another raethod and said, "We will contract the credit," There were two fields ifi which it was possible to contract credit. One was the field of big business. The other was the field of agriculture, A contraction of credit to big business would have hit raanufacturers and merchants (themselves), A contraction of agri- 400 cultural credits, on the other hand, would hit only the farraers who are unorganized and in no position to strike back, A decision was therefore raade to curtail credit by compelling all the banks to restrict their loans in the farm-producing area of the United States, After the whole raatter had been argued through, an order was sent put frora New York to all of the reserve banks throughout the United States to restrict their loans and to refuse credit on all the products of huraan toil not controlled by the corabinations. The result has been, of course, the reduction in the price of everything that is produced on the farra. Meat, corn, cotton, oats and hay are all far below their spring selling prices, not because crops were unusually large, but because the farmers were compelled to sell all of their crops in the raarket at the sarae tirae. They were corapelled to sell because they could not borrow. They would not bor row, not because raoney was scarce — there is more money in the country than at any time in its history — but because the banks refused it to the farmers. Dur ing this same tirae loans were raade to Norway, Bel^ gium, France, There was plenty of raoney for that, but food prices raust corae down, and the way to bring thera down was to corapel the farraers to sell by with drawing all credits and calling all existing loans. While American farraers were being refused credit, the Bankers' Club, which is the governraent of the United States, entered into a "consortiura" with the bankers of England, France and Japan to loan raoney to China for railroad concessions and concessions of rainerals and coal, Vanderlip and Lament were in China all through April getting these concessions. This contract between the United States, England, France and Japan is a written contract and the Secretary of State is a party to it ; and yet the people of the United States are refused access to it. This same club in New York, composed of the bank ers and the great industries, discussed the question of the cost of labor. They said, "Labor is claraoring for 401 raore pay because of the high cost, of living. We can reduce the cost of living by withdrawing credit and robbing the farraers, but we must also reduce wages," and they discussed for weeks the question of importing Chinese and Japanese laborers frora the Orient, Their newspapers began to agitate the question, feeling out . the public, but the opposition was so strong against taking down the bars and iraporting coolie labor that they turned their attention to Europe and made ar rangements for the importation of laborers frora the starving centers of Europe at wages that would send an Araerican laborer to the poorhouse. These Euro peans are now coraing in at the rate of 100,000 a raonth. It is contract labor, in violation of the laws of the United States. Unless American wages were reduced, it would be irapossible for American manufacturers to corapete in foreign raarkets, and unless food prices carae down, wages could not be reduced without lowering efficiency. Therefore, the food prices carae down and the farraers .stood the loss, and this was done on the eve of an elec tion. In years gone by the business interests would not have dared to operate so openly. That they do it now is the proof of their power, and of the conterapt in which they hold the Araerican people. So rauch for the events which preceded the election. It was a period of open-handed assuraption of power by the business interests. Now for the carapaign itself. My interests were centered on the Republican cara paign because it was evident from the start that the Republicans were destined to win. The Republican Convention was a very grand affair I arrived in Chicago on the second and stayed until the twelfth of June, and saw the whole operation. I had a friend who has been a raeraber of the Republican Na tional Convention for forty years, and has been one of the leaders in every convention, and he reported each raorning — between one and two o'clock — the result of every conference, so that I knew in advance just what 402 the convention was going to do the next day; and it always functioned according to prograra. The representatives of the great interests arrived in a body and took charge of the convention frora the start. It is the first tirae they have ever done this. There was Gary, head of the Steel Corporation; Davi son and Lament of Morgan & Co, ; F, H, Allen of Lee Higginson & Co, ; Atterbury, vice-president of the Penn sylvania Railroad, and Dick Mellen, of Pittsburgh, whose family is, I suppose — next to Rockefeller — the richest in Araerica, Then there were George Baker and Frank Vanderlip and Daniel G, Reid, These raen took no chances. They went to Chicago, wrote the platforra, and norainated the candidate. They were willing to take Lowden or Wood, but Borah said that he would bolt the convention if they naraed either one of thera. They were holding Knox and Hoover, Har ding and Senator Watson of Indiana in reserve, and were willing to take any one of thera, but they did not want a bolt in the party. These financiers are the raen who put the United States into the European war. They furnished the money to pay for preparedness parades all over the country ; they are out for empire. They wanted to put a plank into the platforra providing for a league of nations, or, rather, the Versailles Treaty with raild reservations, and they had prepared such a plank and they would have adopted it, but Borah and Johnson went before the coraraittee and told thera they would bolt if they put that plank into the platforra. That, of course, destroyed Knox's chances, for he had agreed in advance that he would stand by and carry out such a plank if he were norainated; but without the plank these men would not trust Knox, and that ended his chance for the nomination. They then canvassed Sproul of Pennsylvania, but Penrose wired that he would not stand for Sproul, who was trying to administer his political estate before he was dead. They finally concluded that Harding was the 403 man least objectionable and most certain to stand right on their plans to exploit the rest of the world. In other words, Harding was from Ohio — which they raust carry in order to win — and he was sound on the question ofthe comraercial conquest of the earth by the United States, The business interests naraed Harding, They would have preferred a stronger man — Knox of Pennsylvania was the favorite — but Harding was raore available, so Harding was chosen. Just a word as to the record of this latest President of "the greatest comraunity on earth," as published in the "Searchlight," after a careful study of his six years in the Senate: "Harding probably ranks below every other Senator in initiative, activity and accoraplishraent. "Neither his friends nor his eneraies can connect his narae with a single outstanding issue, good or bad, "He neither introduced nor championed even one big constructive measure, "He was absent or dodged 1,170 roll calls and quorum calls, "All the bills and resolutions he introduced were local or private in character, except eight. None of these eight was of big importance, "In all matters of politics, economics and spoils he was a follower of the Old Guard bosses — Penrose, Smoot and Lodge, "On Issues at all iraportant he voted with the pro gressive group only nine times in six years, "He has voted for the liquor interests thirty tiraes, and against them only twice, "He favored woman suffrage after rauch reluctance and indecision, "He voted for the Curarains Railroad Bill, with its anti^strike provision, "He stood consistently against conservation, voted for the vicious Shields water power bill several tiraes, "On every important test between capital and labor, he voted with capital, 404 "He opposed public ownership in every forra, "On revenue measures, he voted against every amendment to increase the tax upon profiteering and large incomes, "He voted and spoke for conscription as a permanent policy, "He opposed disarmament for all nations," Harding never read the Declaration of Indepen dence and never heard of Thoraas Jefferson, Discuss ing Philippine independence January 28, 1916, Harding said : 'Independence was not the inspiration of the War of the Revolution, , , , The Araerican Republic never gave a thought to the "consent of the governed"; never gave a thought to the violation of "inalienable rights" , , , I know what is in our hearts, , , , And if we are to go into the Orient for an expansion of cora raerce and trade, I fancy that the possession of these rich islands will be very much to our advantage,' " The big bankers, who dominate our foreign, as they dorainate our doraestic policy, have registered their full deterraination to take the billions they raade out of the war as profiteers and reach out for the oil and iron and coal of the world and, by concessions and the grant of privileges, exploit the great natural resources not only of North and South Araerica, but of Asia and Africa, Vanderlip and Laraont spent all of April and half of May in China and Japan, securing concessions for build ing railroads and the right to develop the great coal, oil and iron deposits of that country. They had their agents also in Siberia, Their prograra is to make a contract with Mexico — they are going to call it a treaty — by which they can exploit all the resources of Mex ico. If Mexico will not raake the treaty, after Harding is inaugurated, our army will march into that country. They will proceed at once to build a bigger navy than England has, and they are fully deterrained to use the resources of the navy of the United States to carry out their iraperial policy. They proposed to continue to ex ploit the laborers of this country and force what they 405 plunder from labor on to the other nations of the world by coraraercial regulations and concessions, which are to be backed up by the full force of the army and the navy of the United States, We are no longer a republic or democracy or any semblance of either one. The entrance of the United States into the great war extinguished all possibilities in that direction. We are a feudal aristocracy with artificial persons for our feudal lords, the raost cruel forra of society it is possible to imagine. The old feudal aristocracy was coraposed of natural persons with sorae huraan syrapathy; but our feudal lords have none of these attributes. The situation leads rae to repeat what I cannot say too often — that capital is stolen labor and its only func tion is to steal raore labor. This has been true since Lincoln pointed it out raore than seventy years ago, and it is equally true today when the power in the hands of the capitalists is greater than it has been at any tirae in history. Back of all this prograra are the voters of the United States, Thrilled by the World War; terrified by the "Bolshevist Menace," as it has been descil-ibed by the press ; lukewarra on the question of raixing up in the chaos of European politics and finance ; stiraulated and, at the sarae time, reassured by four years of extraordi nary "prosperity," sixteen raillions of voters went to the polls on Noveraber 2, 1920, and cast their votes for Harding, the norainee of Big Business — ^the acceptable and accepted representative of the most sinister forces in Araerican public life, Harding's plurality of seven millions — unprecedented in presidential elections, gives the Republican party an assurance of at least eight years of unquestioned power. The Great War is over. Peace has been restored. Sanity is supposed to have replaced the hysteria of war frenzy. Yet Harding, spokesman of plutocratic iraperi alisra, is in the White House, while Debs, the champion of economic eraancipation, is in the Atlanta penitentiary. 406 X.\XII. CArrr.\LisM The people of the United States are playing with fire. They are experimenting with an unworkable system of social organization — a system that has been tried re peatedly during the past three or four thousand years, and that has destroyed civilization as often as it has been tried. The form of the experiments has been dif ferent, but their essential features reraain the same. Let rae review these features briefly, because they lie at the foundation of our whole public life. First, there is the concentration of wealth in the hands of a few raen — "self-raade," "irresponsible" — owing no allegiance to anything save our own des tinies and their own arabitions. These wealth-lords, or plutocrats, ruling by virtue of their wealth, have been the bane of every great civilization frora Assyria and Egypt to Rorae, Spain and Great Britain, Two per cent of the people of the United States own sixty per cent of the property of the United States, Yet they produced none of it. By legislation, by craft and cunning, by control of Congress and the courts, they took to theraselves what others produced. Sixty- six per cent of the people of the United States own five per cent of the property of the United States, Yet they produced all of the wealth and have none of it. Why do not the producers of this wealth have what they pro duce ? Because the making of the laws and the control of the courts is in the hands of those who do not work, and this has been true from the beginning of the Gov ernraent, The convention which fraraed the Constitu tion of the United States was coraposed of fifty-five raerabers, A majority were lawyers — not one farmer, mechanic or laborer. Forty owned Revolutionary Scrip, Fourteen were land speculators. Twenty-four were money-lenders. Eleven were merchants. Fifteen were slave-holders. They raade a Constitution to protect the rights of property and not the rights of man, and, ever since. Congress has been controlled by the property 407 owner, and has framed laws in their interests and their interests only, and always refused to frame any laws in the interest of those who produce all the wealth and have none of it. In the second place, the wealth-owning class, because of its wealth-power and its hold on the machinery of society, takes a tribute from the raass of the workers. The character of this tribute varies frora age to age. At bottom it is the same. The owner of wealth, be cause he possesses the things without which the raasses would starve, corapels them to pay hira a return for their use. In Egypt and in feudal Europe, the raasters owned land and exacted rent. Here, in the United States, the raasters own the forests, raines, factories, railroads, banks and insurance corapanies. These things they own through the instruraentality of corporations and therefore their income takes the form of dividends on stocks and of interest on bonds. The forra is irama- terial. The fact remains that the few — whether as landlords or capitalists — hold the choice spots of the earth, and the many, for the privilege of enjoying these choice spots, pay tribute to the few who own thera. These raasses — the workers — the producers — are re warded with the least possible araount upon which they are willing to go on working and reproducing their kind. In old tiraes they were chattel slaves; today they are wage slaves. Forraerly, their raasters took all of their product and guaranteed them a living. Now, a part of the product goes to the workers, but they must keep themselves. In the past the work done by the slave for his raas ter kept the raaster in luxury and enabled hira to hve a life of ease, and, if he desired, of dissipation and waste. Today the rent, interest and dividends paid by the workers to the owners of lands, bonds and stocks enables these owners to Hve in luxury, in idleness and, if they desire, in wasteful dissipation. The owners of Araerican wealth, according to the returns published by the Intemal Revenue office, state on their income 408 tax blanks that their incomes araount to tens and hun dreds of thousands, to raillions and tens of raillions of dollars each year. The raost skilled of the workers seldom make over $100 a week with steady work, and seven-eighths of them raake less than $50 a week. Furtherraore, when hard tiraes corae, it is the worker who goes on the street and starves. The bondholder continues to draw his interest and the stockholder con tinues to receive his dividend. The bondholder, under the law, can insist upon his interest. The corporations take care of the stockholder long after the workers have begun to walk the streets looking for a chance to work. These owners, freed frora the necessity for labor, develop rapidly into a leisure class, while the workers, struggling for existence, constitute a labor class. The leisure class controls the surplus wealth of the cora- ra_unity. Out of this surplus it feeds, dresses and houses itself; buys privileges, corrupts the machinery of the state; invests in foreign exploiting opportunities; struggles with the leisure classes of other countries for the chance to exploit and rob, Araong the masses, who are laboring and producing without getting the value of their product, there is poverty and want. Diseases waste and ravage ; vitality is sapped; energy deteriorates. Perhaps nowhere in the raodern world is the picture raore clearly presented than araong the exploited British factory workers dur ing the forty or flfty years preceding the World War, If the soldiers on the field were coraraon fodder, the men and woraen of Lancashire and Birrainghara were factory fodder. While the leisure class of Britain was shooting grouse and chasing foxes across the ploughed land, the raen and woraen and children belonging to the working raasses were huddled in garrets and cellars — the prey of tuberculosis, rickets, aneraia and want. The leisure class, having nothing better to do, plays at ducks and drakes with international affairs, plunges the country into economic and military conflicts, heaps 409 up great debts, and wastes its own and the country's resources, while the workers do the mass-fighting, pay the taxes and suffer from starvation and disease. Be tween the two classes there springs up hate, class conflict and perpetual dissension. It was not for noth ing that Alexander Harailton wrote, "The various and unequal distribution of wealth," When I entered the public life of the United States, the econoraic ruling class was just stepping into power. There was no leisure class to speak of. There was still an abundance of free land for the workers. The Araer ica that I knew in ray young manhood was still talking, in all sincerity, about "government of, by and.,for the people," In the brief period of my own public experi ence we have adopted a species of feudalism more unhuman and more vicious than any of which history bears a record — a feudalism of artificial persons (cor porations) using their power to exploit the workers in the interest of the parasites. Within ray Hfetirae we have becorae a govemment of corporations whose at torneys are in the House and Senate and throughout the bureaus and departraents of the Governraent, look ing out for the interests of those who pay thera their retaining fees. This is capitalisra — the control of the machinery of society in the interests of those who own its wealth. This was feudalism in France and slavery in Rome and in Assyria. This is the system of dividing the commu nity into two classes — owners and producers — and of rewaiding the owners at the expense of the producers. As I read history, this method of social organization has had and can have only one result. The leisure class rots out and drops to pieces; the workers starve and suffer and die, Soraetiraes they revolt — particu larly in the later years. Generally, they are too weak and too ignorant to do anything raore than labor and reproduce. In the preceding pages I have tried to show how this systera was getting its grip on the United States, Out 410 . of my own experience in public Hfe I have indicated the activity of the land-grabbers, the bankers, the money- ring, the beneficiaries of the tariff, the trust raagnates, the railroad operators and the other raasters of the econoraic world. In Congress and out, year by year, they have taken possession of the country's best re sources, robbed the people through raonojwly, ex ploited and plundered the workers by means of low wages and high prices. Then, with their ill-gotten gains, they have invaded other lands — Cuba, Porto Rico, the Philippines, Mexico, Panama, Costa Rica, Nicaragua and Haiti — and there they have repeated the sarae process, by fair means or foul, gaining possession of the timber, oil, copper and iron, and then forcing the natives to produce these coraraodities for a pittance wage. Behind thera, in these ventures, the plutocrats had the army and navy of the United States to be used when necessary, as they were used against Spain, the Philippines, the Mexicans, the Haitians and the rest. Meanwhile, at home, through the subsidy of political parties — through the passage of legislation — through the courts — through the private control or, where necessary, through the "open purchase of coercion of public raen, the interests have taken possession of the government of the United States, shaping its institu tions, and directing its policies along lines calculated to yield the largest net returns to the plutocracy. The last move in this direction involved the entrance of the United States into the World War ; the conscrip tion of men ; the dispatch of an array to the battlefields of Europe; the suppression of free speech and a free press; search, seizure, indictment, trial, iraprisonraent and the deportation of raen and women in open and flagrant violation of constitutional guarantees and long- established precedent. The Wilson adrainistration and the Supreme Court have demonstrated and established that in tirae of war the Constitution, with aH its araendraents, is but a scrap of paper and of no force and effect. Hereafter, 411 all that the people who do the work and produce the wealth have to do it to unite and get control of the Congress and other branches of the governraent and declare war on some country — any country — and at once proceed to enact laws in total disregard of the Constitution, and all its guarantees, and arrest and imprison all who disagree or protest. It is well for the people who toil to raake a note of this fact. No raan who has regard for the welfare of this country, or who is concerned for its future, can fail to be alarraed at the course that it has followed, and is still following, along the road that leads to erapire and iraperial institutions. There raay yet be tirae, but un less we tum back soon, it will be too late. It behooves the sixty-six per cent of our people to take possession of their Governraent and enact laws so that every raan shall have all he produces. Capital is stolen labor, and its only function is to steal raore labor. 412 XXXIII. The Triumph of Christian Civilization Perhaps I can say more effectively what I tried to write in the last chapter by means of an allegory which tells, in simple form, the story of our blunders. One hundred years ago a colony of English farm laborers, one hundred in number, composed of men, woraen and children — old and young — chartered a ship and started for Australia. They were inspired to go by the proraise of free land — they and their an cestors having been tenants upon an English estate. The ship was a sailing ship and the colonists loaded it with their second-hand furniture, second-hand bed ding and second-hand farm impleraents. They also obtained sorae seeds from a charitable person who was willing to await the success of the colony for the return of his investraent ; and, with the seeds and agri cultural iraplements, they started from England for Australia by way of Cape Horn. The voyage across the Atlantic was successfully made; the cape was rounded and the ship stretched her sails as she moved away into the broad Paciflc. The colonist, who knew little of sailing routes soon got off from the ordinary track of vessels and, when well out in the Pacific Ocean, ran their ship aground upon a sunken reef which stove a hole in the bottom and placed it beyond repair. Consternation prevailed araong the passengers. Some fainted. Others ran up and down the decks, nearly insane from fear. The cooler heads soon re stored order however, and all hands were organized to save what they could out of the wreck. When it became evident that the ship was in no iraraediate dan ger of sinking, the faint-hearted regained courage and all went to work with a will. There were two young men — ^healthy and strong — who seemed to take no interest in the salvage plans, but busied themselves with trying to release from its lashings the only life-boat upon the ship — a very sraall boat, which was all that the colonists, out of their raeagre funds, could afford, 413 A study of the situation showed the leaders of the party that their condition was by no means hopeless. The ship did not fill rapidly and about ten miles south of the wreck, land could be made out. There was no "wind, the sea was calm. Their one boat was too small to be of any great use, so the voyagers decided to build a raft out of the ship and try to reach the land south of them. So they all started to work — with the excep tion of the two young men — constructed their raft on the leeward side of the ship and began loading it with their belongings. Before they had gone far with the loading, they found that the raft would not carry over one-half of the colony. So they took the old and the helpless and the children, and half of the most able- bodied, and proceeded to propel the raft to the land, while the others were picking up and putting in shape the reraainder of the cargo and the stores. The occupants of the raft landed upon the island without difficulty. Apparently, so far as they could see, it was a coraplete and absolute desert. They had no ticed, before they left the ship, that the two young raen, who had been hanging around the life-boat had dis appeared, and that the life-boat, as well as all the arms and munitions on the ship had disappeared with them. These men had rendered no assistance whatever in res cuing their fellow-beings frora the wreck, and they had deserted the ship at the critical raoraent, with the only seaworthy craft that the colonists possessed. After the first raft cargo had been landed, a few of the men returned with the raft to the ship, loaded their impleraents and the reraainder of the food and taking aboard the rest of the colony, returned to the island. For the next day or two, the shipwrecked colonists gave their attention to stripping the ship taking such parts as they could detach, to the island, and construct ing teraporary shelter. After all that could be raoved was taken to the caraping place they had selected, three of the corapany were chosen to explore the island, 414 while others were detailed to raanufacture a teraporary boat in order to see if there were eatable fish in the waters surrounding the island. Those who had been sent to explore the island soon returned with the report that they had found a body of very fertile land several miles in the interior of the island, that this land was about three thousand acres in extent ; that there was a large spring of water in the centre of it, and that it appeared to be the only cultivatable land upon the whole island. They reported further that the two young raen, who had abandoned their fellows were there in possession of the fertile land, and that when the coraraittee proposed to bring all the other people up to the spring of fresh water and the fertile land, the two young raen replied that they, having discovered the oasis, were the lawful owners and they proposed to stand upon their right to retain it. When the committee insisted that the land should not be privately owned but should be the cora raon property of all — as man was a land aniraal and fertile soil was absolutely essential to his existence — the two young raen who had in their possession all of the arms on the ship, first argued that the coraraittee raust not undertake to discourage individual initiative — ^that it would be ruinous to civilization not to en courage individual enterprise and that the land be longed to thera by right of discovery. But, when the coraraittee pressed the point and urged the rights of man, the two young men said : "We have all the arras and araraunition that are on this island, and if you undertake to force possession of this land, we shall fire upon you." After hearing the report of their Coraraittee, the colonists held a raeeting and decided that it would be a great mistake to discourage individual enterprise or in any way throttle individual ambition. They and their ancestors had always paid rent to a landlord ; they had been taught to believe that it was the rights of property that were sacred and not the rights of raan, 415 and so they resolved to raove on to the three thousand fertile acres and pay rent for the use of thera. So they gathered together the old and the helpless and the little children and raoved thera first, and then they raoved all of their belongings, including their supply of food and seed and irapleraents, without any help whatever frora the two young raen who were busily guarding the results of their enterprise. The Colonists set to work at once to cultivate the land and put in a crop. The two young raen raarried the two raost likely young woraen on the island, and the two young women and their relatives esteemed it a great catch. After the first crop was harvested, the young men, by promising a little reduction in rent, put the whole laboring population at work building thera a house that corresponded with the iraportance of their position. The workers hewed, with their rough tools, the coral rock out of the barren portions of the island and con structed a very splendid residence for the ruling classes. After the house was finished and the workers had raanufactured as best they could, out of the wood ob tained frora the ship, furniture with which to stock it, they began to construct hovels of stone and earth for theraselves and their children, and their aged and their sick. So raatters went on for several years, during which about two thousand acres of the fertile land were brought under cultivation. Meanwhile, the population had increased and their labor had made a beautiful park out of the remaining thousand acres which sur rounded the residence of their lords. They had also built a heavy wall around the thousand acres so as to protect the park from encroachment. The leaders of the colony still dreamed of resuraing their journey to Australia, and in the little spare time they had between planting, harvesting and building, they explored the island. On the end farthest reraoved frora the oasis, they found a deep and rugged ravine, 416 containing some scrubby vegetation, and coming down from a considerable elevation that suggested volcanic origin. In the ravine they discovered gold in great quantities and iraraediately began to extract it frora the soil. It was placer gold and came out in big and small nuggets. After gold was discovered, the oldest of the two colonists, who had appropriated all of the fertile land upon the island, took the title of Lord Goldfield, and the whole population turned out for a holiday to cele brate the event. They attended services in their churches and were told by their spiritual advisers that it was a great providence of God's which had bestowed upon them so kind and beneficent a ruler as the lord of the province; that, in fact, their lord had received his title direct from God ; that it was of divine origin and was sent especially to them by thf great Ruler of the universe because of his loving care. In I addition to the gold, some of the colonists dis covered at the headwaters of the stream upon the banks of which the gold was found, a small band of wild goats. The goats were very thin and their hair was not of the finest quality; but immediately upon the discovery of the goats the lords of the palace had thera removed to the one thousand acres which they had walled in as a park around their mansion, and great care was exercised in their breeding so that only the best qualities were reproduced. These efforts raet with great success. The inferior goats were sterilized and only those allowed to reproduce who were of the very best quality. The animals became strong and large and covered with a wooly coat, and were thus suitable for beasts of burden, and to furnish wool for cloth, and milk for the children of the rich. As a result of this achievement, the other young man took a title — the title of Lord Angora, in honor of the discovery of the goats. And again ceremonies were held and a holiday proclaimed and the population in structed ih the divine origin of this title, 417 But while birth control was exercised with regard to the goats, and great care taken to see that they were properly fed, the coramon people of the colony were taught that it was wicked to interfere with the proc esses of nature, and as the population had brought with them the usual diseases comraon to the sexes in Great Britain, there were increasing numbers constantly araong the inhabitants of those who were diseased and of those who were raentally defective; in fact, a very large nuraber of dependents had grown up and the slums had appeared, and as they took no care with regard to sanitary affairs, epidemic diseases — ^the re sult of the poisoning of the population by their own filth — spread araong thera and reduced the population from time to time. And the people were taught that this was a visitation by Providence to punish them for their failure to appreciate the glory and goodness of God; that they should read the Bible every day and observe Sunday and attend Church and above all, con tribute to the support of the Church and God's repre sentative — ^the preacher, who had ordered a day of fasting and prayer to appeaee the anger of the Deity, And the preacher chanted — "God is great and God is good; He provideth our daily food; by His hand we are all fed; give us now our daily bread." And the people cried "Halleluliah, Glory to God," But God's wrath was so great that He would not hear, and the epidemic ran its full course. The preacher then told the people that the only way to prevent future epi demics was to be raore devout and that God, above all things, loved a cheerful giver. The rulers of the island had planned and directed the construction of large warehouses which were used to store the products of the land. Many colonists were improvident. They would sell off what they produced and use up the returns so that they would not have enough to last them until the next crop. As the popu lation grew and life became less bearable the nuraber of the improvident increased. The two thousand 418 acres under cultivation yielded three crops a year ; was intensely cultivated and produced an abundance of supplies. The ruling classes, who owned the gold mines as well as the fertile land, knowing that the value of money depended upon its quantity, decided that the nuggets of gold should have a value in propor tion to their weight or size, and, of course, they decreed that the unit should be pounds, shillings and pence. They also manipulated the money so that, when the crop was harvested, the money was very scarce and therefore, the prices were very low. They would buy the products of the land and store thera in their ware houses and, when the next crop was fairly in the ground and improvident raerabers of the community were en tirely out of food, they would make the volume of money exceedingly abundant, prices would rise and they could thus charge several times what they paid for the products of the laborer of the land. They soon found that this was unnecessary for, as they were the only owners of raoney and had the only warehouses ttiat there were, they could arbitrarily fix the price and thus exploit the population to the full extent of their desire, through their trust control. But a new problera had arisen, Malthus's theory that population would outrun subsistence had come true, 'The two thousand acres would no longer pro duce food enough to supply the population and the serfs began to wonder how they would overcome the difficulty. They never thought of encroaching upon the park because that was private property belonging to God and the descendants of the two young men who had, by their private enterprise, discovered and taken possession of it; and the descendants of these young men never, for a moment, thought of plowing up the park, and they insisted that the raiserable population would have enough if they would exercise frugality and industry and would educate themselves ; but they were ignorant and many of thera were idle and of but little consequence. 419 So a coraraittee was appointed to explore the neigh boring seas with the hope of finding land. The ex pedition discovered sorae small islands, alraost entirely barren. On one of them, however, they found a huraan being, clothed in palra leaves, who fled upon their ap proach; but they called to him and to their astonish raent and joy he responded in the English tongue. He had been upon the island for ten years, the only sur vivor of a shipwreck and had subsisted upon roots, scant vegetation, and the products of the sea, clothing hiraself with palra leaves. Of course he went horae with the colonists and after he had fully recovered, began to preach the doctrine of Socialism, He said the rights of man were sacred and not the rights of property. He said that every man should have all that his labor produces — that raan was a land ahiraal and that the land was essential to his very existence, and that no person should own raore land than he could use and that, for the idle to deraand rent for the use of the land — ^the coramon inheritance of all — was immoral and dishonest, and that they should iraraediately take possession of the thousand acres in the park and put those acres into crops. And manji^ of the people endorsed his views. But the ruling classes were not idle. They had watched his moveraents ; they sent their paid retainers, their lawyers, among the people and argued that to take the park and not pay for it would be confiscation and robbery; that the present owner had inherited it from ancestors who had acquired it by thrift and in dustry and enterprise. That if the public appropriated it to the good of all it would destroy all incentive to individual enterprise and stop the wheels of progress and discourage ambition and return the world to bar barisra ; and they also wanted to know if they proposed to rob widows and orphans. The ruler had also organized a standing array of trained raen under the plea that the colony might be invaded by savages from sorae unknown island in the 420 sea, and that an army was needed for protection. The army was officered by men who had been brought up from childhood as trained soldiers and taught that they must obey their superior officers even unto shooting their own brothers and sisters, if coraraanded to do so by the officer over them. And, as the commander- in-chief of their standing army was by law the oldest son of the oldest of the two men who had discovered the fertile land, the army was ordered out, and they captured the socialist in the interest of law and order, and stood hira up against the wall which surrounded the one thousand acres, and fired a volley into hira and threw his body into the moat. Civil war at once commenced ; the population divided almost equally on the great question of the sacred rights of property, and they began killing each other until half of the people were disposed of. But as the trained men with their guns were on the side of the owner of the property, the people that reraained alive stopped the unequal contest, and right and raight pre vailed; law and order triuraphed; the congestion was relieved ; the park was saved ; the people agreed to con tinue to pay rent, and Christian civilization pursued its peaceful and soleran course. 421 XXXIV. Looking Ahead 1 have had a long experience with the public life of the United States; I have been repeatedly to Europe; I have studied the life of the East at first hand ; I have read economics, history, sociology; I have been busily engaged in the life of the world for more than half of a century. If Ipng experience and investigation, coupled with study and discussion, fit a raan to under stand, what is going on about him, then I believe that I have the necessar.y qualifications for passing on the events that are now transpiring, and for predicting the trend of our econoraic and political life. There are certain things that I see very clearly ; and certain tendencies that are working toward their logi cal goals just as inexorably as the sun passes across the heavens. These tendencies in our public life are similar to, though not identical with, similar forces that have operated in other societies during historic times; and they bear a very close resemblance to the forces that are now at work in all of the great cap italist countries of the world. In the fight over the annexation of Hawaii, I pre dicted that the road which was then being followed by the United States would lead speedily to erapire. Well, the empire is already here — having arrived raore speed ily than I, in ray wildest iraaginings, ever drearaed that it would arrive. At the time of the struggle over the Hawaiian Treaty, few people believed that the United States could ever be an imperial nation. They were skeptical, or else they scoffed openly. Even the representatives of the great interests had little idea of what was hap pening. They knew that they were serving the raen who had retained thera, but with the exception of a very few among thera they saw no farther than the iraraediate present. They were lawyers — not states men. As for the masses of the people, they were as ig- 422 norant then as they are now. They were swayed by their emotions. "They responded to the "full dinner pail" appeal. They were the victims of an education that taught them to remember — not to think ; and they were so busy remembering the glories of seventeenth century Revolutionary America that they had no en ergy or attention to devote to the probleras of nine teenth century plutocratic and iraperial America. Dur ing the campaign of 1900 I went before the farmers of South Dakota as a man who had served thera for a decade in their fight against the exploiters. Mark Hanna, the direct representative of those exploiters, came out to Dakota with half a million dollars, and the half raillion carried raore weight than ray eleven years of service in the Senate. Such experience taught me that, all other things being equal, people will do what their imraediate eco noraic advantage prompts thera to do. Against the weight of this econoraic advantage, ideals and abstract ideas will not win with the average raan or woman. Therefore, I reached a conclusion that I have since seen verified again and again — that where the carcass is the vultures will be gathered together. So long as the privileged few hold the reins of economic power, and so long as they are willing to share up with the workers a portion — even a small portion of the plunder — ^they can hope to maintain their authority. So I realized that progress was to be made from the tyranny of the masters as well as from the spirit of revolt among the workers, and where the workers had been crushed and exploited for generations, as in Eng land, I reaUzed that it would take a great deal of tyranny before the masses could be expected to revolt. Thus, the danger of the Araerican farraers and wage- earners lay in their very prosperity and in the leniency of their masters. So long as the bread was abundant I did not see how it was possible for forward-looking people to expect any effective progress. Nevertheless, I expected the present century to yield 423 a crop of revolutions, based on tyranny and starvation, and I predicted such a result in 1900. I made this prediction in reply to a letter from the Red Cross, in which the Director of the 20th Century Departraent asked rae to tell what the world might expect in the new century. The Red Cross request was as follows : "THE AMERICAN NATIONAL RED CROSS 20th Century Departraent Walter L. PhiUips General Secretary, Bridgeport, Conn, "Miss Clara Barton, President, Miss Ellen Spencer Mussey, Counsel and 3rd Vice-President, Washington, D, C, Frank D, Higbee, Director 20th Century Dept,, New York New York, Nov, 21, 1900, "Hon, Richard F, Pettigrew, Sioux Fall, South Dakota, "Sir: "The Red Cross, regards your position and standing to be such as to make your views on the progress and value of the 19th Century, in coraparison with other centuries and your prophecies regarding the 20th Century of great value, and we respectfully request you to forward to us at your earliest convenience from 40 to 70 words in your own handwriting giving your thoughts in that connection. We shall read them at all of our meetings through out the United States, and afterwards allow the United States Government to take them and forever exhibit and preserve them in the Congressional Library at Washington, 424 "An engraved invitation is being prepared, one of which will be raailed to you, but the time is short, and we take this raethod to ex pedite matters, and hope you will send in your "Greeting" before December 1st, if you can do so, "We prefer to have the 'Greeting' in your own handwriting rather than typewritten be cause we wish to have each 'Greeting' in auto graph form when turned over to the govern raent for preservation for all tirae, "Thanking you in advance, I am, "Very truly yours, "FRANK D, HIGBEE, Director 20th Century Watch Meetings, "Approved : "CLARA BARTON, President," To this letter I sent the following reply : "To the Araerican National Red Cross : "During the century just closed, mankind has made marvelous progress in his control over the forces of Nature, and in the produc tion of things which contribute to his physical comfort, "The early years of the century marked the progress of the race towards individual freedora and perraanent victory over the tyr anny of hereditary aristocracy, but the clos ing decades of the century have witnessed the surrender of all that was gained to the raore heartless tyranny of accuraulated wealth, Man's progress has therefore been material and not spiritual or ideal and the future alone can demonstrate whether any real progress has been raade, "I believe the new century will open with many bloody revolutions as a result of the pro- 425 test of the masses against the tyranny and op pression of the wealth of the world in the hands of a few, resulting in great progress to wards socialism and the raore equal distribu tion of the products of huraan toil and, as a result, the raoral and spitirual uplifting of the race, "R, F, PETTIGREW, "Washington, D, C, Nov, 22, 1900," It was twenty years ago that I predicted "raany bloody revolutions as a result of the protest of the masses against the tyranny and oppression of the world in the hands of the few," "These revolutions have occurred — ^the first in Russia 1905), and subse quently the revolutions in Russia, Hungary, Germany and other portions of Central Europe, Then, too, there has occurred the "great progress towards socialism and the raore equal distribution of the products of huraan toil" that I predicted at the sarae tirae. The progress has been unequal. In the United States and in Japan, it has only just begun. All over Europe it has reached advanced stages, and the sarae forces of tyrannous capitalism and imperial ism that have been at work in Europe, making for these revolutions, and for this revision of the ways of handling econoraic life are now busy in the United States, where the ruling class is following the old course of empire, and where the workers are beginning to wake up to the fact that they must take charge of their own economic affairs or perish, as have their European comrades, in the inevitable struggle between contending empires. We have not yet witnessed "the moral and spiritual uplifting of the race," about which I wrote in 1900, but already there are intiraations that progress is be ing raade in that direction, A spirit has come out of Russia that has transformed the thinking of the world in three short years, and the end is not yet. This spirit 426 is permeating the masses everywhere, and inspiring the most thoughtful araong them with the ideas and ideals of a free economic society. The closing years of the Nineteenth Century saw the imperialists of the world at the zenith of their power. The World War marked the beginning of their downfall. Today I see the workers of the world coraing into their own. Before this present generation passes, the workers in all of the important industrial countries of Europe will be the masters of the jobs on which they are dependent for a livelihood. The workers will gain this control only through the course of a struggle during which westem civilization will either pass to a new level of industrial and social organization, or else it will destroy itself in the conflict. This is the supreme test of the effectiveness of the pres ent level of working-class intelligence. If the work ers have learned enough and can maintain sufficient solidarity to hold the raachinery of econoraic life to gether, while the transition is being raade, the next steps in material and in spiritual progress must come in quick succession. If, on the other hand, the workers fail to make the transition, there must ensue years or perhaps centuries of stagnation, like those which fol lowed the dissolution of the Roraan Empire, Whatever the success of the workers, one thing is certain — if those who do the world's work do not make this fight for the control of their jobs, the madcaps who are now directing the affairs of the great capitalist states will continue with their wars — each more ter rible than the last one — ^until there reraain only the fragraents of the present civilization, and then the dark ages that will follow, across the war-devastated earth, will be dark indeed. If through either struggle — that of the workers to get and to hold control of their jobs, or that of the plutocracies for the right to exploit the garden spots of the earth — the present civilization of the West is 427 destroyed, then the ancient civilization of the East, based on the agricultural village, will again dominate the earth. The beginnings of these changes already are seen in Central Europe, where finances, transportation and manufacturing have been seriously deranged, or where their operation has been corapletely suspended, and where starvation and disease are consuming a popu lation for which the old order of society can afford no remedy. The war has been officially over for sorae time, yet, during the many months since there were open hos tilities on the main battle-fronts, the economic life of Central Europe has not recovered its norraal tone. There were raany who felt that no sooner was the arraistice agreed to than there would be a resuraption of the ordinary economic activities of the peoples of the warring countries. At least "by the first of the year," insisted the optimists, things would "pick up,"' The first of the year has come and has gone — for the year of 1919, for 1920 and for 1921, and unless all accounts are at fault the starvation, disease, suffering and misery are raore acute now than they were at the end of the war. Certainly the financial reports show that the economic portion of Austria, Poland, Hungary, Esthonia and probably of Germany is growing pro gressively worse. It is irapossible to turn the ener gies of hundreds of raillions from useful labor to de struction for five years without breaking down or wip ing out the old impulses and habits that lead to useful labor. War is more than hell. It is chaos, negation and denial of human civilization and progress. The worst that can be said about the present system is that it makes war inevitable. There is a crisis in the Hfe of nearly four hundred millions who make up Europe, Many of the people are facing a situation that is desperate to a degree that cannot be appreciated by those who have not seen it, 428 The people of the United States have a unique op portunity in this crisis, I do not speak of their op portunity to give food and clothing. By that raeans they raay push off the anguish of Europe for a few raonths, I raean an opportunity to show how things should be arranged to guarantee the life, liberty and happiness of a people. The United States is isolated geographically. Hence it is in a better position to experiment and to work out its new ideas than is any other nation of the world. Again, nature has supplied the United States with an unexcelled store of all the resources necessary to the building and maintenance of a great civilization. Hence it follows that, unlike the peoples of overcrowded Europe, none of those who live in the United States need lack for food or clothing or shelter. The coal and iron, the cotton and the wheat, the corn and the cattle, the beneficial cliraate and the generous soil all are present in extraordinary abundance. Besides that, there are no near neighbors that are in a position to interfere with the internal affairs of the country. Once the American people have decided to reorganize their econoraic life on a basis of inteUigence, there can be no effective check placed upon thera from the outside, FinaUy, the past few years have given this country an iraraense surplus in machinery, in liquid capital, in goods of various kinds that represent a great lead over any would-be rival. Such are the advantages which the people of the United States now enjoy. There is one way and only one way in which they can make good and utilize them to the full. That is for the workers to take possession of their jobs, assume the direction of economic policy, and take the full product that they create. Under our form of government this can and should be accomplished, not by force but by political action. Those who do the work and produce all the wealth should combine and forra a political party with a plat- 429 forra of eight words: "Every raan is entitled to all he produces," with a slogan, "All power to the people who do the work and produce the wealth," and take possession of the governraent in all its branches, drive the lawyers out of office and repeal all laws granting privileges, and enact laws for the public ownership of all utilities of every kind that are now owned by corporations. By this raeans, and by this means only, can iraperial ism be checked, the class struggle eliminated, and the life of the people be placed on a sound and rational basis. In this direction and in this direction only can they hope to attain the life, liberty and happiness of iv?hich our forefathers dreamed. 430 INDEX Agriculture as a Basis for National Greatness 366 America, Changes in 9 Decay of Liberty in 9 Distributing Wealth in 121 American Conquest of the Philippines 332 Control, Result of, in Porto Rico .359 Federation of Labor, Character of Ill Federation of Labor, Relations with 109 Government, Criticism of 174 Government, Original Purpose of 370 History, Economic Forces in 9 History, Imperialism in 339 Imperialism, Development of 348 Imperialism in Central America 344 Imperialism in Nicaragua 345 Imperialism, Record of 339 Influence on World Politics 335 Labor, Position of 115 People and the Senate 198 People and the Trusts 67 People, Ignorance of 5 Politics, Characterization of 272 Politics, Standards of 276 Public Life 5 Public Life, Changes in 8 Sovereignty in the Philippines 334 Statesmen, Characterization of 272 Americanization Campaign, Backers of 5 Campaign for 5 Anti-Imperialism League, Organization of 275, 326 Anti-Imperialist Movement, Sources of Support 327 Anti-Trust Law, Non-enforcement 76 Laws 70 Legislation, Fate of 250 Arid Land, Irrigation of 25 Armor Plate, Cost of Manufacture 374 Profiteering on 375 Trust 376 Army Ordnance Association 6 431 Banker, Evolution of 30 Bankers and Money Issue 38 Relation of, to Hard Times 401 Banking and Government Function 36 Parasitic Nature of 32 Power, Dangers of 34 Private Monopoly of 32 Profits of 31 Public Control Desirable 32 Supremacy and Imperialism 37 True Nature of 30 Benevolent Assimilation, Excuse for 349 Bethlehem Steel, Profits of 383 Big Business, Political Body Servants of 28ft Bill of Rights, Origin of 139 Black jjills Reservation 13 Bribery as a Business 163 British Empire and the Opium Monopoly 208 Effects on the People 367 Imperialism in China 353 Investments, Volume of 40 Record in India 368 Record in Ireland ' 368 Business and Imperialism 311 And Politics, an Instance 287 Cycles, Form of 45 Cycles, Uses of 45 Empires, Development of 8 Groups, Struggle to Control the Constitution 137 Interests and the Hawaiian Revolution 314 Interests and Lawyers 141 Interests and Organized Labor 114 Interests, Presidential Nomination by 405 Men, Needs of and the Constitution 134 Morality, Instance of 276 Campaign Contributions, Instance of 296 Contributions, Sources of 220 Funds in Presidential Elections 257 Funds, Methods of Raising 220 Funds, Source of 256 Capitalism and a Leisure Class 410 Character of 407 Control of Society by 411 Exploitation Under 410 Failure of, in Russia 389 In the United States 44 Typified by Profiteering 374 Capitalist and Worker 246 432 Carpet-bag Officials 150 Central America and American Imperialism 344 Central .A.merica, League of Nations in 346 Central Bank in Japan 34 Chaos, Threat of 428 Chattel Slavery and Wage Slavery 409 Cheap Money and Rising Prices 38 Checks and Balances, and Democracy 138 Checks and Balances, Purpose of 170 Civil Liberty and the Constitution 138 Class Rule in the United States 10 Coal Mining Profits for 1917 384 Colonial Treasury Notes, Effect of 50 Combinations of Railroads 90 Compensated Dollar Necessary 34 Competition Abandoned by America 70 Accepted 70 And Tariff 66 And Trusts 70 Effects of 72 In America 70 In Sugar 72 Concessions, Sale of in Congress 280 Congress — Attitude Toward Wealth Distribution 129 Back of Land Frauds 283 Dominated by Lawyers 141 Protection of Trusts by 77 Conquest of the Philippines 334 Conservation and Prosperity 26 Policy for 27 Proposed Methods 23 Constabulary, Work of, in Porto Rico 359 Constitution, Adoption of, and Bill of Rights 166 Amendments to 139 And Human Liberty 134 And the Business man 132 And the Declaration of Independence 139 And the Rights of Man 137 As a Bulwark to Exploitation 140 As Substitute for Revolution 171 At the Mercy of the Courts 170 First Amendment 166 Opposition in, to Democracry 138 Original Form of 138 Origins 132 Overturned by the Courts 186 Constitutional Convention, Work of 164 Contract Labor, Advantage of 51 Co-operation, Necessity for 116 433 Copper Profits, Amounts of 383 Corporations, Exploitation Through 27 Power of 60 Corrupt Politics, Instances of 155 Corruption in the Senate 207 Remedy for 175 Course of Empire and the United States 364 Course of Empire, Beginnings in the United States 330 Courts and Politics 172 And the Railroads 90 As Protectors of Profiteering 181 Domination of, by Lawyers 143 Place in Our Government 196 Credit Mobilier 85 Methods of 87 Currency Issues, Profits Through 33 Democracy and the Constitution 138 Fear of, by Constitution Makers 164 Demonetized Silver and Trusts 71 Discriminations by Railroads 81 Distribution of Wealth, Facts of Concealed 124 Distribution of Wealth in America 121 Du Pont Powder Company, Profits of 383 Economic Breakdown in Capitalist Society 45 Power in America 118 System of Porto Rico 356 Education of Lawyers 144 Elcaney, Battle of 240 Election of 1920 and the Vested Interests 404 Significance of 401 Empire, Course of, and the United States 364 Enemy Countries, Position of 396 Enlightened Self-interest, Instance of 276 Espionage Act, Decisions Under 182 Indictment Under 377 Evolution of a Banker 30 Exploitation and Banking 36 And Imperialism 352 As a Means to Wealth 119 Form of, in Porto Rico 356 Through Banking 37 Exploited Countries, Position of 396 Express Companies, Regulation of 93 Farm Tenancy, Development of 46 And Industrial Depressions 46 Federal Government and Property 77 434 Federal Judges, Disqualifications of 188 Training of 189 Federal Legislation, Character of 109 Federal Reserve Acts, Results of 35 Federal Reserve System, Earnings of 36 Fees, Effect of, on Lawyers 146 Example of, in the Senate 147 Financial Concentration 35 Financial Imperialism and Hawaii 312 Financial Power, Influence on Congress 52 Financing of Railroads 84 First Opium War, Cause of 353 Floods, Control of 26 Prevention of 25 Forcible Annexation of the Philippines 331 Foreign Capital in Hawaii 312 Foreign Ownership of Railroads 96 Forest Frauds 14 Forest Policy, Results 13 Forest Reservations 12 Preservation 14 Purpose ¦ 17 Formosa, Control of, by Japan 362 Frauds in Forest Legislation 15 Free Speech Cases and the Supreme Court 183 Convictions in 183 Free Trade, Result of, in England 59 Theory of 58 Freight Rates, Discriminations in 82 Gold Basis, Necessity for 39 And English Policy 41 And Exploitation 40 And Imperialism 39 Gold Production, Effect on Prices 48 Gold Standard and Imperial Policy 44 Rejection of 49 Success of, in Great Britain 43 Government and Organized Labor 112 By Lawyers 343 By Landlord and Manufacturers 134 Decay of 8 Desirable Forms of 174 Dominated by Lawyers 141 Ownership, Plans for 88 Ownership, Proposal for 86 Ownership of Railroads 92 Government Bonds, Jobbing in 287 Bond Sales, Scandal of 286 435 Governmental Inefficiency, Remedies of 175 Governments Represent the Standard of Peoples 335 Greenbackism and Peter Cooper 38 Harbor Development 26 Hard Times, Beginnings of 401 Hawaii and Business Interests 323 Fight on Annexation of 323 Foreign Capital in 312 Franchise in - 323 New Government of 321 Ownership of, by Americans 312 Seizure of 318 Hawaiian Revolution, Facts of 313 Hawaiian Treaty, Ratification opposed 313 Hayti, United States Domination of 347 Hepburn Bill 235 High Finance of Railroads 87 Homestead Law and the Republican Party 252 Debate on 253 Imperial Policy, Meaning of, to Human Rights 330 Imperialism and Big Business 311-324 And Exploitation 352 And World Peace 397 As Manifest Destiny 372 Beginning of, and Hawaii 323 Development of, in the United States 348 Eflfects of, in Ireland and India 368 Essentials of 347 Functions of 330 Instances of, in American History 339 Menace of, in the United States 325 Practices of 350 Price Paid for 369 Struggle Against 132 The End of Liberty 364 Income Tax Decision as an Usurpation 177 Independence Depends on the People 171 Indian Lands, Exploitation of 288 Indictment Under the Espionage Act 377 IndustrialDepressions and Farm Tenancy 46 Dates of 45 Internal Improvements, Indifference to 26 International Competition and World Peace 397 Invisible Government 131 Ireland as Example of Imperial Wrong- Doing 368 Irrigation, Proposals for 24 Opportunities 24 Possibilities 25 436 Japan, Banking Experiments in 33 Japanese Imperialism, Instance of • 362 Judges, Character of 171-186 Constitutional Removal of 191 Training of 189 Judicial Legislation, Resort to 179 Judicial Power, Dangers of 175-186 Limitations on 173 Judical Usurpation, Income Tax Cases 177 Instances _of ; 176 Remedies for 191 Kettle Hill, Battle of 240 Labor and the Government 112 And Politics 112 In America 101 Cost of, and Hard Times 402 Labor Legislation, Fate of 101 Labor Movement and the Interests 114 Rights of 115 Standing in Congress 115 Labor Unions and Socialism 110 Standards of 245 Land, Basic Nature of 28 Land Frauds Backed in Congress 283 Instance of 283 How Perpetrated 21 Land Grabbing .- 11 Land Grant Railroads 85 Financing of 261 Graft of 14 Origin of 261 Property of 15 Land Laws, Enactment 11 Land Ownership, Exploitation Through 28 Law, Deification of by Lawyers 143 Lawyer-Government in the United States 143 Lawyers and the Courts 143 And the Public Policy — ? As a Ruling Class 149 As Guardians of Property 145 As the Spokesmen of Plutocracy 141 Control of Congress by 141 Education of 144 Functions of 141 Proportion of, in Washington 141 Qualification of 144 437 League of Nations and International Capitalism 399 A Holy Alliance 399 And Russia 395 Authors of 394 A War League 394 Character of 394 Defects in 398 Of Central America 344 Purposes of 398 Liberty and the People 171 Decay of, in the United States 9 Sacrificed to Imperialism 364 Limitation of Powers by the Constitution 168 Lobbying and the Vested Interests 280 Lost Bill, Discovery of 107 Machinery, Displacement of Labor by 126 Mail Weighing and Fraud 80 Manifest Destiny and Imperialism 372 Masses as Guardians of Liberty 171 Mexican War, Imperial Purpose of 339 Militarism, Growth of, in the United States 365 Money, Danger of Private Control 34 Functions of 55 Money Congresses, Proceedings of 41 Money Contraction in 1893 ' 47 Money Issue by Private Agencies ,. . 38 Money Monopoly, Advocacy of .^jj ... . 51 Results of ,.:^i.. . . .. . 36 Money Power, Control by 33 Danger df 119 Irresponsibility of 36 National Bank Act, Defects of 33 National Bank Charters, Renewal Opposed 34 New York Bankers and Government Bond Sales 292 Next War, Basis for 395 Preparations for 7 Nicaragua, American Imperialism in 345 Nickel Industry, Failure of 60 History of 61 Oil Rates, Discriminations in 82 Old Parties, Identity of Interest 250 Oligarchy, Established by Courts 171 Set Up in Hawaii 322 Opium Monopoly, Position of 208 Opium Traffic, Character of 353 Organized Labor and the Government 112 438 Owners and Workers 113 Ownership of Railroad Securities 94 Panama, Revolution in 341 Seizure of 340 Panic of 1920, Causes of 53 Panics and Private Banking 35 Panics in the U. S 45 Paper Money, Privately Issued 51 Party Machines, Character of 250 Party Politics, Deceptions of 254 Party Spoils and the Presidents 217 Patriotism and Preparedness 6 Peace and the League of Nations 394 People as the Final Authority 171 People, Rights Vested in 167 Philippine Islands Torn from the Natives 332 Philippines, Aggression in 330 Results of American Occupation in 266 Revolution in 331 Plutocracy and the Constitution 140 And Lawyers 141 Defended in the Senate 208 Growth of 311 In the United States , 118 Meaning of '. 118 Menace of 408 Power of, in America 120 Public Lackeys of 281 Rise of, to Power 132 Supremacy of 131 Politicians As the Servants of Business 286 Political Conventions, Character of .251 In Washington 157 Machinery of 219 Political Developments of the Future 428 Political Intrigrue, Story of 158 Political Log Rolling 259 Political Machines 217 Political Manipulation, Instances of 259 Political Parties, Historic Purpose 250 Similarity of 237, 250 Political Servants of Big Business 280 Political Standards in the United States 276 Politics and the Courts 171 Characterization of 272 Corruption in 155 Dependence of, on Contributions 327 In the Territories 151 439 Politics and the Courts in the United States 150 Pools of Railroads 90 Porto Rico, Economic Conditions in 359 Economic System of 356 Wealth Distribution in 360 Post Office and the Railroads 79 Post Office and Railroad Mail Pay 79 Power, Concentration of, in the United States 371 Precedent and the Control of Government 144 Predatory Wealth, Weapons of 78 Predatory Interests Represented by Lawyers 143 Presidential Appointments, Abuse of 221 Presidential Veto, Abuse of 221 Presidents of the U. S., Character of 217 Lawyers Among 142 Nominations for 218 Political Records of 224 Renomination of 218 Summary of Qualities of 249 Price Control by Trusts 74 Price Reduction, Methods of 402 Panic of 1920 53 Private Interest Versus Public Welfare 16 Privilege in America 118 Control of Government 133 In the Senate 21 Value of the Constitution to 140 Profiteering, An Example of Capitalism 374 And the Courts 181 And Imperialism 355 Instances of 383 Senate Figures 384 System of 387 Profiteers and Armor Plate 375 And Imperial Policy 355 Progressive Party, Organization of 237 Progressive Party Program, Writing of 237 Property Protected by Lawyers 145 Protection of 77 Property First and Lawyers 146 Property Interests, Defenses of 130 Protection of in the Senate 19 Property Rights and the Constitution 135, 164 Protection and the Republican Party 68 Advantages of 60 Protectionism, Meaning of 67 Public Control of Banking 32 Public Domain, Disposal 24 Loss 24 440 Public Domain, Suggested Uses 23 Public Interest and Foreign Trade 181 And the Law 181 Public Lackeying as a Profession 281 Public Land, Sovereignty in 27 State Use Proposed 23 Public Ownership of Railroads 78 Public Ownership of Railroads Necessary 93 Public Plunder and Congressional Backing 284 Public Utilities — Power Over the Senate 214 Public Welfare and the Senate 68 Senate Attitude on 22 Quantitative Theory of Money 39 Railroad Accidents, Reporting of 102 Railroad Combinations 90 Railroad Finance 261 Railroad High Finance 87 Railroad Ownership vs. Regulation 235 Railroad Passes, Uses of, in Elections 306 Railroad Rate Reductions, Possibility of 262 Railroad Regulation, Attitude on 235 Proposals for 92 Railroad Securities, Fluctuations of 84 Ownership of 94 Railroads and the Courts 90 And the Law 82 And Safety Appliances 105 Control of Government by 78 Discriminations by 81-261 Expropriation of 93 Financing of 84 Foreign Ownership of 96 Opposition to Labor Legislation 104 Predatory Wealth 78 Public Ownership Necessary . . . . : 78 Taxing Power of 91 War Service of 97 Watered Stocks of 84 Railway Mail Pay, Corruption in 79 Rate Regulation Proposed 92 Rates, Discriminations by Railroads 81 Republican Convention of 1920 403 Republican Government Failure 8 Republican Government, Travesty of, in Hawaii 322 Republican Party and Protection 68 And the Trusts 205 Changes of Front of 251 441 Republican Party, Principles of 63 Program of 406 Resource Conservation, Direction of 27 Resources, Private Monopoly of 28 Revolution as An Escape from Tyranny 140 Preparations for, in Hawaii 316 Right of 140 Revolution in Panama Encouraged by the United States... 341 Revolutionary Scrip and the Constitution 165 Revolutions Predicted in 1900 425 Rich, Position of, in America 118 Rights of Man and the Constitution 135 Right of Revolution 140 Rising Prices and Cheap Money 38 Rome, Greatness of, Described 366 Ruling Class Sentiment, Development of 10 Russia and the League of Nations 395 Russian Bill of Rights, Character of 389 Russian Constitution, Basic Idea of 389 Russian Revolution, Significance of 389-393 San Juan Hill, Battle of 239 Santo Domingo, Control of, by the United States 346 Science and Tariflf Legislation 62 Second Opium War, Causes of 354 Secret Diplomacy in America 5 Secret War Preparations 248 Securities, Ownership and Distribution 94 Self -Determination, Provisions for 392 Senate, Able Men in 199 Acceptance of Fees in 147 And Labor Legislation 104 And Land Grabs 20 And Property Interests 19 And Public Welfare 228 And the American People 198 And the Business Interests 198 And the Water Power Bill 213 And Trust Laws 65 Atmosphere of 206 Business Interests and 69 Committee, Work in 205 Composed of Lawyers 198 Corruption in 296-307 Decline in Importance of 210 Loss of a Bill in 106 Manipulations in 67 Senate Record, Alterations of 209 Senate Votes, Purchase of i 208 442 Senators and Private Interests 16 And Privilege 21 As Hired Attorneys 147 As Servants of Privilege 198 Characteristics of 201 Corrupt Election of 297 Mediocrity of 210 Rank and File of 203 Sherman Law 70 Silver Coinage Feared by Monopolists 49 Slavery, Conditions of, in Sulu 234 Economic Failure of 50 Socialism and the Labor Unions 110 Solid South, Effect of, on Elections 247 Soviet Constitution, Provisions of 390 Spanish Treaty, Method of Passing 206 And Political Manipulation 273 • Proposals on 274 Special Privileges, Use of Tariff by 62 Spoils System 221 State Elections as Pawns in Politics 302 Statesmen, Types of, in America 272 Stock Dividends, Decision on 178 Stream Flow, Regulation 25 Strikes, Effects of 114 Sugar Trust and the Tariflf 76 Activities of 75 Existence of, Questioned 74 Factors in 73 History of 72 Organization of 73 Sulu, Treaty with 226 Supply and Demand Applied to Money 38 Supreme Court and Free Speech Cases 184 Abolition Demanded 187 And Other Government Departments 170 And Public Interest 181 And Tenth Amendment 177 Dangers of Usurpation by 168 Decision on Salary Income Tax 179 Decision on Stock Dividends 178 Emotionalism of 185 Espionage Act Decisions 182 Fallibility of 190 Interprets the Constitution 169 Jurisdiction of 193 Power to Throw Out Laws 169 Steel Trust Decision 180 443 Supreme Court Judges, Qualities of 190 Call for Impeachment of 183 Surplus Wealth and Capitalism 44 Tariflf 57 Tariff and Competition 66 Advantages of 57 And Monopoly Power 57 And the Sugar Trust 76 And Trusts 64 Behind the Trusts 284 Eflfects of, on Hawaiian Sugar 315 For Special Privilege 62 Lines of Attack on 68 Purposes of 57- 69 Science of 62 Tariff Commission, Necessity for 57 Tariflf Duties, Purposes of 204 Tariflf Legislation, Jugglery with 223 Tenth Amendment and the Supreme Court 177 Territorial Politics 151 Third Party, Eflforts to Organize 324 Third Party Movement, Causes of Failure 328 Trade, Logical Basis for 58 Treaty with Sulu 226 Trust Activities 121 Trust Control of Prices 75 Trusts and Demonetized Silver 71 And Falling Prices 71 Cost of, to the People 75 Court Decisions and 180 Eflfects of 72 Era of 70 Lines of Attack on 68 New Power of 8 Object of 71 Opposition to 70 Political Control by 68 Power of 83 Present Status of 77 Price Control by 74 Protected by Congress 77 Protection for 69 Remedy ¦ for 65 Tyranny, Bulwark Against 168 And Revolution 140 Unequal Wealth Distribution, Machinery and 127 United States and the World War 377 Banking Supremacy of 37 444 United States, Concentration of Power in 371 Control by the Plutocracy 48 Growth of Plutocracy ih 311 Menace of Imperialism in 324 World Position of 8 United States Judges, Training of 189 Unreasonableness as Interpreted by Courts 180 Usurpation by Supreme Court 168 Denied to English Courts 169 Usurpation of Power, Danger of 167 Vested Interests and the 1920 Election 404 And the Constitution 135 Defense of, by the Senate 206 Representation of, in the Senate 262 Service of Lawyers to 141 Vote Buying in the Senate 208 Wage Rates in Porto Rico 359 Wage Slavery and Chattel Slavery 409 War as Chaos 429 And the League of Nations 394 Financial Purposes of 386 Object of 385 Preparation for 7 War Department, Propaganda of 6 War Preparations, Secret, in 1917 248 War Profiteers and Preparedness 6 War Profits, Volume of 384 Water Power, Seizure of 28 Public Development of 25 Water Storage 25 Watered Stocks of Railroads 84 Wealth, Concentration of 113 Distribution of, in America 120 Facts on Distribution of 121 Methods of Securing ; 1 19 Through Watered Stock 120 Wealth Census, Eflforts to Secure 124 Wealth Concentration in Railroad Securities 96 Wealth Distribution, Attitude of Congress towards 129 Changes in 122 Necessity for Information concerning 126 Wealth Lords, Government by 134 Worker and Capitalist 246 Workers, Position of, in America 101 World Peace and Competitive Imperialism 397 World War, Economic Reasons for Entering 376 445 Z^ZL 8Z.600 Z006 £