Being an Argument in Favor of Industrialized Government
THE A. B. C. OF POLITICAL ECONOMY.
(Simplified for the Uninitiated.)
The one great desire uppermost in the minds of men is to get the
greatest good from the earth, the source of all wealth, with the least
possible labor and effort. In the so-doing, both experience and reason
teach that economy is the watchword. It is the life blood of
civilization—the essence of industrial prosperity. The basis of all
philosophy is "I want," and in the pursuit of happiness and contentment,
economy must be the watchword.
WASTE.
The destruction of the smallest useful atom is an injury to every living
person; and the more useful the atom, the greater the injury. A great
fire, a flood, a devastating cyclone, is not only a calamity to those
immediately affected, but it is a universal loss; for, the great human
family is just so much poorer, the world's progress has been retarded,
and our onward march toward the perfect civilization has been checked.
Likewise, every stroke of labor that does not go toward making the world
better or richer is wasted energy. The man who insists on making shoes,
or raising wheat, or digging coal, when he is mentally, physically and
by nature ill-adapted to that calling, is a drone and a burden upon
society. He is wasting energy and impeding the general progress, because
he is doing something which others could do better or quicker, and he is
therefore the cause of misplacing two persons in unproductive and
unnatural callings.
MACHINES.
The labor saving machine is the personification of economy. It, and all
great inventions, are welcomed by civilization as great economizers of
the world's work. It is wasted energy for man to do by hand that which
a machine can do as well and in less time. The machine economizes
production and therefore lightens and lessens the toil of the human
family. Ten men in a shop or industry, each assigned to that branch of
the business to which he is best adapted, form a combination for economy
identical with a machine. If a linotype machine, operated by one man,
can do the work of say five type-setters, the world is richer to the
extent of about what four men could create in other
vocations,—allowances being made for the labor required to make the
machine itself.
DEPENDENCE.
A person can no longer make his own hat, coat, shoes and house, and
raise his own vegetables, as Crusoe did. Ten thousand men are
co-operating to give him his shoes alone. There are the men who kill the
animal which provides the hide, the men who carry it to the jobber, the
men who strip it, the men who cure and tan it, the men who pack it, load
it on the trucks, put it on the cars, unload it, carry it to the leather
merchant, and the innumerable clerks, bookkeepers, advertisers and
stenographers who help sell it to the shoe manufacturer, the additional
transportation, the endless variety of hands it passes through in the
factory, and the countless hands that handle the finished shoe before it
reaches the consumer; and then,—the telegraph's part in the manufacture
or sale or transportation of that shoe, and the mails and the
advertising, each employing thousands. Even the linen thread used in the
shoe has a similar history; likewise the pegs, the needles, the
machines, the cloth lining and the metal eyelets. And the shoe is a
small part of a man's necessaries. What does all this show? The
inter-dependence of men, one upon the other.
CO-OPERATION.
We have come to that stage of human progress when we could not return to
the Crusoe method if we desired. We must depend upon our brothers in
distant parts. A vast industrial machine has been created, of which each
member of the human family forms a part. A must look to B for his shoes,
B must look to C for his meat, C must look to D for his coal, and all
must look to one another for every needed thing. Even the savages in
distant lands are at work procuring ivory and other commodities for us
while we are creating suitable articles for them, and thus the human
family are co-operating together for the common good.
If this system of co-operation or trade is not interfered with by
unnatural and artificial devices, every man will sooner or later find
his level and bend his energies in that calling to which he is best
fitted by nature, education, training, and environment. A natural law is
at work. To interfere with it is to divert commerce from its natural
channels and cause friction in the great industrial machine. The machine
needs no oiling or mending; it simply requires direction. It develops,
expands and lubricates as it runs. It is not revolution that wears out a
machine; it is friction.
COMBINATION.
Two or more persons can enjoy the heat of one stove, or the light of one
lamp, or the shelter of one roof, as well as one person, and without
depriving anyone of an equal quantity thereof. A printer can produce
1,000 circulars with but little more cost than 50. A truck or car can
carry tons with but little more expense than pounds. Two fish can be
fried in one pan as well as one. A professor can teach a class of 500 as
well as of five. Hence the advantages of combination and co-operation,
and hence the uneconomy of individual isolation. How much wiser for
Crusoe to take Friday in his household and divide their labors, each
doing that which best suits him, using,—so to speak—only one stove,
one lamp and one frying-pan.
Suppose at Christmas a man has 100 presents to distribute in various
localities. A messenger for each of the 100 presents would mean an
expense of say $50 and much wasted energy. A single messenger could so
systemize the work, by mapping out the shortest routes, that he could
accomplish the work in far less time, comparatively, than the 100
messengers, and his bill would be only about $5. Now, suppose the man
should ascertain that each of his 199 neighbors in the block also had
100 presents to deliver. That would make 20,000 presents in all. If each
man should employ a separate messenger it would cost about $1,000. One
messenger would go to First street and leave a package (little knowing
that another messenger was to deliver a package at perhaps the very next
door), thence to—say Nineteenth street, thence to a distant section of
the city, thence to still another district, and so on. Each of the 200
messengers would have the same long journey to make, wearing out his
shoe leather, making the cars do useless work, and wearing and wasting
his own energy. But suppose the 200 neighbors should combine and
co-operate. They would soon find that about five messengers could
deliver their 20,000 presents in about the same time that 200 could;
and, at $5 each, or $25 in all, with a saving of $975 to themselves.
Mapping out the city in five districts and assigning one messenger to
each, they would probably find that many presents were to be delivered
in adjoining houses, and some to different residents of the same house.
Witness the many steps that have been saved, and the time, and the labor
of 95 men who have thus been freed to work in some productive vocation.
Method and system are parents of economy. They allay waste, eliminate
useless labor, and lighten and lessen the toil of the human family.
ANOTHER ILLUSTRATION.
Some morning at break of dawn witness the confusion in the simple
industry of delivering milk. A wagon rattles up to your door and leaves
a bottle of milk. It clatters down the street and leaves a bottle to a
neighbor in the next block. Then it turns down the avenue and leaves a
bottle several blocks away, and thence perhaps to a distant section.
But watch, and you behold another wagon coming. It stops at the next
house to yours and deposits a bottle on the window-sill, then dashes
down the block and leaves a bottle at some distant house, then to a
house perhaps several blocks away, and so on until it has covered, in
spots, a large territory. Soon, a third wagon appears and leaves a
bottle at the second house from yours, and then dashes away to distant
parts to cover its route.
And so on until nearly 200 different wagons, or grocer clerks, have
visited the 200 houses in your block to deliver 200 separate bottle of
milk. In every block the same scene is being enacted. Remember that
every employer has horses, wagons, harness, drivers, a store, books, a
cashier, advertising, fuel, light, and a plant to maintain.
[1]Now compare the unsystemized milk delivery with the scientific,
methodical system of delivering the mail. The letter-carrier leaves a
letter or paper at your door, hurries on to the next house, then to the
next and the next; then, he does likewise on the other side of the
street until nearly every house in the block is visited; then he
proceeds to the next block and continues his systematic, economical
labors; and so on until he approaches the line where another carrier
has been doing likewise in the adjoining district.
Suppose mail should be delivered in the unorganized, unmethodic manner
that milk is delivered; it would require many times as many carriers to
do it, and this additional work would be just as useless and wasteful to
the world as if they were employed to dig holes in the earth only to
fill them up again. If the milk business were to be organized similar to
the letter-carrying business what an enormous amount of wasted energy
and labor would be saved. What an immense amount of useful and
wealth-creating work could those now useless extra milkmen perform in
other callings.
THE FUTURE.
The question is asked: Will all of the milk dealers one day combine and
form a Trust? And should they? My answer is, Yes. Competition will
perhaps drive them to it; but if it does not, some day they will see the
advantages and benefits of such a combination and they will wisely
follow the example of the oil and steel magnates. If they never see it,
then some of the larger and wiser milk dealers will, and they will
perhaps enlist sufficient capital to control the market by buying up the
milk supply at the farms, thus driving the smaller dealers out of the
business or into the Trust.
What is true in the milk business is also true of nearly every other
similar business, and that is the condition which this country has to
face in the near future.
PARTNERSHIP.
A is engaged in the manufacture of shoes. B is a rival. They sell a
certain shoe for $3. Each has a separate plant to maintain; a
bookkeeper; a delivery wagon; and fuel, light, rent and advertising
bills to pay. After a while A and B form a partnership under one roof,
with only one delivery wagon, one bookkeeper, etc. With this great
saving in expenses they find that they can produce as many shoes with
the one enlarged plant as the two old plants produced and at much less
cost. They can now pay a little higher wages, make a little more profit
and still reduce the price of their shoes to, say, $2.90. C now comes to
town and opens a rival establishment. He has difficulty in producing as
good a shoe for $2.90 as does the firm of A & B, but he competes for a
while until D comes to town and starts another shoe factory. Then C and
D join their plants into one and the two firms go on competing, each
spending large sums in advertising, etc. Finally they all get together
and combine the several plants into one. They build an extension on A
and B's building and move C and D's machinery therein. The new firm of
A, B, C & D now have a large plant. Where formerly the individual
manufacturers employed say six bookkeepers, they can now get along with
but two. Where they once had ten delivery wagons they now require but
two or three, because of the systemized routes mapped out. Instead of
each manufacturer spending $10,000 a year for advertising, or $40,000 in
all, the new firm now spends only say $15,000. The saving and economy is
so great in nearly everything, that they can now pay still higher wages,
make still greater profit and sell their shoes for perhaps $2.75—if
they want to. Thus everybody is benefited by the enlarged partnership
except those who have been thrown out of employment, and they shall
presently be taken care of as we proceed.
Now, if four men by combining and forming a partnership can reduce the
price of shoes from $3.00 to $2.75 and pay higher wages and make more
profit than if they were operating separate plants, how great must be
the advantages of 100 or 1,000 men and plants combining into a
partnership. This would be a Trust. If two men can use the light of one
lamp or the heat of one radiator without one depriving the other of any
light and heat, so can 100 men do likewise, provided there is enough
light and heat to go around, and on this simple principle is the great
Trust founded. It economizes; it eliminates useless energy; it allays
waste; it saves. Our letters are delivered by the Trust system; our milk
is delivered by the old system of individual enterprise and is
inconsistent with modern civilization.
ORGANIZATION.
If the industries were not organized, if Trusts and Combinations were
unknown, if there were no corporations and no partnerships and
everything was carried on by individual units, what would be our
industrial condition? What an enormous amount of waste would there be
and what a colossal volume of extra work would the human family have to
perform to produce what we now have!
Organization is the key-note of the century. "Individual Enterprise" is
a relic of past ages. A partnership of two or more is organization on a
small scale. A corporation is practically a combination of two or more
partnerships, or an enlarged legalized partnership. A Trust then is
simply an organization of several smaller organizations. The greater and
more perfect the organization, the greater the economy. The greater the
economy the lower will be the cost of production, and the smaller will
be the amount of work to be performed and, likewise, the cheaper will be
the article—if! (See later).
ADVERTISING.
Most advertising is wasted energy. One of its purposes is to take trade
from another and bring it to itself,—a snare set by A to attract B's
customers. It creates nothing, and is only useful as a means of
communication or notification, and it imposes an unnecessarily heavy
burden upon the human family. While it does give employment, it is not
much more useful employment than the hiring of men to shovel dirt into
the river and then hiring them to shovel it out again. If employment is
all we seek, why not tear down the public buildings and then hire men to
build them up again? (The question of employment for labor will be dealt
with elsewhere.)
This illustration is not intended to discourage advertising, for
advertising has its uses, and under present conditions is almost
synonymous with success. But suppose, for example, there were 100
telephone companies in New York instead of one. The competition would be
bitter. Prices would come down to the lowest competitive margin. But,
as prices and profits came down, so would wages. The rivalry would
encourage dishonesty, hatred and envy, and result in various
impositions, such as compelling every subscriber to have several
'phones.
Each company would have the expense of maintaining a separate plant,
with its small army of employees, and wires strung over the city like a
mosquito netting, and each would be spending large sums in advertising
which would finally be paid by the consumers.
Now, contrast this unorganized confusion with the present single system
with its one small advertising bill to pay, one system of wires, one set
of canvassers and other employees, one engine room, one president, etc.
Has not the burden of the world's work been lightened and lessened by
this combination and organization?
THE WORLD'S WORK.
Given a population of 80,000,000 of which say 20,000,000 are working
people, and given a certain amount of work required to provide the
80,000,000 people with food, clothes, shelter and the numerous minor
conveniences,—how many hours a day must these 20,000,000 working-people
labor to produce what we now produce, under the old unorganized system
of individual enterprise? If there were 100 telephone companies in New
York instead of one, here at once we require about ten times as many men
in this single industry as are now required, and these hundreds of
thousands of men required to operate the 100 telephone companies must be
taken away from other industries. And so on, throughout all the trades,
professions, factories and industries.
If the average day's work is now ten hours, and all those who want to
work are now employed, and only one-half of the industries are now
organized into Trusts, what would be the result if all the other
industries were organized into Trusts? First, there would not be so much
work to do, owing to the great saving and economy of combination as
before explained; and second, several hundred thousand workers who are
now employed would be thrown out of employment. Here we arrive at an
apparent obstacle. One of two things must be done; either the great
unemployed must leave the country, or be supported in idleness, or die
of starvation, or, the hours of work must be reduced! If 20,000,000
can do the required work, working ten hours a day, with half the
industries unorganized, and if organization (Trusts) would throw say
5,000,000 out of employment, then we must reduce the hours of daily
work so as to give the 5,000,000 employment!
If the hours were reduced to say six, the remaining 15,000,000 could not
do all the work in that time, and the 5,000,000 unemployed must be
called in to help. A demand for the labor of the 5,000,000 would at once
be created. Everybody would then be employed. Every industry would be
organized. Useless work and wasted energy would be eliminated. Everybody
would have shorter hours of work. The uneducated would have more time to
study and develop. The arts would then be generously patronized. Paupers
would disappear. Wealth would multiply. Ignorance and drunkenness would
have received their death-blow, because their father—Poverty—would
have been destroyed. But hold,—other difficulties present themselves:
Who would compel the organized industries (Trusts) to reduce the hours
of work? What would prevent them charging exorbitant prices? Who or what
would prevent the captains of industry filling their own pockets and
keeping the great profits to themselves? Who or what would prevent the
rich from growing richer, and the poor poorer?
SYNOPSIS.
The informed reader might well have passed over the preceding pages, for
they are purely rudimentary; but if he has been kind and patient enough
to follow me thus far, so much the better, for he has refreshed his
memory and will be more ready to grasp that which is to follow.
Before proceeding let me recite in synopsis these important truths which
I have already illustrated:
| 1. Economy.—We desire to get the greatest good from mother earth
with the least possible labor. |
| |
| 2. Waste.—The destruction of every useful atom. |
} |
| Every useless stroke of work. |
} Is a loss to all the world |
| For 100 men to do what 10 men could do. |
} |
| |
| 3. Employment.—We should not aim simply to give men employment. We
must aim to make them useful—not merely laborious. To dig holes
and then fill them up is employment, but it is not useful. So is
all that work useless and wasteful which fewer men could do better
or quicker under the Trust or Combination system. |
| |
A SUMMARY AND EXPOSITION OF THE PRECEDING PAGES.
Having familiarized ourselves with the elementary truths concerning the
Trust principle, we have now arrived at that point where we may begin to
shape an intelligent argument, but before so doing, let us summarize.
Perhaps we may now be able briefly to set forth the more important
features of the Trust or Combination.
GOOD QUALITIES OF THE TRUST.
1. It eliminates useless labor and energy.
2. It allays waste.
3. It economizes and reduces to the minimum the cost of production.
4. It reduces the world's work.
5. It tends to lessen the hours of labor.
6. It makes it possible to raise wages.
7. It makes it possible to lower the prices of commodities, and
thus reduce the cost of living.
8. It operates in harmony with the law of natural selection.
9. It destroys wasteful competition, and economizes by eliminating
the useless and the unfit.
10. It includes all of the advantages of co-operation without
altogether destroying the advantages arising out of the natural
instincts of rivalry, contest and emulation.
EVIL QUALITIES OF THE TRUST.
1. It throws large numbers out of employment.
2. It destroys many small dealers, jobbers and middlemen.
3. It tends to create monopoly in private hands.
4. It creates power in private hands arbitrarily to fix exorbitant
prices, to lower wages and to control the market.
5. It tends to create great wealth for the few at the expense of
the many, widens the chasm between the rich and the poor, and
causes concentration of wealth.
BALANCING ACCOUNTS.
We have, then, in the Trust, an immense commercial giant which is both
good and bad at the same time. If one had a fine thoroughbred horse
which balked, or shied, or kicked, should we destroy it because of these
evil qualities, forgetting that it also has an equal percentage of good
qualities? Or, should we try to cure it of its faults by training it to
do our bidding? We do not condemn and destroy a great machine because it
has a defective part, but we rather seek to remedy the defect.
The Trust is doing a wonderful work for the world. Like improved
machinery, it is lightening and lessening the toil of the human family,
and at the same time it is working a great injury. Labor-saving
machinery is also working injury, in that it is making large numbers of
men idle, but this is not sufficient reason to destroy it. Machinery and
Trusts are brothers. To be consistent, if we destroy the one we must
destroy the other. Before contemplating destruction of the Trust, let us
see if we cannot find some way to train and to harness it, like the
horse, so that it will be useful and beneficial. Let us try to devise a
method whereby the good qualities of the Trust can be preserved and the
evil qualities eliminated.
FALLACY OF THE GOVERNMENT OWNERSHIP IDEA.
The doctrine of socialism, which may be defined as government ownership
and operation of the means of production, is attractive. Some of our
ablest men are numbered among its exponents, and the political parties
which advocate socialism, in whole or in part, are growing rapidly.
The theory of socialism is so beautiful and may be so cleverly stated
that very few indeed have the acumen to withstand its assaults upon the
reason, particularly when only one side of the question is heard. The
great mass of our people have refused to accept it, not because they
believe it unsound, but because they either do not understand it or are
prejudiced and believe it to be some destructive, lawless scheme of the
discontented.
The recent coal and railroad strikes, had they long continued and
assumed really alarming proportions, would have furnished an almost
unanswerable argument in favor of the government ownership idea; and a
repetition in these or in some other important industry would perhaps
so drive home the conviction that socialism was the only remedy, that
for all we could do the elections would be carried by the party
advocating those measures, and our present form of government
overthrown.
The superficial thinker, upon reading the foregoing pages, will probably
arrive at one or two conclusions as to the Trust; either it must be
destroyed or it must be taken over by the government. The more
thoughtful will conclude that it would not be wise or expedient, even if
possible, to destroy the Trust, and his next thought will be in the
direction of public ownership. He will say that if the government can
operate the Post Office system so successfully it ought to be able to
operate the coal mines, the oil fields, the factories and the railroads,
just as the cities operate their water works, police department, and in
many cases their railroads and gas plants. If he be not too thorough in
his reasoning he will conclude that if the government operated the
Trusts, all their evil qualities would be eliminated and their good
qualities saved. It is a convenient conclusion, yet it is unsound as I
shall presently proceed briefly to show.
COMPETITION.
Some writer has said, "Competition gluts our markets, enables the rich
to take advantage of the necessities of the poor, makes each man snatch
the bread out of his neighbor's mouth, converts a nation of brethren
into a mass of hostile, isolated units, and finally involves capital and
labor in one common ruin."
Successful competition denies competition, because the successful
competitor must destroy his rival, before he can be successful.
Competition is the antithesis of co-operation. The one means isolated
units, the other an organized combination of units. The Trust method of
co-operation, however, while it destroys competition among industries,
does not destroy competition among men. Here lies an important
distinction which will develop as we proceed.
INSTINCTS.
Contest and rivalry are inherent instincts in all living things,—in
vegetable and animal life alike, and this struggle for existence
determines which shall survive. The law of survival of the fittest
determines which plant, which animal and which man shall succeed. All
these are struggling among themselves for supremacy and nature is the
supreme arbitrator of the contest. The law of natural selection cannot
be overcome. It is as fixed and immutable as the law of gravitation.
Men are not born equal. Nature never duplicates, and never creates two
things alike. Men are unequal and different in nature, in stature,
intellect, frugality, desire, industry, perseverance, hardiness and
strength. A wise Creator hath made it so.
Were all men alike they would all want the same thing—to do the same
thing, to create the same thing, and to consume the same thing—which
would result in chaotic confusion. Again, the inequality of conditions
has been one of Nature's greatest and most useful expedients in
developing and perfecting the race. To assume an equality among men is
to assume that which is impossible and that which would be unwise. It
has ever been the struggle for existence which has urged men to move
onward with vigorous, earnest and persistent effort. The desire to
surpass, to outshine, his fellows has always been and will ever be a
potent factor in his development, and when this rivalry is exerted in
the struggle for the means of sustenance then does this desire develop
into the power that moves the world. Emulation, that milder form of
competition, is that which may be said to have for its object of
attainment the applause and approval of our fellows. It has no influence
in the struggle for bread. The primary desire to sustain life and
perpetuate the species is the inherent instinct that gives power to the
secondary desire to excel or emulate a rival, and hence bread is the one
great objective point. Take away the necessity to struggle for food,
clothing and shelter, and you destroy that dynamic power that moves the world.
PUBLIC OWNERSHIP.
If contest and rivalry are inherent instincts, and if the struggle for
existence brings out men's best efforts, then, any system which destroys
the opportunity for the free exercise of these instincts in such a
struggle is at cross purposes with the basic principles of human nature,
and is therefore unsound and unscientific.
Socialism presupposes the government's taking over and operating of
every farm, factory, railroad, mine, telegraph, trade and industry. The
Goulds, the Rockefellers, the Morgans and the Schwabs must then seek
government positions with a fixed wage not to exceed the wages of their
inferior officers and workmen. If they were then to exercise their
marvellous organizing powers, it would no longer be the fear of poverty
which now inspires them. They would know that they could no longer
aspire to excel their fellows in wealth and social position, and there
would no longer be a struggle for existence.
Existence would be for everybody alike who is willing to labor a few
hours a day. Food, clothes and shelter would be in abundance for the
rich and poor, regardless of one's abilities or attainments. The one
great incentive that has always moved men to labor with energy,
enthusiasm and persistence will have vanished. The world would soon go
to sleep.
OBJECTIONS TO SOCIALISM.
1. It would create an enormous and dangerous power for the party in
control, and would probably perpetuate its control over every industry
in the land.
2. It would destroy the instincts of rivalry, contest and competition
for the necessaries of life, and that desire to excel and surpass our
fellows, which instincts now move the world.
3. It removes the incentives to progress by eliminating the
opportunities to acquire individual affluence and social superiority.
4. It would result in stagnation of business.
5. It would cause deterioration in human character because of the
removal of the incentive which makes men strive to better themselves
mentally, morally and intellectually.
6. It is unscientific in that it does not comprehend the great
inequality of men and the necessity for the inequality of conditions.
7. It does not rest upon the fundamental law of natural selection,
because it diverts men from their natural callings, since it is the
struggle for existence only that determines which is fit to survive, and
which is best fitted for certain work.
8. It is impossible of attainment except by confiscation without just
compensation to the owners of the enterprises confiscated, and to this,
modern civilization would never consent.
9. It would create an industrial machine so colossal, so complicated and
so complex that it would be entirely unmanageable.
10. It would result in chaos and confusion because of the assumed
equality of very great inequalities.
ARGUMENTS FOR SOCIALISM.
There is much in socialism that is good and true. In fact, it may be
that it is nine-tenths true; but the other one-tenth is fatal—it
outweighs the other nine-tenths.
I have heretofore in my public life, and could now, set forth many
convincing arguments in favor of the government ownership idea. If I did
so now it would necessitate answering them by repeating and enlarging
upon that which I have just set forth, which is not the purpose of this
essay. In my opinion there has been no argument for socialism yet
produced that can overcome the force of the foregoing truths.
As times and conditions change, so do opinions, and thus has it been
with the writer. Change is the only thing that is constant—strange
paradox—and mutability is the one immutable law of the universe.
CAUSES OF MONOPOLY.
Most people agree that the Trust is the result of an evolutionary
development. If this be true, it is quite certain that the movement will
continue and that the Trusts will multiply in number and in size, and
thus even greater injury will be wrought than is now complained of, and
the problem will become the more complex and the more pressing for
solution. If the Trust is the result of a natural movement it is idle to
talk of such manifestly inadequate suggestions as tariff revision,
government ownership, the single tax, and publicity as Trust destroyers;
for, if it is natural, the Trusts will grow and thrive in spite of
these. But, should we listen for a moment to those who seek to
exterminate the Trust?
OBJECTIONS TO DESTROYING THE TRUST.
1. It performs the same function in civilization as improved
machinery—lightening and lessening the toil of the human family.
2. It organized the industries, eliminates useless labor, allays waste
and economizes in the use of nature's materials.
3. It makes less labor necessary, and therefore tends to reduce the
hours of work.
4. It makes enormously greater profits, comparatively, than individual
enterprises, and therefore makes higher wages possible.
5. It reduces the cost of production to the minimum and therefore makes
possible the lowest prices.
6. It is impossible to destroy the Trust without legislating against the
co-operative and partnership principle, and this would be futile as well
as demoralizing.
THE GREAT QUESTION.
If then we are not to destroy the Trust, and if we are not to adopt the
government ownership idea, and if the Trust cannot safely be let alone
because of the injuries it is now working, and because of the still
greater injuries which it threatens to inflict upon society in the
future, what shall be done with it? What can be done with this
unmanageable monster to destroy its faults and yet not spoil its
virtues? How can we conquer the giant without slaying him?
LOCALIZATION.
One more phase of the question requires consideration before proceeding
with conclusions. In Gloversville, N. Y., and near vicinity, about
three-quarters of the inhabitants are engaged in the glove industry, and
in Troy, N. Y., the same conditions obtain as to collars and cuffs. All
over the country, we find the inhabitants of certain localities devoted
almost exclusively to one industry, such as pork-packing, manufacturing,
fishing, and mining, and even in our cities we find certain sections
devoted exclusively to banking, shipping, shopping, dry-goods,
manufacture, and commission brokerage. The people of a certain town,
having for generations devoted themselves exclusively to the manufacture
of say, bricks, have become proficient and expert in that industry. They
have invented or obtained control of the best machinery, they have
trained their children from infancy to become proficient in the
industry, and they have ever been alert to seize upon the best and
newest ideas that always come to those who devote their lives and
fortunes to the perfection of any one thing. Besides, natural advantages
such as water power, accessibility to navigable streams, climatic or
geological conditions, and geographical situation often attract and
confine the people of a locality to one industry. Racial limitations and
advantages also determine to some extent what calling a man shall
follow. The thick-skulled negro would not be a success in the icy
regions of Alaska, and the oily Esquimo would be a failure in the cotton
fields of the South. Again, nature has adapted certain regions to the
growing of cotton, or tobacco, or fruits, and in others it has deposited
vast quantities of coal, or iron, or oil.
These, in brief, are some of the facts which render irresistible the
conclusion that localization of industries and specialization of men is
the natural and inevitable condition of the future.
Now, if every locality shall in the future have its specialty and other
localities will not compete with it, as we have shown they often cannot,
then locality monopolizes that specialty.
Thus the people of Gloversville will probably obtain a monopoly of the
glove industry, likewise the people of Troy of the collar and cuff
industry, the people of Wilkes-Barre of the coal industry, and the
people of Omaha, Kansas City or Chicago, of the meat-packing industry,
and the people of Haverstraw of the brick industry—not only because of
their training and experience, but because of natural adaptation, or of
geological or geographical advantages.
Here, then, are natural monopolies at many points, and we may as well
legislate to stop the tides from rising and falling as to resist this
natural economic movement. While not necessarily a Trust, it partakes of
the nature of the Trust in effect, and it may properly be classed with
the Trust for all present purposes.
Thus, monopoly results from two known causes: the operation of the laws
of co-operation, and the operation of the laws of localization and
specialization.
INTERDEPENDENCE OF MEN
Since one can no longer make his own shoes alone and must summon the aid
of thousands of his fellows in this simple industry, so must he have the
assistance of many more thousands of his fellows to supply him with the
numerous other articles needed for his comfort. In exchange for their
aid he gives his own labor in his chosen calling, and thus does he and
every other man become a necessary unit in the vast universal
organization. All men and all industries are interdependent. Without
the steel industry, the shoe industry fails for want of nails, eyelets
and machines. Without the paper industry the steel industry fails for
want of paper, car-wheels, books, stationery, the mails and the
telegraph. Without the silk and cotton industries the glove industry
cannot thrive, and so on throughout the entire list.
SOME PARTY HISTORY IN PASSING.
Thomas Jefferson, the father of the present Democratic party, was an
individualist. He was opposed to the expenditure of public money in
repairing highways, to building state canals and to establishing even a
national university. He was strongly opposed to the government ownership
principle, and maintained that that government is best which governs
least. The keynote of his philosophy was "free individual enterprise."
Alexander Hamilton represented the opposite school of political
philosophy. He was for concentration, and centralization of power. At
the root of the Hamiltonian theory is the belief that the people are not
competent to govern themselves,—hence the idea of ruling from above. At
the root of the Jeffersonian theory is the home rule principle and
absolute confidence in the wisdom of the people. The Republican party
today is somewhat consistent with the Hamiltonian philosophy, while the
Democratic party is consistent with no one theory, and is composed of an
heterogeneous collection of philosophers (?) from divers schools; but,
assuming that the Democratic party is mainly Jeffersonian, it should be
the last party seriously to suggest the government ownership idea. Yet,
if we are to follow Jefferson's "Free individual enterprise" philosophy,
we cannot consistently destroy the Trust, for that would be interfering
with free individual enterprise. The word "free" was used by Jefferson
in the sense of freedom from governmental interference. However, there
are those who claim that the Trust destroys free individual enterprise
because of special governmental favors, such as tariffs, patent and
copyright laws and legislative discrimination, which contention is more
or less well founded, and these persons therefore wish the government to
refuse these favors, claiming that then the Trust cannot exist, and that
then there will be free individual enterprise. But this appears to be an
erroneous conclusion, in view of the enormous advantages and economies
of co-operation, and by no manner of logical reasoning is it possible
to construct a permanent remedy from such proposed action.
Briefly, there is nothing to be found in the traditions and philosophy
of either the Democratic or the Republican party, nor the various
socialist parties, to meet the situation.
Whether we approve of the collectivist school of philosophy, of which
Karl Marx was the illustrious head, or of the individualistic school, of
which Proudhon was perhaps the ablest exponent, whether we are followers
of Hamilton or Jefferson, we find we must seek out a new ground or a
middle ground somewhere, for the old theories will not meet the
situation and solve the problem.
There is some truth and virtue in everything that is false and evil,
just as there is some evil in everything that is good. We must discover
and appropriate the virtues of Jefferson and Proudhon, Hamilton and
Marx, and carefully discard their faults.
A PARABLE.
A family was once shipwrecked upon a large island. There were five
members of the family all able to work, and by a proper division of
their labor they managed to provide themselves with food, clothes, and
shelter. After a time another family was shipwrecked upon the same
island. The second family followed the example of the first, and each
prospered independently of the other. During the next year a third and
fourth family were also stranded upon the same island, for it was
unmarked on the charts and many a ship had met its fate upon its rocky
shores. As each family developed and multiplied, each having selected a
different part of the island, four little villages, some distance apart,
sprang up. During the daily hunts several other similar villages were
discovered in the interior, each representing a shipwrecked family of
previous years. As time wore on, and each village grew, and other
shiploads of people from all nations were deposited upon the island, it
came to pass that the island became quite densely inhabited, and the
villages almost touched one another at their outskirts.
One day a philosopher mysteriously made his appearance; and after
touring the island, he asked all of the inhabitants to meet him in an
open field. When the appointed day came, the entire adult population was
there, and the philosopher spoke as follows:
"You have a fine country here, and fine people. You are industrious and
simple. Each little village is independent of the other villages, for
each can provide itself with everything its people actually need. You
never ask favors from your neighboring villages. Each village has its
own corn field, its own carpenters, woods, cows, sheep, horses and
stores. But I find that you have no music, no books, no art, no places
of amusement and very little ingenuity. You all work from morn till
night and you have no time for these things. It is a constant, ceaseless
struggle for all of you to keep body and soul together. Each of you men
and women is an isolated unit. Each village is an isolated unit. You are
all isolated from the great commercial countries far beyond the seas.
Now, in travelling through your island, I found that one village had a
coal mine and all the people there used coal for fuel, while all the
other villages have to hew great trees, chop them up, and burn wood, in
order to get heat. In one village I found oil wells and the people there
burn oil, while all the other villages have to use bullrush torches. In
one village I found the soil of clay, so that the people made their
houses of bricks, while the other villages have to use blocks of wood,
or logs. In another village I found iron ore and their people have sharp
tools, while other villages have to use sharpened stones. And so on,
for I found each village has some peculiar and natural advantage over
the other. Now, my friends, why do you keep these God-given advantages
to yourselves? You villagers who have coal know that there is enough for
all the island, and so with you who have the iron, bricks, or cotton, or
fruits, or silks, or furs. Why don't you exchange what you make or raise
for the products of your neighbors? The whole island must have so many
hats, so many shoes, and so many houses, and if you divide your labors
and freely exchange your products with one another, you will find that
you will all have more comforts, and you won't have so long to work each
day. And when you have more leisure, you will begin to invent, and plan,
and enjoy yourselves, and write books, and visit one another to exchange
ideas. The gross amount that all you people produce each year is really
very, very small. If you should co-operate, you could create many times
as many commodities as you now produce."
The philosopher disappeared. The people talked about it for weeks
thereafter, and they finally began to adopt his plan. They built
railroads, and they freely exchanged products with one another. Money
then came into use. With money one could do almost anything. It
represented bread and butter. Every man tried to get all he could,—not
only to provide against future wants, but that he might outshine his
neighbors. There was gradually a great division of labor on the island,
and a great saving in work. The people no longer worked fifteen hours a
day. They did not have to. Men who had strong arms moved to the village
where they were doing something which required strength. Men who had
thick skulls moved to the cotton fields to work under a hot sun. Men who
had sharp eyes moved to the manufacturing village. Men with
executiveness became foremen, and superintendents, and presidents. And
so every village gradually became adjusted to the changed plans. Every
man sought that village or field best adapted to his physique or
abilities. Every man and every village finally became a specialist. In
the coal village they did nothing else but mine and transport coal. In
the oil village they only produced and shipped oil. In one village they
had several swift streams running through to the coast, and this village
was in the middle of the isle and not far from the iron and cotton
villages. It became the manufacturing village. This village was divided
into many different districts, and was very large. In one section, the
Manchester-like climate and misty atmosphere, and nearness to the
cotton fields, made it a natural cotton manufacturing center. Another
section was adapted for making steel and iron goods. And so on.
As time wore on, every industry on the island, localized, and every man
became specialized. Inventions and machinery multiplied. But every new
labor-saving machine saved labor, of course, and produced better goods
than hand labor. So every new machine took a job away from several
workmen. There was much complaint about this but new inventions kept
coming. There were now twenty different hat factories in the
manufacturing village, each trying to undersell the other. One day they
combined and built a large addition on the largest factory building.
Then they moved most of the other hat factory machinery in, and
destroyed the old buildings and the machinery they did not want. They
also discharged nineteen engineers, nineteen foremen, fifty bookkeepers,
two hundred drivers and packers and many other men, because they no
longer needed them. These poor discharged workmen did not know what to
do, for they had spent their lives at that business and knew no other.
First, there was a great hue and cry raised by all the little villages,
for they all felt sorry for the poor discharged workmen.
But soon, this big partnership concern began to sell the same hats for
far less than formerly, and they told the people that they could afford
to because they did not have so many men to pay, so much rent, so much
advertising, and were running things more economically. Other big
partnerships were formed all over the island, and after a while, so
great was the economy of combination that many men could not get any
work to do. Every big partnership soon took in all the little concerns
on the island, or else it drove them out of business by competition.
Some men became discouraged and began to drink rum, and others even
began to cheat and steal.
One day, some of the big partnerships had a banquet, and they talked
things over and they said: "We're making money and getting rich, but we
could do it faster if we did not have to pay so much wages. Let us raise
prices and cut wages down." This they did, and finally the workingmen
got together into a partnership of their own. They organized, and they
all said they must have just so much wages or they would not work at
all. This forced the big partnership people to pay better wages for a
while, but the two partnerships, employer and employee, were always
quarrelling. One day a very serious thing happened in the coal village.
The workmen refused to work because they thought they were not getting
enough wages. They stopped mining coal, and, while they were idle, all
other workmen on the island sent them money and provisions out of
sympathy. It was dead winter and people began to suffer and some of the
factories had to shut down. Even the railroads could not run their
engines. But the people made such an uproar that the coal owners finally
surrendered a little, reluctantly, and again the mines were operated.
Not long after this, a similar disturbance took place in the cotton
fields, and for a long while the whole island suffered for want of the
hundreds of things which cotton goes to make, even to shoe strings and
lampwicks.
For several years these outbreaks in the different villages were very
frequent. First it was a cry of, "no oil;" then, "no milk;" then, "no
iron;" then "no meat." Finally, as a last straw on the back of the
already exhausted camel, all the railroads formed a partnership, and
they too became tied up, and ceased operation. Without them, the people
could scarcely get anything to eat, or drink, or wear, or burn, and
famine threatened the island; because, every village had become devoted
to only one thing, and it could not do or produce anything else. Each
had learned to depend upon the other villages for every other article.
Then there was a great public uprising. Meetings were held everywhere.
Many people said that the trouble was because people formed
partnerships. Others answered by saying that that was not the cause, for
even if there were no partnerships, still one village would continue to
have all the coal, another all the oil, and another all the cotton, on
the island. There were no tariffs, no land monopoly, no special
privileges, no government favoritism, no railroad discrimination, and no
taxes, so those whose fathers had heard of such things in other
countries could not advance such arguments. Nature had given certain
villages a natural monopoly of certain industries. Nature had also given
certain men a natural monopoly over certain trades and pursuits by
making them apt and proficient therein. Therefore, Nature was the
criminal, and she alone was to be blamed. But what were the forlorn
islanders to do about it?
One fine day, when everything was in a turmoil of discontent and
perplexity, the philosopher again made his appearance upon the island.
Many thought him a Divine being sent from heaven to succor and advise
them; and so, when he had called them all together, he addressed them
thus:
"My friends, you have advanced and progressed and developed wondrously
in one direction, but you have made a fatal mistake. You have
specialized and localized your industries, and have affected an
efficient system of division of labor, but, you forget that this means
monopoly in private hands. You have overlooked the fact that now, every
man is dependent upon every other man, and every industry is dependent
upon every other industry. Again, when one hundred concerns combine into
a partnership, or Trust, as we call it, and throw thousands out of
employment, or when a new machine does so, you now have no way of
providing for these unemployed thousands, and you cast them out upon the
world to shift for themselves."
"O, Sir," cried one of the islanders, "why can we not return to the old
way and not have all these modern ideas? We were getting along all right
before we began to exchange commodities with each other. Why can we not
go back to the old way?"
"Ah, too late, my friend, even if you all wished it," the old
philosopher said.
"But, surely, you do not wish it," he added. "Do you remember when you
worked from early morn till late at night and then had no stoves, no
lamps, no blankets, no carpets, no crockery, no cooking utensils, no
gas, no chairs, no wagons? Do you wish to return to that? Do you wish to
isolate yourself from your fellow men and separately make and raise
everything you eat and wear?"
Everybody saw the logic of this simple philosophy, and he was beseeched
to show them what to do.
"What you must do, my friends, is to organize. Organization is all you
require. You have as yet only organized into simple isolated groups. You
must now organize all these groups. Every industry, every partnership,
is a group. Each group is dependent upon all the others. This being
true, you must form a whole. Let every man stick to his special work,
let every locality remain in its special work, let every industry and
every partnership stick to its special work,—don't disturb nature—but
all these must stick to each other! How? By forming yourselves into one
solid, compact, organized body. Call yourselves a nation. Have a
convention at stated times, and let every industry, every labor
organization, and every locality send representatives and delegates to
this convention. It is foolish of you to let the coal villages send
coal wherever, whenever, and in such quantities, as they wish. And so
with every other industry. The law of demand is not always sufficient,
as a guide to what is needed. All are demanding more coal now, yet the
coal village is sending it out, here and there, without organized plan,
system or method. The national convention should determine these
questions, and all other national questions that do not adjust
themselves naturally. When they do not adjust themselves naturally
complaint should be and will be made to the national convention, and
then the convention shall have power to settle the question in dispute.
If one industry fails to do its duty and supply the others with its
specialty, be it coal, oil, cotton, bricks or gloves, it is ground for
complaint, and it then becomes a question for the national convention.
If a partnership or industry fails to pay its employees suitable wages,
and those employees refuse to work, it becomes a national question, and
the national convention must direct that that industry must give to the
workmen a greater share or proportion of the profits of that industry.
Whether it shall be a raise in wages, or compulsory profit-sharing, is a
question for the national convention to settle. Again when men cannot
work, and they become a burden upon society, it becomes a national
question, because their non-employment is caused by the organization of
the industries, and it becomes the nation's duty to give these men an
opportunity to earn a living. This it can do by lessening the hours of
work in the industries. If all the workmen are required to work fewer
hours each day, more men will be required to work, and thus employment
can be given to all. Every national question can therefore safely be
entrusted to the national convention; and, so long as that convention
has power to act, you will have no trouble.
I believe, however, that so long as the national convention is known to
be in existence, and that it has such power of direction, there will be
little for it to do. Because, the great partnerships and industries and
labor organizations, knowing of such a supreme judicial power, will
usually so adjust their differences, and in a natural and peaceful way,
that but few questions will come before the national convention. It is
therefore the knowledge of the existence and power of such body that
will urge all men to act honorably with one another. It is the fear of
it which will be the potent factor, and not the thing itself."
After a few more remarks of explanation, the old philosopher disappeared
as mysteriously as he had come. After deliberating upon his wise
suggestion for a while, the islanders finally adopted his plan, and
forever thereafter the island never had occasion to seek his counsel.
CONCLUSIONS.
Let us assume that in the preceding pages we have proved the following
propositions:
1. That the Trust cannot and must not be destroyed.
2. That the government could not and should not own and operate the
Trusts.
3. That the Trust, if not interfered with, will work great injury to
society and that therefore some stringent action must be taken.
4. That such action must be such as will not destroy the many virtues of
the Trust.
INTERDEPENDENCE.
Let us assume that we have also proven the following propositions:
1. That every man is dependent upon his fellows for all the necessaries
and comforts of life.
2. That every industry is dependent upon other industries.
3. That the natural, proper and inevitable tendency is toward
specialization and localization.
4. That, as men specialize, and industries localize, a natural monopoly
results.
5. That each man and each industry becomes an integral part of an
immense industrial machine.
6. That harmonious action of this machine must exist, for the reason
that if a single wheel is misplaced here, or an engineer refuses to
respond there, the action of the entire machine is impaired.
In the face of these two groups of premises but one conclusion can be
drawn, and that conclusion may be expressed in a single
word—ORGANIZATION! Men, localities and industries being interdependent,
society must organize for the general welfare. A league or association
must be formed, in which every man, every locality and every industry is
represented. Like all other societies, this association must have a
common head or center. It need not be altruistic (as against egoistic),
because the welfare of one must be the concern of all, if for no other
than purely selfish motives. The whole must see that every part properly
performs its work. A man can no longer be an isolated unit, for he is
now an integral and necessary part of society. He not only owes duties
to himself, he owes duties to society. He must recognize the mutuality
of all true human interests.
GOVERNMENT.
Can such an association or society be organized? Can so immense a
collection of bodies meet and combine with unanimity? Fortunately, we
need not speculate on the correct answer to these questions. We have an
illustrious example at hand. Society has already organized. The
organization is improperly called government. Government is simply
organized society. We elect a President as a public servant, not as a
governor. He does not, or should not, reign over us, but serve us, and
do our bidding. This is not a monarchy, but a democracy.
And so the great machine is already organized. Unfortunately we are not
in the habit of looking at government as a huge industrial machine,
and our law makers are too prone to assume arbitrary and tyrannical
power, regardless of the theory of democracy upon which all our
institutions rest. Furthermore, our lawmakers are mostly lawyers, rather
than industrialites.
NATIONAL DIRECTION.
Either organized society (government) is supposed to protect its members
(citizens), or it is not. If it is, then it is its duty to see that the
necessaries of life are not monopolized and placed beyond the reach of
its people. If it is not, then the organization is a failure, for
without the means of sustenance a nation cannot exist. If, then, we may
be permitted to view government as an organization of society having for
its aim the welfare and protection of its members, why shall not that
society have power to DIRECT the industrial machine? If all men and
industries in the nation are interdependent, why shall there not be a
NATIONAL DIRECTION, so that every industry shall be made to do its duty
toward society? If people must have coal, or oil, or meat, or
transportation, or gloves, and one set of men or one locality has a
monopoly thereof, why shall not the nation DIRECT that those men or
those localities shall do right by all other men and by all other
localities? That they will not always do so in the absence of national
direction is evidenced by the recent strike. The labor unions of the
country are probably able and willing to support the strikers for years
when a vital principle is involved, and so thoroughly is labor
organizing that serious conditions are likely to obtain in that most
important of all industries, transportation, to which industry all
others are so closely related and on which they are so helplessly dependent.
FIXING PRICES.
If government is to "promote the general welfare" by assuming the
obligation of keeping the necessaries of life within the reach of its
people, it must of necessity prohibit the fixing of prices of those
necessaries beyond the purchasing power of the people. Thus, if the coal
operators having a monopoly of coal choose to make the price of that
necessary $50 a ton, the national board of arbitrators (be it Congress
or some other body), must fix a reasonable price and if the employees of
any industry have a grievance, they cannot be allowed to strike and stop
work—their grievances must be arbitrated by the National Board.
Probably such a course would never become necessary, when the industrial
organization is perfected and the readjustment accomplished, but the
power of national direction must be ever present, if for no other
purpose than to act as a warning.
FIXING HOURS OF WORK.
What is true of prices is equally true of the hours of work. Government
will not owe every man a living, but it will owe every man an
opportunity to earn a living. As the principle of co-operation develops
and is utilized, so great would be the economy that many would naturally
be thrown out of employment. Thus, rather than create a public
poorhouse, or "idle house," the hours of daily work must be reduced to
include all who are able and willing to labor.
If the tobacco manufacturers by combining and organizing the Shoe Trust
have thrust say 50,000 travelling salesmen and jobbers out of
employment, it should not complain if they are nationally directed to
contribute toward their support in the same or in some other more useful
and productive industry by being directed to reduce the hours of work of
all men who are employed by it, thus making room for all who desire to
labor. Co-operation and combination carry their responsibilities, and
the co-operators must be presumed to intend the natural consequences of
their acts. Hence, the nation is justified in directing a reduction in
the hours of work whenever occasion requires.
And this is not so radical as at first appears. Many of our State
Legislatures have heretofore passed laws fixing the price of gas,
telephone service and railroad rates, and they have even fixed the hours
of daily work in certain industries. Again, witness the volumes of law
in regard to buildings, sweat shops, hotels, mines and railroads,
designed and passed for "public safety" and protection, and for "the
general welfare."
Again, witness what was done by all governments during the Great War!
LABOR'S SHARE.
Those who claim that "labor creates all wealth" must concede that the
foreman, the superintendent, the president and the manager is just as
much a laborer as the man who wields a hammer or drives a truck. That
the latter do not often get a fair share of the product or of "what he
produces" is, of course, true, for "rent, interest and profit" eat up
much of the proceeds of his toil. Without delving needlessly into the
profound question of the relations between capital and labor, be it said
that labor can, by a system of national direction such as is here
suggested, obtain a fair and just reward for its toil through a system
of compulsory profit-sharing. There are already many cases in America
of voluntary profit-sharing with employes, and employers have found that
their men work better, quicker and more faithfully when given an
interest in the business. This is not urged as a necessary part of the
national direction idea, but as a most desirable part, and I am of
opinion that in compulsory profit-sharing with employes lies the real
solution and adjustment of the differences between capital and labor.
COMPULSION.
The word "compel" is a harsh word. It strikes at personal liberty and
individual freedom and attacks that spirit of independence which makes
men brave, honest and noble.
The theory of democracy assumes that every man has an inherent and
absolute right to freedom and liberty in so far as in exercising that
right he does not impair the rights of his fellows. He is the sole judge
of what he wants and of what is best for him, but in satisfying those
wants he must not interfere with the rights of others.
Law and government are designed to protect those rights, and in so doing
the right of compulsion is implied. All our institutions, courts, laws
and legislative departments rest upon the power of compulsion, and
without that power our form of government becomes ineffective. We compel
a man to keep his contract by applying to the court for an injunction;
we compel the vicious to obey certain laws or we imprison him; we compel
railroads to charge not more than a certain fare; we compel house
owners to clear their sidewalks of snow; we compel men to pay other men
what they owe, and if they do not, we compel the sheriff to take away
his property; we compel importers to pay a tariff; we compel husbands to
support their families, and we compel all to help support the government
by taxation.
The more civilization advances, the more society finds it necessary to
organize; and the more organized society is, the more compulsion is
necessary, until men become more perfect. Every individual now owes
duties to the collectivity as well as to himself, and the power of
compulsion must be vested in the collectivity so that those duties may
be enforced.
If we have arrived at that stage of progress when every man can be
depended upon to perform his whole duty by respecting the rights of
others, keeping his contracts and doing only those things which will
benefit society, and if the Trust can be depended upon to charge
reasonable prices, pay just wages and in all things respect the rights
of others, then the word compulsion may be stricken from the political
dictionary. If we have not, if men are still selfish, dishonest and
inconsiderate of the rights of other men, then the right to compel must
be a part of the political machinery.
TAXATION.
The question may be asked, What power can compel the Trusts to do that
which they have been directed to do by the nation? For example, suppose
the coal mines remained idle,—what if the operators refused to obey the
national directory? It is not the purpose of this brief writing to draw
up a complete code, showing in detail how each and every man, industry
and question shall be handled, but simply to show that such a code can
be drawn and its regulations enforced. How do we now compel the electric
lighting companies to charge not more than a certain rate, the importers
to pay a tariff, the gas companies to supply us with gas at certain
prices, the law-breaker to pay his fine, and the corporations to pay
their taxes and penalties? These methods are well known, and they would
perhaps be adequate if adopted by the nation to compel its members to
keep its rules and regulations. If not, a certainly effective means of
inducement would be found in a tax on land values; for then, if a Trust
refused to obey, the land upon which it rests could be so taxed as to
render it unprofitable to hold it idle, and the Trust managers would
soon be compelled either to operate or sell the plant. The land monopoly
evil is serious and threatening, since all our land is owned by about
ten per cent. of our people, and, unfortunately, we are in the habit of
inviting men to buy vacant land and hold it idle while waiting for a
rise in values. The earth being the source of all wealth, those who
monopolize the land have a first lien upon all production. There appears
to be no immediately practicable remedy for this deplorable and
unnatural state of affairs, yet it is quite certain that whether or not
the contention of the Single Taxers is sound, national direction will be
a step in the right direction; for it will mean a more compact and more
perfect organization of society, and then we shall be able to see more
clearly just where the evils exist, just what is at fault, and just what
would remedy the defects in our present system. Besides, it would
permanently fix the taxing power in the national collectivity, and when
the various methods of taxation were being considered in the national
councils, the law of cause and effect could more easily be traced and
distinguished owing to the solidarity of society and the specific
information and complaint that would be forthcoming from the most
competent and well informed sources.
CONSTITUTIONS.
Must the constitution be amended in order that NATIONAL DIRECTION shall
be put into effect? And, if so, would it take eight or ten years before
this could be done? And is that constitution of ours, which has carried
us so successfully through a century and a quarter, so sacred that it
should be kept, with religious fidelity, unchanged and unaltered? Recent
events seem to cry out No!
As times and conditions change, so do men, opinions and laws, and so
should constitutions. It is superstitious bigotry to hold that our
revolutionary forefathers were infallible and that they could and did
foresee the conditions that are present in the opening years of the
second century after theirs.
On November 15th, 1777, the thirteen original colonies were banded
together under what was called the "Articles of Confederation." Article
II thereof said in part: "Each State retains its sovereignty, freedom
and independence." Article III said: "The said States hereby severally
enter into a firm league of friendship with each other, for their mutual
and general welfare, binding themselves to assist each other." In the
following articles they vested in the Congress full power to make such
rules and regulations as it deemed best for the general welfare of all
the people.
Now, if all of the industries and labor organizations of the nation were
to meet and agree to do as did the thirteen States, each reserving the
right to send delegates to an empowered convention, then that convention
would have power to pass such laws as were necessary to carry out the
remedies hereinbefore suggested.
If a constitution nearly a century and a half old, which has already
been amended seventeen times, stands in the way of advancement and the
general welfare, would any man say that the obstacle should not speedily
be removed from that constitution?
The solution herein suggested does not necessarily require action by
Congress, and therefore an amendment to the constitution may not be
required. Nevertheless, a Congress could be empowered to act, and if it
were properly constituted and contained business men and representatives
from all industries and labor organizations, instead of lawyers and
politicians, it would answer the very purpose. Perhaps in time the
people will learn what kind of men to send to Congress. NATIONAL
DIRECTION would not necessarily require an immense industrial
department of government. NATIONAL DIRECTION is not national ownership.
It does not embrace the idea of absolute control. It does not place the
management of the Trusts in the hands of a department of government, or
of a Congress, for each industry should continue to manage its own
affairs, since it alone can be thoroughly conversant with the details of
its own plant.
I have aimed to show:
1. That the Trust has as many virtues as faults.
2. That it can be so treated as to retain its virtues and to
eliminate its faults.
3. That the Trust must not be destroyed.
4. That the government must not own and operate the Trust and
Industrial Combinations.
5. That NATIONAL DIRECTION is the only scientific and practical
solution.
The arguments herein are intended to show the advantages and
practicability of NATIONAL DIRECTION of our industries, and the
harmonious operation of those natural laws and forces which are
incessantly working out their destiny. The inherent instincts of man,
his nature, his desires, his ambitions, his weaknesses must all be
considered in forming conclusions. That which is right will finally
prevail. We may retard the onward march of civilization, but we cannot
permanently check it. Not only does reason and logic urge the acceptance
of the conclusions herein presented, as it appears to the writer, but
unmistakable evidences of a natural movement in the direction indicated
are now apparent.
If the premises given are sound, NATIONAL DIRECTION is desirable. If the
conclusions are logical, NATIONAL DIRECTION is inevitable.