Chapter XII: Front Matter (12)

It is almost equally dangerous either to blink evils and refuse to acknowledge their existence or to strike at them in a spirit of ignorant revenge, thereby doing far more harm than is remedied. The need can be met only by careful study of conditions, and by action which, while taken boldly and without hesitation, is neither heedless nor reckless. It is well to remember on the one hand that the adoption of what is reasonable in the demands of reformers is the surest way to prevent the adoption of what is unreasonable; and on the other hand that many of the worst and most dangerous laws which have been put upon the statute books have been put there by zealous reformers with excellent intentions.

This problem has a hundred phases. The relation of the capitalist and the wage-worker makes one; the proper attitude of the State toward extreme poverty another; the proper attitude of the State toward the questions of the ownership and running of so-called “public utilities,” a third. But among all these phases, the one which at this time has the greatest prominence is the question of what are commonly termed “trusts,” meaning by the name those vast combinations of capital, usually flourishing by virtue of some monopolistic element, which have become so startlingly common a feature in the industrial revolution which has progressed so rapidly during recent years.

Every new feature of this industrial revolution produces hardship because in its later stages it has been literally a revolution instead of an evolution. The new inventions and discoveries and the new methods of taking advantage of the business facilities afforded by the extraordinary development of our material civilization have caused the changes to proceed with such marvelous rapidity, that at each stage some body of workers finds itself unable to accommodate itself to the new conditions with sufficient speed to escape hardship. In the end the accommodation of the class takes place; at times too late for the well-being of many individuals. The change which would be unaccompanied by hardship if it came slowly, may be fraught with severe suffering if it comes too fast, even when it is in the end beneficial. Occasionally, moreover, the change is positively deleterious, and very often, even when it is on the whole beneficial, it has features which are the reverse. In some cases, while recognizing the evil, it is impossible with our present knowledge to discover any remedy. In others, a remedy can be applied, but as yet only at a cost that would make it worse than the trouble itself. In yet others it is possible, by acting with wisdom, coolness and fearlessness, to apply a remedy which will wholly or in great part remove the evil while leaving the good behind. We do not wish to discourage enterprise. We do not desire to destroy corporations; we do desire to put them fully at the service of the State and the people.

The machinery of modern business is so vast and complicated that great caution must be exercised in introducing radical changes for fear the unforeseen effects may take the shape of widespread disaster. Moreover, much that is complained about is not really the abuse so much as the inevitable development of our modern industrial life. We have moved far away from the old simple days when each community transacted almost all its work for itself and relied upon outsiders for but a fraction of the necessaries, and for not a very large portion even of the luxuries, of life. Very many of the anti-trust laws which have made their appearance on the statute books of recent years have been almost or absolutely ineffective because they have blinked the all-important fact that much of what they thought to do away with was incidental to modern industrial conditions, and could not be eliminated unless we were willing to turn back the wheels of modern progress by also eliminating the forces which had brought about these industrial conditions. Not only trusts, but the immense importance of machinery, the congestion of city life, the capacity to make large fortunes by speculative enterprises, and many other features of modern existence could be thoroughly changed by doing away with steam and electricity; but the most ardent denouncer of trusts would hesitate to advocate so drastic a remedy. What remains for us to do, as practical men, is to look the conditions squarely in the face and not to permit the emotional side of the question, which has its proper place, to blind us to the fact that there are other sides. We must set about finding out what the real abuses are, with their causes, and to what extent remedies can be applied.

That abuses exist, and that they are of a very grave character, it is worse than idle to deny. Just so long as in the business world unscrupulous cunning is allowed the free rein which, thanks to the growth of humanity during the past centuries, we now deny to unscrupulous physical force, then just so long there will be a field for the best effort of every honest social and civic reformer who is capable of feeling an impulse of generous indignation and who is far-sighted enough to appreciate where the real danger to the country lies. The effects are bad enough when the unscrupulous individual works by himself. They are much worse when he works in conjunction with his fellows through a giant corporation or trust. Law is largely crystallized custom, largely a mass of remedies which have been slowly evolved to meet the wrongs with which humanity has become thoroughly familiar. In a simple society only simple forms of wrong can be committed. There is neither the ability nor the opportunity to inflict others. A primitive people provides for the punishment of theft, assault and murder, because the conditions of the existing society allow the development of thieves and murderers and the commission of deeds of violence; but it does not provide for the punishment of forgery because there is nothing to forge, and therefore, no forgers. The gradual growth of humanitarian sentiment, often unconscious or but semi-conscious, combined with other causes, step by step emancipated the serf from bodily subjection to his over-lord; he was then protected in his freedom by statute; but when he became a factory hand the conditions were new and there were no laws which prevented the use of unguarded machinery in the factories, or the abuses of child labor, forced upon the conscientious employers by the unscrupulous until legislation put them on an equality. When new evils appear there is always at first difficulty in finding the proper remedy; and as the evils grow more complex, the remedies become increasingly difficult of application. There is no use whatever in seeking to apply a remedy blindly; yet this is just what has been done in reference to trusts.

Much of the legislation not only proposed but enacted against trusts is not one whit more intelligent than the mediæval bull against the comet, and has not been one particle more effective. Yet there can and must be courageous and effective remedial legislation.

To say that the present system of haphazard license and lack of supervision and regulation, is the best possible, is absurd. The men who endeavor to prevent the remedying of real abuses, not only show callous disregard for the suffering of others, but also weaken those who are anxious to prevent the adoption of indiscriminate would-be remedies which would subvert our whole industrial fabric. The chicanery and the dishonest, even though not technically illegal, methods through which some great fortunes have been made, are scandals to our civilization. The man who by swindling or wrongdoing acquires great wealth for himself at the expense of his fellow, stands as low morally as any predatory mediæval nobleman and is a more dangerous member of society. Any law, and any method of construing the law which will enable the community to punish him, either by taking away his wealth or by imprisonment, should be welcomed. Of course, such laws are even more needed in dealing with great corporations or trusts than with individuals. They are needed quite as much for the sake of honest corporations as for the sake of the public. The corporation that manages its affairs honestly has a right to demand protection against the dishonest corporation. We do not wish to put any burden on honest corporations. Neither do we wish to put an unnecessary burden of responsibility on enterprising men for acts which are immaterial; they should be relieved from such burdens, but held to a rigid financial accountability for acts that mislead the upright investor or stockholder, or defraud the public.

The first essential is knowledge of the facts, publicity. Much can be done at once by amendment of the corporation laws so as to provide for such publicity as will not work injustice as between business rivals.

The chief abuses alleged to arise from trusts are probably the following: Misrepresentation or concealment regarding material facts connected with the organization of an enterprise; the evils connected with unscrupulous promotion; overcapitalization; unfair competition, resulting in the crushing out of competitors who themselves do not act improperly; raising of prices above fair competitive rates; the wielding of increased power over the wage-earners. Of course none of these abuses may exist in a particular trust, but in many trusts, as well as in many corporations not ordinarily called trusts, one or more of them are evident. Some of these evils could be partially remedied by a modification of our corporation laws; here we can safely go along the lines of the more conservative New England States, and probably not a little farther. Such laws will themselves provide the needed publicity, and the needed circumstantiality of statement. We should know authoritatively whether stock represents actual value of plants, or whether it represents brands or good will; or if not, what it does represent, if anything. It is desirable to know how much was actually bought, how much was issued free; and to whom; and, if possible, for what reason. In the first place, this would be invaluable in preventing harm being done as among the stockholders, for many of the grossest wrongs that are perpetrated are those of promoters and organizers at the expense of the general public who are invited to take shares in business organizations. In the next place, this would enable us to see just what the public have a right to expect in the way of service and taxation. There is no reason whatever for refusing to tax a corporation because by its own acts it has created a burden of charges under which it staggers. The extravagant man who builds a needlessly large house nevertheless pays taxes on the house; and the corporation which has to pay great sums of interest owing to juggling transactions in the issue of stocks and bonds has just as little right to consideration. But very great hardship may result to innocent purchasers; and publicity by lessening the possibility of this would also serve the purpose of the State.

Where a trust becomes a monopoly the State has an immediate right to interfere. Care should be taken not to stifle enterprise or disclose any facts of a business that are essentially private; but the State for the protection of the public should exercise the right to inspect, to examine thoroughly all the workings of great corporations just as is now done with banks; and wherever the interests of the public demand it, it should publish the results of its examination. Then, if there are inordinate profits, competition or public sentiment will give the public the benefit in lowered prices; and if not, the power of taxation remains. It is therefore evident that publicity is the one sure and adequate remedy which we can now invoke. There may be other remedies, but what these others are we can only find out by publicity, as the result of investigation. The first requisite is knowledge, full and complete.

* * * * *

FIRST ADMINISTRATION

INDEX

FIRST ADMINISTRATION

INDEX

A
Achievement, cost of, 92

Adams, John Quincy, President, 12, 87, 745
quoted, 755
William, Rev., 45

Administration, qualities needed for, 352
requirements for a good, 5

Admiral of the Navy, 631

Agencies, Indian, reduction of, 595

Aggression by United States, no, 624

Agitation, ignorant, dangers of, 140

Agitators assist their own enemies, 541

Agricultural Association, New York State, 466
experiment stations, 128
prosperity, 251
questions, 438

Agriculture, Alaskan, 424
competition in, 563
Department of, 127, 249, 303, 305, 440, 557, 559, 681, 684
mining and, 437
work of, 303, 304, 557
work in, great, 557

Aguinaldian oligarchy, 65

Aguinaldo, Emilio, 317

Alabama, 511, 517

Alaska, 204, 243, 326, 328, 338, 393, 421, 638-639, 677-678
agriculture in, 424
boundaries of, 664-667
cable to, 678
coal-land laws in, 677
Congressional Committee in, 639
Delegate from, 639
Delegate from, a, 423
development of, 424-425, 677
Farming lands in, 677
fisheries in, 424, 677
Fisheries Commission in, 678
forests of, 638, 677
future of, 422, 428
gateway to, 428
hatcheries, salmon, 678
importance of, great, 426
Indians in, 678
interest in, 428
land laws of, 638, 677
land patents in, 678
laws on, 423, 638
light-houses in, 678
lumbering in, 424
mineral wealth of, 677
mines of, 424
mining interests in, 665
population of, future, 428
provisional boundary of, 665
purchase of, 422
railroads in, 678
resources of, 429, 638
revenue questions in, 665
roads and trails in, 678
salmon industry in, 424, 638, 678
settlers in, 425
stock-raising in, 677
transportation in, 425
Tribunal, appropriation for, 667

Alaskan Boundary Convention, 665
Boundary Tribunal, 665-666
Treaty, 1867, 664

Albany, New York, 758, 760, 770

Albuquerque, N. M., 368

Alcibiades, galleys of, the, 579

Alfalfa, cultivation of, 305

Alleghany Mountains, 202, 243, 338, 425, 453

Allotment Act, General, 594

Alma Mater, debt to one’s, 458

Alverstone, Lord, 665

America, business position of, 540
debt of, to soldiers, 14
debt of, to Virginia, 453
destiny of, 220
for all Americans, 18
future of, 186, 360, 471
glorious past of, 330
headship of, 297
importance of, growing, 86, 268
mercantile growth of, 393
not aggressive, 578
pre-eminence of, 213, 239
prosperity conditions in, 577
race strains in, 450
true ideals of, 380
united, proofs of, 19
unity of interests in, 373

American, the average, 157, 358, 472
blend of races, an, 450
character of average, 297
creed of the, 607
duty of each, 502
educational advantages, 406
fighting edge of, 487
Federation of Labor, 521
good, the, 136
government, genius of, 430, 434
heritage of valor, 452
humorist, an, quoted, 496
industries, market for, 297
influence, growth of, 395
Nation, founding of, 345
no physical defect in, 510
officer, typical, 589
primacy, 257
Republic, success of the, 287
seamen, 463
shipping, superiority of, 554
ships, need of, 554
spirit, 200, 487-488
steamship line, contract with, 656
true, ideals of the, 409
typical, McKinley a, 398
typical virtues of an, 398
Revolution, Sons of the, 36-39

Americanism, example of, 166
genuine, 124
meaning of, 38

Americans, union of, 168

Amnesty in Philippines, 96

Amusement, true ideal of, 453

Anarchists, Congress and, 535
dangerous criminals, 533
defenders of, 530
exclusion of, 549
Federal Courts and, 535
immigration of, 535
murderers and, 534
protected by law, 536
suppression of, 534

Anarchy, arguments for, foolish, 530
crime against humanity, 535
danger of, in Philippines, 569
despotism and, 534
encouraged by lynching, 527
forerunner of tyranny, 524
freedom and, 529-530
governmental, 17
mob violence a form of, 523
not social discontent, 533
triumph of, 534
war against, 17

Animosity, class and sectional, 619

Annapolis, Md., 38, 120, 412, 633
Naval Academy at, 581

Antagonism to industrial conditions, 538

Anthracite on the free list, 296, 617

Antietam, Md., 482
battle of, 482-488
battlefield of, 507

Antilles, Queen of the, 567

Anti-Rebate Law, 280

Anti-Trust Laws, 322, 649

Anti-Trust Laws, actions under, 283
appropriations for, 612, 660
enforcements of, 282, 284, 612
funds for enforcing, 280
ineffective, 781, 784
(See also Trusts, Corporations, Combinations, etc.)

Antung, China, 674

Appalachian Mountains, 255

Appointments, Civil Service, 680
fixed policy in, 518
merit system in, 591, 644
negro, defended, 516
negro, in South, 516
negro, fewness of, 512
policy in making, 514, 518
whites and negroes in, 511-512

Appomattox, battle of, 486

Appropriation Act (Feb. 25, 1903), 660

Appropriations, Anti-Trust Law, 612, 660
economy in, 654
fraud, 660-662

Arbitration, growth of, 662
international, triumph of, 669
International, Union, 672, 673
international, union for, 672
labor troubles and, 308
peace and, 622-623
The Hague Court of, 669

Architecture of the White House, 644

Arctic Brotherhood, the, 421

Arid lands, reclamation of, 679, 682
reservoirs in, 561
surveys in, 682
Western, 438

Arizona, 158, 362, 369
irrigation in, 370
land-reclamation in, 682

Arlington, D. C., 40, 56
Cemetery, 40
soldiers’ monument at, 53

Armaments, object of, 266

Armies as fighting machines, 492

Army, United States, the, 312, 487, 505, 584-590, 629-631
attacks on the, 313
attention deserved by, 10
camp sites for, 689
capacity demanded in, 587
commands in the, 629
constructive force, a, 590
criticisms of the, 61
debt to, public, 588
details in, four-year, 588
efficiency of the, 584, 588, 689
efforts for efficiency in, 587
elimination in, grade, 586
favorite subject of attack, 9
general staff law in, 689
grade elimination in, 586
increase of, not needed, 584
legislation on the, 319, 589
limits of, maximum and minimum, 588
manœuvre work in the, 629, 689
marksmanship in, 630
material in the, good, 629
merit sole rule in the, 586
minimum of the, 629
officers in, senior, 629
pay in, increased, 588
peace, an instrument of, 590
political influence in, 689
preference and seniority in, 586
promotions in, suggestions on, 689-690
reforms in, three prime, 588
regular, the, 319, 320, 492
Reorganization Act, 588
reorganization, benefits of, 589
senior grades in, men for, 586
seniority promotions in, 689
small size of the, 631-632
source of pride, a, 10
staff divisions in the, 588
staff of the, general, 585
standard of, high, 584
traducers of the, 313
training in the, 584, 587, 629
units of the, 584
volunteer, the, 492
wrongdoers in the, 494
Y. M. C. A. in the, 228
(See also under Soldiers, War, Philippines, etc.)

Army and Navy, the, 463
no politics in the, 209
pride in the, 492
value of the, 48-49

Arrogance, evils of, 472

Arthur, Chester A., President, 119

Artillery, chief of, 588
corps of, 588

Artificial powers, regulation of, 609
(See also under Trusts, Corporations, etc.)

Asia, cable to, need of, 573
trade with, 563

Asiatic barbarism in Philippines, 238
peoples and the Filipinos, 410

Associations, benefit of, 69
German, debt to, 452
good due to, 340

Athens, Ga., postmaster of, 515

Atlanta, Ga., surveyorship of, 515
“Constitution,” 518

Atlantic Ocean, 338, 372, 393
interests in, our, 97
line, coast, 393

Attorney-General, United States, 279, 281, 283, 331, 612, 623, 660,
662
report of the, 660

Auditor, United States, report of, 675

Augusta, Me., 124

Aycock, Charles B., Governor, 27

Aylesworth, A. B., 666

B

Babylon, 113, 151, 170

Baltimore, Maryland, 449
mingling of races in, 450
saved to the Union, 451
Turn Verein, 451

Bangor, Maine, 126

Banking Law, National, 554

Banks, circulation and the, 617
servants of commerce, 617
Savings, as corporations, 174
deposits in, 608

Barstow, California, 372

Battleships, crews for new, 583
need of more, 581
use for good, 582

Bayard, Thomas F., Secretary, 705

Beaupré, Arthur M., Consul, 699, 747

Beef Trust, injunction against, 282-283
investigation of, 283

Beirut, Syria, troubles at, 673

Belgium, 668, 669

Berkeley, California, 404

Betterment, progressive, 466

Blaine, James G., Secretary, 124, 622

Blake, Homer C., Admiral, 579

Blumenberg, General, 451

Board of Trade, National, 225

Body, strength in the, 30, 393

Bogota, American Minister at, 715 718
Colombian gunboat, 730
government, the, 721
insurrection at (1853), 700

Bookbinders, Brotherhood of, 519

Boston, Massachusetts, 108, 401
United States ship, 727

Boundaries, National, 676

Boxer uprising in China, 10, 601-602

Boynton, General, 165

Brakes, locomotive, law on, 310

Bravery expected, not praised, 463

Breckinridge, General, 39, 505

Bremerton, Washington, 420

Brest, France, cable from, 626

Bribery, corruption and, 662-664
enormity of, 663
extradition for, 662
popular government and, 663
treaties touching, 662

Briesen, Arthur von, 657

British Ambassador, the, 261
Empire, sympathy in the, 605
steamships, 656

Brooklyn, Borough of, N. Y., 29

Brotherhood, example of, an, 486
civil and military, 14
feeling of, decline in, 101
human, cause of, 449
international, 50
lesson of, 357
military and civil, 14
right of, the, 491
rule of, indispensable, 548

Brotherhood of Bookbinders, 519

“Brother Jonathan,” a descendant of, 37

Buchanan, James, President, 2

Buffalo, New York, 597

Bull Run, battle of, 141

Burden-bearing, blessing of,
need of, 498

Burleigh, Edwin C., Governor, 124

Burr, Aaron, 6

Business, changing needs of, 301
confidence, return of, 537
corporate, aids to, 650
cunning in, unscrupulous, 782
danger of upsetting, 614
delicate mechanism of, 105, 541
disasters, wide effects of, 540
energies, paralysis of, 614
interests at law, 477
interests in Washington, 225
interests, wise laws for, 541
interstate, corporations in, 609
interstate, regulation of, 611
machinery of, complicated, 781
mechanism of, delicate, 105, 541
supremacy in, 539
world, natural forces in, 538

Butler, Nicholas Murray, 27

Butte, Montana, 432

Byzantium, 337