CHAPTER II

A NECESSARY CONTRAST

If the whole might of Government was used in the aggrandizement and

perpetuation of a propertied aristocracy, what was its specific

attitude toward the working class? Of the powerful few, whether

political or industrial, the conventional histories hand down grossly

biased and distorted chronicles. These few are isolated from the

multitude, and their importance magnified, while the millions of

obscure are nowhere adequately described. Such sterile historians

proceed upon the perfunctory plan, derived from ancient usage in the

days when kingcraft was supremely exalted, that it is only the mighty

few whose acts are of any consequence, and that the doings of the

masses are of no account.

GOVERNMENT BY PROPERTY INTERESTS.

Hence it is that most histories are mere registers of names and

dates, dull or highly-colored hackneyed splurges of print giving no

insight into actual conditions.

In this respect most of the prevailing histories of the United States

are the most egregious offenders. They fix the idea that this or that

alleged statesman, this or that President or politician or set of

politicians, have been the dominating factors in the decision and

sway of public affairs. No greater error could be formulated. Behind

the ostentatious and imposing public personages of the different

periods, the arbiters of laws and policies have been the men of

property. They it was who really ruled both the arena and the arcana

of politics.

It was they, sometimes openly, but more usually covertly, who

influenced and manipulated the entire sphere of government.

It was they who raised the issues which divided the people into

contesting camps and which often beclouded and bemuddled the popular

mind. It was their material ideals and interests that were engrafted

upon the fabric of society and made the prevailing standards of the

day.

From the start the United States Government was what may be called a

regime swayed by property.

The Revolution, as we have seen, was a movement by the native

property interests to work out their own destiny without interference

by the trading classes of Great Britain. The Constitution of the

United States, the various State Constitutions, and the laws, were,

we have set forth, all reflexes of the interests, aims, castes and

prejudices of the property owners, as opposed to the non-propertied.

At first, the landholders and the shipping merchants were the

dictators of laws. Then from these two classes and from the tradesmen

sprang a third class, the bankers, who, after a continuous orgy of

bribery, rose to a high pitch of power. At the same time, other

classes of property owners were sharers in varying degrees in

directing Government. One of these was the slaveholders of the South,

desperately increasing their clutch on government administration the

more their institutions were threatened. The factory owners were

likewise participants. However bitterly some of these propertied

interests might war upon one another for supremacy, there was never a

time when the majority of the men who sat in Congress, the

legislatures or the judges did not represent, or respond to, either

the interests or the ideals of one or more of these divisions of the

propertied classes.

Finally, out of the landowners, slaveowners, bankers, shippers,

factory masters and tradesmen a new class of great power developed.

This was the railroad-owning class. From about the year 1845 to 1890

it was the most puissant governing class in the United States, and

only ceased being distinctly so when the industrial trusts became

even mightier, and a time came when one trust alone, the Standard Oil

Company, was able to possess itself of vast railroad systems.

These different components of the railroad-owning class had gathered

in their money by either outright fraud or by the customary

exploitative processes of the times. We have noted how many of the

landholders secured their estates at one time or another by bribery

or by invidiously fraudulent transactions; and how the bankers, who

originally were either tradesmen, factory owners or landowners, had

obtained their charters and privileges by widespread bribery. A

portion of the money thus acquired was often used in bribing Congress

and legislatures for railroad charters, public funds, immense areas

of land including forests and mines, and special laws of the most

extraordinary character.

CONDITIONS OF THE NON-PROPERTIED.

Since Government was actually, although not avowedly or apparently, a

property regime, what was the condition of the millions of non-

propertied?

In order to get a correct understanding of both the philosophy and

the significance of what manner of property rule was in force, it is

necessary to give an accompanying sketch of the life of the millions

of producers, and what kind of laws related to them. Merely to

narrate the acts of the capitalists of the period is of no enduring

value unless it be accompanied by a necessary contrast of how

Government and capitalist acted toward the worker. It was the worker

who tilled the ground and harvested the produce nourishing nations;

whose labor, mental or manual, brought forth the thousand and one

commodities, utensils, implements, articles and luxuries necessary to

the material wants of civilization. Verily, what of the great hosts

of toilers who have done their work and shuffled off to oblivion?

What were their aspirations, difficulties, movements and struggles?

While Government, controlled by both the men and the standards of

property, was being used as a distributing instrument for centering

resources and laws in the hands of a mere minority, what were its

methods in dealing with the lowly and propertyless?

Furthermore, this contrast is indispensable for another reason.

Posterity ever has a blunt way of asking the most inquisitive

questions. The inquirer for truth will not be content with the simple

statement that many of the factory owners and tradesmen bribed

representative bodies to give them railroad charters and bountiful

largess. He will seek to know how, as specifically as the records

allow, they got together that money. Their nominal methods are of no

weight; it is the portrayal of their real, basic methods which alone

will satisfy the delver for actual facts.

This is not the place for a voluminous account of the industrial

development of the United States. We cannot halt here to give the

full account of the origin and growth of that factory system which

has culminated in the gigantic trusts of to-day. Nor can we pause to

deal with the manifold circumstances and methods involved in that

expansion. The full tale of the rise and climax of industrial

establishments; how they subverted the functions of government to

their own ends; stole inventions right and left and drove inventors

to poverty and to the grave; defrauded the community of incredible

amounts by evading taxation; oppressed their workers to a degree that

in future times will read like the acts of a class outsavaging the

savage; bribed without intermission; slaughtered legions of men,

women and children in the pursuit of profit; exploited the peoples of

the globe remorselessly--all of this and more, constituting a weird

chapter of horrors in the progress of the race, will be fully

described in a later part of this work. [Footnote: See "Great

Fortunes from Industries."]

But in order to contribute a clear perspective of the methods and

morals of a period when Government was but the mannikin of property--

a period even more pronounced now--and to give a deeper insight into

the conditions against which millions had to contend at a time when

the railroad oligarchy was blown into life by Government edict, a few

important facts will be presented here.

The sonorous doctrines of the Declaration of Independence read well,

but they were not meant to be applied to the worker. The independence

so much vaunted was the independence of the capitalist to do as he

pleased. Few, if any, restrictions were placed upon him; such pseudo

restrictions as were passed from time to time were not enforced. On

the other hand, the severest laws were enacted against the worker.

For a long time it was a crime for him to go on a strike. In the

first strike in this country of which there is any record--that of a

number of sailors in New York City in 1803, for better wages--the

leader was arrested, indicted and sent to prison. The formidable

machinery of Government was employed by the ruling commercial and

landed classes for a double purpose. On the one hand, they insisted

that it should encourage capital, which phrase translated into action

meant that it should confer grants of land, immense loans of public

funds without interest, virtual immunity from taxation, an extra-

legal taxing power, sweeping privileges, protective laws and clearly

defined statute rights.

THE SUPREMACY OF EMPLOYERS.

At the same time, while enriching themselves in every direction by

transferring, through the powers of Government, public resources to

themselves, the capitalists declared it to be a settled principle

that Government should not be paternalistic; they asserted that it

was not only not a proper governmental function to look out for the

interests of the masses of workers, but they went even further.

With the precedents of the English laws as an example, they held that

it devolved upon Government to keep the workers sternly within the

bounds established by employers. In plain words, this meant that the

capitalist was to be allowed to run his business as he desired. He

could overwork his employees, pay them the lowest wages, and kill

them off by forcing them to work under conditions in which the

sacrifice of human life was held subordinate to the gathering of

profits, or by forcing them to work or live in disease-breeding

places. [Footnote: The slum population of the United States increased

rapidly. "According to the best estimates," stated the "Seventh

Special Report of the U. S. Commissioner of Labor--The Slums of Great

Cities, 1894," "the total slum population of Baltimore is about

25,000; of Chicago, 162,000; of New York, 360,000; of Philadelphia,

35,000" (p. 12). The figures of the average weekly wages per

individual of the slum population revealed why there was so large a

slum population. In Baltimore these wages were $8.65-1/2 per week; in

Chicago, $9.88-1/2; in New York, $8.36, and in Philadelphia, $8.68

per week (p. 64).

In his "Modern Social Conditions," Bailey, basing his statements upon

the U. S. Census of 1900, asserted that 109,750 persons had died from

tuberculosis in the United States in 1900. "Plenty of fresh air and

sunlight," he wrote, "will kill the germs, and yet it is estimated

that there are eight millions of people who will eventually die from

consumption unless strenuous efforts are made to combat the disease.

Working in a confined atmosphere, and living in damp, poorly

ventilated rooms, the dwellers in the tenements of the great cities

fall easy victims to the great white plague." (p. 265).]

The law, which was the distinct expression of the interests of the

capitalist, upheld his right to do all this. Yet if the workers

protested; if they sought to improve their condition by joining in

that community of action called a strike, the same code of laws

adjudged them criminals. At once, the whole power of law, with its

police, military and judges, descended upon them, and either drove

them back to their tasks or consigned them to prison.

The conditions under which the capitalists made their profits, and

under which the workers had to toil, were very oppressive to the

workers. The hours of work at that period were from sunrise to

sunset. Usually this rule, especially in the seasons of long days,

required twelve, and very often fourteen and sixteen, hours a day.

Yet the so-called statesmen and the pretentious cultured and refined

classes of the day, saw nothing wrong in this exploitation. The

reason was obvious. Their power, their elegant mansions, their silks

and satins, their equipage and superior opportunities for enjoyment

all were based upon the sweat and blood of these so-called free white

men, women and children of the North, who toiled even harder than the

chattel black slave of the South, and who did not receive a fraction

of the care and thought bestowed, as a corrollary of property, upon

the black slave. Already the capitalists of the North had a slavery

system in force far more effective than the chattel system of the

South--a system the economic superiority of which was destined to

overthrow that of black slavery.

Most historians, taking their cue from the intellectual subserviency

demanded of them by the ruling propertied classes, delight in

picturing those times as "the good old times," when the capitalists

were benevolent and amiable, and the workers lived in peace and

plenty.

AN INCESSANT WARFARE.

History in the main, thus far, has been an institution for the

propagation of lies. The truth is that for thousands of years back,

since the private property system came into existence, an incessant,

uncompromising warfare has been going on between oppressors and

oppressed. Apart from the class distinctions and the bitterness

manifested in settlement and colonial times in this country--

reference to which has been given in earlier chapters--the whole of

the nineteenth century, and thus far of this century, has been a

continuous industrial struggle. It has been the real warfare of

modern times.

In this struggle the propertied classes had the great advantage from

the start. Centuries of rulership had taught them that the control of

Government was the crux of the mastery. By possession of Government

they had the power of making laws; of the enforcement or non-

enforcement of those laws; of the directorship of police, army, navy,

courts, jails and prisons--all terrible instruments for suppressing

any attempt at protest, peaceful or otherwise. Notwithstanding this

massing of power and force, the working class has at no time been

passive or acquiescent. It has allowed itself to be duped; it has

permitted its ranks to be divided by false issues; it has often been

blind at critical times, and has made no concerted effort as yet to

get intelligent possession of the great strategic point,--

governmental power. Nevertheless, despite these mistakes, it has been

in a state of constant rebellion; and the fact that it has been so,

that its aspirations could not be squelched by jails, prisons and

cannon nor by destitution or starvation, furnishes the sublimest

record in all the annals of mankind.

THE WORKERS' STRUGGLE FOR BETTER CONDITIONS.

Again and again the workers attempted to throw off some of their

shackles, and every time the whole dominant force of society was

arrayed against them. By 1825 an agitation developed for a ten-hour

workday. The politicians denounced the movement; the cultured classes

frowned upon it; the newspapers alternately ridiculed and abused it;

the officials prepared to take summary action to put it down. As for

the capitalists--the shipping merchants, the boot and shoe

manufacturers, the iron masters and others--they not only denied the

right of the workers to organize, while insisting that they

themselves were entitled to combine, but they inveighed against the

ten-hour demand as "unreasonable conditions which the folly and

caprice of a few journeymen mechanics may dictate." "A very large sum

of money," says McNeill, "was subscribed by the merchants to defeat

the ten-hour movement." [Footnote: "The Labor Movement": 339.] And as

an evidence of the intense opposition to the workers' demands for a

change from a fourteen to a ten-hour day, McNeill quotes from a

Boston newspaper of 1832:

Had this unlawful combination had for its object the enhancement of

daily wages, it would have been left to its own care; but it now

strikes the very nerve of industry and good morals by dictating the

hours of labor, abrogating the good old rule of our fathers and

pointing out the most direct course to poverty; for to be idle

several of the most useful hours of the morning and evening will

surely lead to intemperance and ruin.

These, generally speaking, were the stock capitalists arguments of

the day, together with the further reiterated assertion that it was

impossible to conduct business on a ten-hour day system. The effect

of the fourteen-hour day upon the workers was pernicious. Having no

time for reading, self-education, social intercourse or acquainting

themselves with refinement, they often developed brutal propensities.

In proportion to the length of time and the rigor with which they

were exploited, they degenerated morally and intellectually. This was

a well-known fact, and was frequently commented upon by

contemporaneous observers. Their employers could not fail to know it,

yet, with few exceptions, they insisted that any movement to shorten

the day's labor was destructive of good morals.

This pronouncement, however, need not arouse comment. Ever has the

propertied class set itself up as the lofty guardian of morals

although actuated by sordid self-interest and nothing more. Many

workers were driven to drink, crime and suicide by the exasperating

and deteriorating conditions under which they had to labor. The

moment that they overstepped the slightest bounds of law, in rushed

the authorities with summary punishment. The prisons of the period

were full of mechanics whom serfdom or poverty had stung on to commit

some crime or other. However trifling the offence, or whatever the

justifiable provocation, the law made no trades-union memorialized

Congress to limit the hours of labor of those employed on the public

works to ten hours a day. The pathos of this petition! So unceasingly

had the workers been lied to by politicians, newspapers, clergy and

employers, that they did not realize that in applying to Congress or to

any legislature, that they were begging from men who represented

the antagonistic interests of their own employers. After a short debate

Congress laid the petition on the table. Congress at this very time was

spinning out laws in behalf of capitalist interests; granting public

lands, public funds, protective tariffs and manifold other measures

demanded or lobbied for by existing or projected corporations.

A memorial of a "Portion of the Laboring Classes of the City of New

York in Relation to The Money Market" complained to Congress in 1833

that the powers of the Government were used against the working

class.

"You are not ignorant," they petitioned,

That our State Legislatures have, by a usurpation of power which is

expressly withheld by our Federal Constitution, chartered many

companies to engage in the manufacture of paper money; and that the

necessities of the laboring classes have compelled them to give it

currency.

The strongest argument against this measure is, that by licensing any

man or set of men to manufacture money, instead of earning it, we

virtually license them to take so much of the property of the

community as they may happen to fancy, without contributing to it at

all--an injustice so enormous that it is incapable of any defense and

therefore needs no comment.

... That the profits of capital are abstracted from the earnings of

labor, and that these deductions, like any other tax on industry,

tend to diminish the value of money by increasing the price of all

the fruits of labor, are facts beyond dispute; it is equally

undeniable that there is a point which capitalists cannot exceed

without injuring themselves, for when by their exertions they so far

depreciate the value of money at home that it is sent abroad, many

are thrown out of employ, and are not only disabled from paying their

tribute, _but are forced to betake to dishonest courses or

starve_.

This memorial was full of iron and stern truths, although much of its

political economy was that of its own era; a very different petition,

it will be noticed, from the appealing, cringing petitions sent

timidly to Congress by the conservative, truckling labor leaders of

later times. The memorial continued;

The remaining laborers are then loaded with additional burdens to

provide laws and prisons and standing armies to keep order; expensive

wars are created merely to lull for a time the clamors for

employment; each new burden aggravates the disease, and national

death finally ends it.

The power of capital, was, the memorial read on, "in the nature of

things, regulated by the proportion that the numbers of, and

competition among, capitalists bears to the number and destitution of

laborers." The only sure way of benefiting labor, "and the way best

calculated to benefit all classes," was to diminish the destitution

among the working classes. And the remedy proposed in the memorial? A

settled principle of national policy should be laid down by Congress

that the whole of the remaining of the public lands should forever

continue to be the public property of the nation "and accordingly,

cause them to be laid out from time to time, as the wants of the

population might require, in small farms with a suitable proportion

of building lots for mechanics, for the free use of any native

citizen and his descendants who might be at the expense of clearing

them." This policy "would establish a perpetual counterpoise to the

absorbing power of capital." The memorial concluded:

These lands have been bought with public money every cent of which is

in the end derived from the earnings of the laboring classes.

And while the public money has been liberally employed to protect and

foster trade, Government has never, to our knowledge, adopted but one

measure (the protective tariff system) with a distinct view to

promote the interests of labor; and all of the advantages of this one

have been absorbed by the preponderating power of capital. [Footnote:

Executive Documents, First Session, Twenty-third Congress, 1834, Doc.

No. 104.]

EMPLOYMENT OF MILITIA AGAINST THE WORKERS.

But it was not only the National Government which used the entire

governing power against the workers. State and municipal authorities

did likewise. In 1836 the longshoremen in New York City struck for an

increase of wages. Their employers hurriedly substituted non-union

men in their places. When the union men went from dock to dock,

trying to induce the newcomers to side with them, the shipping

merchants pretended that a riot was under way and made frantic calls

upon the authorities for a subduing force. The mayor ordered out the

militia with loaded guns. In Philadelphia similar scenes took place.

Naturally, as the strikers were prevented by the soldiers from

persuading their fellow workers, they lost the strikes.

Although labor-saving machinery was constantly being devised and

improved to displace hand labor, and although the skilled worker was

consequently producing far more goods than in former years, the

masters--as the capitalists were then often termed--insisted that

employees must work for the same wages and hours as had long

prevailed.

By 1840, however, the labor unions had arrived at a point where they

were very powerful in some of the crafts, and employers grudgingly

had to recognize that the time had passed by when the laborer was to

be treated like a serf. A few enlightened employers voluntarily

conceded the ten-hour day, not on any humane grounds, but because

they reasoned that it would promote greater efficiency on the part of

their workers. Many capitalists, perforce, had to yield to the

demand. Other capitalists determined to break up the unions on the

ground that they were a conspiracy. At the instigation of several

boot and shoe manufacturers, the officials of Boston brought a suit

against the Boston Journeymen Bootmakers' Society. The court ruled

against the bootmakers and the jury brought in a verdict of guilty.

On appeal to the Supreme Court, Robert Rantoul, the attorney for the

society, so ably demolished the prosecution's points, that the court

could not avoid setting aside the judgment of the inferior court.

[Footnote: Commonwealth vs. Hunt and others; Metcalf's Supreme Court

Reports, iv: III. The prosecution had fallen back on the old English

law of the time of Queen Elizabeth, making it a criminal offence for

workingmen to refuse to work under certain wages. This law, Rantoul

argued, had not been specifically adopted as common law in the United

States after the Revolution.]

Perhaps the growing power of the labor unions had its effect upon

those noble minds, the judiciary. The worker was no longer detached

from his fellow workmen: he could no longer be scornfully shoved

aside as a weak, helpless individual. He now had the strength of

association and organization. The possibility of such strength

transferred to politics affrighted the ruling classes. Where before

this, the politicians had contemptuously treated the worker's

petitions, certain that he could always be led blindly to vote the

usual partisan tickets, it now dawned upon them that it would be

wiser to make an appearance of deference and to give some concessions

which, although of a slight character, could be made to appear

important. The Workingmen's party of 1829 had shown a glimmer of what

the worker could do when aroused to class-conscious action.

CAJOLING THE LABOR VOTE.

Now it was that the politicians began the familiar policy of

"catering to the labor vote." Some rainbow promises of what they

would do, together with a few scraps of legislation now and then--

this constituted the bait held out by the politicians. That adroit

master of political chicanery, President Van Buren, hastened to issue

an executive order on April 10, 1840, directing the establishment of

a ten-hour day, between April and September, in the navy yards. From

the last day of October, however, until March 31, the "working hours

will be from the rising to the setting of the sun"--a length of time

equivalent, meal time deducted, to about ten hours.

The political trick of throwing out crumbs to the workers long proved

successful. But it was supplemented by other methods. To draw the

labor leaders away from a hostile stand to the established political

parties, and to prevent the massing of workers in a party of their

own, the politicians began an insidious system of bribing these

leaders to turn traitors. This was done by either appointing them to

some minor political office or by giving them money. In many

instances, the labor unions in the ensuing decades were grossly

betrayed.

Finally, the politicians always had large sums of election funds

contributed by merchants, bankers, landowners, railroad owners--by

all parts of the capitalist class. These funds were employed in

corrupting the electorate and legislative bodies. Caucuses and

primaries were packed, votes bought, ballot boxes stuffed and

election returns falsified. It did not matter to the corporations

generally which of the old political parties was in power; some

manufacturers or merchants might be swayed to one side or the other

for the self-interest involved in the reenactment of the protective

tariff or the establishment of free trade; but, as a rule, the

corporations, as a matter of business, contributed money to both

parties.

THE BASIS OF POLITICAL PARTIES.

However these parties might differ on various issues, they both stood

for the perpetuation of the existing social and industrial system

based upon capitalist ownership. The tendency of the Republican

party, founded in 1856, toward the abolition of negro chattel slavery

was in precise harmony with the aims and fundamental interests of the

manufacturing capitalists of the North. The only peril that the

capitalist class feared was the creation of a distinct, disciplined

and determined workingmen's party. This they knew would, if

successful, seriously endanger and tend to sweep away the injustices

and oppressions upon which they, the capitalists, subsisted. To avert

this, every ruse and expedient was resorted to: derision,

undermining, corruption, violence, imprisonment--all of these and

other methods were employed by that sordid ruling class claiming for

itself so pretentious and all-embracing a degree of refinement,

morality and patriotism.

Surveying historical events in a large way, however, it is by no

means to be regretted that capitalism had its own unbridled way, and

that its growth was not checked. Its development to the unbearable

maximum had to come in order to prepare the ripe way for a newer

stage in civilization. The capitalist was an outgrowth of conditions

as they existed both before, and during, his time. He fitted as

appropriate a part in his time as the predatory baron in feudal days.

But in this sketch we are not dealing with historical causes or

sequences as much as with events and contrasts. The aim is to give a

sufficient historical perspective of times when Government was

manipulated by the capitalist class for its own aggrandizement, and

to despoil and degrade the millions of producers.

The imminence of working-class action was an ever present and

disturbing menace to the capitalists. To give one of many instances

of how the workers were beginning to realize the necessity of this

action, and how the capitalists met it, let us instance the

resolutions of the New England Workingmen's Association, adopted in

1845. With the manifold illustrations in mind of how the powers of

Government had been used and were being increasingly used to

expropriate the land, the resources and the labor and produce of the

many, and bond that generation and future generations under a

multitude of law-created rights and privileges, this association

declared in its preamble:

Whereas, we, the mechanics and workingmen of New England are

convinced by the sad experience of years that under the present

arrangement of society labor is and must be the slave of wealth; and,

whereas, the producers of all wealth are deprived not merely of its

enjoyment, but also of the social and civil rights which belong to

humanity and the race; and, whereas, we are convinced that reform of

those abuses must depend upon ourselves only; and, whereas, we

believe that in intelligence alone is strength, we hereby declare our

object to be union for power, power to bless humanity, and to further

this object resolve ourselves into an association.

One of the leading spirits in this movement was Charles A. Dana, a

young professional man of great promise and exceptional attainments.

Subsequently he was bought off with a political office; he became not

only a renegade of the most virulent type, but he leagued himself

with the greatest thieves of the day--Tweed and Jay Gould, for

example--received large bribes for defending them and their interests

in a newspaper of which he became the owner--the New York _Sun_

--and spent his last years bitterly and cynically attacking,

ridiculing and misrepresenting the labor movement, and made himself

the most conspicuous editorial advocate for every thieving plutocrat

or capitalist measure.

The year 1884 about marked the zenith of the era of the capitalist

seizing of the public domain. By that time the railroad and other

corporations had possessed themselves of a large part of the area now

vested in their ownership. At that very time an army of workers,

estimated at 2,000,000, was out of employment. Yet it was not

considered a panic year; certainly the industrial establishments of

the country were not in the throes of a commercial cataclysm such as

happened in 1873 and previous periods. The cities were overcrowded

with the destitute and homeless; along every country road and

railroad track could be seen men, singly or in pairs, tramping from

place to place looking for work.

Many of those unemployed were native Americans. A large number were

aliens who had been induced to migrate by the alluring statements of

the steamship companies to whose profit it was to carry large

batches; by the solicitations of the agents of American corporations

seeking among the oppressed peoples of the Old World a generous

supply of cheap, unorganized labor; or by the spontaneous prospect of

bettering their condition politically or economically.

Millions of poor Europeans were thus persuaded to come over, only to

find that the promises held out to them were hollow. They found that

they were exploited in the United States even worse industrially than

in their native country. As for political freedom their sanguine

hopes were soon shattered. They had votes after a certain period of

residence, it was true, but they saw--or at least the intelligent of

them soon discerned--that the personnel and laws of the United States

Government were determined by the great capitalists. The people were

allowed to go through the form of voting; the moneyed interests, by

controlling the machinery of the dominant political parties, dictated

who the candidates, and what the so-called principles, of those

parties should be. The same program was witnessed at every election.

The electorate was stimulated with excitement and enthusiasm over

false issues and dominated candidates. The more the power and wealth

of the capitalist class increased, the more openly the Government

became ultra-capitalistic.

WEALTH AND THE SWAY OF DIRECT POWER

It was about this time that the Senate of the United States was

undergoing a transformation clearly showing how impatient the great

capitalists were of operating Government through middlemen

legislators. Previously, the manufacturing, railroad and banking

interests had, on the whole, deemed it wise not to exercise this

power directly but indirectly. The representatives sent to Congress

were largely lawyers elected by their influence and money. The people

at large did not know the secret processes back of these legislators.

The press, advocating, as a whole, the interests of the capitalist

class, constantly portrayed the legislators as great and patriotic

statesmen.

But the magnates saw that the time had arrived when some empty

democratic forms of Government could be waved aside, and the power

exercised openly and directly by them. Presently we find such men as

Leland Stanford, of the Pacific railroad quartet, and one of the

arch-bribers and thieves of the time, entering the United States

Senate after debauching the California legislature; George Hearst, a

mining magnate, and others of that class.

More and more this assumption of direct power increased, until now it

is reckoned that there are at least eighty millionaires in Congress.

Many of them have been multimillionaires controlling, or representing

corporations having a controlling share in vast industries,

transportation and banking systems--men such as Senator Elkins, of

West Virginia; Clark, of Montana; Platt and Depew, of New York;

Guggenheim, of Colorado; Knox, of Pennsylvania; Foraker, of Ohio, and

a quota of others. The popular jest as to the United States Senate

being a "millionaires' club" has become antiquated; much more

appropriately it could be termed a "multimillionaires' club." While

in both houses of Congress are legislators who represent the almost

extinguished middle class, their votes are as ineffective as their

declamations are flat. The Government of the United States, viewing

it as an entirety, and not considering the impotent exceptions, is

now more avowedly a capitalist Government than ever before. As for

the various legislatures, the magnates, coveting no seats in those

bodies, are content to follow the old plan of mastering them by

either direct bribery or by controlling the political bosses in

charge of the political machines.

Since the interests of the capitalists from the start were acutely

antagonistic to those of the workers and of the people in general

from whom their profits came, no cause for astonishment can be found

in the refusal of Government to look out, even in trifling ways, for

the workers' welfare. But it is of the greatest and most instructive

interest to give a succession of contrasts. And here some complex

factors intervene. Those cold, unimpassioned academicians who can

perpetuate fallacies and lies in the most polished and dispassionate

language, will object to the statement that the whole of governing

institutions has been in the hands of thieves--great, not petty,

thieves. And yet the facts, as we have seen (and will still further

see), bear out this assertion. Government was run and ruled at basis

by the great thieves, as it is conspicuously to-day.

THE PASSING OF THE MIDDLE CLASS.

Yet let us not go so fast. It is necessary to remember that the last

few decades have constituted a period of startling transitions.

The middle class, comprising the small business and factory men,

stubbornly insisted on adhering to worn-out methods of doing

business. Its only conception of industry was that of the methods of

the year 1825. It refused to see that the centralization of industry

was inevitable, and that it meant progress. It lamented the decay of

its own power, and tried by every means at its command to thwart the

purposes of the trusts. This middle class had bribed and cheated and

had exploited the worker. For decades it had shaped public opinion to

support the dictum that "competition was the life of trade." It had,

by this shaping of opinion, enrolled on its side a large number of

workers who saw only the temporary evils, and not the ultimate good,

involved in the scientific organization and centralization of

industry. The middle class put through anti-trust laws and other

measure after measure aimed at the great combinations.

These great combinations had, therefore, a double fight on their

hands. On the one hand they had to resist the trades unions, and on

the other, the middle class. It was necessary to their interests that

centralization of industry should continue. In fact, it was

historically and economically necessary. Consequently they had to

bend every effort to make nugatory any effort of Government, both

National and State, to enforce the anti-trust laws. The thing had to

be done no matter how. It was intolerable that industrial development

could be stopped by a middle class which, for self-interest, would

have kept matters at a standstill. Self-interest likewise demanded

that the nascent combinations and trusts get and exercise

governmental power by any means they could use. For a while

triumphant in passing certain laws which, it was fatuously expected,

would wipe the trusts out of existence, the middle class was

hopelessly beaten and routed. By their far greater command of

resources and money, the great magnates were able to frustrate the

execution of those laws, and gradually to install themselves or their

tools in practically supreme power. The middle class is now becoming

a mere memory. Even the frantic efforts of President Roosevelt in its

behalf were of absolutely no avail; the trusts are mightier than ever

before, and hold a sway the disputing of which is ineffective.

THE TRUSTS AND THE UNEMPLOYED.

With this newer organization and centralization of industry the

number of unemployed tremendously increased. In the panic of 1893 it

reached about 3,000,000; in that of 1908 perhaps 6,000,000, certainly

5,000,000. To the appalling suffering on every hand the Government

remained indifferent. The reasons were two-fold: Government was

administered by the capitalist class whose interest it was not to

allow any measure to be passed which might strengthen the workers, or

decrease the volume of surplus labor; the second was that Government

was basically the apotheosis of the current commercial idea that the

claims of property were superior to those of human life.

It can be said without exaggeration that high functionary after high

functionary in the legislative or executive branches of the

Government, and magnate after magnate had committed not only one

violation, but constant violations, of the criminal law. They were

unmolested; having the power to prevent it they assuredly would not

suffer themselves to undergo even the farce of prosecution. Such few

prosecutions as were started with suspicious bluster by the

Government against the Standard Oil Company, the Sugar Trust, the

Tobacco Trust and other trusts proved to be absolutely harmless, and

have had no result except to strengthen the position of the trusts.

The great magnates reaped their wealth by an innumerable succession

of frauds and thefts. But the moment that wealth or the basis of that

wealth were threatened in the remotest by any law or movement, the

whole body of Government, executive, legislative and judicial,

promptly stepped in to protect it intact.

The workers, however, from whom the wealth was robbed, were regarded

in law as criminals the moment they became impoverished. If homeless

and without visible means of support, they were subject to arrest as

vagabonds. Numbers of them were constantly sent to prison or, in some

States, to the chain-gang. If they ventured to hold mass meetings to

urge the Government to start a series of public works to relieve the

unemployed, their meetings were broken up and the assembled brutally

clubbed, as happened in Tompkins square in New York City in the panic

of 1873, in Washington in 1892, and in Chicago and in Union square,

New York City, in the panic of 1908. The newspapers represented these

meetings as those of irresponsible agitators, inciting the "mob" to

violence. The clubbing of the unemployed and the judicial murder of

their spokesman, has long been a favorite repression method of the

authorities. But as for allowing them freedom of speech, considering

the grievances, putting forth every effort to relieve their

condition,--these do not seem to have come within the scope of that

Government whose every move has been one of intense hostility--now

open, again covert--to the working class.

This running sketch, which is to be supplemented by the most specific

details, gives a sufficient insight into the debasement and

despoiling of the working class while the capitalists were using the

Government as an expropriating machine. Meanwhile, how was the great

farming class faring? What were the consequences to this large body

of the seizure by a few of the greater part of the public domain?

THE STATE OF THE FARMING POPULATION.

The conditions of the farming population, along with that of the

working class, steadily grew worse. In the hope of improving their

condition large numbers migrated from the Eastern States, and a

constant influx of agriculturists poured in from Europe.

A comparatively few of the whole were able to get land direct from

the Government. Naturally the course of this extensive migration

followed the path of transportation, that is to say, of the

railroads. This was exactly what the railroad corporations had

anticipated. As a rule the migrating farmers found the railroads or

cattlemen already in possession of many of the best lands. To give a

specific idea of how vast and widespread were the railroad holdings

in the various States, this tabulation covering the years up to 1883

will suffice: In the States of Florida, Louisiana, Alabama and

Mississippi about 9,000,000 acres in all; in Wisconsin, 3,553,865

acres; Missouri, 2,605,251 acres; Arkansas, 2,613,631 acres;

Illinois, 2,595,053 acres; Iowa, 4,181,929 acres; Michigan, 3,355,943

acres; Minnesota, 9,830,450 acres; Nebraska, 6,409,376 acres;

Colorado, 3,000,000 acres; the State of Washington, 11,700,000 acres;

New Mexico, 11,500,000 acres; in the Dakotas, 8,000,000 acres;

Oregon, 5,800,000 acres; Montana, 17,000,000 acres; California,

16,387,000; Idaho, 1,500,000, and Utah, 1,850,000. [Footnote: "The

Public Domain," House Ex. Doc. No. 47, Third Session, Forty-sixth

Congress: 273.]

Prospective farmers had to pay the railroads exorbitant prices for

land. Very often they had not sufficient funds; a mortgage or two

would be signed; and if the farmer had a bad season or two, and could

no longer pay the interest, foreclosure would result. But whether

crops were good or bad, the American farmer constantly had to compete

in the grain markets of the world with the cheap labor of India and

Russia. And inexorably, East or West, North or South, he was caught

between a double fire.

On the one hand, in order to compete with the immense capitalist

farms gradually developing, he had to give up primitive implements

and buy the most improved agricultural machines. For these he was

charged five and six times the sum it cost the manufacturers to make

and market them. Usually if he could not pay for them outright, the

manufacturers took out a mortgage on his farm. Large numbers of these

mortgages were foreclosed.

In addition, the time had passed when the farmer made his own clothes

and many other articles. For everything that he bought he had to pay

excessive prices. He, even more than the industrial working classes,

had to pay an enormous manufacturer's profit, and additionally the

high freight railroad rate.

On the other hand, the great capitalist agencies directly dealing

with the crops--the packing houses, the gambling cotton and produce

exchanges--actually owned, by a series of manipulations, a large

proportion of his crops before they were out of the ground. These

crops were sold to the working class at exorbitant prices. The small

farmer labored incessantly, only to find himself getting poorer. It

served political purpose well to describe glowingly the farmer's

prosperity; but the greater crops he raised, the greater the profit

to the railroad companies and to various other divisions of the

capitalist class. His was the labor and worry; they gathered in the

financial harvest.

METHODS OF THE GREAT LANDOWNERS.

While thus the produce of the farmer's labor was virtually

confiscated by the different capitalist combinations, the farmers of

many States, particularly of the rich agricultural States of the

West, were unable to stand up against the encroachments, power, and

the fraudulent methods of the great capitalist landowners.

The land frauds in the State of California will serve as an example.

Acting under the authority of various measures passed by Congress--

measures which have been described--land grabbers succeeded in

obtaining possession of an immense area in that State. Perjury,

fraudulent surveys and entries, collusion with Government officials--

these were a few of the many methods.

Jose Limantour, by an alleged grant from a Mexican Governor, and

collusion with officials, almost succeeded in stealing more than half

a million acres. Henry Miller, who came to the United States as an

immigrant in 1850, is to-day owner of 14,539,000 acres of the richest

land in California and Oregon. It embraces more than 22,500 square

miles, a territory three times as large as New Jersey. The stupendous

land frauds in all of the Western and Pacific States by which

capitalists obtained "an empire of land, timber and mines" are amply

described in numerous documents of the period. These land thieves, as

was developed in official investigations, had their tools and

associates in the Land Commissioner's office, in the Government

executive departments, and in both houses of Congress. The land

grabbers did their part in driving the small farmer from the soil.

Bailey Millard, who extensively investigated the land frauds in

California, after giving full details, says:

When you have learned these things it is not difficult to understand

how one hundred men in the great Sacramento Valley have come to own

over 17,000,000 acres, while in the San Joaquin Valley it is no

uncommon thing for one man's name to stand for 100,000 acres. This

grabbing of large tracts has discouraged immigration to California

more than any other single factor. A family living on a small holding

in a vast plain, with hardly a house in sight, will in time become a

very lonely family indeed, and will in a few years be glad to sell

out to the land king whose domain is adjacent. Thousands of small

farms have in this way been acquired by the large holders at nominal

prices. [Footnote: "The West Coast Land Grabbers." Everybody's

Magazine, May, 1905.]

SEIZURE OF IMMENSE AREAS BY FRAUD.

Official reports of the period, contemporaneous with the original

seizure of these immense tracts of land, give far more specific

details of the methods by which that land was obtained. Of the

numerous reports of committees of the California Legislature, we will

here simply quote one--that of the Swamp Land Investigating Committee

of the California Assembly of 1873. Dealing with the fraudulent

methods by which huge areas of the finest lands in California were

obtained for practically nothing as "swamp" land, this committee

reported, citing from what it termed a "mighty mass of evidence,"

"That through the connivance of parties, surveyors were appointed who

segregated lands as 'swamp,' which were not so in fact. The

corruption existing in the land department of the General Government

has aided this system of fraud."

Also, the committee commented with deep irony, "the loose laws of the

State, governing all classes of State lands, has enabled wealthy

parties to obtain much of it under circumstances which, in some

countries, where laws are more rigid and terms less refined, would be

termed fraudulent, but we can only designate it as keen foresight and

wise (for the land grabbers) construction of loose, unwholesome

laws." [Footnote: Report of the Swamp Land Investigating Committee,

Appendix to California Journals of Senate and Assembly. Twentieth

Session, 1874, Vol. iv, Doc. No. 5:3. ]

After recording its findings that it was satisfied from the evidence

that "the grossest frauds have been committed in swamp matters in

this State, "the committee went on:

Formerly it was the custom to permit filings upon real or alleged

swamp lands, and to allow the applications to lie unacted upon for an

indefinite number of years, at the option of the applicants. In these

cases, parties on the "inside" of the Land Office "ring" had but to

wait until some one should come along who wanted to take up these

lands in good faith, and they would "sell out" to them their "rights"

to land on which they had never paid a cent, nor intended to pay a

cent.

Or, if the nature of the land was doubtful, they would postpone all

investigation until the height of the floods during the rainy season,

when surveyors, in interest with themselves, would be sent out to

make favorable reports as to the "swampy" character of the land. In

the mountain valleys and on the other side of the Sierras, the lands

are overflowed from melting snow exactly when the water is most

wanted; but the simple presence of the water is all that is necessary

to show to the speculators that the land is "swamp," and it therefore

presents an inviting opportunity for this grasping cupidity.

[Footnote: Report of the Swamp Land Investigating Committee, etc.,

5.]

In his exhaustive report for 1885, Commissioner Sparks, of the

General Land Office, described at great length the vast frauds that

had continuously been going on in the granting of alleged "swamp"

lands, and in fraudulent surveys, in many States and Territories.

[Footnote: House Documents, First Session, Forty-ninth Congress,

1885-86, Vol. ii.] "I thus found this office," he wrote, "a mere

instrumentality in the hands of 'surveying rings.'" [Footnote: Ibid.,

166] "Sixteen townships examined in Colorado in 1885 were found to

have been surveyed on paper only, no actual surveying having been

done. [Footnote: Ibid., 165 ] In twenty-two other townships examined

in Colorado, purporting to have been surveyed under a "special-

deposit" contract awarded in 1881, the surveys were found wholly

fraudulent in seven, while the other fifteen were full of fraud."

[Footnote: House Documents, etc., 1885-86, ii: 165]

These are a very few of the numerous instances cited by Commissioner

Sparks. Although the law restricted surveys to agricultural lands and

for homestead entries, yet the Land Office had long corruptly allowed

what it was pleased to term certain "liberal regulations." Surveys

were so construed as to include any portion of townships the "larger

portion" of which was not "known" to be of a mineral character. These

"regulations," which were nothing more or less than an extra-legal

license to land-grabbers, also granted surveys for desert lands and

timber lands under the timber-land act. By the terms of this act, it

will be recalled, those who entered and took title to desert and

timber lands were not required to be actual settlers. Thus, it was

only necessary for the surveyors in the hire of the great land

grabbers to report fine grazing, agricultural, timber or mineral land

as "desert land," and vast areas could be seized by single

individuals or corporations with facility.

Two specific laws directly contributed to the effectiveness of this

spoliation. One act, passed by Congress on May 30, 1862, authorized

surveys to be made at the expense of settlers in the townships that

those settlers desired surveyed. Another act, called the Deposit Act,

passed in 1871, provided that the amounts deposited by settlers

should be partly applied in payment for the lands thus surveyed.

Together, these two laws made the grasping of land on an extensive

scale a simple process. The "settler" (which so often meant, in

reality, the capitalist) could secure the collusion of the Land

Office, and have fraudulent surveys made. Under these surveys he

could lay claim to immense tracts of the most valuable land and have

them reported as "swamp" or "desert" lands; he could have the

boundaries of original claims vastly enlarged; and the fact that part

of his disbursements for surveying was considered as a payment for

those lands, stood in law as virtually a confirmation of his claim.

ACTUAL SETTLERS EXCLUDED FROM PUBLIC DOMAIN.

"Wealthy speculators and powerful syndicates," reported Commissioner

Sparks,

covet the public domain, and a survey is the first step in the

accomplishment of this desire. The bulk of deposit surveys have been

made in timber districts and grazing regions, and the surveyed lands

have immediately been entered under the timber land, preŽmption,

commuted homestead, timber-culture and desert-land acts. So

thoroughly organized has been the entire system of procuring the

survey and making illegal entry of lands, that agents and attorneys

engaged in this business have been advised of every official

proceeding, and enabled to present entry applications for the lands

at the very moment of the filing of the plots of survey in the local

land offices.

Prospectors employed by lumber firms and corporations seek out and

report the most valuable timber tracts in California, Oregon,

Washington Territory or elsewhere; settler's applications are

manufactured as a basis for survey; contracts are entered into and

pushed through the General Land Office in hot haste; a skeleton

survey is made... entry papers, made perfect in form by competent

attorneys, are filed in bulk, and the manipulators enter into

possession of the land. . . . This has been the course of proceeding

heretofore. [Footnote: House Documents, etc., 1885-86, ii: 167.]

Commissioner Sparks described a case where it was discovered by his

special agents in California that an English firm had obtained

100,000 acres of the choicest red-wood lands in that State. These

lands were then estimated to be worth $100 an acre. The cost of

procuring surveys and fraudulent entries did not probably exceed $3

an acre. [Footnote: House Ex. Docs., etc., 1885-86, ii: 167.]

"In the same manner," Commissioner Sparks continued, "extensive coal

deposits in our Western territory are acquired in mass through

expedited surveys, followed by fraudulent pre-emption and commuted

homestead entries." [Footnote: Ibid.] He went on to tell that nearly

the whole of the Territory (now State) of Wyoming, and large portions

of Montana, had been surveyed under the deposit system, and the lands

on the streams fraudulently taken up under the desert land act, to

the exclusion of actual settlers. Nearly all of Colorado, the very

best cattle-raising portions of New Mexico, the rich timber lands of

California, the splendid forest lands of Washington Territory and the

principal part of the extensive pine lands of Minnesota had been

fraudulently seized in the same way. [Footnote: Ibid., 168.] In all

of the Western States and Territories these fraudulent surveys had

accomplished the seizure of the best and most valuable lands. "To

enable the pressing tide of Western immigration to secure homes upon

the public domain," Commissioner Sparks urged, "it is necessary...

that hundreds of millions of acres of public lands now appropriated

should be wrested from illegal control." [Footnote: Ibid.] But

nothing was done to recover these stolen lands. At the very time

Commissioner Sparks--one of the very few incorruptible Commissioners

of Public Lands,--was writing this, the land-grabbing interests were

making the greatest exertions to get him removed. During his tenure

of office they caused him to be malevolently harassed and assailed.

After he left office they resumed complete domination of the Land

Commissioner's Bureau. [Footnote: The methods of capitalists in

causing the removal of officials who obstructed or exposed their

crimes and violent seizure of property were continuous and long

enduring. It was a very old practice. When Astor was debauching and

swindling Indian tribes, he succeeded, it seems, by exerting his

power at Washington, in causing Government agents standing in his way

to be dismissed from office. The following is an extract from a

communication, in 1821, of the U. S. Indian agent at Green Bay,

Wisconsin, to the U. S. Superintendent of Indian Trade:

"The Indians are frequently kept in a state of intoxication, giving

their furs, etc., at a great sacrifice for whiskey.... The agents of

Mr. Astor hold out the idea that they will, ere long be able to break

down the factories [Government agencies]; and they menace the Indian

agents and others who may interfere with them, with dismission from

office through Mr. Astor. They say that a representation from Messrs.

Crooks and Stewart (Mr. Astor's agents) led to the dismission of the

Indian agent at Mackinac, and they also say that the Indian agent

here is to be dismissed...."--U.S. Senate Documents, First Session,

Seventeenth Congress, 1821-22, Vol. i, Doc. No. 60:52-53.]

THE GIGANTIC PRIVATE LAND CLAIM FRAUDS.

The frauds in the settlement of private land claims on alleged grants

by Spain and Mexico were colossal. Vast estates in California, New

Mexico, Arizona, Colorado and other States were obtained by collusion

with the Government administrative officials and Congress. These were

secured upon the strength of either forged documents purporting to be

grants from the Spanish or Mexican authorities, or by means of

fraudulent surveys.

One of the most notorious of these was the Beaubin and Miranda grant,

otherwise famous thirty years ago as the Maxwell land grant. A

reference to it here is indispensable. It was by reason of this

transaction, as well as by other similar transactions, that one of

the American multimillionaires obtained his original millions. This

individual was Stephen B. Elkins, at present a powerful member of the

United States Senate, and one of the ruling oligarchy of wealth. He

is said to possess a fortune of at least $50,000,000, and his

daughter, it is reported, is to marry the Duke of the Abruzzi, a

scion of the royal family of Italy.

The New Mexico claim of Beaubin and Miranda transferred to L. B.

Maxwell, was allowed by the Government in 1869, but for ninety-six

thousand acres only. The owner refused to comply with the law, and in

1874 the Department of the Interior ordered the grant to be treated

as public lands and thrown open to settlement. Despite this order,

the Government officials in New Mexico, acting in collusion with

other interested parties, illegally continued to assess it as private

property. In 1877 a fraudulent tax sale was held, and the grant,

fraudulently enlarged to 1,714,764.94 acres, was purchased by M. M.

Mills, a member of the New Mexico Legislature. He transferred the

title to T. B. Catron, the United States Attorney for New Mexico.

Presently Elkins turned up as the principal owner. The details of how

this claim was repeatedly shown up to be fraudulent by Land

Commissioners and Congressional Committees; how the settlers in New

Mexico fought it and sought to have it declared void, and the law

enforced; [Footnote: "Land Titles in New Mexico and Colorado," House

Reports First Session, Fifty-second Congress, 1891-92, Vol. iv,

Report No. 1253. Also, House Reports, First Session, Fifty-second

Congress, 1891-92, Vol. vii, Report No. 1824. Also, House Reports,

First Session, Forty-ninth Congress, 1885-86, ii: 170.] and how

Elkins, for some years himself a Delegate in Congress from New

Mexico, succeeded in having the grant finally validated on technical

grounds, and "judicially cleared" of all taint of fraud, by an

astounding decision of the Supreme Court of the United States--a

decision contrary to the facts as specifically shown by successive

Government officials--all of these details are set forth fully in

another part of this work. [Footnote: See "The Elkins Fortune," in

Vol. iii.]

The forgeries and fraudulent surveys by which these huge estates were

secured were astoundingly bold and frequent. Large numbers of private

land claims, rejected by various Land Commissioners as fraudulent,

were corruptly confirmed by Congress. In 1870, the heirs of one

Gervacio Nolan applied for confirmation of two grants alleged to have

been made to an ancestor under the colonization laws of New Mexico.

They claimed more than 1,500,000 acres, but Congress conditionally

confirmed their claim to the extent of forty-eight thousand acres

only, asserting that the Mexican laws had limited to this area the

area of public lands that could be granted to one individual. In 1880

the Land Office re-opened the claim, and a new survey was made by

surveyors in collusion with the claimants, and hired by them. When

the report of this survey reached Washington, the Land Office

officials were interested to note that the estate had grown from

forty-eight thousand acres to five hundred and seventy-five thousand

acres, or twelve times the legal quantity. [Footnote: House Reports,

First Session, Forty-ninth Congress, 1885-86, ii: 171.] The actual

settlers were then evicted. The romancer might say that the officials

were amazed; they were not; such fraudulent enlargements were common.

The New Mexico estate of Francis Martinez, granted under the Mexican

laws restricting a single grant to forty-eight thousand acres, was by

a fraudulent survey, extended to 594,515.55 acres, and patented in

1881. [Footnote: Ibid., 172.] A New Mexico grant said to have been

made to Salvador Gonzales, in 1742, comprising "a spot of land to

enable him to plant a cornfield for the support of his family." was

fraudulently surveyed and enlarged to 103,959.31 acres--a survey

amended later by reducing the area to 23,661 acres. [Footnote: House

Reports, etc, 1885-86, ii: 172.] The B. M. Montaya grant in New

Mexico, limited to forty-eight thousand acres, under the Mexican

colonization laws, was fraudulently surveyed for 151,056.97 acres.

The Estancia grant in New Mexico also restricted under the

colonization act to forty-eight thousand acres, was enlarged by a

fraudulent survey to 415,036.56 acres. [Footnote: Ibid., 173.] In

1768, Ignacio Chaves and others in New Mexico petitioned for a tract

of about two and one-fourth superficial leagues, or approximately a

little less than ten thousand acres. A fraudulent survey magnified

this claim to 243,036.43 acres. [Footnote: Ibid.]

These are a very few of the large number of forged or otherwise

fraudulent claims.

Some were rejected by Congress; many, despite Land Office protests,

were confirmed. By these fraudulent and corrupt operations, enormous

estates were obtained in New Mexico, Colorado and in other sections.

The Pablo Montaya grant comprised in all, 655,468.07 acres; the Mora

grant 827,621.01 acres; the Tierra Amarilla grant 594,515 acres, and

the Sangre de Cristo grant 998,780.46 acres. All of these were

corruptly obtained. [Footnote: See Resolution of House Committee on

Private Land Claims, June, 1892, demanding a thorough investigation.

The House took no action.--Report No. 1824, 1892.] Scores of other

claims were confirmed for lesser areas. During Commissioner Sparks'

tenure of office, claims to 8,500,000 acres in New Mexico alone were

pending before Congress. A comprehensive account of the operations of

the land-grabbers, giving the explicit facts, as told in Government

and court records, of their system of fraud, is presented in the

chapter on the Elkins fortune.

FORGERY, PERJURY AND FRAUDULENT SURVEY.

Reporting, in 1881, to the Commissioner of the General Land Office,

Henry M. Atkinson, U. S. Surveyor-General of New Mexico, wrote that

"the investigation of this office for the past five years has

demonstrated that some of the alleged grants are forgeries." He set

forth that unless the court before which these claims were

adjudicated could have full access to the archives, "it is much more

liable to be imposed upon by fraudulent title papers." [Footnote:

"The Public Domain," etc. 1124. Also see next Footnote.] In fact, the

many official reports describe with what cleverness the claimants to

these great areas forged their papers, and the facility with which

they bought up witnesses to perjure for them. Finding it impossible

to go back of the aggregate and corroborative "evidence" thus

offered, the courts were frequently forced to decide in favor of the

claimants. To use a modern colloquial phrase, the cases were "framed

up." In the case of Luis Jamarillo's claim to eighteen thousand acres

in New Mexico, U. S. Surveyor-General Julian of New Mexico, in

recommending the rejection of the claim and calling attention to the

perjury committed, said:

When these facts are considered, in connection with the further and

well-known fact that such witnesses can readily be found by grant

claimants, and that in this way the most monstrous frauds have been

practiced in extending the lines of such grants in New Mexico, it is

not possible to accept the statement of this witness as to the west

boundary of this grant, which he locates at such a distance from the

east line as to include more than four times the amount of land

actually granted. [Footnote: Senate Executive Documents, First

Session, Fiftieth Congress, 1887-88, Vol. i, Private Land Claim No.

103, Ex. Doc. No. 20:3. Documents Nos. 3 to 11, 13 to 23, 25 to 29

and 38 in the same volume deal with similar claims.]

"The widespread belief of the people of this country," wrote

Commissioner Sparks in 1885, "that the land department has been

largely conducted to the advantage of speculation and monopoly,

private and corporate, rather than in the public interest, I have

found supported by developments in every branch of the service.... I

am satisfied that thousands of claims without foundation in law or

equity, involving millions of acres of public land, have been

annually passed to patent upon the single proposition that nobody but

the Government had any _adverse_ interest. The vast machinery of

the land department has been devoted to the chief result of conveying

the title of the United States to public lands upon fraudulent

entries under loose construction of law." [Footnote: House Ex. Docs.,

1885-86, ii: 156.] Whenever a capitalist's interest was involved, the

law was always "loosely construed," but the strictest interpretation

was invariably given to laws passed against the working population.

It was estimated, in 1892, that 57,000,000 acres of land in New

Mexico and Colorado had, for more than thirty years, been unlawfully

treated by public officers as having been ceded to the United States

by Mexico. The Maxwell, Sangre de Cristo, Nolan and other grants were

within this area. The House Committee on Private Land Claims reported

on April 29, 1892: "A long list of alleged Mexican and Spanish grants

within the limits of the Texas cession have been confirmed, or quit

claimed by Congress, under the false representation that said alleged

grants were located in the territory of New Mexico ceded by the

treaty; an enormous area of land has long been and is now held as

confirmed Mexican and Spanish grants, located in the territory of

Mexico ceded by the treaty when such is not the fact." [Footnote:

House Report, 1892, No. 1253:8.]

In Texas the fraudulent, and often, violent methods of the seizure of

land by the capitalists were fully as marked as those used elsewhere.

Upon its admittance to the Union, Texas retained the disposition of

its public lands. Up to about the year 1864, almost the entire area

of Texas, comprising 274,356 square miles, or 175,587,840 acres, was

one vast unfenced feeding ground for cattle, horses and sheep. In

about the year 1874, the agricultural movement began; large numbers

of intending farmers migrated to Texas, particularly with the

expectation of raising cattle, then a highly profitable business.

They found huge stretches of the land already preempted by individual

capitalists or corporations. In a number of instances, some of these

individuals, according to the report of a Congressional Committee, in

1884, dealing with Texas lands, had each acquired the ownership of

more than two hundred and fifty thousand acres.

"It is a notorious fact," this committee reported, "that the public

land laws, although framed with the special object of encouraging the

public domain, of developing its resources and protecting actual

settlers, have been extensively evaded and violated. Individuals and

corporations have, by purchasing the proved-up claims, or purchases

of ostensible settlers, employed by them to make entry, extensively

secured the ownership of large bodies of land." [Footnote: House

Reports, Second Session, Forty-eighth Congress, 1884-85, Vol. xxix,

Ex. Doc. No. 267:43.] The committee went on to describe how, to a

very considerable extent, "foreigners of large means" had obtained

these great areas, and had gone into the cattle business, and how the

titles to these lands were se-cured not only by individuals but by

foreign corporations. "Certain of these foreigners are titled

noblemen. Some of them have brought over from Europe, in considerable

numbers, herdsmen and other employees who sustain to them a dependent

relationship characteristic of the peasantry on the large landed

estates of Europe." Two British syndicates, for instance, held

7,500,000 acres in Texas. [Footnote: House Reports, etc., 1884-85,

Doc. No. 267:46.]

This spoliation of the public domain was one of the chief grievances

of the National Greenback-Labor party in 1880. This party, to a great

extent, was composed of the Western farming element. In his letter

accepting the nomination of that party for President of the United

States, Gen. Weaver, himself a member of long standing in Congress

from Iowa, wrote:

An area of our public domain larger than the territory occupied by

the great German Empire has been wantonly donated to wealthy

corporations; while a bill introduced by Hon. Hendrick B. Wright, of

Pennsylvania, to enable our poor people to reach and occupy the few

acres remaining, has been scouted, ridiculed, and defeated in

Congress. In consequence of this stupendous system of land-grabbing,

millions of the young men of America, and millions more of

industrious people from abroad, seeking homes in the New World, are

left homeless and destitute. The public domain must be sacredly

reserved to actual settlers, and where corporations have not complied

strictly with the terms of their grants, the lands should be at once

reclaimed.

INCREASE OF FARM TENANTRY.

Without dwelling upon all the causative factors--involving an

extended work in themselves--some significant general results will be

pointed out.

The original area of public domain amounted to 1,815,504,147 acres,

of which considerably more than half, embracing some of the very best

agricultural, grazing, mineral and timber lands, was already

alienated by the year 1880. By 1896 the alienation reached

806,532,362 acres. Of the original area, about 50,000,000 acres of

forests have been withdrawn from the public domain by the Government,

and converted into forest reservations. Large portions of such of the

agricultural, grazing, mineral and timber lands as were not seized by

various corporations and favored individuals before 1880, have been

expropriated west of the Mississippi since then, and the process is

still going, notably in Alaska. The nominal records of the General

Land Office as to the number of homesteaders are of little value and

are very misleading. Immense numbers of alleged homesteaders were, as

we have copiously seen, nothing but paid dummies by whose entries

vast tracts of land were seized under color of law. It is

indisputably clear that hundreds of millions of acres of the public

domain have been obtained by outright fraud.

Notwithstanding the fact that only a few years before, the Government

had held far more than enough land to have provided every

agriculturist with a farm, yet by 1880, a large farm tenant class had

already developed. Not less than 1,024,061 of the 4,008,907 farms in

the United States were held by renters. One-fourth of all the farms

in the United States were cultivated by men who did not own them.

Furthermore, and even more impressive, there were 3,323,876 farm

laborers composed of men who did not even rent land. Equally

significant was the increasing tendency to the operating of large

farms by capitalists with the hired labor. Of farms under

cultivation, extending from one hundred to five hundred acres, there

were nearly a million and a half--1,416,618, to give the exact

number--owned largely by capitalists and cultivated by laborers.

[Footnote: Tenth Census, Statistics of Agriculture: 28.]

Phillips, who had superior opportunities for getting at the real

facts, and whose volume upon the subject issued at the time is well

worthy of consideration, thus commented upon the census returns:

It will thus be seen that of the 7,670,493 persons in our country

engaged in agriculture, there are 1,024,601 who pay rent to persons

not cultivating the soil; 1,508,828 capitalist or speculating owners,

who own the soil and employ laborers; 804,522 of well-to-do farmers

who hire part of their work or employ laborers, and 670,944 who may

be said to actually cultivate the soil they own: the rest are hired

workers.

Phillips goes on to remark:

Another fact must be borne in mind, that a large number of the

2,984,306 farmers who own land are in debt for it to the money

lenders. From the writer's observation it is probable that forty per

cent, of them are so deeply in debt as to pay a rent in interest.

This squeezing process is going on at the rate of eight and ten per

cent., and in most cases can terminate in but one way. [Footnote:

"Labor, Land and Law": 353. It is difficult to get reliable

statistics on the number of mortgages on farms, and on the number of

farm tenants. The U.S. Industrial Commission estimated, in 1902, that

fifty per cent, of the homesteads in Eastern Minnesota were

mortgaged. Although admitting that such a condition had been general,

it represented in its Final Report that a large number of mortgages

in certain States had been paid off. According to the "Political

Science Quarterly" (Vol. xi, No. 4, 1896) the United States Census of

1890 showed a marked increase, not only absolutely, but relatively in

the number of farm tenants. It can hardly be doubted that farm

tenantry is rapidly increasing and will under the influence of

various causes increase still more.]

A LARGELY DISPOSSESSED NATION.

These are the statistics of a Government which, it is known, seeks to

make its showing as favorable as possible to the existing regime.

They make it clear that a rapid process of the dispossession of the

industrial working, the middle and the small farming classes has been

going on unceasingly. If the process was so marked in 1900 what must

it be now? All of the factors operating to impoverish the farming

population of the United States and turn them into homeless tenants

have been a thousandfold intensified and augmented in the last ten

years, beginning with the remarkable formation of hundreds of trusts

in 1898. Even though the farmer may get higher prices for his

products, as he did in 1908 and 1909, the benefits are deceptively

transient, while the expropriating process is persistent.

There was a time when farm land in Ohio, Illinois, Minnesota,

Indiana, Wisconsin, and many other States was considered of high

value. But in the last few years an extraordinary sight has been

witnessed. Hundreds of thousands of American farmers migrated to the

virgin fields of Northwest Canada and settled there--a portentous

movement significant of the straits to which the American farmer has

been driven.

Abandoned farms in the East are numerous; in New York State alone

22,000 are registered. Hitherto the farmer has considered himself a

sort of capitalist: if not hostile to the industrial working classes,

he has been generally apathetic. But now he is being forced to the

point of being an absolute dependant himself, and will inevitably

align his interests with those of his brothers in the factories and

in the shops.

With this contrast of the forces at work which gave empires of public

domain to the few, while dispossessing the tens of millions, we will

now proceed to a consideration of some of the fortunes based upon

railroads.

Great Fortunes from Railroads · 第 2 / 10 章