CHAPTER XXIII

FREEDOM OF THE CITY

Towns, like men, stamp themselves with marked traits. Toledo had an

individuality which showed itself from the start. Its leading men

clubbed together and borrowed money as early as 1832 to build one of

the first railroads constructed west of the Alleghanies--the Erie and

Kalamazoo, to connect Toledo and Adrian. When, in 1845, the steamboats

on the lakes formed a combination, and discriminated against Toledo,

the city through its council refused to submit, and appropriated

$10,000 to get an independent boat to Buffalo. The city appropriated

its credit and revenues to other important and costly enterprises,

including four railroads, to keep it clear of the cruel mercies of

private ownership of the highways. In 1889 it expended $200,000 to

secure direct railway connections with the Pennsylvania and the

Baltimore and Ohio railways for competition in rates with the Lake

Shore Railroad.

As it had been authorized to do so by the State, the City Council of

Toledo, April 29, 1889, ordered gas bonds to the amount of $75,000

sold, that work on the city pipe line might begin. Before proceeding

with the enterprise confided to them, the natural-gas trustees gave

the private companies an opportunity to save themselves from the

competition of the city. They asked them in writing if they would agree

to furnish gas cheaply for a term of years, or if they would sell

their entire plant to the city? They did this, as they expressed it,

as "an honorable effort ... to obtain cheaper gas without unnecessary

expenditure, and without injury to established rights." After a

delay of nearly a month a reply was received, refusing to enter into

negotiations either for a reduction of charges or for the sale of the

private plants to the city. The trustees then asked for a personal

interview, but this was refused. Then when the city began preparations

to sell its bonds, a cannonade was opened on it in the courts, the

money-market, the gas-fields, the city government, the press, among

the citizens, and everywhere. Injunctions were applied for in three

courts, unsuccessfully in all instances. No injunction was ever granted

in these or any other of the many suits brought for the purpose of

enjoining the sale of the bonds. Courts will usually grant temporary

injunctions awaiting a hearing on the merits when complainants will

enter into ample bonds and indemnify defendants. But the parties

instigating this litigation would not put up the necessary bonds. They

thus could smirch the bonds without incurring any personal liability in

so doing.

An expensive array of lawyers was sent before the United States

courts to prevent the issue of the bonds on the ground that they were

illegal, and the law under which they were issued unconstitutional.

The principle involved had been frequently discussed and always upheld

both by the Supreme Court of Ohio and the Supreme Court of the United

States.[517]

"Does not your argument appear to be in conflict with the views of the

Supreme Court of Ohio and the Supreme Court of the United States?" the

judge asked. The counsel for the gas companies responded in substance:

"If so, then so much the worse for the views of those courts."

As it was through the suffrage that the people of Toledo were able to

do this, the attack was widened from an attack on the enterprise to one

upon the sovereignty of the citizens which made it possible. "Everybody

votes in Ohio--in fact, too many people," said the lawyer who applied

for an injunction against Toledo. If he had his way, he declared, there

would be fewer voters, and he stigmatized the arguments of Toledo as

those of John Most, the communist.

"Unquestionably," decided Judge Jackson, "the Legislature may

authorize a city to furnish light, or facilities for transportation, or

water to its citizens, with or without cost, as the Legislature or city

may determine.... Since the decision in Sharpless _vs._ Philadelphia

it is no longer an open question whether municipalities may engage in

enterprises such as the one contemplated by the act in question in this

case. The act of January 22, 1889, authorizing the city of Toledo to

issue bonds for natural-gas purposes, is clearly within the general

scope of legislative power, is for a public use and purpose, and is

not in contravention of any of the provisions of the constitution. The

court being of the opinion that the legislation is valid, it follows,

of course, that the injunction applied for must be refused."[518] When

the news of Judge Jackson's decision was telegraphed to Toledo nothing

less than the booming of cannon could express the joy of the citizens.

They sent this message to the just judge: "One hundred guns were fired

to-night by the citizens of Toledo in honor of your righteous decision

to-day." Judge Jackson again upheld the bonds at Toledo, January 14,

1890, when he again dismissed the case against the city "for want of

equity, at cost of complainants."

The favorable decision by Judge Jackson, although an appeal was taken,

made it possible for the city to sell the $75,000 bonds which had been

issued by order of the Council. The bonds brought par, interest, and

over $2000 premium. With the money thus procured the city's Board of

Natural Gas Trustees began operations. Their opponents had spread far

and loud among the voters before the election--among those who would

be likely to buy the bonds, everywhere it would hurt--the assertion

that all the territory that was good had been bought up by them, and

the city's trustees would not be able to get any. One of the companies

had no less than 140,000 acres of gas lands in its possession or under

contract, at a cost in rentals and royalties of $100,000 a year.[519]

But the city trustees, even with the small sum at their command, were

able to secure at the very beginning wells with a capacity more than

four times as great as the private companies had had when the latter

began the investment of a million or more to lay their pipe lines to

Toledo.[520] Together with this supply the city trustees got 650 acres

about 35 miles from Toledo of as choice gas territory as there was in

Ohio, almost all of it undrilled, and they had offers amounting to 5000

acres more within piping distance from the city. The city's trustees

made their purchases with success, and received the laudations of their

constituents for having got lands and wells at better prices than the

private companies.

August 26, 1889, after a decision in the United States courts that

there was no ground on which to object to the issue of the bonds, the

City Council voted the issue of the remaining $675,000.

Defeated in the public debate which preceded the decision of Toledo

to supply itself; defeated at the State Capitol; defeated at the

polls of Toledo time and again--every time; defeated in the Common

Council; defeated in the gas-fields; defeated in the courts of their

own choosing, the opponents of the city, thorough as only the very good

or the very bad can be, refused to submit. When the two corporations,

in 1886, were seeking the franchise indispensable for doing business

in Toledo, they said to the Board of Aldermen: "We ask no exclusive

privilege.... We cannot have too many gas companies." They also said:

"If the city desires to furnish its own gas, there is nothing in this

ordinance to hinder it. We are ready and willing at any time to enter

into competition with the city or any other company." They said, on

the same occasion, in answer to apprehensions which had been expressed

about the danger of putting the fuel supply of the city into the hands

of a monopoly: "You can go before the Legislature and obtain the right

to issue bonds for furnishing yourselves with gas." It was by these

assurances the companies induced the Common Council to grant them

gratuitously the very valuable franchises they were seeking.

The right of the people to compete was not left to these assurances.

It was specifically and formally asserted in the ordinance of July 5,

1887, fixing rates. This was the ordinance to procure which the gas

company suspended its operations in mid-course, and declared it would

not continue unless the prices which it wanted were made. The ordinance

was, in fact, prepared by the company. It said: "Provided that nothing

herein contained shall be construed as granting to existing companies

any exclusive rights or privileges, or prevent any other company from

furnishing natural gas to the citizens of said city." But the same

learned counsel who, in behalf of the companies, had assured the city

that "there was nothing in this ordinance to hinder it," went before

the United States Court and pleaded that ordinance as good reason for

the intervention of the Federal Government to prevent the city from

going on with its enterprise.

The only morning paper--an able advocate of the city pipe

line--suddenly changed owners and opinions. Among its new directors

were two of the lawyers of the trust opposing the city, a director

in one of its companies, and, besides them, the manager, a contract

editor from Pennsylvania. His sole conspicuity there had been won in

turning against the people of the oil regions a paper which had been

their stanchest defender. This Toledo daily, in its espousal of the

cause of the city, had been firing hot shot like this against the oil

combination: "It wants a monopoly of the natural-gas business. This

is what it is driving at." Under its new management it roared like a

sucking dove, thus: "It is fashionable with demagogues and men who are

not capable of appreciating the worth of brains in business to howl

against it"--the oil combination--"as a grasping, grinding monopoly."

Just after the people had decided in favor of the pipe line, and only

a few days before it changed owners, it had said: "All manner of

influences were brought to bear to defeat this proposition.... All the

plausible falsehoods that could be invented, and all the money that

could be used, were industriously employed, but the people saw the

situation in its true light, and the majority voted right." It now made

the defeat of the city's pipe line the chief aim of its endeavors. In

this work "no rule or principle recognized in decent journalism was

respected."

In all the history of Toledo no interest on its bonds had ever been

defaulted or delayed; no principal ever unpaid at maturity. The city

was prosperous, its growth steady; its debt growing less year by year

in proportion to its population and wealth. Its bonds ranked among the

choicest investments, and commanded a premium in the money-market.[521]

But the credit and fair fame of the city were now over-whelmed with

wholesale vituperation by this paper, and others elsewhere under

similar control. Articles were carefully prepared for this purpose by

skilled writers. These were then copied from one newspaper to another.

By some arrangement insertion was obtained for them in financial

journals in New York and in London, and in other foreign capitals.

The Toledo organ declared that Toledo was an unsafe place for the

investment of capital in any form. Its public affairs were said to be

run by a set of "demagogues and speculators," whose administration was

"piratical mob rule." The city pipe line was a "monstrous job," and the

men who favored it were "a gang of throttlers and ravenous wolves."

They were "blatant demagogues, who made great pretence of advancing

the city's interest, but whose real aim is to enrich themselves at

public expense." The bonds, which had been issued in due form by

special authority of the Legislature, ratified by a vote of more than

three-fifths of the citizens, and declared to be valid by the United

States Court, were described as "chromos," "worthless rags," "bad

medicine," "disfigured securities," "like rotten eggs, highly odorous

goods," "but few persons at most can be found ignorant enough to buy

them."

The Mayor, City Auditor, Board of Natural Gas Trustees, united with

a citizens' committee of the Board of Trade in a plan to promote the

sale of the bonds direct to the people of Toledo through a financial

institution of the highest standing. This action the paper described

as "a scheme for gulling simples," "a blind pool," "an unpatented

financial deadfall"; compared it with "gambling, pool-playing, and

lottery selling." These grave charges were widely circulated throughout

the country. Bankers and capitalists in other cities who received them

had no means of knowing that they were not what they pretended to

be--the honest if uncouth utterances of an independent press chastising

the follies of its own constituency. Newspapers which supported the

city's project were assailed as ruthlessly as the community and

citizens. The _Blade_ was constantly referred to as "The Bladder."

Another journal was given a nickname too vulgar to be printed here. One

of the most prominent journals of Ohio was punished by the following

paragraph, which is a fair sample of the literary style of monopoly:

"That aged, acidulous addle-pate, the monkey-eyed, monkey-browed

monogram of sarcasm, and spider-shanked, pigeon-witted public

scold, Majah Bilgewater Bickham, and his backbiting, black-mailing,

patent-medicine directory, the _Journal_."

An old journalist and honorable citizen who wrote over his initials,

"C.W.," a series of able and dignified letters in the _Blade_, which

had a great influence in the formation of public opinion in favor

of the pipe line, was assailed with "brutal falsifier," "hoary old

reprobate," "senile old liar." Caricatures were published depicting the

buyers of the bonds as "simple greens." When the County Court of Lucas

County, following the United States Court, sustained the bonds on their

merits, and did so on every point in question, because, as the judge

stated, "the equities of the case are with the defendants," the organ

falsely stated that judgment for the city was given "because the merits

of the case are involved in a higher court." When a capitalist of New

York, who had been an investor in the bonds of Toledo and a taxpayer

there for twenty-five years--one of the streets of the city was named

for him--bought $10,000 of the city pipe-line bonds, the paper attacked

him by name in an article headed "Bunco Game," charging him with being

a party to a bunco game in connection with "public till-tappers" for

"roping Toledo citizens into buying doubtful securities." When the

Sinking Fund Commissioners of Toledo very properly invested some of the

city's money in the gas bonds, they were held up by name as "public

till-tappers," "menials" of a "hungry horde" of "boodle politicians,"

accomplices of "plunderers of the public treasury," unable to withstand

"the brutal threats and snaky entreaties of the corrupt gas ring." For

one of the associate editors the position of Deputy State Inspector

of Oil was obtained--an appointment which cost the Governor who made

it many votes in the next election, and did much to defeat him. Such

an appointment might give a versatile employé the chance to do double

duty: as editor to brand as bad good men who could not be bought, and

as inspector to brand as good bad oil for sale.[522]

One of the means taken to defeat the pipe line was the publication of

very discouraging accounts of the "failure" at Indianapolis, where the

citizens had refused to give a natural-gas company belonging to the

oil trust the franchise it demanded, and, forming an anti-monopoly

trust, had undertaken to supply themselves. Some "influence" prevented

the Common Council of Toledo from sending a committee to Indianapolis

to investigate. A public-spirited citizen, prominent and successful

in business, came forward, and at his own expense secured a full and

accurate account of the experience of Indianapolis for the city.

This proved that the people were getting their fuel gas at less than

one-half what Toledo was paying. The contest against giving the

Indianapolis franchise to a corporation of the trust had been a sharp

one. Its success was due to the middle classes and the working-men,

who stood together for freedom, incorruptible by all the powerful

influences employed. "We will burn soft coal all our lives," one of

their leaders told the Toledo committee, "rather than put ourselves in

the power of such men."

In Indiana the Legislature meets only once in two years, and when this

issue arose had adjourned, and would not meet again for a year. The

people, not being able to get authority for a municipal gas pipe line,

went to work by voluntary co-operation. Every voting precinct in the

city was organized and canvassed for the capital needed. The shares

were $25 each, and they were bought up so rapidly that the entire

amount--$550,000--was subscribed in sixteen days by 4700 persons,

without a cent of cost to the city. When subscriptions to the amount of

$550,000 had been raised, $600,000 more was borrowed on certificates of

indebtedness.

Gas lands were bought and 200 miles of pipe lines laid, all at a cost

of about $1,200,000. The income in one year, during a part of which the

system was still under construction, was $349,347. In the first year of

complete operations the Indianapolis people's trust paid off $90,000

of the principal. The income for the year ending October 31, 1892,

was $483,258.21, and the bonded debt has been paid. The stock, since

January 1, 1893, has been paying dividends at the rate of 8 per cent. a

year.

A prominent citizen of Indianapolis, one of the State judges, told the

Toledo papers, in an interview: "The private companies had their gas

laid to the city and along the streets several months in advance of the

Citizens' Trust, but it did them little good. Everybody said: 'I will

wait for the Consumers' Trust.' 'Yes, but we will furnish you gas just

as cheap,' said the Indianapolis company; 'why not take it of us?' To

this the citizens replied: 'To take gas of you means cheap gas to-day,

but high gas to-morrow.' And wait for the gas they all did." The charge

to manufacturers was 2-1/2 cents a thousand feet, as against 8 cents,

at that time charged at Toledo. There were 12,000 private consumers.

Cooking-stoves in Indianapolis were about $12 a year, against $19.50

in Toledo. One of the representatives of the private company declared

at a public meeting at Indianapolis that its charges were made

such as to give a full return of all the invested capital in three

years, as that was the probable life of the supply. A year after the

inauguration of the Indianapolis movement a committee of the citizens

at Dayton, who had risen against the extortionate prices charged them,

investigated the condition of affairs at Indianapolis. They reported

that Indianapolis had paid $200,000 on its bonded debt, and was getting

ready to pay as much more. The Consumers' Trust supplied between 10,000

and 11,000 consumers, and spent $1,000,000 less than the Dayton private

company spent to supply 3000 fewer consumers. The annual charge at

Dayton was $54.80; at Indianapolis only $26.80--less than half.

When facts like these were brought out, to the demolition of the

fictions circulated in Toledo, the answer was characteristic. The

"organ" could not deny the statements, but it fell upon the citizen

through whose generosity the information had been got for the people,

and assailed his private character in articles which, one of the daily

papers declared, editorially, "would almost, if not quite, justify him

in shooting their author on sight."

This newspaper charged the city natural-gas trustees with being "rotten

to the core," and with every variation of phrase possible to its

exuberant rhetoric sounded the changes upon their official career as a

"big steal," "fostered by deception, falsehood, and skull-duggery." It

sought to intimidate the Legislature and the courts when they failed

to enact or construe laws against the people. It said: "Law-makers,

judges, and others may feel the force of this element when the proper

time comes and political preferment is sought."

It was money in pocket that facts like those of the experience of

Indianapolis, Detroit, and other places should not be made known. Even

ideas must not be allowed to reach the public mind. Professor Henry C.

Adams, the well-known political economist, lectured in Toledo during

this contest, in a University Extension Course, on "Public Commissions

Considered as the Conservative Solution of the Monopoly Problem." The

"organ" gave a synopsis of the lecturer's views, which is printed

herewith in parallel columns, with a synopsis of what Mr. Adams really

said, as revised by himself:

WHAT THE ORGAN OF MONOPOLY REPORTED. | WHAT THE LECTURER REALLY SAID.

|

The lecturer made reference to Toledo |Professor Adams thought the

as an unfavorable place to discuss |solution of the monopoly problem

the matter of municipal control of |must be found either in public

quasi-public business and competition |control or in public ownership.

of municipalities with private |He advocated public control, and

corporations. But he deprecated anything|held that the State and Federal

in that line. He did not mention |railroad commissions should have

particular instances, but broadly |a fair trial, that their hands

condemned the policy pursued by this |should be strengthened by further

city in matters of this kind, and his |and adequate legislation. He

remarks had a visible effect on his |entertained the hope that this

audience. He considered municipal |control and regulation would

control of business enterprises the |ultimately protect the interests

worst form of monopoly, as they began |of the public in a satisfactory

by having the unfair advantage |manner. He was willing to admit,

of the law-making power, and the |however, if this effort to secure

tendency to corruption was greater |the needed public control by the

than when individual enterprises were |aid of commissions and

asking privileges. The audience |legislation should fail, then

was much pleased with the lecturer. |public ownershipwas the only

|remaining solution. He held that

|in local monopoliesit may still

|be wise to try the experiment of

|public control by aid of

|commissions. He said, however,

|that if anything should be owned

|and controlled by and for the

|people it would be

|street-railroads, gas and

|waterworks. He admonished his

|audience not to be misled by the

|argument that municipal ownership

|would be dangerous because of

|undue political influence, for

|the local monopolies under

|private ownership were already in

|politics, and in a most dangerous

|manner. He observed facetiously

|that he hesitated to discuss the

|question before a of municipal

|control orownership Toledo

|audience.

From the control of the markets to the control of the minds of a

people--this is the line of march.

So direct, persistent, and bold were the charges of corruptions rung

day after day by this journal against all the officials concerned

in the city gas enterprise that some people began to believe there

must be truth in them. But when the community at last turned upon

its maligners, and the grand-jury brought indictments against the

active manager of the paper and his chief assistant for criminal

libel upon the city's natural-gas trustees, the whole structure of

their falsehood went down at a breath. They had no defence whatever.

They made no attempt to justify their libels or even explain them.

Their only defence was a series of motions to get the indicted editor

cleared as not being responsible for what had appeared in the paper.

Counsel labored over the contention that the accused was none of the

things which the language of the law holds for libel. He was neither

the "proprietor," "publisher," "editor," "printer," "author," nor a

person "who uttered, gave, sold, or lent" a copy of the newspaper,

but only the "manager." The employés gave testimony which would have

been ludicrous but for the contempt it showed for court and community.

The journalist who was the "managing editor" of the paper under the

indicted chief editor was asked:

"Who was the head of the paper when you entered upon your duties as

managing editor?"

"I do not know."

"Who hired you as managing editor?"

"I really can't say that I was hired at all."

"Who employed you to come to Toledo?" The witness had been an employé

in Pennsylvania of the editor on trial, and had followed the latter to

Toledo to take the place of managing editor. "Nobody employed me."

The son of the indicted editor had also followed his father to Toledo,

and was employed on his paper. Asked for what purpose he came, he said:

"I had no purpose in coming."

The gentleman who had charge of the counting-room was asked who fixed

his salary.

"I regulate my own."

The advertising manager declared:

"I have no knowledge who is my superior."

The accused had to let the case go to the jury without a spark of proof

of the accusations which had filled the paper every day for months.

He had no evidence to offer either that the charges were true, or

that he believed them to be true. He stood self-confessed as having

for years printed daily gross libels on citizens, officials, and

community, as part of the tactics of a few outside men to prevent a

free city from doing with its own means in its own affairs that which

an overwhelming public opinion, and the legislative, executive, and

judicial authorities, and its present antagonists themselves, had all

sustained its right to do. The agent of this wrong was found guilty,

and sentenced to imprisonment in the county jail, with heavy costs and

fine; like the unhappy agents at Buffalo--"made cheap" for others.[523]

But sentence was suspended pending hearing of the motion for a new

trial. This did not come up for a year. The court could find no error

in the proceedings of the trial court, and could not sustain any of the

objections made. But it found a point which even the lawyers had not

hit on, and strained this far enough to grant the new trial. Then the

convicted editor went before another judge--not the one who had tried

him--pleaded guilty, and was fined, and so saved from jail.

One of the last scenes in this Waterloo was the abandonment of the

newspaper with which the corruption and intimidation of public opinion

had been attempted. Failure was confessed by the sale of the paper, and

it was bought by a journalist who had been especially prominent in the

defence of the city, and against whom on that account a bitter warfare

had been waged by the daily which now passed into his possession. The

_Sunday Journal_ of Toledo, in commenting on the surrender, declared

that the course of the organ had been one of the strongest factors of

the success of the people. "In every possible way it slandered and

outraged the city, where of necessity it looked for support. There

could be but one result. Scores who had opposed the pipe line became

its most ardent advocates purely in the general defence."

Wealth against commonwealth · 第 23 / 36 章