CHAPTER XXXIII

THE SMOKELESS REBATE

With searching intelligence, indomitable will, and a conscience which

makes religion, patriotism, and the domestic virtues but subordinate

paragraphs in a ritual of money worship, the mercantile mind flies

its air-line to business supremacy. That entirely modern social

arrangement--the private ownership of public highways--has introduced a

new weapon into business warfare which means universal dominion to him

who will use it with an iron hand.

This weapon is the rebate, smokeless, noiseless, invisible, of

extraordinary range, and the deadliest gun known to commercial warfare.

It is not a lawful weapon. Like the explosive bullet, it is not

recognized by the laws of war. It has to be used secretly. All the

rates he got were a secret between himself and the railroads. "It has

never been otherwise," testified one of the oil combination.[731] The

Chevalier Bayard declared proudly, as he lay on his death-bed, that he

had never given quarter to any one so degraded and unknightly as to

use gunpowder. Every one would close in at once to destroy a market

combatant who avowed that he employed this wicked projectile.

The apparatus of the rebate is so simple that it looks less like a

destroying angel than any weapon of offence ever known. The whole

battery consists only of a pen and ink and some paper. The discharge is

but the making of an entry--but the signing of a check. But when the

man who commands this simple enginery directs it against a business

competitor you can follow the track of wreckage like the path of a

cyclone, by the ruins which lie bleaching in the air for years. The

gentlemen who employ it give no evidence of being otherwise engaged

than in their ordinary pursuits. They go about sedate and smiling, with

seemingly friendly hands empty of all tools of death. But all about

them as they will, as if it were only by wish of theirs which attendant

spirits hastened to execute, rivals are blown out of the highways, busy

mills and refineries turn to dust, hearts break, and strong men go mad

or commit suicide or surrender their persons and their property to the

skilful artillerists.

"And in the actual practice of daily life," says Ruskin, "you will find

that wherever there is secrecy, there is either guilt or danger." "When

did you discover the fact that these rebates had been paid?" one of the

victims was asked.

"We never discovered it as a fact until the testimony was taken in

1879.... We always suspected it; but we never knew of it of our

personal knowledge, and never would really have known it of our

personal knowledge.... I had no idea of the iniquity that was going

on."[732]

Nothing so demolishing was ever so delicate and intangible as this, for

its essence is but a union of the minds of a railroad official and some

business friend, perhaps a silent partner, bent on business empire. The

model merchant, fortunate in having a friend willing so to use a power

sovereigns would not dare to use, walks the public way, strong in his

secret, and smiles with triumph as all at whom he levels his invisible

wand sicken and disappear. "He has the receipt of fern-seed. He walks

invisible."

Men who hunt their fellow-men with this concealed weapon always deny

it, as they must. To use it has always been a sin, and has been made a

crime in every civilized State. Under United States law it is, since

1887, an offence punishable with imprisonment in the penitentiary.[733]

Moral ideals are not born in legislatures. When an act attains by a

law the distinction of being made a crime, it is already well on its

way to extinction. It is made infamous by law, because it has already

become infamous before the conscience and honor of men. It was not the

prohibition of highway privilege by the Constitution of Pennsylvania or

the laws of the United States which made the rebate an iniquity. This

legal volley is but a salute to the established conscience.

The question most often pressed before all the many legislative and

judicial inquests held upon the dead bodies which strew every field of

the oil industry has been whether the extraordinary powers which the

invention of the locomotive and the transformation of public highways

into private property had given railways over the livelihoods of the

people had been used to make it impossible for any but a preferred few

to live.

One of the successful men disposed of the evidence that these powers

had been so used by styling it before the committee of Congress of

1888 as the "worst balderdash," and before the New York Legislative

Committee of 1888 as "irresponsible newspaper statements," "a malignity

and mendacity that is little short of devilishness." The secretary of

the oil trust waved it away as "all this newspaper talk and flurry."

The president knows nothing about the existence of such privileges,

except that he has "heard much of it in the papers." And yet another of

the trust in the _North American Review_ of February, 1883, similarly

describes the accusation as "uncontradicted calumny," to which, he

regrets to say, "several respectable journals and magazines lent

themselves."

After taking 3700 pages of evidence and sitting for months, the

committee of 1879 of the New York Legislature said in their report:

"The history of this corporation is a unique illustration of the

possible outgrowth of the present system of railroad management in

giving preferential rates, and also showing the colossal proportions to

which monopoly can grow under the laws of this country.[734] ... The

parties whom they have driven to the wall have had ample capital and

equal ability in the prosecution of their business in all things save

their ability to acquire facilities for transportation."[735]

The committee of the Ohio Legislature which took the evidence of the

treatment of the Marietta independents by the railroads[736] is, so far

as the author knows, the only body of all the legislative and judicial

tribunals that have been investigating for the past thirty years which

has found the relations of the railroads and the oil combination to

be proper. It used the words "public," "uniform," "in accordance

with law," "equitable," "no special discriminations or privileges"

to describe the conduct of the common carriers in that case. But in

doing so it had to except from these exculpations the railroad which

originated the attack on the independent refiners, and the rates of

which controlled the others, as it was the initial road. It had also

to admit that the oil combination had received "better rates," but

defended them on the ground that its shipments were larger. These two

exceptions are doors wide enough to admit every possibility of the

rebate. The Secretary of State for Internal Affairs of Pennsylvania

made an investigation in 1878 on the complaint of citizens. He reported

to the Attorney-General that no case had been made out "beyond the

ordinary province of individual redress." He was hung in effigy by

the citizens, and the evidence he took remains, like that of the Ohio

Committee of 1879, a valuable repository of facts from which students

can draw their own conclusions.

More than any others the wrongs of the oil industry provoked the

investigations by Congress from 1872 to 1887, and caused the

establishment of the Interstate Commerce Commission, and more than

any others they have claimed the attention of the new law and the

new court. The cases brought before it cover the oil business on

practically every road of any importance in the United States--in

New England, the Middle States, the West, the South, the Pacific

coast; on the great East and West trunk roads--the Pennsylvania, the

Erie, the Baltimore and Ohio, the New York Central, and all their

allied lines; on the transcontinental lines--the Union Pacific,

the Central Pacific, the Southern Pacific; on the steamship and

railroad association controlling the South and Southwest. They show

that from ocean to ocean, and from the Gulf of St. Lawrence to the

Gulf of Mexico, wherever the American citizen seeks an opening in

this industry, he finds it, like the deer forests and grouse moors

of the old country, protected by game-keepers against him and the

common herd. The terms in which the commission have described the

preferences given the oil combination are not ambiguous: "Great

difference in rates," "unjust discrimination," "intentional disregard

of rights," "unexcused," "a vast discrepancy," "enormous," "illegal,"

"excessive,"[737] "extraordinary," "forbidden by the act to regulate

commerce,"[738] "so obvious and palpable a discrimination that no

discussion of it is necessary," "wholly indefensible," "patent and

provoking discriminations for which no rational excuse is suggested,"

"obnoxious," "disparity ... absurd and inexcusable," "gross

disproportions and inequalities,"[739] "long practised," "the most

unjust and injurious discrimination ... and this discrimination inured

mostly to the benefit of one powerful combination."[740]

This was what the Interstate Commerce Commission found all along the

record from 1887 to 1893. When one of those who got the benefits so

characterized was before the New York Legislature in 1888, he said:

"I know of no discrimination in the oil traffic of any kind since the

passage of the Interstate Commerce Act."

"Do you use any means for the purpose of avoiding the effect of that

new law?"

"None whatever."[741]

But the people have found that the explicit prohibitions of the

Interstate Commerce law were of no more protection to them than

the equally explicit prohibitions given long before by the State

constitutions and laws, the common law of the court, and by the still

older common law of right, which the statute was created to enforce.

The "unjust," "enormous," "illegal" differences in freights by which

the public was excluded were got from the railroads after, as before,

Congress, obedient to an aroused and universal demand, had passed a

special statute and created a special tribunal to prevent and punish

this special sort of crime. This is the adjudicated fact.

This "uncontradicted calumny," "worst balderdash," "malignity

and mendacity," "irresponsible newspaper statements" proves upon

examination to be:

1. Testimony of unimpeached and in many cases uncontradicted witnesses,

given under oath in legislative investigations and in court, subject to

examination and cross-examination and rebuttal.

2. Reports of State legislative committees.

3. Copies of the contracts.[742]

4. Decision of courts, State and national.[743]

The South Improvement plan of 1872 is still in unrelenting operation,

according to the latest news. A case is now pending before the

Interstate Commerce Commission,[744] in which charges of highway abuse

even more sensational than any of those we have seen judicially proved

are made against the thirty railroads by which the oil of Ohio,

Pennsylvania, and New York reaches the Pacific coast. A San Francisco

oil dealer is the petitioner for relief. He recites the discriminations

given the oil combination on the Pacific coast before the Interstate

Commerce law was enacted. These were admitted by the officials of

the roads before the United States Pacific Railway Commission of

1887. The traffic managers of the Southern Pacific testified that

the oil combination, "from the time it acquired the oil business on

this coast, had lower rates than the general tariff provided, or than

other shippers paid on coal oil."[745] The general freight agent of

the Central Pacific Railroad admitted that his road had the same

arrangement, and had accepted the business "at rates dictated" by the

oil combination.[746] The general traffic manager of the Union Pacific

Railroad said:

"We have paid them a good deal in rebates." It was a "pretty large"

preference.

"What was the effect on the small dealer?"

"I should think it would be embarrassing to the small shipper!"[747]

When the Interstate Commerce law went into force the oil combination

introduced a patented car for the transcontinental trade, which

it claimed the sole right to use. Though the new car was to the

disadvantage of the railroads, as it cost more to haul, the managers

gave it lower rates than any other car and carried it back free, while

they punished the shippers who gave them a lighter and better car by

charging them $105 for carrying that back.

The San Francisco complainant goes on to charge that a plan was

concocted and put in operation by which rates were lowered whenever the

combination wanted to fill its warehouses on the Pacific coast, and as

soon as they were full were put back again. This lowering and raising

of rates was "to the public sudden and unexpected."[748] It was known

in advance only to the ring and the railroads. Before other shippers

could take advantage of the low rates they would be raised again. The

complaint recites that in pursuance of this plan, after the combination

had transferred to the Pacific coast at the end of 1888 from its

Eastern refineries all it needed for the next season's business, the

railroads advanced the rates from 82-1/2 cents a hundred pounds to

$1.25. The next May the railroads made a similar seesaw, and, he says,

in December, 1892, "are still making ... such arbitrary and sudden

reductions ... to the undue advantage" of the oil combination "and to

the detriment and injury of all other shippers." The San Francisco

merchant also charges that in the interest of the Eastern refineries

of the combination rates are made to prevent the large product of the

oil-fields and independent refineries of Colorado and Wyoming from

reaching the Pacific coast, "which needs them to furnish fuel for its

manufactories, as well as for light for its residents." Similarly we

find the Chicago and Northwestern Railroad charging $105 for a car-load

of cattle from Wyoming to Chicago, while for a car of 75 barrels of

oil the freight would be $348. In connection with these charges the

press published the telegrams, filling columns, which were said to have

passed between the officials of the railroads and the oil combination

in the negotiation of this arrangement. In one of these telegrams the

freight agent of the Southern Pacific explains the new deal. "He" (the

agent of the oil combination) "would stock up at the low rate, then

notify the association of railroads when to advance." The advance or

decline was to be "made at certain seasons of the year in accordance

with this supply on hand." When the negotiation was finished and the

plan was agreed to, a San Francisco agent of the oil combination is

said to have telegraphed to its officers in New York: "I think we have

managed this freight business pretty well from this long distance,

especially when you think that we have secured the 90-cent rate with

which to stock up from time to time." His telegram also discloses

that the arrangement extended to lead and linseed-oil, showing, what

is well known, that the combinations in these articles belong to the

members of that in oil. These charges are, it is to be remembered,

still unadjudicated, this published evidence is not yet substantiated.

But the arrangement which is charged is in exact pursuance of that

part of the South Improvement Company contract which bound the

railroads to "lower or raise the gross rates of transportation ...

for such times and to such extent as may be necessary to overcome

... competition."[749] And Attorney-General Olney has been publicly

informed[750] that during the summer of 1894 oil rates between

Pennsylvania and Colorado were put down from 75 cents a hundred to 25

cents, and a few weeks later raised again to the old rate. Another

increase made the rates to Denver higher, for oil, than to the Pacific

coast. He has been asked to ascertain, judicially, if this shuffling

of rates was not made, like that complained of before the Interstate

Commerce Commission, to allow the oil trust "to stock up at the old

rate." His informants suggest that the same powers with which he has

brought railway employés to trial for infractions of the Interstate

Commerce law can be used against the railways.

This is not all of the story. This patented car spoken of was a mere

aggregation of old elements, as the courts held, and the patent was

void. Advised by their lawyer that this would be the view the courts

would have to take, competitors of the combination in the business of

the Pacific coast, where they had been at the head until these new

tricks of trade came in, introduced a car of their own of the same

class. They thus became entitled to the same low rates and the same

free return of the car as their powerful rival. This put them again

on an equality in transportation. They had not been using these new

cars long before two of them, shipped as usual from the East, failed

to arrive. Their search for the missing cars put them in possession of

the interesting information that a litigation, of which they had had

no notice or knowledge whatever, had for some time been in progress,

and was at that moment at the point of decision. As their interests

had been entirely unrepresented, this decision would certainly have

been against them, and would have forever made impossible the use of

their cars on any railroad of the United States. This had been done

by an apparently hostile litigation by the oil combination against

the Southern Pacific Railroad. The former sued in the United States

courts for an injunction to forbid the railroad from hauling the

cars of the competitor, on the ground that they were an infringement

on its own patented cars. No notice was given the persons most

interested--the owners of the cars in question--whose business life

was involved, and they were not at first made parties to the suit.

The dummy defendant--the railroad--made no valid opposition, but with

great condescension admitted that all the averments of its antagonist

were true. The case was sent through the courts on a gallop to get

a decision. After that the merchants whose cars were the object of

the attack, as they had not been parties to the case, could not have

it reopened, and it would stand against them without possibility of

reversal. The firm found that a temporary injunction had been applied

for and had been granted; that this had been followed by proceedings to

make the injunction perpetual; that subpoenas had been issued, served,

and returned, and an order had been obtained from the court for taking

testimony. In place of the regular examiner of the court, a special

examiner had been appointed; he had begun taking evidence the same

day, and taking it privately. The testimony so taken had been sealed

and filed. The railroad had made its answer December 2d, the testimony

already taken was filed in court December 3d, making the case complete

for decision by the judges. December 4th the firm heard for the first

time of what was being done, and December 5th applied for the right to

take part, which saved them. To get such cases ready for a hearing in

the United States Circuit Court, where this was done, usually requires

a year. But in this instance it was done in two weeks! Only just as

the door of the court was closing irrevocably, as far as their rights

were concerned, did the firm get inside, and secure leave to have

their side represented. The whole fabric of the litigation fell at the

first touch. The temporary injunction against the use of their car was

dissolved, the permanent injunction was refused, the patent of the oil

trust's car was declared worthless, and this decision was upheld by the

United States Circuit Court of Appeals in February, 1893.[751]

Meanwhile their oil, side-tracked in the Mojave Desert and elsewhere,

was being cooked to death, their customers were going elsewhere, and

they were being put to loss and damages which they are now suing to

have made good to them. "There are some equivocal circumstances in

the case," said Judge Hoffman, dissolving the injunctions in 1890. He

pointed out that the railroad made no objection to the injunction which

deprived it of business. This "tends to corroborate suspicions," he

said, suggested by other features of the case. The railroad persisted

in remaining in the case to the end, after the real parties in interest

came in, and, although codefendants with these parties, the road

manoeuvred for the benefit of the other side in a way which the Court

again said "had an equivocal appearance." The counsel for the firm,

in his brief for the United States Circuit Court of Appeals, pointed

out more causes for "suspicion." He showed the Court that the records

of the case had been mutilated in many places. All the mutilations

were in favor of the other side of the case. Who was the author of

the mutilations was not shown, but it was shown that the record had

been intrusted by the lower court to a representative of one of the

oil trust, to be printed and delivered to the Court of Appeals. "It

would be a very easy matter for a vicious attorney," said the lawyer

of the independents, "under such circumstances, to make changes

and alterations in the record that might not be noticed, but would

nevertheless greatly prejudice the case."

When the victims of the smokeless rebate used the only property many

of them had left--their right of appeal to courts or Legislature

or executive officials--they were showered with abuse, as people

with "private grievances,"[752] "strikers and sore-heads,"

"black-mailers,"[753] "moss-backs," ... "naturally left in the lurch"

... "people who came forward with envy and jealousy of the success"

of the oil combination,[754] "throttlers," "ravenous wolves," "hoary

old reprobate," "senile old liar," "public till-tapper," "plunderers,"

"pestilence."[755] Such are a few of the blossoms of rhetoric

with which those who sought their rights in courts or before the

Legislature have been crowned. These witnesses have come forward all

through the period between 1872 and 1892, and from every point of

importance in the industry--New York, Pittsburg, Cleveland, Oil City,

San Francisco, Titusville, Philadelphia, Marietta, Buffalo, Boston,

Cincinnati, Louisville, Memphis, New Orleans. They have come from every

province of the industry--the refineries, the oil fields, the pipe

lines, railroads, the wholesale and retail markets. Bound together

by no common tie of organization or partnership, they have, each and

all, exactly the same kind of story to tell. The substance of their

complaint--that one selected knot of men, members of one organization,

were given, unlawfully, the control of the highways, to the exclusion

and ruin of the people--has been sustained by the evidence taken by

every official investigation, and by the decision of every court to

which the facts have been submitted.

As the counsel of the New York Chamber of Commerce before the New York

Legislative Committee of 1879 said: "Such a power makes it possible to

the freight agents of the railways to constitute themselves special

partners in every line of business in the United States, contributing

as their share of capital to the business the ability to crush out

rivals." Men who can choose which merchants, manufacturers, producers

shall go to market and which stay at home, have a key that will unlock

the door of every business house on the line; they know the combination

of every safe.

In their appeal to the executive of Pennsylvania, the Petroleum

Producers' Union refer to the conduct of the railroad officials as

"inexplicable upon any ordinary hypothesis, or under any known theory

of railroad politics."[756] What the railroad managers did, we know;

why they did it, has never been judicially demonstrated. One of the

earliest intimations of the kind of lubricant used was given by the

anti-monopoly leader of the people in the Constitutional Convention

of Pennsylvania of 1872, who is now the legal leader of the oil

combination. He said: "I am told that discriminations are now made to

so great an extent as to be ruinous to certain companies unless the

railroad companies' officers are given a bonus. That is the evil under

which we labor. I do not know how to cure it, but it must be cured

somehow." Again he said: "It is charged--I do not make the charge

myself--but it is charged upon a railroad company running through the

oil regions that it will not, without delay, transport oil delivered to

the railroad station by the various pipe lines unless it is interested

in the pipe line.... It is said that whenever a new pipe line is

built, it is necessary that somebody connected with the particular

railroad company shall be presented with stock in the pipe line;

otherwise, it (the railroad company) will not furnish cars without

tedious and unnecessary delay. This is a discrimination which should be

stopped."[757]

It is plain that the purpose of the discrimination was something

more than to shunt the control of the trade--more than "to maintain

the business" of the favorite. Ten cents a barrel difference would

have done that, for, as the Supreme Court of Ohio pointed out, that

alone amounted to a tax of 21 per cent. a year on the capital of the

"outsiders."[758] When 10 cents was enough, why was the tax made

22-1/2 cents, 25 cents, 64-1/2 cents up to $1.10?

Some railroad men are known to have been stockholders in the oil

combination. "I think I owned--I guess I had $100,000 in it.... I don't

know anything at all about it"--the company--the head of the New York

Central admitted.[759] Who were the owners of certain shares of their

capital stock these men have always refused to divulge. In giving in

court a list of stockholders of one of their corporations one of the

officers uncovered only three-quarters of the stock. Who held the other

fourth he avowed he could not say, although the stock-book was in his

custody.[760] The dividends were paid to the vice-president, and by

him handed over to these veiled prophets. There was a similar mystery

about the owners of about $2,000,000 of the National Transit stock, the

concern which owns and manages the pipe lines. Asked for the names of

the owners of this portion, the "secretary" said:

"It is a private matter.... I decline to answer."[761]

The president of this pipe-line branch also refused to give Congress

this information.[762] This secrecy will couple itself at once in the

mind of the investigator with the charges just quoted, that railroad

officials had to be given backsheesh of pipe-line stock before their

roads would carry the oil of the pipe lines.

The United States Senate Committee which investigated the cattle and

meat monopolies had a similar experience. Their report says: "The

secretary of the Union Stockyards testified at Chicago that when the

company was established the stock was subscribed by the railroads; but

when asked to show his stock-books he declined, after consultation with

the company's attorneys, and persisted in this refusal at Washington

City. For the purposes of our investigation it was not considered

necessary to ascertain in whose names the stock now stands, for we

were satisfied that whatever the ownership it would not appear in the

names of the railroad presidents, directors, and stockholders, who

are the real owners.... The refusal of the secretary, under direction

of his employers, to make public the list of stockholders must have

been because of the fact that the same men own the stockyards and the

railroads running to them, and they do not propose to submit their

books to scrutiny because they dread the truth.... This extraordinary

conduct on the part of the stockyards company is not alone in the chain

of evidence which shows complicity between the stockyards and the

railroads."[763]

The smokeless rebate makes the secret of success in business to

be not manufacture, but manufracture--breaking down with a strong

hand the true makers of things. To those who can get the rebate it

makes no difference who does the digging, building, mining, making,

producing the million forms of the wealth they covet for themselves.

They need only get control of the roads. All that they want of the

wealth of others can be switched off the highways into their hands.

To succeed, ambitious men must make themselves refiners of freight

rates, distillers of discriminations, owners, not of lands, mines, and

forests--not in the first place, at least--but of the railway officials

through whose hands the produce must go to market; builders, not of

manufactories, but of privileges; inventors only of schemes to keep for

themselves the middle of the road and both sides of it; contrivers, not

of competition, but of ways to tax the property of their competitors

into their pockets. They need not make money; they can take it from

those who have made it.

In the United States the processes of business feudalization are moving

more rapidly to the end than in any other country. In Chicago, the

youngest of the great cities of the youngest of the great nations,

there are fewer wholesale dry-goods stores in 1894 for a population of

1,600,000 than there were in 1860 for 112,172. In almost every one of

the meteoric careers by which a few men in each trade are rising to

supreme wealth, it will generally be found that to some privilege on

the railed highways, accomplished by the rebate, is due the part of

their rise which is extraordinary. A few cases of great wealth from

the increased value of land, a few from remarkable inventions like the

sewing-machine, are only exceptions.

From using railroad power to give better rates to the larger man, it

was an easy step to using it to make a favorite first a larger man,

then the largest man, and finally the only man in the business. In

meat and cattle we see men rising from poverty to great wealth. From

being competitors, like other men, in the scramble, they get into the

comfortable seat of control of the prices at which the farmer must sell

cattle, and at which the people must buy meat.[764] Many other men

had thrift, sobriety, industry, but only these had the rebate, and so

only these are the "fittest in the struggle for existence." We find a

merchant prince of the last generation in New York gathering into his

hands a share of the dry-goods business of the country which appears

entirely disproportionate to his ability and energy, great though these

be. Is his secret a brain so much larger than his competitors' brains

as his business is greater than theirs? The freight agent of the New

York Central testified that he gave this man a special rate "to build

up and develop their business."

"They were languishing and suffering?"

"To a great extent."[765]

"This," said the counsel for the Chamber of Commerce of New York before

the committee, "is deliberately making the rich richer and the poor

poorer, by taxing the poor for the benefit of the rich through the

instrumentality of the freight charge."[766]

The officials of the Pennsylvania Railroad, by the use of rebates,

handed over the State of Pennsylvania to three coal-dealers, each of

whom had his territory, and was supreme in it, as would-be competitors

found out when they undertook to ship coal into his market. They made

a similar division of the iron and steel business. The rebate is the

golden-rule of the "gospel of wealth." We have already seen that the

secret of the few corporations which have become the owners of almost

every acre of the anthracite coal of Pennsylvania was the rebate.[767]

Along one of the most important lines out of Chicago grain dealers who

had been buying and selling in an open market, building elevators,

investing capital and life, found five years ago market and railroad

and livelihood suddenly closed to them, and the work of thirty years

brought to an untimely end. The United States Interstate Commerce

Commission, and the United States District Attorneys co-operating with

it, broke down in the attempt to compel the railroad men who gave these

privileges of transportation, or the business men who received them,

to testify or to produce their books. The United States grand-jury in

Chicago, in December, 1890, proceeded against the shippers and the

railroad men. All of them refused to tell the rates given or received,

or to produce their books.

Why do you refuse to answer? they were asked.

Because to do so would incriminate us.

Here, too, would-be successful men have gone gunning with the smokeless

rebate for control of the wheat and corn and all the produce of the

American farmer. Grain is fated to go the way that oil, hard coal,

cattle, and meat have already gone. The farmer may remain the nominal

owner of his farm under these circumstances, but he will be real owner

of nothing but the piece of paper title.

First the product of the farm; then the farm. In America rises the

shadow of a coming land-ownership more concentrated, more cruel, with

the impersonal cruelty of corporate anonymity, than any the world has

yet seen.

The grain broker who becomes, by favor of the general freight agent,

the sole shipper and warehouseman of grain along a line of railroad,

becomes thereby the sole buyer, and in the sole buyer of the produce we

have the fast-growing germ of the future sole buyer of the land.

"Petroleum is the victim to-day," said the address, in 1872, of the

Petroleum Producers' Union "to all newspapers and boards of trade

opposing monopoly.... Coal, iron, cotton, breadstuffs, or live-stock

may be in the grasp of the monopoly to-morrow." The prediction is more

than half fulfilled.

"I ran away from home, and went to California," said a prominent grain

merchant to the writer, "to escape being compelled to testify as to

the freight rates I was paying. But these decisions that we cannot be

forced to incriminate ourselves give me safe-conduct, and I am going

home to take all the rebates I can get."

This is what is going on to-day in the "division of property" in

America. Our society is woven together by the steam shuttle that

moves between its farms and dinner-tables, its cotton-fields and

factories, thousands of miles apart, and the shuttle is crooked.

Out of $800,000,000 paid yearly in this country for the carriage of

freight, it was estimated in 1888, by one who knew, that $50,000,000

to $100,000,000 goes to favored shippers.[768] As the result of

personal examination made as an expert for stockholders, he declared

that one of the great trunk lines had in the last twenty years thus

diverted to favorites of the managers $100,000,000 of the money of

the stockholders. Besides his yachts and trotters, every Captain of

Industry worth talking about keeps his stud of railway presidents and

general freight agents.

Public opinion, as yet only in the gristle in these new questions,

turns upon first one and then another as the author of its

troubles--the soulless corporation, the combination of corporations,

railroad oppression, or what not. But the corporation is merely a

cover, the combination of corporations an advantage, the private

ownership of public highways an opportunity, and the rebate its perfect

tool. The real actors are men; the real instrument, the control of

their fellows by wealth, and the mainspring of the evil is the morals

and economics which cipher that brothers produce wealth when they are

only cheating each other out of birthrights.

The success of the same men in Europe shows that railroad

discrimination is not the essence of their power, though it has

in America been the chief instrument. By their wealth and their

willingness to use it in their way they have become supreme. Supreme

even where, as in England and Germany, they had no such unjust and

crushing preference on the highways as in America. Back of highway

privilege, back of money power, back of trade supremacy gained by

these two means must be reckoned, as the essence of this phenomenon,

the morality--our morality--which not only allows but encourages men

to do each other to death, provided only the weapon be a bargain and

the arena a market. "Everything shall not go to market," says Emerson;

but everything does go to market. The millionaire is the modern hero,

says the New York _Evening Post_. The men who have found in the rebate

the secret of business success--and there are more of them than the

public guesses--have only extended a fiercer hand to the results all

were aiming at. They have used the smokeless rebate because it was the

best gun. But if that had not been ready to their hand, they would have

taken the next best. The course of conquest might have been slower,

but, unless checked by moral interventions, it would have reached the

same end. If society is founded on the idea that property belongs to

the strongest, these will sooner or later get all the property, by

bargains or by battles according to "the spirit of the age."

The highest State and national courts and the Interstate Commerce

Commission of the United States have sustained the people in the

assertion of their rights, under the law, to come and go with free

and equal rights on the highways. The judges have solemnly warned

the guilty men that they must give up their "abhorrent" attempt to

drive citizens out of the industries of their choice, and to add the

property of the people to their vast estates. Although thus declared

in the right by the highest judges of the law and the fact, the people

are poor, defeated, and unsuccessful. Though thus warned by the

authoritative voice of the ministers of right and justice that their

purposes and practices are iniquitous and intolerable, the men who have

determined that whole provinces of American industry shall be theirs,

and theirs only, continue their warfare of extermination upon poor men

with methods practically unchanged. They evade or defy the laws of

the States and of the nation, and the decisions of the courts, State

and national. Guided by the advice of the skilfullest lawyers, they

persist in open violation, or make such changes in their procedure as

will nullify statute and decision without danger to them. For thirty

years the independents in the oil regions have had this reinforcement

of the law, and for thirty years, in spite of it, their rights have

been defiantly, continuously violated to the common ruin. The people

spend their lives passing about from field or factory, or shop or

office, to market, from market to court, from court to Legislature,

from Legislature to printing-office. They are the type of the time,

disturbed by the demand of the new tyranny of wealth for tribute from

their daily labors, and forbidden to rest until out of their suffering

a new liberty has been won--the industrial liberty, for which political

and religious liberty wait for their full realization.

Wealth against commonwealth · 第 33 / 36 章