CHAPTER XX

THE UNIVERSITY OF U. G. I.

Having visited the city in which they ask you what you are worth, and

the city in which they ask you what you know, we have next to visit the

city in which they ask you who your grandfather was. We shall find that

in these modern days the purpose of the inquiry is to find out if your

grandfather was rich. If your grandfather was poor, it will be necessary

for you to become richer before you get what you want in that city.

In order to reach Philadelphia from Boston we take the New York, New

Haven & Hartford Railroad, which is a Morgan road with a recent Harvard

overseer for chairman, a Brown trustee for vice-president, a recent Yale

president for director, and a member of the Yale advisory board, a

Washburn College trustee, a Wellesley trustee, a Pratt Institute

trustee, and two Harvard visitors for directors. The second part of our

journey is on the Pennsylvania Railroad, which is a Morgan road and is

interlocked with the Guaranty Trust Company, Massachusetts Tech, Johns

Hopkins, Princeton, Yale, the University of Pittsburgh, the United

States Steel Corporation, Bryn Mawr College, Wilson College, Carnegie

Tech, the Girard Trust Company of Philadelphia and the University of

Pennsylvania. Or, if we prefer, we can take the Baltimore & Ohio

Railroad, which has a Johns Hopkins trustee for president, and another

Johns Hopkins trustee for director, a Pittsburgh trustee, a Princeton

trustee, a Lafayette trustee, a Rutgers trustee, a Teachers’ College and

a Lehigh trustee for directors, also a Morgan partner and a First

National Bank director and two Guaranty Trust Company directors and a

trustee of the University of Pennsylvania. Or we can take the Reading

Railroad, which is Morgan and University of Pennsylvania, University of

Pittsburgh, Swarthmore and Pennsylvania State; or the Philadelphia,

Baltimore and Washington, which is University of Pennsylvania, Equitable

Life, and Johns Hopkins.

We arrive in Philadelphia, which means the City of Brotherly Love, and

observe in every down-town city block its ideals embodied in especially

large men in blue uniform, riding on especially large horses and

carrying especially large clubs, also revolvers scarcely concealed.

Philadelphia is located in the state of Pennsylvania, which means Penn’s

Woodland, and was named after a radical pacifist. All over these

woodlands now ride the state constabulary, and club the heads of persons

such as William Penn whenever they show themselves in action.

In the New York branch of our plutocratic empire of education we found

the emperor, and in the Boston branch we found his son; in Philadelphia

we find the eldest of the grand dukes. The office of J. P. Morgan &

Company in that city is known as Drexel & Company, and Philadelphia’s

great university is presided over by Mr. Edward T. Stotesbury, head of

Drexel & Company, and partner in J. P. Morgan & Company of New York. Mr.

Stotesbury is the chief investment banker of that part of the country;

he is president of three railroads and director in about twenty, also in

about twenty coal companies, and as many financial institutions, banks,

trust companies, safe deposit and insurance companies, also the Baldwin

Locomotive Works and the Cambria Steel Company. The laws of the United

States strictly forbid railroads to own coal companies, and vice versa,

but the interlocking directorate has defied this law for a generation,

and Mr. Stotesbury is one of the principal defiers.

This eldest of the grand dukes is active in their Grand Ducal party,

having taken the job of raising the money to buy the presidency of the

United States in 1904 and 1908. He is also a patron of the graces of

life; he spent fourteen thousand dollars for a trotting horse in a city

in which tens of thousands of little children go to school hungry every

day; he is so little ashamed of this performance that he caused it to be

embodied in his biography in “Who’s Who.” As second grand duke of his

university, Mr. Stotesbury has the son of old “Pete” Widener,

Philadelphia’s traction king; as assistants on the board of this

university he has a partner in his banking firm, and a choice assortment

of plutocrats, totalling as follows: five bankers, three lawyers, two

public utility officials, two corporation officials, three

manufacturers, an insurance and coal mining man, a publisher, an

architect, an engineer, two doctors, two judges, and a senator. It is

difficult to classify these trustees exactly, because the functions of

the various members overlap; most of the bankers are in the coal

business, the lawyers are directors in banks, the architect is an

exbanker, the engineer is director of a power company and a trolley

company, while the publisher is president of a steel company and a

railroad, and director of a national bank. One of the public utility

officials is the brother of Senator Penrose, one of the most

aristocratic political corruptionists America ever had; one of the

lawyers, Wickersham, was Taft’s attorney general; the senator is George

Wharton Pepper, chief lackey to the plutocracy of Pennsylvania. Another

lawyer is general counsel and active vice-president of the United Gas

Improvement Company; two of the bankers are directors in that company.

Another of the bankers is a sugar smuggler, and one of the manufacturers

helped in the effort to buy a presidential nomination for General Wood.

One could not get a more plutocratic board than this; and the

significant thing about it is that they are nearly all of them active,

hard-fighting plutocrats; no retired bandits fattening on their

accumulated loot, but hard campaigners, living in the saddle, riding day

by day to combat. They are the banking men, the coal men, the gas men,

the railroad men, who are robbing the public and crushing labor hour by

hour, and the control they exercise over their educational system is of

the instant, vigilant, smashing kind which you would expect from

military men on hard service.

It is a little difficult to find a satisfactory name for a university in

which so many plutocratic interests are so completely represented. I

might call it the University of Morgan-Drexel, or I might call it the

University of the Pennsylvania Railroad, and be entirely just and exact.

After studying its management and history, I realize that its most

active single interest is the United Gas Improvement Company of

Philadelphia, known as U. G. I. You must not think of this as a local

gas company; it is a great chain of corporations, ruling over three

hundred cities and towns, and with a total investment of five hundred

millions of dollars. Of the seven directors of this concern, Mr.

Stotesbury and two others are on the board of the university, and a

fourth left only last year; also an attorney for the U. G. I. is on the

board. Mr. Randall Morgan, vice president of the U. G. I., is chairman

of the finance committee of the university, the all-powerful position.

Some eighteen years ago Lincoln Steffens described the City of Brotherly

Love in an article entitled “Philadelphia Corrupt and Contented.” He

told how the political ring voted dead dogs and Negro babies at

elections, and how they played poker in hotel rooms for the franchises

and public privileges of the city. Philadelphia was corrupt in those

days, but it was not really contented; for the people had assembled with

ropes in their hands, to mob their city councilmen who were giving away

a franchise to the U. G. I. But since those days the war has come, and

taught our rulers how to handle social discontent. There was a general

strike in the City of Brotherly Love, and it was smashed; the little

Socialist bookstore was raided, the books burned and everybody who sold

them jailed, and now Philadelphia is truly contented, and where the

interlocking directorate used to plunder in tens of millions it now

plunders in hundreds.[E]

[Footnote E: In April, 1922, all the officers and directors of the

United Gas Improvement Company, and its subsidiaries, were indicted by

the Federal grand jury in New York for criminal activities. This grand

jury took testimony for over four weeks, hearing city officials from all

over the Eastern and Central states. The charges listed in the

indictment were that the U. G. I. “(1) instituted and caused to be

instituted unwarranted, vexatious and tortuous litigation against

competitors for the purpose of injuring and intimidating them and

preventing them from continuing to engage in the industry; (2)

instigating the false arrest of competitors and falsely charged said

competitors with counterfeiting trade-marks; (3) acquired control of

competing companies wherever possible and operated said companies as

ostensible but not real competitors of the United Gas Improvement

Company; (4) secretly and fraudulently acquired stock control of

competing companies and eliminated competition on the part of said

companies; (5) entered or caused to be entered collusive bids for

contracts for furnishing and maintaining incandescent gas street lamps

by two or more companies belonging to the United Gas Improvement

Company, each company falsely representing itself to be independent and

not connected with any other company bidding for the same contract; (6)

concealed and denied ownership of various subsidiary companies, and

operated said companies ostensibly as competitors but in fact as

unlawful instruments in accomplishing the objects of the combination and

monopoly; (7) circulated or caused to be circulated false and misleading

reports concerning competitors for the purpose of preventing

competition; (8) molested, injured, and interfered with competitors for

the purpose of intimidating and discouraging them and preventing them

from continuing as competitors in the industry; (9) entered into

contracts with competitors whereby said competitors agreed to refrain

from competition.” The prosecutions were called off by Attorney-General

Daugherty, the particular government official whom President Harding has

appointed for the protecting of big business criminals in the United

States.]

From the beginning the U. G. I. has been vigilant in holding down the

professors in its university. As early as 1886 Professor Edmund J. James

prepared a paper in which he showed the excessive cost of gas furnished

by private companies; for this he was severely mishandled. Later on,

when a syndicate was formed to steal the waterworks from the city of

Philadelphia, they offered Professor James twenty thousand dollars to

keep still on the subject of municipal waterworks; and when he declined

this most generous proposition, they let him go to the University of

Chicago.

Next, in 1898, Professor Leo S. Rowe, now director of the Pan-American

Union, published a paper on Philadelphia’s experiences with its gas

supply. Mr. Clark, one of the vice-presidents of the U. G. I., took

great offense at these statements and made desperate efforts to compel

Mr. Rowe to change them. Professor E. W. Bemis of the University of

Chicago has stated over his own signature as follows: “Failing in this

endeavor, he, Clark, became much excited, and declared to me that if

Professor Rowe did not change or withdraw the account, he would lose all

social and scientific standing in Philadelphia and at the University of

Pennsylvania. Mr. Clark added that he was positive of this, because he

was in close touch with both the city and the university.” Bear in mind,

if you can, the name of this injudicious Professor Bemis, because we

shall hear about him and his adventures at the University of Chicago.

A friend of mine in Philadelphia, who was in touch with this

controversy, told me the curious experience of a young instructor, who

is now connected with the State Department at Washington. This

instructor dug out information concerning certain defects in the charter

of the U. G. I.; and when the directors of the company learned what he

had got, they treated him to “the finest dinner on earth.” “One thing we

want to suggest that you change,” etc. “Well,” said the young

instructor, “I got this out of an ordinance.” He went to his dean with

the facts, and the dean found he was right and told him to stick by it.

This dean was Lewis, another man who got into trouble in the university,

and had a ten years’ campaign to hold his job, because he persisted in

taking part in the activities of the Progressive party. The young

instructor turned his material over to Professor Rowe, and Rowe made use

of it, and as a result his salary was held down for years; none of his

young instructors could get promoted, and he was handicapped at every

turn. Finally, when he was doing war work for the government, and

Secretary McAdoo asked for further leave of absence, an ugly answer was

returned by the university, and Professor Rowe was forced to withdraw.

Next came the adventure of Professor Clyde King, who in 1912 made the

discovery that the U. G. I. was robbing the government of the city of

half a million dollars a year, by delivering gas of less than twenty-two

candlepower, the quality specified in its lease. They worked this little

scheme through the chief of the Bureau of Gas, and the exposure made a

terrific scandal in Philadelphia. This chief had ten thousand dollars a

year for his department, and he himself drew fifty-five hundred of this,

and had five assistants, and only one doing any work. Professor King

took records as to the gas tests, and proved that the U. G. I. had

notice in advance, by a secret telephone code, and they pumped in benzol

vapor to improve the quality of the gas.[F] The president of the gas

company, of course, denied that he knew anything about it. The

vice-president and active head of the gas company, a trustee of the

university, made desperate efforts to suppress this scandal, but he

failed; and as a result of the exposure, the chief of the gas bureau was

fired—and three months afterwards was given an honorary degree by

Muhlenberg College, at Allentown, Pa.

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Footnote F:

See files of Public Service Commission, City of Philadelphia.

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You may have been puzzled as you read this book to understand why the

plutocracy should be so anxious to own universities and colleges; but

now you can understand. If you own a university or college, neither you

nor your friends can ever be sent to jail, and no matter what crimes you

may commit, you can always be made respectable again. This was proven in

the case of the gas chief, for shortly afterwards the U. G. I. came back

into control of the city, and the gas chief was reappointed to his

office! It is interesting to note that the grand duke of Muhlenberg

College who arranged this honor for the gas chief is Colonel Trexler,

president of a lumber company, a cement company, a trolley company and a

telephone company, and author of the wittiest remark now current in the

educational world: “I believe that colleges should grow by degrees!”

The Goose-step: A Study of American Education · 第 20 / 93 章