anaheim-gazette 1909-05-27

Curbing of Predatory Wealth Oration by Raymond Nebelung at County High School Forensic Contest As is well known to the people at large today, one of the principal features of the recent Roosevelt administration, was the attack on the possession of ill-gotten wealth. Little wonder that those capitalists trembled when Roosevelt’s “big stick” was mentioned, for their consciences were not clear and they never knew but what they would be the next to feel its force. His policy must first be clearly understood. It was not an attack on wealth. It was an attack on the unfair and unlawful methods used in obtaining this wealth. Ultra-conservatives have charged him with stirring up discontent against wealth as wealth, but this is a total misrepresentation of his position. In his speech at Harrisburg, Pa., Oct. 4, 1906, he said: “All honest men must abhor and reprobate any effort to excite hostility to men of wealth as such. We should do all we can to encourage thrift and business energy, to put a premium on the conduct of the man who honestly earns his livelihood, and more than his livelihood, and who honestly uses the money he has earned.” Therein lay his policy towards those who need not fear the wielding of his stick. His sentiment towards those who had imposed upon weaker individuals or corporations, those who had not been content to utilize simply the advantages given them by control and command of capital, was decidedly different. These he had decided to bring to justice, and he succeeded in bringing as many as the short term of office would per- been a co-operation of the agencies. Investigations and investigations have been conducted by interstate commerce commission executions under the anti-trafficking justice; while investigations of actions have been based have made by the commissioner of actions. Without attempting to haustive list, I will mention some of the more salient actions. In the year 1905 a perpetual tion was obtained from the state court against the principal companies, generally known as “Big Six,” restraining them from continuing and agreeing on prices which their products were to be posed of in states other than of manufacture. In 1902 an arrangement was obtained against the general salt company. This company made arrangements whereby the companies agreed neither to buy nor sell salt except from the federal salt company; and to engage in or assist in the production of salt west of the Mississippi river during the continuance of contract. This arrangement had hanced the price of salt 400 per cent. Proceedings under the rebating tion of the railway legislation, June 22, 1906, to the imposition fines totalling $75,000 on four packing companies, and the Chuck Burlington and Quincey R.R. Twelve individual defendants in New York punished by fine and imprisonment the penalty being $6000 and months’ imprisonment. This is first time that rebating has been who need not fear the wielding of his stick. His sentiment towards those who had imposed upon weaker individuals or corporations, those who had not been content to utilize simply the advantages given them by control and command of capital, was decidedly different. These he had decided to bring to justice, and he succeeded in bringing as many as the short term of office would permit. Many people object to prosecuting the trusts on the ground that trusts are a necessity. They say that our large industries could never have been built up by private capital to the enormous extent they have now attained. If small factories have been closed they say the managers saw it advisable and cheaper to have the manufactories centralized. Against this we lodge no complaint, for if it were merely the centralizing of the industries there would be no harm done. But if a monopoly once reaches that stage, is it content to remain in that condition forever? Does it not see a larger field before it which can only be reached by putting aside the principle of honesty and self-respect? What matters a little shady transaction, if a few millions of dollars are added to the already inflated coffers of the combination, while the same amount is taken from the sadly depleted tills of its small competitors? What matters the bankruptcy of one man if the money goes toward helping satisfy, or, more correctly, intensifying the greed of the corporations, for the more a trust has the more it wants and will use every lawful and frequently unlawful, and secret, means of obtaining its selfish desire. It was against such transactions in finance that the recent administration fought, we may say successfully. For although the walks of finance are still crooked, many of the most prominent perpetrators have been brought to justice or frightened into cleaner financial methods. The immediate past has been a period of great activity in the prosecution of trusts, not only in the federal field but also in the states. Proceedings under the rebating institution of the railway legislation, June 22, 1906, to the imposition fines totalling $75,000 on four packing companies, and the Chase Burlington and Quincey R.R. Two dividual defendants in New York punished by fine and imprisonment; the penalty being $6000 and two months' imprisonment. This is first time that rebating has been issued by imprisonment, and their indications that it has had a positive effect in checking the wide scale practice of unlawful discrimination. In October, 1907, the New York trial R.R. was found guilty of giving rebates on shipments made on the sugar trust. An arrangement been entered into whereby a reward of 5 cents per 100 lbs. was to be made. The railway was fined $1000, or about $2 in fines for each $1 it had received in rebates. Far, until 1908, the suits instituted by the attorney general have left fines of over $300,000, and the investigation of two freight brokers conspired to get rebates. The forcement of the law during President Roosevelt's administration has greatly improved the situation. To quell the words of President Taft, we secretary of war: "The fear of law has been put into the heart of the members of the great corporations." The most important, although not the first action of the government was the Standard oil case. This corporation has been prosecuted again on the ground that it had been curing discriminating rates, and that is every reason to believe that it has done so. We remember the $240,000 fine recently imposed by Judge Landis on the Standard company of Indiana, but on an appeal taken by the corporation fine was revoked. The loss of this case will probably somewhat weaken the cause of the government, but has shown the corporations what must be done, and that there are men afraid to do it. The Standard company has stood at the forefront of American trusts. It has been a favorite topic in the literature of ex- ance that the recent administration fought, we may say successfully. For although the walks of finance are still crooked, many of the most prominent perpetrators have been brought to justice or frightened into cleaner financial methods. The immediate past has been a period of great activity in the prosecution of trusts, not only in the federal field but also in the states. It will be noted that all the prosecutions have been made not simply for the purpose of attacking the corporation, but for some violation of the law. In New York the local ice combination has been prosecuted because of artificial enhancement of prices. In the District of Columbia and in Philadelphia there has also been action against local ice combinations. In Toledo, O., the circuit court recently upheld a decision whereby three ice dealers who were convicted of violating the state anti-trust act were sentenced to fines of $2500 and six months imprisonment. On Oct. 19, 1907, the Standard oil company was found guilty of infraction of the anti-trust law of the same state and fined $5,000,000, but an appeal was lodged against this decision. However, the greatest activity has been shown in the federal field. In 1903 a special appropriation of $500,-000 was made by congress to aid in the enforcement of the anti-trust law and the act to regulate commerce. In the prosecution arising under the interstate commerce clause, there has company of Indiana, but on an appeal taken by the corporation fine was revoked. The loss of the case will probably somewhat weaken the cause of the government, but it has shown the corporations what must be done, and that there are men afraid to do it. The Standard company has stood at the fore of American trusts. It has been a favorite topic in the literature of experience. Although the original agreement of this company was declared illegal in 1892 by the supreme court of Ohio, the corporation was not dissolved until 1899. In that year the Standard oil company of New York was reorganized with a capital of $110,000,000. This company which acts as a holding company took over and placed in a more centralized form the control of the 70 constituent companies. Under this new management the profit of the Standard oil company have called all previous figures. Since 1904 the dividends have averaged 422 percent per year. So far, so good. But this monopoly has not been content to utilize simply the advantage given it by control and command of capital. Secret rates have been obtained from points where the Standard is the only shipper to point where competition exists. In this way a larger extent of territory is tributary to the Standard oil refineries than to those of the independent companies. The system of "blind billing" was and is still used to conceal the rate Mary Wealth County High School The operation of the various investigations and proceeded by the in-commerce commission; prosunder the anti-trust act made by the department of little investigations on which have been based have been the commissioner of corporate without attempting an exert, I will mention some of silent actions. In 1905 a perpetual injunction obtained from the supreme court the principal packing generally known as the restraining them from and agreeing on prices at products were to be distributed other than those sure. In 1902 an injunction against the federally company. This company had agreements whereby other agreed neither to import, salt except from and to salt company; and not to assist in the production west of the Mississippi in the continuance of this arrangement had enriched of salt 400 per cent. is under the rebating secailway legislation, led on its to the imposition of $75,000 on four of the companies, and the Chicago, and Quincey R.R. Two indudants in New York were fine and imprisonment, being $6000 and four prisonment. This is the rebating has been pun-actually charged on the shipments of the Standard. Under this arrangement the rate actually charged does not appear on the face of the way-bill and the collection of freight charges is made not through the local officials, but through some general agent of the railroad, and on the presentation of a summary bill showing the amount of freight charges at the secret rate. Mr. Garfield says in his report on the oil industry: "There is no escape from the conclusion based both on specific evidence and upon the general character of the general rate adjustments, that the Standard not only uses but largely initiates and secures those rate discriminations so advantageous to itself and baffling to its competitors, and that the Standard is often responsible for the use of these secret methods which inure to its exclusive benefit." Roosevelt recognized the dangers of the existing situation and appealed to the conscience of the nation against the obtaining of money by corrupt means. In attacking predatory wealth he said in October, 1905: "The man of great means who achieves an immense fortune by crooked means does a wrong to the body politic and becomes a source of danger to the nation. The conscience of the people has been shocked by the recent exposures of how great fortunes are made; and a serious effort should be made to put a stop to the cynical dishonesty with which men debauch business and political life. The worst citizens are the men who have achieved great wealth or any other form of success in any save a clean and straight-forward manner." Roosevelt has been the worst enemy of the trusts who use illegal means to obtain their wealth. While still governor of New York he disgraced railroads. Is this not fair? Should a man have more rights because he is rich? Compromise and justice tells us no. Instituted a successful filibuster paper trust, the United against various corporations bloated capitalists are being realize that they must obey it. It is made for the rich and the poor. If the regulationitation of private wealth was undertaken, and if the giver were at its discretion to when a fortune is dangerous public, such determination would upon the size of the land not upon its use, such would not only be a dangerion of private rights, but so of necessity entail upon general government a system tribution of wealth and workably lead to socialism. It is the manner in which a fortune obtained and the uses to be put that the objection is provided the methods are honest and honest. The slogan of formers could well be given rights to all, special priva none." It has been seen that Roosevelt the people with him during attempts to curb predators. For what reason? Because defending the moral side of tion. He wished to see that producer enjoy the same law overgrown magnate. He to see the wealth built on destroyed and the wealth honesty preserved, and if it and justice count for aught right. The indications are present administration will cease the same policy, and that part of ill-gotten wealth will still need to fear the wielding off stick in the hands of Roosevelt. is under the rebating secrailway legislation, led on B.S., to the imposition of $75,000 on four of the canies, and the Chicago, and Quincey R.R. Two indants in New York were fine and imprisonment, being $6000 and four prisonment. This is the rebating has been punisonment, and there are that it has had a potent tacking the wide spread unlawful discrimination. 1907, the New York Censury found guilty of granting shipments made by An arrangement had into whereby a rebate for 100 lbs. was to be railway was fined $108, $2 in fines for every received in rebates. So the suits instituted by general have led to 300,000, and the imprito freight brokers who get rebates. The engree law during President ministration has greate situation. To quote President Taft, while he said: "The fear of the put into the hearts of the great corporaimportant, although not of the government, hard oil case. This corpen prosecuted against that it had been serating rates, and there to believe that it We remember the $29, incently imposed by on the Standard oil Indiana, but on an apthe corporation this ed. The loss of this only somewhat weaken the government, but it corporations what may that there are men not The Standard oil stood at the fore of It has been a favlite literature of expo- Roosevelt has been the worst enemy of the trusts who use illegal means to obtain their wealth. While still governor of New York he dismayed capitalists by his actions against the coterie on Wall street. The thought of him as president appalled them. For what reason? Their consciences were not clear. As the guilty betray their guilt by their actions, so Wall street betrayed its position by its actions. For Wall street knew then what the world has learned since—how crooked are the walks of high finance. Wall street knew then what would happen to Depew and Platt, to McCall and to Alexander of insurance fame and to Hyde and to Hill, if the mask of respectability were removed. The Standard oil company assumed a tone of defiance which the govern­ment could not let go unanswered. The following rather startling statement was recently made by a high official of the Standard oil company to a cabinet officer: "We are bigger than the govern­ment. Standard oil is stronger than the United States. We own the senate and the house. If you prosecute us you will be out of your job. Rockefeller is a bigger man than Roosevelt." When a corporation assumes such a tone of defiance, it is surely time for action. After imposing the $29,000,000 fine on the Standard oil company, Judge Landis said: "The men who thus deliberately violate this law wound society more deeply than does he who counterfeits coins or steals letters from the mails." And he is right. The Standard oil trust has wounded our national life by training great bodies of young employes to secret and devious ways of circumventing the laws of the country and to make it worth their while to break the rules of fairness and deceit which producer enjoy the same the overgrown magnate. H. to see the wealth built on or destroyed and the wealth or honesty preserved, and if it and justice count for aught right. The indications are present administration will cease the same policy, and that peo­of ill-gotten wealth will still need to fear the wielding off-stick in the hands of Roosevelt successor, Wm. Taft. The American people are en­ence of a commercial despotic as arrogant and oppressive in the political despotism which ed in the birth of modern den­If free institutions are to be re-ed,if the happiness, prosperity development of the people i It has been a favorite literature of expone original agreement was declared illegal supreme court of Ohio was not dissolved unt year the Standard New York was reorgcapital of $110,000,000 which acts as a holdover and placed in need form the control of the control companies. Unmagement the profits oil company have exs figures. Since 1900 we averaged 422 per so far, so good. Only has not been conply the advantages oil and command of rates have been obs where the Standshipper to points on exists. In this ment of territory is Standard oil refinose of the indepen- “blind billing” was no conceal the rates Landis said: "The men who thus deliberately violate this law wound society more deeply than does he who counterfeits coins or steals letters from the mails." And he is right. The Standard oil trust has wounded our national life by training great bodies of young employees to secret and devious ways of circumventing the laws of the country and to make it worth their while to break the rules of fairness and decency which should govern the intercourse of men whether in business or society. Many of the methods employed by the possessors of privilege and the great financial gamblers, not only the Standard oil, but the beef, lumber, ice and railroad trusts, tried to cast discredit upon and to drive to private life all incorruptable and able statesmen and others whose influence they dread. No source of danger to predatory wealth has been left unassailed by its retinue of hired servants. The maxim attributed to Cardinal Richelieu, “First all means to conciliate and failing in that, all means to crush and ruin”—has been the unvarying rule of privileged interests. It is against this fradulent misuse of wealth that the government has instituted such an active campaign. Its position must be understood. It is the desire of the government to give the small producer an equal chance to compete with the larger corporations. It is its desire to give them equal rights in the courts and equal service and charges from the Is this not fair to all? A man have more rights mere-ause he is rich? Common sense justice tells us no. Canada has had a successful fight against her trust, the United States various corporations. The capitalists are beginning to what they must obey the law. Made for the rich as well as it. If the regulation and limi-of private wealth were to be seen, and if the government its discretion to determine fortune is dangerous to the much determination being de-pupon the size of the fortune upon its use, such a course not only be a dangerous inva-private rights, but would al-cessity entail upon the federnment a systematic redis- of wealth and would inevit- to socialism. It is against mer in which a fortune is used and the uses to which it that the objection is made, and the methods are not clean rest. The slogan of the re-ould well be given as "Equal all, special privileges to been seen that Roosevelt had life with him during all his to curb predatory wealth. The reason? Because he was on the moral side of the ques- wished to see the small enjoy the same rights as crown magnate. He wished the wealth built on privilege and the wealth built on preserved, and if morality the count for aught he was indications are that the administration will continue in policy, and that possessors even wealth will still have scar the wielding of the big hands of Roosevelt's able the master and controlling aim of government; if freedom, justice and fraternity are to be aught but empty words, the feudalism of wealth built on privilege must be overthrown. KNEW WHO MADE THE WORLD Once upon a time, not so long ago, a couple of cow punchers found themselves guests in the home of a minister of the gospel whose custom was to hold family worship of a morning, and to conclude the same by asking each one present to give some quotation from the scriptures. One after another repeated some text, until at last it came the turn of Jim Bul-stoke of the Crowfoot ranch. "My dear young friend," said the dominie, as he saw the latter hesitating, "surely you can recall some verse from the Bible?" Jim's face was bathed with profuse perspiration, but at last there came to him some approximation of a memory of something he had read or heard at some stage of his life about the first chapter of Genesis. At last he broke out: "God made the world!" The dominie lifted a hand to hide a sudden smile, but bowed to Jim's neighbor in the circle. Curley was even worse off than Jim had been, and for the life of him could not think of anything. At last, remembering the occasional virtue of good bluff, he twisted one foot around his chair leg and, with all the confidence he could muster, remarked: "He shore did!" MORE MONEY FOR RURAL CARRIERS Washington, May 24.—An increase in the rates of pay for rural free delivery mail carriers is provided for in a bill introduced by MORE MONEY FOR RURAL CARRIERS Washington, May 24.—An increase in the rates of pay for rural free delivery mail carriers is provided for in a bill introduced by Representative Steenerson of Minnesota. 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