They are rapidly making us outsiders with respect even of the things that come from the bosom of the earth, and which belong to us in a peculiar sense. Certain monopolies in this country have gained almost complete control of the raw material, chiefly in the mines, out of which the great body of manufactures are carried on, and they now discriminate, when they will, in the sale of that raw material between those who are rivals of the monopoly and those who submit to the monopoly. We must soon come to the point where we shall say to the men who own these essentials of industry that they have got to part with these essentials by sale to all citizens of the United States with the same readiness and upon the same terms. Or else we shall tie up the resources of this country under private control in such fashion as will make our independent development absolutely impossible.
There is another injustice that monopoly engages in. The trust that deals in the cruder products which are to be transformed into the more elaborate manufactures often will not sell these crude products except upon the terms of monopoly—that is to say, the people that deal with them must buy exclusively from them. And so again you have the lines of development tied up and the connections of development knotted and fastened so that you cannot wrench them apart.
Again, the manufacturing monopolies are so interlaced in their personal relationships with the great shipping interests of this country, and with the great railroads, that they can often largely determine the rates of shipment.
The people of this country are being very subtly dealt with. You know, of course, that, unless our Commerce Commissions are absolutely sleepless, you can get rebates without calling them such at all. The most complicated study I know of is the classification of freight by the railway company. If I wanted to make a special rate on a special thing, all I should have to do is to put it in a special class in the freight classification, and the trick is done. And when you reflect that the twenty-four men who control the United States Steel Corporation, for example, are either presidents or vice-presidents or directors in 55 percent of the railways of the United States, reckoning by the valuation of those railroads and the amount of their stock and bonds, you know just how close the whole thing is knitted together in our industrial system, and how great the temptation is. These twenty-four gentlemen administer that corporation as if it belonged to them. The amazing thing to me is that the people of the United States have not seen that the administration of a great business like that is not a private affair; it is a public affair.
I have been told by a great many men that the idea I have, that by restoring competition you can restore industrial freedom, is based upon a failure to observe the actual happenings of the last decades in this country; because, they say, it is just free competition that has made it possible for the big to crush the little.
I reply, it is not free competition that has done that; it is illicit competition. It is competition of the kind that the law ought to stop, and can stop—this crushing of the little man.
You know, of course, how the little man is crushed by the trusts. He gets a local market. The big concerns come in and undersell him in his local market, and that is the only market he has; if he cannot make a profit there, he is killed. They can make a profit all through the rest of the Union, while they are underselling him in his locality, and recouping themselves by what they can earn elsewhere. Thus their competitors can be put out of business, one by one, wherever they dare to show a head. Inasmuch as they rise up only one by one, these big concerns can see to it that new competitors never come into the larger field. You have to begin somewhere. You can’t begin in space. You can’t begin in an airship. You have got to begin in some community. Your market has got to be your neighbors first and those who know you there. But unless you have unlimited capital (which of course you wouldn’t have when you were beginning) or unlimited credit (which these gentlemen can see to it that you shan’t get), they can kill you out in your local market any time they try, on the same basis exactly as that on which they beat organized labor; for they can sell at a loss in your market because they are selling at a profit everywhere else, and they can recoup the losses by which they beat you by the profits which they make in fields where they have beaten other fellows and put them out. If ever a competitor who by good luck has plenty of money does break into the wider market, then the trust has to buy him out, paying three or four times what the business is worth. Following such a purchase it has got to pay the interest on the price it has paid for the business, and it has got to tax the whole people of the United States, in order to pay the interest on what it borrowed to do that, or on the
