grateful workman.
On their part the laborers were no better. Their relations to their employers being “purely commercial,” as it was called, they put no heart into their work, seeking ever to do as little as possible for their money, precisely as their employers sought to pay as little as possible for the work they got. The interests of the two classes being thus antagonized, they grew to distrust and hate each other, and each accession of ill feeling produced acts which tended to broaden the breach more and more. There was neither cheerful service on the one side nor ungrudging payment on the other.
The harder industrial conditions generated by woman’s irruption into a new domain of activity produced among laboring men a feeling of blind discontent and concern. Like all men in apprehension, they drew together for mutual protection, they knew not clearly against what. They formed “labor unions,” and believed them to be something new and effective in the betterment of their condition; whereas, from the earliest historical times, in Rome, in Greece, in Egypt, in Assyria, labor unions with their accepted methods of “striking” and rioting had been discredited by an almost unbroken record of failure. One of the oldest manuscripts then in existence, preserved in a museum at Turin, but now lost, related how the workmen employed in the necropolis at Thebes, dissatisfied with their allowance of corn and oil, had refused to work, broken out of their quarters and, after much rioting, been subdued by the arrows of the military. And such, despite the sympathies and assistance of brutal mobs of the populace, was sometimes the end of the American “strike.” Originally organized for self-protection, and for a time partly successful, these leagues became great tyrannies, so reasonless in their demands and so unscrupulous in their methods of enforcing them that the laws were unable to deal with them, and frequently the military forces of the several States were ordered out for the protection of life and property; but in most cases the soldiers fraternized with the leagues, ran away, or were easily defeated. The cruel and mindless mobs had always the hypocritical sympathy and encouragement of the newspapers and the politicians, for both feared their power and courted their favor. The judges, dependent for their offices not only on “the labor vote,” but, to obtain it, on the approval of the press and the politicians, boldly set aside the laws against conspiracy and strained to the utmost tension those relating to riot, arson and murder. To such a pass did all this come that in the year 1931 an inn- keeper’s denial of a half-holiday to an under-cook resulted in the peremptory closing of half the factories in the country, the stoppage of all railroad travel and movement of freight by land and water and a general paralysis of the industries of the land. Many thousands of families, including those of the “strikers” and their friends, suffered from famine; armed conflicts occurred in every State; hundreds were slain and incalculable amounts of property wrecked and destroyed.
Failure, however, was inherent in the method, for success depended upon unanimity, and the greater the membership of the unions and the more serious their menace to the industries of the country, the higher was the premium for defection; and at last strike-breaking became a regular employment, organized, officered and equipped for the service required by the wealth and intelligence that directed it. From that moment the doom of labor unionism was decreed and inevitable. But labor unionism did not live long enough to die that way.
Naturally combinations of labor entailed combinations of capital. These were at first purely protective. They were brought into being by the necessity of resisting the aggressions of the others. But the trick of combination once learned, it was seen to have possibilities of profit in directions not dreamed of by its early promoters; its activities were not long confined to fighting the labor unions with their own weapons and with superior cunning and address. The shrewd and energetic men whose capacity and commercial experience had made them rich while the laborers remained poor were not slow to discern the advantages of cooperation over their own former method of competition among themselves. They continued to fight the labor unions, but ceased to fight one another. The result was that in the brief period of two generations almost the entire business of the country fell into the hands of a few gigantic corporations controlled by bold and unscrupulous men, who, by daring and ingenious methods, made the body of the people pay tribute to their greed.
In a country where money was all-powerful the power of money was used without stint and without scruple. Judges were bribed to do their duty, juries to convict, newspapers to support and legislators to betray their constituents and pass the most oppressive laws. By these corrupt means, and with the natural advantage of greater skill in affairs and larger experience in concerted action, the capitalists soon restored their ancient reign and the state of the laborer was worse than it had ever been before. Straman says that in his time two millions of unoffending workmen in the various industries were once discharged without warning and promptly arrested as vagrants and deprived of their ears because a sulking canal-boatman had kicked his captain’s dog into the water. And the dog was a retriever.
Had the people been honest and intelligent, as the politicians affirmed them to be, the combination of capital could have worked no public injury—would, in truth, have been a great public benefit. It enormously reduced the expense of production and distribution, assured greater permanency of employment, opened better opportunities to general and special aptitude, gave an improved product, and at first supplied it at a reduced price. Its crowning merit was that the industries of the country, being controlled by a few men from a central source, could themselves be easily controlled by law if law had been honestly administered. Under the old order of scattered jurisdictions, requiring a multitude of actions at law, little could be done, and little was done, to put a check on commercial greed; under the new, much was possible, and at times something was accomplished. But not for long; the essential dishonesty of the American character enabled these capable and conscienceless managers—“captains of industry” and “kings of finance”—to buy with money advantages and immunities superior to those that the labor unions could obtain by menaces and the promise of votes. The legislatures, the courts, the executive officers, all the sources of authority and springs of control, were defiled and impested until right and justice fled affrighted from the land, and the name of the country became a stench in the nostrils of the world.
Let us pause in our narrative to say here that much of the abuse of the so-called “trusts” by their victims took no account of the folly, stupidity and greed of the victims themselves. A favorite method by which the great corporations crushed out the competition of the smaller ones and of the “individual dealers” was by underselling them—a method made possible by nothing but the selfishness of the purchasing consumers who loudly complained of it. These could have stood by their neighbor, the “small dealer,” if they had wanted to, and no underselling could, have been done. When the trust lowered the price of its product they eagerly took the advantage offered, then cursed the trust for ruining the small dealer. When it raised the price they cursed it for ruining themselves. It is not easy to see what the trust could have done that would have been acceptable, nor is it surprising that it soon learned to ignore their clamor altogether and impenitently plunder those whom it could not hope to appease.
Another of the many sins justly charged against the “kings of finance” was this: They would buy properties worth, say, ten millions of “dollars” (the value of the dollar is now unknown) and issue stock upon it to the face value of, say, fifty millions. This their clamorous critics called “creating” for themselves forty millions of dollars. They created nothing; the stock had no dishonest value unless sold, and even at the most corrupt period of the government nobody was compelled by law to buy. In nine cases in ten the person who bought did so in the hope and expectation of getting much for little and something for nothing. The buyer was no better than the seller. He was a gambler. He “played against the game of the man who kept the table” (as the phrase went), and naturally he lost. Naturally, too, he cried out, but his lamentations, though echoed shrilly by the demagogues, seem to have been unavailing. Even the rudimentary intelligence of that primitive people discerned the impracticability of laws forbidding the seller to set his own price on the thing he would sell and declare it worth that price. Then, as now, nobody had to believe him. Of the few who bought these “watered” stocks in good faith as an investment in the honest hope of dividends it seems sufficient to say, in the words of an ancient Roman, “Against stupidity the gods themselves are powerless.” Laws that would adequately protect the foolish from the consequence of their folly would put an end to all commerce. The sin of “over-capitalization” differed in magnitude only, not in kind, from the daily practice of every salesman in every shop. Nevertheless, the popular fury that it aroused must be reckoned among the main causes contributory to the savage insurrections that accomplished the downfall of the republic.
With the formation of powerful and unscrupulous trusts of both labor and capital to subdue each other the possibilities of combination were not exhausted; there remained the daring plan of combining the two belligerents! And this was actually effected. The laborer’s demand for an increased wage was always based upon an increased cost of living, which was itself chiefly due to increased cost of production from reluctant concessions of his former demands. But in the first years of the twentieth century observers noticed on the part of capital a lessening reluctance. More frequent and more extortionate and reasonless demands encountered a less bitter and stubborn resistance; capital was apparently weakening just at the time when, with its strong organizations of trained and
