Chapter LI: Part II: Present Day Problems (5)

The money power has governed legislation in all civilized countries for generations. It matters not what party is in power in the national or State governments of our own country, the money power has exercised a controlling influence in many instances in the shaping and administration of our laws.

If the accumulation of vast fortunes goes on another generation with the same accelerated rapidity as during the present, the wealth of this country will soon be consolidated in the hands of a few corporations and individuals to as great an extent as the landed interests of Great Britain now are.

What is the remedy for this state of things, which, if permitted to continue, will make the masses of the people dependent upon the generosity of the few for the means to live? So far as concerns corporations of a public or quasi-public character—and none others should exist—the remedy is simple. They are completely under the control of the legislatures, whence they derive all their powers.

It is entirely competent for a legislature to provide the manner in which the business of a corporation shall be conducted. It may provide that the directors shall consist of few or many persons, that a portion of them shall be taken from the employes of the corporation, selected by them, another part from the stockholders who furnish the capital for carrying on its business. It may provide that the employes shall first be paid from the revenues of the company a certain fixed sum, graduated according to the character of the work performed by each; that a fair rate of interest shall then be paid upon the capital invested, and the balance be distributed upon some equitable principle between the employes and the stockholders. In case of loss the stockholders would have to suffer, since the employe, having a right to live, must in all cases receive his daily wages when dependent upon them for subsistence. This principle receives judicial sanction from United States Circuit Judge Caldwell, in his order entered in case of the Santa Fe Railroad, as follows:

“Ordered that the men employed by the receivers in the operation of the road and the conduct of its business shall be paid their monthly wages not later than the 15th of the month following their accrual. If the earnings of the road are not sufficient to pay the wages of the men as herein directed, the receivers are hereby authorized and required to borrow from time to time, as occasion may require, a sufficient sum of money for that purpose. The obligations of the receivers for money borrowed for this purpose specified in this order shall constitute a lien on the property of the trust prior and superior to all other liens thereon.”

Under the powers inherent in every sovereignty, government may regulate the conduct of its citizens toward each other, and, when necessary for the public good, the manner in which each shall use his own property.

Formerly, corporations having special privileges were created by special acts, which the courts construed to be contracts between the granting power and the corporators which, once granted, could not be repealed or varied by the granting power. This granting of charters to favored individuals, conferring upon them privileges not possessed by the general public, became obnoxious to public sentiment, and, as a consequence, general laws have been passed in this and many other States, under which any three persons may become incorporated for any private purpose. This has become a worse evil than the old system of granting special charters. Under the general law enacted in this State twenty years ago. I am informed, 27,200 corporations have been created.

Irresponsible persons are often induced, for a small consideration, to form corporations with a proposed capital of millions; to subscribe for the whole stock except a share or two, and, for a fancied, imaginary or worthless consideration, to issue to themselves fully paid up stock, which is subsequently transferred to the real parties in interest, who expect thereby to escape personal liability if the concern is a failure, and to pocket the profits if a success. Business of all sorts is now to a great extent carried on in the name of corporations, in order that the proprietors may escape personal responsibility. How can the individual, who is personally responsible for his contracts, successfully compete with a corporation run by persons who incur no such responsibility? Doing business in a corporate name not only paralyzes individual effort, but leads to a concentration of capital—the great evil of our time. The remedy for this growing state of things would be to restrict the formation of corporations to such as are formed for public purposes, or such as the public have an interest in. Seventy-eight per cent. of the great fortunes of the United States are said to be derived from permanent monopoly privileges which ought never to have been granted.

As before stated, the power to dispose of property after death by will is conferred by statute, under certain limitations. Why should this privilege be given to dispose of more than a fixed amount of property to any one individual? Say property to the value of not over five hundred thousand dollars to the wife, of not more than one hundred thousand dollars to each child, and of not more than fifty thousand dollars to any other relative, extending to the third or fourth degree, and that the balance of the estate should escheat to the State, to be used by it for the support of schools, charitable institutions, the employment of laborers in making roads, and other good purposes.

The law now provides for the escheat of estates of persons dying without heirs. The same limitation might be put upon inheritances where there is no will, and in this way the accumulation of vast estates by inheritance or devise would be checked, and property, especially landed estates, which by nature belong to all, would be more equally distributed. It should not be forgotten that the method of transmitting property from the dead to the living is entirely derived from the state. If public policy requires that the state should give to the dying possessor, no longer able to control or take with him his possessions, the privilege of disposing of so much as may be conducive to the comfort and happiness of his surviving kindred, does it require that this privilege should be extended to his disposition of millions to the injury of the rest of mankind?

If it be said that to limit the privilege of disposing of exceeding a million dollars of property by devise or descent would check enterprise and industry, as no man would struggle to acquire property which he could not leave to his surviving kindred, my reply is, that man by his own thrift and industry is seldom able to acquire more than a million dollars’ worth of property. Fortunes exceeding that amount are usually acquired by speculation, trickery, or some device by which one man takes advantage of his fellow-man, and which, if not illegal, is immoral; or by members of privileged monopolies, trusts and syndicates.

I don’t mean to say that all great fortunes exceeding a million have been acquired by immoral means, but such as have not are the exception, and to limit the privilege of disposing of more than a million by devise or descent would not affect one in ten thousand of the people. In short, such limitation would tend to discourage, not honest enterprise and industry, but stock-jobbing, trickery and other questionable methods of acquiring vast fortunes.

We have already abolished primogeniture, by which the eldest son, to the exclusion of all other children, inherits the entire landed estate of his ancestor, and no one in this country at this day would think of restoring that right, although it still obtains in England. If limitations should be put upon the disposition of vast estates by will or descent, future generations would doubtless look upon our present laws, which allow such estates to be perpetuated in certain families, with the same disfavor with which we now look upon the laws of primogeniture.

Evasions of laws limiting the amount of property to be devised or inherited, by conveyance during life, could be prohibited in like manner as conveyances in fraud of creditors are now prohibited.

IX.
DIRECT LEGISLATION.

THE INITIATIVE AND REFERENDUM.

“No people can be self-governing who are denied the right to
vote ‘yes’ or ‘no’ on every law by which they are to be
governed.”—ELTWEED POMEROY.

THE _Initiative_ gives the people the power to compel the legislature to put in form all such laws as they may initiate or demand by a preliminary vote.

_The Referendum_ gives the people the power to reject or ratify any legislation enacted by the legislature. All legislative enactments to be referred to the people for their ratification by vote before they become laws.

_The Imperative Mandate_ gives the people the right to vote out of office at any time men who fail to serve the public or who are untrue to their pledges.

_Proportional Representation_ secures the representation of all parties in proportion to their numerical strength.

_Representative Government_ means government by representatives elected by the people, but independent of the people after election and empowered to ignore or overrule the people’s will.

_Popular Government_, or democracy, means government of, for and by the people. It will be possible only when all officeholders are honest or when the people’s representatives are made subject to the people’s will by the adoption of the referendum. History proves that permanent popular government without direct legislation is impossible.

There is a radical difference between a democracy and a representative government. Whenever a people are qualified for self-government no power on earth can prevent them from exercising that right. The American people have been too busy “making money” to study their real economic needs, and the result is that irresponsible demagogues have made laws which have plunged the nation into almost hopeless debt, paralyzed its business and impoverished most of the people. The voters have several times of late risen in their wrath and “turned the rascals out,” but it was only to elect another set of rascals, of different political complexion, perhaps, but equally dishonest and equally irresponsible. The so-called “landslides” in recent elections, while they have resulted in no real reform, indicate that the people have begun to think. Soon they will realize that they can control their own government only by keeping the legislation in their own hands—that they must not delegate their sovereignty to representatives or servants, by whatever name they may be known. It is only by means of the _initiative_ and the _referendum_ that the people can maintain their supremacy. The general adoption of this system is the next step in the world’s progress.

The initiative and referendum will take the element of partisanship out of the settlement of economic questions, and this alone is sufficient reason why it should be adopted. Suppose the question of tariff were submitted to the people to vote on. Members of all parties would vote for it and against it, and the majority would decide. It would become a question of economics, not a partisan issue, and would be settled on its merits. The same with the free coinage of silver, paper money, public ownership of railroads, prohibition, and every other great question which the old political parties have straddled or evaded.

But the principal advantage of the referendum is that it would do away entirely with the lobby—“the third house.” There would be no inducement for any one to bribe the lawmakers. They might sell their individual votes, but these would be worthless, as only the people could “deliver the goods.” The people would be quick to see the value of the franchises and privileges which are now being practically given away, to be used by corporations to still further enslave the masses.

Switzerland is the home of the referendum. It is commonly believed that that republic has existed for six hundred years. The fact, however, is that it is the youngest of republics. The characteristic features of the government, those which make it a republic in fact as well as in name, were instituted by the present generation. It is the only country in the world to-day which has overthrown its plutocracy and which has made it impossible for corrupt politicians to rule the people through the representative system. To the principle of direct legislation, as carried out by the initiative and referendum must be ascribed the happy conditions which surround its politics. Mr. W. D. McCrackan, author of “The Rise of the Swiss Republic,” who has made a special study of the subject, has published in the _Arena_ his observations of Swiss politics. He finds that, as a result of the referendum, jobbery and extravagance are unknown, and that politics, as there is no money in it, has ceased to be a trade. Officeholders are taken from the ranks of citizenship and are invariably chosen because of their fitness for the work. The people take an intelligent interest in the legislation, local and federal, and are fully imbued with a sense of their political responsibilities. The _Westminster Review_, speaking of the referendum, expresses this opinion:

“The bulk of the people move more slowly than their representatives, are more cautious in adopting new and trying legislative experiments and have a tendency to reject propositions submitted to them for the first time.... The issue which is presented to the sovereign people is invariably and necessarily reduced to its simplest expression and so placed before them as to be capable of an affirmative or negative answer. In practice, therefore, the discussion of details is left to the representative assemblies, while the public express approval or disapproval of the general principle or policy embraced in the proposed measure. Public attention being confined to the issue, leaders are nothing. Collective wisdom judges of merits.”

In some of the cantons of Switzerland the referendum has been in practice since the sixteenth century. As it is now employed it was adopted by the canton of St. Gallen in 1830, and in 1848 it was incorporated in the Swiss federal constitution. It has been so extended since then that it is now in operation in all the Swiss cantons except Freiburg.

According to the Swiss constitution all amendments thereto must be ratified by the Swiss electors before they become effective. Other measures, like ordinary enactments, must be submitted to a popular vote if a demand is made for such submission, written ninety days after their publication. This demand must be made by 30,000 voters or by the government of eight of the nineteen entire and six half cantons. In Switzerland the referendum has proved to be entirely satisfactory as a check upon hasty or class legislation.

In his valuable book, “Direct Legislation,” J. W. Sullivan thus recounts what the Swiss have done by direct legislation:

“They have made it easy at any time to alter their cantonal or federal constitutions—that is, to change, even radically, the organization of society, the social contract, and thus to permit a peaceful revolution at the will of the majority. They have as well cleared from the way of majority rule every obstacle—privilege of ruler, fetter of ancient law, power of legislator. They have simplified the structure of government, held their officials as servants, rendered bureaucracy impossible, converted their representatives to simple committeemen, and shown the parliamentary system not essential to law-making. They have written their laws in language so plain that a layman may be judge in the highest court. They have forestalled monopolies, improved and reduced taxation, avoided incurring heavy public debts, and made a better distribution of their land than any other European country. They have practically given home rule in local affairs to every community. They have calmed disturbing political elements; the press is purified, the politician disarmed, the civil service well regulated. Hurtful partisanship is passing away. Since the people as a whole will never willingly surrender their sovereignty, reactionary movement is possible only in case the nation should go backward. But the way is open forward. Social ideals may be realized in act and institution. Even now the liberty-loving Swiss citizen can discern in the future a freedom in which every individual—independent, possessed of rights in nature’s resources and in command of the fruits of his toil—may, at his will, on the sole condition that he respect the like aim of other men, pursue his happiness.”

Proportional Representation.

The term proportional representation has come to be generally applied to a method of electing representatives whereby the representation shall be in proportion to the votes polled by the several parties, or groups of voters, as against the present method of electing them from single districts by a plurality vote. To effect this end numerous plans have been put forth.

The _cumulative vote_ allows the voter as many votes as there are representatives to be elected and permits him to distribute them as he pleases among the candidates. This method is applied in a limited degree to the choice of members of the lower house of the Illinois legislature. Each district elects three members, and the voter can cast three votes for one candidate, one and a half votes for two, or one vote each for three.

With the _limited or restricted vote_ the voter has a less number of votes than the number of representatives to be elected. Thus in the city of Boston the new law allows the voter to vote for only seven aldermen on one ticket, and declares the twelve candidates receiving the highest vote elected.

The _preferential_, or, as it is commonly known, _the Hare vote_, allows the voter to cast one ballot upon which he has named as many candidates as he sees fit, the candidates named being understood to represent the first, second, third, etc., choice. The whole number of ballots cast is divided by the number of representatives to be chosen, and the quotient is the quota, or number of votes required to elect one candidate. In counting the ballots the first choices are read first; the candidate who receives a quota is declared elected, and the remaining votes cast for him are counted for the next name on the ballot who is the second choice of the voter.

The _free list, or Swiss vote_, allows the voter to vote for a list or ticket, as we do in this country, and to designate preferences on the list. The total vote is divided as in the Hare system to get the quota, and the several parties are apportioned representatives according to the number of quotas they have. The successful candidates are those standing highest on their respective lists. This method is now in use in Switzerland for the election of representatives.

The _Gove system_ is a modified form of the Hare method. Instead of the voter naming the candidates whom he prefers, the candidates themselves before election announce to whom they will give their surplus vote.

The _proxy vote_ is simply an introduction of the corporation vote into legislative bodies. The candidates who are elected in the legislative assembly cast, not their individual votes, as at present, but the number of proxies they hold.

It will be seen that there are three principles involved in these several methods, the election by cumulation of votes, the election by quotas, and the vote by proxies. The cumulative vote was the first to be put into actual service, being used in England for the election of members of school boards, etc., and in this country in the so-called three-cornered districts for the election of members of the legislature. It still has the support of quite a number of persons, but its limitations are now coming to be recognized. John Stuart Mill, who was an advocate of the cumulative vote, declared it to be merely a makeshift in comparison with the quota system of Hare. The objection to the cumulative vote lies in the fact that if the districts are small only two parties can obtain representation, and these in an arbitrary way, while if the districts be larger, that is, if the number of representatives in the district be made greater, the waste and uncertainty is apparent. A party may decide to vote for four candidates when it has votes enough to elect six; or it may try for six when it has votes for only four. In either case it is deprived of a part of its just share in the representation. The proxy system contains some theoretical merits, but it is feared that in practice it would not work well at present. The tendency to hero-worship would prompt so many voters to give their proxies to a few favorites that the real voting strength of the assembly would be in the hands of two or three men, thus destroying its value as a deliberative body.

The real strength of proportional representation lies in some form of the quota principle, and the tendency in this country, as in Switzerland and Belgium, is toward the free list.

------------------------------------------------------------------------

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IT is an easy matter to “float with the tide,” but it takes courage, ability and unceasing industry to pull against the stream. In these degenerate times, when the book-stands and the publishing-houses are jammed with a class of literature that can only be characterized as abominable “rot,” it is refreshing to find one man who has the courage to publish reform works. The man thus alluded to is F. J. Schulte, of the Schulte Publishing Company, Chicago. At the risk of being ostracised by the aristocrats of the business world (for there is an aristocracy in business as well as in society) he has made a specialty of publishing what are known as reform works. Contrary, however, to the general rule in such cases, Mr. Schulte has made a remarkable success of his business venture. He has published some of the best-selling books ever put upon the market. We congratulate him and congratulate the reform movement on his good work, and hope it will continue.—S. F. NORTON (1891).

=Any book on this list will be sent postpaid, or delivered by our representatives, to any address on receipt of price.... Special discounts in quantities to Agents, Speakers, Campaign Committees and Reform Workers generally....=

=THE SCHULTE PUBLISHING COMPANY
323-325 Dearborn Street= =CHICAGO=

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Transcriber’s Note

Errors deemed most likely to be the printer’s have been corrected, and are noted here. Inconsistencies in the punctuation in the list of illustration captions have been resolved, without any annotation here. In that sequentially numbered list, number 126 had been misprinted as 216, and has been corrected.

On p. 368, the paragraph derived from _William Jocob_ refers to _William Jacob’s_ _An historical inquiry into the production and consumption of precious metals, Vol. I._, 1831. The statistics given are extracted from multiple pages, which makes the mis-matched closing quotation mark misleading at best.

Lapses in punctuation in the advertising pages have also been silently addressed.

Hyphenation is not always consistent. Where the hyphen appeared at the end of a line, it was retained or removed based on the usage elsewhere in the text.

The references are to the page and line in the original. The following issues should be noted, along with the resolutions.

66.20 In this he dident do his dooty[,/.] Replaced.

75.30 Tur[n]in to the lot of high-toned cattle Inserted.

86.22 “Why, Jobe,” says[,] I, Added.

118.17 and as a differe[u/n]ce of $400 Transposed.

288.7 Since the world-wide demonetization of Inserted.
silver[,] gold only

294.1 gold and silver are ho[a]rded or exported Inserted.

309.5 which resulted in clearing Massachu[s]etts of Inserted.
debt

313.2 so [plenty] here. _sic_
plentiful?

320.25 or duties on imports, supp[p]osing that Removed.

324.32 The Dem[o]crats Added.

325.18 _The Act of December 17, 1860 (Statutes Wrong
[11/12])_ volume.

330.36 whose motto was[./,] “Act in the living Replaced.
present.”

331.32 the amount of indem[n]ity due Germany Inserted.

342.26 such money to[ to] be kept Removed.

346.4 when c[a/o]mpared with gold Replaced.

348.16 put public obligatio[n/u]s into stocks Inverted.

348.23 is villainy unnamed and unnam[e]able. Inserted.

349.24 s[i/u]bmit to the gold standard Replaced.

357.7 and of Threadneedle St[r]eet in London Inserted.

368.8 _William J[o/a]cob, F. R. S._ Replaced.

384.28 1[9/8]90 to more than all the assessed value Replaced.

396.32 manner i[u/n] which the business Replaced.

397.5 according to the chara[c]ter Inserted.

397.30 when nece[c/s]sary for the public good Replaced.

497.33 count[r]y>, as in Switzerland and Belgium, Inserted.