← Table of ContentsFifty years in Wall Street

part in the plan of nature.

The Socialist is usually an unfortunate or misled individual. He has

probably suffered from reverses or unfortunate environment. He has

perhaps been roughly or cruelly handled. Perhaps he cannot get on

satisfactorily, or his ambitions have been disappointed. He is then in a

condition of discontent ready to swallow Socialistic—or any

other—sophistries which hold out the delusive promise of relief.

Socialism attaches too little importance to the fact that men are made

with an infinite variety of tastes, abilities, and capacities. No two

are precisely alike, and it is utter folly for poor, weak man to

undertake to equalize these differences. All progress in history has

been made through struggle and sacrifice; and Socialism, no matter how

beneficent its intentions, cannot change the inscrutable laws of nature

or humanity. All natural laws have their reverse side. Gravitation,

which keeps us firm on our feet so long as we are on solid ground,

knocks us to pieces if we attempt to walk off a housetop or over the

opening of a pit. It is not the natural law, but the attempt to ignore

it, that gives us trouble.

I most emphatically assert that we cannot get rid of competition, any

more than we can get rid of the law of gravitation.

The American inventor, mechanic, farmer, merchant, and financier, and

the worker in every profession, are, every one of them, proud,

respectively, of their skill, knowledge, and ability. Their ambition is

to excel—to produce the most and best. Experience, enterprise, and

courage create opportune conditions most favorable to the State and

Nation and to themselves. Each vies with his fellow man in producing the

best results, and is always willing to tackle any obstacle—no matter how

formidable—that stands in the way of success. In his whole compendium

and entire makeup, there is no such word as fail. He aids, by his

untiring and individual energy and effort, in making his country the

greatest in the whole agricultural, industrial, and financial world. He

reaps the reward of industry and accomplishment, and his home is blessed

with bounty; and he knows that his children have equal opportunity with

himself to learn and to achieve.

Shall he be asked to tolerate, or consider, the sacrifice of all these

things, so dear to him, for Socialism?

Shall he be led to believe in a foreign plan or system of government

that degrades skill, eliminates acquisition and thrift, and ignores

genius? I cannot think so!

These are the very qualities and attributes that he prizes so highly, as

essential to the prosperity of the home and nation. He knows (or should

know) that to do so would be to deaden and relinquish those God-given

qualities of heart and brain that have helped to make him and his

country what they are to-day.

He knows (what the nations of the world concede) that the American

people are the most prosperous of all on the face of the globe; and that

this high and commanding position has been attained under existing

conditions, and through the operation of our admirable system of

government.

Whatever, therefore, may be the pretexts used to make him dissatisfied

with his lot, his own experience tells him every day that the

Constitution under which he lives is a glorious one, and so implanted in

the hearts of the American people as to be impregnable against the

assaults of Socialism.

At the same time, he is appreciative of the fact that it is not in the

nature of things to expect in this world blessings pure and unmixed; but

he is thankful for the superior good that he enjoys under our beneficent

democratic form of government.

A state of Socialism in the United States would tend to drive all our

men of superior ability, skill, and power out of the country. The strong

would quickly seek other fields where the qualities which they possess

would have a free chance and an open field. They would promptly desert a

country that offered nothing better than a dismal dead level, with no

means of achievement in sight, and the nation would quickly fall into a

state of miserable inertia or decay. Our forefathers came to this

country to establish religious freedom; they next fought for political

freedom; afterwards they sacrificed a million lives for race freedom;

and now we, their successors, with such glorious traditions behind us,

must stand for industrial and social freedom. For, in the final

analysis, Socialism can stop at nothing short of industrial slavery and

political bondage. Great achievements would be impossible under it.

Having shown the force and importance of individual initiative and

independence and the necessity for the spur of competition to bring

about the best results in human welfare and achievement, I now turn to

the rather concrete branch of the subject, known as Municipal Ownership.

Naturally, a proposition involving the placing of the ownership and

operation of our railroads, telegraph lines, plants for supplying light

and surface transportation, and conducting manufactories and business,

is one of such vital concern to all of us as to arouse our keenest

interest.

It is a part and parcel of the Socialistic plan of government, and, to a

very great extent, the arguments and illustrations presented in my

treatment of Socialism, generally, are of direct application to

Municipal Ownership.

I would term it the entering wedge of Socialism, adroitly resorted to by

its advocates. These Socialists well know the temper of the American

people toward their propaganda and wild project, and at the same time

they recognize the peculiar trait of character disclosed by Americans in

their curiosity and liking for anything new. Hence, they grossly

exaggerate the shortcomings and ills that exist in our body politic as

constituted; and, at the same time, extol, in an extravagant manner, the

superior conditions that would follow the taking of a small portion of

the Socialist’s infallible cure.

Municipal Ownership, as far as I have been able to observe, is also a

pure and simple political move to secure votes for aspirants for office,

and it is used for this purpose, regardless of any other question. It is

one of those planks that we often see inserted by parties in their

platform, to stand upon, to attract and gather in the votes. So

Socialism has its uses—for them.

I will admit that there are many economists who have presented a

friendly side to the Socialistic theories involved, and have prepared

able and extended articles in their endeavor to support or uphold such

theories (either in whole or in part); and it would be unjust to include

them in the same category with politicians and Socialists. However, if

that statesman was only half right who, in speaking of the tariff, said

that the question was a business one, and that a condition and not a

theory confronted us, then I feel that I am right in saying that “Public

Ownership” is a practical business question entirely—and not a

theoretical one.

There are so many logical and unanswerable reasons against this

Socialistic proposition that I feel it incumbent upon me to enlarge only

upon the practical ones, that I know more about, than upon those of the

theoretical group.

The experience of years has demonstrated that at the present time all

business enterprises require rare ability and experience, if not genius,

to ensure success.

Great financiers and successful men have devoted their lives to the

study and practice of their trade and business.

How is it possible, then, for municipalities to expect such

qualifications from officers whose term of office is for one or two

years, or during the tenure in office of a political party?

[Illustration:

From stereograph. Copyright, 1907, by Underwood & Underwood, N. Y.

THOMAS F. RYAN.

]

In the economy of commerce and its daily conduct and operation, there

are numerous divisions or departments, each one of which can only be

understood, appreciated, and conducted by men of special training and

fitness—who have given years of application thereto—and it is only by

their watchful care and expert management of each of these divisions

that a possible success is derived or business made to pay.

The smallest neglect, the merest indifference to details, or the

inattention that always accompanies abstraction by something else—taking

one’s mind off his business—upsets the whole system, and means waste

instead of saving economy, loss in place of profit, and inevitable

failure as the result. That this is true there is not the slightest

doubt, and would be readily confirmed by the leaders of every industry.

Animated by a desire to make the best possible showing, for use at the

next election, a false economy would be exercised under Municipal

Ownership, and no attention would be paid to obtaining useful new

inventions; and needed improvements and extensions would, likewise, be

ignored.

On the other hand, under private ownership, the best professional talent

is employed, at salaries unheard of in public office; and all the latest

inventions and improvements are at once utilized, giving the public

up-to-date service.

The active, modern business man, keenly alive to the requirements

necessary to ensure profit and success, perceives at a glance the evils

and mischievous results that would infect everything carried on under

this Socialistic plan. And as John Stuart Mill well says: “The mischief

begins when, instead of calling forth the activity of individuals, the

municipality substitutes its own activity for theirs.”

No serious attempt has ever been made to show the possibility of

securing and retaining, under some rule of municipal civil service, or

otherwise, the best men to assume the burden of management and

responsibility. As already explained, it would be practically impossible

to secure the best men, and no system of civil service has yet been

formulated, intended and able to provide for their retention.

In this connection, a fitting illustration is the case of Colonel

Waring, who instituted and maintained the best street-cleaning system we

have ever seen. His work was simply marvelous, and he made New York City

a model of cleanliness.

No one ever questioned his ability or integrity; yet, while at the very

zenith of his success, he was asked to resign, and obliged to leave the

city employment to make room for the choice of a new city

administration.

The defects and fallacies of Municipal Ownership which I have described

permeate all government ownership. Official reports and statistics

furnish convincing proofs and conclusive evidence of the failure of this

system as conducted abroad, and more signal loss and damage—in an

incalculable degree—would surely follow its adoption here. Just in

proportion as our interests and enterprises are the greatest and most

successful, as compared with other nations, would be the immensity of

our depreciation and collapse.

The United States is so different from other nations in its political

system that this fact alone precludes serious consideration of our

adoption of this imported Socialistic hobby and political heresy. It is

also a country whose every chapter of growth, progress, and prosperity

is a continuous narrative of individual efforts of its citizens. They,

naturally, prize individuality as they do independence itself, and have

every reason to believe that the present system of government is the

best for them, and that this land of Individualism is no place for

Socialism.

Imagine New York under Municipal Ownership of our public utilities! We

should then have fastened upon us a more colossal and more corrupt

Tammany than even existed in Tweed’s times. Graft would thrive beyond

all dreams of avarice. Let us take a lesson from England in this

respect, where public ownership has been tried on a larger scale and

under more favorable conditions than elsewhere. In a few instances the

running of street railways or city lighting plants has been successful,

but exceptions do not always prove the rule, and the conditions under

which these enterprises have been operated there must be taken into

consideration. English cities are comparatively free of political

corruption, and are, moreover, often served by men of high character,

wealth, and ability—men having a strong sense of civic duty, who deem it

an honor to give their community efficient service. Unfortunately, we

have not yet developed a class of this sort in the United States;

perhaps in due time we shall; but, until then, the experiment of

Municipal Ownership had better be indefinitely postponed. A weak point

of Municipal Ownership has usually been the financial end of the

business concerning which the public has been poorly informed. Many of

these enterprises in English cities have proved unprofitable. The

accounts have been juggled, and expenses that should be charged against

the plant were often transferred to city accounts. Not a few of the

English cities have so run into debt as to injure their credit and

impair the sale of their securities. Already, the British taxpayer is

beginning to complain about the costliness of these Municipal Ownership

schemes, and a decided reaction against them is setting in. The London

County Council has launched heavily into these ventures, many of which

have proved losing ventures, and some prominent experts have gone so far

as to predict that London will be bankrupt before long, unless present

tendencies are reversed. If Municipal Ownership has failed under the

highly favorable conditions which exist in England, how can it succeed

here? Again, the English telegraph system operated by the British

Government does not compare with the private systems of the United

States, either in efficiency or cheapness, and England with its public

telephones is very far behind the United States in efficiency and cost.

London does not begin to have the number of telephones per capita that

New York can claim. American railroads under private ownership perform

the best and cheapest service in the world.

If any further argument were needed to convince you that the United

States is no place for Socialism, its root or branches, it may be found

in the radical and quite amusing change of front shown by Major

Dalrymple, of Glasgow, upon the occasion of his visit to this country.

He came here at the request of Major Dunne, of Chicago, and the

Municipal Ownership League of New York, to aid the forces of Socialism

in their efforts in behalf of Municipal Ownership. He was the great

Apostle of that doctrine in Glasgow, and the very man, in their opinion,

to convert our people to that system.

Upon his arrival here, he was greeted with great éclat by the League of

this city, and gave out an interview in which he spoke as follows:

“I see no reason why any city in this country should not be able to own

its street railways, and to run them with as much success as we have

achieved at Glasgow. I admit that the proposition is a much larger one

than the one we had to tackle, but at the bottom it is the same.”

This was before he knew our country and its institutions. After an

extended stay here, he prepared for his homeward journey, but before

sailing, he was again interviewed, and to the surprise and discomfiture

of the Socialists, he retracted all that he had said before in favor of

Municipal Ownership, in the following language:

“To put street railways, gasworks, telephone companies, etc., under

Municipal Ownership would be to create a political machine in every

large city that would be simply impregnable. These political machines

are already strong enough, with their control of policemen, firemen, and

other office holders.

“If, in addition to this, they could control the thousands of men

employed in the great public utility corporations, the political

machines would have a power that could not be overthrown. I came to this

country a believer in public ownership. What I have seen here, and I

have studied the situation carefully, makes me realize that private

ownership, under proper conditions, is far better for the citizens of

American cities.”

[Illustration:

From stereograph. Copyright, 1906, by Underwood & Underwood, N. Y.

JOHN W. GATES.

]

The New York papers aptly called this “The conversion of the Scot”; and

this blunt and honest admission coming from their own authority, that

Municipal Ownership in this country was wholly impracticable, stunned

and paralyzed its agitators, and caused many of its adherents to leave

the ranks of Socialism.

Mr. James Bryce, the worthy newly appointed English Ambassador to this

country, pointed out some twenty years ago, in his “American

Commonwealth,” how the then future of the United States sometimes

presented itself to the mind as a struggle between two forces—the one

beneficent, the other malign; the one striving to speed the nation to a

port of safety before the storm arrives, the other to retard its

progress, so that the tempest may be upon it before the port is reached.

He further expressed concern as to whether the progress then discernible

toward a wiser public opinion and a higher standard of public life would

succeed in bringing the mass of the people up to a high level, or

whether the masses would yield to the temptation to abuse their power

and seek violent and vain and useless remedies—like Socialism—for the

evils which would affect us.

This able statesman predicted that the question would be decided early

in the present century, and would be evidenced by the condition of

progress and prosperity brought about by the people in the meantime.

When the Ambassador was recently welcomed to our shores, the answer to

this question concerning us, asked by him so long ago, was found

awaiting him.

It was spoken clearly and loudly by our teeming products of agriculture

and mining, and echoed in thunder tones by our mammoth shops and

factories of industry, and it was seen shining in the happy faces of our

busy and prosperous people.

Upon the golden page of to-day in our splendid history will stand out

the assuring fact that this surpassingly successful state of things has

not blossomed and come forth under the blighting shade of the deadly

Upas tree of Socialism, but that it has all been developed by and

through Individualism.

In conclusion, let me impress upon you that Individualism in the United

States has stood all tests—especially the crucial tests of time and

experience—and it points with pride and satisfaction to the great

developments secured for the American people under the bright and

beneficent rays of our admirable Constitution and Republican form of

government.

And if the aim of all government is to ensure prosperity to the country,

and happiness to the people it controls, the unrivaled excellence of

Individualism may fairly be judged by its magnificent results.

* * * * *

Edwin Markham, Esq., the Author and Poet, being agreed upon by both

parties to the debate, presided at the meeting.

At the close of the above address the chairman addressed the 5,000

assemblage as follows:

“LADIES AND GENTLEMEN: I hope you have enjoyed listening to Mr.

Clews’s very able address as much as I have. He swept the entire

horizon and has left nothing more to be said on his side.”

Mr. Markham then introduced Professor Kirkpatrick, to combat Mr. Clews’s

arguments.

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