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Page 29
Of course when population increases, the town meeting becomes a physical
impossibility. There is no more direct legislation; it has to be
delegated. The power is transferred to the city councils, and to the state
and national legislatures. In other words, the interests of the owners of
wealth are put in charge of trustees. According to Hamilton, the theory of
our government is that the people will "naturally" choose the wisest of
their number to represent them. There is not much basis for this
assumption. Rousseau scouted it. According to him, the _volont� g�n�rale_
could be ascertained only in the town meeting, and he seriously maintained
that the ideal government for the Roman empire was by the gangs of rioters
that the politicians marshalled in the Forum at Rome under the name of
_comitia_. All that the theory of our government requires, is that our
rulers shall be such men as are designated by the majority of the voters.
That they should be wise and good men may accord with the theory of
aristocracy; it is no part of the theory of democracy, and is certainly a
very small part of the practice.
When I say that half of the property of this country is disfranchised, I
mean that the nature of this property is such that it is peculiarly
subject to the power of rulers, and that the owners of it have hardly any
legitimate way of defending it against the arbitrary exercise of this
power. The corporation is created by the legislature; men cannot combine
their capitals and avoid unlimited liability for the debts of the
combination, unless the law specifically authorizes the proceeding. Of
course, if the legislature has power to make such grants, it must have
power to alter them. In short, property held by a corporation is held at
the will of the legislature, and in a way and to an extent that property
held by an individual is not. It is not very easy for the legislature to
plunder or blackmail individuals, even when they are disfranchised,
because it has to be done by general laws, and direct methods arouse
direct opposition. But, as we have seen, stockholders as a class cannot
defend their rights, and as things are now, their trustees cannot have
much to say concerning the laws that affect their property. Managers of
large corporations are now commonly denounced as unfit to be legislators,
and are practically excluded from the halls of legislation. In some states
they are even specifically disfranchised, so far as holding office is
concerned, and, under the new despotism, ironically dubbed the new
freedom, every man whose wealth and ability make his aid important to many
enterprises, is to be forbidden to participate in more than one. Yet
property is almost entirely subject to the disposition of the legislature!
not entirely, for the courts afford some protection; but even this is now
threatened: we may "progress" so far as to make it unconstitutional for a
judge to declare any law unconstitutional.
It goes without saying that half the property of the country will not
submit to spoliation without a struggle. If it cannot have representation
legitimately, it will try to get it illegitimately or extra legitimately.
The managers of corporations have in the past found many ways to influence
legislation. Despite the prejudices against them, some of them have had
themselves chosen as legislators; even as judges. Some have brought about
the election of legislators who would act in their favor, and have even
bribed legislators. Until recently it was not even unlawful for these
managers to use the money of their stockholders in political
contributions; some managers acted on the "Good Lord! Good Devil!"
principle. Probably most of the politicians paid no railroad fares. Many
of them got passes for their families and their friends; and it was
certainly to be expected that they should listen to the requests of those
who granted these favors. The situation became grotesque when a great
ruler, seeking a nomination to office with the proclaimed purpose of
enforcing the laws against rebates and passes, required the railroad
managers to furnish him free transportation on his righteous mission.
There were obvious objections to these practices, and public opinion
finally compelled our rulers to pass laws prohibiting them. Theoretically
the managers of corporations are now effectually disfranchised. They dare
not offer themselves as candidates for office. They scarcely dare to
favor, even secretly, the choice of rulers who will listen to them.
Fortunately, however, they hardly longer dare to offer bribes. Anyone on
friendly terms with them is politically a suspicious character. Any lawyer
who has been employed by them becomes unavailable as a candidate for
office. Our legislators, as was to be expected, at once showed the effect
of release from restraint. It has been uncharitably said that in revenge
for the loss of their passes and other favors, they attacked the
railroads; but there has been considerable voting of more mileage, and our
congressmen at least voted themselves ample indemnity in larger salaries,
and they opened fire on corporations in general and railroads in
particular, with a broadside of statutes. Against this fire the property
of millions of small holders in the corporations has been almost
defenceless. Some of these statutes are so drawn that the plain business
man does not know whether he is a criminal or not; if he could afford to
consult the best of lawyers it would not help him much. The only safe
course to pursue is to agree with the adversary quickly; to plead guilty
to whatever charge is made, and beg for mercy. That one is innocent is
immaterial. The expense of litigation is nothing to the rulers of the
United States; but it may be ruinous to their subjects. The cost of the
commissions and investigations and prosecutions of the last few years has
been enormous. Only lawyers can contemplate it without consternation.
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