-SI *IHBE *ES GEORGE CAMPBELL ■ON- PROGRESSIVE GOVERNMENT REDUCED TO QUESTIONS and ANSWERS Ik Dedicated to the THINKING MEN and WOMEN OF AMERICA Copyright 1911 By GEORGE CAMPBELL Coffeyville, Kansas PUBLISHED BY FANCHER PRINTING CO. a? V ©CI.A295034 o ^"V WHY ARE THERE SO MANY SUICIDES IN AMERICA, ESPECIALLY AMONG THE YOUNG MEN AND YOUNG WOMEN, AGGREGATING IN THE LAST YEAR FIVE THOUSAND EIGHT HUN- DRED FORTY PERSONS, AS COMPILED FROM THE STATISTICS? There are several causes that contribute to this self destruction of human life, but perhaps the one overshadowing cause is poverty. In America, the indi- vidual that takes his or her life, as a rule is educated. He sees other people enjoying the comforts of life, which education and refinement makes necessary to his very existence, and he cannot procure them, and there seems to be no future prospect of bettering his condition or being able to establish a home with com- fortable surroundings; the past to him is an unpleas- ant memory, and the future gives him no hope of reward; he becomes discouraged and disheartened and comes to the conclusion that life is not worth the living, and ends his existence by taking his own life. With the general diffusion of knowledge among the people, as is the case in the United States, there comes a higher standard of living and additional wants are created that must be supplied, in order to secure happi- ness and contentment to the people; and changes are necessary in government to meet these conditions, and the adjustments of our government to these changes made necessary by our advancing civilization, calls for a high standard of statesmanship on the part of the lawmakers and law enforcers of our land. Man in a savage state, has but few wants and these are easily supplied and he is contented; but as he be- comes more civilized and enlightened, his wants are multiplied many fold ; and if his environments are such that he cannot supply them, he becomes morose, dis- couraged and disheartened, for he deems himself en- PROGRESSIVE GOVERNMENT titled to enjoy these additional comforts, which he sees others enjoy no more worthy than himself, and if he is deprived of them, he sinks gradually into despond- ency and gloom without hope for the future, and his career often terminates in suicide or crime, as a relief from his troubles. He feels that all the avenues to a higher life have been closed against him, and that his struggles to better his condition are unavailing, and that he is an outcast from society without hope, home or friends; a stranger as it were, in the land of his birth; and such are the fruits of poverty to an edu- cated person. WHY CANNOT THE INDUSTRIOUS YOUNG MAN OR YOUNG WOMAN SECURE THESE ADDI- TIONAL COMFORTS OF LIFE, INCIDENT TO AN ADVANCING CIVILIZATION, WITH A REASON- ABLE AMOUNT OF EFFORT ON HIS OR HER PART; FOR AS A MATTER OF FACT, DOES NOT THE WEALTH OF A COUNTRY KEEP PACE WITH THE ADVANCING CIVILIZATION, AND ENLIGHTENMENT OF THE PEOPLE? It is true, the wealth of a nation generally keeps pace with the progress of the people," and if conditions were right and equitable, these additional wants of the people, made necessary by an advancing civilization, could easily be supplied; but unfortunately, for the people, while great progress has been made upon all industrial lines and new scientific principles and meth- ods have been devised and applied to all industrial pur- suits to a degree, that has revolutionized the business of the world in the last quarter of a century, yet, very little or no progress has been made in the science of government, the most important of all sciences to the general public, and we have in the main, the same BY OIvORGE CAMPBELL governmental policies and methods now, that prevailed in Rome, more than two thousand years ago; and as these methods and policies of government destroyed the Roman empire in all her splendor, and brought on the night of the dark age, so the present American methods and policies, if persisted in, will bring a blight to our civilization, which will be followed by another night of a dark age, just as true as "Like causes bring like effects." The original idea of the functions of government, was that of merely police duty, and there was at first, only a criminal code, under which the officers of the law, were to preserve peace and order among the peo- ple and prevent one individual from disturbing the peace of another; and, if one individual in violation of this code, killed, wounded, assaulted or beat another, except in self-defense, he was severely punished or put to death, according to the heinousness of the crime. At this early period in the evolution of government, there were no property rights to adjust between indi- viduals, as all property was held in common; but it was found to be to the best interests of society, to recognize the property right of the individual, to the extent of what he produced, and this was finally done, and the recognition of this right, gave a great stimu- lus to individual exertion, and the law had to be ex- tended in a manner to protect these newly acquired property rights ; and a civil code of laws were formu- lated and adopted, that enabled the individuals to ad- judicate their disputes over property interests, by a properly organized court ; and with this change in the jurisprudence of the country, in the adoption of both a criminal and civil code, the procedure has come down to us through the centuries with but few changes, and little study has been given to fundamental law since this formative period, with a view to improving the science of government, so as to meet the wants of th% PROGRESSIVE GOVERNMENT people, made necessary by changing conditions, in the business affairs of the world; and while the govern- ment of the United States is more progressive than many of the European governments, it is wholly inade- quate to meet present conditions, in the onward pro- gress of the people; and the policies and methods as they now exist, operate in a large degree against the masses of the people, and millionaires by the exercise of special privileges to tax the people, are multiplying at a rate never before known in the history of the world; and the small independent dealers of the past, are daily becoming fewer, as they are driven out of business by the powers of the trusts, and are forced to become employes of corporations, 'and work for a salary; and the natural man is thus rapidly becoming the servant of the artificial person, created by law, and known as a "corporation." Is it a wonder, that suicides and divorces multiply in a land where these conditions exists? The wage system in some respects, is worse than was chattel slavery prior to the war of the Rebellion. I have a distinct recollection that the slave owner took a certain pride in the number and quality of his slaves ; and as a rule, he wanted them well fed and well cared for; and if one became sick, the best medical services were ordered, for the money value of the slave was of interest to the owner, if nothing else, and he did not want them to die or remain sick if it were possible to avoid it ; and besides, there was as a rule, a sympathetic feeling between master and slave, that insured to the slave, kind treatment, which disappeared under the wage system. Under present conditions, in the congested factory centers, the white and the colored employes, work under overseers the same as did the colored slave prior to the war of the Rebellion, and each works for a wage, not sufficient in many instances, to sustain the worker BY GEORGE CAMPBELL in a manner suited to American citizenship; and in case the worker becomes sick and cannot work, his em- ployer fills his place with some other person, and the incident of the sickness of the wage earner is dismissed from the mind of his employer, as he has no interest in him, further than his labor; and the unfortunate worker in many instances, is not able to provide the necessary medicine and medical service, and is often neglected, and sometimes dies from mere neglect ; but his late employer is not concerned, as there is no money interests involved, and he does not care, for wage ser- vants are numerous, and are becoming more plentiful day by day, as the great middle class of the people fail in business, and take their places among the wage servants, and work for a corporation, for the wages necessary to sustain life and maintain a home, if he is fortunate enough to possess one. BUT, DO NOT THE YOUNG MEN AND WOMEN OF AMERICA, GET BETTER WAGES NOW THAN EVER BEFORE KNOWN IN THE HISTORY OF THE WORLD? Possibly so, but this does not appear from the evi- dence taken in the strike of the girls of New York City, in the shirtwaist factory. The strike was inaugur- ated by reason of low wages, and unsanitary and dan- gerous conditions prevailing in the factory; and that the strike was justifiable is proven by the fact, that the factory was recently destroyed by fire, and about 125 of the girls perished in the flames. I have before me, a statement of one of the factory girls, seventeen years old, as to how she lived. She paid for lodging, six cents per night, in a dormitory of a charitably supported home for girls; she ate no PROGRKSSIYK GOVKRXMKNT breakfast, could not afford it, and her lunch at noon consisted of coffee and rolls, for which she paid ten cents, and for dinner, she had coffee and rolls, and paid ten cents, and her laundry cost her twenty-one cents per week, aggregating the total expenses per week of $2.03; and % her weekly earnings averaged $2. 62 1/* leaving only 59 V2 cents per week, with which to clothe herself, pay street car fare, and purchase the necessary medicine in case of sickness. How could she do it? Will not such destitution lead to suicide and crime? Through the influence and assistance of Miss Bel- nap, Mrs. Gould, Vanderbilt and others, these girls won their strike, and much credit is due these women, and it proves that wealthy people are often kindhearted, and will assist the poor in a righteous cause, with their means and influence, that justice may be done. But whether labor is being well paid or otherwise, is not our purpose to discuss here, for that is not the question. We are confronted with the fact, that our people are fast becoming a nation of wage earners, de- pendent upon corporations for wages as the only means of support, and for the maintenance of a home, if they are fortunate enough to have one ; and the great middle class of our citizens are disappearing and the young men and women are being crowded into tene- ment houses, in congested industrial centers, surround- ed by the most squalid poverty, with the door of hope apparently barred against them, and the system is thus crushing out that strong, independent American man- hood and womanhood, the hope of the nation, and on which its perpetuity must depend ; and as the struggle for existence continues and becomes more intense, man- hood and womanhood will sink lower in like ratio, and it is time for the American people to arise and do their duty by changing conditions, so as to preserve the young men and women of America from further de- terioration. BY GEORGE CAMPBELL "Princes and lords may perish and may fade, A breath can make them as a breath hath made ; But a bold peasantry, a country's pride, When once destroyed, can never be supplied." "Ill fares the land, to hastening ills a prey, Where wealth accumulates, and men decay." That the wealth is accumulating in the hands of the few, at a rate never before known in all history, and that the high type of American manhood and woman- hood, is decaying in a like ratio, no one will question. The buying of the votes in Adams county, Ohio, where the records in the investigation show, that a majority of the voters of the county, sold their votes for money ; and in some precincts, nearly all the voters had thus sold their votes to politicians, so there were hardly men enough left, that were not disfranchised to fill the offices; and in the investigation of the election of Senator Lorimer of Illinois, it was proven, that sena- tors and members of the lower house of the Illinois legislature, were purchased for money, to vote for Lorimer for the United States Senate, and all these circumstances prove too clearly, the decline of American manhood ; and these are but samples, show- ing the decay of American manhood, as wealth accumu- lates in the hands of the few and is used to corrupt the voters, and thereby undermine the very foundation of civil government. The history of Adams county, Ohio, and the pur- chase of votes of the house and senate, in the interest of corporation measures, is to a greater or less degree, the history of many other counties, and many other commonwealths throughout the length and breadth of the nation, and the history of the Lorimer election to the United States senate is the history of the election of many other senators to that same body, and under such conditions it is but natural, that the senate of the United States should attempt to whitewash the election 10 PROGRESSIVE GOVERNMENT of Senator Lorimer, and should welcome him to a seat in that body. The Adams county disgrace, in the exercise of the elective franchise, and the Lorimer purchase of votes, in the Senate and House of the Illinois Legislature, would never have been known to the general public, had not the participants fallen out among themselves in the division of the spoil; but let us hope these de- velopments will not stop here, but that all those who are guilty of similar corruptions, in the elective fran- chise, will fall out, or, that they may have the man- hood to come forward and expose these crimes, in the interest of good government, for the corruption of the ballot in the hands of the common voter, or in the hands of the Legislators of the state or nation, is a blow at liberty itself, and if persisted in and not checked, must result in the overthrow of this republic. BUT HOW CAN THIS CORRUPTION OF THE BALLOT, AS MANIFESTED IN THE ADAMS COUNTY, OHIO, CASE, AND IN THE LORIMER ELECTION TO THE UNITED STATES SENATE, AND THE BRIBERY OF THE HOUSE AND SEN- ATE OF THE OHIO LEGISLATURE, IN THE SUPPORT OF CORPORATION MEASURES, BE CHECKED? I will admit this is a difficult proposition, yet, I think it can be accomplished, but it may require time. As conducive to this end, I would favor a compulsory educational law, for the education of the children, similar to the Kansas Statute, and make it apply to BY GEORGE CAMPBELL 11 every state in the Union. If a parent neglects the edu- cation of his child, the state should have sufficient in- terest in the child to see that it is properly educated, that it may have an equal chance to make its way in the world, so far as education is concerned with the other children, born under more favorable circum- stances. If the parent is too poor to feed, clothe and furnish books for his children, the state should do it; as is the case in Kansas, and if compulsory education is es- tablished, throughout the nation, the coming genera- tion will be better educated and will cast a more intel- ligent ballot, and we hope a more honest one, and the text-books used in our schools, ought to be changed so as to impress the youth, with the power and sacredness of the ballot, and how it should be used, and the care that should be exercised in casting it aright; and all officers, so far as practicable, ought to be elective even the United States senators and judges of the federal courts ; and there should be a provision of law, for the recall of all officers that are derelict in duty, and the initiative and referendum should be embodied in form of law, for the protection of the people, as was the case in Rome, prior to the time of Caesar. If we concede that by reason of the lack of intelli- gence on the part of the voter, or by reason of his dis- honesty, a large number of voters can be purchased, and that this is an objection to a further increase in the elective franchise, we will have to also admit that it is a more difficult matter, and will require more money to purchase the mass of the voters in an election, than to purchase the necessary members of the Legislature or, the power that appoints judges, where such pur- chase is possible, and all the arguments are therefore in favor of enlarging the elective franchise to include these officials. There is no good reason for exempting the Federal 12 PROGRESSIVE GOVERNMENT Judges from being elected by the people, nor from the recall measure ; for there is no other branch of govern- ment so imperious and dominating as is the Judiciary. Some of these judges will not allow their decisions to be criticised, under the penalty of being imprisoned for contempt of court, and will not allow the accused per- son a trial by jury. Surely judges should be elective and subject to recall. When we consider the importance of the elective franchise, it would seem, that only those should vote, who possess the necessary educational qualifications; for a ballot should be intelligently cast, for certain poli- cies, that in the judgment of the voter, are for the best interests of the people, and a person who can neither read nor write, or understand the policies of the party with which he is affiliated, is at a great disadvantage, as he cannot comprehend the importance and sacred- ness of the ballot, and it might be well to consider whether or not, an aducational qualification should be imposed. There is no excuse, however, for an American being unable to read and write, and I speak advisily upon this proposition, for the writer of this pamphlet, learned to read and write, after he was fourteen years old, and worked in a sawmill in the day time and studied four hours each night, under an instructor, that he paid from his own earnings, and if he can do this, others can. As contributing to the use of an intelligent ballot, I would enfranchise women to the same extent as men. As a rule, the women are more conscientious and hon- est than men ; and the statistics show that men put in responsible positions, about one out of every one hun- dred thirty-five go wrong; while women placed in re- sponsible position, only one out of every 1,050 go wrong and why not let them vote ; for we need their honesty and high character in our elections ; and in the western *avu{ jo uoisiAOJd v osps sba\ ajaq; puB 00'00S$ SuiA^d pun sq;uoui xis ;i uo £uia*b;s Aq pa;duia-ajd aq pjnoo auioq V 'jo i 00'^!$ ;noq^ o; pa;unouiB An^jauaS qoiqA\ 'sjadnd aq; SuiJ^dajd jo asuadxa aq; SmAvd Aq 's9;b;s P 8 l! u fl ax tt uioji a[;i; b ajnaojd 'sjnaA aAu ;i uo SuiA^;s Aq pun 'pui3[ ;uauiujaAoS uo pi3a;sauioq v a;i300[ pjnoo 'ubuioa\ SunoA* jo u^ui SunoA aq; 'oSv sji3aA A\aj y •auioq is uib;uibui pun qsqqi3;sa o; q;noA aq; aS^jnoa -ua o; 'Suiq;ou A[[i30i;oBJd Sutop si ;uauiujaAo£ aqj, 13WOH V 30 3DMVM3XMIVW ONV IM3WHSI13VIS3 3HI NI 'onvi nao 30 hxroa 3hx 30vunooN3 01 'DHIHIAMV DNIOQ IM3WN.33AOD 330 SI •auio^j pu^ aoaaj£) Aq payqd -maxa sb Ajo;siq si siqj, *uoi;bu aq; jo uoi;oru;sap aq; sauioo 'auioq aq; io uoi;oru;sap aq; q;iA\ pui? '. ;sa j jaAa -joi ;snut ;uauiujaAo3 a[qn;s 12 qoiqA\ uo siseq aq; puB 'A*;apos io JoqouB aq; si auioq aq;. joi 'uBoiiauiy ;uaS -q[a;ui AjaAa q;iA\ uoi;sanb ;unoureii3d aq; aq pjnoqs 'auioq aq; io uoi;oa;ojd pu^ ;uauiqsqqi2;sa aqj, •aarot s,jaq;oui Jiaq; ;b ;uauiujaAoS ut uossaj ;sju Jiaq; uj^aj pun 'sjaA^jd ;siu Jiaq; dsq {[iav puB 'uoi;i3u aq; jo sjib-UB aq; ;oaiip o; uoos aji3 uioqM io ja;;Bj aq; 'uajpnqa pin? ijasjaq ;oa;ojd AiaAi;aa-ua ajout aq; Aeui aqs ;^q; 'pasiqou^iiua aq pnioqs aqs 'auioq aq; io uoi;oa;ojd aq; joi si ;o^Bq aq; ii puB 'ao^j aq; io sjaq;oui aq; ajB Aaq; joi iuaui aq; aje u^q; auioq aq; ui pa;saia;ui ajoui ajB uauiOA\ aq; 'ui^Sy *suoi;aap jo uoi;BDuijnd aq; ui 'pooS qonui paqsqduioooB aA^q Aaq; pu^ 'Sui;BAa[a uaaq s^q ;aaj;a aq; 'pasiqou^jjua A*nni ajB uauiOAV aq; ajaqAV 'sa;i3;s ei iinadHvo ho^oho Aa 14 PROGRESSIVE GOVERNMENT by which a person could get title to a home, under the Desert Land act, or Timber Claim act ; but most of the available land suitable for homestead, is now taken, or given by the government to corporations, to aid in the construction of railways, etc., and at present, while the people have these homestead laws, the cor- porations have in the main, all the available land. The several railway companies, that constructed railways from the Missouri river to the Pacific coast, each received a right-of-way 400 feet wide, free of cost ; and in addition thereto, large donations of land, equalling 12,800 acres for every mile of railway con- constructed. These grants, extended twenty miles on each side of the railways and included every alternate section ; and the railway companies were given the privilege where the lands had been taken, and were owned by others, or, where the grants overlapped, to go outside and locate indemnity land, to the amount of their original grants from the government. When these western lands were ceded to the United States, by France and Mexico, there was a provision in the cession, that the government should recognize the grants that had been made by Spain, Mexico and France, to individuals and corporations ; and as a re- sult, these railways were constructed through many of these tracts of land, held under these foreign grants to individuals and corporations; and the railway com- panies were thus permitted to go outside and take indemnity lands, that would equal the 12,800 acres to the mile ; and in locating these lands, they selected the valuable coal lands of the United States, worth hun- dreds of millions of dollars; and the title to these indemnity lands, selected by these railway companies, was approved by the Secretary of the Interior, and thus the title to a vast acreage of coal lands, which should have been kept for the people, passed to the railway companies, and it is estimated that by reason of these BY GEORGE CAMPBELL 15 coal and other lands, donated by the government to these railway corporations, that these companies re- ceived $90,000 for every mile of railway constructed; and the tract of land given to these railway companies as shown by the official figures, would amount in area, to more than nine such states as the state of Ohio. But the donations did not stop here, for in July, 1862, Congress enacted a law, granting to each of these railway companies, a subsidy, consisting of six per cent, currency bonds, and apportioned as follows : For every mile of railway constructed between the Mis- souri river and the foot hills of the Rocky mountains, the railway companies were each to receive and did receive, $16,000, and through the Rocky mountains for a distance of 150 miles, the railway companies received $48,000 per mile; and from the Rocky mountains to the Sierra Nevada mountains the government paid $32,000 to the mile, and through the Sierra Nevada mountains, $48,000 to the mile, and for the construc- tion of the California branches, $32,000 to the mile, and on these bonds, the government paid the interest as it became due and payable, and relieved the railway companies from this burden, and the government paid on these bonds in interest, more than $300,000,000, and never received upon this vast sum, one cent of interest from the railway companies. These bonds have been in a measure, compromised, and payment made in transportation and otherwise by the railways to the government, but no interest was ever paid the government, on the vast sums of money advanced in payment of the interest upon the bonds. If we take the value of all the lands donated to the railway companies of the United States, and the value of the coal lands located by them as indemnity lands, and the money advanced as interest by the government, and all private and municipal donations, we have a total subsidy granted to railway corporations, equalling more than four billion dollars. 16 PROGRESSIVE GOVERNMENT Leland Stanford of California, it is said, admitted that his net portion of these donations by the govern- ment to the railway companies, with which he was con- nected, amounted to more than $35,000,000, and he was at that time, United States Senator from California, and this would indicate that the policy of Congress, in giving away the people's property to corporations, in which Congressmen and Senators hold an interest, has been in practice for a long time, and still prevails to a greater or less extent among Senators and Members of the House, as proven by the fact, that Hines, the millionaire lumberman, it is said, raised $100,000 to assist in the election of Lorimer to the United States Senate. Leland Stanford, endowed a university in Califor- nia, with a part of his money, and is entitled to some credit for this, but we have not been informed, that his associates put any portion of their ill gotten gains to so good a use. These railway companies, in addition to these gov- ernment grants of land and bonds, induced counties and cities, through which their lines of road extended, to vote bonds and take stock in these enterprises, and these companies laid out towns along their lines of rail- way and sold lots and vast sums of money were realized in this manner; and many ranchers were induced to invest large sums of money in these roads as they felt an interest in their construction, and it has been esti- mated by competent persons and published in the press, and the statement has not been denied by the com- panies, that the amount received from all sources, would build and equip these roads three times over. BY GEORGE CAMPBELL 17 DID NOT THE RAILWAY COMPANIES, SELL THESE VAST TRACTS OF LAND, DONATED BY THE GOVERNMENT, TO INDIVIDUALS FOR HOMES; AND DID NOT THESE ROADS PROVE OF SERVICE, IN INDUCING THE PEOPLE TO SETTLE UPON THEM? This was an argument, used at the time of the do- nations, to justify the grants; but the railway com- panies, instead of selling these lands, in small tracts to homeseekers, sold them in large tracts for stock ranch- es, and the settlers were not permitted to locate on even government land, within these grants; and other set- tlers who had located upon these government lands, within these grants, prior to the building of the rail- ways, were driven from their homes, and many of them were shot, and the Mussel Slough massacre, growing out of the dispute over the title to these lands, is yet fresh in the minds of the people. When these grants were made by the government, to the several railway companies, every alternate sec- tion for twenty miles on each side of the roads, were retained by the government; therefore, the company owned every alternate section in a forty mile strip- extending from the Missouri river to the Pacific coast, on each line of railway, and it was argued, that these sections retained by the government, within these grants, should be sold at double minimum price; that is, $2.50 per acre instead of the minimum price of $1.25 per acre; and it was said, that the government in charging this price, would collect a sufficient sum from the people, who settled upon these government lands for homesteads to reimburse the government for the 18 PROGRESSIVE GOVERNMENT amount donated in land, to the railway companies ; and it was further argued, that while this would double the burden of the home-seekers, in compelling them to pay a double minimum price for these lands, that the build- ing of roads, would benefit the settler, in a sum, to more than equal the advanced price ; but when the set- tlers undertook to locate upon these government lands, included within these grants, at even this advanced price, they were not permitted to do so ; and as before stated, those that had, prior to the building of the roads, settled upon government land, withnn these grants, were driven from their homes by armed men, and in many cases, the settlers were slain, and our govern- ment allowed these atrocities to continue, after they were brought to its notice, for high 'officials, seem to have been interested, and these stock ranches were fenced, and the government land included with the railway land, and settlers were not permitted to enter these enclosures, and if they did, they were shot, as an example to others. These facts are contained in gov- ernment reports and are blots upon the fair name of our nation ; but fortunately, our government is now undergoing a change in sentiment, and policies toward the people, and a higher type of statesmanship is de- veloping in both houses of Congress, and better men are being appointed to the heads of the various depart- ments of government, and a progressive sentiment is being created in both branches of Congress, that indi- cates that the welfare of the natural man is to be taken into consideration, in future legislation, at least, to the same extent as is the interest of the corporation. WHY SHOULD THE YOUNG MAN OR WOMAN ESTABLISH A HOME, AND WHY SHOULD THE GOVERNMENT ASSIST IN SO DOING? The establishment and maintenance of a home, BY GEORGK CAMPBELL 19 should be and doubtless is, the hope of every intelligent young man and woman ; for the home is the anchor of good society, and the basis on which all stable govern- ment must forever rest; and hence, the hope of the nation centers in the home ; and our government should devise ways and means by which a comforable home can be established, maintained and owned by every de- serving citizen; but under the present wage system, such is often impossible, and many of our brightest young men and women, capable of maintaining exem- plary homes, if conditions were favorable, fear to at- tempt to establish them, knowing they are wholly de- pendent upon wages, received from corporations, to maintain themselves and a home, if one should be es- tablished, and in case of discharge, by reason of de- pression in business, or some other cause, and the ina- bility of the individual to secure employment elsewhere, the basis of the home is shattered, and the structure falls; and many times, there are helpless children to be cared for at public expense, and the contemplation of these conditions that may arise, discourages the mar- riage relation, and operates against the establishment of the home. In dealing with the question of home, we will have to take into consideration, the two great classes of our people, the farmers and the small business men, who represent the great middle class ; and the wage earn- ers, who represent the dependent class, of our citizens. It is a well established fact that the young men and women of the country, are now drifting to the towns, in great numbers; and becoming wage earners; and an investigation shows, it is not because rural life is unattractive and undesirable, but the young men and women reaching their majority, are not able to pur- chase farms, or establish themselves in business, and the young man is not able to buy teams and machinery necessary for renting farms, and must work for the farmer for wages, or go to town and take employment. 20 PROGRESSIVE C.OVKRXMENT On inquiry, he finds there are shorter hours of labor in the city and better wages, than on the farm; and of the two alternatives, he chooses the wage ser- vice in the city, and join the great army of wage earn- ers, which is being constantly augmented from these sources. Now, if the governemnt would fix conditions so it would be possible, for young men and young women to marry and establish homes of their own in the rural districts, and make it possible for them to own homes, they would not drift to cities in such vast numbers, and we would retain the great middle class of our citi- zens, which are so necessary to the stability of the government itself. According to the census, our government could, for less than one-half what has been given to corporations, purchase a home of eighty acres for each adult man, residing in the rural district and not owning a home. Of course, the young man in order to avail himself of the law, framed according to these suggestions, would have to marry, and the title to the homestead, should vest equally in the man and woman, who thus estab- lishes the home. HOW COULD THE GOVERNMENT GET THE LAND, TO SUPPLY THESE PEOPLE WITH HOMES, INASMUCH AS THE LAND IS NOW OWNED LARGELY BY INDIVIDUALS AND COR- PORATIONS? Where the land could not be purchased, at a rea- sonable price, the government could acquire title by the exercise of the right of eminent domain, a power, BY GEORGE CAMPBELL 21 which inheres in all governments, and it could be exer- cised in such a manner, as to injure none. The gov- ernment takes the census every ten years ; and suppose the census of 1910 is taken, and we find that if we take from the rural population, the men who ought to main- tain homes, and divide the lands equally among them, there would be eighty acres for each adult male, that should maintain a home. We will now suppose, that Jones has 160 acres of land, and thus has double the portion to which he is entitled; and we will further suppose, that Doe is a young man, just married and wants a home for himself and family. Doe applies to the Clerk of the District Court, for a commission of three appraisers, to ascer- tain the value of the eighty acres of surplus land, that is owned by Jones, and the Clerk appoints the com- mission, and the commissioners enter upon the Jones farm, and state to Jones that under the law, he is en- titled to but eighty acres, and that at that time, he is exercising ownership over 160 acres, or twice the amount he is entitlede to own under the late census, and that his surplus land is desired for a homestead by another person and will have to be taken. Jones is required to take his choice of the eighty acre tracts, and after doing so, the appraisers ascertain the value of the remaining eighty, and sets the same over to Doe and his wife, and the value of the land as ascertained by the appraisers is paid by the government into court, for the benefit of Jones, who thus receives the full value of his land, and Doe is provided with a home, and no one is injured. If Jones is not satisfied, with the awards of the commissioners, he can appeal to the District Court, and obtain judgment for whatever the land is worth, and no wrong is committed. After the title to the homestead is thus perfected, the government should advance a sufficient amount of money, to build the house and make other improve- 22 PROGRESSIVE GOVERNMENT merits necessary to make home comfortable; and the homestead thus acquired, should not be encumbered by mortgage or other lien, except the government lien, for the purchase price of the property, and this should be paid back to the government in installments, equalling a small rental value for the property each year, and there should be no interest charged ; or, if the govern- ment saw fit, and wanted to be as generous to the natural man as it has been to corporations, it could make the homeless a donation outright, of his home as it did when there were government lands to home- stead, and the home thus acquired, should be for the family and should descend to the children or legal heirs ; and a provision of this nature, and that the title to all lands must rest upon use and occupancy, would not only keep the rural people from drifting to the cities, but would cause many from the city to go to the country, and would eventually result, in dividing the land into smaller tracts, which would be of great benefit to the country at large, for many of the farms are too large, and by reason of this, are not properly cultivated ; but under the plans here suggested, the land would be better tilled, and the aggregate production largely in- creased. The census of course, is taken every ten years, and under the system here suggested, the size of the farms would be adjusted to the census every ten years, and would be gradually diminished in acreage; and by the adoption of this system, we would preserve the great middle class of our people, and thereby insure the future stability of the government and the home. This policy was pursued in Rome, until the Roman farm was reduced to seven acres, and the greatest pros- perity prevailed during the entire time this law was in force. During this period, Rome conquered the world, for every Roman was a land owner and was independent, and the system developed a strong in- BY GEORGE CAMPBELL 23 dividual manhood without a parallel in history; but when this law was repealed and the lands aggregated in large tracts, and the masses of the people became employes of the rich, and later, slaves to the aristoc- racy, the Roman spirit died, the Empire crumbled into decay, and the light of her civilization went out in the night of a dark age that overshadowed the world. When we take into consideration the amount that has been given by the government to corporations, it does look as though it was about time to make the natural person some donation, or at least some recog- nition of his natural rights to live upon the earth, without paying some person or corporation for the privilege, and if the provisions outlined herein, with reference to the homestead were carried out, this would only cost the government if these homes were given to the people, a sum equal to about one-half what has been given by the government to corporations, and it would seem that the natural person ought to receive as much consideration at the hands of the government, as the corporation, and the recognition of the natural person, as entitled to a home, at the hands of his gov- ernment is a policy that has been tried in the United States a generation ago, and worked well, and the older people can remember that period, and the song was on everybody's lips; "Come along, haste along, make no delay, Come from every nation, come from every way; Our land is broad enough, don't be alarmed, For Uncle Sam is rich enough, to buy us all a farm." Our government made the Louisiana and several other purchases of large tracts of land, and offered inducements to people to come and settle and make homes upon these lands, and they came not by the hun- dreds, but by the millions, and helped to create the United States, a nation without a parallel in the world's history. 24 PROGRESSIVE GOVERNMENT The government now has some lands in the western states that would make desirable homes, but those that need them are not financially able to settle upon these lands, and they should be assisted by the government in so doing. There are also desirable lands for homes in Alaska and are as fertile and as good as those of Canada on the east of these possessions, yet Canada is offering inducements to Americans to settle Canadian lands, and our people are going at a rapid rate, 40,000 within the last year, while few, if any Americans are settling in Alaska, with a view to establishing permanent homes. Our government should assist the people to settle these lands, give them free transportation to their new homes, and loan them a sufficient amount of money without interest, to improve these lands, procure farm implement and machinery. The government has loaned to the railway companies, without interest, and why not to natural persons that want to build homes, and the government should also build railways to give them a market for their products, and with such a policy, these desert lands of the West and the Alaskan wilds will soon blossom into prosperous and contented communities, that will greatly add to the wealth of the nation, and all the people will be benefited ; a similar policy is now in effect in New Zealand, Australia and several other portions of the globe and has always inured to the benefit of the government and the entire people, and should receive careful consideration before being rejected. BY GEORGE CAMPBELL 25 WE CAN SEE HOW THE RURAL PEOPLE CAN OBTAIN HOMES UNDER THE POLICY HERE OUTLINED, BUT HOW CAN THE WAGE EARNERS OF THE CITY OBTAIN HOMES, WITH- OUT GOING TO THE COUNTRY? There is a large amount of land consisting of lots in every city, that is held for speculation, that would be desirable for resident purposes, and located around the cities, is plenty of land that could be divided into one and two-acre tracts, which would make desirable homes for the people of the city, and the title to these prop- erties could be acquired through the exercise of emi- nent domain as outlined for the rural districts, and these lands should be paid for by the government, and money advanced to erect the necessary buildings and improvements, on the same terms and conditions as those that prevail in the rural district, but the wage earner being dependent upon his wages to sustain the home, the local city government owes the duty to the laborer of furnishing him employment, when he can- not procure it elsewhere, that his ability to provide himself and his family a home with the necessaries of life may always be assured. In a state of nature, every person has access to the soil, and can make his own living, but by reason of the civil law, which prevails in all the civilized nations, he is cut off from the soil, and the law recognized a prop- erty right in the individual person or corporation, often a non-resident; and the laborer cannot go upon this land without consent of the owner, and the government thus deprives him of having access to the soil, which would enable him to supply his wants, and therefore, 26 PROGRESSIVE GOVERNMENT the govern -merit, as a matter of right and as a matter of equity, should furnish the laborer employment in times of depression, that he may maintain himself and family, if he has one. IS THERE ANY PRECEDENT FOR THIS MODE OF ESTABLISHING A HOME ON GOV- ERNMENT LANDS? Yes, after the Boer war, England loaned to the peo- ple of the Transval country, money at three per cent per annum, to buy land and build houses; and many millions of dollars were loaned in this manner by Eng- land to her Boer subjects. The governmjent of New Zealand also advances money to buy land and build houses for its citizens, and otherwise improve the property ; and Australia does the same; and their subjects can pay the money back in small payments, equalling a low rental value for the property. The city of Aukland, in New Zeland, furnishes the citizens with land in small tracts for homes, and ad- vances money to build houses and otherwise improve the property, and every house that is built in this man- ner, adds so much to the wealth of the country, and the government of New Zealand, is benefited to that extent, and the citizen acquires a home, and in times of depres- sion in business, the local and colonial government furnishes employment to the people, that they may always have the means of support. The city of Glasgow, Scotland, a few years ago, exercised the right of eminent domain, and took the property from the landlords in the great tenement BY GEORGE CAMPBELL 27 districts of the city, where the people were compelled to live in mere shacks, and pay an enormous rental for this privilege. The government, after acquiring title to the land, tore down the shacks, and erected modern brick build- ings, with electric light, hot and cold water baths, and employed janitors to keep everything in condition. These buildings were rented to the wage earners at a rental merely sufficient to pay the expenses of keeping the property in repair, and six per cent on the capital invested; and these tenants are paying a rental for the property, much less than they paid for the shacks they previously occupied; and the death rate in this portion of the city, which was very great, especially among children, has diminished more than forty per cent, and the city provides work for the wage earners, when they cannot otherwise procure employment, which enables the laborer to always pay his rentals and provide for his family. These facts are furnished by the lord mayor of the city of Glasgow. The City of Ulm, Germany, is another that could be cited that has made rapid progress in municipal gov- ernment, The city has taken over to itself the land ad- jacent the city and sells it in small tracts to the citi- zens for homes. The city builds the houses and otherwise improves the land so as to make comfortable homes, and fur- nishes employment to the citizen at wages that will enable him to maintain his family and pay for his home. The payments for the homestead, average about 10 per cent, per annum, on the actual cost, and this enables the citizen to obtain title to his homestead in about ten years. Mr. Waggoner says, there are great numbers of people acquiring homes under these conditions, that 28 PROGRESSIVE GOVERNMENT could not procure them otherwise ; and the city is fast becoming known as the city of homes, owned by the people ; and the city's ownership of its public utilities and several factories has added greatly to the income of the city, and the city as a municipality, owns and operates these properties in the interest of the people. Of course, this is municipal or collective ownership, but it is not such a bad proposition after all, and municipal ownership must prevail to a greater or less extent in adjusting conditions between labor and capi- tal, and the services now rendered to cities by public service corporations, must in the near future cease; and these services must be rendered by the city, as a municipal corporation, to its citizens thus allowing the people the profits, in the exercise of these local gov- ernment functions, instead of corporations. All cities are not financially able to provide homes and employment for their people, and some cities are indisposed to do so, and in order that all the people may secure equal benefits from the government policies herein suggested, it is proper for the general govern- ment of the United States to work in conjunction with the states and the local city government in inaugurat- ing such a policy, in the interest of the people. A corporation, is an association of individual per- sons, under a charter, in a co-operative sense, to dis- charge certain public services to the people; and it seems a little peculiar that the people in a collective sense have not been educated up to the standard, where they could see it to their interests, to discharge these duties for themselves. We need to teach in our public schools the principles of co-operation, and that, if co- operation is a good thing for a few persons, that con- stitute a corporation, it is a good thing for the many persons, constituting a city, and that a city as a munici- pality, has much greater power, in a co-operative sense, than the few individuals that form the corporation. BY GEORGE CAMPBELL 29 The people must learn, that any service, that is necessary to the citizens of a city, that will justify a few persons, in getting together and forming a public service corporation, will justify the municipality in creating a department to discharge the service, for the benefit of the people; and save all the profits to the municipality, that would otherwise, go into the pocket of the public service corporation. Why should a city grant a franchise to a corpora- tion to furnish the people with water, light, heat, gas, transportation or any other service, when the city can render these services to the people much cheaper, and a better service than is rendered by a public service corporation ? Some municipalities are slowly realizing this fact, and are taking over to the city, street railways, tele- phones, waterworks, electric light plants, gas plants and other public service plants, and in each instance, so far as we are informed, the service is much better and cheaper to the people when operated by the city than when rendered by a public service corporation, which must always have large dividends and often de- clared on watered stocks, and high salaries for their corporation officials. The City of Coffeyville, has a population of about 18,000 persons, and the city owns its electric light plant, and waterworks plant, and the people have a good service and at a price much less than that charged by the public service corporations to the people of other cities, having a population about the same as our own. The two plants that the City of Coffeyville own and operate, have proven a valuable asset to the city, for after paying all operating expenses, including re- pairs, from the gross receipts, these two plants annual- ly net the city over $35,000, which stands to the credit of the city, and why is not this profit as good to the city as to the public service corporation, and is it not 30 PROGRESSIVE GOVERNMENT a good business proposition for the cities to operate the public service plants? There is a public service corporation at the present time, furnishing gas to the City of Coffeyville and its consumers, and the city is required to pay 5c per thousand cubic feet for gas, for its waterworks and electric light plants, and 20c per thousand cubic feet for domestic use. In the last six months however, the city has put down five wells, and it is furnishing gas for its plants, for less than four-tenths of a cent per thousand cubic feet, and the profit upon the city gas, at four-tenths of a cent per thousand cubic feet, is sufficient to pay all the expenses of the city in sinking the wells, paying royalties on leases, piping the gas and making connections with the city plants; and the four-tenths of a cent per thousand cubic feet for the gas developed by the city, is sufficient in four years, to reimburse the city for all the money expended in- cluding interest on the investment. In other words, the city will own the gas wells, the pipe lines, connec- tions and everything of this nature and have them all paid for in four years, calculating the gas at four- tenths of a cent per one thousand cubic feet, and after the four years expires, the cost of the gas to the city will be reduced to about two mills, for every one thous- and cubic feet; and if the City of Coffeyville would sink wells enough to supply the inhabitants of the city with gas for all purposes, including manufacturing purposes, and charge 12!/^c per thousand cubic feet for domestic use, and 5c per thousand cubic feet for factory purposes; the profits to the city over the cost of production of the gas, and the profits upon the elec- tric light plant and waterworks plant, would pay the entire running expenses of the City of Coffeyville, and relieve the people from all taxes for this purpose, and would leave a surplus in the city treasury each year of over $15,000; and as a business proposition, why should not the city own its own gas plant, and save BY GEORGE CAMPBELL 31 these vast profits to the citizens of Coffeyville, instead of allowing them to go to a public service corporation. The City of Coffeyville had an option on 1,300 acres of gas land to the southwest of the city about five miles distant, until after the spring (1911) election, and the royalty asked was $10.00 per month on each gas well, from which the city used the gas. The people voted at the election in favor of the gas company, and since that time, a well has been drilled by other parties in this ter- ritory, and the well is a good producer and discharges gas to the amount of about 16,000,000 cubic feet per day. The selling price of this gas in the city for domes- tic purposes, as fixed by the gas company, is twenty cents per thousand cubic feet, and at this price the daily discharge of gas from this well, amounts to $3,200, and in the year $1,168,000, and the cost of sinking the well and piping the gas to the city, is a little less than $23,000 and the average life of a gas well in this terri- tory is about fifteen years. Is it a wonder millionaires multiply, when the people are so blind to their general welfare, and the interests of the city? The question as to whether the city should own its gas plant, or should buy its domestic gas from the gas company was squarely submitted to the people of Cof- feyville at the 1911 election, and they voted in favor of buying the gas from the public service corporation, and pay for domestic purposes, 20c per thousand cubic feet, leaving the price for factory gas to be determined between the gas company and the factories. The campaign upon this question, was remarkable in many respects, and was carried on principally by circulars, and these circulars with the result of the cam- paign, will appear as an appendix to this pamphlet that the people may understand the methods employed by corporations in conducting elections, and it will serve to show the people the power they will have to meet, in their efforts to control corporations, whose policy 32 • PROGRESSIVE GOVERNMENT seems to be to use whatever money that may be neces- sary to accomplish their ends, and charge to the ex- pense account of the company, and then raise the price of their service or the product to the people, until reim- bursed fully for the sums expended. ARE NOT CORPORATIONS NECESSARY IN THE DEVELOPMENT OF A COUNTRY, AND HOW COULD THE PEOPLE DISPENSE WITH THEIR SERVICES? I will say in answering this question from the standpoint of the people, that as a general proposition, the government ought to do for the individual what he cannot do for himself. For instance, I can raise 1,000 bushels of wheat, and can do this as an individual, but I cannot build a railroad over which my wheat may be hauled to sea- board, where it will command the greater price, for I have not the means to construct such an enterprise, but the government has, and should build the road and operate it, and not delegate this power to a corpora- tion, whose sole object in accepting a franchise to build the road, is not to render a public service, but to make money ; and many of these corporations are exercising a power to tax the people, that the government itself, would hardly dare exercise, and no government, how- ever oppressive, has ever been known to falsify its records, to cover up its profits, as corporations have been known to do. In 1897, the railway freight rates in Kansas were so high that many farmers were burning corn for fuel, and the governor of Kansas, in conjunction with the BY GEORGE CAMPBELL 33 governors of several other states, appointed commis- sioners to try to get a reduction in freight rates, and the governor of Kansas, appointed five persons, upon this commission, two from the senate and three from the House to meet like commissioners appointed from Nebraska, Colorado, Missouri, Oklahoma, Texas, and some other states and these commissioners were to meet with the railway officials and Interstate Com- merce Commission at Austin, Texas, to procure if pos- sible, a reduction in freight rates to tide water, so that the products from these interior states, could be shipped through gulf ports, instead of being hauled by rail, half way across the continent, in order to reach tide water. The writer at that time, was a member of the Kan- sas Senate, and was appointed one of the commissioners from Kansas, to meet with the other commissioners from the several states, and the joint commission con- vened at Austin, Texas, in April, 1397, and organized under the name of the Gulf and Interstate Transporta- tion Commission, and the writer was elected chairman of the interstate organization, which position he still holds. It was intimated to the commission, that the rail- way companies were not making money, and were run- ning in debt, and could make no reduction in rates, and the commission had to prepare to meet this issue, and as chairman of this commission, I went to the chief bookkeeper of one of the great railway corporations, that had a line of road extending into the gulf ports, and the party I went to see, I had rendered a service several years prior, which he said he would always re- member, and I told him I wanted information, as to how the railway companies managed to cover up their profits. At first he refused to give me the information, but on being assured that his name would never be made 34 PROGRESSIVE GOVERNMENT public, or connected in any manner with this informa- tion, he opened his books and showed me their samples of "Frenzied Finance," and it seemed strange that such things can be done, and the guilty parties keep outside of the penitentiary. This railway company, in whose service my friend was employed, was one of the government subsidized roads, receiving 12,800 acres for every mile of road, and about $200,000,000 in government bonds, on their 9,000 or more miles of railway. In addition to these subsidies, stock ranchers subscribed for large blocks of stock in this road, and bonds were voted by cities and counties, and exchanged for railroad stocks, until the municipalities and stockmen had subscribed for about $150,000,000 of the stocks cf this railway com- pany; and the company in building its road, found there was not land enough included within its forty mile grant, to equal 12,800 acres to each mile; and it went outside of the forty rrnle strip, and located coal lands, worth many millions of dollars. Many of these coal mines are now open, and some of the veins prove to be nineteen feet in thickness, and of superior quali- ty, and their value cannot at this time be accurately estimated. When the wealth of these coal mines were made known to the company, the officers organized them- selves into a coal company, for the purpose of covering up profits, and the railway company bought its coal from the coal company (themselves) at an enormous price, and by this mode, much of their profits were con- cealed. The officials of the railway company also organized themselves into a rolling stock company, and took pos- session of the rolling stock of the railway company; and the railway company leased from the rolling stock company (themselves) the necessary cars to operate their road, and paid enormous rentals therefor, and BY GEORGE CAMPBELL 35 this enabled the company to cover up much more of its profits from the view of the general public ; and other companies were organized from these officials, but I do not call them to mind, but one I think, was to oil the rolling stock, for which a fancy price was paid in order to cover up the profits of the company. After this road had been operated for several years, the stockmen of the West, who had purchased stock in the road, wanted to see some dividends coming their way, and the municipalities that had voted bonds and took stock in the enterprise, wanted dividends and be- gan to threaten the company with litigation. The company's mode of keeping the books, showed a deficit each year in the treasury of the company ; but this did not satisfy the stockmen, nor the counties and cities that had taken stock in the road, and it was evi- dent to the company that these parties would have to be paid dividends, or "be squeezed out," and it was thought best to squeeze them out ; and the railway com- pany gave one of its memberes a first mortgage bond on the road, covering the whole system, and the inter- est upon this bond soon defaulted, and foreclosure pro- ceedings were had in the United States Court, and all these cities, counties and the stockmen had their inter- ests foreclosed, and the stock they held in the railway company became valueless and they were "squeezed out" and could cause no more trouble. It seems quite evident from reports, that what this corporation did in the way of bookkeeping, is practiced to a greater or less extent by other corporations ; and for this reason a gulf is gradually opening between the people and preditory wealth, as represented by these great corporations, and as these injustices are prac- ticed upon the people, and the persons responsible there- for, remain outside the prison walls, so long will the gulf between capital and labor widen, until there comes a final contest between the natural man and corpora- 36 PROGRESSIVE GOVERNMENT tions for the control of the government, and for a more equitable distribution of wealth. All corporations of great wealth we are glad to say, do not seem to resort to this covering up process as outlined herein, and while their profits may be exorbi- tant, they seem willing that the general public should know the facts, and in proof of this, we have the testi- mony before us of John D. Rockefeller, recently given by him in New York City, in an investigation of the affairs of the Standard Oil Company and their alleged discriminations. He stated frankly under oath, that on an investment of $67,000,000, the profit of the com- pany in eight years, above operating expenses, was $891,000,000 ; that $300,000,000 of this sum had been loaned at interest, and the remaining $591,000,000 had been paid to the stockholders in dividends, during the eight years, showing the profits of this company, an- nually for the last eight years, to have equaled 165 per cent. Now, as a matter of business and of right, would it not have been better if the government, state or na- tion, or jointly, had developed these oil and gas proper- ties, and saved these enormous profits to the people, in- stead of allowing a few person who comprise the cor- poration, to absorb these enormous sums at the expense of the general public? And I repeat, that any line of business that will pay a few persons to incorporate to engage in, will pay the government as a municipality, as a state, or as a nation, to engage in; and the people should be educated along the lines of co-operation, for public ownership is co-operation, through govern- mental agencies, each person having his proportionate interest in the property operated. The government paid for building the several Pa- cific railways from the Missouri river to the Pacific coast, more than three times their actual cost, as es- timated by experts in the railway service, and it seems strange that the government would build these roads, at this enormous expense and allow the railway com- BY CxEORGE CAMPBELL 37 panies to own and control them instead of the govern- ment. Why should not the government have built these roads on government account, and owned and operated them like some of the European nations do, and saved to the government two-thirds of the expense, and be- sides, it would have saved the empire of land, that was donated by the government, to aid in their construc- tion, which land ought to have been conserved for the people. Is it the lack of wisdom on the part of the law makers, that the government of the United States, should in every possible way, favor corporations, to the detriment of the natural person, or is it due to the assumed fact that many of the congressmen and sena- tors have been given large interests in these proposed enterprises, that are carried forward by government subsidies, but in the name and under the ownership of a corporation, composed largely of United States Sena- tors. Is it a wonder that Senators become wealthy and that the Senate of the United States is now desig- nated "The American House of Lords," by reason of the wealth of its members? Corporations have recently secured power sites in Alaska and in many of the new states of the West, worth hundreds of millions of dollars, and it is said and published in the newspapers, that many Senators and members of the Lower House of Congress, hold great blocks of stock in many of these enterprises, and the government has recently spent large sums of money in constructing irrigating ditches, by which water has been supplied, to many millions of acres of arid lands of the West, and these lands by reason of the water, have been made productive and of great value, and they are exceedingly fertile and only needed water to make them productive, and this, the government supplied, and now it appears, that this land which is selling at from $100.00 to $300,000 per acre is nearly all owned 38 PROGRESSIVE GOVERNMENT by corporations, with Senators and members of the Lower House holding large interests. In addition to acquiring these irrigated lands of great value, it now appears that corporations are ac- quiring many millions of acres of timber land, lying in Michigan, Wisconsin, Minnesota, Washington, Mon- tana, Oregon and several other states, and the people have received nothing in return for these properties, and it seems from the expose in the election of Senator Lorimer, that the lumbermen are seeking to acquire further donations of timber, and with this in view, have taken a great interest in Lorimer's election, at least to the extent of $100,000 as appears from the testimony taken in the investigation. WHILE WE HAVE TO ADMIT, THAT THERE IS GRAFT IN AND OUT OF CONGRESS, IS THERE NOT LESS GRAFT AT THE PRESENT TIME, IN PUBLIC AFFAIRS THAN THERE HAS BEEN FOR MANY YEARS? I think the efforts that are being made by the Progressives in both houses of Congress, is having an effect to check graft ; but when we take into considera- tion, the Morgan-Guggenheim Alaskan syndicate, and how near it came to getting the Alaskan coal fields, the richest in the world, and for nothing comparatively speaking, it would seem that graft has not been entire- ly eliminated. The government is now offered a royalty of 50 cents per ton for the Alaskan coal, and this royalty would net the government over $20,000 an acre for this land ; and on all the coal lands thus far discovered in BY GEORGE CAMPBELL 39 Alaska, this royalty would net the government $17,000,000,000 and the actual value of the coal that this syndicate came so near acquiring amounts to over $61,000,000,000 and equals in value about one-half the entire property of the United States, as shown by the census. The coal vein in many places, is sixty feet in thickness, and seems to be the storehouse of the fuel for the coming ages. Mr. Roosevelt is certainly entitled to much credit in convening the governors of the several states, while he was President in a conservation congress, to take the initiative to conserve the natural resources and wealth of the United States, for the people ; instead of allowing these properties to be absorbed by corpora- tion syndicates to the detriment of the people. Mr. Pinchot, Glavis, Garfield and others, who made the gallant and successful fight for the people, to con- serve the Alaskan coal fields, are entitled to the ever- lasting gratitude of the people of the United States. These men lost their government position by reason of their fight for the people against Ballenger (the Secretary of the Interior) and other high officials of the nation, who wanted the syndicate to have these lands. Just what Ballenger's interest was, if any, in this syndicate is not disclosed by the evidence. When the Morgan-Guggenheim syndicate had lo- cated the coal lands in Alaska, and had made arrange- ments to procure title to the Cunningham claims and some others, the syndicate then began the agitation of a railway with land grants, and bonds to aid in the construction ; and were preparing to move upon Con- gress for this purpose, and the public press began the education of the people on this line similar to the initia- tive taken prior to the building of the several Pacific railways, from the Missouri river to the Pacific coast ; and when the proposed lines of the New Alaskan rail- roads were examined by experts, it was found that the 40 PROGRESSIVE GOVERNMENT proposed grants of land to these lines of railway, would have enabled the syndicate, if successful, to get title to the greater part, if not all of the land that con- tained the Sixty-one billion dollars worth of coal, in addition to the proposed bond issue; but their scheme for the present at least, is blocked by Pinchot, Glavis, Garfield and others, who the American people should not forget in the future years. Think what this scheme meant to the government of the United States, and the people; the issuing of bonds, sufficient to more than build the proposed road in Alaska, and the giving of these bonds to the Morgan- Guggenheim syndicate, and in addition thereto, grant them a tract of land nearly half as large as the German empire, and coal to the amount of about one-half the value of all the personal and real property of the United States. Is it a wonder, that millionaires multiply under such practices; and they call these methods by which the general public is looted ''business methods," and the frauds and corruption resorted to in accomplishing their ends, are pointed out as ''shrewd" business meth- ods. Is it a wonder that J. Pierpont Morgan under such a system, could own and control one-ninth of the entire property of the United States? The Wall Street Journal, in commenting upon the facts that the banks of the country are forming a trust, and will soon be merged under one management, in re- ferring to J. P. Morgan, says : "The Morgan influence covers institutions and en- terprises having assets and capitalization of twelve bil- lion dollars, equal to one-ninth of the entire wealth of the United States. The railways controlled and financed by the house of Morgan, represent one-third the gross earnings of all the railroads of the United States, and the banking power of the banks and trust companies controlled by the house of Morgan is 10.7 per cent of the entire banking power, of all the banks and trust companies of the United States." BY GEORGE CAMPBELL 41 The same Journal in a recent article, about the amalgamation of the interests of the great financial concerns of the country, says: "So close has become the alliance and amalgamation of the leading financial institutions in Wall Street, during the last three months, that almost absolute con- trol of the country's financial affairs is now centralized in the hands of a very few men, with J. P. Morgan at their head, and all are working in concert to this great end." The following names are then given: Baker, Still- man, Rockefeller, Frick and Vanderbilt, with Morgan at the head of this great financial merger. Then in referring to the power of this concern, the Journal says: "This financial institution could reduce credit to such a degree as to cause extreme money stringency, and great commercial disaster. "It could tie up the cash holdings of New York banks, by demanding certification of checks for enor- mous sums of money. "It could deplete the bank reserves in New York by causing shipments of cash to different parts of the country. "It could make the money rate of interest what it chooses, from 2 to 100 per cent, on call loans. "It could cripple the financial operations of the gov- ernment to an alarming degree. "It could dictate the financial operation of the great railway systems of the United States, and all the indus- trial concerns of the nation. "It could bring on a panic, that would wreck the interests of the entire country." And then referring to the banks, the same authority says: "Morgan's, gobbling up of the trust companies and banks, has little more than begun, according to the financial authorities in Wall Street ; and Morgan's ab- sorption of one great money house after another, meets 42 PROGRESSIVE GOVERNMENT with no opposition from the Rockefeller interests, which leads to the rumor, that there is an understand- ing, that may eventually lead to the national city bank. (Rockefeller's) participating in this money merger combination trust." With such a combination affected, the business of the country will be under its control, unless the people arise and change the system that makes such mergers possible. IF A MONEY TRUST IS FORMED IN THE UNITED STATES, AND OPERATED UNDER ONE HEAD, AS PROPOSED IN THE MORGAN MERG- ER; WHAT WILL BE THE EFFECT UPON THE PEOPLE OF THE UNITED STATES, AND THE BUSINESS INTERESTS? The money trust, is the most formidable of all trusts, and when administered under one head, it be- comes a menace to the business of the country, and the people in general; for it can wreck the industries at will, by refusing to make loans and forcing payment of their outstanding loans, and by these means, con- tracting the money volume of the nation to a degree, th?t makes the available money insufficient to meet the requirements of business. The issuance of money, is a government function, and should not be delegated to banks; and from the wording of the constitution of the United States, it is clear that the framers of that instrument, intended the government to exercise the power to issue money, in the interest of the people. Article one, section eight, and division four of the BY GEORGE CAMPBELL 43 Constitution of the United States, clearly delegates this power to Congress, for it says, that Congress has the power "to coin money, regulate the value thereof and of foreign coins, and fix the standard of weights and measures" Then under section ten of the same article, there is a prohibition against the state, from exercising the power to coin money. It says: "No state shall enter into any treaty, alliance, or confederation; grant let- ters of mark or reprisal; coin money; emit bills of credit; make anything but gold and silver coin a tender in the payment of debts; pass any bill of at- tainder ; expost facto laws, or laws impairing the obli- gation of a contract, or grant any title of nobility. ,, In these two sections, it is made very clear, that a state cannot coin money, or regulate its value; and cannot emit bills of credit to be used as money, as many of the colonies had done prior to the Revolutionary war ; and the state is prohibited from making anything but gold and silver a legal tender in payment of debts. The power to emit bills of credit, and make them a legal tender is lodged somewhere, and when it is de- nied to the state, this leaves this important function to the congress of the United States; and Congress has exercised this power on many occasions by the issuance of United States treasury notes (greenbacks) and there is now outstanding of these issues, about three hun- dred and forty-six million dollars and these notes are conceded to be the most convenient and best money that the people of the United States ever used; and they pass current in every nation throughout the civil- ized world, for it is a government obligation, and is a lien upon all the real, personal and mixed property of the United States, and is in effect, a check of a great nation, with an abundance of wealth and is readily re- ceived by all the nations of the earth. Is not the credit of a great nation a better basis for the issuance of cur- 44 PROGRESSIVE GOVERNMENT rency, than the credit of a bank, and if so, why not use it? The banks a few years ago, attempted to get rid of the United States legal tender notes by retiring them, and filed a test cast in the Federal court, ques- tioning the power of the government to impart to these notes the legal tender quality, and the case was finally decided by the United States Supreme Court, in favor of the government. The court in brief, decided that the power to say what should be legal tender in the United States, was by the constitution, delegated to the Congress of the United States. That the section of the constitution that delegated to Congress the power to coin money, did not limit the government to coining metal; but it could place its coin or stamp upon paper as well as met- al, and that the government having the power to emit bills of credit, had an inherent right, to place upon the bills, or notes, whatever was necessary to make them current among the people, and cause them to circulate as money, and if by making them a legal tender, would increase their usefulness and make them more accept- able to the people, congress had the power to coin its promise to pay (greenbacks) into legal tender notes; clothed with the power to pay debts, and to be a full tender in payment of all obligations, public and private. This decree of the United States court, is of the greatest importance to the people of the United States, and far surpasses that of any other decision ever pro- mulgated by the Supreme Court, for it vests the power to coin and issue money, with the general government, where it belongs ; and the government should not dele- gate this power to the banks, but use it in the interest of the whole people, and it is a duty imposed upon Con- gress, and is clearly set forth in the constitution of the United States, and the decree of the Supreme Court. At present, the national banks are the only banks BY GEORGK CAMPBELL 45 of issue in the United States, and the government pre- pares the notes of the banks and prints them ready to be signed by the president or vice-president of the bank, and the government charges the bank for the privilege of issuing these notes, one-fourth of one per cent semi-annually, on the notes in actual circulation; and these notes are loaned by the banks to the people, at an average interest of ten per cent per annum, and each note is a promise on the part of the bank that it will pay on demand the face value of the national bank note so issued. Each national bank note therefore, represents an indebtedness of the bank, and is so classed in their liabilities; and the bank is thus permitted to draw in- terest on what it owes, and is the only class of debtors known to our law, that can draw interest upon their indebtedness ; but this is another one of the many ad- vantages that is given by law, to the corporation, over the natural person. The natural person, who issues his note, pays in- terest upon it, but the national bank corporation issues its note, and draws interest upon it. Is this right? Should not the government issue these notes, so that the interest will go to the government, and thus benefit all the people, and relieve them to that extent from taxation? If a national bank note is lost, or destroyed, and the numbers not known, the bank does not have to redeem this obligation ; and is that much ahead ; and the num- ber of bank notes destroyed in our great conflagrations and otherwise lost, amounts to an enormous sum, in the course of years. If the government issues these notes, the losses or destruction of this currency would benefit the whole people, as the government would not have them to redeem, and the indebtedness represented by these lost or destroyed notes would be cancelled. In allowing the national bank to issue all the cir- 46 PROGRESSIVE GOVERNMENT culating notes (except the $346,000,000 in green backs and the gold and silver certificates) the banks are en- abled to fix the price of property to the extent of their control of the currency, and if they get complete con- trol over the currency, as they are now trying to do, they can then fix the price of all property; and it is time for the American people to act, if they are going to protect their interests, from the bank merger, that is now in the process of formation. All debts, including taxes, are payable in money; and if Jones does work for Doe, or lets him have some articles of value, and there is nothing said about the pay, the law says Jones may demand money, and Doe must pay it, and the law thus compels Doe to pay money, in the discharge of his indebtedness, and at the same time, prohibits him from making it, under the penalties of counterfeiting the money of the United States^ and leaves Doe at the mercy of the banks for the money necessary to meet his obligations. Is this equity or is it just to Doe? If the government compels Doe to pay money, and prohibits him from making it, ought it not to provide a means, whereby Doe can always get the money, at a uniform rate of interest, if he has the security for the loan? The government says to the individual, if he wants to send a letter through the United States mail, he must place the necessary postage stamp thereon; but it has established a post office where the individual can get the stamp, at a uniform price; and the supply is always equal to the demand; and why should not the government do the same, with reference to money; and not leave the debtor to the mercy of the banks, which at any time can refuse to make loans, no matter how good the security offered, and the property of the debtor must be sacrificed to meet his obligations ; and is often times sold at a fraction of its real value, because BY CxEORGE CAMPBELL 47 the banks ''are not discounting." Is it right? If the government was doing the banking the supply of money would always be equal to the demand, the same as postage stamps, and there would be no money panic, and no periods of depression in prices, following these financial disasters; for panics come in obedience to well known laws of trade, and as long as banking corpora- tions control the money, the people will experience these panics, followed by depression of prices and stagnation in trade. Let us trace the cause of panics, under our present financial system, and learn their origin, and this will better enable us to discover and apply a remedy. The national banks are the banks of issue as herein stated, and they loan to the people, their promises to pay, which answers the purposes of money, under our present system, and all the money circulating in busi- ness channels except as herein stated, before it goes into circulation, some one borrows it, and his note is in the bank drawing interest. The amount of loans by the banks to the people as given in the Banker's Encyclopedia, published by Kountze Brothers, of New York City, and edited by bankers, was on January 1, 1911, $14,544,592,000 and the interest on this vast sum at ten per cent, amounts to $1,454,459,200 per annum and in ten years, the bor- rower has paid back in interest, the entire amount of the loan and yet owes the principal, with no money to pay it, and of course, a panic is on. These panics come with great regularity every ten years under normal conditions, and are due to the absorption of the princi- pal of the loans by the interest payments, and will continue until we change our financial system. If we search the records of panics, we find there was a panic in 1837, 1847, 1857, but in 1867 it did not come because we had the war issue of United States treasury notes; the government of the United States 48 PROGRESSIVE GOVERNMENT having issued these notes to partly pay the expenses of the war of the rebellion, and they greatly expanded the money volume of the country and made exceedingly prosperous times, but when this currency was funded into United States bonds by the act of April 12, 1866, the panic came in 1873, and again in 1883, and 1893 under the Cleveland administration, and was due in 1903, but it did not appear, because the government had caused a large increase in the money volume, by reason of the Spanish- American war, and the panic was de- layed until 1907, when it again put in an appearance, and will be due again in 1917, unless the people are wise enough to change the system to government banking. Panics would not come with such regularity without a cause, and this being true, as patriotic and intelli- gent citizens, we should study and discover the cause and apply the remedy, and stop these great financial disasters that overspread the country every ten years. For the purpose of illustrating how panics occur, we will separate the people of the United States into two great classes ; those who loan, and those who bor- row money; and if we allow Jones to represent the loaning class, and Doe the borrowing class, what holds good between these two individuals, will hold good be- tween the two great classes of our people. We will suppose that Jones loans to Doe $1,000.00, at 10 per cent, interest, and takes a mortgage upon Doe's property, to secure the payment of the loan, and to make the proposition simple and easily understood, we will suppose that this $1,000.00 loaned by Jones to Doe is all the money there is in the country. In one year, Doe pays to Jones his interest $100.00, and Jones places this money in his bank vault and $100.00 is taken from circulation; but the people do not miss it from the channels of trade, as checks will supply its place during periods of prosperity, for dur- BY GEORGE CAMPBELL 49 ing prosperous times, we find that over 90 per cent, of 'the property is exchanged by means of checks; but when the panic comes, the people want money, and checks will not answer the purpose. Doe continues to pay his interest for nine years, and $900.00 is thus taken from circulation and placed in the bank vault, and there is now only $100.00 outside of the bank, remaining in circulation. Doe cannot get all of this $100.00, which would enable him to pay his interest the tenth year, for a portion of it has been lost, some has been laid away, and perhaps part has gone abroad, and Doe is compelled to default in his interest payment, no matter how much property he has, and when the interest is not paid, then Jones wants principal and interest, and a panic is on, for there is no money that can be borrowed, and Jones proceeds to foreclose his mortgage, and Doe's property is sold, and the differ- ence between debtor and creditor is thus adjusted, by the sale of the property to liquidate the debt. All observing persons have noticed that after a panic, there is a period of depression, when the sher- iffs and constables are busy selling the property of the debtor to meet his obligations, and when those debts are adjusted, between debtor and creditor, then busi- ness revives, prosperity returns and continues until another panic and another liquidation follows. But perhaps the reader will say that Jones would not place the interest he collected from Doe in his bank vault, but would loan it to the people and it would re- main in circulation, and that banks would do the same thing ; and this is probably true, but this makes no dif- ference in the final results, for when Jones loans the interest paid him by Doe, this interest becomes a new principal, and will be absorbed by the interest the same as was the original $1,000.00 and any amount loaned will be absorbed in the same manner. There are some other circumstances such as com- 50 PROGRESSIVE GOVERNMENT pound interest that might be taken into consideration, but they are largely equalized by other conditions, and will not change the final result ; and the panic will come under present conditions every ten years, and is due to absorbing the money of the country by excessive rates of interest, until the interest obligation cannot be met, for lack of money and the crisis comes. Few persons are aware, of the rapidity with which interest will absorb the property of a country, but if we will take the compound interest table, we will be enlightened upon this question to our surprise, and we will not wonder that Morgan is enabled to gobble up the property of the country under the present financial system. The compound interest table referred to, says: That $1.00 loaned for 100 years, at 3% interest, compounded annually, amounts to $19.25 6%, compounded annually, amounts to $340.00 8%, compounded annually, amounts to. . . . .$2,203.00 10%, compounded annually, amounts to. . . .$13,809.00 12%, compounded annually, amounts to. . . .$85,075.00 18%, compounded annuall, amounts to. .$15,145,007.00 247c, comp. annually, amounts to $2,551,799,404.00 In looking over these figures, and knowing many persons who are paying 24 per cent, for money, it seemeed impossible that $1.00 at 24 per cent, compound interest, would amount to two and one-half billion dol- lars in one hundred years ; and I took these figures to an eminent college professor to have them verified, and after going over them carefully, he informed me they are absolutely correct. The banks as a rule, compound their interest quarterly in advance, and this would add largely to the final results, and several of the western states have legalized 24 per cent, interest on loans. Is it a wonder that Morgan wants absolute control of the money? Under the present financial system, it is easy to BY GEORGE CAMPBELL 51 understand why the banks are governing the country ; and if an attempt is made to compel corporations to obey the law the same as natural persons are compelled to do, the banks at once threaten the business of the country with disaster, and these threats often deter the government from doing its duty. The government officials know, that all the banks have to do, to bring business disaster, is to quit loaning their funds and began to draw in the $14,544,492,000 due them upon loans and disaster follows, for the total stock of money in the United States on April 1, 1911, including that in the United States treasury was $3,540,418,414. The drawing in of the money and holding it in the bank vaults, has the same effect upon business as when interest charges absorb the principal of a loan, for in either case, there is not sufficient money in circulation to meet the obligations of the people and a panic fol- lows, and it is thus in the power of the banks, to bring on a money panic at any time they choose ; but under normal conditions as herein stated, the panic will ap- pear every ten years until we change our present bank- ing system. A money panic is impossible as long as the people have the money to meet their obligations, and it is only when the money volume is inadequate to meet the wants of the people, that the panics put in an ap- pearance. The panic of 1907, caused less business disaster than any other panic in the history of the country, as it was not followed by the period of depression in prices, which has characterized all other panics, in the history of the United States, and the reason for this is apparent, for the government came to the relief of the people and made large deposits of government money with the bank, at all commercial centers, and allowed the banks to issue clearing house certificates and cashiers' checks to take the place of money, and 52 PROGRESSIVE GOVERNMENT Congress passed the emergency currency law, which allowed the banks to take out additional national bank currency on their assets, not to exceed $500,000,000 and this enabled the debtor class to meet their obligations and staid the ravages of the panic; but it will come again in 1917 unless the people change their banking system, by having the government do the banking, and make the loans direct to the people, and at a rate of interest that will not absorb the property of the coun- try, and will divorce the business of the people from the banks. Under the French system of finance, the govern- ment loans money direct to the people, at 3 per cent, per annum, and where the people desire to deposit their money with the government, it allows 2 per cent, per annum on the deposit ; and the one per cent, difference in interest on the deposit, and on the loans made to the people, pays all the expense of the system, and leaves a surplus to the credit of the government each year, and the business of France is wholly divorced from the banks, and a person in business has the assur- ance if he needs money, he can always get it from the government at 3 per cent, per annum, and he feels secure, and a business failure seldom, if ever, occurs. Prior to the Franco-Prussian war, the Rothchilds house of Paris and its branches, controlled the money of France, and the French government had done much to build up this great institution, and it is said the banks had agreed with the French government to fur- nish the necessary money to carry on the war against Germany; but the Rothchilds house in Berlin and London it is said, brought pressure to bear upon the Rothchilds houses in Paris, and at the critical moment when the crisis of war came, the banks refused aid to the government of France, and the government without money, was helpless in making an effective defense; and the German soldiers overrun the country, and BY GEORGE CAMPBELL 53 France had to accept any terms of peace that Germany was willing to grant. Germany required of France as indemnity, a large section of her territory, Lorraine and Alsace and a money indemnity that was appalling ; and the financiers throughout the world, said that France could never pay it, and that Germany would enventually absorb the country. But France changed her banking system, and con- cluded that the "sinews of war" should thereafter be controlled by the government ; and under her govern- ment banking laws, her business has expanded in a much greater degree than any other nation of the world, and she has paid Germany in full, and has more money and wealth in proportion to her population, than any other nation on the earth, and her disaster in war, has proven a blessing in peace, as it divorced not only the government but the business of the people from the banks. In 1907, when the American panic was on, France offered to loan the government of the United States any amount of gold desired, but refused to loan a single dollar to banking corporations. She had evidently not forgotten the Franco-Prussian war incident. IF THE GOVERNMENT SHOULD ASSUME THE BANKING BUSINESS, WOULD IT NOT BE DIFFICULT FOR IT TO MAINTAIN ALL THE DIFFERENT CLASSES OF MONEY AT PAR? No, it would not, for the government now has to maintain all classes of money at par, and if it can do this for the banks, it can do it for itself. Why not? There is a misunderstanding on the part of the 54 PROGRESSIVE GOVERNMENT people about what constitutes money, and what is necessary to maintain all classes of currency at par. Some think that gold only is money, and in order to maintain our currency at par, it must be redeemable in gold, but this is not the case. Gold is not money until it is coined any more than paper. If gold is money before it is coined, then it is a waste of time to coin it, and the coining should be stopped. The legal ten- der quality of gold is what makes it money, and this is stamped by the government upon it, and this legal tender quality imparted to silver or paper will make it money equal to gold. But you say, that the gold in a gold dollar is worth one hundred cents, and is of the same value before it is coined, that it is after it is minted, and while this is true, it is due solely to the law under which it is coined. We have the free and unlimited coinage of gold and this law is what makes the bullion value of a gold dollar the same as the legal value of the coin. If I have gold in any amount, the government will coin it for me free of charge. In fact, I do not have to wait until it is coined, for the government will pay me one dollar in money for every 25.8 grains of standard gold; and the government will coin it at its pleasure. This makes the bullion value of a gold dollar the same as the legal value of the coin. If I have 25.8 grains of standard gold, and the government will coin it into a gold dollar for me free of charge, I will not take less than one dollar for the 25.8 grains of standard gold before it is coined, and this law providing for the free coinage of gold, is what makes the bullion value of a gold dollar the same as the legal value of the coin, and our government is thus using its power in the interest of corporations who have large holdings, to maintain the price of gold, and the same law that puts a dollar's worth of gold in a gold dollar, if applied to silver, would put a dollars' worth of silver in a silver dollar without BY GEORGE CAMPBELL 55 increasing its size, and did do so as long as we had the free and unlimited coinage of silver, the same as gold. Suppose our government should pass a law receiv- ing silver at the mints on the same basis as gold ; that is, enacting a law providing for the free and unlimited coinage of silver, the same as gold. Then any person having standard silver, could deliver it to the govern- ment and have it coined into standard silver dollars free of charge. That is, the government would coin every 412.5 grains of standard silver, into a silver dollar free of expense to the owner of the bullion ; and this law would make the bullion value of a silver dollar the same as the coined dollar. If I had 412.5 grains of standard silver, and the government would coin it into a full legal tender dollar free of charge, I would not take less than one dollar for the 412.5 grains of standard silver before it is coined ; and the law would thus make the bullion value of a silver dollar the same as the legal value of a coin; and the same free and unlimited coinage is responsible for the bullion value of a gold dollar, being the same as the legal value of the coin. While we had the free and unlimited coinage of silver, the bullion value of a silver dollar, was never less than the legal value of the coin, and never went below the legal value of the coin, until the law provid- ing for its free and unlimited coinage was repealed; but as soon as our mints were closed against it, the price of the bullion declined, and the case would be the same with gold, if the United States mints were closed against it, the same as they are now closed against silver. The question now suggests itself, should our gov- ernment use its legal tender powers, given it by the Constitution of the United States and affirmed by the Supreme Court, to maintain the price of gold and not silver. Should not both metals stand upon their merits, 56 PROGRESvSIVE GOVERNMENT and the government use its power to coin money and impart the legal tender quality to metal or paper, only in the interests of the whole people, and on government account as is now the case with silver, paper, nickel and copper. The idea of redeeming one dollar with another, must also be corrected, for it is mere childsplay. The ulti- mate redemption of all money is the products of labor, and gold has to be redeemed in this manner, the same as all other classes of money, and if gold was not so redeemed it would not circulate as money among the people. Suppose I have a five dollar gold coin, and I want a pair of shoes of like value, and the shoe merchant refuses to receive my gold coin for the shoes. Then I will not receive any more of these coins for I cannot exchange them for the product of the people; and no other person will receive these coins for the same rea- son, but the government has obviated this by making the coin an absolute tender, and I purchase my shoes from the merchant and owe him $5.00, and I tender him my $5.00 gold coin and it is a legal tender in pay- ment of debts and the merchant is compelled to receive it in full satisfaction of the debt, and the shoe mer- chant can compel his creditors to take it in like manner, and this makes the coin current money, among the people. At one time, I had a five dollar gold piece that had been partially melted and the government stamp destroyed. I tried to pur- chase products with this coin from several different merchants, but found no one that wouid receive it in payment of goods. Why? It was because the legal tender quality was gone, and I could not force them to receive it, in payment for their products. Now suppose, I have a five dollar legal tender note, issued by the government of the United States, I go to the shoe merchant and buy a $5.00 pair of shoes, and BY GEORGE CAMPBELL 57 I owe him $5.00, and I tender him my $5.00 legal tender note and he receives it, as readily as the gold coin, for I could compel him to take it, if he refused to do so, because it is legal tender equal to the gold coin ; and he could compel his creditors to receive it in like manner; and it answers all the purposes of the gold coin, and is absolute money. Then why use the gold on which to coin money, when the United States notes answers the same purpose, and is much cheaper and more conven- ient for the people as a medium of exchange. It is the stamp of the government that imparts the legal tender power to all money, and it has a right to stamp this power on metal or paper as decreed by the Su- preme Court of the United States, and if this is true, then as a business proposition, should we not use paper as the substance on which to stamp the decree of the government instead of gold, and by a judicious use of this power to impart the legal tender quality to paper only on government account and exchanging the paper, made a full legal tender for gold and silver bullion; the government of the United States would in a short time own the bulk of the gold and silver of the world, and the government would not be out a single dollar in the purchase, and we have a verification of this statement in the Sherman act of July 14, 1890. Congress on the 14th day of July, 1890, passed a law known as the Sherman act, authorizing the pur- chase of four million five hundred thousand ounces of fine silver each month by the government and author- izing the government to issue treasury notes in the purchase, and the measure provided that the govern- ment should coin this silver, only on government ac- count, and as the needs of the government required. A large amount of silver was purchased under this act, in exchange for treasury notes and something over 168,000,000 fine ounces were bought before the repeal of the law, and more could have been purchased 58 PROGRESSIVE GOVERNMENT in like manner, and much of this silver was bought as low as 73 cents in treasury notes for every 4121/2 grains of standard silver, and the government made a profit of 27 cents on each dollar coined from this bul- lion, and was really out no money in its purchase, for it merely exchanged the legal tender decree of the gov- ernment stamped upon paper in the purchase of this bullion, which was certainly an easy way to pay for it, and in so doing, the government is using its power to coin money, in the interest of the people instead of banking corporations, and gets the full benefit. The gold standard men however, in a short time, got in their work against silver, in the election of Gro- ver Cleveland in 1892, who was an avowed enemy to silver; and the panic of 1903 came shortly after Mr. Cleveland assumed the duties of president, and the silver purchasing clause of the Sherman act was seized upon by the president and by the gold standard men in general, as the cause of the panic, and congress was convened by the president in 1903, and the purchasing clause of the Sherman act was repealed, but it did not lessen the ravages of the panic, but really intensified them, and business did not revive until McKinley took charge of the government in 1897. McKinley knew it was necessary that the people should have more money before business could revive ; and he ordered the silver that had been purchased under the Sherman act, coined into standard silver dollars and minor coins, and shortly after this, came the Spanish-American war with an issue of govern- ment bonds, on which the national banks issued addi- tional national bank currency, and with this large in- crease in the money supply of the country, greater ac- tivity prevailed in all lines of business, and the build- ing of the Panama canal, and issuing bonds therefor, and the use of these bonds, as a basis for national bank currency, and the enactment of the emergency cur- BY GEORGE CAMPBELL 59 rency law, which allowed ten or more national banks to form a national currency association, and issue na- tional bank notes on the assets of the banks not to exceed in the aggregate $500,000,000 ; gave the people a larger volume of money than had prevailed for many years; and all the industries took on newness of life, with an upward tendency in prices on all lines. If the assets of the bank consists of state, county, city or other municipal bonds and the interest has not defaulted for ten years, the bank can issue national bank currency to the amount of 90 per cent of the value of the bonds, and on commercial paper, such as promissory notes, endorsed by at least two responsible persons, the bank can issue 30 per cent of their face value, etc., and all these provisions has served to in- crease the volume of money from about $1,750,000,000 under the Cleveland administration to $3,540,000,000 under the Taft administration, and business has kept pace with the increase in the money volume. DO YOU NOT THINK THAT THE BANKING BUSINESS IS TOO COMPLICATED FOR THE GOVERNMENT TO ENGAGE IN; AND THAT UNDER GOVERNMENT BANKING, THE BANK- ING INSTITUTIONS WOULD NOT BE LOCALIZED AS UNDER EXISTING LAWS? The banking business is not complicated, but there is an attempt made upon the part of those who control the money, to make it appear complicated, that the masses of the people may not understand it, and the banking business simply conforms to well known laws 60 PROGRESSIVE GOVERNMENT of trade, and would be easily exercised by the govern- ment, more easily than the post-offices. The government is now conducting the banking business, for it issues every note and coins every dollar that circulates as money among the people ; but instead of conducting this business for the people and in the interests of the people, it is conducted for the banks and in the interests of the banks. Under government banking, the banks would be better localized than under the present banking sys- tem, and our postoffices serve as an example along this line. The postmaster is selected from the body of the people where the postoffice is established, and he is appointed by the government and qualifies by sub- scribing the oath of office and executing his bond, and when he takes possession of his office, he is a neighbor, the same as before and is interested in the affairs of the community, the same as before, and the postoffice is thus localized to a much greater degree than are the banks under the present system, for often many of the stockholders of the banks and sometimes, the main of- ficers, live in other localities, and even in other states and operates the bank in the community for the profit to the corporation, and not with a view to faithfully serve the public. If the government should establish banks on its own account, all the officers would be appointed by the government and would be taken from the body of the people, the same as the postmaster, and would qualify in a similar manner and give bond, but would probably have to pass a civil service examination in order to be- come a candidate for appointment. After assuming the duties of his office, he would be a neighbor the same as before, and the bank would be operated under in- structions from Washington, the same as are the post- offices ' and the individual having the proper security could always borrow money from the government bank for 3 per cent per annum, or could deposit his money BY GEORGE CAMPBELL 61 and receive 2 per cent, per annum on the deposit, and the government would always have a supply of money equal to the needs of the people, the same as is the case with postage stamps, and you could always get your money and there would never be a time when you would be cut off by the statement "we are not dis- counting," and would not this be an improvement on our present banking system, where bankers sometimes act toward their customers, as does the Czar toward his subjects. Another method of government banking is possible by a slight change in the present national bank laws. Five or more individuals having the necessary securi- ties, can, by associating themselves together, incorpor- ate a national bank, and there is no good reason why all the people of a community should not be included in the corporation, and become stockholders in the bank as citizens of the community. Suppose Montgomery county, with an assessed valua- tion of about $60,000,000 should conclude to go into the banking business and organize a banking depart- ment and incorporate as a national bank of issue. The county would vote a bond in order to com- ply with the law, equalling we will say, ten per cent of the assessed valuation of the property of the county ; the bond to draw 2 per cent per annum inter- est, which interest of course, would come back to the county. The matter of interest is necessary in order to comply with the national bank act as it now exists. This bond is then assigned to the treasurer of the United States as security, that the county will redeem its obligations, after the manner of the national banks, and the comptroller of the currency at Washing- ton will then incorporate the banking department of Montgomery county as a national bank, and issue currrency to the county in the full sum of $6,000,000, and the Montgomery county national bank 62 PROGRESSIVE GOVERNMENT would then put in as many branch banks, in the various parts of the county, as would be necessary to meet the business wants of the people, and the govern- ment would charge the county one-fourth of one per cent semi-annually on its currency in actual circulation, and relieve it from all further taxation, and the bank would allow the people two per cent on their deposits and charge them three per cent per annum, on the money borrowed from the bank. All officers of the bank would hold their commission from the government, and would be under bond, to in- demnify the county against all loss, and the banking business of the county would be absolutely safe, and the profits arising from conducting the business that is, the difference in the one-half of one per cent paid to the government and the three per cent charged the people on loans after paying all operation expenses, would leave a surplus to the credit of the county and this would relieve the people to that extent from taxation, and the bank would be administered for the benefit of the public, while a national bank as a private cor- poration, is administered solely with a view to profit for the corporation. Under such a system, the people of the county would provide themselves with the cur- rency necessary to transact their business and exchange their property, by using their own credit instead of a bank's and what would be done by Montgomery county upon this line, would be done by other counties, until the people were fully supplied with the necessary funds to transact their business throughout the nation and at a nominal cost. The people as a community, would thus use their own credit in the form of national bank currency, issued by municipalities to transact their business instead of depending on the banks as is now the case. BY GEORGE CAMPBELL 63 / CAN UNDERSTAND HOW THE GOVERN- MENT COULD CONDUCT THE BANKING BUSI- NESS IN THE EXCHANGE OF PROPERTY, EITHER AS COUNTY INSTITUTIONS OR BY DIRECT GOVERNMENT BANKING, AFTER THE MANNER OF THE POSTAL SYSTEM; BUT TRANSPORTATION AS CONDUCTED BY THE RAILWAYS, IS AN IMPORTANT FACTOR IN THE EXCHANGE OF PROPERTY AND COULD THE GOVERNMENT OPERATE THE RAILWAYS AND PREVENT THE ABUSES WHICH NOW OBTAIN IN THE CARRYING TRADE OF THE UNITED STATES? The government has demonstrated its ability to successfully operate the railways, and nearly all Euro- pean countries, own and operate their railroads, and the United States government has in many instances, where the management become involved in debt, so they could not pay, took charge of these roads, and suc- cessfully operated them by means of receivers and ad- justed their indebtedness, put them upon a paying basis, and turned them back to the company, thus demonstrating that the government, can successfully operate railways. With reference to the abuse of railway companies, in the carrying trade of the United States, there is cer- tainly a remedy; but the railway question should be carefully considered, before the remedy is applied. Every great industry that the government attempts to regulate, will affect every other industry to a greater 64 PROGRESSIVE GOVERNMENT or less degree, throughout the United States, as all are interwoven to such an extent that care must be ex- ercised, in dealing with any branch of the industrial system, if we would avoid business disasters. The government however, is the only power suffi- ciently strong to regulate successfully, either of the great corporate interests of the United States, and any attempt on the part of the government to regulate the railway carrying trade, will meet with resistance on the part of all the special interests. The whole indus- trial system is bound together and will be affected by any effort to control the railways, and this will be evi- denced by the uncertainties in business, the closing down of factories, and the stagnation of trade in gen- eral, but the regulation is necessary and must come, and the quicker the government assumes its obligations to the people upon these lines, and discharges its duty and compels all public service corporations to act as servants of the people instead of their masters, the better it will be for all concerned, and the quicker will the crisis be met and passed. The railway corporations are supposed to be public servants and owe to the public, fair and equitable treatment, and any violation of this fundamental prin- ciple, under which their charters were granted, should be promptly punished, and the railway corporations must be taught that to discriminate against any indi- vidual or community is a wrong, and violates the fun- damental principles on which their charters were granted, and that such violation revokes their authori- ty to do business ; and that the government under these conditions, will assume control of their roads, and operate them in the interest of the public. The Texas & Pacific rate case, decided a few years ago, by the United States Supreme Court, was about the first act on the part of the railway companies, to challenge the attention of the general public, and direct BY GEORGE CAMPBELL 65 them to the unjust discrimination in freight rates, and the logical results of these discriminations, unless checked by the strong arm of the government. And it was made apparent that the railway corporations must be confined to their duties as public carriers without discrimination, in any form or that government owner- ship must result, in order to protect the rights of the people. The Texas & Pacific rate case was the result of dis- crimination on the part of the Texas & Pacific Railway company in hauling goods from New Orleans to San Francisco and on which the railway company charged Americans more than three times what it charged Europeans for hauling the same class of goods, over the same line of railway from New Orleans to San Francisco. A brief of the court decision and findings are given in the report of the Interstate Commerce Commission at page 8 of the 1896 report. In the court review of this case, it is shown that the Liverpool and London manufacturers secured a rate of $1.07 per hundred pounds from Liverepool, England to San Francisco, California, and this $1.07 per hundred pounds paid the through freight rate by water from Liverpool to New Orleans, and then over the Texas & Pacific railway, from New Orleans to San Francisco. The goods shipped consisted of boots, shoes, cashimere, cigars, cutlery, confectionery, gloves, hats, caps, laces, linen goods, saddlers goods, woolen goods, etc., and the Texas & Pacific merely received its proportionate part of the through rate of $1.07 for hauling these goods from New Orleans to San Fran- cisco, and the rate on the same class of goods manufac- tured or owned by Americans in New Orleans, was $3.70 on each one hundred pounds from New Orleans to San Francisco over the same line of road. It was easy to see, that this discrimination would destroy the effect of the American tariff, in protecting American industries, and in retaining the American markets for 66 PROGRESSIVE GOVERNMENT American products, and would turn these markets over to Europeans. The court by a majority decision, favored the rail- way company, that the company had the legal authority to discriminate against American interests, in the man- ner stated, if it was to the interest of the railway com- pany to do so, in making their contract with other companies, upon a division of the rates ; but a minori- ty of the court consisting of Justices Harlan, Brown and Chief Justice Fuller, dissented from this opinion, but of course, the majority opinion has to govern and is the law, but Justice Harlan in his dissenting opinion says: "The question is one of unjust discrimination by an American railway company, against shippers and owners of goods and merchandise originating in this country and of favoritism to shippers and owners of goods and merchandise originating in foreign coun- tries. If the position of the Texas & Pacific Railway company be sustained, then all the railroads of the country that extend inland, from either the Atlantic or Pacific ocean, will follow their example, with the inev- itable result that the goods and products of foreign countries, because alone, of their foreign origin, and the low rate of ocean transportation, will be trans- ported inland from the points where they reached this country, at rates so much lower than is accorded to American goods and products, that the owners of for- eign goods and products, may control the markets of this country, to the serious detriment of vast interests, that have grown up here, and in the protection of which, against unjust discrimination all our people are deeply concerned. "I am unwilling to impute to congress, the purpose to permit a railway company, because of arrangements it may make for its benefit with foreign companies, en- gaged in ocean transportation, to charge for transport- BY GEORCxK CAMPBELL 67 ing from one point to another in this country goods of a particular kind, manufactured in this country, three or four times more than it charges for carrying over the same route, and between the same points, goods of the same kind, manufactured abroad and received by such railway company at one of our ports of entry." The discriminations, such as appear in the Texas & Pacific railway case, and the juggling of accounts by the railway companies to cover up profits, as appears elsewhere in this booklet, naturally creates a distrust and enmity on the part of the people against these railway companies, and this is causing a large per cent of the people to advocate government ownership as a means, to prevent such abuses ; and it is now up to the government, to exercise such reasonable control over the railway carrying trade of the United States, as will prevent these abuses in the future, or govern- ment ownership will follow, and the government, in delaying action upon this line, invites a political up- heaval, that may not only result in the ownership of the railways by the government, but perhaps other public service corporations will be affected, and their property taken and managed by the government, in the interest of the people. The railway companies as they now exist, have a right to collect from the people, in rates, such a sum as will give them a reasonable per cent on the capital invested and pay operating expenses including repairs, but railway companies should not be permitted to issue stock and bonds to the amount of three or four times the value of their property, and collect from the peo- ple, in rates, a sufficient sum to pay dividends and in- terest charges upon these watered stocks and bonds, that represent no actual value. The government under an equitable law, should ap- praise all the railway property of the United States, at its actual value in money, and allow the companies to 68 PROGRESSIVE GOVERNMENT issue stocks, in an amount only equal to the appraised value of the property, and then the government to in- sure equitable rates, should guarantee, say three per cent upon these stocks, and in addition thereto, should guarantee the payment of the operating expenses in- cluding repairs of the railways within reasonable limi- tation, and fix a rate for the transportation of persons and property, that will reimburse the government for all these expenditures. If the rate fixed by the govern- ment is not sufficient at first to meet all the expenses of the service, the deficit should be paid from the United States treasury, the same as in the mail service. Such a policy, would make the railway stocks as good as government bonds, and a person purchasing these stocks guaranteed by the government, would know that he was not buying water, but something that represented an actual investment, and on which a divi- dend of three per cent would be paid. A uniform rate of transportation, for persons and property should be considered by the government in fixing rates ; and this matter has been carefully calcu- lated by a man prominent in railway circles in St. Louis, and he informs me, that if the government would establish a uniform rate, for the transportation of per- sons and property to any part of the United States, at the same price, as in postal service, that $1.25 for 1,000 pounds or less of merchandise, and $25.00 per car for merchandise, to any part of the United States, will pay the entire expenses that the government would assume, in a uniform freight service as outlined in this booklet. With such a system in vogue, our industries would take on newness of life, and states like Arkansas, rich in minerals, but with railway rates so high, their mines cannot be operated, would immediately assume work, and the California fruit, and the fruit from the eastern seaboard, could be supplied to many persons, who can BY GEORGE CAMPBELL 69 now scarcely afford the luxury, and under such a sys- tem, products could be shipped a mile or across the continent, at the same price, and such a policy would convert the nation into a beehive of industry, and every locality would produce what it was best adapted to — produce and exchange products with other localities; and the commerce of the United States, would soon be doubled, and all products could find a ready market somewhere within the United States, and without be- ing consumed by corporations in exorbitant freight rates ; and new lines of railway, should be constructed where needed and the idle labor thus employed, and all the people would be benefited by such a system. The same authority informs me, that with the uni- form passenger rate of $1.00 for a mile ride or across the continent, would pay operating expenses of the passenger system, taking into account the increase of travel, that the system would insure; and while both of these services would perhaps have to be modified to some extent, they are worthy of consideration ; for, if a uniform rate for passengers and merchandise is a good thing for a great city, and necessary to the wel- fare of the city, why would it not be equally necessary and beneficial to a great nation, to have such a system? The government will now carry through the United States mail, four pounds of merchandise to any part of the United States for the same price, and if the uni- form price for four pounds of merchandise to any part of the United States is a good policy, then why would not a uniform rate on 1,000 pounds or a carload to any part of the United States be equally advantageous and beneficial to the people? The government of the United States is owned by the people, and why not have a policy that will be equally beneficial to all? The mail service of the gov- ernment which allows a person to send a letter a mile or across the continent for the same price, is certainly 70 PROGRESSIVE GOVERNMENT an equitable service, and why not apply the same policy to the freight and passenger service within the whole United States? Such a policy should be considered in fixing rates, for if adopted, it would entirely do away with discriminations against individuals and communi- ties; and all patrons would be equally benefited, and have a square deal, the same as in the postal service, where all receive the same consideration, and pay the same price for the service eliminating the question of distance, a policy that is now being adopted by many of the European countries, and American railway com- panies often eliminate distance in fixing rates, and now have a rate in force that gives the shipper a lower rate from New York to San Francisco than to interior points in Kansas. / CAN SEE HOW PUBLIC SERVICE CORPORA- TIONS CAN BE REGULATED AND CONTROLLED ON THE LINES SUGGESTED; BUT HOW CAN THE GOVERNMENT REGULATE PRIVATE COR- PORATIONS, THAT OPERATE OUR GREAT IN- DUSTRIES, AS MANIFESTED IN THE TRUSTS, AND OTHER GIANT MONOPOLIES THAT FIX PRICES UPON THEIR PRODUCTS, WITHOUT RE- GARD TO THE COST OF PRODUCTION. The regulation and control of private corpora- tions is easily accomplished. Let the government ap- praise these plants at their actual value in money. Then ascertain the number of employees necessary to successfully operate the plant, and what the labor is worth, calculated upon a basis that will insure the BY GEORGE CAMPBELL 71 operatives wages that will enable them to live as be- comes American citizens, and enable them to support their families in like manner. These items of labor should be first considered, for as Lincoln said "labor is prior to capital and deserves the greater considera- tion ; that capital would not have existed, if labor had not first existed/' and this fact should not be lost sight of by the appraisers. Then take the cost of the raw material into account, and the cost of keeping the plant in repair, and add to these items a reasonable per cent on the capital invested, and then ascertain the amount of product of the factory, and fix the price on these products, so as to meet all these expenses, and the ques- tion is solved, independent of all tariff laws that may be enacted. The tariff law, will not under present conditions, lower the price of the manufactured product, or con- trol them in any form, while our factories are operated by trusts. If we had absolute free trade, under our present industrial system, foreign products would not come into the American market, in competition or at a lower price than that charged for like products manu- factured at home; and this is due to the existence of the trusts, that fixes the price of the products of the factory, without regard to the cost of production. Each of the various lines of the industrial system, in the United States, is now formulated into a trust, and is under one management, and competition is at an end for all time. The merger has come to stay, and the government must deal with conditions as they exist, and not as the government would have them exist. By reason of the merger, the trusts are easily formed, and the industries of the various nations, are now merged into trusts similar to those of the United States. Suppose there are one hundred factories in the United States manufacturing woolen goods. These products before the trust was formed were placed on 72 PROGRESSIVE GOVERNMENT the market by the individual factories, in competition with each other, and low prices resulted. The factories however, in the course of time, became wise, and con- cluded to cease competition and to form a merger on plans as follows : The management of the one hundred factories get together and agree if possible, upon the value of each factory, and in case they cannot agree, then the factory is appraised at its actual value in money, and the merger is incorporated, and stock taken in the merger, by each of the factories in an amount equal to the value of each of these one hundred plants, and the fac- tories pass under one management, and competition ceases. The price of the products are then arbitrarily fixed by the merger without regard to the cost of pro- duction, and each factory draws from the trust, its proportionate part of the profits, and if the tariff laws of the United States were stricken down, all that is necessary would be to form an agreement between the trusts of the United States, and those of foreign coun- tries, and this creates the international trust or merger, and the prices will be maintained and arbitrarily fixed, on all the products throughout the world, and competi- tion will be wholly eliminated ; but if the government of the United States would fix the price of products on the equitable lines herein suggested, the tariff law and the influence of the trusts, would be powerless to raise the price above that fixed by the government, and if the trust should refuse to operate their plants, as was attempted in Australia, then the government could operate them through receivers as they are already organized under one head, ready for the government to take charge if necessary. In discussing with the manager of a gas plant, the government supervision of the business of the trusts, and the fixing of prices upon the lines suggested, in- cluding the price of gas and coal, the manager informed BY GEORGE CAMPBELL 73 me, that his plant was in the gas merger, and that his company would never submit to the government super- vision of its business. He said the plants belonged to the merger, and that the property rights of the merger could not be interfered with, and that they would man- age their property to suit themselves, the government to the contrary notwithstanding. I called the attention of my informant to the fact, that by reason of the action of the trust in arbitrarily fixing prices, without regard to the cost of production, they had created an unrest among the people, and that this unrest forbodes a political upheaval, and perhaps disaster to the special interests, that now dominate the political affairs of the state and nation, and asked him if he did not think it the part of wisdom for the special interest to make concessions and to submit to such rea- sonable regulation and control on the part of the gov- ernment, as would insure equity and a square deal to the masses of the people. He informed me that in the past the special inter- ests on every occasion, had been able to protect them- selves, and would be in the future against any political movement that might originate ; and that they would make no concessions. That any political movement however formidable, could not interfere with their property rights, and that the corporate interests within the United States, amounted to over $30,000,000,000; and if necessary for self protection they could paralyze the industries of the country in a day, and bring such disaster and pressure to bear upon congress, and the executive department of government that, it would overcome any influence exerted by any political up- heaval ; and in addition thereto he stated, that the con- stitution and laws of the land and the decision of the court, were all in their favor. I called to mind, as we were discussing this ques- tion, that he was using the same argument that was 74 PROGRESSIVE GOVERNMENT used by the slave owners prior to the war of the rebel- lion. At that time, there was an abolition party, backed by a secret organization, that believed in the emancipation of the slaves; but the constitution and the laws of the land at that time, were all in favor of chattel slavery. Judge Taney, of the Federal Court, in what is known as the Dred-Scott decision said in 1857 : That a slave was property, and the slave owner could take his property into any state or territory of the Federal Union, and the laws of the country were bound to pro- tect him in the possession of his property rights. The language used by the court, was clear and ex- plicit, that the negro was property under the consti- tution and laws of the United States, and that the slave owner had a vested interest in his slaves, and that the constitution and laws recognized this property right, and that no political upheaval could interfere with it, and that the value of the slaves, amounted to one-fourth of the entire value of all the personal and real property of the United States, and that it was too big a proposi- tion for the government to handle, and it could not pur- chase the slaves, for it could not raise the necessary money to do so, even if the government should determ- ine upon such a policy; and besides the slave owner would not sell, and there was no law that could compel him to part with his property rights ; that these rights were sacred and guaranteed by the constitution and laws of the nation, and would be upheld by the courts against all political movements. But a political storm was gathering, the force of which no one foresaw, and the slave owner rested his cause on his property rights in the slave and refused to make concessions, and thereby invited the political up- heaval, and it came; and with it was scattered the rights of property, so far as the slave was concerned, and the constitutional guarantees and decrees of the BY GEORGE CAMPBELL 75 court were lost sight of, and the slave was freed, and the $6,000,000,000 invested in chattel slavery was con- fiscated, and was a total loss to the slave owners. Now the question suggests itself will the vested interests take warning and learn a lesson from the history of the past and bear in mind, that all property rights, indi- vidual or corporate, rests upon the law, constitutional and otherwise, and by repealing the law, property rights, so far as individuals or corporations are con- cerned, are at an end. It will be remembered that in 1880, there were many millions of dollars invested in distilleries and breweries in Kansas, and the liquor interests were largely dominating the affairs of the state, and were accused of even corrupting elections. The people arose in their power, and asserted the right of revolution, and voted for prohibition, and the destruction of the distilling and brewing interests ; and the vested rights of these interests disappeared, and the property that remained in the state was confiscated and destroyed by the state, and in addition to the destruction of these distilleries and breweries, the State of Kansas has probably seized and confiscated $10,000,000 worth of intoxicating liquors since 1880, and has never paid one dollar for the property destroyed. The special interests should bear in mind that the paramount title to all property vests in the govern- ment, local, state and national ; and the property rights of the individual is only recognized by constitutional guarantees, statute laws and court decisions under cer- tain conditions, and if those conditions are not complied with by the individual or corporation, the government asserts its right of ownership and takes the property and sells it, or otherwise disposes of it to satisfy the demands of the government. The title to your land was primarily received from the government, and the individuals or corporations 76 PROGRESvSIVE GOVERNMENT are given the right to occupy this land, to the exclusion of all others, so long as the occupant pays the taxes and observes the law. If however, he does not pay the taxes, the government sells the land, and will deed it to the tax purchaser, and the law will put the purchaser in possession of the premises. Now, if the government did not have a superior title to that of the individual, it could not deed away the land, and put the occupant out of possession and the purchaser in possession ; and all the property rights of the individual or corporation rests upon law, and a corporation can only hold its property by paying the taxes, and complying with the law, and a repeal of the law that gives title to the prop- erty destroys individual and corporate ownership, and vests the title to all property in the government, local, state and national ; and the government would not have to pay a single dollar for the property taken. It would be confiscated the same as the slave property, and the distilling and brewing interests in the State of Kansas. It is right and proper for the people to study these questions so they can intelligently act, in case a time comes for action ; for it remains for the people to de- termine what the policies of the government shall be with reference to all property rights ; and the masses of the people should be educated on political lines as well as business lines, that the future policies of the nation may be determined by an educated ballot, in the hands of honest, intelligent citizens, who will use it for the benefit of the whole people instead of a class. The socialist party backed by a secret society, at the present time, occupies about the same position in the approaching political upheaval, as that of the abo- lition party backed by a secret society in the forepart of the fifties. The membership of the abolition party were radical, and knew what they wanted, but did not understand how to organize and develop a • political party sufficiently strong to accomplish their purpose; but at this time, a division occurred in the Whig and BY GEORGE CAMPBELL 77 Democratic parties, and there was developed a radical progressive element in both these parties against slavery, and while these progressives did not go as far as did the abolition party, and were content in declar- ing "that slavery was a state institution and not a na- tional policy, and that slavery should not exist within the territories of the United States, but that when a territory had made sufficient progress to be admitted as a state into the Federal Union, while it must be ad- mitted as a free state, that after its admission, it could then by a vote of the people establish slavery as a state institution" and upon this platform, they asked the support of the people. The Republican party which was the name assumed by the new progressive movement in the early fifties, knew how to organize and carry the country, but did not have a clear idea of its political principles, and the abolition party became the educator in the new move- ment, and a powerful political organization resulted, and in the political upheaval that followed, the aboli- tion party got all it asked, but the work was accom- plished by means of the new political organization under Republican leadership. In the present approaching contest, between capital and labor, unless wisdom is used, history will repeat itself. The socialist party knows what it wants. It declares "In favor of government ownership and con- trol of all the means of production and distribution," and this statement is unequivocal and clean cut and leaves no doubt as to what the socialist party wants, but the socialist party does not seem able to organize an effective political party, with sufficient strength to accomplish its purposes, and now comes a breach in the Republican and Democratic parties, and the forma- tion of a strong, progressive element in each of these parties, which is developing into a political movement, as demonstrated in the results of the last election : and 78 PROGRESSIVE GOVERNMENT they seem to know how to build up a political organi- zation, that will sweep the country perhaps in 1912, but not later than 1916 at the furthest; and while the political principles of the progressive party are not well defined, they know there is something wrong, and they want to remedy the evil, but have not fully determ- ined just what the evil consists of, or the remedy to be applied, and the socialist party to some extent, like the abolition party, is becoming the educator in the new progressive movement, but it remains to be seen how far the progressives will go on these lines. It is no argument against socialist movement to say it is impracticable, and that the vested property rights of the special interests are so great, that the govern- ment could not purchase them, and therefore, these interests are safe, for the history of the world shows that in great political upheavals, the property rights of the interests affected, are never purchased by a govern- ment, but are confiscated and this fact of history should be looked squarely in the face, in dealing with the social movement, which now confronts the people. Socialism has been tried, as a government policy at different periods in the world's history, and while we shall not attempt to enumerate them, it is but fair to say that in some instances, it has met with a measure of success, but has generally proven defective in this: that there is a tendency to make the people indolent in proportion as it destroys individualism, yet, if corpora- tions persist in the organization of trusts, and domi- nating the affairs of the people, to the extent that now seems probable, the masses of the people may even- tually accept socialism as a means to rid themselves of the oppression of the trusts, if no other remedy is offered, which in the judgment of the people, is pre- ferable to that offered by the socialist party. It seems a little strange, that nowithstanding the unrest of the people, and their complaint against the BY GEORGE CAMPBELL 79 corporations and trusts, that capital continues to form combinations at a rapid rate, as though they were in fact, getting ready to turn over these properties to the government under a socialistic system. These great corporate interests are daily combining and using the merger for this purpose, and the manage- ment of our industries is being placed under a single head, and if the policy is not checked or abated, the people may come to the conclusion, that if competition is to be wholly eliminated, and the industries managed by a single head, that, that head shall be the govern- ment, and that our industrial plants shall be owned and operated by the government in the interests of the whole people. If the owners of these large property interests do not want this policy to prevail, it would be well for them to study conditions, and make concessions before it is too late. If the people were sufficiently advanced upon educational lines, and the canons of the decalogue and Golden Rule, the government might go forward on so- cialistic lines and be a success, but in order to insure success, under socialistic rule, the people must be edu- cated and of a high moral type, in a degree that will eliminate graft and oppression. The colonists, when they first came to America, had everything in common, and their government was purely socialistic, and each person was compelled to do a certain amount of labor in raising supplies for the people, and these supplies were stored in a house that belonged to the colonists, and provisions were drawn therefrom, as the needs of the people demanded; but there was a lack of energy among the colonists and each one seemed to be afraid that he would do more than his share of the work, and under this system, the colonists never .produced enough food to supply their needs, and when they could not get supplies from the mother coun- try, or from the Indians to tide them over, they starved 80 PROGRESSIVE GOVERNMENT and many perished from hunger, and in a few instances the whole colony died from famine. But when Captain John Smith took charge of the colonists, he saw what was necessary to make them prosperous and self-sustaining and he divided the land in severalty, and gave each man a title to a homestead, and gave him to understand that if he raised more food than was necessary to supply him and his family, that the colonial government would buy the surplus, and pay for it, and that he could thus become prosperous and contented. After this policy was adopted, there was no more want among the colonists. There was always a surplus of food products which was sold to the Indian and mother country, and the greatest prosperity prevailed among them, and private ownership proved to be the solution of the colonial problem, and their growth, per- manency and prosperity dates from the abolition of socialism among them. The American Indians also serve as an example of socialism. The tribes have held their property in com- mon all the way down the centuries and have made little or no progress during all this period of time, and the saying had become proverbial that the ''Indian would not work" ; but now where the government has done away with the tribal relations, and divided the property among the members of the tribes, the Indians are be- coming good workers and are conducting farms and raising stock; and their individual efforts are stimu- lated under the incentive of private ownership, until they now rival their white brothers in farming; and many of them surpass in this respect the average of the white race. BY CxEORGE CAMPBELL 81 IF SOCIALISM IS NOT THE REMEDY FOR THE ILLS THAT AFFLICT THE PEOPLE, WHAT IS THE REMEDY AND HOW IS IT TO BE APPLIED? The remedy is undoubtedly government supervision and control of the industries on such conservative lines as will insure equal and exact justice to all, and such action requires a study of business conditions on the lines herein suggested and when the cause is discovered the remedy is apparent and must be applied by the gov- ernment in the interest of all the people and the gov- ernment to that extent must be paternal or socialistic to the degree necessary in preserving equal and exact justice to all the people. All governments are more or less paternal; they are paternal in preserving order, and must become more paternal or loco-parentis, in controlling the trusts and combines and protecting the right of the masses against the classes, and it is the only adequate power that can deal successfully with present conditions. An intelligent parent with a large family of girls and boys, will encourage each to put forth his or her best efforts to achieve the greatest success in life; he will not hold them back but encourage them to go for- ward and assist them in so doing, and while each will accumulate individual property by reason of such en- couragement and assistance, each will have a share in the patrimony or property of the parent at the same time, and there is no good reason why an individual should not possess individual property and at the same time, have his interest in all government property and to this extent, a government should be paternal. 82 PROGRESSIVE GOVERNMENT A parent will be zealous for the welfare of each of his children, and see that one does not take advan- tage of the other, and that combinations are not formed by some of the household to operate against the inter- ests of the other members, but will see that absolute justice prevails among them, and that each is secure in what he honestly acquires, as the fruits of his in- dividual efforts; and should not the government be equally zealous to protect the rights of its subjects, and see that combinations are not formed in the inter- ests of the few to operate against the rights of the many and that the government should not donate the property of the people to trusts and combines and thus assist corporations in building up giant trusts that op- press the masses and in some instances, exercise a tax- ing power over the people that a government would hardly dare to exercise. Would a prudent parent per- mit such a policy to obtain in his household? Suppose a parent has a large farm and numerous children, and as they reach man's estate, they marry and establish homes, and the parent sets apart to each family a homestead of equal value. The homestead set apart to John, is found to con- tain gas, coal and oil in vast quantities, and John sets about to develop these properties and sell the products to the other members of the family, and wants to sell at a large profit in fact, "what the traffic will bear." The parent now appears upon the scene and notifies John that in his title deed, there was transferred to him the surface of the land for a homestead and that his deed did not include the minerals underneath the surface of the earth ; that these are a part of the patri- mony and belong equally to all the children, and that John cannot appropriate them to his exclusive use and benefit. That John will not be permitted to acquire ownership of these natural properties, but in drilling wells for oil and gas, and piping the same, and in min- BY GEORGE CAMPBKIJ, 83 ing the coal, requires an investment of money, and that John would be entitled to a reasonable per cent upon his investment in case he develops these properties, which must be under the supervision of the parent, and that he could charge for the gas, coal and oil a sufficient sum to meet, first operating expenses of the plant, in- cluding repairs, and second, interest upon his invest- ment, say ten per cent per annum, and that if John wanted to develop these properties under these con- ditions he can do so, otherwise, the parent will develop them for the benefit of all the children. Would there be anything wrong in such a policy, and should not the government loco-parentis do the same with reference to the coal, gas, oil and other minerals of the United States. These are natural properties, and all the peo- ple should have an interest, and private ownership should not be recognized, and the reader will observe in the reading of the gas case set forth as an appendix to this booklet, that the court seems to take about the same view of this question. It is right for the government loco-parentis to pre- serve all property interests of the people, collective and otherwise, and conserve the power sites, coal and all other collective property interests for the benefit of the whole people, and while it is right and proper, we should preserve the Alaskan coal and keep it from falling into the hands of syndicates, we should not forget the coal lands, that are located within the United States, that are now owned by syndicates, the government should ascertain how the titles to these lands have been acquired, and if by fraud, action should be brought to set aside the pretended titles. It is stated in the Wall Street Journal, that the Morgan-Guggenheim syndicate controls seventy-four per cent of the coal lands of the United States, and while there are improved methods in mining coal, which greatly cheapens the output of the mines not- 84 PROGRESSIVE GOVERNMENT withstanding the fact that labor has forced an increase in wages, yet, the price of coal to the consumer has been greatly advanced, and coal is now used as one of the means to force factories into the merger, and if the factory objects to joining the merger, the price of fuel is raised so high that it is impossible for the factory to operate its business, and the only alternative is to join the merger. The question suggests itself, how did this syndi- cate get control of these coal mines, but the answer is apparent, for the greater part of these coal mines were gotten through land grants to railways and procured by fraud, and it is a well settled principle of the law, that fraud viciates all contracts and makes voidable all sales, and would it not be proper for the govern- ment to investigate the methods by which these coal lands were acquired, and if acquired by fraud, insti- tute the proper proceedings to set aside the title. Would not a prudent parent do this, in matters be- tween the members of his own household, and should not the government act on similar lines, as a matter of justice to the people? The government at present is building the Panama canal and is demonstrating what the government can do in a great business enterprise, and is pushing the work with great vigor ; and the methods employed and results achieved, is a surprise to all the nations of the world, as it is doing sucessfully what the greatest cor- poration could not do, in digging this interoceanic canal. The greatest opposition, heretofore offered against government operation and control of great industrial enterprises, is that the government is slow to act; but this objection is now overcome by the push and energy manifested by the government in digging this water- way, and it is now conceded that there is no good rea- son why the government should not act as promptly as BY GEORGE CAMPBELL 85 private corporations, and it has demonstrated its power in this instance to act, even more promptly and effi- ciently in the construction of this enterprise than pri- vate corporations have ever done. The government should now act on the Alaskan coal proposition, and see that this coal is mined for the use of the people in Alaskan cities, and for the coaling of vessels on the Alaskan coast. There is no good reason why the people in Alaska should be com- pelled to buy coal at an enormous price of British Columbia, while the Alaskan field containing better coal and a thousand times more extensive should lie undeveloped awaiting the action of congress and the interior department of government. Let the govern- ment now demonstrate what it can do in handling this Alaskan coal proposition, and if its efforts are success- ful, and there is no reason why they should not be the people of the United States will have an income from these coal fields in royalties, that will soon pay the running expenses of the government, or these re- ceipts could be used in developing other enterprises, that badly need government attention. The digging of the Panama canal has given the people a lesson in paternalism, that should not be lost sight of. There are 35,000 men at work on the Panama canal, and each man is apparently a cog in the great industrial wheel, which is constructing this great inter- national waterway. The President of the United States recently visited the Panama canal zone in company with several other persons among whom was Mr. Authier, who in writing the account of this wonderful waterway has the fol- lowing to say about paternalism. His article was pub- lished in the Review of Reviews of January, 1911. He says: "The result of the organization is the most com- plete example of paternalism in government ever 86 PROGRESSIVE GOVERNMENT known in the history of the world; men are housed, fed and cared for by the government, which also looks after their personal, physical, educational and religious needs. It supplies the schools and pays the salaries of ministers of the gospel, and of the entire organization, Colonel Goethal is the head and absolute chief, within rea- sonable limitation of law. Each man is a cog in this wonderfully smooth working machinery which is digging the canal and solving the prob- lem of an international waterway, that has been the dream of the centuries. "The victory which sanitation has gained over the pestilent conditions of a tropical country, has made it possible to solve the canal problem. Today the isthmus is as healthy a place as can be found anywhere in the tropics. A trip over the canal zone will show pipe lines running in every direc- tion and these carry oil designed to eliminate the disease spreading mosquito, and yellow fever is now unknown on the isthmus. "The 35,000 laborers employed on this canal in addition to drawing a much higher salary, than he could obtain in the United States, the Panama employe finds his lines cast in pleasant places. The government looks upon him as a ward. He is provided with quarters, a modern house, in case of a married man, and his house is furnished, he receives free medical attendance and medicine, free fuel, free water and free lights and ice is delivered at his door at cost, and he has free hos- pital service. "He is eligible to membership in any of the social clubs, the government furnishing the club house with bowling alley, pool and billiard tables ; superintendent and Stewarts for which he pays $10 a year; the money being used by the club for the purchase of books, magazines and other ap- purtenances. If he belongs to church, he finds a church furnished and a preacher employed. He has free books, free schools and free school sup- plies, and his children are taken to school and re- turned to their homes in government conveyances ; and if they attend high school, they are given BY GEORGE CAMPBELL 87 monthly trip passes over the Panama railway to the high school at Ancon and Gutum. "Through the commissary department, the high cost of living is elimiated. The American em- ployed upon the isthmus eats beefsteak of a finer quality than is usually obtained at home, and at much less cost. The commissary department un- der the management of Major Wilson runs special trains across the canal zone each day carrying fresh vegetables, fresh meats, fresh eggs, etc., and at a lower price than would have to be paid in New York or Chicago." If the government can so thoroughly care for its subjects in the Panama zone and eliminate the high cost of living, should it not be equally zealous in pro- tecting the people of the United States at home, against the combination that corners the food and other sup- plies necessary for the very esistence of the people; charging them exorbitant prices that cannot be justi- fied on any grounds except "That might makes right." Something surely ought to be done along these lines, and whether this be called paternalism or socialism, it does not matter, but action should be prompt and ef- ficient on the part of the government to protect the people from these extortions. The government is now taking the initiative to pro- tect the people against these abuses, and should be assisted in every way possible by the masses of the people, in obtaining evidence and in sustaining the officers that are waging this contest for the benefit of the people. This legal conflict will not be settled in a day, for every stumbling block that money can pro- cure and the best legal minds can devise, will be thrown in the way of the prosecutor to impede his progress in the prosecution of these cases; and the special interests class will seek to divide the people and cause them to think that the officers are not doing their duty or have sold out to the special interests, and the public press will be used to impart by insinuation 88 PROGRESSIVE GOVERNMENT this information to the people, for "divide and con- quer" has been the policy of the corporate interests for many years. The people have had sufficient experience however, along these lines, so they ought not to be deceived in the future; for it is a part of the stock in trade of the special interests to make it appear to the general public through the press and otherwise, that the prose- cutor is incompetent or dishonest, or both, and is not properly representing the interests of the people. When we hear such reports about the men that are fighting our battles, we may safely draw the inference that these officers are honest and competent and are doing their duty in prosecuting these cases without fear or favor; for, if the special interests could use them, then there would be nothing but praise for their ability and efficiency, in the prosecution of these cases ; and the people must learn to sustain those that cham- pion their cause, no matter to what political party they belong. Another matter that should be borne in mind by the voter is election day. That is the one day in all the year, he can greatly benefit his cause, and the voter should not be scared into voting for candidates nor policies that are against his interests by threats of closing down the factory or reducing wages. Let him study all public questions thoroughly and master them if possible, and then go to the polls on election day and vote his honest sentiment without fear or favor; and he should always bear in mind in reaching his con- clusion as to how he should vote, that the special inter- ests want his labor as cheaply as possible, while it is to his interest to receive the full value for his services, 'and hence, his interests are opposite to that of his em- ployer, and it is well for him to thoroughly investigate before voting the same ticket as that of his employer. Some of the large employers of labor are adopting BY GEORGE CAMPBELL 89 a pension system, in order to control the votes of their employes; but this should make no difference in the casting of the ballot, for labor pays the pension all the same, and the object to be attained in granting the pen- sion is easily understood. The government should however, adopt a pension system for all old dependent persons, or those that have become disabled by reason of accident, in any branch of our great industrial system. The person who labors and meets with an accident, that wholly or partially disables him or her from service, or who by reason of age is unable to work, should be properly pensioned by the government, to provide the unfor- tunate against want, and the government certainly owes this consideration to its subjects and it is cheaper in the long run to pension the poor, than to provide poor houses and it is not so humiliating and does not have the deteriorating effect upon the subject that is experienced in sending him or her to the poor house. Germany, England and several other progressive nations have adopted the pension system for the poor, and it has proven highly satisfactory, and neither of these nations would abolish the system. If after reading this booklet, you should come to the conclusion that something ought to be done on the lines herein suggested, get the people together in your precinct and form a "Progressive Government Club" where the people can meet and discuss public questions and get ready for the campaign in 1912. What the American people need is enlightenment on these public questions, and they are ready to act, and this enlightenment will come as the result of a fair, free, intelligent discussion of the issues involved. It does not matter if the speaker is radical, hear him. He may express some ideas that will enlighten the general public and he can do no harm, for the American people can be depended upon, when they 90 PROGRESSIVE GOVERNMENT understand a proposition, to reject such portions as are not conducive to the good of society, and adopt what in their judgment will be to the best interests of the people, hence, the danger lies not in radicalism but in the carelessness of the voter in not being informed upon public questions, and from lack of knowledge, cast his ballot in a manner contrary to his interests. It is the aim of the progressives to put at least one booklet in each voting precinct throughout the United States, and if the recipient of the book will see to it, that a progressive club is formed in his precinct, and maintained until after the election of 1912, he will thereby discharge a great duty to the people that will stand to his credit in the coming years, and relief will come to the country largely by these means, and the rights of the natural man will be recognized at least to the same extent as those of corporations, and these progressive government clubs will be the kindergar- tens for the promulgation of governmental policies, so framed as to make government a business proposition, and at the same time, preserve the liberties of the people and restore that strong independent American manhood and womanhood, that is gradually being crushed out, through the action of the trusts. The people must learn that government either as a city, a county, a state or nation, is under the present industrial system, a business proposition and must be handled as such, and the laws must be changed to meet present conditions. The commission form of government for cities, while it is imperfect, is a step in the right direction, and will eventually make the city a great business in- stitution, supplying the people of the city with the things necessary to their existence, and at a fraction of the cost now charged by public service corporations. If the cities so desire, they can set a price on the necessaries furnished by the cities to their inhabitants, BY GEORGE CAMPBELL 91 that will net the city a margin, and then the price will be much less than prices charged by corporations or individuals for the same service, and the profits thus accruing, can be apportioned among the consumers of the city in the nature of dividends, and this will make all the citizens interested in the business of the city, as they will want the dividends earned from the busi- ness, and similar changes must be made in the law to apply to counties, states and to the nation, and the details must be worked out, and the Progressive Gov- ernment Clubs will prove of great assistance to the people in the solution- of these problems of government. "In the multitude of counselors, there is wisdom." and by a free, fair discussion of all public questions, there will be developed a class of statesmen, competent, honest and fearless in the discharge of their duty, and the year 1912 will mark an epoch in American history, when the people took control of their government and restored to the natural man his rights to live upon the earth, without paying a corporation for the privilege. It is not the intention of the author that the pro- pressive government clubs should adopt the ideas con- tained in this book in order to organize, but the sug- gestions here offered are intended only as guide merid- ians to direct the attention of the voter to certain abuses in government, and point out the remedies for the correction of these abuses, and all discussions should take the broadest possible range in order to develop the facts in issue; but the first aim of the progressive movement should be to "save the county" and leave the details to be worked out later. Every person, whether he be known as a Repub- lican or Democrat, elected to office, should be a Pro- gressive, and the membership of this movement should see to it, that only progressives are sent to national conventions in 1912 to nominate the presidential candi- dates of both Republican and Democratic parties, and 92 PROGRESSIVE GOVERNMENT if the stand patters should succeed in controlling both these conventions, then it would be well for the Pro- gressives to call a conference and ascertain the senti- ment of the membership, with reference to placing a presidential candidate in the field. In this hour of uncertainty, when the stability of Republican institutions of government are threatened by the powers of aggregated wealth, the words of Washington seem appropriate. Washington had in his army many foreigners, who seemed as patriotic to the American cause as did the colonists, but in the memo- rable retreat of Washington from Valley Forge, when the colonial cause seemed dark and foreboding and clothed in the greatest uncertainty; Washington gave the command: "Put none but Americans en guard to- night." The order was obeyed and the world knows the result, and the republic lives as a monument to his wisdom and patriotism. The Progressives, in governmental affairs are now engaged in a great political contest to preserve those principles of government for which Washington con- tended, and the conflict is waged against the powers of aggregated wealth, and will determine whether preditory wealth or American manhood is to rule the nation ; and the issue is f rought with uncertainty, for all history attests the fact that every republic down through the centuries, have been destroyed by predi- tory wealth, in concentrating the w T ealth of the nation in few hands and starving into submission the man- hood and womanhood of these republics. The question suggests itself, will the history of the great American republic, be the same as that of Greece, Rome and other republics, that have preceded it upon the world's drama, and this will depend upon Ameri- can manhood and womanhood. If they organize and educate themselves on all public questions, they can prevent the catastrophe that has wrecked all the re- BY GEORGE CAMPBELL 93 publics of the past. Will they do it? The demands of the hour is for intelligent, honest and fearless officials in the discharge of public duty, just what the progres- sives have thus far proven themselves to be, and these offices should be backed by a strong organized con- stituency, composed of the same sturdy material, and let the order go down the line "Put none but Progres- sives on guard tonight," and the old ship of state will come safe to anchor and the natural rights of men to life, liberty and pursuit of hapiness, will be preserved. IMPORTANT Since writing the foregoing pamphlet, the Asso- ciated Press dispatches contain the information that the bank merger is placing organizers in the field in all the reserved cities to organize citizens leagues to force legislation through the next congress on the cur- rency question, giving to the associated banks, the full pcwer to issue and control the currency of the United States and providing for the retiring of the 346,000,000 legal tender treasury notes, and active work is being done in New York, Chicago, St. Louis and all other reserved cities, and it is time for the people to act, if they are to retain their independence. The banking trust is the most formidable of all trusts and with the absolute control of the money, they can in a few years, own all the property of the United States. No factory can be operated without money. It must buy the raw material and employ labor for which it must pay money. If the banks will not furnish the money to operate the plant, it must close down and the ownership pass into the hands of the banking 94 PROGRESSIVE GOVERNMENT trust, and so with the railways and all the other indus- tries. Think of it. All taxes are payable in money, and if the banks get complete control of the money and refuse to make loans, the property of the people will be sold for taxes and the banks will buy it in, as they alone will have the money to enable them to do so. Pliney tells us that when the banks of the Roman Em- pire had gotten complete control over the money, that they formed a merger and refused to make loans and withdrew the money from circulation and the people could not pay their taxes and that the property of one province after another, equalling in area some of the largest states of the Federal Union, were bid off by the banks, and that less than three per cent of the peo- ple, as represented by the bank merger, owned 97 per cent of all the property of the Roman Empire ; and the old Roman spirit that had conquered the world, died within them, and the people became serfs and were afterward bought and sold with the land. Is history to repeat itself in the decline of this re- public and is American liberty to be crushed out by the money merger now in process of formation, and on which legislation is to be forced during the session of the next congress. The banks will succeed unless the people organize to protect their interests and banking by the government in the interest of the people as out- lined in this pamphlet, can alone preserve the liberties of the people ; and if adopted will inaugurate and main- tain a business prosperity throughout the land never before experienced in the history of the nation. The people should see to it that progressive govern- ment clubs are organized in every voting precinct, and all other questions should be held in abeyance, and the money question alone taken up and kept before the people until it is settled, as the banks are forcing this question upon congress, and a delay upon the part of BY GRORGK CAMPBELL 95 the people in organizing and educating themselves to meet this issue, means the success on the part of the banks and the ultimate destruction of the independence of the people and their subjugation to the money trusts, the same as it was in Greece, Rome and Egypt. There are many things embodied in this pamphlet, that will seem visionary to those that have never studied these questions, for anything we do not understand seems more or less visionary to the average citizen. When Joseph Ross, about forty-seven years ago, said that within fifty years electricity would be used to carry the human voice to distant parts of the country and that people would be able to talk to each other, hundreds of miles apart and recognize the voice of those talking, he was called visionary and was dis- charged from the telegraph office where he was em- ployed, but nevertheless, the telephone is here and Ross is vindicated although he lost his job because he had ideas in advance of the period at which he lived. For- tunately, the people have became more liberal, and they are not so apt to consider an idea visionary be- cause they do not understand it, as they did a genera- tion ago ; but if the facts in this pamphlet are not in accordance with their ideas, by discussion, they will evolve the truth, but for the present, the people should unite upon the one question that is being forced upon Congress with reference to our currency and should hold all others in abeyance ; for the welfare of the coun- try and the liberties of the people is involved in this issue. President Taft in his address of June 21, 1911, be- fore the State Bankers' Association of New York, fully endorsed the plans of the monetary commission of which Senator Aldrich is chairman. Mr. Taft, as reported in the press, said : "There is no legislation, I care not what it is, 96 PROGRESSIVE GOVERNMENT tariff, railroad, corporation, or of a general pol- itical character, that at all equals in importance the putting of our currency system on a sound basis, as proposed in the national monetary com- mission plan. "In all well regulated banking and currency systems of the old world, the power to control cash reserves and the issue of bank notes to be used as currency, is placed under the control of a central bank, recognized by the government and given the necessary authority. "A monetary commission was appointed, of which Senator Aldrich was made chairman, and it is a non-partisan commission, and I dwell with great emphasis upon this fact, for our hope lies in getting support from both political parties. "The system may be roughly described, as an association of seven thousand national banks, or- ganized on a representative basis, to include the entire country, with a great central bank at its head to issue all circulating notes." President Taft, has thus given a brief of the bank- ing plan in as few words as possible, and we might say, the plan is correctly stated; and if we will make a careful study of the plan, we will observe that it is a revival of the old United States Bank in an aggravated form ; for the charter of the old United States Bank that Jackson vetoed, called for one central bank with twenty-five branches ; while the Aldrich plan calls for a central bank with seven thousand branches, to in- clude all national banks, and cover every portion of the territory of the United States ; and these banks will not only receive their circulating notes from the central bank, but also orders which will be obeyed by the seven thousand branches, scattered throughout the length and breadth of the land. Perhaps it will be well for us to briefly examine some of the charges against the old United States Bank, that caused Jackson to veto the re-chartering of that institution, and these may prove a guide to us, BY GEORCxE CAMPBELL v )7 and influence our action in the consideration of the Aldrich plan. Thomas H. Benton in his thirty years in Congress, shows that the old United States Bank spent over three million dollars in subsidizing the press, politi- cians and men of influence to support the bank measure when it was up before Congress for the re- chartering of the bank ; and after the veto of the bank charter by President Jackson, it was claimed that Jackson had slain the bank, but Benton said : "Jackson has not slain the bank. The bank is a wounded tigress and has flown to the jungles, and at a time when ye think not, she will return and pounce upon the country, and she will bring her whelps with her," and we can certainly recog- nize the tigress with her whelps in the Aldrich bank plan. Honorable W. T. Kelly in a speech stated : "In Philadelphia, the bank would order the business men to hold public meetings in its behalf, in order that they might understand who were the friends of the bank ; and would appoint places for the assembling of different trades, in order that their employers might see who of their workmen had opinions in opposition to the bank." Mr. Berkley, in referring to the tJnited States bank, and the power it exerted over the people and the business of the country used the following lan- guage : "The bank is a colossal money power, its arm is in every state by means of its branches, and its power over the country bank and over the busi- ness of the country, and over public men who were its debtors and retainers, seemed to have been absolute; and with its organization under a single head, it issued its orders in secret to be obeyed in all places by all its subordinates at the same moment." President Jackson in Volume 3, of Messages and Papers of the President, on page 6, says : 98 PROGRESSIVE GOVERNMENT "The bank increased its loans $28,025,766.48 in sixteen months, and it was confidently believed that the object of this immense extension of its loan, was to bring as large a portion of the people as possible under its power and influence, and it was disclosed that some of these largest sums were granted on very unusual terms to conductors of the public press. In some of these cases, the motives were made manifest by the nominal or insufficient security and by the large amount dis- counted, and by the extraordinary time allowed for payment, and especially by the subsequent conduct of those receiving these accommodations. "Having taken these preliminary steps to obtain control over public opinion, the bank came into Congress and asked a new charter. Many docu- ments and articles were printed and circulated at the expense of the bank, to bring the people to a favorable decision upon its pretenses. Those Whom the bank appears to have made its debtors, for the special occasion, were warned of the ruin which awaited them should the President be sustained; and attempts were made to alarm the Whole peo- ple, by painting the depression in prices of prop- erty and produce, and the loss, inconvenience and distress which it was representing, would im- mediately follow the re-election of the President, in opposition to the bank." President Jackson in speaking of the conduct of the bank, calls the attention of the people to the fact, that a bill was drawn by the United States against France, for a part of the indemnity due the United States on a claim against that nation ; but it was not thought for a moment, to enforce the payment of this claim by our government, as France had rendered the United States a great service during the Revolutionary war, when such services were needed, and this bill was placed, after being drawn by the United States, in the bank to be presented through the proper channels to the French government; and the United States govern- ment merely took credit in the bank for the amount of the bill, and no money was paid ; but the bank in viola- BY GEORGE CAMPBELL 99 tion of the instructions of our government, sold this bill to England, the enemy of France, in order to annoy and embarrass the French government, that was un- prepared at that particular time to pay the bill, of which fact this government had knowledge; but through English channels this bill was protested, and came near involving the United States in a war with France; and on page 12 of the volume referred to, President Jackson says: "The allegations which have so often circulated through these channels (the bank) that the treas- ury was bankrupt, and that the bank was sustain- ing it, when for many years, there had not been less on an average, than six millions of public money in that institution, might be passed over as a harmless misrepresentation; but when it at- tempted by substantial acts to impair the credit of the government, and tarnish the honor of the country, such charges require more serious atten- tion. "With six millions of public money in its vaults, after having used from five to twelve millions for more than nine years without interest, it became the purchaser of a bill drawn by our government on that of France for about $900,000, being the first installment of the French indemnity. "The purchase money was left in the use of the bank, being simply added to the treasury deposit. The bank sold the bill in England and the holder sent it to France for collection, and arrangements not having been made by the French government for the payment, it was taken up by the agent of the bank in Paris, with the funds of the bank in his hands. Under these circumstances, it has through its organ, openly assailed the credit of the government and has actually made, and per- sists in a demand of fifteen per cent, or $158,- 842.77 as damages on protest of this bill, when no damages or none beyond some trivial expense, has in fact been sustained; and when the bank had in its possession on deoosit several million dollars of public money, which it was then using for its own benefit. Is the fiscal agent of the gov- 100 PROGRESSIVE GOVERNMENT ernment which thus seeks to enrich itself at the expense of the public worthy of further trust?" Again on pages 16 and 17 of the same volume, President Jackson, in referring to the bank says : "If, indeed, this corporation holds in its hands, the happiness and prosperity of the American peo- ple, it is time to take alarm. If the despotism be already upon us, and our only safety is in the mercy of the despot, recent developments in rela- tion to his design and the means he employs, show how necessary it is to shake it off. The struggle can never come with less distress to the people or under more favorable auspices than at the pres- ent moment." Volumes might be printed, with reference to the arrogance and insolence of the United States Bank, and its use of force in coercing the government of the United States and compelling it to keep hands off of the bank; but we will only give one more quotation, and this will be from President Jackson, and appears in Volume 3 at pages 108 and 109 of "Messages and Papers." The President says : "Circumstances make it my duty to call the at- tention of Congress to the bank of the United States. (Supposedly) created for the benefit and convenience of the government, that institution has become the scourge of the people. Its inter- ference to postpone the payment of a portion of the national debt, that it might retain the public money appropriated for that purpose, to strength- en it in its political contest, the extraordinary ex- tensions and contraction of its accommodation to communities, its corrupt and partisan loans, its exclusion of the public directors from a knowledge of its most important proceedings, the unlimited authority conferred upon the president of the bank to expend its funds in hiring writers and procuring the execution of printing and the use made of that authority; the retention of the pen- sion money and books, after the selection of new agents, the groundless claims to heavy damages BY GEORGE CAMPBELL 101 in consequence of the protest of the bill drawn on the French government, have through various channels been laid before Congress. 'To the needless distress brought on the country during the last session of Congress has since been added the open seizure of the dividends of the public stocks to the amount of $170,041.00, under the pretense of paying damages, costs and inter- est upon the protested French bill. This sum con- stituted a portion of the revenues of the govern- ment for 1834 upon which the appropriation made by Congress was based. It would as soon have expected that our collectors would seize on the customs, or the receivers of our land offices on the monies arising from the sale of public land, under the pretenses of claims against the United States, as that the bank would 'have retained these divi- dends. Indeed if the principal be established, that anyone who chooses, can set up a claim against the United States, and may without authority of law, seize on the public property or money where- ever he can find it, to pay such a claim ; there will remain no assurances that our revenue will reach the treasury, or, that it will be applied, after the appropriation, to the purposes designated in the law. The paymasters of our army and the pur- sers of our navy, may under like pretenses, apply to their own use money appropriated to set in mo- tion the public forces, and in time of war, leave the country without defenses. This measure re- sorted to by the bank, is disorganizing and revolu- tionary, and if generally resorted to by private citizens in like cases, would fill the land with anarchy and violence." Is it possible with this arraignment of the United States Bank, that the people will re-charter this insti- tution in an aggravated form, to prey upon the people and to "boss" the government as was the case with the United States Bank ; and we have only given a few of the many instances that might be cited, showing the arrogance of the bank, and its total disregard of the rights of the people and the laws of the United States, which it openly set at defiance on various occasions. 102 PROGRESSIVE GOVERNMENT In the history of the past we find that nations have arisen, reached the zenith of their glory, and have fallen into decay, and we find, that the decline of all these nations, is due to one cause, the concentration of the property of the country in few hands, and in each instance under a similar banking system to that pro- posed by the Aldrich plan; and Egypt, Greece and Rome serve as examples of what happens when the peo- ple leave it to the so-called financiers, to make and en- force the financial policy of a great nation. Plinney tells us with reference to Rome, that when the banks refused to make loans to the people, and began to take over to themselves the property of the citizens, that 'The people gave themselves up in despair in their fields, as beasts of burden lie down beneath their load and refuse to rise. The disintegration of society was almost complete. All public spirit, all generous emotions, all noble aspirations of men shriveled and disappeared, as the volume of money shrank, and prices fell. As men decayed, wealth accumulated in the hands of the few. Not only did whole provinces become the property of one man, but usury existed in so frightful a form that even the virtuous Brutus received sixty per cent for the use of money.' ' If the Aldrich plan of banking is adopted in America, the history of the decline of Rome will be the history of the decline of the American Republic; for money is governed by the same law, that governs all other commodities, and this law will apply in America the same as it did in Rome, and the other nations of the past. It has been observed, that if only a part of a crop of corn is harvested, the supply being lessened, and the demand remaining the same, the price of corn ad- vances as compared with all other commodities, and we say that corn is high ; and a unit of corn (the bushel) will buy more money or more of any other BY GEORGK CAMPBELL 103 commodity than it would, if corn was plentiful and therefore, cheap; and the same law of exchange ap- plies to wheat and all other commodities including money; and this natural law applies to money, in a much greater degree, than to natural products of the soil. If corn is scarce, and therefore high in price, there is substituted for it, some other cereal, which lessens the demand, and the case is the same with all other natural products ; but not so with money. Money has no substitute, but on the other hand, it is a substitute for everything else. If I owe Jones one hundred bushels of wheat, and do not deliver it, he has a right of action against me, and goes into court and obtains judgment for the value of the wheat, and this judgment is payable in money; and the money thus becomes a substitute for the wheat, and so with all other products ; and even a person that has his character assailed, goes into court for vindica- tion, and the court and jury find that a certain number of dollars is an adequate compensation for the damage done to his character, and thus it so happens that money becomes a substitute for all things, but there is no real substitute for money ; and yet, it is proposed by the Aldrich plan to turn the issue and control of the cur- rency over to a central bank, with seven thousand branches, and this power is to be used in the interest of the bank, to further its own gain and advantage, as opposed to that of the people. Are the people of the United States ready to sur- render this attribute of sovereignty, to an irresponsible banking corporation to be used in its own interest? If so, the American Republic will perish by reason of the concentration of the property of the country in the hands of the bank, and a monarchy will arise in its stead, to protect the property interests, owned and controlled by the bank. This is the object of the law, 104 PROCxRESSIVE GOVERNMENT and it was taken from the monarchies of the old world and is designed to subjugate America. If the Aldrich bill is enacted into a law, there is no place provided where the people can get money only from the bank, and if the bank refuses to loan, the people will have no money with which to pay debts and taxes, and their property will be thrown upon the market, to be bid off by the bank, for such sum as the bank sees fit to pay, and with the ownership of the property of the country, there will come a demand for a "strong government" for the protection of its prop- erty rights, and hence, the monarchy will be estab- lished — this is the history of the other republics, and must repeat itself in America, under like conditions. But perhaps some will say that the bank will not own all the money at one time; that the people will have large sums on deposit, that will not belong to the bank, and in case the bank should adopt the policy of not loaning their funds, the money on deposit would be subject to check; and suppose we admit this, and we will also say the same was true in 1907 at the time of the panic, but the bank did not allow the people to draw their money, and held it, and could it not do the same thing in the future? The banks as now organized have too great power, even in the absence of the Aldrich plan of banking; and they are now forming a bank merger to be operated from one single head, to affect the very purpose that is sought to be accomplished by the Aldrich plan, and the people should defeat it. Our banking system as it now exists, should be changed, and the national bank should be abolished, and there should be substituted govern- ment banking either direct or through municipalities similar to that of France. The government of France does its own banking, through the postoffice and through municipal banks operated under government supervision. I have a let- BY GEORGE CAMPBELL 105 ter from a Counsel General, representing the French government, and he states that at each postoffice throughout France, there is a window devoted to no other purpose than to receive the funds of the people ; and the funds so deposited, draw a rate of interest, that would equal about two per cent in American money, and the depositors can draw their funds at any time they deem proper, principal and interest. The French government also incorporates municipal banks under government control, where the people can always borrow money at a rate of interest, which would equal about three per cent per annum in Ameri- can money, and the funds are always on hand to ac- commodate the people, if they have the security for the loan. Why not have a similar system in America? There is nothing to hinder a county or a city in America (having the necessary population and proper- ty valuation) from organizing a banking department and getting its circulating notes from the government the same as do the national banks at the present time ; and at a rate of interest (which the government calls a tax) of one-fourth of one per cent semi-annually, or one-half of one per cent per annum, on the notes in circulation. Suppose Coffeyville with her 18,000 population and property valuation assessed at $11,000,000 should con- clude to organize a banking department for the city, which can be done as easily as organizing a water or electric light department, or the department of trans- portation. On a proper application from the City of Coffey- ville, the government of the United States would char- ter a banking department for the city, and issue cir- culating notes to the amount of say, ten per cent of the assessed valuation of the city, and authorize the bank- ing department of the city to loan these funds at three per cent per annum in such amounts as the business of 106 PROGRESSIVE GOVERNMENT the people may require. Under such a system, if a per- son needs money and has the security for the loan, he will borrow the needed funds from the banking depart- ment of the city, and use it so long as it would net him a margin above three per cent per annum; and when it does not do so, he will return it to the banking depart- ment of the city, and the people will have an elastic currency, conforming to the natural law of supply and demand, and the municipality would get the benefit of the difference in interest between the one-half of one per cent paid to the government for the use of the money, and the three per cent interest on the loans made to the people. The City of Coffeyville like all other cities is in debt. It owes about $700,000, on which it pays an annual interest of six per cent, or in round numbers $42,000 per annum. These bonds, I presume will run on an average thirty years or more, for municipalities are not paying their indebtedness, but going deeper in debt, which policy will probably continue for many years. In fact, as long as the city is growing and ex- tending its limits into undeveloped territory. Let us take the bonded indebtedness of the City of Coffeyville, $700,000, and compute the interest upon this for the period of thirty years at six per cent per annum, and we have a total in principal and interest that the city must pay of $1,960,000. This sum in- cludes the principal of the bonds $700,000 and $1,260,- 000 in interest. Now suppose the city would organize a banking de- partment and carry these bonds herself, instead of al- lowing the banking and trust companies to do so. By organizing the banking department, the city would get the $700,000 from the government at one-half of one per cent per annum, which would equal $3,500 a year ; and in thirty years, the amount paid by the city to the government for the use of its money, would amount to BY GEORGE CAMPBELL 107 $105,000, while the interest upon the bonds at six per cent for the thirty years, would be $1,260,000 ; and if we now deduct the $105,000 paid to the government for the use of the money, from the $1,260,000 of interest paid on the bonds, we would have a balance of $1,165,- 000 standing to the credit of the banking department of the city. Now if we should take the amount of the bonds $700,000 from the $1,165,000 we have a net bal- ance of $465,000 to the credit of the city after wiping out all indebtedness. Hence, municipal banking in thirty years would pay the entire bonds of the city, principal and interest, and would leave a net balance in the banking department of the city of nearly half a million dollars — saved to the city, by the difference in the rate of interest. Would not such a system be much better for the people than to allow these vast sums of money to go to increase the millions in the bank mer- ger, controlled by Morgan, Rockefeller and others? Think about it, and discuss it with your neighbors. Under a proper law, the government of the United States could furnish this money to the municipal banks as easily as it now furnishes to the national banks, and the municipal banks could use the same sort of currency that the national banks now use, or could use United States treasury notes, and all of this currency, whether national bank or treasury notes, would be government obligations, just the same as is the currency now fur- nished to the national banks, and which is proposed to be furnished to the bank, under the Aldrich plan. A municipal system of banking would even be more safe than the present banking system, or the plans pro- posed by the Aldrich monetary commission; and the money could not be cornered and business depressed, and the amount in circulation would be governed by the demand, and there would never be any more panics in the United States, and no bank mergers or failures ; and there would be no discrimination shown by the municipal banks between individual borrowers. Why 108 PROGRESSIVE GOVERNMENT should not Congress enact a law," authorizing govern- ment banking through the postoffice and municipali- ties as herein outlined, and settle the currency question for all time? Under such a system of banking, the City of New- York (which is referred to as being unable to ever pay its debts) could establish a banking department with as many branches as would be necessary for the conven- ience of its people, and by the saving in interest alone on her vast indebtedness, would pay off all of her obli- gations in a few years and would be free of debt ; and other cities could do the same, and with municipal bank- ing for counties and cities, with such branches as the convenience of business demands, would be solved the currency question for all time in the interests of the people, and would put the business of the country be- yond the influence and control of the banks. The banks are now forcing the money issue upon the people, and will attempt, it is alleged, to coerce Congress in the passage of a bill organizing the seven thousand national banks into one great merger, oper- ated under a single head, as proposed by the Aldrich plan. The means to be employed by the banks, to force Congress as appears from a circular is to gradually draw in the bank loans, cease to discount commercial paper, create a money stringency, force property upon the market in payment of debts, and thereby depress prices and cause stagnation in business, resulting in the closing down of factories and the throwing of large numbers of people out of employment; and it is sug- gested that the carrying into effect of these measures, will bring a sufficient pressure to bear upon Congress to force it to enact a law giving force and effect to the Aldrich plan of banking; and the press will probably be subsidized to publish articles in the interest of the banks but none in the interest of the people, as was the BY GEORGE CAMPBELL 109 case in the fights for the rechartering of the United State bank. These measures proposed, to force the hands of Congress are certainly heroic, and indicate that the contest will be fierce; but if so, it will be the sooner over, and the fight can be made at this time with less inconvenience and loss to the people than perhaps at any future period ; and it is to be hoped that the peo- ple and Congress will not be frightened or coerced into supporting a bank merger of any description ; but will accept the gage of battle thrown down by the banks, and defeat their propositions, and establish govern- ment banking, (in lieu of the national banking system) either direct or through municipal banks, which will give to the people the profits on the issue of circulat- ing notes, and the benefits of an elastic currency that cannot be cornered, and will do away with panics ; and forever divorce the business of the people from the influence and control of the banks, and will thereby insure prosperity to the people for all time. Let the people unite upon this one issue of government bank- ing, and stay with it, and success is assured. As fast as progressive government clubs are formed, a report should be made to some person designated hereafter until such time as a general conference is called and a national organization affected with head- quarters at which to report. 110 PROGRESSIVE GOVERNMENT APPENDIX THE GAS QUESTION. This appendix contains the circulars issued in the campaign on the gas question in the City of Coffeyville in the spring of 1911, and no changes have been made in either except that the circulars are numbered as appears in the brackets at the top of the page. The law is quoted in the circulars, provides that the city can fix maximum rates for gas, and after trying in vain to get the city officers to fix a maximum rate, I concluded in 1909, to be a candidate for City Attorney on this issue and ascertain the sentiment of the people, and the platform on which I made my campaign is contained in Circular No. 1, and I ran 973 ahead of my ticket and was elected. I prepared an ordinance after my election, fixing maximum rates for gas and put it up to the Mayor and Council to pass, but it was voted down by a large ma- jority. The city then adopted the commission form of government, which made it possible for the citizens to frame an ordinance and attach it to a petition signed by not less than twenty-five per cent of the voters of the city and present it to the commissioners and the commissioners must either pass the ordinance without amendment or submit it to a vote of the people within twenty days. After the commission form of government had been adopted, I prepared an ordinance fixing maximum rates for gas. The rate for factories being 3 cents per thousand cubic feet and the rate for domestic purposes I2V2 cents per thousand cubic feet, and there was at- BY GEORGE CAMPBELL 1 1 1 tached to this ordinance a petition signed by fifty-six per cent of the voters of the city and the commissioners adopted the ordinance as the sentiment of the people seemd so overwhelmingly in favor of it that it seemed useless to submit it to a vote. The gas company then filed its petition in the United States District Court, for an injunction to enjoin the city from putting in effect the rates established by the ordinance, and a temporary injunction was granted pending the final hearing of the complaint, and while the case was still pending in the United States Court, the spring election of 1911 came. The City Attorney was not an elective officer under the commission form of government, so I went to sev- eral of the candidates for Mayor and asked them to make the gas question an issue, and some of them promised to do so if no other candidates did. I waited for them to announce themselves upon this question until a few days before the primary when I again called upon them and asked if they would make the gas question an issue, but they refused to do so, as they did not want to antagonize the gas company. I then told them that the people should have an op- portunity to express themselves upon this question, and I had concluded if no other candidate would run upon this issue, that I would be a candidate solely for the purpose of submitting this question to the people, and I thereupon entered the field with this object in view. I made no canvass, and told the people not to vote for me on personal grounds, but vote solely upon the gas question, and that a vote for me was to continue the fight that seemed nearly won for the city, and that a vote for the other candidates was an instruction to me not to continue the fight and agree on the part of the city to make the temporary injunction permanent as per my instruction from the city commissioners, and thus end the contest. 112 PROGRESSIVE GOVERNMENT The campaign that resulted was the most active ever known in the history of the city and the gas com- pany made concessions to the factories, as I am in- formed by the management, and the factories made the fight for the gas company and were successful, and the gas company was endorsed by a large majority, and in accordance with the vote of the people, I made the temporary injunction against the city permanent and the ordinance adopted by the city fixing maximum rates for gas, was thereby annulled. In this connection, it is but fair to state, that the City of Coffeyville has a large floating vote consisting of men temporarily employed in the factories and in addition to this, about one-fifth of the vote of the city is colored. The next day after the election, a merchant of the First Ward of this city called at my office and paid his bill of $15.00, and I noticed the payment con- sisted of fifteen crisp new one dollar bills, silver cer- tificates. I asked him. where he got these bills as they were uncommon and he told me he took them in in the course of business the day before (the day of the primary) and the night following. I asked him how many of these bills he had taken in and he said he had not countetd them, but he would say one hun- dred and perhaps more. I asked him if he had ever received one dollar bills before in large numbers and he said this was the first time in the course of business he had received one dollar bills. That silver dollars was the kind of money that he generally received in the course of business and $1.00 bills were seldomly re- ceived, and that he did no call to mind that he had ever before received crisp, new one dollar bills. I asked him from whom he received these one dollar bills and he said principally from colored people, but that he received some of them from the whites. I then investigated and found that the other mer- chants had received these bills in large numbers and one druggist had taken in in the course of business, BY GEORGE CAMPBELL 113 during the day of the primary and the night following one hundred and eleven of these bills. I had thirteen of my one dollar bills remaining of the fifteen that were paid me by the merchant and I sent these to Governor Stubbs of Topeka and asked that the matter be investigated, and that the person or corporation guilty of buying votes be ascertained and prosecuted to the full extent of the law. The governor ordered the investigation and I have received word from the attorney general and the detec- tive agency of the state, that the investigation will be made in the near future, but in the meantime, I sent the numbers of many of these bills to the Treasurer of the United States and asked him to ascertain to whom these bills were sent. He did so and informed me they were sent to the gas interests in another city about twenty-five miles distant in Oklahoma, and the ques- tion suggests itself, how did they find their way to Cof- feyville on the day of this primary in such large quan- tities? Of course, we have our opinion and many facts to sustain it, but will wait for the investigation on the part of the state. This case is given somewhat in detail that the peo- ple may understand what they will have to contend against in trying to regulate and control public service corporations, and it will be observed that not one state- ment in my circulars have been denied, as the facts are in my possession to sustain every allegation, and yet, the people voted by a large majority to sustain the gas company to the detriment of themselves, their families and the city in general. 1 14 PROGRESSIVE GOVERNMENT (Circular No. 1, 1909.) TO THE VOTERS OF COFFEYVILLE I am a candidate for the office of City Attorney, on the Independent ticket, and as it will be impossible for me to see all the voters, I address you this circular, which embodies my platform. / am in favor of a greater and more prosperous Cof- fey ville, and realize, if our city is to grow and become great, conditions must be changed, and made more favorable to the laboring people, for after all is said, it is the "bucket brigade" that makes a prosperous city, and we should not lose sight of this fact in our desires to advance the city's interests. At Independence, gas for stoves is furnished at the flat rate of $1.00 a month per stove; and lights for 5 cents each per month ; and Independence has a tele- phone service at $1.00 per month for residence phones, and $2.00 for business phones per month. At Dearing, the smelter rate for stoves is $1.00 per month, and 10 cents per light; and at Mound Valley, from $1.00 to $1.50 per stove, and 10 cents for the first light, and 5 cents for each additional light ; and if you will compare these rates with the rates that prevail in Coffeyville, it is apparent that there is something wrong, and there is a lack of a "Square Deal," some- where. The law is ample to protect the people of Coffey- ville against excessive gas and telephone rates, and I have called the attention of two Mayors and several councilmen of our city to the law, but could get no action. SECTION 784 OF THE GENERAL STATUTES OF 1905 READS' AS FOLLOWS: The Mayor and Council shall have the power by Ordinance : "To prescribe and fix maximum rates and charges, BY GEORGE CAMPBELL 115 and regulate the collection of the same, for all water, electric light, heat, potver, gas, telephone service or any other commodity or service furnished to such city or to any of the inhabitants thereof by any person or corporation now authorized by such city by virtue of a franchise ordinance, or that may hereafter be author- ized by virtue of a franchise ordinance, to furnish water, electric light, heat, potver, gas or telephone ser- vice, or any other commodity or service, to such city or its inhabitants. The rates and charges so prescribed sliall at all times be reasonable and just; and if any city shall fix unreasonable and unjust rates and charges, the same may, at the instance of any producer or consumer, be reviewed and determined by the dis- trict court of the county in which such city is situated" This law has been in full force and effect for several years, and while Independence acted under this law, and fixed maximum rates for her public service cor- porations, nothing has been done on this line in the City of Coffeyville. WHY NOT? If I am elected to the office of City Attorney, I shall frame an ordinance fixing just and reasonable maximum rates on gas and telephone service, and put it up to the Mayor and Council to pass it ; and if I am elected upon this issue, it will show the sentiment of the people, and I have no doubt but that the Mayor and Council will pass the ordinance. I was told if I made this question as issue in my campaign, I would be defeated, but I have disregarded the warning, and have made it an issue just the same. ''The die is cast," and it is now up to the people to decide whether they want such an ordinance or not. A VOTE FOR ME IS A VOTE FOR THIS ORDINANCE. In this connection I want to say a word to the women; they are interested in the home and its wel- fare and should have more power to protect it. They should have equal privileges with men, including the right to vote on all questions. Why not? They have to live under the same government, pay their taxes and are amenable to the law equally with men. I hope they will all vote at this election, and if Judge Snelling does not want their votes (and I suppose he does not) then I wish they would pass to the Independent ticket, 116 PROGRESSIVE GOVERNMENT and put a cross in the square to the right of my name, and I shall certainly appreciate their kindness and they will not regret their vote in the future years. Now, I want to say a word to the Republicans who are in the habit of voting a straight ticket. If you put a cross in the circle at the head of your ticket, you have done all the necessary marking in voting a straight ticket. Now, if you will pass to the Independ- ent ticket, and put a cross in the square to the right of my name, then your ticket will be counted for the entire Republican ticket except City Attorney, and your ballot will be for me for that office. Don't you think you had better vote in this manner? Judge Snelling almost distanced me in the primary race, but I want to come under the wire first this time, and "score" and want you to help me. Will you do it? Respectfully submitted, GEORGE CAMPBELL. 15V GEORGE CAMPBELL 117 (Circular No. 2, 1911.) UNCLE SAM: Well, I reckon the progressive movement has burst the shell of the two old parties, and it does not look as though it could be put back. It is a strong fledgling and will no doubt cause corpor- ate greed a vast amount of trouble. The question involved, is whether the natural man, or special interests are to rule this nation, and the forces are now gathering for a final contest, that will shake the continent. 118 PROGRESSIVE GOVERNMENT Kansas will, no doubt, be the storm center in this movement, as it has been in all other movements, for the betterment of conditions. Do you know, that the first time in history, that corporate wealth was ever defeated by the people, was in Kansas; and the case is known as the OSAGE CEDED LAND CASE, and involved the title to 800,000 acres of land, lying mostly in Labette and Neosho counties. The M., K. & T. Railway Company, and the L., L. & G. Railway Company had procured from the gov- ernment of the United States patents to these lands, and they wanted the settlers to pay the full value of these lands, and also for the improvements placed thereon by the settlers; and after many attempts to compromise without success, the settlers organized "THE SETTLERS' PROTECTIVE ASSOCIATION," and prepared to fight the case in the courts, and after many reverses, they succeeded in having the Supreme Court of the United States set aside these patents, and the settlers recovered the lands worth about seven mil- lion dollars. The question that is now being fought out by Cof- feyville against the gas company, does not alone con- cern the people of Coffeyville, but there is a principle involved that effects, to a greater or less extent, near- ly every city in the state, and they are looking to Cof- feyville; and many are asking the question "has the people of Coffeyville the spirit of those hardy pioneers of the early seventies," that successfully contended against the railway companies for their homes? The legal contest now being waged between the City of Coffeyville and the gas company, is being taken up by the other cities and letters have been received from New York, Chicago, Kansas City and other points, inquiring about the questions involved in this suit; and it now looks as if the gas question was fast becoming a state, and in a minor degree, a national question; as gas is an article of fuel, of nearly equal importance to that of coal, and the people have a vested interest in these natural properties, and state and national aid should be invoked in their conserva- tion to the people. Kansas sounded the alarm in 1860, that aroused BY GEORGE CAMPBELL 119 the nation and struck the shackles from nearly four million slaves and destiny is again knocking at her door and demanding a solution of the fuel question, especial- ly as it applies to gas, and Kansas bids fair to become the storm center of the new progressive movement, that is born to CONSERVE OUR NATURAL RE- SOURCES and to bring industrial freedom to the peo- ple, and limit the power of aggregated wealth. The question is now up to the Coffeyville voter to say whether he favors the people or the Gas Company. MAKE YOUR PREFERENCE KNOWN ON ELECTION DAY. THE GAS QUESTION To the People of Coffeyville: About two years ago, I was a candidate for the office of City Attorney, and the main issue was the GAS question, and I compared the prices of gas in Coffey- ville with those of Independence, furnished by the same company, and showed that in Coffeyville the people were paying nearly four times the price, that was be- ing paid at Independence, and I stated if elected, I would prepare an ordinance correcting these abuses, and put it up to the Mayor and Council to pass. I was elected, and prepared the ordinance under section 1273 of the Compiled Laws of 1909, which reads as follows : "A CITY OF THE FIRST-CLASS HAS THE POWER "To prescribe and fix maximum rates and charges and regulate the collection of the same for all water, electric light, heat, power, gas, telephone service or any other commodity or service fur- nished to such city, or to any of the inhabitants thereof, by any person or corporation now author- ized by such city by virtue of a franchise ordi- 120 PROGRESSIVE GOVERNMENT nance or laws of this state, or that may hereafter be authorized by virtue of a franchise ordinance or laws of this state, to furnish water, electric light, heat, power or telephone service, or any other commodity or service to such city or to its inhabitants. The rates and charges so prescribed shall at all times be reasonable and just and if any city shall fix unreasonable or unjust rates and charges, the same may, at the instance of any pro- ducer or consumer be reviewed and determined by the District Court of the county in which such city is situated." This law seemed sufficient to enable the city to correct these abuses, and I framed the ordinance with this object in view, but it was voted down by the Mayor and Council. The commission form of government was later adopted by the city, and I again framed an ordinance covering these discriminations, and this ordinance was forced through the commission by petition, but before it went into effect, the city was enjoined by the United States District Court and the injunction was issued on the ground, that the ordinance was "confiscatory of the company's property" in not allowing the company a sufficient revenue to pay operating expenses and ten per cent upon the capital invested, which sums the law says a reasonable rate must provide for. You will note in this connection, that the law quoted above says, that the rates fixed by the ordinance shall be "reasonable," and that if any city shall fix unreason- able and unjust rates, the same may at the instance of any producer or consumer, be reviewed and determined by the District Court of the county in which such city is situated. This law clearly contemplates, that the appeal shall be taken from the city to the District Court of the county, but the gas company ignored this provision of the state law, and filed its suit in the United States Dis- trict Court, and Judge Pollock ruled that he had juris- BY GEORGE CAMPBELL 121 diction to hear this case, and that the question pre- sented was whether or not the price of gas fixed by the city ordinance was, confiscatory, in not providing a suf- ficient revenue to meet the fixed charges above men- tioned. The gas company holds a franchise from the city granted several years ago, which gives the company the right to install meters (at the expense of the company) and in accordance with the terms of this franchise, I provided in the city ordinance for flat rates and meter rates, and the city was very liberal with the company in the fixing of rates, and gave it a larger price for gas, than in equity the company was entitled to receive. The meter rate fixed by the ordinance, is 12V&C per thousand cubic feet for gas for domestic purposes, and 3c per thousand cubic feet for gas for factory purposes, and the gas company was at the time and is now fur- nishing gas to the citzens of Independence at Sc per thousand cubic feet for domestic purposes, and as low as 2V2C per thousand cubic feet for factory purposes, and if the persons who are using the gas for domestic purposes in Independence, pay their bills before the tenth of the succeeding month, they get a discount of 3c per thousand cubic feet, making the actual rate on gas for domestic purposes in the city of Independence 5c per thousand cubic feet, while in Coffeyville, the peo- ple pay 20c per thousand cubic feet to the same com- pany. The ordinance framed by the City of Coffeyville, allows 12V2C per thousand cubic feet, meter measure, for all gas used for doemtsic purposes, and yet, the company's officers swear this rate is confiscatory, and will not net a sufficient revenue to pay operating ex- penses and ten per cent on the capital invested, which two items the court says, a reasonable rate must pro- vide for. We have a Kansas statute, paragraph 5162 of the 122 PROGRESSIVE GOVERNMENT Compiled laws of 1909, that is known as the anti-trust law of Kansas, which reads as follows : "Any person, firm or corporation, foreign or domestic, doing business in the State of Kansas, and engaged in the production, manufacture or distribution of any commodity in general use, that shall intentionally, for the purpose of destroying competition, discriminate between different sec- tions, communities or cities of this state, by sell- ing such commodity at a lower rate in one section, community or city or any portion thereof, than is charged for such commodity in another section, community or city, after equalizing the distance from the point of production, manufacture or dis- tribution and freight rates therefrom, shall be deemed guilty of unfair discrimination." The penalty for the violation of this law is set forth in section 5,165 of the Compiled Laws of 1909, and reads : "Any person, firm or corporation, violating the provisions of this act, upon conviction thereof, shall forfeit to the State of Kansas, the sum of not less than two hundred dollars for each and every violation of this act ; said sum to be recovered by a suit in the name of the State of Kansas, in any court of competent jurisdiction by the attorney general/' In accordance with the provisions of said law, I filed a complaint with the attorney general against the gas company alleging discrimination against the City of Coffeyville in the sale of gas, and showed there was no good reason why Coffeyville should not receive gas as cheaply as Independence, as it is in the gas field and equally accessible. The attorney general investigated the matter, and the gas company raised the price of gas at Independ- ence to conform to the price in Coffeyville, but was im- mediately enjoined from putting this rate into effect, and as a result, Independence is paying the same price for gas that it paid heretofore, 5c per thousand cubic BY GEORGE CAMPBELL 123 feet for domestic purposes, and whether the company had itself enjoined to evade the provisions of the anti- trust law of Kansas, and enable it to continue its dis- crimination against the City of Coffeyville, the reader can draw his own conclusion. The gas company states in its petition filed in the United States District Court, that it was the intention of the company at that time to charge the City of Cof- feyville 25c per thousand cubic feet for gas for domes- tic purposes, and that this rate was to go into effect immediately, and stated, the company would charge an additional sum of 2%c per thousand cubic feet if the gas bills were not paid on or before the tenth of the succeeding month; and that this rate for gas was a reasonable rate for the City of Coffeyville to pay, and would not more than create a sufficient sum to defray the operating expenses of the plant including repairs, and ten per cent on the capital invested. The records in this case show, that the people of Coffeyville are paying the gas company for gas for domestic purposes, the sum of $95,032.52 per year, and for mill purposes the sum of $75,792.53 per year, but the revenues derived from the sale of gas for all other purposes while it must be large, the city has not been able to get the exact amount, but on the two items, domestic and (mill purposes, we pay an aggregate sum of $170,825.05 per annum, and yet, the company says, that this sum is not sufficient to pay the operating ex- penses including repairs, and ten per cent upon the capital invested, and wants to raise the rate to 25c per thousand cubic feet. The records in this case show that the total ex- penses in the operation of the Coffeyville gas plant in- cluding repairs, extensions, salaries, taxes, etc., is $38,400 per annum; and, adding to this the ten per cent on the capital invested, which at the outside figures would not be more than $25,000, and these two 124 PROGRESSIVE GOVERNMENT sums, aggregated make a total sum of $63,400 per an- num, and this sum according to the company's records should only be collected from the people of Coffeyville on all the gas consumed, to meet the fixed charges, thai the court says a reasonable rate must provide for ; and in allowing ten per cent on the capital invested I have estimated the actual investment at $250,000, while the sworn statement of the officers of the company show the total plant is worth but $133,000 as listed for taxation. Now, if we take the $63,400 from the $170,825.05 we have a surplus, after paying all these fixed cJiarges, and ten per cent upon the capital invested of $107,825.05 per year; yet the company contends that this sum is insufficient and wants to raise the price to to 25c per thousand cubic feet ; and in this connection it says that the city ordinance is confiscatory of their property rights, when as a matter of fact, the rates fixed by the Coffeyville ordinance will provide a fund of more than $120,000 per annum, and the reasonable rate need only provide $63,400. The injunction proceedings, brought against the City of Coffeyville to annul the Coffeyville ordinance, was filed something like six months ago, and of course, it seems to those that are not aware of the questions involved, that this case ought to have been disposed of some time ago, but we must bear in mind that there is more than a million dollars involved, when we take into consideration the life of the franchise; and that such a case can not be successfully tried without a large amount of preparation, in the examination of the law, and the taking of testimony ; and it is not an easy mat- ter to always procure the testimony needed in a case of this magnitude, but good progress has been made in the preparation of the case, and a large amount of record and other testimony has been taken, and the case can be disposed of in the near future ; and the city BY GEORGE CAMPBELL 125 ought and I think will win, as both the law and equity is with the city; as the company, in its franchise agrees to furnish the gas at a reasonable rate, not to exceed the limit placed in the franchise. Rumors have been set afloat that this case has cost the city a large amount of money, but I want to say in reply, that the entire expenses of the legal department of the city under my administration has been only about $160 for the year, and from this fund has been paid all the expenses incurred in this case, in procuring the transcripts of records, taking testimony, and all other expenses of my department, including all other cases; and when we take into consideration that the gas rate has remained 20c per thousand cubic feet dur- ing the pendency of this action instead of 25c per thousand cubic feet, the rate that was to have been charged by the company, the suit has been a good thing for the people of Coffeyville, and has saved them at least $25,000 in the price of their gas. I have been to a great extent handicapped in the preparation and the conduct of this litigation, as it is claimed I am not representing the city, but am trying to force upon the people a litigation that they are op- posed to, when as a matter of fact, I am merely defend- ing the rights of the city. Some of the leading members of the Chamber of Commerce have made these representations to me and also some of the leading members of the Merchants' Organization, and the Mayor and some of the members of the City Commission of Coffeyville, seem to take the same view, and say, they believe a majority of the peo- ple are against me, and I was directed by the Mayor to consent on the part of the City for the court to make the injuetion against the City permanent and thus, annul the City Ordinance. I told the Mayor I could not do this and stated if the proposition was submitted to the people, and they 126 PROGRESSIVE GOVERNMENT directed me by their vote to do so, I would cheerfully comply with their wishes, as I considered this a matter resting wholly with the people of Coffeyville, and not with the officers ; and that they had a right to be heard before any such action was taken. Sometime after this, I talked to some leading at- torneys in Fort Scott, and went over the records of this case with them, and they are considered among the ablest attorneys of the state, and have a large practice in the United States courts, and these attorneys stated they would assist me in this case, and in the further proceedings necessary in recovering from the gas com- pany, what is due the city, for the use of the streets ; and that if the city would allow them a reasonable com- mission on what they collected, they would indemnify the city against all costs; and I laid this proposition before the Mayor and Commisison, and the Mayor stated the gas company did not owe the city anything, and the same idea was advanced by some of the Com- missioners present, and the Mayor stated that the Com- missioners had unanimously agreed that I should go to Kansas City before the court and consent that this in- junction he made permanent against the City of Cof- fey vile, and it was stated that a resolution had been prepared to officially instruct me to do so, and that I was under the control of the City Commisison and that this was their order and they wanted it complied with. There is no doubt that under the commission form of government, the City Attorney is subject to the or- ders of the Board of Commissioners, as the law says in so many words, "That the City Attorney shall be under the immediate control of the City Commission," but while I realize the force of the Commission's position, I felt that this was a matter that ought to be placed before the people, and that I was not justified in tak- ing these steps unless ordered to do so by a vote of the people. The position, taken by the Mayor and Commission- BY GEORGE CAMPBELL 127 ers in this case, while it has placed me at great disad- vantage with the court, there are grounds for their belief that a majority of the people are against me. It will be remembered that thirteen hundred petitioners stated in substance that they were satisfied with the treatment from the gas company, and wanted the ordi- nance annulled; a similar request was made, so I am informed, by the Chamber of Commerce, and by the Merchants' organization of the city, and when the mat- ter is presented to the court that thirteen hundred peti- tioners, the Chamber of Commerce, the Merchants' organization and the City Commision are all against me, and they represent to the court that I am trying to force upon the people what they do not want, it is easy to comprehend the effect this will have upon the court; and if the City Commissioners would say in their resolution, they wanted the injunction made per- manent, and that the power to represent the city in this action, had been taken from me by the Board of Com- misisoners, would not the court under these circum- stances deny me a hearing and make the injunction permanent in accordance with the sentiment of the resolution passed by the City Commission? I do not like to be guilty of insubordination, but I feel in this instance, that I ought to be instructed by a vote of the people, if this injunction is to be made permanent; and under no condition would I consent for the injunction to be made permanent, unless the proposition had first been submitted to the people and they had so instructed me by their votes. I have waited now until the fourth of March, to see if a candidate for Mayor would announce himself in a manner to make the gas question an issue, but none have so announced themselves up to this time ; and in order to get the sentiment of the people upon this prop- osition, I shall be a candidate for Mayor at the ap- proaching election, tuith this question as my platform, 128 PROGRESSIVE GOVERNMENT and those that are in favor of sustaining the city in this action, and in recovering from the gas company what justly belongs to the city under the franchise, and who believe that the gas company should be controlled and that a supply of gas under the proper pressure should be provided for the people, the same as in Kansas City, should vote for me; and those that believe the injunc- tion should be made permanent and the city should lie down, and not defend or protect its rights should vote against me, and in case a majority are against me I will obey the will of the people and appear in the United States District Court and consent that the in- junction be made permanent. I have done a large amount of work in this case, and while I do not like to abandon it, yet, if the people say by their ballot, that it is their will that this injunc- tion be made permanent, and all my labor be lost, I shall cheerfully yield to their instructions, but if the people endorse my action by their ballot, then in the words of General Grant "I shall fight it out on this line if it takes all summer," and I have no doubt as to the result, if the people are backing my action. To counteract some of the unkind things that have been mentioned I desire to say, that if elected to the position of Mayor, I shall endeavor to do my whole duty to the city, and shall give to the people, an ener- getic, clean, conservative administration, and shall see that the expenses of the city are kept within its reve- nue, and shall endeavor to so manage its affairs that there will be a surplus instead of a deficit in the de- partments of the city government, and shall endeavor to make corporations pay for the use of the streets, as Kansas City is now doing, having recently instituted a suit to recover $280,000 for the use of the streets. I do not intend by this to involve the city in expen- sive litigation in settling these questions, but I know of able firms of attorneys, who will take these cases BY GEORGE CAMPBELL 1 29 on a reasonable percentage of what they recover for the city, and will indemnify the city against all costs and expenses. If elected, I shall also ascertain from reliable sources the cost of installing a gas plant to be owned by the city, and after the facts are all marshalled, I shall then call public meetings at which this and other questions will be discussed, and if in the judgment of the people, after knowing all the facts, it is thought to be to the best interest of the city that a plant be installed, so the city can offer inducements to factories to locate here, the proposition will then be submitted to the people for their action, and from the information now at hand, it seems highly probable, that a gas plant can be estab- lished without one cent of cost to the taxpayers of the city, and that the entire expense, can be paid from the profits upon the gas. The city is now making some experiments with ref- erence to gas development, and has a few gas wells, some of which are coupled with the waterworks plant of the city, and in a few days, the electric light plant will also be operated with city gas. If the city had created a debt for the costs of drill- ing the wells, piping the gas, paying the royalties, pay- ing interest upon the money, etc., after paying all these expenses and providing for the payment of the entire debt in four years with interest upon the same, and all running expenses, it brings the price of gas that the city has now developed at a little less than four-tenths of a cent for each one thousand cubic feet, and the city is offered eight thousand acres of approved gas land with many strong producing wells near by, and can lease this land at a nominal price, and there are many other tracts within approved gas territory, and of easy access to the city, that can be had at very reasonable royalties on the gas wells that we use. {Continued on page 133) In the early seventies, the people on the OSAGE CEDED LANDS were engaged in a giant struggle with the M., K & T. and L., L. & G. Railway Companies, for the posesssion of their homes. These companies had procured patents from the government, for every alternate section of land on a strip, twenty miles wide, and extending ten miles on either side of the railroads. These companies not only wanted the settlers to pay the full value of land, but in addition thereto, wanted them to pay for the improvements placed thereon by the settlers ; and the settlers had made these improve- ments in good faith, thinking they were on government land, that they could enter for their homes. All attempts at a compromise failed, and as a last resort, the people organized the "SETTLER'S PRO- TECTIVE ASSOCIATION" to contest the rights of the railway companies in the courts. At first, we were beaten on three occasions, but we fought on ; and after more than five years, we succeed- ed in beating these companies, in the United States supreme court, and the court declared that these patents were illegally issued to the railway companies, and set them aside; and the settlers, by reason of their bull dog tenacity in remaining in the fight, secured for themselves this vast tract of land, embracing over 800,000 acres, and worth about SEVEN MILLION DOLLARS. During the time this fight was being waged, of course, there were a large number of the settlers, whose fight we were making, became impatient, the same as in this gas question, and wanted the case finally de- cided, or the fight given up, as they said it was injuring the country, but as a matter of fact it was a good ad- vertisement. In 1874, to quiet these people, who kept up their constant fire from the rear, which was worse than the one in front, I wrote up a detailed account of the case, and had it published in pamphlet form, for distribu- tion, that the people might know all the facts ; and the pamphlet found its way to Chicago, and was published by the Chicago Express, and there was comment made upon it in various other papers, and in my statement of the case, I told the people, if they would so conduct themselves as not to prejudice the court, we would win. About this time there was an Editorial Association that convened in Chicago, and among the questions talked over, was the OSAGE CEDED LAND CASE, and one of the members who attended that meeting, and who was connected with a Denver paper, returned by the way of Mound Valley, Kansas, where I lived and he visited me over night and I found him an agreeable, genial fellow. At that time, although a mere boy, I was quite well posted as to what the government was doing, in its donations of bonds and lands to the railway companies, and this question was discussed freely with my visitor, and the next morning he took quite an interest in my breaking team and plow, as at that time I was en- gaged in breaking prairie, and in about ten days after his visit, I received his paper, with a cut, of which the foregoing is a facsimile. This cut represented me as plowing under COR- PORATE RULE and the different classes of monopoly, and plowing up the PEOPLE'S RULE, and other things necessary for the welfare of the people; and while it was intended as a "burlesque" I rather liked the symbol, and concluded to reproduce it here, as there are many things in Coffeyville, figuratively speaking, that should be PLOWED UNDER, and many things that ought to be PLOWED UP, for the betterment of the city, and that the people may understand the af- fairs of the city in detail, and remedy existing evils. BY GEORGR CAMPBELL 133 ( Continued from page 129) A party was to see me a few days ago from the Oklahoma fields, and said his company would sell the city all the gas it desired at 5c per thousand cubic feet ; and if the city so wished, his company would put in a city plant with mains extending to all parts of the city and fix a price of 15c per thousand cubic feet on all gas for domestic purposes, and 5c per thousand cubic feet on all gas for factory purposes, and that if the city would turn over to his company all the patrons of the Coffeyville Gas & Fuel company, his company would receive the price above stated upon the gas for four years, and at the expiration of the four years his com- pany would turn over to the City of Coffeyville the city plant, free of all indebtedness; and his company would then continue to sell the city all the gas it desired at 5c per thousand cubic feet and deliver the same at the city limits. I have written several cities that own their gas plants, for information, and their answers are all on the same line, that city ownership gives the city large returns on the investment, and at the same time lessens the price of gas to the consumer. For lack of space I cannot give these letters, but will give an extract from the letter of F. M. Abbott, mayor of the City of Chanute, which is as follows : "A franchise was granted twelve or fourteen years ago to the Prairie Oil & Gas Company, who put in a part of our present plant. Our city bought this plant of them for $62,500. We paid for it out of the profits on the gas in three and one-half years. We have since extended to twice its former size. We have it paid for and don't owe a cent on it. Our profits on gas per month ranges from $1,000 to $3,000. No gas is used in town for any purpose, but what is purchased from the city, except one glass factory, and in case of emer- gency it buys its gas of the city. Respectfully yours, "P. M. ABBOTT, Mayor." 134 PROGRESSIVE GOVERNMENT Mr. Abbott states elsewhere in his letter that the price charged for gas for domestic purposes is 15 cents for each thousand cubic feet, and for factory purposes, not to exceed 10 cents per thousand cubic feet, and that the city has a splendid service much better than that renderd by private corporations. Since writing the above Mr. Cahill tells me that an officer of the gas company inforced him that the com- pany would not furnish gas for the Coffeyville factories after the present year; that the gas was playing out. This reminds me of what an employee of the gas company told me nearly two years ago. He said the officers of the company were talking among themselves that the gas was then piped to Kansas City, St. Joseph, Topeka and other points, and that the company could sell all its gas for 25 cents per thousand cubic feet, and that it would not furnish Coffeyville gas at a less rate. One of the officers stated that 25 cents was all right for the people of Coffeyville for domestic purposes, but that the factories could not pay that price and live. It was suggested by one of the company that the factories could go out of business, or use some other kind of fuel ; that there was plenty of oil that could be had for that purpose. The question then came up about the fran- chise, that was granted by the City of Coffeyville to the gas company and the question was asked if the company was not compelled under the franchise to furnish cheap gas for factories at Coffeyville. One of them said, as a matter of law that might be the case, but there was always a way around, and the company could make a contract with the factories and embody in the contract a clause giving the company the right to turn off the gas from the factories, by giving them thirty or sixty days notice. One of them stated, that he had a plan that he be- lieved would work the best, and that was for the com- pany to put down no more wells in or near the group BY GEORGE CAMPHKU, 135 that supplied Coffey ville, and not clean out any of the old wells, and gradually let them fill in and exhause themselves, and then say to the factories of Coffeyville that the gas "is played out," and that they must use some other fuel, and give them notice that their gas would have to be turned off, and that it was impossible for the company to furnish it. It would seem as though this policy is being pur- eued by the gas company, for it is said the company quit putting down wells in or near the group that sup- plies Coffeyville, and has not cleaned out the old wells, and is allowing them to gradually exhaust themselves, and are circulating the report that "the gas is playing out," when as a matter of fact they are piping out of this field 354,000,000 cubic feet every day. The gas company in its franchise from the city agrees to furnish gas to the city for all purposes at "reasonable rates" and the court said a reasonable rate was not what the company could get for its gas but, such a rate as would net a sufficient amount of money to pay the operating expenses of the plant in- cluding repairs and ten per cent upon the capital in- vested. The court also added the statement, in referring to the Coffeyville ordinance, as follows : "Take the three cents per thousand cubic feet for factory gas, and Yiy^cents per thousand cubic feet for domestic gas, put these two together, and if they net a sufficient sum to cover these fixed charges, the rate is reasonable." We have already shown that the rate fixed by the Coffeyville ordinance (three cents per thousand for factory gas, and 12V2 cents per thousand for domestic gas) will net the sum of $120,000 a year, while a rea- sonable rate need only to net the sum of $63,400 to meet all the expenses as defined by the court, and hence the Coffeyville ordinance if put into effect, will net the company over $50,000 after defraying all these fixed 136 PROGRESSIVE GOVERNMENT charges and yet, the company says this rate is confis- catory and wants the injunction against the ordinance made permanent. From the statement of the facts, as above set forth, it is evident, that the city has its case virtually won, but if the people desire to abandon the contest, they will have an opportunity to express themselves at the coming election, and I hope that the voters will express themselves in a manner so emphatic, that it will leave no doubt as to where they stand upon this question. Respectfully submitted, GEORGE CAMPBELL. JOHN BULL : Zounds ! I hope the Coff eyville peo- ple will not continue the fight against the gas company, for I want America to create all the millionairs pos- sible. The sworn value of the Coffeyville gas plant, as listed for taxation, is $133,000, and the annual income, above operating expenses, is in round numbers $200,- 000 a year, and this vast profit will soon create mil- lionaires, and I can then create titles, and exchange for these Coffeyville millions. This is a business propo- sition with me, and I will create all the titles necessary to cause a transfer of the American millions to my kingdom. 138 PROGRESSIVE GOVERNMENT MONEY RULES IN AMERICA, and when I get control of the money, I shall then bear rule. My dress will be changed to conform to the changed conditions of my kingdom, and my lion will be remodeled, and natural history will contain a new and valuable acqui- sition. Why should the people of Coffey ville object to pay- ing these high prices for gas, when they know by so doing they can create millionaires? It must certainly be some satisfaction to these people who pay the bills, to see the management of these corporate interests, sport their diamonds and ride in their touring cars, while their own families go afoot. But walking is generally good in Coffeyville, and there should be no complaint on these lines. [CIRCULAR NO. 3.] ARE INTERESTED IN CAMPAIGN Factories of Coffeyville Take a Stand — Sounds Public Warning — Future of the City at Stake and Voters are Cautioned About the Apprach- ing Election. The undersigned are vitally interested in the present campaign for the selection of mayor and commission- ers of Coffeyville. We are especially opposed to the candidacy of those who have adopted as an important plank in their platform, the determination to force the fight against the gas company for the reduction of their rates. We believe the interest we have in this matter, the attention we have given it, the investigations we have made, enable us to reach conclusions as to the situation BY GEORGE CAMPBELL L39 that should be entitled to at least as much considera- tion as that of any party not greatly interested in the matter and who is using the subject as a stepping stone to political preferment and honor. The undersigned represent interests employing approximately 1,800 men supporting 7,200 of our population. The interests we represent are such as are peculiarly dependent upon an abundant and cheap fuel supply. Without this fuel supply, many of these factories must close, these men must be depried of their employment and become com- petitors in other labor markets with other men.. We submit that a man with a good job is better able to pay for 20 cent gas than a man with no job to pay for 5 cent gas. We know, to a positive fact, that, regardless of the irresponsible statements of any candidate, no gas field with any promise of furnishing this city an ade- quate supply of gas exists ivhere there is the slightest possibility of securing the necessary money to pipe it to Coffeyville in quantities that woidd supply her fac- tories. Statements to the contrary, not backed by the in- formation which makes the proof of the facts stated positive and certain, are the tricks in trade of the demagogues and wily politicians, and should be con- demned. If this unlimited supply of gas, anxious to come to us, can be located, we will welcome it with open arms, but we want facts, not dreams. The indus- tries who have signed this article have gone into the field and tried to get territory for a supply of gas to run their factories, but have failed to find a permanent supply. We have more at stake than the success or failure of a single politician, and the business men and laborers of Coffeyville have to choose, in our opinion, between the loss of a pay roll of $125,000 per month on the one hand, and the possible small saving of fuel bills on the other. We are firmly convinced that no possible hope exists at this time or will ever exist again in the future, for 140 PROGRESSIVE GOVERNMENT an adequate supply of gas for manufacturing purposes on the scale on which it is conducted in Coffeyville, ex- cept through the channels which now practically con- trol the gas supply of the mid-continent field. From this source, we are convinced we must draw our supply or not at all. The ultimate failure of the supply, whether it be one or ten years, not at Coffeyville but everywhere, is admitted by all those who have had experience in this matter. As this occurs manufacturers will be driven to other and more expensive fuel, but it is of the utmost importance that those of Coffeyville shall not be driven to this high priced fuel before others are compelled to use it and thus be driven out of business by their com- petitors. We repeat, that the only hope we have been able to find lies in the source from which we are now drawing supplies. If the supply exists as stated by some of the candidates, if those who control it are axious to come to Coffeyville, if there are the tremend- ous profits in the business claimed, we see no reason why they should not come at the present time and under the present conditions, as a division of the profits claimed would be a splendid income. If the present agitation continues we may rest assured that we will get no additional supply, which has been promised us, from those who are now supplying Coffeyville and oth- er points, because other cities are urging an increase, of such supply at prices far in advance, for manufac- turing purposes, of those charged here. If the laboring man is willing to sacrifice his job for a dream he should support these men. If his home, the education of his children, the food and clothing for his family are more important to him than the few cents involved in this gas question he should stand for a candidate who is willing to admit the facts and stop an agitation that threatens the prosperity of us all. The assertions made by some of the candidates when we consider the conditions at Iola, Gas City, Cherry- BY GEORGE CAMPBELL 141 vale and many other gas towns in Kansas, are nothing short of amazing. The drilling of new wells in old territory has seldom resulted in developing wells of any importance. The cleaning of old wells, while help- ing matters a little, has resulted in nothing of import- ance from a manufacturing standpoint. No resources or expense has been spared at Iola, but the results have been practically valueless. If it were not for the mil- lions spent in piping gas from distant fields, many more of Iola's industries would be standing idle and her people unemployed or seeking employment from the factories of Coffeyville in competition with our people. These are stubborn facts not dreams or argu- ments made for the purpose of securing honors of the people. Those who shut their eyes to these established facts are unsafe, impracticable or demagogues. We are fighting for the permanency of our institu- tions and the employment of our employes, and upon this foundation the prosperity of this city depends. We believe there is everything to loose and nothing to gain in a continued fight against the present source of our supply of fuel, and we respectfully ask the voters to say that it shall end. It is a fact that Indepndence, Gas City, Iola, Cher- ryvale, Chanute, Fredonia, Neodesha and Mound Val- ley are now paying more for factory gas than is Cof- feyville. We believe if the voters will carefully consider the facts as they exist that they will not vote for a candi- date who is opposed to the factory interests and through them the community at large. Coffeyville Window Glass Co. Ball Bros. Glass Mfg. Co. Coffeyville Shale Brick Co. North Star Mfg. Co. Coffeyville Stonware Co. Kansas Oil Refining Co. 142 PROGRESSIVE GOVERNMENT Kidcloo Milling Co. Standard Vitrified Brick Co. Coffeyville Foundry & Machine Co. Ludowici-Celadon Co. Coffeyville Vitrified Brick & Tile Co. Ozark Smelting & Mining Co. National Refining Co. Sunflower Glass Co. Robinson Packer & Machine Co. Andersen Manufacturing Co. Cudahy Refining Co. Rea-Patterson Milling Co. National Sash & Door Co. (Circular No. 4, 1911.) To the People of Coffeyville: I did not intend to have anything more to say with reference to the gas question. I set the facts out in my circular in a manner that I thought all could under- stand and I was willing to abide by the results. I was told, however, that the gas company, by its attorney and certain city officials, were preparing a circular that would be placed before the general public at so late a date that it could not be answered, and that this circular would be signed by certain factories with- in this city; that the gas company would compel the factories to sign this circular under the threats of turning off their gas. In the Herald last night appears this circular, in which I am branded as a demagogue and an enemy to the city, and it seems as though this circular should be answered. The circular purports to be signed by nineteen Cof- BY GEORGE CAMPBELL 143 feyville industries, but as a matter of fact, from a legal standpoint, it is not signed by any one. A corporation can only act through its officers and no officer's name is attached to either of these signa- tures. Any one can write the name of the Coffeyville Window Glass company, but that does not mean any- thing, unless the name of an officer is attached thereto. If the signature had been The Coffeyville Window Glass Company, by its President , or Secretary, or Business Manager, or some one else authorized to sign the name of said company, then there would have been some force to the signature, but the names are withheld from all the signatures that are attached to said circular. I want to call the attention of the voter to the fact that even in this circular not even one statement con- tained in my circular is contradicted, and the reason is, the gas company knew that I had the proofs in my office to establish every statement contained in my cir- cular. And I ask the voters to read it again and see if it does not contain a clear statement of facts and that I am trying to sustain our city's industries instead of attempting to destroy, as alleged in the gas com- pany circular. All that I am asking is that the gas company abide by its contract with the people of Cof- feyville, as embodied in the franchise, and certainly there is no demagoguery about this. The gas company through its franchise agreed to furnish gas at reasonable rates for all purposes to our city and its consumers during the life of the franchise, and it cannot turn off the gas from our industries. And it also agreed to pay a certain per cent into the city for the use of the streets and public squares. Section 6 of the franchise granted by the City of Cof- feyville to the Peoples Gas Company reads as follows : 'That in consideration of the granting of this franchise the City of Coffeyville hereby reserves the 144 PROGRESSIVE GOVERNMENT rentals for its streets, alleys, avenues and public grounds provided for in chapter 82 session laws of 1897 of the State of Kansas, which said rentals shall be ascertained and collected as provided by said chap- ter 82 of said session laws and the ordinances of said city hereinafter passed." Then turning to chapter 82 of the session laws of 1897 we find the following provision: "No renewal or original grant, lease or contract shall be made with any such private corporation by any city of this state without reserving rents and pro- viding for the collection of the annual rental value for the use of its streets, alleys, roadways or squares, which shall be done and ascertained by allowing first, legitimate expense of conducting such corporations' plant, including all necessary repairs; and second, by allowing interest at the rate of not more than six per cent per annum on the capital invested as ascertained under the provisions of the preceding section, unless the council and mayor are petitioned to allow a greater rate than six per cent by at least three-fifths of the bona fide taxpayers of such city based on the last as- sessment rolls, which expense and per cent on the capital invested being deducted from the gross earn- ings of said corporation, such municipality shall through its proper officers collect the net balance of said earnings as rentals for the use of the streets and alleys, roadways and squares of such city, and as the city's income on the franchise leased by said munici- pality to any such corporation, and as such rentals, said net proceeds shall be paid into the treasury of such city on the first day of January and July of each year, after the making of such grant, lease or contract for the operation of such plant." There has never been one cent paid by said gas company for the use of the streets, alley, roadways and public squares of the city, and there is now due the city under this franchise upwards of a half million dollars, and now the question arises, "Will the voters of Coffeyville release the gas company from the pay- ment of this honest indebtedness?" The gas company gave a bond that it would abide BY GEORGE CAMPBELL 145 the conditions of its contract and said bond was signed by the gas company through its president and attested by the secretary of said corporation, and said bond was signed by the following individuals: E. S. Rea, F. 0. Weis, Daniel Wells, J. F. Savage, F. D. Benson J. T. Wettack and W. H. Read. So there is no question about the bond being good, and it looks as though there should be no objection to settling these matters in court as it was designed by our forefathers and has come down to us through the ages, that the court is the place to settle our difficulties when we cannot agree among ourselves. The threats that are intimated in the cir- cular should not deter any one from doing his duty and a corporation should receive no more consideration than an individual, and the question remains whether the voters of Coffeyville have the nerve to go to the polls upon election day and discharge their duty with- out fear or favor of any citizen or any corporation. We need the spirit that was manifested by the Com- mander of the old "Minnesota at Hampton Roads in 1862. At that time the old rebel ironclad, known as the "Merrimac," sailed into Hampton Roads and at- tacked our navy and had sunk some of our vessels and flashed the threat to the commander of the old "Min- nesota" to haul down his flying colors or he would sink his Yankee boat — and the old commander, though he was at a disadantage, the American spirit was aroused in him, and he flashed back the message, "You hydra- headed monster and all your rebel clan, I will never strike my colors; you may sink me and be damn'd." This is true American manhood, and I hope every voter in Coffeyville will go to the polls on election day and do his duty regardless of any threats. Be honest with yourselves and the interests of the city and let re- sults take care of themselves. The circular says that these companies have en- deavored to find gas for manufacturing purposes but have been unable to do so in sufficient amounts to an- 146 PROGRESSIVE GOVERNMENT swer their purposes, and that if there is as much gas as I have stated that they would like to be informed. But at the same time they do not want me to inform them, for the reason they are trying to prevent my election. I stated in my circular that if elected I should call a public meeting and lay these facts before the peo- ple and if they decided to develop gas, or purchase from another company, and thought this would be to the best interest of the city, that I would then submit the proposition to the voters by calling an election and let the people decide it. There is no doubt that there is plenty of gas within easy access of the city, and even if we should decide to procure gas from the Hogshooter district in Oklahoma, what we pay the gas company in one year for gas would build a pipe line to the Hogshooter district and would leave a surplus of $25,000 — and this is no dream, but is a positive fact and susceptible of proof. In conclusion I desire to say that the city is in bet- ter position to make this fight now than it will ever be again, and if the people sustain the gas company the future historian who shall write the history of Cof- feyville will date its decline from the surrender of the city to the gas company, and Iola, Humboldt and sev- eral other cities serve us as an example of what hap- pens where the people of the city do not contend for their rights but surrender to the gas company. So far as the office of mayor is concerned, I care nothing about it, and if elected I would willingly re- sign to some one else that would successfully carry for- ward this contest. I have done the best I could in the past several months, and nearly single handed, to pro- tect the interests of the city, and now it is up to the voters whether they will sustain the arm that has fought their battles or whether they will strike it down and embrace their enemies. Respectfully submitted, GEORGE CAMPBELL. BY GBORGE CAMPBICLL 147 (Circular No. 5, 1911.) VOTERS ATTENTION The Manufacturers' Circular did not mention George Campbell. Why does he believe he was refer- red to as a Demagogue? The circular was issued by the Manage?^ and Officers of the concerns represented.. Those who doubt this, call any of the offices by phone. The Gas Com- pany has net forced nor requested these concerns to sign the circular, but have, in every way and at all times done everything possible to assist us, and have kept us informed candidly of the gas situation. If Mr. Campbell is a loyal citizen of Coffeyville, he will not demand that he be elected mayor before he is willing to furnish the information he claims to have, which no other person has been able to obtain, and which is of such vital importance to Coffeyville and her citizens, the location of an adequate gas supply and the means by which he will obtain it. We honor those who are public spirited, not those whose benefits to the community are only given in ex- change for honors previously demanded and granted. S. C. HOOVER, President Manufacturers' Association. L. E. ROBINSON, Secretary. [P. S. Since the election a well was drilled on a part of one tract of land of 2,300 acres offered to the city and the well discharges 16,000,000 cubic feet of gas a day, showing that there is an abundance of gas out- side of the Coffeyville Gas Company's holdings, and a careful inquiry fails to show that the management of the same Coffeyville fathers made any investigation outside of what the gas company told them.] AUG § Ml •v » v: i.. u