hibitions against the consolidation of railroads, that the laws of trade are stronger than the laws of men. England does not interfere with combinations in trade and manufacture, but relies and successfully relies on free trade competition, open to the world, to prevent unfair prices. America, notwithstanding its vast wealth, unlimited resources, and high intelligence, shuts out foreign competition.

But the economic features of trusts are of little consequence, compared with the effect on the character of Americans. The same objections that apply to displacing country bankers by branch bank managers, apply to displacing independent manufacturers by local managers. A superintendent differs from an owner. Decision of character is more important than a favorable balance sheet. A fighting captain is better than the sutler in the commissary. A hundred thousand resourceful, vigilant, and successful competitors mean more to the general tone of America than a thousand men carrying out orders from headquarters. The local independent manufacturer is a power in his town and rarely thinks of moving to a large city, but the trust is apt to dismantle isolated factories and concentrate them in cities. It is a question as to how far the big overcapitalized trusts can compete with foreigners, if the tariff protection is withdrawn. The day of the little manufacturer may come again, and certain it is that he is more valuable in solving American problems than all the trusts that ever were formed. It may be that great combinations with mass production cheapening costs have come to stay, but they are always trying to influence the government to aid them by tariff laws, tax laws, foreign intervention, political appointments, or in other ways, and their methods of influencing government are not always above reproach. Whelpley says, "In the United States Roosevelt was spokesman for a people determined to throw off the rule of capitalistic vested interests. . . . Many thoughtful Americans believe that at no time since the Civil War of over sixty years

ago has the Republic, as it was designed by its founders, been in greater danger than it was at the dawn of the twentieth century, through the commercialized politics of that critical period. Fortunately for all concerned, an intellectually honest man came into the White House, whose interests and mental activities were not particularly concerned with business, a man with supreme political courage, which no vested interest or political ring could bully into subjection. Theodore Roosevelt had his grave faults, and made serious mistakes in policy and in action, but the people of the United States owe him an enormous debt of gratitude as the man of the hour in a great national crisis." 1

There is no danger to American institutions from great fortunes. Those are conservative and their owners timid and quite content to be simply protected. The danger is from ambitious and at times unscrupulous men, straight from the ranks, who direct the great trusts. They know the value of government coöperation and seek it. Here is where the danger lies. The corrective is the character of the people, and when that is lost all is lost. And that character, in the cities at least, is affected profoundly by the trusts. Mass production is destructive of independence of character. A cohesive army of clerks and other employees controlled by a few great organizations, however conducive to cheap goods and increase of comforts, is not conducive to the production of the old type of Americans. The corrective is that this is a vast agricultural country; that the farms still turn out that most valuable crop of all -- young people of primitive habits and virtues; that agriculture is still "King," and that the country folk rise when republican institutions are in danger.

CHAPTER XXI

THE CORPORATION

In an old English case,1 decided in 1613, it is said: "The opinion of Manwood, chief Baron, was this, as touching Corporations, that they were invifible, immortall, and that they had no foule; and therefore no Subpoena lieth againft them, because they have no confcience nor foule; a corporation is a body aggregate, none can create foules but God, but the King creates them, and therefore they have no foules." The average American believes that a corporation is not only soulless, but is also heartless, although not altogether brainless. This is a queer combination and is worth analysis.

It is a curious fact that while the Americans abuse the corporation oratorically, financially, politically, and otherwise, yet they trust it to the farthest limit, farther than they trust individuals. The railroads of the country are intrusted to corporations only. Individuals are not allowed to own or operate them. So also with street railways, gas, electric light, telegraph, telephone, and power companies, and waterworks with rare exceptions. With equally rare exceptions the power of eminent domain is given to corporations alone. So great a trust is involved that the corporation cannot even transfer that trust except with the consent of the state.

Nor is this all. The tendency is to require all banks to be corporations. Private banks are dangerous. The public lose their deposits. Corporate banks, on the other hand, are regulated and examined ad libitum. But who cares? The corporation can be worked, worried, chastised, hamstrung, and even executed without shocking the public conscience.

Then there is the recent change of sentiment as to trust estates, created by a will or during life. More and more the trust companies and banks are being made the trustees. They do not die and they obey the law in administering the trust. Personal trustees of large estates are somewhat under a cloud of late.

And in the recent war corporations were organized by the Government to carry on government activities and escape the red tape of bureaucracy. There, too, they did their part in that mighty rush of men, money, and material to Europe, which enabled the American troops to immortalize Château-Thierry, Belleau Wood, St. Mihiel Angle, the Argonne forest, and the cutting of the German line of communications at Sedan.

The charities of the world are administered by corporations. They preserve, use, and pass the funds on from age to age. They serve without pay, without appreciation, and with very little recognition. They alleviate the sufferings of the world and ask nothing in return. They do their work continuously, unobtrusively, and faithfully from generation to generation. And so in other ways. Choice private libraries are broken up and sold. The corporation alone preserves them. Man is mortal and full of vanity. The corporation is immortal and oblivious to fame.

The corporation is an industrial revolutionizer. It turns real estate, buildings, and machinery into personal property. It owns them, and to represent them issues certificates of stock-personal property. This makes liquid that which was frozen. Three hundred years ago the bulk of property was real estate; today it is personal property. The corporation did it. The corporation drags to the light hidden as well as immobile capital. Capital loaned on notes or mortgages or hoarded or deposited in banks may conceal itself, but capital invested in a corporation shows itself.

And it is the only form of wealth that can be absolutely controlled by the public. The charter may be annulled at the will of the legislature, under the reserved power. It may be "regu

lated" until it is sick nigh unto death. Its misdeeds may be dragged to light mercilessly. It is generally prejudged as an outlaw anyway by investigating committees and grand juries, and fines are meted out to it by the courts with lavish and unsparing hand. It has no friends and is kicked, cuffed, beaten, battered, and knocked around utterly regardless.

Without the corporation great enterprises could not be carried on. It alone can supply the capital. It gathers the savings of millions to do work involving billions. The limited liability of the stockholders is the "open sesame" to the private wealth of the world. It unites the world by union of capital.

The corporation is the only way a man can engage in a hazardous venture and limit his loss and yet take part in the management. Tacitus said the men of the northern races were great gamblers and staked their personal freedom in the game. Tacitus, however, lived nearly two thousand years ago and hence was not familiar with the modern financial acrobat who saves his precious skin by limiting his liability.

And the corporation may be taxed. Taxed indeed! The corporation is considered the legitimate prey of the tax gatherer. The political genius of today lies awake nights thinking up new modes of taxation. What the public is looking for is a political genius who will abolish old ones. As if already of taxes we have not a great sufficiency, it is now proposed that the nation and states shall tax each other's bonds interchangeably. The corporation, however, is the favorite target. It is taxed in multitudinous ways and in every conceivable way. It is capital that is impersonal. Prior to the recent war some of the states paid all of their state expenses from taxes on corporations. Taxes unlimited; taxes in eleven different ways on (1) the franchise; (2) the capital stock; (3) corporate real estate and personal property; (4) the stock and bonds as against the holders; (5) dividends; (6) corporate income or profits; (7) stock transfer-stamp taxes; (8) inheritances of stocks and bonds;