IV

[6]

Issue for November 12, 1918.

[7]

Op. cit.p. 172.

[8]

The War and Democracy, p. 58.

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I have stated my conviction, and the reasons for it, that Socialism is essentially undemocratic and unChristian, as well as unAmerican. Yet after all it is in the practical realm of experience that it has proved to be most lacking and inefficient. To prove this, it is hardly necessary to point to the classic illustrations of the utter failure of Socialism when actually tried in France under the leadership of Louis Blanc and Albert during the days of the Second Republic in the year 1848, or again when tried under the form of the Commune in 1871. The horrors of the extreme form of Socialism known as Bolshevism,as seen in the Russia of 1918, are destined to implant a useful lesson, not soon to be forgotten, in the minds of intelligent people throughout the entire world.

One of the best illustrations of the failure of a practical Socialistic State is that of the "Mayflower" settlement at Plymouth in 1620. In order to raise the money needed for the venture the Pilgrims borrowed seven thousand pounds from seventy London merchants. In order also to provide a species of sinking fund it was decided to accept the suggestion of the creditor merchants that the net earnings of the colonists should go into a common fund for the space of seven years and then should be divided among the shareholders. It should especially be remembered that the Pilgrims were a set of people small in number and as a consequence easy togovern; of a high type of industry and integrity; and that they were united by the strongest of all common and social interests,—that of deep religious conviction. Furthermore, the relative positions in life of the personnel of the entire Plymouth Colony showed a remarkable equality. Their method of living was primitive and most simple in form, without the usual complications of the life of even three hundred years ago, much less of that of today. And yet this communal or Socialistic system in Plymouth resulted in such a marked lack of interest among the inhabitants, the whole arrangement worked so badly, that the settlement verged on failure and destruction. The system virtually was abolished after only three years trial in the year 1623 and good results showed themselves immediately. "Individual effort returned with the prospect of individual gain." The cause of the failure is evident,—the system was opposed to the fundamental facts of human nature.

But what is "human nature"? Let us take a definition from the Socialists themselves. "If the phrase means anything at all, it means man, with his loves and hates, his desire for pleasure and aversion to pain, his noble and ignoble traits, his interests, feelings, beliefs, prejudices, ignorance, knowledge, fears and hopes. All these motives, desires and emotions vary in each individual, some of them usually dominating over the rest, yet all more or less active. Some one or more of them may be cultivated by favorable environment or almost crushed by an unfavorable environment. A saint may be dragged down to hell by adverse conditions and arake win eminence in the same environment. If the cultured educator ... was suddenly forced to earn his living in a vile mining center, his polish would soon wear off, and he would brood over a world that now strikes him as on the whole all right. If cast adrift at sea, within a week the wolf stare of hunger would make him and his associates seriously consider casting lots as to who should be eaten. Later the feast might actually begin and ... human nature find it easy enough to gnaw the shin bone of a fellow castaway. This thing we call human nature is a bundle of emotions and desires that will find expression in different ways, according to the environment in which it is located, as we have seen in the example given."[9]

This is exactly true in thesis, though utterly false in detail. But it is the object of democracy to give equality of opportunity for human nature, starting from the essential point of individual impulse (which is the precise expression of character), to work out the best of which it is capable. On the other hand, it is the object of Socialism, acting through political and economic machinery, to crowd out these varying attributes of human nature and reduce the individual to the mental status of a dull, unthinking animal. Of course human nature always has rebelled against this repression and always will do so in the final analysis. It is impossible for Socialism or any other system of uniform and outward repression to fetter the human soul and it inevitably will fail to do so in the end. It is from an experience ofthe difficulties and dangers, the unhappiness and injustice that will accompany this process of failure, that the opponents of Socialism and the believers in Democracy wish to spare the people of the world to-day.

This failure of Socialism especially is true as applied to Germany. The un-souling of the people has come as the direct result of the use of Socialism by the military autocracy for its own selfish purposes. Also its failure is repeatedly seen in its actual working, and in spite of the German boast of efficiency. The best illustration of this, because the one most used by the Socialists on the other side of the argument, is that of the railroads.

Most of the railroad lines of importance in Continental Europe are owned and operated by the various governments. Ican say from my own personal experience and observation that the only railroads that are really well run, so far as I have traveled, are those under private ownership and direction, as in Great Britain and the United States. I have tried the various trains de luxe and Blitzzüge of Continental Europe and their slow progress and often indifferent accommodations make one long for an English or American express train. And then to hold first-class tickets in Germany, and be refused admission to first-class compartments still empty "because some officials may want them," as was my experience in going from Nürnberg to Mainz, does not add to one's desire for governmental control. The best European trains do not for one moment compare with those of the privately owned British and American railroads.

According to statistics published in 1913, the railroads of the United States were capitalized at $60,000 per mile under private ownership; the government-owned German roads at $109,000 per mile, and this in spite of the far cheaper costs of building. Railroad rates in the United States, both freight and passenger, under private ownership have been among the lowest in the world. The first thing that our government control has brought about is a raise in rates that exceeds by far what the private managements would have dared even to imagine, much less ask of the Interstate Commerce Commission. And this has been accompanied by a marked deterioration of service, all of which can by no means be blamed upon conditions resulting from the war. Poorer service at higher cost is the almostuniversal experience, in the long run, of government-owned public utilities both here and abroad.

The BostonCommercialin 1913 called attention to the fact that in France the year 1912 was marked by the largest increase in gross receipts on record, for both government and privately owned railroads, but the privately owned roads showed an improvement in net earnings almost three times as great as that of the nationalized railroads. These failings noted above are almost inevitably found wherever the government owns the railroads or other utilities, or else these utilities are run at a loss and the difference made up in the tax bills of the people. Government control never is as efficient and economical as private control, even though all questions of political power andinfluence be omitted from consideration.[10]

The important testimony of Mr. W.M. Acworth, an English authority upon railroads, which he gave by invitation before the Senate Committee on Interstate Commerce at Washington, has not been fully appreciated by American public opinion. The National City Bank of New York rightly stressed the importance of thistestimony in one of its bulletins during the year 1918. Mr. Acworth was in this country during the early part of 1917 as a member of the special Canadian Commission on Railways, and he told the Senate Committee that "while American companies have revolutionized equipment and methods of operation, Prussia has clung to old equipment and old methods. This is typical. In all the history of railway development it has been the private companies that have led the way, the State systems that have brought up the rear. Railroading is a progressive science. New ideas lead to new inventions, to new plant and methods. This means the spending of much new capital. The State official mistrusts ideas, pours cold water on new inventions and grudges new expenditure. In practical operation German railwayofficials have taught the railway world nothing. It would be difficult to point to a single important invention or improvement, the introduction of which the world owes to a State railway."

Is it not a rather significant fact that with all their boasted advance in science and learning, the Germans have failed utterly in the two realms of politics, as shown in the preceding pages, and of railroading? And these are the two most extensive fields of the influence of German Socialism.

The American citizen has before him in clear outline the sure result from a continuation of governmental ownership or control as a permanent policy in the United States after the war. As regards railroad personnel, if the positions from top to bottom were filled with Mr.Bryan's "deserving Democrats," as was the case with our diplomatic and consular service in 1913, the results would be as striking, though perhaps in a different and even more serious way.

Of course the Civil Service, which has been a solid measure of reform and one from which we dare depart only at our peril, would probably be called into use and be evaded in exactly the same way as it has been in the past. And even if it were not evaded, we must remember that the Civil Service examinations and rules are not a guarantee of efficiency or excellence. The best that can be said for them is that they are a protection against absolute incompetence and, to a certain extent, against political spoiling. But in a positive sense, the Civil Service is merely a guarantee of mediocrity. Andmediocrity never yet made a success of a great transportation or productive system such as our railroads or industrial corporations. The political possibilities of a "railroad vote" of several million employees of the government need only be referred to, to be feared.

Perhaps no one would suffer more from a policy of government ownership than the present force of railroad employees in the United States. They have won their present positions for the most part by individual achievement, but their future advancement would depend not upon the continued successful handling of their work, but upon either the injustice of political favoritism or the undiscriminating rules of the Civil Service. That some of the employees have not failed to grasp the political possibilities is shown by my ownrecent experience upon a train between Philadelphia and New York. I had a difference with one of the train crew who was collecting the tickets in my car, and which was caused by carelessness and indifference on his part. The employee finally answered my protests by remarking—"Oh well, we don't care so long as Woodrow Wilson is in the White House." The truth or untruth of this statement is not the important thing, but the fact that he made it.

The personnel would tend steadily to deteriorate in efficiency. The successful government employee is the one who follows most closely the beaten track of precedent and past experience. If he departs from this track, he inevitably arouses the opposition of his fellow-employees or of the unthinking part of the public, whousually desire no change. He also takes all the risks of experiment and if he succeeds, the rewards are uncertain and small; if he fails, he personally bears all the consequences. This is the reason for the tendency toward steady deterioration on the part of all public service. Employees of the State must follow the path of absolute conformity to the past. This deadens individual initiative, ambition and inventiveness.

At this point it would be well to repeat the penetrating question recently asked by Mr. Otto H. Kahn in the course of an address before the American Bankers Association in Chicago. Said Mr. Kahn—"Now, you and I, who are trained in business, have all we can do to conduct our respective concerns and personal affairs with a fair measure of success. On whatgrounds, then, can it be assumed that by becoming endowed with the dignity of a governmental appointment, men of average or even much more than average ability will develop the capacity to run successfully the huge and complex business undertakings which the devotees of paternalism would place in their charge?"

Furthermore, the plant and its upkeep would be subject to political influence and objects. Just as we have needlessly expensive or even useless post office buildings, harbor improvements and other works of national cost built as the result of sectional log-rolling of Congressional politicians, so probably we would have railroad stations, tracks, subway crossings, and service in general offered not from the standpoint of efficiency and public service, but as indirect campaigncontributions to needy Congressional candidates for re-election.

It should be realized that the mistakes and delays in our shipping and airplane production during the first year of the war were probably not so much the fault of the government at Washington and the administration of affairs in these departments, as they were the inherent defects of the Government itself doing the work, and these effects were overcome only by the heroic efforts of Mr. Schwab, Mr. Ryan, and the other men whom President Wilson wisely chose to insure the success of these war measures as a patriotic necessity.

Our present postal service, the most necessary, next to the public schools, of all the means for the formation of community feeling and public opinionessential to a democracy, has been under the charge of deterioration and inadequate service for the past ten years. Also it must be remembered that the government-controlled systems of telegraph and telephone in the various European countries are unspeakably bad, according to the standards of service to which we have become accustomed through long years of efficient private management. Therefore, in the light of this experience the taking over of our systems by the government has its justification only as a war necessity. As a matter of permanent policy, it would be an entirely different and very serious matter. The marked deterioration that almost immediately appeared in the telegraph service, is sufficient proof of this fact.

FOOTNOTES:

[9]

Quoted from an editorial in the (daily) New YorkEvening Call, issue for August 29, 1918.

[10]

"The advantages which might be derived from a single united administration of all the railroads are doubtless somewhat analogous to those we derive from the post office, but in most other respects the analogy fails completely and fatally. Railway traffic cannot be managed by pure routine like that of the mails. It is fluctuating and uncertain, depending upon the seasons of the year, the demands of the locality, or events of an accidental character. Incessant watchfulness, alacrity, and freedom from official routine are required on the part of a traffic manager, who shall always be ready to meet the public wants." W.S. Jevons (reprinted inSelected Readings in Public Finance, by C.J. Bullock, p. 103).

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There is one term, the use of which is anathema to the Socialist, and that term is "human nature." He never wishes to meet or discuss this in an argument, and with good reason, for it has been shown that it is only by ignoring human nature entirely, both in theory and in practice, that Socialism can make even the semblance of a reasonable showing. But another term, which the Socialist especially likes, is "co-operation," and that is one to which he has no manner of right. Cooperation is a social movement, the impulse for which comes from within the human heart, while Socialism as alreadystated, is essentially a working together only as the result of outward direction and dictation. The first is the act of a free man; the latter results from the obedience of a political and mental slave.

We Americans have made one of the greatest successes of history along the line of political co-operation. Our whole democratic type of government is based upon this principle as a foundation. But we have done little toward the free and successful use of co-operation in business or production. It is here that our British cousins have far exceeded us even though we have outdistanced them, we think, along political lines of activity.

It was shown inThe Journal of Commerce and Commercial Bulletinfor January 25, 1918, that this co-operative movement in Great Britain has developed tosuch an extent that at the present time distributive societies there number some 3,500,000 members. The turnover of these societies last year amounted to $605,000,000, to which should be added $350,000,000 from the co-operative wholesale and the hundred distributive societies. As a contrast to this, the American people have been so filled with the individualism necessary to the spirit of the pioneers who in reality have been "subduing a continent" that they have failed to realize what a wonderful field for efficient, popular effort the commercial and industrial activities of the country offered if we only would adopt the principle of co-operative organization. Probably one of the greatest lines of development after the war will be this co-operation between producers and consumers. In no other way can thoseactivities and profits of the middlemen, which are more or less unnecessary, be entirely eliminated.

I have it on good authority from members of the American Federation of Labor that fully 95 per cent of its membership is opposed to Socialism, and that the Socialistic 5 per cent is largely among the laboring men of the Pacific Coast, with possibly a few in the Middle West, especially Kansas. This latter is probably an after effect of the old "Populistic" craze of the early 'nineties. On the other hand, American labor is feeling the need of cooperative action, not only as regards themselves, but also as regards capital as well, and Mr. Gompers has proved himself of the stature of real statesmanship in appreciating and advancing this idea in the most patriotic way sincethe war began. Individual laboring men with whom I have talked say they "like the working together" that Socialism advocates, but after explaining their position more fully, in nine cases out of ten it is found that they utterly repudiate the dictatorial, outwardly-directing theory upon which Socialism stands, and in reality desire the advance of this spirit of co-operation. Thus they look upon a bonus from profits as merely a partial gift on the part of corporate management. What they desire is profit-sharing, as standing for a recognition of the just right of labor to a larger part of the just proceeds of its work. Thus probably the greatest antidote and enemy of Socialism is profit-sharing, and after all it is only a recognition of the fact that production is the joint work of both capital and labor,that both are requisite and necessary, and that their whole success is based upon this spirit of co-operation.

There is no doubt that there are men to-day who are in official positions of power and influence in our national, state and city administrations throughout the United States and who are more or less openly using the present crisis of unusual and war conditions in order to precipitate the country into a complete Socialistic organization. It may be that we shall come to Socialism as a final political and economic development. Personally, I for one do not believe that we will, or that even a small part of the real thinking American people, either native or foreign born, would desire this. Even if we did enter upon such a policy it would only be temporary in duration, and be followed bya terrible struggle of readjustment to the old conditions. But if we do undertake Socialism, let us at least do it with our eyes open. Let us realize that we are entering upon an entirely new and untried policy which is diametrically opposed to all the ideas and ideals, the history, the fundamental thought and theory upon which this country was founded and has prospered and developed so marvellously up to the present time. Those officials, no matter where placed as regards power and responsibility, who by underhand means would throw us into this entirely new method of life without due thought and consideration, are politically dishonest, no matter how sincere they may be, and are as traitorous to American life and thought as are the pro-German or the pacifist.

The reaction against measures ofgovernment ownership and control which have been made necessary by the exigencies of a great war crisis already has appeared in Great Britain. The English papers contain open criticism of the government operation of the railways, of shipbuilding and of production in general. The LondonTimessaid editorially last year: "The railways are certainly short of labor, but is it established that all the officials are putting their very best efforts into the solution of the present problems? The railways are now Government controlled institutions and competition has diminished where it has not vanished. It seems to be a question whether quite the same amount of thought and work is being put into the efficient management of the companies as in the days before the war when the lines were keenly competingagainst each other. This question which has been raised of a slackening of effort directly in consequence of the nationalization of the railways is a serious one and evidently deserves inquiry.... The public is entitled to know if the railways are now using what remains to them (of labor and capital) with the utmost efficiency." Also the best authorities, and even the government investigators themselves, are urging a speedy return to private ownership and operation at the earliest possible moment after the war. The same undercurrent of feeling, or rather conviction, is rapidly spreading among our own people in the United States.

Mr. Hoover has expressed this same view in the most emphatic terms in the course of an address to the special conference of Federal Food Administratorsheld in Washington, D.C. on November 12, 1918. "It is my belief," said Mr. Hoover, "that the tendency of all such legislation except in war is to an over degree to strike at the roots of individual initiative. We have secured its execution during the war as to the willing co-operation of 95 per cent of the trades of the country, but under peace conditions it would degenerate into an harassing blue law."

But the advocates of Socialism are especially active during the time of uncertainty and confusion that necessarily follows the close of a great world war. At such times, they always are. In the words of Mr. Kahn,—"They possess the fervor of the prophet allied often to the plausibility and cunning of the demagogue. They have the enviable andpersuasive cocksureness which goes with lack of responsibility and of practical experience. They pour the vials of scorn and contempt upon those benighted ones who still tie their boat to the old moorings of the teachings of history and of common sense appraisal of human nature. And being vociferous and plausible they are unquestionably making converts."

Recently I saw little "stickers" pasted on the walls of a railway station in a small New Jersey city which read as follows—

The Masters Fear Slaves ThatThinkIf you think right you will act rightStudy Socialism

This is typical of the fallacious arguments so often encountered. First of all, it has the tone of darkest Hungary or Bolshevist Russia, and is absolutelycontrary to the facts as regards conditions in the United States. The so-called "toasters" or "capitalistic class;" for suppose it is to them that this refers, have been in the forefront of the movement to educate the masses, and have given their time, money and sympathy to aid in its success. I heartily agree with thenon sequiturstatement that "if you think right you will act right." I am perfectly willing to join in the demand that our people should "study Socialism," for if the American people will not only study it but also think their way through in regard to it, no sincere believer in democracy and in American ideals need have any doubt as to the final outcome.

We Americans believe that our people, in the long run, will decide right upon any question to which they have given duethought and consideration. So in their hands we may safely leave the whole question of Socialism and government ownership or operation. All we ask is, that they be given due knowledge and instruction. Furthermore, if Socialism be true, it should not fear open and complete examination. If the truth is the truth, it must prevail in the end. Therefore the surreptitious and secret attempt to foist Socialism upon an unsuspecting people savors much of the lack of sincerity and of belief in its real truth on the part of its own advocates. At least they should stop making their appeal mainly to the uninstructed foreign-born and to the apostles of half-baked learning, and lay their case before the hard-headed laborer, the business and the professional man.

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