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mation and Mr. Mellen - well, was not prices; if its stock has been watered by popular. Nor did most of Mr. Mellen's these purchases; if its power to maintain unpopularity come from the fact that and improve its track and equipment has under his administration the value of the been impaired by these acquisitions; if its stock declined from 225 to 100, or that he service to the public has been lessened, or tried to monopolize the transportation its ability to earn for its stockholders, by agencies of New England. It is true, a the campaign of monopoly — if these stockholders' committee finally became things have been done, the responsibility active, and the Government has a suit for their doing lies with the directorate against the railroad for an alleged viola- of the road. Mr. Mellen may be the tion of the Sherman Law. But the fund- scapegoat but his was the lesser responamental reason for the change in the sibility. New Haven's management was that Mr. It is a good augury, therefore, that there Mellen had consistently shown himself is a change, both in the presidency of the entirely out of sympathy with the public road and in the board of directors. Mr. that he served. He did not realize that a Elliott's career shows that he underrailroad president does serve the public as stands what a modern railroad's duty is, well as his board of directors. He stig- and he has often shown a courage and matized New Englanders who asked for independence in trying situations which better service as “agitators, demagogues, indicate that he is not susceptible to inand politicians." Certain individuals
who Certain individuals
who fluences that make for bad management. . opposed the merger of the Boston & Maine with the New Haven he assailed as “black- FOR A SOLUTION OF THE WATERmailers." He described the Interstate
POWER PROBLEM Commerce Commission as "a blunder!” The Hepburn Bill which gave it power he T TOOK more than twenty years of labelled "a most pernicious piece of legis- bitter struggle to establish the public's lation.” Several years ago the Connecti- interest in railroad management and cut National Grange asked Mr. Mellen to to make effective the public control of address its meeting. He was tactless railroad rates and service. A little more enough to make a speech so full of violence than six years ago, when the conservation against those whom he termed “agitators policy was announced, we first became and demagogues” that at its conclusion, aware of our water-power problem. There the audience in a formal note repudiated are hopeful indications that we are now the sentiments. He did not trust the pub- in a fair way to settle its main difficulties lic and the public did not trust him. Up to the time of President Roosevelt's There was little "good-will” — for the veto of the James River Dam Act it had New Haven - under these conditions, been the custom of the Government and and Mr. Mellen's good points as a rail- of the states to give to development comroad administrator are dimmed by his panies free and in perpetuity the right to lack of the all-important friendly attitude develop water-power. Everyone recogtoward the public. For his inability to
For his inability to nized the great value of having the strength deal with the public in an enlightened of the rivers turned into electric current, way Mr. Mellen is, of course, responsible. and to give away the privilege was the
On the other hand, for the policy of easiest way of accomplishing that end. monopoly the directors of the New Haven The few companies that had the capital are more accountable than Mr. Mellen. and foresight to develop the water-power It is commonly said that he did not favor of the country were getting franchise all the trolley purchases that were made. that would leave the public without But whether he did or not he could not redress if the companies should, in the have carried on the orgy of buying without future, charge exorbitant rates or give the sanction of the road's directors. If unbearable service. the road is burdened with a lot of poor- The water-power companies naturally paying trolley lines, bought at inflated wished to keep on with the unlimited unrestricted franchises. The believers
believers One of the largest hydro-electric companies, in conservation protested. In the last for example, was willing to accept the Conregular session of Congress there was an necticut River Dam bill with its regulaattack all along the conservationists' line tions and restrictions. of defence. The Raker Bill was intro- It has taken seven years for the waterduced to establish a precedent under power companies on one side and the which water-power companies would be believers in conservation on the other to able to use lands in the National Forests come this near to agreement. If the contrary to the regulations of the Forest controversy has delayed some developService. This bill was killed in Congress. ment it has nevertheless been worth while,
Next came the Omnibus Dam Bill to for it has saved many valuable sites from grant sixteen water-power sites, without being incontinently grabbed and it has any provision for compensation to the brought us to a point from which the whole Government or for rate regulation.
hydro-electric business can go on upon a This second attempt failed. Then one proper basis. If the power companies of the sixteen projects - a site on the can learn from the history of the railroads Coosa River in Alabama was put into they will aid in the passage of a fair a separate bill. This went through Con- amendment to the General Dam Act, gress but was vetoed by President Taft. and they will avoid deserving the public
In retaliation the believers in unre- hostility that has at various times so handistricted franchises killed the Connecticut capped the railroad business. River Dam bill in the Senate, for its provisions for compensation and regulation WHERE THERE ARE NO were such that if it became a precedent
STATES' RIGHTS the old days of free and easy franchises would be over.
HERE is a small but noisy party As far as the record goes that is where
in the West with representatives the matter stood when the new Adminis
in Congress which maintains that tration came into power.
the National Government should divide During the last six months, however, the National Forests and the public the Secretary of the Interior and the domain and give to each state the land Secretary of Agriculture have agreed upon that lies within its borders. This scheme a policy that will cover the National is backed in the main by men who believe Forests and all other public lands. They in exploitation more than development have leased three power sites under their and who believe that the opportunities plan. The leases are indefinite in time for successful exploitation would be greater but revocable if the power companies fail than they are now if the lands were under to live up to their contract. For the first state control. ten years there is no rental and after that Their two most effective arguments are the rental varies directly with the rates that the Forest Service regulations retard which the company charges the public development and that the National adso that there is an incentive to keep the ministration of the forests and the public rates down. The terms of these franchises domain is an invasion of states' rights. are liberal enough to encourage capital They have never been able to prove their to enter the water-power field and yet case against the Forest Service, but, if it they protect the public and maintain the were proven, of course the obvious thing principle of government control.
to do would be to change the regulations To get power sites on navigable streams or even the administration of the Forest. it is necessary to get an Act of Congress. With the states' rights doctrine these In this field, too, it looks as if some enemies of conservation hope to make more equitable act might be passed which would
progress now that the Government is in do what the department leases do. The the hands of the Democratic party. more enlightened water-power companies In this hope, however, they forget are beginning to accept the inevitable. that the states' rights doctrine has never
applied to the public lands. In accord- Now they serve a fifth of the population ance with a recommendation of the Con- of Great Britain as members. tinental Congress before our present form The coöperative idea is now taking of Government was established the differ- root in this country faster than is usually ent states ceded to the central Govern- realized. Most people have known that ment their unappropriated lands. With coöperation had gained a foothold in the exception of this land, the territory Minnesota and Wisconsin. They had of the original colonies, and the state of heard of coöperative and semi-coöperative Texas, which was an independent Govern- creameries, stores, cheese factories, and ment, all the territory of the United States grain elevators.
grain elevators. There is even a coöperawas bought and paid for by the National tive bank and a coöperative laundry. Government. And since the very be- The eminently successful organizations of ginning not a single state has been given the California orange growers and the the control of the public domain within apple men of the Northwest are known all its borders upon admission to the Union over the country, but people often forget or afterward, except Tennessee. In this that they are essentially coöperative case there was so little public land within agencies. There are many small retail the state borders that it was not worth stores run on the coöperative plan in New while for the National Government to England. New York State recently continue to administer it. The Federal amended its business corporation law to Government has donated some land to provide for the organization of coöperaalmost every state but it has always kept ting enterprises. The law limits the stock the main part of the unappropriated lands which any one member may hold to $5,000, (in the language of the resolve of October and it also limits every stockholder to one 10, 1780) to " be disposed of for the com- vote, whether he holds $5,000 worth of mon benefit of the United States.” More- stock or only $5 worth. There are at over, the enabling act and the constitu- least two strong coöperative marketing tions under which the states were admitted associations in the South, and only expressly stated the right of the Federal recently the workers in a South Carolina Government to control the public domain. cotton mill subscribed $10,000 and took
The several states have never had any over the company store. rights to the public lands and the effort Coöperation, when successful, saves to use the ancient and honorable doctrine money. This saving is the basis of the of states' rights to bolster up attempts propaganda on which coöperation is spread. to exploit the public domain is no more But it has other advantages as important tenable than it is meritorious.
if not as obvious. It teaches people to The country has made up its mind about
progress together, it promotes wholesome conservation — the right utilization of our social intercourse, and it tends to keep resources. It believes in it. It is anxious in the hands of the many some of the to put its beliefs fully into practice. There agencies of distribution. will be little toleration for those who delay this great task in order to benefit their
AN EXPERIMENT IN DEMOCRACY private schemes of exploitation.
NE of the most interesting, and AN UNDERCURRENT OF COÖPERA
also one of the most important, TION
experiments in democracy that
is going on in the United States is in VERY once in a while a country the cotton mill towns of the South. wakes up to find itself revolu- The average cotton mill owner, when he
tionized in some particular. In builds his mill, builds also the houses for England, for example, the little retail his help, the school house, the church, and coöperative stores had rooted themselves the store. All this is an expense that permanently in the habits of the poorer many of them would avoid if it were people before they even had a legal status. possible, but usually it is not. They
put good machinery in their mills — and efforts is of tremendous importance, not then look for labor. They get people only to the South, but to the rest of the from the surrounding country, from other nation as well. mills, from the mountains. They begin to train the force in habits of industry. TAXICABS AND CHRISTIANITY IN In some of the mills there are bad con
PEKING ditions and child labor, etc. But let us take the best of them, mills which are run OMETHING of the change that by resident owners who know their help has come over China, going to the and have a keen interest in its welfare.
foundations of national thought Many of these owners have more zeal and racial custom, may be seen in this than discretion in their welfare work. paragraph from a letter written by Mr. They often provide facilities for better Sherwood Eddy, a Christian missionary living that their employees are not ad- who last spring made an evangelistic vanced enough to use and appreciate. tour of the country with the cordial coBut in spite of all difficulties there are operation of the Republican Government, many model villages, in which the laborers
even addressing the 1,600 cadets of the live and work under good conditions. Military Academy, the West Point of Yet even in most of these model villages China, who were drawn up at attention the mill hands lack the responsibilities of at ten o'clock at night in the bitter cold democracy. They live under a benevo- especially to hear him. lent despotism. They get their wage from the mill company, pay back part of it to
It was a novel experience in ancient Peking,
where Sir Robert Hart remembers seeing men the company for rent, and most of the
drowned in the deep pools of mud and water rest passes through the hands of the com
in the main streets, to speed from college to pany store keeper. They send their college in a taxi, though we had to turn out for children to a company school, and they
an occasional camel train or a slow moving themselves attend a church built and often
country cart. The battered walls of Peking supported by the company.
reminded us of the siege in Boxer days, a short Some of the mill owners believe in a decade ago, but recently the Young Men's benevolent despotism. Others practise Christian Association held a prayer meeting of it, thinking that their workers are living its Bible Class leaders on the high altar in the in a democracy. Only a few see that to Temple of Heaven itself, where the Emperors make a real race of manufacturers the of China offered their yearly sacrifice. working people will have to be led out of
The especial pertinence of this quotation the despotism to a condition in which they may be gathered from its significance when can think and act for themselves. There
read in connection with Mr. Cleveland's will not be a real democracy among the
article on "American Automobiles workers in the mills until they are rid of the Abroad,” elsewhere in this magazine. company school, the company store, the Americans who stay at home have little company houses - no matter how benevolently these agencies are conducted. The conception of the widespread influence of
our country upon a swiftly changing world, people upon whom the future of Southern industry depends should begin to stand
THE PANAMA EXPOSITION upon their own feet and practise democracy. It is time that they began to NGLAND and Germany have notiown their own homes, to send their chil- fied the United States that they dren (as a right and not as a favor) to the will not participate in the Panama public schools, perhaps to belong to a Exposition at San Francisco. If this coöperative store.
decision is final, it makes little difference There are a few mills which are helping whether the refusal is because of the their employees to take up the responsi- difficulties of getting a good exhibit to bilities that every American should as- San Francisco, or because British trade sume, and the success or failure of these interests are disturbed at our treatment
of Huerta or because the Germans fear fications of first class matter, which is our imitation of their goods. The refusal general merchandise; and of second a of these two countries changes the scope matter, chiefly articles of food and dra of the exhibition. It can not show what Besides these changes the order presche the canal means to the commerce of the a new form of express receipts and see world, nor what the canal means to the other changes for the protection a American continents, for Germany and convenience of the public. England are the two greatest trading The new rates for packages of 100 POULE nations in the world.
or more are about the same as the nt But without them the Fair at San now in force for short distances and love Francisco can be a complete exposition for long distances. On packages of in of the wonderful possibilities of bringing pounds or less practically all rates in the American continents commercially been reduced. On light packages go closer together by physically cutting them more than 200 miles and less than 30 apart. The Governments of the two miles, many of the rates are even loweriz American continents are well represented the newly announced parcel post chars Perhaps there will also be illuminating Between the parcel post and the ears exhibitions from the Far East. With companies under the direction of the all these the Fair will have as definite Interstate Commerce Commission we ska a plan if not as comprehensive a one as have service far cheaper and better tha was the original outline.
we even hoped for five years ago. 4x Nevertheless the withdrawal of Germany the best of it is that the Post Office De and England is embarrassing. The Fair partment seems disposed to continue 6 management will have to make extra improvements and even the express or efforts to fill the space that they would panies are reported to have some enligt have taken. San Francisco with charac- ened plans for cheap and efficient trans teristic aggressiveness succeeded in getting portation of food stuffs from the countr the Fair in spite of the desires of places to the city. located much more conveniently for the great mass of American fair-goers and THE TARIFF REDUCING WOOLEVI exhibitors. Now it must show that same
PRICES aggressive spirit in getting ready an exposition so interesting that, in spite of the long
7 HILE the tariff bill was st distances, the people of the great interior
under discussion the America and the people of the East will have to
Woolen Company announce attend. And this is more than a problem its prices for the spring of 1914. The for San Francisco. The Panama Ex- showed an average decrease of from position is an opportunity for the United to 121 per cent. from the prices of 1919 States to increase its acquaintance with This is one of the first visible effects of the its neighbors, the Latin American Re- reform of our tariff laws. The actua publics, and the peoples across the Pacific. reductions were from 5 to 21 cents a vard As such the Fair is a national, not a Other American manufacturers have made San Francisco, project.
similar reductions. More striking, how
ever, was the trade programme of the NEW EXPRESS RATES American agents of mills in Bradford.
England. They made public two ditT HE Interstate Commerce Com- erent sets of prices, one for importation
mission has ordered a drastic under the Payne Act, and the other unde” I change in the express business to the new Underwood-Simmons tariff. The take effect on October 15th. It imposes second schedule of prices was from # upon the companies a new system of mak- to 50 cents a yard cheaper than the first. ing rates. It orders a considerable re- Such announcements, however, are likely duction in all interstate rates. It requires to raise false hopes of very much cheape all the companies to adopt uniform classic clothing. The day that these reduces