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- From: Blythe Systems <nytransfer%igc.apc.org@MIZZOU1.missouri.edu>
- Subject: HIST:How Capitalists Rule, Pt.10
- Message-ID: <1992Aug16.022113.2863@mont.cs.missouri.edu>
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- Resent-From: "Rich Winkel" <MATHRICH@MIZZOU1.missouri.edu>
- Date: Sun, 16 Aug 1992 02:21:13 GMT
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-
- Via The NY Transfer News Service ^ All the News that Doesn't Fit
-
-
- The Republocrats: How Capitalists Rule/Part 10
-
-
- The Monopolists Take the Government
-
- By Vince Copeland
-
-
- The Rockefellers in government
-
- Shortly after the Civil War, the Rockefeller oil barons sewed up
- the Ohio legislature through bribery. They were just as effective
- as Chauncey Depew had been when he delivered the New York State
- legislature to the Vanderbilts and Morgans. These two states
- provided large blocks of Electoral College votes in the
- presidential election.
-
- A curtain was raised on Rockefeller machinations in 1872 when
- Standard Oil backed a well-known corrupt lobbyist running for
- Congress. Despite much exposure and protest, he was elected. But
- after this the political power of both the Rockefeller and Morgan
- groups became more national in accordance with their widening
- monopoly role.
-
- During the 1880s, "the fifteen directors of Standard of New Jersey
- held directorships in innumerable banks, insurance companies,
- traction [streetcar] companies, electric light and gas companies
- and industrial concerns of every sort." (John T. Flynn, "God's
- Gold," p. 348)
-
- Rockefeller people sat on the boards of railroads controlling
- 33,000 miles of track. And by 1884 James Stillman's National City
- Bank (now Citibank) acquired the principal deposits of the
- Rockefeller empire. Stillman, a partner of John D. Rockefeller's
- brother William, later became an important link to the Morgans.
-
- At about this time John D. moved his headquarters from Ohio to New
- York, joining the financial aristocracy at the very top.
-
- President Grover Cleveland was so thick with the biggest financial
- operators in the country that his personal secretary, David S.
- Lamont, proved to be an agent of several of them. He was made
- Secretary of War in Cleveland's second administration.
-
- The middle-class opposition
-
- All this did not go unnoticed or unopposed. The middle class--the
- small manufacturers, the many farmers, small retailers, shippers
- and other business people--were being hemmed in by the oil and
- railroad monopolies. They were charged sky-high rates that in
- effect forced them to subsidize the cheap rates and rebates given
- to the monopolists.
-
- This middle class was still politically powerful, even though it
- was not the ruling class. It included the coalition (among the
- whites) that had really led the anti-slavery struggle in the Civil
- War: the small industrialists and poor farmers.
-
- It began organizing itself against the monopolists as early as the
- 1870s. The biggest organization of this progressive middle class
- was probably the Anti-Monopoly League. At one point in 1881 no
- less than 800 merchants and small producers sent the following
- letter to the U.S. Senate protesting the ratification of Stanley
- Matthews, another railroad attorney, for Justice of the Supreme
- Court:
-
- "We are informed and believe that the great railroad corporations
- of this country are endeavoring to gain control of this court of
- last resort, which has heretofore been the most important bulwark
- in defending the public interest against the encroachment of
- corporations; that Mr. Matthews has been educated as a railroad
- attorney and views railroad questions from a railroad standpoint;
- that his actions while in the U.S. Senate prove this, and in this
- important respect render him unfit for a Justice of the Supreme
- Court." It was signed by Ambrose Snow, President, and Darwin P.
- James, Secretary of the Anti-Monopoly League. (Gustav Myer,
- "History of the Supreme Court," p. 558)
-
- There was much publicity about all this, but the millionaire
- Senate ratified the appointment anyway.
-
- Thus the middle class--the true middle class of small producers,
- many exploiting only themselves and their families--had had its
- day politically during the Civil War and Reconstruction. Now it
- was engaged in a rearguard fight that was to last until at least
- 1896 and have its impact on the two big parties in some peculiar
- ways.
-
- Two tendencies
-
- It is also important to emphasize that, while a virulent reaction
- against the progressivism of the Civil War had taken hold by then,
- there nevertheless was a counter tendency, represented by Mark
- Twain and a number of people around him, that continued in a
- progressive vein.
-
- Theodore Roosevelt was one of the leaders in the reactionary camp
- at this time (which indicates how sincere his later
- "Progressivism" was). He insisted that the Civil War had nothing
- to do with the anti-slavery fight and was only a matter of "saving
- the Union." This, it will be remembered, was the line of the New
- York bankers. Roosevelt had been born in the bosom of these
- bankers.
-
- But the other tendency was strong, too. For example, there was a
- period of revulsion against the vicious treatment of Native
- peoples. Helen Hunt Jackson's book, "A Century of Dishonor,"
- appeared in 1881 and caused quite a sensation. It was a polemic
- against the many broken treaties.
-
- Her novel "Romona," an eloquent plea for white understanding of
- the Indians' plight, went through more than 300 printings and has
- been dramatized several times for stage and screen.
-
- Young Theodore Roosevelt attacked Jackson for "sentimentalizing"
- the Native peoples, for "over-simplifying" the issue. He regarded
- the Indians as savages and had several clashes with them on "his"
- ranch, where he squatted on territory that was still partly
- considered Indian land. (He had tried professional ranching in his
- earlier years and wrote "The Winning of the West" in that period.)
-
- The ordinarily conservative Republican President Chester B. Arthur
- (1881-85) appointed Jackson director of the Bureau of Indian
- Affairs shortly after her book came out in 1881. This was long
- before any Native person was appointed and the ascendancy of
- Jackson was considered a triumph for real liberalism.
-
- The growth of the big cattle ranches, the multi-thousand-acre
- wheat farms and the discovery of gold in the Dakotas upset this
- equilibrium, however. The slaughter at Wounded Knee was the
- result.
-
- A Republican atheist
-
- Although it would be inconceivable today in these "enlightened"
- modern times, Col. Robert Ingersoll was quite prominent in the
- Republican Party in those days. Ingersoll was a popular atheist
- with a very large following. A matchless, if somewhat florid,
- orator, he was not bashful about supporting his friends in
- politics. He made great speeches in the presidential campaigns of
- Garfield and Hayes and delivered the main nominating speech for
- James G. Blaine at the Republican convention of 1876.
-
- Those "Victorian" times were full of such contradictions. It is
- not that people were accustomed to different ideas so much as that
- they were not persecuted for having them, nor were they barred
- from political life. But this was only true in the North and West.
- The South was becoming a wilderness of poverty and backwardness,
- ruled by local lynch law and national neglect.
-
- Blaine had been attacked by the Democrats as a corrupt lawmaker
- for the railroads. In eulogizing him, Ingersoll intoned that the
- good Republicans "do not demand that their candidate have a
- certificate of moral character signed by the Confederate
- Congress."
-
- He said that the people "call for a man who has torn from the
- throat of treason the tongue of slander--for the man who has
- snatched the mask of Democracy from the hideous face of
- rebellion.... Like an armed warrior, like a plumed knight, James
- G. Blaine marched down the halls of the American Congress and
- threw his shining lance full and fair against the defamers of his
- country and maligners of his honor.... In the name of those who
- perished in the skeleton clutch of famine at Andersonville...,
- whose sufferings he so vividly remembers, Illinois nominates for
- the next President of this country that prince of
- parliamentarians--that leader of leaders--James G. Blaine."
-
- Unfortunately, the "plumed knight" had engaged in too many
- unknightly bargains with the railroad corporations and others to
- quite make the nomination.
-
- Blaine, however, did get the Republican nomination in 1884, but we
- have seen that in that election the campaign funds were not so
- forthcoming from Wall Street, even though he had served them well.
- The Democrat Cleveland became the knight of that day.
-
- 1888: Republicans again
-
- Cleveland overreached himself, however. Correctly calculating,
- toward the end of his first term, that he had the majority of
- Congress (and possibly the people) with him, he moved to implement
- the old Democratic program of low tariffs. He should have known
- that this was forbidden territory.
-
- The result was that Wall Street shifted from him to the
- Republicans in 1888, supporting Benjamin Harrison, grandson of
- William Henry Harrison, the Whig president of 1840. Where the
- Democratic fund had exceeded the Republican in 1884, the Democrats
- gleaned only $855,000 in 1888, while the Republicans harvested
- $1,350,000.
-
- Ironically enough, Cleveland still received the majority of the
- popular vote in 1888, but failed to get a majority of the
- electoral vote. So he was defeated.
-
- The Businessmen's Cabinet
-
- Harrison's Cabinet was known as the "Businessmen's Cabinet." Of
- course, this implies that the previous Cabinets were something
- else. But everything is relative. The truth is that Harrison just
- took another step toward allowing the complete domination of big
- business over the administration in Washington.
-
- Even at that, he felt the pressure of the Republican Party machine
- and complained that "I could not name my own Cabinet. They [the
- `bosses'] had sold out every place to pay the election expenses."
- (Matthew Josephson, "The Politicos," p. 438)
-
- His vice president, Levi P. Morton, was the second biggest banker
- in the country after J.P. Morgan. This was duly noted in the
- agitation of the oppressed farming districts in the West and
- Midwest and among the growing working class movements.
-
- It is interesting that in our own more sophisticated age, a member
- of a notorious banking family, more powerful both relatively and
- absolutely than Morton, was vice president from 1974-76. This was
- Nelson Rockefeller. After the Watergate scandal, he was elected by
- the House of Representatives rather than by the people and foisted
- upon the government like a hound dog upon his meat. There wasn't a
- peep out of the modern electorate.
-
- Harrison's Secretary of War was Redfield Proctor, leader of the
- High Tariff League and president of Vermont Marble, Inc. Proctor
- was not of the first rank of tycoons, but served them faithfully
- in his position, which gave him the power to assign big military
- orders even though it was peacetime.
-
- John Wanamaker, the most famous retailer of the time, was given
- the job of Postmaster General, which always included the most lush
- fields for patronage. He went at it with a will and seemed to have
- enjoyed wielding the axe on the Democratic office-holders and
- hiring the Republican faithful.
-
- Gilding the Supreme Court
-
- Harrison's appointments to the Supreme Court were models of
- capitalist achievement: big railroad and banking attorneys with
- the closest connections to the wealthiest families in the country.
-
- In 1893 Harrison named Howell E. Jackson to the Court. Jackson
- had earlier represented big railroads before the Court. He settled
- in Tennessee during Reconstruction and opened the law firm of
- Estes, Jackson and Elliott. This firm represented big banks and
- other corporations. Jackson himself became the second-richest
- person in Tennessee--after his brother.
-
- As Supreme Court Justice, his decisions were uniformly favorable
- to the corporations.
-
- His chief sponsor in the U.S. Senate was Thomas C. Platt, a
- Morgan-anointed Republican "boss" of New York State and president
- of the Tennessee Coal and Iron Co. (later taken over completely by
- the Morgan-sponsored US Steel Co.). Jackson had sat in judgment on
- this company during his period on the circuit court. His decisions
- had been favorable to Platt's firm.
-
- -30-
-
- (Copyright Workers World Service: Permission to reprint granted if
- source is cited. For more info contact Workers World,46 W. 21 St.,
- New York, NY 10010; "workers@igc.apc.org".)
-
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