The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-07-08
AMERICAN M-ILLloNAIREs.
The Public Part I'm Making, the Public Duty
IN Controlling Them.

The Public Part I'm Making, h Public Duty
IN Controlling Them.
To n EDrroa or TEE SuN-Sir: There
are some features Of modern fortunes,
and peculiarly Of American fortunes. That
d~ifferentiate them from their predeces-
sors. They are the result OF Individual
e~ndeavor: with few notable exceptions,
they are not inherited. The endeayor
which produced them has been exerted
along the economic plane; formally. at
least, they have been acquired in CONNER
cial or financial pursuits.
Respect for property Is peculiarly strong
among Anglo-Saxons. II was Undecided In
the law Of England, and whom the students
of that law organized our governments
they maximized beyond all precedent
this reverence for vested interests. In
breaking away from aristocratic Britain
rank and title were necessarily left behind.
Grass property constituted the sole re-
manning possession, and to magnify that
possession the country gentlemen Of the
South and the Tories Of the North united
their efforts. For the first time In history
property was protected by the organic law.
Slaves and contracts were the subjects OF
Its solicitude. This constitutional idea has
been progressive. our great Chief Justice
declared It's application TO legislative char
ters. After the civil war we awaited Of the
Fourteenth Amendment to surround prop
erty with the same legal protection tina we
accorded to life and liberty. As the Fed
eral Government possesses only the powers
specified, inc property 10 circled around
by these defenoes against State action, we
have no existing legal authority over vested
interests which corresponds to the powers
possessed by the Parliament Of Great
Britain and Ireland. Therefore, the organ
ism Of our Government must be subjected
TO radical change before any power can be
called into existence competent to AFFECT
actual property conditions, thus preclud-
ing hasty or III considered action.
When these conservative safeguards were
thrown around property the wealth Of the
country consisted principally Of individual
holdings, agricultural and maritime. The
public, in It's corporate forms. the States
and the nation, was poor ~indeed-repre-
sented by the poorest civilized Govern
ments then In existence. With the exoep-
ton Of the Wild lands in the Northwest
territory there was barely an available
asset belonging to the people. But the
first half Of the nineteenth century had not
long elapsed when the States Of the Union,
in their corporate capacities, ranked among
the wealthiest Of commonwealth. BY the
growth Of population, by the application Of
steam and by the development Of industry
the Legislatures Of the Union became en-
dowed with franchises and estates-"the
~potentiality Of wealth beyond the dreams
Of avarice."
This domain OF the American people has
been practically wasted. This nation.
which provided 90 carefully for the protec-
ton of private estates, has m~ismanaged ite
own property. The value Of It's public
franchises is the result Of the collective
labors Of all citizens, but they now form the
fabric of many millionaire fortunes. Our
country should, in a public sense, have been
the richest and also the least taxed among
nations; it Is neither. This depletion OF the
common resources presents q subject OF
legitimate inquiry. In respect to fortunes
acquired by the free and fair exercise OF
individualism the public has no concern.
But whenever any direct assistance Is OBJ
tanned from the State the right Of govern
mental Intervention acorues. II business
men cannot conduct a business enterprise
without the seal Of the commonwealth they
pass from their domain Of private right to
the field of public dominance.
The history Of this public and private
consortship demonstrates that the Ameri-
can people, acting through their agents
at their capitals, have created their own
%millionaires. The donees Of these public
interests are cast In corporate form, and
the relation between these corporations and
their State creator assumes varying degrees
OF intimacy. In some instances they con-
sist of q simple grant Of the franchise TO be
a CORPORATION, with It's attendant advan-
tages Of limited liability, perpetual exis-
tence and unified stability. In this category
are included all classes Of business COM
panies: such as manufacturing, mining and
especially financial corporations.
It is, however, through a much closer
and more beneficial association with the
public that the largest crop Of millionaires
has been produced. The powers and gifts
conferred upon railroad corporations fur
nish a fruitful cause Of the prevailing dis
satiafaction with the extremely unequal
distribution OF wealth. Through the power
Of eminent domain q distinct invasion OF
private right was sanctioned. on the ground
that these transportation companies were
public benefits. State and county aid
was extended upon the sam theory. The
electorate was greedily anxious for the
adoption and development Of this new
system Of locomotion. Its profit making
capacities were not generally perceived;
indeed, they were regarded as doubtful.
The rails and the slow moving trains con-
stituted such an improvement over the
turnpike that the public convenience was
deemed the main factor for consideration
These were the conditions affecting the
compact between the Legislatures and the
railroad interpretations. When a quasi
partnership is organized under these cir
cumstanoes 1t Is not surprising that the
oorporators should get the better end Of the
bargain. Private capital and enterprises
were invoked by the public and its repre-
sentatives in a spirit Of largess. The COM
parison of turnpike charters with carly
railroad enaotments shows that fewer pre-
cautions in favor Of the community were
adopted in the latter case. In some in
stances a little guile may have been involved,
hut nrooticallv there wa mere compliance