[60] Standard Oil and Rockefeller-see upcoming footnote: "Rockefeller began as a member…"
[61] Even as late as 1907, it was considered that eleven groups dominated the country, but this number was reduced by the amalgamation of the five railroad groups into a supreme combination of all the railroads. These five groups so amalgamated, along with their financial and political allies, were (1) James J. Hill with his control of the Northwest; (2) the Pennsylvania railway group, Schiff financial manager, with big banking firms of Philadelphia and New York; (3) Harriman, with Frick for counsel and Odell as political lieutenant, controlling the central continental, Southwestern and Southern Pacific Coast lines of transportation; (4) the Gould family railway interests; and (5) Moore, Reid, and Leeds, known as the "Rock Island crowd." These strong oligarchs arose out of the conflict of competition and travelled the inevitable road toward combination.
[62] Lobby-a peculiar institution for bribing, bulldozing, and corrupting the legislators who were supposed to represent the people's interests.
[63] A decade before this speech of Everhard's, the New York Board of Trade issued a report from which the following is quoted: "The railroads control absolutely the legislatures of a majority of the states of the Union; they make and unmake United States Senators, congressmen, and governors, and are practically dictators of the governmental policy of the United States."
[64] Rockefeller began as a member of the proletariat, and through thrift and cunning succeeded in developing the first perfect trust, namely that known as Standard Oil. We cannot forbear giving the following remarkable page from the history of the times, to show how the need for reinvestment of the Standard Oil surplus crushed out small capitalists and hastened the breakdown of the capitalist system. David Graham Phillips was a radical writer of the period, and the quotation, by him, is taken from a copy of the Saturday Evening Post, dated October 4, 1902 A.D. This is the only copy of this publication that has come down to us, and yet, from its appearance and content, we cannot but conclude that it was one of the popular periodicals with a large circulation. The quotation here follows:
"About ten years ago Rockefeller's income was given as thirty millions by an excellent authority. He had reached the limit of profitable investment of profits in the oil industry. Here, then, were these enormous sums in cash pouring in-more than $2,000,000 a month for John Davison Rockefeller alone. The problem of reinvestment became more serious. It became a nightmare. The oil income was swelling, swelling, and the number of sound investments limited, even more limited than it is now. It was through no special eagerness for more gains that the Rockefellers began to branch out from oil into other things. They were forced, swept on by this inrolling tide of wealth which their monopoly magnet irresistibly attracted. They developed a staff of investment seekers and investigators. It is said that the chief of this staff has a salary of $125,000 a year.
"The first conspicuous excursion and incursion of the Rockefellers was into the railway field. By 1895 they controlled one-fifth of the railway mileage of the country. What do they own or, through dominant ownership, control to-day? They are powerful in all the great railways of New York, north, east, and west, except one, where their share is only a few millions. They are in most of the great railways radiating from Chicago. They dominate in several of the systems that extend to the Pacific. It is their votes that make Mr. Morgan so potent, though, it may be added, they need his brains more than he needs their votes- at present, and the combination of the two constitutes in large measure the 'community of interest.'
"But railways could not alone absorb rapidly enough those mighty floods of gold. Presently John D. Rockefeller's $2,500,000 a month had increased to four, to five, to six millions a month, to $75,000,000 a year. Illuminating oil was becoming all profit. The reinvestments of income were adding their mite of many annual millions.
"The Rockefellers went into gas and electricity when those industries had developed to the safe investment stage. And now a large part of the American people must begin to enrich the Rockefellers as soon as the sun goes down, no matter what form of illuminant they use. They went into farm mortgages. It is said that when prosperity a few years ago enabled the farmers to rid themselves of their mortgages, John D. Rockefeller was moved almost to tears; eight millions which he had thought taken care of for years to come at a good interest were suddenly dumped upon his doorstep and there set up a-squawking for a new home. This unexpected addition to his worriments in finding places for the progeny of his petroleum and their progeny and their progeny's progeny was too much for the equanimity of a man without a digestion…
"The Rockefellers went into mines-iron and coal and copper and lead; into other industrial companies; into street railways, into national, state, and municipal bonds; into steamships and steamboats and telegraphy; into real estate, into skyscrapers and residences and hotels and business blocks; into life insurance, into banking. There was soon literally no field of industry where their millions were not at work…
"The Rockefeller bank-the National City Bank-is by itself far and away the biggest bank in the United States. It is exceeded in the world only by the Bank of England and the Bank of France. The deposits average more than one hundred millions a day; and it dominates the call loan market on Wall Street and the stock market. But it is not alone; it is the head of the Rockefeller chain of banks, which includes fourteen banks and trust companies in New York City, and banks of great strength and influence in every large money center in the country.
"John D. Rockefeller owns Standard Oil stock worth between four and five hundred millions at the market quotations. He has a hundred millions in the steel trust, almost as much in a single western railway system, half as much in a second, and so on and on and on until the mind wearies of the cataloguing. His income last year was about $100,000,000- it is doubtful if the incomes of all the Rothschilds together make a greater sum. And it is going up by leaps and bounds."
[65] The Black Hundreds were reactionary mobs organized by the perishing Autocracy in the Russian Revolution. These reactionary groups attacked the revolutionary groups, and also, at needed moments, rioted and destroyed property so as to afford the Autocracy the pretext of calling out the Cossacks.
[66] Under the capitalist regime these periods of hard times were as inevitable as they were absurd. Prosperity always brought calamity. This, of course, was due to the excess of unconsumed profits that was piled up.
[67] Strike-breakers-these were, in purpose and practice and everything except name, the private soldiers of the capitalists. They were thoroughly organized and well armed, and they were held in readiness to be hurled in special trains to any part of the country where labor went on strike or was locked out by the employers. Only those curious times could have given rise to the amazing spectacle of one, Farley, a notorious commander of strike-breakers, who, in 1906, swept across the United States in special trains from New York to San Francisco with an army of twenty-five hundred men, fully armed and equipped, to break a strike of the San Francisco street-car men. Such an act was in direct violation of the laws of the land. The fact that this act, and thousands of similar acts, went unpunished, goes to show how completely the judiciary was the creature of the Plutocracy.